Document:

ex101amendedrestatedcred

   CHI 64213081v14                   AMENDED AND RESTATED   CREDIT AGREEMENT   dated as of   December 11, 2013   among   SCHWEITZER-MAUDUIT INTERNATIONAL, INC.,   and   SWM LUXEMBOURG,   as Borrowers   THE LENDERS PARTY HERETO,   JPMORGAN CHASE BANK, N.A.,   as Administrative Agent,      J.P. MORGAN SECURITIES LLC,   FIFTH THIRD BANK,   MERRILL LYNCH PIERCE FENNER & SMITH, INC.,   and   SUNTRUST ROBINSON HUMPHREY, INC.,   as Joint Lead Arrangers and Joint Bookrunners,   and   FIFTH THIRD BANK,   MERRILL LYNCH PIERCE FENNER & SMITH, INC.   and   SUNTRUST ROBINSON HUMPHREY, INC.,   as Co-Syndication Agents        

 

   i   CHI 64213081v14   TABLE OF CONTENTS   Page      ARTICLE I DEFINITIONS ........................................................................................................... 2    SECTION 1.01.  Defined Terms ........................................................................................ 2    SECTION 1.02.  Classification of Loans and Borrowings ............................................... 27    SECTION 1.03.  Terms Generally ................................................................................... 27    SECTION 1.04.  Accounting Terms; GAAP .................................................................... 28    SECTION 1.05.  Currency Equivalents ............................................................................ 28    ARTICLE II THE CREDITS ........................................................................................................ 28    SECTION 2.01.  Commitments ........................................................................................ 28    SECTION 2.02.  Loans and Borrowings .......................................................................... 29    SECTION 2.03.  Requests for Borrowings ...................................................................... 30    SECTION 2.04.  [Intentionally Omitted] ......................................................................... 31    SECTION 2.05.  Swingline Loans ................................................................................... 31    SECTION 2.06.  Letters of Credit .................................................................................... 32    SECTION 2.07.  Funding of Borrowings ......................................................................... 37    SECTION 2.08.  Interest Elections ................................................................................... 37    SECTION 2.09.  Termination, Reduction and Increase of Commitments; Removal   of Borrowers ......................................................................................... 39    SECTION 2.10.  Repayment and Amortization of Loans; Evidence of Debt. ................. 41    SECTION 2.11.  Prepayment of Loans ............................................................................ 42    SECTION 2.12.  Fees ....................................................................................................... 43    SECTION 2.13.  Interest .................................................................................................. 44    SECTION 2.14.  Alternate Rate of Interest ...................................................................... 45    SECTION 2.15.  Increased Costs; Illegality ..................................................................... 46    SECTION 2.16.  Break Funding Payments ...................................................................... 47    SECTION 2.17.  Taxes ..................................................................................................... 48    SECTION 2.18.  Payments Generally; Pro Rata Treatment; Sharing of Setoffs ............. 51    SECTION 2.19.  Mitigation Obligations; Replacement of Lenders ................................. 55    SECTION 2.20.  Defaulting Lenders ............................................................................... 56    ARTICLE III REPRESENTATIONS AND WARRANTIES ...................................................... 58    SECTION 3.01.  Organization; Powers ............................................................................ 58    SECTION 3.02.  Authorization; Enforceability ............................................................... 58    SECTION 3.03.  Governmental Approvals; No Conflicts ............................................... 58    SECTION 3.04.  Financial Condition; No Material Adverse Change ............................. 58    SECTION 3.05.  Properties .............................................................................................. 59    SECTION 3.06.  Litigation and Environmental Matters .................................................. 59    SECTION 3.07.  Compliance with Laws and Agreements .............................................. 59    SECTION 3.08.  Investment Company Status ................................................................. 60     

 

   ii   CHI 64213081v14   SECTION 3.09.  Taxes ..................................................................................................... 60    SECTION 3.10.  ERISA ................................................................................................... 60    SECTION 3.11.  Disclosure ............................................................................................. 60    SECTION 3.12.  Subsidiaries ........................................................................................... 61    SECTION 3.13.  Material Agreements ............................................................................. 61    SECTION 3.14.  Labor Relations ..................................................................................... 61    SECTION 3.15.  Solvency ................................................................................................ 61    SECTION 3.16.  Insurance ............................................................................................... 61    SECTION 3.17.  Regulation U ......................................................................................... 61    SECTION 3.18.  Common Enterprise. ............................................................................. 61    SECTION 3.19.  Foreign Borrower .................................................................................. 62    SECTION 3.20.  Compliance with Domiciliation Law .................................................... 62    SECTION 3.21.  COMI .................................................................................................... 62    ARTICLE IV CONDITIONS ....................................................................................................... 62    SECTION 4.01.  Effective Date ....................................................................................... 62    SECTION 4.02.  Each Credit Event ................................................................................. 64    SECTION 4.03.  Delstar Acquisition Effective Date ....................................................... 65    ARTICLE V AFFIRMATIVE COVENANTS ............................................................................. 66    SECTION 5.01.  Financial Statements and Other Information ........................................ 66    SECTION 5.02.  Notices of Material Events ................................................................... 67    SECTION 5.03.  Existence; Conduct of Business ............................................................ 68    SECTION 5.04.  Payment of Obligations ........................................................................ 68    SECTION 5.05.  Maintenance of Properties; Insurance ................................................... 68    SECTION 5.06.  Books and Records; Inspection Rights ................................................. 68    SECTION 5.07.  Compliance with Laws ......................................................................... 68    SECTION 5.08.  Use of Proceeds .................................................................................... 69    SECTION 5.09.  Further Assurances; Additional Borrowers .......................................... 69    SECTION 5.10.  OFAC .................................................................................................... 70    SECTION 5.11.  Status of Obligations ............................................................................. 70    SECTION 5.12.  Post-Closing Obligations. ..................................................................... 71    SECTION 5.13.  Centre of Main Interest ......................................................................... 71    ARTICLE VI NEGATIVE COVENANTS .................................................................................. 71    SECTION 6.01.  Indebtedness .......................................................................................... 71    SECTION 6.02.  Liens ...................................................................................................... 71    SECTION 6.03.  Fundamental Changes; Asset Sales ...................................................... 73    SECTION 6.04.  Investments, Loans, Advances, Guarantees and Acquisitions .............. 74    SECTION 6.05.  Swap Agreements ................................................................................. 76    SECTION 6.06.  Restricted Payments; Stock Purchases. ................................................ 76    SECTION 6.07.  Transactions with Affiliates .................................................................. 76    SECTION 6.08.  Restrictive Agreements ......................................................................... 77    SECTION 6.09.  Amendment of Material Documents ..................................................... 78     

 

   iii   CHI 64213081v14   SECTION 6.10.  Financial Covenants. ............................................................................. 78    SECTION 6.11.  Fiscal Year ............................................................................................ 78    SECTION 6.12.  Excluded Subsidiaries ........................................................................... 78    ARTICLE VII EVENTS OF DEFAULT ..................................................................................... 78    ARTICLE VIII THE ADMINISTRATIVE AGENT ................................................................... 81    ARTICLE IX MISCELLANEOUS .............................................................................................. 85    SECTION 9.01.  Notices .................................................................................................. 85    SECTION 9.02.  Waivers; Amendments .......................................................................... 86    SECTION 9.03.  Expenses; Indemnity; Damage Waiver ................................................. 88    SECTION 9.04.  Successors and Assigns ........................................................................ 89    SECTION 9.05.  Survival ................................................................................................. 93    SECTION 9.06.  Counterparts; Integration; Effectiveness .............................................. 93    SECTION 9.07.  Severability ........................................................................................... 93    SECTION 9.08.  Right of Setoff ...................................................................................... 94    SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process ............... 94    SECTION 9.10.  WAIVER OF JURY TRIAL ................................................................. 95    SECTION 9.11.  Headings ............................................................................................... 95    SECTION 9.12.  Confidentiality ...................................................................................... 95    SECTION 9.13.  Interest Rate Limitation ........................................................................ 96    SECTION 9.14.  USA PATRIOT Act .............................................................................. 96    SECTION 9.15.  Judgment Currency ............................................................................... 97    SECTION 9.16.  Acknowledgements ............................................................................... 97    ARTICLE X LOAN GUARANTY .............................................................................................. 98    SECTION 10.01.  Guaranty ................................................................................................ 98    SECTION 10.02.  Guaranty of Payment ............................................................................ 99    SECTION 10.03.  No Discharge or Diminishment of Loan Guaranty ............................... 99    SECTION 10.04.  Defenses Waived .................................................................................. 99    SECTION 10.05.  Rights of Subrogation ......................................................................... 100    SECTION 10.06.  Reinstatement; Stay of Acceleration. .................................................. 100    SECTION 10.07.  Information ......................................................................................... 100    SECTION 10.08.  Termination ......................................................................................... 100    SECTION 10.09.  Taxes. .................................................................................................. 101    SECTION 10.10.  Maximum Liability ............................................................................. 101    SECTION 10.11.  Liability Cumulative ........................................................................... 101    SECTION 10.12.  Keepwell ............................................................................................. 101         

 

   iv   CHI 64213081v14   SCHEDULES:      Schedule 1.01 -- Permitted Investments   Schedule 2.01 -- Commitment Schedule   Schedule 3.06 -- Disclosed Matters   Schedule 3.12 -- Subsidiaries   Schedule 3.13 -- Material Agreements   Schedule 3.16 -- Insurance   Schedule 5.12 -- Subsidiary Guarantors   Schedule 6.02 -- Existing Liens   Schedule 6.08 -- Existing Restrictions      EXHIBITS:   Exhibit A -- Form of Assignment and Assumption   Exhibit B -- Form of Borrowing Request   Exhibit C -- Form of Compliance Certificate   Exhibit D -- U.S. Tax Certificate     

 

   CHI 64213081v14   AMENDED AND RESTATED CREDIT AGREEMENT   AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 11, 2013   (as it may be amended, restated, modified, extended or supplemented from time to time, this   “Agreement”) by and among SCHWEITZER-MAUDUIT INTERNATIONAL, INC., a   Delaware corporation (“Parent” or “U.S. Borrower”), SWM LUXEMBOURG, a Luxembourg   private limited liability company (société à responsabilité limitée), having its registered office at   16, avenue Pasteur, L-2310 Luxembourg, registered with the Luxembourg Register of   Commerce and Companies (Registre de Commerce et des Sociétés, Luxembourg) under number   B 180.186 and with a share capital of EUR 3,079,205 (“SWM Luxembourg” and, together with   U.S. Borrower, the “Borrowers” and, individually, each a “Borrower”), the Lenders (as defined   below) that are from time to time a party hereto, JPMORGAN CHASE BANK, N.A., as   Administrative Agent, J.P. MORGAN SECURITIES LLC, FIFTH THIRD BANK, MERRILL   LYNCH PIERCE FENNER & SMITH, INC. and SUNTRUST ROBINSON HUMPHREY,   INC., as Joint Lead Arrangers and Joint Bookrunners, and FIFTH THIRD BANK, MERRILL   LYNCH PIERCE FENNER & SMITH, INC. and SUNTRUST ROBINSON HUMPHREY,   INC., as Co-Syndication Agents.     R E C I T A L S:   WHEREAS, Parent, Schweitzer-Mauduit RTL Philippines Inc., a Philippines corporation   (“SWM Philippines”), the Administrative Agent and the financial institutions party thereto as   lenders previously entered into that certain Credit Agreement, dated as of May 12, 2011 (as   amended, restated, supplemented or otherwise modified, the “Original Credit Agreement”),   pursuant to which such lenders agreed to extend certain loans and other financial   accommodations to or for the benefit of the Borrowers pursuant to the terms and conditions set   forth therein.   WHEREAS, the parties hereto desire to amend and restate the Original Credit Agreement   to, among other things, refinance their existing Loans (as defined in the Original Credit   Agreement) and to increase the Commitment under the Original Credit Agreement as set forth   herein to be used (a) to fund a portion of the Delstar Acquisition (as defined below), (b) for   general corporate purposes of the Borrowers and their Subsidiaries and (c) to pay expenses   relating to the negotiation and documentation of the Delstar Acquisition and this Agreement.    WHEREAS, in connection with the foregoing, the parties hereto agree that upon   satisfaction of the conditions set forth in Sections 4.01 and 4.02, the Original Credit Agreement   shall be amended and restated in its entirety and superseded by this Agreement; provided,   however, the obligation to repay the Obligations under the Original Credit Agreement shall   continue in full force and effect and shall be governed by the terms of this Agreement and   corresponding Loan Documents.   NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual   covenants set forth below, and intending to be legally bound, the parties hereto agree as follows:   AGREEMENT:     

 

   2   CHI 64213081v14   ARTICLE I      DEFINITIONS   SECTION 1.01. Defined Terms.  As used in this Agreement, the following   terms have the meanings specified below:   “ABR” when used in reference to any Loan or Borrowing, refers to whether such Loan is,   or the Loans comprising such Borrowing are, bearing interest at a rate determined by reference to   the Alternate Base Rate.   “Acquisition Expenses” means fees, costs and expenses related to the Delstar   Acquisition.   “Act” has the meaning assigned to such term in Section 9.14.   “Additional Borrower” has the meaning assigned to such term in Section 5.09(b).   “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest   Period (or, as applicable, for the purpose of determining the Alternate Base Rate for any day by   reference to a one month Interest Period), an interest rate per annum (rounded upwards, if   necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied   by (b) with respect to Loans denominated in U.S. Dollars, the Statutory Reserve Rate.   “Administrative Agent” means JPMorgan, in its capacity as administrative agent for the   Lenders hereunder, and its successors and assigns in such capacity.   “Administrative Questionnaire” means an Administrative Questionnaire in a form   supplied by the Administrative Agent.   “Adverse Tax Ruling” means a final ruling by the Supreme Court of Brazil against the   taxpayer, SWM Brazil, and in favor of the applicable tax authorities regarding either one or both   of the two assessments by the tax authorities of the State of Rio de Janeiro for Imposto sobre   Circulação de Mercadorias e Serviços for the period January 1995 through November 2000.   “Affiliate” means, with respect to a specified Person, another Person that directly, or   indirectly through one or more intermediaries, Controls or is Controlled by or is under common   Control with the Person specified.   “Agreement” has the meaning assigned to such term in the Introduction.   “Agreement Currency” has the meaning assigned to such term in Section 9.15.   “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a)   the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day   plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if   such day is not a Business Day, the immediately preceding Business Day) plus 1%; provided   that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate     

 

   3   CHI 64213081v14   appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page of such   page) at approximately 11:00 a.m. London time on such day (or if such day is not a Business   Day, the immediately preceding Business Day).  Any change in the Alternate Base Rate due to a   change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be   effective from and including the effective date of such change in the Prime Rate, the Federal   Funds Effective Rate or the Adjusted LIBO Rate, respectively.   “Applicable Percentage” means, with respect to any Lender, a percentage equal to a   fraction the numerator of which is such Lender’s Commitment and the denominator of which is   the aggregate Commitment of all Lenders (if the Commitments have terminated or expired, the   Applicable Percentages shall be determined based upon such Lender’s share of the aggregate   Revolving Credit Exposures at that time); provided that, in the case of Section 2.20 when a   Defaulting Lender shall exist, any such Defaulting Lender’s Commitment shall be disregarded in   the calculation.   “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar   Loan, or with respect to the commitment fees payable hereunder, as the case may be, the   applicable rate per annum set forth below under the caption “Eurodollar Spread”, “ABR Spread”   or “Commitment Fee Rate”, as the case may be, based upon the Borrowers’ Net Debt to   EBITDA Ratio as of the most recent determination date; provided that, until the delivery to the   Administrative Agent, pursuant to Section 5.01, of Parent’s consolidated financial information   for the fiscal quarter ending December 31, 2013, the “Applicable Rate” shall be the applicable   rate per annum set forth in Level IV below:    Level Net Debt to EBITDA Ratio   Eurodollar   Spread      ABR Spread  Commitment Fee Rate   I Greater than or equal to 2.50 to 1.00  2.00% 1.00% 0.30%   II   Greater than or equal   to 2.00 to 1.00 but   less than 2.50 to 1.00 1.75% 0.75% 0.30%   III   Greater than or equal   to 1.25 to 1.00 but   less than 2.00 to 1.00 1.50% 0.50% 0.25%   IV Less than 1.25 to 1.00 1.25% 0.25% 0.20%      For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end   of each fiscal quarter of Parent based upon Parent’s annual or quarterly consolidated financial   statements delivered pursuant to Section 5.01 and (b) each change in the Applicable Rate   resulting from a change in the Net Debt to EBITDA Ratio shall be effective during the period     

 

   4   CHI 64213081v14   commencing on and including the date of delivery to the Administrative Agent of such   consolidated financial statements indicating such change and ending on the date immediately   preceding the effective date of the next such change; provided that, the Net Debt to EBITDA   Ratio shall be deemed to be at Level I set forth above (A) at any time that an Event of Default   has occurred and is continuing or (B) if the Borrowers fail to deliver the annual or quarterly   consolidated financial statements required to be delivered by them pursuant to Section 5.01,   during the period from the expiration of the time for delivery thereof until such consolidated   financial statements are delivered.    “Approved Fund” has the meaning assigned to such term in Section 9.04.   “Asset Disposition” means any sale, transfer, lease or other disposition of any properties   or assets of any Borrower or any of its Subsidiaries (including, without limitation, pursuant to a   Sale and Leaseback Transaction and any such sale, transfer or disposition of Equity Interests) in   a single transaction or in a series of related transactions (other than (a) the sale of inventory or   the licensing of intellectual property in the ordinary course of business, (b) the sale of surplus,   obsolete or worn out property in the ordinary course of business and (c) the sale of Permitted   Investments in the ordinary course of business).   “Assignment and Assumption” means an assignment and assumption entered into by a   Lender and an assignee (with the consent of any party whose consent is required by   Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other   form approved by the Administrative Agent.   “Availability Period” means the period from and including the Effective Date to but   excluding the earlier of the Maturity Date and the date of termination of the Commitments.   “Banking Services” means each and any of the following bank services provided to the   Borrowers and/or any of their Subsidiaries by any Product Provider:  (a) credit cards for   commercial customers (including, without limitation, “commercial credit cards” and purchasing   cards), (b) stored value cards and (c) treasury management services (including, without   limitation, controlled disbursement, concentration, automated clearinghouse transactions, return   items, overdrafts and interstate depository network services).   “Banking Services Obligations” means any and all obligations of the Borrowers and/or   any of their Subsidiaries, whether absolute or contingent and howsoever and whensoever created,   arising, evidenced or acquired (including all renewals, extensions and modifications thereof and   substitutions therefor) in connection with Banking Services.   “Bankruptcy Action” has the meaning assigned to it in Section 6.12.   “Board” means the Board of Governors of the Federal Reserve System of the United   States of America.   “Borrower” has the meaning assigned to such term in the Introduction.     

 

   5   CHI 64213081v14   “Borrowing” means (a) Revolving Loans of the same Class and Type, made, converted or   continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest   Period is in effect, or (b) a Swingline Loan.   “Borrowing Request” means a request by the applicable Borrower for a Revolving   Borrowing in accordance with Section 2.03.   “Brazil Tax Assessment” means those certain tax assessments existing as of the Effective   Date against SWM Brazil by the tax authorities of the State of Rio de Janeiro, Brazil with respect   to the transaction tax on the Circulation of Goods and Services for Interstate and Intermunicipal   Transportation and Communications (ICMS) for the period from January 1995 through   November 2000.   “Business Day” means any day that is not a Saturday, Sunday or other day on which   commercial banks in New York City are authorized or required by law to remain closed;   provided that, if a determination of a Business Day shall relate to (a) a Eurodollar Loan, the term   “Business Day” shall also exclude any day on which banks are closed for dealings in U.S. Dollar   deposits in the London interbank market, (b) an Offshore Currency Loan or Letter of Credit   denominated in Euros, or any other dealings in Euros to be carried out pursuant to this   Agreement, the term “Business Day” shall also exclude any day that is not a TARGET Day, and    (c) any other Loan or Letter of Credit in any Offshore Currency, the term “Business Day” shall   also exclude any day on which dealings in deposits in the relevant Offshore Currency are not   conducted by and between banks in the applicable offshore interbank market for such Offshore   Currency.   “Capital Lease” means, with respect to any Person, any lease of (or other arrangement   conveying the right to use) any real or personal property by such Person, or a combination   thereof, that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet   of such Person.   “Capital Lease Obligations” of any Person means the obligations of such Person to pay   rent or other amounts under any Capital Lease, which obligations are required to be classified   and accounted for as capital leases on a balance sheet of such Person under GAAP, and the   amount of such obligations shall be the capitalized amount thereof determined in accordance   with GAAP.   “Change in Control” means (a) the acquisition of ownership, directly or indirectly,   beneficially or of record, by any Person or group (within the meaning of the Securities Exchange   Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on   the date hereof) of Equity Interests representing more than 35% of the aggregate ordinary voting   power represented by the issued and outstanding Equity Interests of Parent; or (b) occupation of   a majority of the seats (other than vacant seats) on the board of directors of Parent by Persons   who were neither (i) nominated by the board of directors of Parent nor (ii) appointed by directors   so nominated.   “Change in Law” means the occurrence, after the Effective Date (or with respect to any   Lender, if later, the date on which such Lender becomes a Lender), of any of the following     

 

   6   CHI 64213081v14   (a) the adoption of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation   or treaty or in the interpretation or application thereof by any Governmental Authority or   (c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any   lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if   any) with any request, guideline or directive (whether or not having the force of law) of any   Governmental Authority made or issued after the Effective Date; provided that for purposes of   this Agreement, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all   requests, rules, guidelines or directives in connection therewith and (ii) all requests, rules,   guidelines or directives promulgated by the Bank for International Settlements, the Basel   Committee on Banking Supervision (or any successor or similar authority) or the United States   or foreign regulatory authorities, in each case, pursuant to Basel III, shall in each case be deemed   to be an adoption of, change in (including, without limitation, a change in the interpretation or   administration thereof) and/or phase-in of applicable law, rule or regulation (including any   compliance thereof) and deemed to have gone into effect after the date of this Agreement   regardless of the date enacted, adopted or issued.   “Charges” has the meaning assigned to such term in Section 9.13.   “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,   or the Loans comprising such Borrowing, are U.S. Revolving Loans, EUR Revolving Loans, or   Swingline Loans and, when used in reference to any Commitment, refers to whether such   Commitment is a U.S. Revolving Commitment or EUR Revolving Commitment.   “Code” means the Internal Revenue Code of 1986, as amended from time to time.   “Commitment” means, with respect to each Lender, the commitment, if any, of such   Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline   Loans hereunder up to the amount set forth on the Commitment Schedule (or in the Assignment   and Assumption pursuant to which such Lender becomes a party hereto, as applicable) as such   commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b)   assignments by or to such Lender pursuant to Section 9.04.  The portion of the Commitments, if   any, which may be utilized for EUR Revolving Loans shall constitute the EUR Revolving   Commitment, which shall be treated as a sub-facility of the Commitment; provided that, the total   Revolving Credit Exposure shall not exceed the total Commitments.  The aggregate amount of   the Lenders’ Commitments on the Effective Date is $500,000,000.   “Commitment Schedule” means Schedule 2.01 attached hereto.   “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).   “Computation Date” means (a) each date of a delivery of a Borrowing Request, (b) with   respect to any Letter of Credit, each of the following: (i) each date of a Borrower’s delivery of a   request for the issuance of a Letter of Credit, (ii) each date of a Borrower’s request for an   amendment of any such Letter of Credit having the effect of increasing the amount thereof, and   (iii) each date of any payment by the Issuing Bank under any Letter of Credit, and (c) the last day   of each fiscal quarter.     

 

   7   CHI 64213081v14   “Control” means the possession, directly or indirectly, of the power to direct or cause the   direction of the management or policies of a Person, whether through the ability to exercise   voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings   correlative thereto.   “Default” means any event or condition which constitutes an Event of Default or which   upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.   “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that   has (a) failed to fund any portion of its Loans or participations in Letters of Credit or Swingline   Loans within three (3) Business Days of the date required to be funded by it hereunder, (b)   notified any Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any   Lender in writing that it does not intend to comply with any of its funding obligations under this   Agreement or has made a public statement to the effect that it does not intend to comply with its   funding obligations under this Agreement or under other agreements in which it commits to   extend credit, (c) failed, within three (3) Business Days after a request by the Administrative   Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations   to fund prospective Loans and participations in then outstanding Letters of Credit and Swingline   Loans, (d) otherwise failed to pay over to the Administrative Agent or any other Lender any   other amount required to be paid by it hereunder within three (3) Business Days of the date when   due, unless the subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent   company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency   proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of   creditors or similar Person charged with reorganization or liquidation of its business or   custodian, appointed for it, or has taken any action in furtherance of, or indicating its consent to,   approval of or acquiescence in any such proceeding or appointment or has a parent company that   has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver,   conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged   with reorganization or liquidation of its business or custodian appointed for it, or has taken any   action in furtherance of, or indicating its consent to, approval of or acquiescence in any such   proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by   virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or   indirect parent company thereof by a Governmental Authority so long as such ownership interest   does not result in or provide such Lender with immunity from the jurisdiction of courts within   the United States or from the enforcement of judgments or writs of attachment on its assets or   permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm   any contracts or agreements made with such Lender.   “Delstar” means Delstar, Inc., a Delaware corporation.   “Delstar Acquisition” means the acquisition on the Delstar Acquisition Effective Date of   all of the Equity Interests of Delstar by SWM Acquisition Corp. I, a Delaware corporation and   Subsidiary of Parent, by way of a merger of SWM Acquisition Corp. II, a Delaware corporation   and Subsidiary of Parent, with and into Delstar, with Delstar being the surviving entity.     “Delstar Acquisition Effective Date” has the meaning assigned to such term in Section   4.03.     

 

   8   CHI 64213081v14   “Delstar Existing Debt Documents” means the Credit Agreement, dated February 1,   2011, as amended, supplemented or otherwise modified from time to time, by and among   Delstar, Delstar Holding Corp. and Delstar Technologies, as borrowers, and RBS Citizens,   National Association, Wilmington Trust Company and TD Bank, N.A., as Lenders, together with   all loan documents, instruments and agreements executed in connection therewith.   “Disclosed Matters” means the actions, suits and proceedings and the environmental   matters disclosed in Schedule 3.06.   “Domestic Subsidiary” means any direct or indirect Subsidiary of Parent that is organized   under the laws of the United States, any State or commonwealth thereof (not including any   territory or possession thereof) or the District of Columbia.   “EBITDA” means, for any period, Net Income for such period plus (without duplication   and to the extent deducted in determining Net Income for such period) the sum of (a) Interest   Expense for such period, (b) income tax expense for such period, (c) all amounts attributable to   depreciation and amortization expense for such period, (d) non-recurring, non-cash restructuring   and impairment charges, (e) earnings attributable to the minority interest held by Parent or any of   its Subsidiaries in Persons that are not Subsidiaries, to the extent such earnings are actually   received by Parent or any of its Subsidiaries and (f) all other non-cash charges (provided that, if   any such non-cash charges represent an accrual or reserve for potential cash items in any future   period, the cash payment in respect thereof in such future period shall be subtracted from   EBITDA to such extent), minus (without duplication and to the extent included in determining   Net Income) (a) amortization of deferred revenue, but not including any increase in deferred   revenues for such period and (b) minority interests in the earnings of Subsidiaries, to the extent   such earnings are distributed to the holders of such minority interests which such holders are not   Parent or any of its Subsidiaries, all calculated for Parent and its Subsidiaries on a consolidated   basis in accordance with GAAP.  For purposes of calculating EBITDA for any period of four   consecutive quarters (each, a “Reference Period”), (i) if at any time during such Reference   Period (and after the Effective Date), Parent or any of its Subsidiaries shall have made an   acquisition or a disposition of any line of business or Subsidiary (other than, with respect to the   fiscal quarter ended March 31, 2013, June 30, 2013 and September 30, 2013, the Delstar   Acquisition), EBITDA for such Reference Period shall be calculated after giving pro forma   effect thereto (including pro forma adjustments arising out of events which are directly   attributable to such acquisition or disposition, are factually supportable and are expected to have   a continuing impact, in each case determined on a basis consistent with Article 11 of Regulation   S-X promulgated under the Securities Act of 1933, as amended, and as interpreted by the staff of   the Securities and Exchange Commission) or in such other manner reasonably acceptable to the   Administrative Agent as if any such acquisition, disposition or adjustment occurred on the first   day of such Reference Period, and (ii) from and after the consummation of the Delstar   Acquisition, EBITDA for the fiscal quarters ended March 31, 2013, June 30, 2013 and   September 30, 2013 for the Borrowers and their Subsidiaries shall be deemed to be $57,600,000,   $60,700,000 and $61,700,000, respectively, and the EBITDA for the fiscal quarter ending   December 31, 2013 for Delstar and its Subsidiaries shall be calculated in accordance with clause   (i) above.       

 

   9   CHI 64213081v14   “Effective Date” means the date on which the conditions specified in Section 4.01 are   satisfied (or waived in accordance with Section 9.02).   “EMU” means the economic and monetary union in accordance with the Treaty of Rome   1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the   Amsterdam Treaty of 1998.   “EMU Legislation” means the legislative measures of the EMU for the introduction of,   changeover to or operation of a single or unified European currency.   “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,   decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered   into by any Governmental Authority, relating in any way to the environment, preservation or   reclamation of natural resources, the management, release or threatened release of any   Hazardous Material or to health and safety matters.   “Environmental Liability” means any liability, contingent or otherwise (including any   liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the   Borrowers or any Subsidiary directly or indirectly resulting from or based upon (a) violation of   any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or   disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or   threatened release of any Hazardous Materials into the environment or (e) any contract,   agreement or other consensual arrangement pursuant to which liability is assumed or imposed   with respect to any of the foregoing.   “Equity Interests” means shares of capital stock, partnership interests, membership   interests in a limited liability company, beneficial interests in a trust or other equity ownership   interests in a Person, and any warrants, options or other rights entitling the holder thereof to   purchase or acquire any such equity interest.   “Equivalent Amount” means, whenever this Agreement requires or permits a   determination on any date of the equivalent in any currency (the “base currency”) of an amount   expressed in any other currency (the “other currency”), the equivalent amount in such base   currency of such amount expressed in the other currency as determined by the Administrative   Agent or Borrowers, as applicable, on such date on the basis of the Spot Rate for the purchase of   the base currency with such other currency on the relevant Computation Date provided for   hereunder.   “ERISA” means the Employee Retirement Income Security Act of 1974, as amended   from time to time.   “ERISA Affiliate” means any trade or business (whether or not incorporated) that,   together with any Borrower, is treated as a single employer under Section 414(b) or (c) of the   Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as   a single employer under Section 414 of the Code.   “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA   or the regulations issued thereunder with respect to a Plan (other than an event for which the 30     

 

   10   CHI 64213081v14   day notice period is waived), (b) the existence with respect to any Plan of an “accumulated   funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether   or not waived, (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA   of an application for a waiver of the minimum funding standard with respect to any Plan, (d) the   incurrence by the Borrowers or any of their ERISA Affiliates of any liability under Title IV of   ERISA with respect to the termination of any Plan, (e) the receipt by the Borrowers or any   ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to   terminate any Plan or Plans or to appoint a trustee to administer any Plan, (f) the incurrence by   the Borrowers or any of their ERISA Affiliates of any liability with respect to the withdrawal or   partial withdrawal from any Plan or Multiemployer Plan, or (g) the receipt by the Borrowers or   any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrowers   or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a   determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,   within the meaning of Title IV of ERISA.   “Euro”, “EUR” and “€” mean the lawful currency of the Participating Member States   introduced in accordance with the EMU Legislation.   “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such   Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by   reference to the Adjusted LIBO Rate.   “Eurodollar Loan” means a Loan denominated in U.S. Dollars or in an Offshore   Currency that bears interest at the Adjusted LIBO Rate plus the Applicable Margin in effect for   Eurodollar Loans from time to time.   “EUR Revolving Commitment” means, at any time, with respect to each Lender, the   commitment, if any, of such Lender to make EUR Revolving Loans in Euros and to acquire   participations in Letters of Credit issued in Euros in connection therewith up to the amount set   forth on the Commitment Schedule (or in the Assignment and Assumption pursuant to which   such Lender becomes a party hereto, as applicable) as such commitment may be reduced or   increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such   Lender pursuant to Section 9.04.  The EUR Revolving Commitment of each EUR Revolving   Credit Lender is a sub-commitment of its Commitment.  The initial aggregate amount of the   Lenders’ EUR Revolving Commitments is the Equivalent Amount in Euros of $300,000,000.   “EUR Revolving Credit Exposure” means, with respect to any EUR Revolving Credit   Lender at any time, the sum of the Equivalent Amount in U.S. Dollars of the outstanding   principal amount of such Lender’s EUR Revolving Loans and its LC Exposure with respect to   Letters of Credit issued in Euros at such time.   “EUR Revolving Credit Facility” means the credit facility established for the U.S.   Borrower and SWM Luxembourg pursuant to Section 2.01(b).   “EUR Revolving Credit Lender” means a Lender with a EUR Revolving Commitment or,   if the EUR Revolving Commitments have terminated or expired, a Lender with EUR Revolving   Credit Exposure.     

 

   11   CHI 64213081v14   “EUR Revolving Loan” means a Loan made pursuant to Section 2.01(b).   “Event of Default” has the meaning assigned to such term in Article VII.   “Excluded Swap Obligation” means any Hedging Obligation of a Loan Party (other than   the direct counterparty of such Hedging Obligation) if, and to the extent that, all or a portion of   the guaranty of such Loan Party of, or the grant by such Loan Party of a security interest to   secure, such Hedging Obligation (or any guaranty thereof) is or becomes illegal under the   Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading   Commission (or the application or official interpretation of any thereof) by virtue of such Loan   Party’s failure for any reason to constitute an “eligible contract participant” as defined in the   Commodity Exchange Act at the time the guaranty of such Loan Party or the grant of such   security interest becomes effective with respect to such Hedging Obligation.  If a Hedging   Obligation arises under a master agreement governing more than one swap, such exclusion shall   apply only to the portion of such Hedging Obligation that is attributable to swaps for which such   Guarantee or security interest is or becomes illegal.   “Excluded Taxes” means, with respect to any payment made by any Loan Party under   this Agreement, any of the following Taxes imposed on or with respect to a Recipient:   (a) income or franchise Taxes imposed on (or measured by) net income by the   United States of America, or by the jurisdiction under the laws of which such Recipient is   organized or in which its principal office is located or, in the case of any Lender, in   which its applicable lending office is located;   (b) any branch profits Taxes imposed by the United States of America or any   similar Taxes imposed by any other jurisdiction in which any Borrower is located; and    (c) in the case of a Non-U.S. Lender (other than an assignee pursuant to a   request by a Borrower under Section 2.19(b)), any U.S. Federal withholding Taxes   resulting from any law in effect (including FATCA) on the date such Non-U.S. Lender   becomes a party to this Agreement (or designates a new lending office) or is attributable   to such Non-U.S. Lender’s failure to comply with Section 2.17(f), except to the extent   that such Non-U.S. Lender (or its assignor, if any) was entitled, at the time of designation   of a new lending office (or assignment), to receive additional amounts from the   Borrowers with respect to such withholding Taxes pursuant to Section 2.17(a).   “Existing Debt Documents” means the Original Credit Agreement and each other Loan   Document (as defined therein).   “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this   Agreement and any regulations or official interpretations thereof.   “Federal Funds Effective Rate” means, for any day, the weighted average (rounded   upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds   transactions with members of the Federal Reserve System arranged by Federal funds brokers, as   published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if   such rate is not so published for any day that is a Business Day, the average (rounded upwards, if     

 

   12   CHI 64213081v14   necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received   by the Administrative Agent from three Federal funds brokers of recognized standing selected by   it.   “Fee Letter” means that certain fee letter agreement, dated November 25, 2013, among   Parent, SWM Luxembourg and the Administrative Agent.   “Financial Officer” means the chief financial officer, principal accounting officer,   treasurer or controller of a Borrower.   “Foreign Borrower” means, individually, each of SWM Luxembourg and each other   Borrower which may become a borrower hereunder pursuant to Section 5.09 from time to time   that is a Foreign Subsidiary of Parent.   “Foreign Borrower Documents” has the meaning assigned to such term in Section 3.19.   “Foreign Subsidiary” means any direct or indirect Subsidiary of Parent that is not a   Domestic Subsidiary.   “GAAP” means generally accepted accounting principles in the United States of   America.   “Governmental Authority” means the government of the United States of America, any   other nation or any political subdivision thereof, whether foreign, state or local, and any agency,   authority, instrumentality, regulatory body, court, central bank or other entity exercising   executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or   pertaining to government.   “Governmental Authorizations” means any and all permits, licenses, authorizations,   certificates, registrations, accreditations and governmental or other approvals applied for,   pending by, issued or given to the Borrowers or any of their Subsidiaries with or by any   Governmental Authorities and all agreements with any Governmental Authorities entered into by   the Borrowers or any of their Subsidiaries, that are in effect or applied for.   “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or   otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any   Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,   whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,   (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such   Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase   of) any security for the payment thereof, (b) to purchase or lease property, securities or services   for the purpose of assuring the owner of such Indebtedness or other obligation of the payment   thereof or (c) to maintain working capital, equity capital or any other financial statement   condition or liquidity of the primary obligor so as to enable the primary obligor to pay such   Indebtedness or other obligation; provided, that the term Guarantee shall not include (i)   endorsements for collection or deposit in the ordinary course of business, (ii) joint and several   liability imposed by Environmental Laws or (iii) inventory purchase agreements entered into in   connection with the sale of a mill or other facility.     

 

   13   CHI 64213081v14   “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.   “Guaranteed Parties” means each of (a) the Administrative Agent, (b) the Lenders, (c) the   Issuing Bank and (d) any Product Provider with respect to Banking Services Obligations and   Swap Obligations.   “Guarantor” means, individually, (a) Parent and (b) each Subsidiary Guarantor.   “Hazardous Materials” means all explosive or radioactive substances or wastes and all   hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum   distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,   infectious or medical wastes and all other substances or wastes of any nature regulated pursuant   to any Environmental Law.   “Hedging Obligation” means, with respect to any Loan Party, any obligation to pay or   perform under any agreement, contract or transaction that constitutes a “swap” within the   meaning of Section 1a(47) of the Commodity Exchange Act.   “Indebtedness” of any Person means, without duplication, (a) all obligations of such   Person for borrowed money (including, without limitation, with respect to overdrafts),  (b) all   obligations of such Person evidenced by bonds, debentures, notes, preferred Equity Interests   (which preferred Equity Interests are either mandatorily redeemable or redeemable at the option   of the holder, in each case, at any time on or prior to the date that is six months after the Maturity   Date) or similar instruments, (c) all obligations of such Person upon which interest charges are   customarily paid, (d) all obligations of such Person under conditional sale or other title retention   agreements relating to property acquired by such Person, (e) all obligations of such Person in   respect of the deferred purchase price of property or services (excluding trade accounts payable   incurred in the ordinary course of business and repayable in accordance with customary trade   practices), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness   has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or   acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g)   all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of   such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in   respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of   such Person in respect of bankers’ acceptances and (k) all Off-Balance Sheet Liabilities.  The   Indebtedness of any Person shall include the Indebtedness of any other entity (including any   partnership in which such Person is a general partner) to the extent such Person is liable therefor   as a result of such Person’s ownership interest in or other relationship with such entity, except to   the extent the terms of such Indebtedness provide that such Person is not liable therefor.   “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with   respect to any payment made by any Loan Party under any Loan Document and (b) Other Taxes.   “Indemnitee” has the meaning assigned to such term in Section 9.03(b).   “Information Memorandum” means the Confidential Information Memorandum dated   November 2013 relating to the Borrowers and the Transactions.     

 

   14   CHI 64213081v14    “Interest Coverage Ratio” means, on any date of determination, the ratio of (a) EBITDA   to (b) Interest Expense paid or payable in cash, in case of each of clauses (a) and (b) for the most   recently completed four fiscal quarters then ended of Parent as of such date.   “Interest Election Request” means a request by the Borrowers to convert or continue a   Revolving Borrowing in accordance with Section 2.08.   “Interest Expense” means, for any period, total interest expense (including that   attributable to Capital Lease Obligations) of Parent and its Subsidiaries for such period with   respect to all outstanding Indebtedness of Parent and its Subsidiaries (including all commissions,   discounts and other fees and charges owed with respect to letters of credit and bankers’   acceptance financing and net costs under Swap Agreements in respect of interest rates to the   extent such net costs are allocable to such period in accordance with GAAP) calculated on a   consolidated basis for Parent and its Subsidiaries for such period in accordance with GAAP.   “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline   Loan), the last day of each March, June, September and December, (b) with respect to any   Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such   Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than   three months’ duration, each day prior to the last day of such Interest Period that occurs at   intervals of three months’ duration after the first day of such Interest Period and (c) with respect   to any Swingline Loan, the day that such Loan is required to be repaid.   “Interest Period” means with respect to any Eurodollar Borrowing, the period   commencing on the date of such Borrowing and ending on the numerically corresponding day in   the calendar week or calendar month that is one week or one, two, three or six months thereafter,   as the applicable Borrower may elect; provided that (a) if any Interest Period would end on a day   other than a Business Day, such Interest Period shall be extended to the next succeeding   Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business   Day would fall in the next calendar week or month, as applicable, in which case such Interest   Period shall end on the next preceding Business Day and (b) any Interest Period pertaining to a   Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day   for which there is no numerically corresponding day in the last calendar month of such Interest   Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For   purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is   made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most   recent conversion or continuation of such Borrowing.   “Interpolated Rate” has the meaning assigned to such term in the definition of LIBO   Rate.   “IRS” means the United States Internal Revenue Service.   “Issuing Bank” means JPMorgan, in its capacity as the issuer of Letters of Credit   hereunder, and its successors in such capacity as provided in Section 2.06(i).  The Issuing Bank   may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the     

 

   15   CHI 64213081v14   Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect   to Letters of Credit issued by such Affiliate.   “JPMorgan” means JPMorgan Chase Bank, N.A., a national banking association, and its   successors.   “Judgment Currency” has the meaning assigned to such term in Section 9.15.   “LC Borrower” has the meaning assigned to such term in Section 2.06(b).   “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).   “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of   Credit.   “LC Exposure” means, at any time, the sum of (a) the Equivalent Amount in U.S. Dollars   of the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the   Equivalent Amount in U.S. Dollars of the aggregate amount of all LC Disbursements that have   not yet been reimbursed by or on behalf of the Borrowers at such time.  The LC Exposure of any   Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.   “Lenders” means the Persons listed on the Commitment Schedule and any other Person   that shall have become a party hereto pursuant to an Assignment and Assumption or pursuant to   Section 2.09(c), other than any such Person that ceases to be a party hereto pursuant to an   Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders”   includes the Swingline Lender.   “Letter of Credit” means any letter of credit issued pursuant to this Agreement.   “LIBO Rate” means, for any Interest Period for any Eurodollar Loan comprising part of   the same Borrowing in any currency, an interest rate per annum:    (a) in the case of U.S. Dollars, equal to the rate appearing on Reuters Screen   LIBOR01 Page (or on any successor or substitute page of such service, or any successor   to or substitute for such service, providing rate quotations comparable to those currently   provided on such page of such service, as determined by the Administrative Agent from   time to time for purposes of providing quotations of interest rates applicable to U.S.   Dollar deposits in the London interbank market) at approximately 11:00 a.m., London   time, two (2) Business Days prior to the commencement of such Interest Period, as the   rate for dollar deposits with a maturity comparable to such Interest Period; and   (b) in the case of Euros, equal to the rate per annum for deposits in such   currency that appears on Reuters Page EURIBOR-01 (or any successor or substitute page   of such service, or any successor to or substitute for such service, providing rate   quotations comparable to those currently provided on such page of such service, as   determined by the Administrative Agent from time to time for purposes of providing   quotations of interest rates applicable to Euros);     

 

   16   CHI 64213081v14   provided, however that if the LIBO Rate shall not be available at the applicable time for a period   equal in length to any Interest Period, then the LIBO Rate shall be determined by the   Administrative Agent (which determination shall be conclusive and binding absent manifest   error) to be equal to the rate that results from interpolating on a linear basis between (such rate   being referred to herein as the “Interpolated Rate”):  (A) the LIBO Rate for the longest period for   which the LIBO Rate is available that is shorter than the affected Interest Period and (B) the   LIBO Rate for the shortest period for which the LIBO Rate is available that exceeds the affected   Interest Period, in each case, at such time.    “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,   hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of   a vendor or a lessor under any conditional sale agreement, capital lease or title retention   agreement (or any financing lease having substantially the same economic effect as any of the   foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or   similar right of a third party with respect to such securities.   “Loan Documents” means this Agreement, any Notes, any Letter of Credit applications,   each Subsidiary Guaranty and all other agreements, instruments, documents and certificates   identified in or required by Section 4.01 or 4.03 executed and delivered to, or in favor of, the   Administrative Agent or any Lenders and including all other guaranties, pledges, powers of   attorney, consents, assignments, contracts, notices, letter of credit agreements and all other   written matter whether now or hereafter executed by or on behalf of any Loan Party, or any   employee of any Loan Party, and delivered to the Administrative Agent or any Lender in   connection with this Agreement or the transactions contemplated hereby.  Any reference in this   Agreement or any other Loan Document to a Loan Document shall include all appendices,   exhibits or schedules thereto, and all amendments, restatements, supplements or other   modifications thereto, and shall refer to this Agreement or such Loan Document as the same may   be in effect at any and all times such reference becomes operative.   “Loan Guaranty” means Article X of this Agreement.   “Loan Parties” means, collectively, each Borrower, each Guarantor and each other Person   which executes a guaranty of the Obligations in favor of the Administrative Agent.   “Loans” means the loans made by the Lenders to the Borrowers pursuant to this   Agreement.   “Margin Stock” means any “margin stock” as defined in Regulation U of the Board.   “Material Adverse Effect” means (a) a material adverse change in, or a material adverse   effect on (i) the operations, business, assets, properties, liabilities (actual or contingent) or   condition, financial or otherwise, of Parent and its Subsidiaries, taken as a whole, or (ii) the   ability of any Loan Party to perform any of its obligations under any Loan Document to which it   is a party, (b) a material impairment of the rights and remedies of or benefits available to the   Administrative Agent or any Lender under the Loan Documents, or (c) a material adverse effect   upon the legality, validity, binding effect or enforceability against any Borrower or any other   Loan Party of any Loan Document to which it is a party.     

 

   17   CHI 64213081v14   “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit),   or obligations in respect of one or more Swap Agreements, of any one or more of the Borrowers   and its/their Subsidiaries in an aggregate principal amount exceeding $10,000,000.  For purposes   of determining Material Indebtedness, the “principal amount” of the obligations of the Borrowers   or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum   aggregate amount (giving effect to any netting agreements) that the Borrowers or such   Subsidiary would be required to pay if such Swap Agreement were terminated at such time.   “Material Subsidiary” means (a) each Borrower other than Parent and (b) each other   consolidated Subsidiary of Parent which (i) holds 10% or more of the consolidated assets of   Parent, or (ii) generates 10% or more of consolidated EBITDA of Parent, calculated as of the   most recent fiscal period for which the Administrative Agent shall have received financial   statements required to be delivered pursuant to Sections 5.01(a) and (b).   “Maturity Date” means December 11, 2018 or any earlier date on which the   Commitments are terminated pursuant to the terms hereof.   “Maximum Liability” has the meaning assigned to such term in Section 10.10.   “Maximum Rate” has the meaning assigned to such term in Section 9.13.   “Merger Agreement” means that certain Agreement and Plan of Merger, dated as of   November 18, 2013, by and among SWM Acquisition Corp. I, a Delaware corporation, SWM   Acquisition II, a Delaware corporation, Delstar, the sellers named therein, American Capital,   Ltd. and Parent.     “Moody’s” means Moody’s Investors Service, Inc.   “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of   ERISA.   “Net Debt” means, for any date of determination, (a) Parent’s and its Subsidiaries’   consolidated Total Debt as of such date minus (b) the total amount of unrestricted cash and cash   equivalents (as defined in and set forth on the consolidated financial statements of Parent for the   previous fiscal quarter or year for which financial statements have been delivered pursuant to   Section 5.01(a) or (b)) of Parent in excess of $15,000,000, in each case, as determined in   accordance with GAAP; provided, however, that clause (i) of the definition of “Indebtedness”   shall be excluded for purposes of determining Net Debt.   “Net Debt to EBITDA Ratio” means, on any date of determination, the ratio of (a) Net   Debt as of such date to (b) EBITDA for the most recently completed four fiscal quarters then   ended of Parent as of such date.   “Net Income” means, for any period, the consolidated net income (or loss) of Parent and   its Subsidiaries determined on a consolidated basis in accordance with GAAP; provided that   there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it   becomes a Subsidiary or is merged into or consolidated with Parent or any of its Subsidiaries, (b)   the income (or deficit) of any Person (other than a Subsidiary) in which Parent or any of its     

 

   18   CHI 64213081v14   Subsidiaries has an ownership interest and (c) the undistributed earnings of any Subsidiary to the   extent that the declaration or payment of dividends or similar distributions by such Subsidiary is   not at the time permitted by the terms of any contractual obligation (other than under any Loan   Document) or Requirement of Law applicable to such Subsidiary.   “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).   “Non-U.S. Lender” means a Lender that is not a U.S. Person.   “Note” means each promissory note issued by the Borrowers pursuant to Section 2.10(e).   “Obligated Party” has the meaning assigned to such term in Section 10.02.   “Obligations” means all unpaid principal of and accrued and unpaid interest on the   Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements,   indemnities and other obligations (including all interest that accrues after the commencement of   any case or proceeding by or against any Loan Party in bankruptcy, whether or not allowed in   such case or proceeding) of the Loan Parties to the Lenders or to any Lender, the Administrative   Agent, the Issuing Bank or any indemnified party arising under the Loan Documents, and all   Banking Services Obligations and Swap Obligations; provided, that Obligations shall not include   Excluded Swap Obligations.     “Offshore Currency” means Euros.   “Offshore Currency Loan” means any Loan denominated in an Offshore Currency.   “OFAC” has the meaning assigned to such term in Section 5.10.   “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability   of such Person with respect to accounts or notes receivable sold by such Person, (b) any liability   under any Sale and Leaseback Transaction other than Capital Lease Obligations, (c) any liability   under any so-called “synthetic lease” arrangement or transaction entered into by such Person or   (d) any obligation arising with respect to any other transaction which is the functional equivalent   of or takes the place of borrowing but which does not constitute a liability on the balance sheets   of such Person.   “Original Credit Agreement” has the meaning assigned to such term in the Recitals.   “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a   result of a present or former connection between such Recipient and the jurisdiction imposing   such Taxes (other than a connection arising from such Recipient having executed, delivered,   enforced, become a party to, performed its obligations under, received payments under, received   or perfected a security interest under, or engaged in any other transaction pursuant to, or   enforced, this Agreement, or sold or assigned an interest in this Agreement).   “Other Taxes” means any present or future stamp, court, documentary, intangible,   recording, filing or similar excise or property Taxes that arise from any payment made under,   from the execution, delivery, performance, enforcement or registration of, or from the     

 

   19   CHI 64213081v14   registration, receipt or perfection of a security interest under, or otherwise with respect to, this   Agreement, except any such Taxes that are Other Connection Taxes imposed with respect to an   assignment (other than an assignment under Section 2.19(b)).   “P de Mal” means Papeteries de Malaucene S.A.S. and its subsidiary, Malaucene   Industries S.N.C.    “Parent” has the meaning assigned to such term in the Introduction.   “Participant” has the meaning assigned to such term in Section 9.04(c).   “Participant Register” has the meaning assigned to such term in Section 9.04(c).   “Participating Member State” means each state so described in any EMU Legislation.   “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in   ERISA and any successor entity performing similar functions.   “Permitted Acquisition” means any acquisition, other than the Delstar Acquisition or an   intercompany acquisition, by (i) Parent or any of its Subsidiaries of all or substantially all of the   assets of a Person, or of all or substantially all of any business or division of a Person or (ii)   Parent or any of its Subsidiaries of a majority of the Equity Interests of any Person, in each case,   so long as the following conditions have been satisfied:   (a) the Administrative Agent shall receive not less than twenty (20) days’   prior written notice of any such acquisition with an aggregate consideration of greater   than $100,000,000 individually or in the aggregate in any fiscal year, which notice shall   include a reasonably detailed description of the proposed terms of such acquisition and   identify the anticipated closing date thereof;   (b) the Administrative Agent shall receive, not less than ten (10) Business   Days (or such shorter period as shall be agreed to by the Administrative Agent) prior to   the consummation of such acquisition (to the extent notice thereof is required under   clause (a) above), a due diligence package, which package shall include, without   limitation, the following with regard to the acquisition of the applicable Target:   (i) pro forma financial projections (after giving effect to such   acquisition) for Parent and its Subsidiaries for the current and next two (2) fiscal   years or through the remaining term of the agreement; and   (ii) a general description of (A) the Target’s business and (B) material   agreements binding upon the Target or any of its personal or real property and, if   requested by the Administrative Agent, copies of such material agreements;   (c) prior to and after giving effect to such acquisition and the incurrence of   any Loans, other Indebtedness or contingent obligations in connection therewith, Parent   on a consolidated basis shall have a Net Debt to EBITDA Ratio (after giving effect to   such acquisition, calculated on a pro forma basis in a manner reasonably satisfactory to     

 

   20   CHI 64213081v14   the Administrative Agent) of not greater than 2.75:1.00 for the twelve (12) month period   ending on the last day of the most recently ended quarter for which financial statements   of Borrower have been delivered to the Administrative Agent pursuant to Section 5.01(b)   prior to such acquisition;   (d) all material consents necessary for such acquisition have been acquired   and such acquisition is consummated in accordance with the applicable acquisition   documents and applicable law;   (e) such acquisition shall not be hostile and (if required) shall have been   approved by the board of directors (or other similar body) and/or the stockholders or   other equity holders of the Target; and   (f) no Default or Event of Default is in existence or would occur after giving   effect to such acquisition.   “Permitted Encumbrances” means:   (a) Liens imposed by law for Taxes that are not yet due or are being contested   in compliance with Section 5.04;   (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and   other like Liens imposed by law or arising in the ordinary course of business and securing   obligations that are not overdue by more than thirty (30) days or are being contested in   compliance with Section 5.04;   (c) pledges and deposits made in the ordinary course of business in   compliance with workers’ compensation, unemployment insurance and other social   security laws or regulations or to secure statutory obligations of the Borrowers or their   Subsidiaries;   (d) deposits to secure the performance of bids, trade contracts, leases,   statutory obligations, surety and appeal bonds, performance bonds and other obligations   of a like nature, in each case in the ordinary course of business;   (e) judgment liens in respect of judgments that do not constitute an Event of   Default under clause (k) of Article VII; and   (f) easements, zoning restrictions, rights-of-way and similar encumbrances on   real property imposed by law or arising in the ordinary course of business that do not   secure any monetary obligations and do not materially detract from the value of the   affected property or interfere with the ordinary conduct of business of the Borrowers or   any Subsidiary;   provided that the term “Permitted Encumbrances” shall not include any Lien securing   Indebtedness.     

 

   21   CHI 64213081v14   “Permitted Investments” means:   (a) direct obligations of, or obligations the principal of and interest on which   are unconditionally guaranteed by (i) the government of Brazil, with respect to   investments of amounts arising from or used in the conduct of such Person’s business in   Brazil, (ii) the United States (or by any agency thereof to the extent such obligations are   backed by the full faith and credit of the United States), (iii) the Republic of France, (iv)   the Kingdom of Spain, (v) the Republic of Indonesia, with respect to investments of   amounts arising from or used in the conduct of such Person’s business in Indonesia, or   (vi) the Republic of The Philippines, with respect to investments of amounts arising from   or used in the conduct of such Person’s business in the Philippines;        (b) investments in commercial paper maturing within 270 days from the date   of acquisition thereof and having, at such date of acquisition, a credit rating from S&P   not less than “A-2” or not less than “P-2” from Moody’s Investors Service;   (c) investments in certificates of deposit, banker’s acceptances and time   deposits maturing within 180 days from the date of acquisition thereof issued or   guaranteed by or placed with, and money market deposit accounts issued or offered by   any commercial bank which has a combined capital and surplus and undivided profits of   not less than $500,000,000;   (d)  fully collateralized repurchase agreements with a term of not more than   30 days for securities described in clause (a) above and entered into with a financial   institution satisfying the criteria described in clause (c) above;    (e) money market funds that (i) comply with the criteria set forth in Securities   and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940,  as   amended, to the extent any such money market funds are subject to such act, (ii) are rated   AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least   $5,000,000,000;      (f) such other instruments (within the meaning of Article 9 of the Uniform   Commercial Code as adopted in the State of New York) or money market funds either (i)   as listed on Schedule 1.01 or (ii) as the Borrowers may request and the Administrative   Agent may approve in writing, which approval will not be unreasonably withheld; and       (g) with respect to investments of amounts arising from or used in the conduct   of such Person’s business in Brazil, Indonesia and the Philippines, bank debt securities   issued by the following banks: Banco ABN AMRO Real S.A., Banco do Brasil S.A.,   Banco Itau S.A., Banco Safra S.A., HSBC Bank Brasil S.A. Banco Multiplo, Standard   Chartered Bank, Pan Indonesia Bank, Bank of the Philippine Islands, Equitable PCI Bank   (collectively, the “Permitted Banks”) or any Lender; provided that (i) such bank receives   a long-term foreign currency senior debt rating from either  S&P or Moody’s and such   rating is equal to or higher than B- (or the then equivalent) (provided that (A) if the   ratings established or deemed to have been established by S&P and Moody’s for such   bank shall differ, the lower of the two ratings shall apply and (B) if neither S&P nor     

 

   22   CHI 64213081v14   Moody’s shall have in effect a long-term foreign currency senior debt rating for such   bank, then Moody’s long-term foreign currency deposit rating, if any, shall be substituted   therefor); (ii) notwithstanding anything to the contrary contained in this definition, the   aggregate amount of all investments and other amounts held by Borrowers or any of their   Subsidiaries in Permitted Banks shall not exceed the Equivalent Amount of  $30,000,000   and the aggregate amount of all investments and other amounts held in Permitted Banks   located in Indonesia or the Philippines shall not exceed the Equivalent Amount of   $25,000,000 and (iii) such investments may be terminated without premium or penalty   within three Business Days.   “Permitted Liens” means Liens permitted by Section 6.02 hereof.   “Person” means any natural person, corporation, limited liability company, trust, joint   venture, association, company, partnership, Governmental Authority or other entity.   “Plan”  means any employee pension benefit plan (other than a Multiemployer Plan)   subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of   ERISA, and in respect of which a Borrower or any ERISA Affiliate is (or, if such plan were   terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in   Section 3(5) of ERISA.   “Prime Rate” means the rate of interest per annum publicly announced from time to time   by JPMorgan as its prime rate in effect at its office located at 270 Park Avenue, New York, New   York; each change in the Prime Rate shall be effective from and including the date such change   is publicly announced as being effective.   “Product Provider” means any Lender or any of its Affiliates (or any Person party to a   Swap Agreement with any Borrower that was a Lender or an Affiliate thereof party to such Swap   Agreement immediately prior to the assignment of all of its Commitments and Loans hereunder   pursuant to Section 9.04).    “Qualified ECP Guarantor” means, in respect of any Hedging Obligation, each Loan   Party that has total assets exceeding $10,000,000 at the time the relevant guaranty or grant of the   relevant security interest becomes effective with respect to such Hedging Obligation or such   other person as constitutes an “eligible contract participant” under the Commodity Exchange Act   and can cause another person to qualify as an “eligible contract participant” at such time by   entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.   “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and   (c) the Issuing Bank.   “Register” has the meaning assigned to such term in Section 9.04(b).   “Related Parties” means, with respect to any specified Person, such Person’s Affiliates   and the respective directors, officers, employees, agents and advisors of such Person and such   Person’s Affiliates.     

 

   23   CHI 64213081v14   “Report” means reports prepared by the Administrative Agent or another Person showing   the results of examinations, inspections or audits pertaining to a Borrower’s and/or any of its   Subsidiary’s assets from information furnished by or on behalf of such Borrower or any such   Subsidiary, which Reports may be distributed to the Lenders by the Administrative Agent.   “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and   unused Commitments representing at least 51% of the sum of the total Revolving Credit   Exposures and unused Commitments at such time.   “Requirement of Law” means, as to any Person, the certificate of incorporation and by-   laws or other organizational or governing documents of such Person, and any law, treaty, rule or   regulation or determination of an arbitrator or a court or other Governmental Authority, in each   case applicable to or binding upon such Person or any of its property or to which such Person or   any of its property is subject.   “Restricted Payment” means (a) any dividend or other distribution (whether in cash,   securities or other property) with respect to any Equity Interests in the Borrowers or any   Subsidiary or (b) any payment (whether in cash, securities or other property), including any   sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,   cancellation or termination of any such Equity Interests in the Borrowers or any Subsidiary or   any option, warrant or other right to acquire any such Equity Interests in the Borrowers or any   Subsidiary.   “Revolving Borrowing” means a Borrowing that is comprised of (a) a Revolving Loan or   (b) a Swingline Loan.    “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of   the Equivalent Amount in U.S. Dollars of outstanding principal amount of such Lender’s   Revolving Loans, its LC Exposure and its Swingline Exposure at such time.   “Revolving Loan” means a Loan made pursuant to Section 2.01.   “Sanctions” has the meaning assigned to such term in Section 3.07.   “S&P” means Standard & Poor’s.   “Sale and Leaseback Transaction” means any sale or other transfer of property by any   Person with the intent to lease such property as lessee.   “Significant Subsidiary” means (a) each Material Subsidiary and (b) such other   Subsidiaries, as determined from time to time by Parent, that, when taken together with the Loan   Parties and the Material Subsidiaries, hold 85% or more of the consolidated assets or generate   85% or more of consolidated EBITDA of Parent, in each case of clauses (a) and (b), calculated   as of the most recent fiscal period for which the Administrative Agent shall have received   financial statements required to be delivered pursuant to Sections 5.01(a) and (b).    “Solvent” means, as to any Person: (a) the fair value of the assets of such Person, at a fair   valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the     

 

   24   CHI 64213081v14   present fair saleable value of the property of such Person will be greater than the amount that   will be required to pay the probable liability of its debts and other liabilities, subordinated,   contingent or otherwise, as such debts and other liabilities become absolute and matured; (c)   such Person will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as   such debts and liabilities become absolute and matured; and (d) such Person will not have   unreasonably small capital with which to conduct the business in which it is engaged as such   business is now conducted and is proposed to be conducted after the Effective Date.     “Spot Rate” for a currency means (a) for any Computation Date ending on the last day of   a fiscal quarter (except in the case of any determination of the Spot Rate used in the calculation   of the Equivalent Amount in connection with or pursuant to any terms, conditions or other   provisions located in Article II herein), the rate used by Parent in preparing its financial   statements in accordance with GAAP and (b) for all other purposes, the rate quoted by the   Administrative Agent as the spot rate for the purchase by the Administrative Agent of such   currency with another currency through its foreign exchange office at approximately 11:00 a.m.   (New York time) on the date two (2) Business Days prior to the date as of which the foreign   exchange computation is made.   “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of   which is the number one and the denominator of which is the number one minus the aggregate of   the maximum reserve percentage (including any marginal, special, emergency or supplemental   reserves) expressed as a decimal established by the Board to which the Administrative Agent is   subject, with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to   as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentage shall   include those imposed pursuant to such Regulation D.  Eurodollar Loans shall be deemed to   constitute eurocurrency funding and to be subject to such reserve requirements without benefit of   or credit for proration, exemptions or offsets that may be available from time to time to any   Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall   be adjusted automatically on and as of the effective date of any change in any reserve   percentage.   “subsidiary” means, with respect to any Person (the “parent”) at any date, any   corporation, limited liability company, partnership, association or other entity the accounts of   which would be consolidated with those of the parent in the parent’s consolidated financial   statements if such financial statements were prepared in accordance with GAAP as of such date,   as well as any other corporation, limited liability company, partnership, association or other   entity (a) of which securities or other ownership interests representing more than 50% of the   equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than   50% of the general partnership interests are, as of such date, owned, controlled or held, or (b)   that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the   parent or by the parent and one or more subsidiaries of the parent.   “Subsidiary” means any subsidiary of any Borrower; provided, however, from and after   the occurrence of a Bankruptcy Action with respect to SWM Brazil or P de Mal to the extent   such Bankruptcy Action was permitted under Section 6.03(a)(v), SWM Brazil and/or P de Mal,   as applicable, shall not be deemed to be a Subsidiary under this Agreement and the other Loan     

 

   25   CHI 64213081v14   Documents for purposes of compliance with Articles III, V, VI (other than Section 6.10 therein)   and VII herein.     “Subsidiary Guarantor” means each Subsidiary of any Loan Party which is a party to the   Subsidiary Guaranty.   “Subsidiary Guaranty” means that certain Subsidiary Guaranty made by each Subsidiary   Guarantor party thereto in favor of the Administrative Agent, for the benefit of the Guaranteed   Parties, in form and substance acceptable to the Administrative Agent, as from time to time   amended, restated, supplemented (by joinder or otherwise) or otherwise modified, together with   each other guaranty, joinder or guaranty supplement delivered pursuant to Section 5.09 or   otherwise executed by any Subsidiary Guarantor.     “Swap Agreement” means any agreement with respect to any swap, forward, future or   derivative transaction or option or similar agreement involving, or settled by reference to, one or   more rates, currencies, commodities, equity or debt instruments or securities, or economic,   financial or pricing indices or measures of economic, financial or pricing risk or value or any   similar transaction or any combination of these transactions; provided that no phantom stock or   similar plan providing for payments only on account of services provided by current or former   directors, officers, employees or consultants of the Borrowers or the Subsidiaries shall be a Swap   Agreement.   “Swap Obligations” of a Person means any and all obligations of such Person owing to a   Product Provider, whether absolute or contingent and howsoever and whensoever created,   arising, evidenced or acquired (including all renewals, extensions and modifications thereof and   substitutions therefor), under (a) any and all Swap Agreements, and (b) any and all cancellations,   buy backs, reversals, terminations or assignments of any Swap Agreement transaction; provided,   that Swap Obligations shall not include Excluded Swap Obligations.    “Swingline Borrower” has the meaning assigned to such term in Section 2.05(b).   “Swingline Borrowing” means a Borrowing comprised of a Swingline Loan.   “Swingline Exposure” means, at any time, the Equivalent Amount in U.S. Dollars of the   aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline   Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline   Exposure at such time.   “Swingline Lender” means JPMorgan, in its capacity as lender of Swingline Loans   hereunder, and its successors and assigns in such capacity.   “Swingline Loan” means a Loan made pursuant to Section 2.05.   “SWM Brazil” means Schweitzer-Mauduit do Brasil, S.A.   “SWM Luxembourg” has the meaning assigned to such term in the Introduction.   “SWM Philippines” has the meaning assigned to such term in the Recitals.     

 

   26   CHI 64213081v14   “Tangible Net Worth” means, as of any date for Parent and its Subsidiaries on a   consolidated basis, the sum of (a) the par value (or value stated on the books of Parent) of the   capital stock of all classes of Parent, plus (b) the additional paid-in capital of Parent, plus (c) the   amount of the surplus and retained earnings whether capital or earned, of Parent, all determined   on a consolidated basis in accordance with GAAP, excluding, however, (i) the value of any   redeemable preferred stock or similar capital stock of Parent, and (ii) accumulated other   comprehensive income, minus (d) the absolute value of treasury stocks, minus (e) the sum of the   value indicated on Parent’s balance sheet of the following items:  patents, trademarks,   copyrights, deferred charges (excluding deferred taxes), deferred credits (excluding deferred   revenues), goodwill and other intangible assets.   “Target” means the Person, or business or substantially all of the assets of a Person,   proposed to be acquired pursuant to a Permitted Acquisition.   “TARGET Day” means any day on which the Trans-European Automated Real-time   Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system   ceases to be operative, such other payment system (if any) determined by the Administrative   Agent to be a suitable replacement) is open for the settlement of payments in Euro.   “Taxes” means any present or future taxes, levies, imposts, duties, deductions,   withholdings, assessments, fees or other charges imposed by any Governmental Authority,   including any interest, additions to tax or penalties applicable thereto.   “Term Loan Facility” has the meaning assigned to such term in Section 2.09(d).   “Total Debt” means, at any date, all Indebtedness of Parent and its Subsidiaries at such   date, on a consolidated basis, calculated in accordance with GAAP.   “Transactions” means the execution, delivery and performance by the Loan Parties of the   Loan Documents, the borrowing of Loans, the use of the proceeds thereof and the issuance of   Letters of Credit hereunder.   “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of   interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to   the Adjusted LIBO Rate or the Alternate Base Rate.   “United States Dollars”, “U.S. Dollars” and “$” means lawful money of the United States   of America.   “U.S.” and “United States” mean the United States of America.   “U.S. Borrower” has the meaning assigned to such term in the Introduction.   “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)   of the Code.   “U.S. Revolving Commitment” means at any time, with respect to each Lender, the   commitment, if any, of such Lender to make U.S. Revolving Loans in U.S. Dollars and to     

 

   27   CHI 64213081v14   acquire participations in Letters of Credit issued in and Swingline Loans made in U.S. Dollars in   connection therewith up to the amount set forth on the Commitment Schedule (or in the   Assignment and Assumption pursuant to which such Lender becomes a party hereto, as   applicable) at such time hereunder, as such commitment may be reduced or increased from time   to time pursuant to (a) Section 2.09 and (b) assignments by or to such Lender pursuant to Section   9.04.  The initial aggregate amount of the Lenders’ U.S. Revolving Commitments is   $500,000,000.    “U.S. Revolving Credit Exposure” means, with respect to any U.S. Revolving Credit   Lender at any time, the sum of the outstanding principal amount of such Lender’s U.S.   Revolving Loans and its LC Exposure and Swingline Exposure with respect to Letters of Credit   issued in U.S. Dollars at such time.   “U.S. Revolving Credit Lender” means a Lender with a U.S. Revolving Commitment or,   if the U.S. Revolving Commitments have terminated or expired, a Lender with U.S. Revolving   Credit Exposure.   “U.S. Revolving Loan” means a Loan made pursuant to Section 2.01(a).   “U.S. Tax Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(D).   “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete   or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of   Subtitle E of Title IV of ERISA.   “Withholding Agent” means any Borrower and the Administrative Agent.   SECTION 1.02. Classification of Loans and Borrowings.  For purposes of   this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or   by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”).    Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or   by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving   Borrowing”).   SECTION 1.03. Terms Generally.  The definitions of terms used herein   shall apply equally to the singular and plural forms of the terms defined herein.  Whenever the   context may require, any pronoun shall include the corresponding masculine, feminine and   neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed   by the phrase “without limitation”.  The word “will” shall be construed to have the same   meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition   of or reference to any agreement, instrument or other document herein shall be construed as   referring to such agreement, instrument or other document as from time to time amended,   supplemented or otherwise modified (subject to any restrictions on such amendments,   supplements or modifications set forth herein), (b) any reference herein to any Person shall be   construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and   “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its   entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections,   clauses, sub-clauses, Exhibits and Schedules shall be construed to refer to Articles, Sections,     

 

   28   CHI 64213081v14   clauses and sub-clauses of, and Exhibits and Schedules to, this Agreement and (e) the words   “asset” and “property” shall be construed to have the same meaning and effect and to refer to any   and all tangible and intangible assets and properties, including cash, securities, accounts and   contract rights.       SECTION 1.04. Accounting Terms; GAAP.  Except as otherwise expressly   provided herein, all terms of an accounting or financial nature shall be construed in accordance   with GAAP, as in effect from time to time; provided that (a) if the Borrowers notify the   Administrative Agent that Borrowers request an amendment to any provision hereof to eliminate   the effect of any change occurring after the date hereof in GAAP or in the application thereof on   the operation of such provision (or if the Administrative Agent notifies the Borrowers that the   Required Lenders request an amendment to any provision hereof for such purpose), regardless of   whether any such notice is given before or after such change in GAAP or in the application   thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied   immediately before such change shall have become effective until such notice shall have been   withdrawn or such provision  amended in accordance herewith and (b) obligations relating to a   lease that were (or would be) classified and accounted for by Parent and its Subsidiaries as an   operating lease under GAAP as in effect on the Effective Date shall continue to be classified and   accounted for as obligations relating to an operating lease and not as a capitalized lease.    Notwithstanding the preceding sentence, the calculation of liabilities shall not include any fair   value adjustments to the carrying value of liabilities to record such liabilities at fair value   pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known   as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB   standards allowing entities to elect fair value option for financial liabilities. Accordingly, the   amount of liabilities shall be the historical cost basis, which generally is the contractual amount   owed adjusted for amortization or accretion of any premium or discount.   SECTION 1.05. Currency Equivalents.  For purposes of determining in any   currency any amount outstanding in another currency, the Equivalent Amount of such currency   on the date of any such determination shall be used.  The Administrative Agent or Parent, as   applicable, shall determine the Spot Rates as of each Computation Date to be used for calculating   the Equivalent Amounts in U.S. Dollars or Offshore Currencies, as applicable.  Such Spot Rates   shall become effective as of such Computation Date and shall be the Spot Rates employed in   converting any amounts between the applicable currencies until the next Computation Date to   occur.     ARTICLE II      THE CREDITS   SECTION 2.01. Commitments.  Subject to the terms and conditions set   forth herein, each Lender agrees, severally and not jointly, as follows:   (a) each U.S. Revolving Credit Lender agrees, severally and not jointly, to   make U.S. Revolving Loans to each Borrower, at any time and from time to time during   the Availability Period, in an aggregate principal amount at any such time outstanding   that will not result in (i) such Lender’s U.S. Revolving Credit Exposure (plus the     

 

   29   CHI 64213081v14   aggregate amount of such Lender’s EUR Revolving Credit Exposure) exceeding such   Lender’s U.S. Revolving Commitment, or (ii) the sum of the total Revolving Credit   Exposures exceeding the total Commitments.  Within the foregoing limits and subject to   the terms and conditions set forth herein, the Borrowers may borrow, prepay and   reborrow Revolving Loans; and   (b) each EUR Revolving Credit Lender agrees, severally and not jointly, to   make EUR Revolving Loans to each Borrower at any time and from time to time during   the Availability Period,  in an aggregate principal amount at any such time outstanding   that will not result in (i) such Lender’s EUR Revolving Credit Exposure exceeding such   Lender’s EUR Revolving Commitment, (ii) such Lender’s U.S. Revolving Credit   Exposure exceeding such Lender’s U.S. Revolving Commitment or (iii) the sum of the   total Revolving Credit Exposures (plus the aggregate amount of such Lender’s EUR   Revolving Credit Exposure) exceeding the total Commitments.  Within the foregoing   limits and subject to the terms and conditions set forth herein, the Borrowers may borrow,   prepay and reborrow EUR Revolving Loans.    Within the foregoing limits and subject to the terms and conditions set forth herein, the   Borrowers may borrow, prepay and reborrow Revolving Loans.   SECTION 2.02. Loans and Borrowings.     (a) Each Loan (other than a Swingline Loan) shall be made as part of a   Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably   in accordance with their respective Commitments of the applicable Class; provided that,   the Administrative Agent may allocate (or re-allocate) any U.S. Revolving Loans and/or   EUR Revolving Loans on a non-pro rata basis on any Computation Date to the extent the   failure to so allocate (or re-allocate) on a non-pro rata basis would cause the Revolving   Credit Exposure of any Lender to exceed its Commitment.  Any Swingline Loan shall be   made in accordance with the procedures set forth in Section 2.05.  The failure of any   Lender to make any Loan required to be made by it shall not relieve any other Lender of   its obligations hereunder; provided that the Commitments of the Lenders are several and   no Lender shall be responsible for any other Lender’s failure to make Loans as required.   (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised   entirely of ABR Loans or Eurodollar Loans as the Borrowers may request in accordance   herewith, provided that (i) all Loans (other than Swingline Loans) in an Offshore   Currency shall be a Eurodollar Loan and (ii) all U.S. Revolving Loans made to a Foreign   Borrower shall be a Eurodollar Loan.  Each Swingline Loan shall be an ABR Loan.  Each   Lender at its option may make any Eurodollar Loan by causing any domestic or foreign   branch or Affiliate of such Lender to make such Loan; provided that any exercise of such   option shall not affect the obligation of the applicable Borrower to repay such Loan in   accordance with the terms of this Agreement.   (c) At the time of each Eurodollar Borrowing, each Eurodollar Loan shall be   in U.S. Dollars or in an Offshore Currency, in an aggregate amount of (i) in connection   with a U.S. Revolving Loan, not less than $5,000,000 and an integral multiple of     

 

   30   CHI 64213081v14   $1,000,000 thereof, and (ii) in connection with a EUR Revolving Loan, not less than   €5,000,000 and an integral multiple of €1,000,000 thereof.  At the time that each ABR   Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is   not less than $5,000,000; provided that an ABR Revolving Borrowing may be in an   aggregate amount that is equal to the entire unused balance of the total Commitments or   that is required to finance the reimbursement of an LC Disbursement as contemplated by   Section 2.06(e).  Each Swingline Loan shall be in an amount that is an integral multiple   of $100,000 and not less than $100,000.  Borrowings of more than one Type and Class   may be outstanding at the same time; provided that there shall not at any time be more   than a total of ten (10) Eurodollar Revolving Borrowings outstanding with respect to the   EUR Revolving Loans and U.S. Revolving Loans.  The Equivalent Amount in Euros of   each Offshore Currency Loan shall be recalculated hereunder on each date on which it   shall be necessary to determine the amount of any Loan or Loans outstanding hereunder   on such date.   (d) Notwithstanding any other provision of this Agreement, the Borrowers   shall not be entitled to request, or to elect to convert or continue, any Borrowing if the   Interest Period requested with respect thereto would end after the Maturity Date.   (e) All U.S. Revolving Loans and Swingline Loans made to the Borrowers   shall be made in U.S. Dollars.  All EUR Revolving Loans made to the Borrowers shall be   made in Euros.     SECTION 2.03. Requests for Borrowings.  To request a Borrowing, the   applicable Borrower shall notify the Administrative Agent of such request in writing (a) in the   case of a Eurodollar Borrowing in U.S. Dollars, not later than 11:00 a.m., New York City time,   three (3) Business Days before the date of the proposed Borrowing, (b) in the case of a   Eurodollar Borrowing in Euros, not later than 11:00 a.m., London time, three (3) Business Days   before the date of the proposed Borrowing, or (c) in the case of an ABR Borrowing, not later   than 11:00 a.m., New York City time, on the date of the proposed Borrowing.  Each such   Borrowing Request shall be irrevocable and shall be in the form of Exhibit B or any other form   approved by the Administrative Agent and signed by the applicable Borrower.  Each such   Borrowing Request shall specify the following information in compliance with Section 2.02:   (i) whether the Loans comprising such Borrowing are U.S. Revolving   Loans or EUR Revolving Loans;   (ii) the aggregate amount of the requested Borrowing and the currency   of the requested Borrowing (which in each case shall be in accordance with   Section 2.02);   (iii) the date of the requested Borrowing, which shall be a Business   Day;   (iv) whether such Borrowing is to be an ABR Borrowing or a   Eurodollar Borrowing;     

 

   31   CHI 64213081v14   (v) in the case of a Eurodollar Borrowing, the initial Interest Period to   be applicable thereto, which shall be a period contemplated by the definition of   the term “Interest Period”; and   (vi) the location and number of such Borrower’s account to which   funds are to be disbursed, which shall comply with the requirements of Section   2.07.   If no election as to the Type of U.S. Revolving Loan by the applicable Borrower is specified,   then the requested U.S. Revolving Loan shall be an ABR Borrowing.  If no Interest Period is   specified with respect to any requested Borrowing for EUR Revolving Loans, then the   Borrowers shall be deemed to have selected an Interest Period of one (1) month’s duration.    Promptly following receipt of a Borrowing Request in accordance with this Section, the   Administrative Agent shall advise each Lender of the details thereof and of the amount of such   Lender’s Loan to be made as part of the requested Borrowing.   SECTION 2.04. [Intentionally Omitted]   SECTION 2.05. Swingline Loans.     (a) Subject to the terms and conditions set forth herein, the Swingline Lender   agrees to make Swingline Loans in U.S. Dollars to the U.S. Borrower from time to time   during the Availability Period, in an aggregate principal amount in U.S. Dollars at any   time outstanding that will not result in (i) the aggregate principal amount of outstanding   Swingline Loans exceeding $30,000,000 or (ii) the sum of the total Revolving Credit   Exposures exceeding the total Commitments; provided that the Swingline Lender shall   not be required to make a Swingline Loan to refinance an outstanding Swingline Loan.    Within the foregoing limits and subject to the terms and conditions set forth herein, the   U.S. Borrower may borrow, prepay and reborrow Swingline Loans.   (b) To request a Swingline Loan, the U.S. Borrower (the “Swingline   Borrower”) shall notify the Administrative Agent of such request in writing, not later   than 1:00 p.m., New York City time, on the day of a proposed Swingline Loan.  Each   such notice shall be irrevocable and shall specify the requested date (which shall be a   Business Day) and amount of the requested Swingline Loan.  The Administrative Agent   will promptly advise the Swingline Lender of any such notice received from such   Swingline Borrower.  The Swingline Lender shall make each Swingline Loan available to   the Swingline Borrower to the location and number of the Swingline Borrower’s account   to which funds are to be disbursed as the Swingline Borrower shall designate in its   request (or, in the case of a Swingline Loan made to finance the reimbursement of an LC   Disbursement as provided in Section 2.06(e), by remittance to the Issuing Bank) by 3:00   p.m., New York City time, on the requested date of such Swingline Loan.   (c) The Swingline Lender may by written notice given to the Administrative   Agent not later than 10:00 a.m., New York City time, on any Business Day require the   Lenders to acquire participations on such Business Day in all or a portion of the   outstanding Swingline Loans.  Such notice shall specify the aggregate amount of     

 

   32   CHI 64213081v14   Swingline Loans in which Lenders will participate.  Promptly upon receipt of such   notice, the Administrative Agent will give notice thereof to each  Lender, specifying in   such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each   Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided   above, to pay to the Administrative Agent, for the account of the Swingline Lender, such   Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender   acknowledges and agrees that its obligation to acquire participations in Swingline Loans   pursuant to this Section 2.05(c) is absolute and unconditional and shall not be affected by   any circumstance whatsoever, including the occurrence and continuance of a Default or   reduction or termination of the Commitments, and that each such payment shall be made   without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall   comply with its obligation under this clause (c) by wire transfer of immediately available   funds, in the same manner as provided in Section 2.07 with respect to Loans made by   such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations   of the Lenders), and the Administrative Agent shall promptly pay to the Swingline   Lender the amounts so received by it from the Lenders.  The Administrative Agent shall   notify the Swingline Borrower of any participations in any Swingline Loan acquired   pursuant to this Section 2.05(c), and thereafter payments in respect of such Swingline   Loan shall be made to the Administrative Agent and not to the Swingline Lender.  Any   amounts received by the Swingline Lender from the Swingline Borrower (or other party   on behalf of the Swingline Borrower) in respect of a Swingline Loan, after receipt by the   Swingline Lender of the proceeds of a sale of participations therein, shall be promptly   remitted to the Administrative Agent; any such amounts received by the Administrative   Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall   have made their payments pursuant to this Section 2.05(c) and to the Swingline Lender,   as their interests may appear; provided that any such payment so remitted shall be repaid   to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent   such payment is required to be refunded to the Swingline Borrower for any reason.  The   purchase of participations in a Swingline Loan pursuant to this Section 2.05(c) shall not   relieve the Borrowers of any default in the payment thereof.   SECTION 2.06. Letters of Credit.     (a) Subject to the terms and conditions set forth herein, any Borrower may   request the issuance of Letters of Credit, in U.S. Dollars or any Offshore Currency, for   the account of such Borrower (or for the joint account of U.S. Borrower, SWM   Luxembourg and/or a Subsidiary designated by either such Borrower), in a form   reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and   from time to time during the Availability Period.  In the event of any inconsistency   between the terms and conditions of this Agreement and the terms and conditions of any   form of letter of credit application or other agreement submitted by the Borrowers to, or   entered into by the Borrowers with, the Issuing Bank relating to any Letter of Credit, the   terms and conditions of this Agreement shall control.  Letters of Credit issued, amended,   renewed or extended hereunder at the request of the applicable Borrower shall be issued   in U.S. Dollars or Euros, as requested by such Borrower, and shall constitute utilization   of the U.S. Revolving Commitments and/or EUR Revolving Commitments, as applicable.       

 

   33   CHI 64213081v14   (b) To request the issuance of a Letter of Credit (or the amendment, renewal   or extension of an outstanding Letter of Credit), the Borrower requesting such Letter of   Credit (or amendment, renewal or extension of an outstanding Letter of Credit) (the “LC   Borrower”) shall hand deliver or telecopy (or transmit by electronic communication, if   arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank   and the Administrative Agent (reasonably in advance of the requested date of issuance,   amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit,   or identifying the Letter of Credit to be amended, renewed or extended, and specifying   the date of issuance, amendment, renewal or extension (which shall be a Business Day),   the date on which such Letter of Credit is to expire (which shall comply with clause (c) of   this Section), the amount of such Letter of Credit and whether such amount will be in   U.S. Dollars or Euros, the name and address of the beneficiary thereof and such other   information as shall be necessary to prepare, amend, renew or extend such Letter of   Credit.  If requested by the Issuing Bank, the LC Borrower also shall submit a letter of   credit application on the Issuing Bank’s standard form in connection with any request for   a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only   if (and upon issuance, amendment, renewal or extension of each Letter of Credit, the   Borrower shall be deemed to represent and warrant that), after giving effect to such   issuance, amendment, renewal or extension (i) the total U.S. Revolving Credit Exposure   shall not exceed total U.S. Revolving Commitments, (ii) the U.S Revolving Credit   Exposure of any Lender (plus such Lender’s EUR Revolving Credit Exposure) shall not   exceed such Lender’s U.S. Revolving Commitment, (iii) the total EUR Revolving Credit   Exposure shall not exceed total EUR Revolving Commitments, (iv) the EUR Revolving   Credit Exposure of any Lender shall not exceed such Lender’s EUR Revolving   Commitment, (v) the total LC Exposure shall not exceed $20,000,000, (vi) the sum of the   total Revolving Credit Exposures shall not exceed the total Commitments and (vii) the   Revolving Credit Exposure of any Lender shall not exceed such Lender’s Commitment.   (c) Each Letter of Credit shall expire at or prior to the close of business on the   earlier of (i) the date one (1) year after the date of the issuance of such Letter of Credit   (or, in the case of any renewal or extension thereof, one (1) year after such renewal or   extension), and (ii) the date that is five (5) Business Days prior to the Maturity Date.     (d) By the issuance of a Letter of Credit (or an amendment to a Letter of   Credit increasing the amount thereof) and without any further action on the part of the   Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each   Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit   equal to such Lender’s Applicable Percentage of the aggregate amount available to be   drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing,   each Lender hereby absolutely and unconditionally agrees to pay to the Administrative   Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage of each   LC Disbursement made by the Issuing Bank and not reimbursed by the LC Borrower on   the date due as provided in clause (e) of this Section, or of any reimbursement payment   required to be refunded to the LC Borrower for any reason.  Each Lender acknowledges   and agrees that its obligation to acquire participations pursuant to this clause (d) in   respect of Letters of Credit is absolute and unconditional and shall not be affected by any   circumstance whatsoever, including any amendment, renewal or extension of any Letter     

 

   34   CHI 64213081v14   of Credit, the occurrence and continuance of a Default or reduction or termination of the   Commitments, and that each such payment shall be made without any offset, abatement,   withholding or reduction whatsoever.   (e) If the Issuing Bank shall make any LC Disbursement in respect of a Letter   of Credit, the LC Borrower shall reimburse such LC Disbursement by paying to the   Administrative Agent an amount equal to such LC Disbursement in U.S. Dollars or   Euros, as applicable, based on the currency of such LC Disbursement, not later than   12:00 noon, New York City time (or London time in the case of a LC Disbursement in   Euros), on the date that such LC Disbursement is made, if the LC Borrower shall have   received notice of such LC Disbursement prior to 10:00 a.m., New York City time (or   London time in the case of a LC Disbursement in Euros), on such date, or, if such notice   has not been received by the LC Borrower prior to such time on such date, then not later   than 12:00 noon, New York City time (or London time in the case of a LC Disbursement   in Euros), on (i) the Business Day that the LC Borrower receives such notice, if such   notice is received prior to 10:00 a.m., New York City time (or London time in the case of   a LC Disbursement in Euros), on the day of receipt, or (ii) the Business Day immediately   following the day that the LC Borrower receives such notice, if such notice is not   received prior to such time on the day of receipt; provided that the LC Borrower may,   subject to the conditions to borrowing set forth herein, request in accordance with Section   2.03 or 2.05 that such payment be financed with an ABR Revolving Borrowing or a   Swingline Loan (or if such LC Disbursement was made in an Offshore Currency, as a   Eurodollar Loan with an Interest Period of one month) in an equivalent amount and, to   the extent so financed, the LC Borrower’s obligation to make such payment shall be   discharged and replaced by the resulting ABR Revolving Borrowing, Swingline Loan or   Eurodollar Loan, as applicable.  If the LC Borrower fails to make such payment when   due, the Administrative Agent shall notify each Lender of the applicable LC   Disbursement, the payment then due from the LC Borrower in respect thereof and such   Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each   Lender shall pay to the Administrative Agent its Applicable Percentage of the payment   then due from the LC Borrower, in the same manner as provided in Section 2.07 with   respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to   the payment obligations of the Lenders), and the Administrative Agent shall promptly   pay to the Issuing Bank the amounts so received by it from the Lenders.  Promptly   following receipt by the Administrative Agent of any payment from the LC Borrower   pursuant to this clause (e), the Administrative Agent shall distribute such payment to the   Issuing Bank or, to the extent that Lenders have made payments pursuant to this clause   (e) to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their   interests may appear.  Any payment made by a Lender pursuant to this clause (e) to   reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR   Revolving Loans, Eurodollar Loans or a Swingline Loan as contemplated above) shall   not constitute a Loan and shall not relieve the LC Borrower of its obligation to reimburse   such LC Disbursement.   (f) The LC Borrower’s obligation to reimburse LC Disbursements as   provided in clause (e) of this Section shall be absolute, unconditional and irrevocable,   and shall be performed strictly in accordance with the terms of this Agreement under any     

 

   35   CHI 64213081v14   and all circumstances whatsoever and irrespective of (i) any lack of validity or   enforceability of any Letter of Credit or this Agreement, or any term or provision therein   or herein, (ii) any draft or other document presented under a Letter of Credit proving to   be forged, fraudulent or invalid in any respect or any statement therein being untrue or   inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit   against presentation of a draft or other document that does not comply with the terms of   such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not   similar to any of the foregoing, that might, but for the provisions of this Section,   constitute a legal or equitable discharge of, or provide a right of setoff against, the LC   Borrower’s obligations hereunder.  Neither the Administrative Agent, the Lenders nor the   Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by   reason of or in connection with the issuance or transfer of any Letter of Credit or any   payment or failure to make any payment thereunder (irrespective of any of the   circumstances referred to in the preceding sentence), or any error, omission, interruption,   loss or delay in transmission or delivery of any draft, notice or other communication   under or relating to any Letter of Credit (including any document required to make a   drawing thereunder), any error in interpretation of technical terms or any consequence   arising from causes beyond the control of the Issuing Bank; provided that the foregoing   shall not be construed to excuse the Issuing Bank from liability to the LC Borrower to the   extent of any direct damages (as opposed to consequential damages, claims in respect of   which are hereby waived by the LC Borrower to the extent permitted by applicable law)   suffered by the LC Borrower that are caused by the Issuing Bank’s failure to exercise   care when determining whether drafts and other documents presented under a Letter of   Credit comply with the terms thereof.  The parties hereto expressly agree that, in the   absence of gross negligence or willful misconduct on the part of the Issuing Bank (as   finally determined by a court of competent jurisdiction), the Issuing Bank shall be   deemed to have exercised care in each such determination.  In furtherance of the   foregoing and without limiting the generality thereof, the parties hereto agree that, with   respect to documents presented which appear on their face to be in substantial   compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole   discretion, either accept and make payment upon such documents without responsibility   for further investigation, regardless of any notice or information to the contrary, or refuse   to accept and make payment upon such documents if such documents are not in strict   compliance with the terms of such Letter of Credit.   (g) The Issuing Bank shall, promptly following its receipt thereof, examine all   documents purporting to represent a demand for payment under a Letter of Credit.  The   Issuing Bank shall promptly notify the Administrative Agent and the LC Borrower by   telephone (confirmed by telecopy) of such demand for payment and whether the Issuing   Bank has made or will make an LC Disbursement thereunder; provided that any failure to   give or delay in giving such notice shall not relieve the LC Borrower of its obligation to   reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.   (h) If the Issuing Bank shall make any LC Disbursement, then, unless the LC   Borrower shall reimburse such LC Disbursement in full on the date such LC   Disbursement is made, the unpaid amount thereof shall bear interest, for each day from   and including the date such LC Disbursement is made to, but excluding the date that the     

 

   36   CHI 64213081v14   LC Borrower reimburses such LC Disbursement, at the rate per annum then applicable to   ABR Revolving Loans; provided that, if the LC Borrower fails to reimburse such LC   Disbursement when due pursuant to clause (e) of this Section, then (x) Section 2.13(d)   shall apply and (y) if any LC Disbursement in an Offshore Currency for which the   applicable Lenders have purchased and funded participation interests as provided in   Section 2.06(d) above remains outstanding for more than a period of two (2) weeks after   the date upon which the funding of such participations was required as set forth above,   such LC Disbursement shall automatically accrue interest as a Eurodollar Loan with an   Interest Period of one month immediately upon the two week anniversary of the required   participation funding date.  Interest accrued pursuant to this clause (h) shall be for the   account of the Issuing Bank, except that interest accrued on and after the date of payment   by any Lender pursuant to clause (e) of this Section to reimburse the Issuing Bank shall   be for the account of such Lender to the extent of such payment.   (i) The Issuing Bank may be replaced at any time by written agreement   among the Borrowers, the Administrative Agent, the replaced Issuing Bank and the   successor Issuing Bank.  The Administrative Agent shall notify the Lenders of any such   replacement of the Issuing Bank.  At the time any such replacement shall become   effective, the LC Borrower shall pay all unpaid fees accrued for the account of the   replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of   any such replacement, (i) the successor Issuing Bank shall have all the rights and   obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to   be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed   to refer to such successor or to any previous Issuing Bank, or to such successor and all   previous Issuing Banks, as the context shall require.  After the replacement of an Issuing   Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue   to have all of the rights and obligations of an Issuing Bank under this Agreement with   respect to Letters of Credit issued by it prior to such replacement, but shall not be   required to issue additional Letters of Credit.   (j) If any Event of Default shall occur and be continuing, on the Business Day   that the LC Borrower receives notice from the Administrative Agent or the Required   Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure   representing at least a majority of the total LC Exposure) demanding the deposit of cash   collateral pursuant to this clause (j), the LC Borrower shall deposit in an account with the   Administrative Agent, in the name of the Administrative Agent and for the benefit of the   Lenders (the “LC Collateral Account”), an amount in cash in the applicable currency   equal to 103% of the LC Exposure as of such date plus any accrued and unpaid interest   thereon; provided that the obligation to deposit such cash collateral shall become   effective immediately, and such deposit shall become immediately due and payable,   without demand or other notice of any kind, upon the occurrence of any Event of Default   with respect to any Borrower described in clause (h) or (i) of Article VII.  Such deposit   shall be held by the Administrative Agent as collateral for the payment and performance   of the Obligations of the Borrowers under this Agreement.  The Administrative Agent   shall have exclusive dominion and control, including the exclusive right of withdrawal,   over such account and the Borrowers hereby grant the Administrative Agent a security   interest in the LC Collateral Account.  Other than any interest earned on the investment     

 

   37   CHI 64213081v14   of such deposits, which investments shall be made at the option and sole discretion of the   Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not   bear interest.  Interest or profits, if any, on such investments shall accumulate in such   account.  Moneys in such account shall be applied by the Administrative Agent to   reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed   and, to the extent not so applied, shall be held for the satisfaction of the reimbursement   obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the   Loans has been accelerated (but subject to the consent of Lenders with LC Exposure   representing at least a majority of the total LC Exposure), be applied to satisfy other   Obligations of the Borrowers under this Agreement.  If the LC Borrower is required to   provide an amount of cash collateral hereunder as a result of the occurrence of an Event   of Default, such amount (to the extent not applied as aforesaid) shall be returned to the   LC Borrower within three (3) Business Days after all Events of Default have been cured   or waived.   SECTION 2.07. Funding of Borrowings.     (a) Each Lender shall make each Loan to be made by it hereunder on the   proposed date thereof by wire transfer of immediately available funds by 12:00 noon,   New York City time (or, in the case of a Eurodollar Borrowing in Euros, London time),   to the account of the Administrative Agent most recently designated by it for such   purpose by notice to the Lenders; provided that Swingline Loans shall be made as   provided in Section 2.05.  The Administrative Agent will make such Loans available to   the Borrowers to an account designated by the Borrowers in the applicable Borrowing   Request; provided that Loans made to finance the reimbursement of an LC Disbursement   as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the   Issuing Bank.   (b) Unless the Administrative Agent shall have received notice from a Lender   prior to the proposed date of any Borrowing that such Lender will not make available to   the Administrative Agent such Lender’s share of such Borrowing, the Administrative   Agent may assume that such Lender has made such share available on such date in   accordance with clause (a) of this Section and may, in reliance upon such assumption,   make available to the applicable Borrower a corresponding amount.  In such event, if a   Lender has not in fact made its share of the applicable Borrowing available to the   Administrative Agent, then the applicable Lender and the applicable Borrower severally   agree to pay to the Administrative Agent forthwith on demand such corresponding   amount, with interest thereon, for each day from and including the date such amount is   made available to such Borrower to, but excluding, the date of payment to the   Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds   Effective Rate and a rate determined by the Administrative Agent in accordance with   banking industry rules on interbank compensation or (ii) in the case of the Borrowers, the   interest rate applicable to ABR Loans.  If such Lender pays such amount to the   Administrative Agent, then such amount shall constitute such Lender’s Loan included in   such Borrowing.   SECTION 2.08. Interest Elections.       

 

   38   CHI 64213081v14   (a) Each Borrowing initially shall be of the Type specified in the applicable   Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial   Interest Period as specified in such Borrowing Request.  Thereafter, subject to the   requirements of Section 2.02, the Borrowers may elect to convert such Borrowing to a   different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing,   may elect Interest Periods therefor, all as provided in this Section.  The Borrowers may   elect different options with respect to different portions of the affected Borrowing, in   which case each such portion shall be allocated ratably among the Lenders holding the   Loans comprising such Borrowing, and the Loans comprising each such portion shall be   considered a separate Borrowing.  This Section shall not apply to Swingline Borrowings,   which may not be converted or continued.   (b) To make an election pursuant to this Section, the applicable Borrower   shall notify the Administrative Agent of such election in writing by the time that a   Borrowing Request would be required under Section 2.03 if such Borrower were   requesting a Borrowing of the Type resulting from such election to be made on the   effective date of such election.  Each such Interest Election Request shall be irrevocable   and shall be in a form approved by the Administrative Agent and signed by the applicable   Borrower.   (c) Each telephonic and written Interest Election Request shall specify the   following information in compliance with Section 2.02:   (i) the Borrowing to which such Interest Election Request applies and,   if different options are being elected with respect to different portions thereof, the   portions thereof to be allocated to each resulting Borrowing (in which case the   information to be specified pursuant to clauses (iii) and (iv) below shall be   specified for each resulting Borrowing);   (ii) the effective date of the election made pursuant to such Interest   Election Request, which shall be a Business Day;   (iii) whether the resulting Borrowing is to be an ABR Borrowing or a   Eurodollar Borrowing; and   (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest   Period to be applicable thereto after giving effect to such election, which shall be   a period contemplated by the definition of the term “Interest Period”.   If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an   Interest Period, then the applicable Borrower shall be deemed to have selected an Interest Period   of one month’s duration.   (d) Promptly following receipt of an Interest Election Request, the   Administrative Agent shall advise each applicable Lender of the details thereof and of   such Lender’s portion of each resulting Borrowing.     

 

   39   CHI 64213081v14   (e) If the Borrowers fail to deliver a timely Interest Election Request with   respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period   applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of   such Interest Period such Borrowing shall be converted to an ABR Borrowing; provided,   however, if such Borrowing is denominated in an Offshore Currency, such Borrowing   shall instead be continued as a Eurodollar Borrowing of the same Class with an Interest   Period of one (1) month.  Notwithstanding any contrary provision hereof, if an Event of   Default has occurred and is continuing and the Administrative Agent, at the request of the   Required Lenders, so notifies the Borrowers, then, so long as an Event of Default is   continuing (i) no outstanding Borrowing may be converted to or continued as a   Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be   converted to an ABR Borrowing at the end of the Interest Period applicable thereto;   provided, however, if such Borrowing is denominated in an Offshore Currency, such   Borrowing shall instead be continued as a Eurodollar Borrowing with an Interest Period   of one (1) month.   SECTION 2.09. Termination, Reduction and Increase of Commitments;   Removal of Borrowers.     (a) Unless previously terminated, all Commitments shall terminate on the   Maturity Date.   (b) The Borrowers may at any time terminate the Commitments upon (i) the   payment in full in cash of all outstanding Loans, together with accrued and unpaid   interest thereon, (ii) the cancellation and return of all outstanding Letters of Credit (or   alternatively, with respect to each such Letter of Credit, the furnishing to the Issuing   Bank with a cash deposit (or at the discretion of the Issuing Bank a back up standby letter   of credit satisfactory to the Issuing Bank) equal to 103% of the LC Exposure as of such   date), (iii) the payment in full in cash of the accrued and unpaid fees and (iv) the payment   in full in cash of all reimbursable expenses and all other Obligations in cash together with   accrued and unpaid interest thereon.  The Borrowers may from time to time reduce the   Commitments of any Class; provided that (A) each reduction of the Commitments shall   be in an amount that is an integral multiple of the Equivalent Amount of $1,000,000 and   not less than the Equivalent Amount of $5,000,000, and (B) the Borrowers shall not   terminate or reduce the Commitments of any Class if, after giving effect to any   concurrent prepayment of the Loans of such Class in accordance with Section 2.11, the   sum of the Revolving Credit Exposures for such Class would exceed the total   Commitments of such Class.   (c) The Borrowers shall notify the Administrative Agent of any election to   terminate or reduce the Commitments under clause (b) of this Section at least three (3)   Business Days prior to the effective date of such termination or reduction, specifying   such election and the effective date thereof.  Promptly following receipt of any notice, the   Administrative Agent shall advise the Lenders of the contents thereof.  Each notice   delivered by the Borrowers pursuant to this Section shall be irrevocable; provided that a   notice of termination of the Commitments delivered by the Borrowers may state that such   notice is conditioned upon the effectiveness of other credit facilities, in which case such     

 

   40   CHI 64213081v14   notice may be revoked by the Borrowers (by notice to the Administrative Agent on or   prior to the specified effective date) if such condition is not satisfied.  Any termination or   reduction of the Commitments shall be permanent.  Each reduction of the Commitments   shall be made ratably among the Lenders in accordance with their respective   Commitments.   (d) The Borrowers shall have the right (exercisable at any time and from time   to time) to increase the Commitments by obtaining additional Commitments  in U.S.   Dollars or Euros, by up to an aggregate amount equal to the Equivalent Amount of   $200,000,000 (resulting in a maximum aggregate Commitment of the Equivalent Amount   of $700,000,000), in the form of a Revolving Loan or a term loan, either from one or   more of the Lenders or another lending institution acceptable to Administrative Agent;   provided that (i) any such request for an increase shall be in a minimum amount equal to   the Equivalent Amount of $25,000,000, (ii) any such new Lender assumes all of the   rights and obligations of a “Lender” hereunder, (iii) the procedures described in Sections   2.09(d), 2.09(e) and 2.09(f) have been satisfied, (iv) no Lender shall be required or   obligated to increase its commitment and (v) in the case of Loans to be made under a new   term loan facility (a “Term Loan Facility”), (A) this Agreement shall be amended, in   form and substance acceptable to the Administrative Agent, to reflect the addition of such   Term Loan Facility, (B) the maturity date applicable to all Loans made under such Term   Loan Facility shall be on or after the Maturity Date (but may have amortization prior to   the Maturity Date), (C) the interest margin for Loans made under such Term Loan   Facility may be priced differently than the Revolving Loans and/or any other loans made   under the Term Loan Facility, (D) the Loans made under such Term Loan Facility shall   rank equally in right of payment with all other remaining Loans, including, without   limitation, pursuant to Section 2.18 of this Agreement (unless otherwise agreed by the   Lenders making Loans under the Term Loan Facility), and (E) any other terms and   provisions applicable to such Term Loan Facility (including, without limitation, the terms   and provisions relating to repayments and prepayments with respect to Loans made under   such Term Loan Facility) shall be substantially the same as (and in any event not more   favorable than) the Revolving Loans and any other term loans issued hereunder prior to   such date and shall otherwise be in form and substance satisfactory to the Administrative   Agent, the Borrowers, and the Lenders participating in such Term Loan Facility;   provided that, the terms and conditions applicable to any such Term Loan Facility   maturing after the Maturity Date may provide for material additional or different   financial or other covenants or prepayment requirements applicable only during periods   after the Maturity Date.     (e) Any amendment hereto for such an increase or addition pursuant to   Sections 2.09(d), (e) and (f) shall be in form and substance satisfactory to the   Administrative Agent and shall only require the written signatures of the Administrative   Agent, the Borrowers and the Lender(s) being added or increasing their Commitment. As   a condition precedent to each such increase, Borrowers shall deliver to the Administrative   Agent such legal opinions and other documents reasonably requested by Administrative   Agent, including, without limitation, a certificate (in sufficient copies for each Lender)   signed by an authorized officer of Borrowers (i) certifying and attaching the resolutions   adopted by each Loan Party approving or consenting to such increase and (ii) certifying     

 

   41   CHI 64213081v14   that, before and after giving effect to such increase, (A) the representations and   warranties contained in Article III and the other Loan Documents are true and correct,   except to the extent that such representations and warranties specifically refer to an   earlier date, in which case they are true and correct as of such earlier date, (B) no Default   or Event of Default has occurred and is continuing and each of the other conditions set   forth in Section 4.02 have been satisfied and (C) Borrowers are in compliance on a pro   forma basis (assuming such increase was made on the last day of the applicable period)   with the covenants set forth in Section 6.10, recomputed for the most recent quarter for   which financial statements have been delivered pursuant to calculations and detail   acceptable to Administrative Agent.   (f) Within a reasonable time after the effective date of any increase, the   Administrative Agent shall, and is hereby authorized and directed to, revise the   Commitment Schedule to reflect such increase and shall distribute such revised   Commitment Schedule to each of the Lenders and the Borrowers, whereupon such   revised Commitment Schedule shall replace the old Commitment Schedule and become   part of this Agreement. On the Business Day following any such increase, all outstanding   Loans and other outstanding advances shall be reallocated among the Lenders (including   any newly added Lenders) in accordance with the Lenders’ respective revised Applicable   Percentages. Eurodollar Borrowings shall not be reallocated among the Lenders prior to   the expiration of the applicable Interest Period in effect at the time of any such increase.   (g) Parent may, upon not less than twenty (20) Business Days’ notice from   Parent to the Administrative Agent (or such shorter period as may be agreed by the   Administrative Agent in its sole discretion), terminate the status of any Borrower (other   than Parent) as a Borrower, if and only if (i) there are no outstanding Loans or LC   Exposure outstanding with respect to such Borrower or other amounts payable by such   Borrower on account of any Loans made to it or Letters of Credit issued for its account as   of the effective date of such termination (unless such Loans and other Obligations have   been assumed by another Borrower and certified as such to the Administrative Agent)   and (ii) such Borrower shall become a Subsidiary Guarantor if it is required to do so   pursuant to Section 5.09(a) prior to or contemporaneously with the effective date of such   termination.  The Administrative Agent shall promptly notify the Lenders of any such   termination of such Borrower’s status as a borrower.   SECTION 2.10. Repayment and Amortization of Loans; Evidence of Debt.   (a) Each Borrower hereby unconditionally promises to pay (i) to the   Administrative Agent for the account of each applicable Lender the then unpaid principal   amount of each of its U.S. Revolving Loans in U.S. Dollars and EUR Revolving Loans in   Euros on the Maturity Date and (ii) to the Swingline Lender the then unpaid principal   amount of each Swingline Loan on the earlier of (A) the Maturity Date or (B) the first   date after such Swingline Loan is made that is the 15th or last day of a calendar month   and is at least two (2) Business Days after such Swingline Loan is made; provided that on   each date that a Revolving Borrowing is made, the U.S. Borrower shall repay all   Swingline Loans then outstanding.         

 

   42   CHI 64213081v14   (b) Each Lender shall maintain in accordance with its usual practice an   account or accounts evidencing the indebtedness of the Borrowers to such Lender   resulting from each Loan made by such Lender, including the amounts of principal and   interest payable and paid to such Lender from time to time hereunder.   (c) The Administrative Agent shall maintain accounts in which it shall record   (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest   Period applicable thereto, (ii) the amount of any principal or interest due and payable or   to become due and payable from the Borrowers to each Lender hereunder and (iii) the   amount of any sum received by the Administrative Agent hereunder for the account of   the Lenders and each Lender’s share thereof.   (d) The entries made in the accounts maintained pursuant to clauses (b) or (c)   of this Section shall be prima facie evidence of the existence and amounts of the   Obligations recorded therein; provided that the failure of any Lender or the   Administrative Agent to maintain such accounts or any error therein shall not in any   manner affect the obligation of the Borrowers to repay the Loans in accordance with the   terms of this Agreement.   (e) Any Lender may request that Loans made by it be evidenced by a   promissory note.  In such event, the Borrowers shall prepare, execute and deliver to such   Lender a promissory note payable to the order of such Lender (or, if requested by such   Lender, to such Lender and its registered assigns) and in a form approved by the   Administrative Agent.  Thereafter, the Loans evidenced by such promissory note and   interest thereon shall at all times (including after assignment pursuant to Section 9.04) be   represented by one or more promissory notes in such form payable to the order of the   payee named therein (or, if such promissory note is a registered note, to such payee and   its registered assigns).   (f) If on any Computation Date, the aggregate Revolving Credit Exposure of   the Lenders for any Class exceeds the aggregate Commitments of the Lenders for such   Class, the applicable Borrower shall immediately prepay the Revolving Loans in the   amount of such excess.  To the extent that, after any such prepayment of all Revolving   Loans of any Class an excess of the Revolving Credit Exposure of such Class over the   aggregate Commitments of such Class still exists, the Borrowers shall promptly cash   collateralize the Letters of Credit in the manner described in Section 2.06(j) in an amount   sufficient to eliminate such excess.  Any such payment shall be applied, first, to the   Swingline Loans, second, to the Revolving Credit Loans for such Class and, third, as cash   collateral for LC Exposure for such Class.   SECTION 2.11. Prepayment of Loans.     (a) The Borrowers shall have the right at any time and from time to time to   prepay any Borrowing in whole or in part, subject to Section 2.16 and prior notice in   accordance with clause (b) of this Section.     

 

   43   CHI 64213081v14   (b) The Borrowers shall notify the Administrative Agent (and, in the case of   prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by   telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar   Revolving Borrowing in U.S. Dollars, not later than 11:00 a.m., New York City time,   three (3) Business Days before the date of prepayment, (ii) in the case of prepayment of a   Eurodollar Revolving Borrowing in Euros, not later than 11:00 a.m., London time, three   (3) Business Days before the date of prepayment, (iii) in the case of prepayment of an   ABR Revolving Borrowing, not later than 11:00 a.m., New York City time, one (1)   Business Day before the date of prepayment, or (iv) in the case of prepayment of a   Swingline Loan, not later than 12:00 noon, New York City time, on the date of   prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date   and the principal amount of each Borrowing or portion thereof to be prepaid; provided   that, if a notice of prepayment is given in connection with a conditional notice of   termination of the Commitments as contemplated by Section 2.09, then such notice of   prepayment may be revoked if such notice of termination is revoked in accordance with   Section 2.09.  Promptly following receipt of any such notice relating to a Revolving   Borrowing, the Administrative Agent shall advise the applicable Lenders of the contents   thereof.  Each partial prepayment of any Revolving Borrowing shall be in an amount that   would be permitted in the case of an advance of a Revolving Borrowing of the same Type   as provided in Section 2.02.  Each prepayment of a Revolving Borrowing of any Class   shall be applied ratably to the Revolving Loans of such Class included in the prepaid   Borrowing.  Prepayments shall be accompanied by accrued interest to the extent required   by Section 2.13.   SECTION 2.12. Fees.     (a) The U.S. Borrower agrees to pay to the Administrative Agent for the   account of each Lender a commitment fee, which shall accrue at the Applicable Rate on   an amount equal to (i) the Commitment (as increased or reduced in accordance with the   terms of this Agreement), minus (ii) the average daily amount of the Equivalent Amount   in Dollars of the aggregate Revolving Credit Exposure during the period from and   including the date hereof to, but excluding, the date on which the Lenders’ Commitments   terminate.  Accrued commitment fees shall be payable in arrears on the last day of   March, June, September and December of each year and on the date on which the   Commitments terminate, commencing on the first such date to occur after the date hereof.    All commitment fees shall be computed on the basis of a year of 360 days and shall be   payable for the actual number of days elapsed (including the first day but excluding the   last day). Such commitment fee shall be allocated among Lenders in an amount   determined by the unused portion of that Lender’s Commitment, expressed as a   percentage of the unused portion of the Commitments of all Lenders and multiplied by   the amount of such commitment fee as calculated pursuant to the first sentence of this   clause (a).   (b) The applicable Borrower agrees to pay (i) to the Administrative Agent for   the account of each Lender for each Class a participation fee with respect to its   participations in Letters of Credit for such Class, which shall accrue per annum at the   same Applicable Rate used to determine the interest rate applicable to Eurodollar     

 

   44   CHI 64213081v14   Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding   any portion thereof attributable to unreimbursed LC Disbursements) during the period   from and including the Effective Date to, but excluding, the later of the date on which   such Lender’s Commitment terminates or the date on which such Lender ceases to have   any LC Exposure and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate   of 0.125% per annum on the average daily amount of the LC Exposure (excluding any   portion thereof attributable to unreimbursed LC Disbursements) during the period from   and including the Effective Date to, but excluding, the later of the date of termination of   the Commitments or the date on which there ceases to be any LC Exposure, as well as the   Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or   extension of any Letter of Credit or processing of drawings thereunder.  Letter of Credit   participation fees and fronting fees accrued through and including the last day of March,   June, September and December of each year shall be payable in arrears on the third   Business Day following such last day, commencing on the first such date to occur after   the Effective Date; provided that all such fees shall be payable on the date on which the   Commitments terminate and any such fees accruing after the date on which the   Commitments terminate shall be payable on demand.  Any other fees payable to the   Issuing Bank pursuant to this clause (b) shall be payable within ten (10) days after   demand.  All Letter of Credit participation fees and fronting fees shall be computed on   the basis of a year of 360 days and shall be payable for the actual number of days elapsed   (including the first day but excluding the last day).   (c) The Borrowers agree to pay to the Administrative Agent, for its own   account, fees payable in the amounts and at the times separately agreed upon between the   Borrowers and the Administrative Agent.   (d) All fees payable hereunder shall be paid on the dates due, in immediately   available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees   payable to it) for distribution, in the case of commitment fees and participation fees, to   the Lenders in the currency specified in Section 2.18(g).  Fees paid shall not be   refundable under any circumstances.   SECTION 2.13. Interest.     (a) The Loans comprising each ABR Borrowing (excluding each Swingline   Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.   (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the   Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the   Applicable Rate.   (c) The Loans comprising each Swingline Loan shall bear interest at a rate per   annum as may be agreed to in writing between U.S. Borrower and Swingline Lender.   (d) Notwithstanding the foregoing, if any principal of or interest on any Loan   or any fee or other amount payable by the Borrowers hereunder are not paid when due,   whether at stated maturity, upon acceleration or otherwise, such overdue amount shall     

 

   45   CHI 64213081v14   bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case   of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as   provided in the preceding clauses of this Section or (ii) in the case of any other amount,   2% plus the rate applicable to ABR Loans as provided in clause (a) of this Section.   (e) Accrued interest on each Loan shall be payable in arrears on each Interest   Payment Date for such Loan and upon termination of the Commitments; provided that   (i) interest accrued pursuant to clause (d) of this Section shall be payable on demand,   (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of   an ABR Revolving Loan prior to the end of the Availability Period), accrued interest on   the principal amount repaid or prepaid shall be payable on the date of such repayment or   prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the   end of the current Interest Period therefor, accrued interest on such Loan shall be payable   on the effective date of such conversion.   (f) All interest hereunder shall be computed on the basis of a year of 360   days, except that interest computed by reference to the Alternate Base Rate at times when   the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a   year of 365 days (or 366 days in a leap year), and in each case shall be payable for the   actual number of days elapsed (including the first day but excluding the last day).  The   applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined   by the Administrative Agent, and such determination shall be conclusive absent manifest   error.   SECTION 2.14. Alternate Rate of Interest.  If prior to the commencement of   any Interest Period for a Eurodollar Borrowing:   (a) the Administrative Agent determines (which determination shall be   conclusive absent manifest error) that adequate and reasonable means (including, without   limitation, by means of an Interpolated Rate) do not exist for ascertaining the Adjusted   LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or   (b) the Administrative Agent is advised by the Required Lenders that the   Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not   adequately and fairly reflect the cost to such Lenders (or Lender) of making or   maintaining their Loans (or its Loan) included in such Borrowing for such Interest   Period;   then the Administrative Agent shall give notice thereof to the Borrowers and the Lenders by   telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent   notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no   longer exist, (i) any Interest Election Request that requests the conversion of any Revolving   Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be   ineffective and (ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such   Borrowing shall be made as an ABR Borrowing; provided that if the circumstances giving rise to   such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be   permitted; provided further, if any such Borrowing is to be denominated in an Offshore     

 

   46   CHI 64213081v14   Currency, such Borrowing shall instead be made as a Eurodollar Borrowing with an Interest   Period of one month.   SECTION 2.15. Increased Costs; Illegality.     (a) If any Change in Law shall:   (i) impose, modify or deem applicable any reserve, special deposit or   similar requirement against assets of, deposits with or for the account of, or credit   extended by, any Lender (except any such reserve requirement reflected in the   LIBO Rate) or the Issuing Bank;    (ii) impose on any Lender or the Issuing Bank or the London or Euro-   zone interbank market any other condition affecting this Agreement or Eurodollar   Loans made by such Lender or any Letter of Credit or participation therein; or   (iii) subject any Recipient to any Taxes on its loans, loan principal,   letters of credit, commitments, or other obligations, or its deposits, reserves, other   liabilities or capital attributable thereto (other than (A) Indemnified Taxes and (B)   Other Connection Taxes on gross or net income, profits or revenue (including   value-added or similar Taxes));   and the result of any of the foregoing shall be to increase the cost to such Lender or such other   Recipient of making or maintaining any Eurodollar Loan (or of maintaining its obligation to   make any such Loan) or to increase the cost to such Lender, the Issuing Bank or such other   Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount   of any sum received or receivable by such Lender, the Issuing Bank or such other Recipient   hereunder (whether of principal, interest or otherwise), then the applicable Borrower will pay to   such Lender, the Issuing Bank or such other Recipient, as the case may be, such additional   amount or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as   the case may be, for such additional costs incurred or reduction suffered.   (b) If any Lender or the Issuing Bank determines that any Change in Law   regarding capital or liquidity requirements has or would have the effect of reducing the   rate of return on such Lender’s or the Issuing Bank’s capital or liquidity or on the capital   or liquidity of such Lender’s or the Issuing Bank’s holding company, if any, as a   consequence of this Agreement or the Loans made by, or participations in Letters of   Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level   below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s   holding company could have achieved but for such Change in Law (taking into   consideration such Lender’s or the Issuing Bank’s policies and the policies of such   Lender’s or the Issuing Bank’s holding company with respect to such capital adequacy   and liquidity requirements), then from time to time the applicable Borrowers will pay to   such Lender or the Issuing Bank, as the case may be, such additional amount or amounts   as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing   Bank’s holding company for any such reduction suffered.     

 

   47   CHI 64213081v14   (c) A certificate of a Lender or the Issuing Bank setting forth the amount or   amounts necessary to compensate such Lender or the Issuing Bank or its holding   company, as the case may be, as specified in clause (a) or (b) of this Section shall be   delivered to the Borrowers and shall be conclusive absent manifest error.  The applicable   Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount   shown as due on any such certificate within ten (10) days after receipt thereof.   (d) Failure or delay on the part of any Lender or the Issuing Bank to demand   compensation pursuant to this Section shall not constitute a waiver of such Lender’s or   the Issuing Bank’s right to demand such compensation; provided that the Borrowers shall   not be required to compensate a Lender or the Issuing Bank pursuant to this Section for   any increased costs or reductions incurred more than 180 days prior to the date that such   Lender or the Issuing Bank, as the case may be, notifies the Borrowers of the Change in   Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing   Bank’s intention to claim compensation therefor; provided further that, if the Change in   Law giving rise to such increased costs or reductions is retroactive, then the 180-day   period referred to above shall be extended to include the period of retroactive effect   thereof.   (e) If any Lender determines that any law has made it unlawful, or that any   Governmental Authority has asserted that it is unlawful, for any Lender to perform its   obligations hereunder or to issue, make, maintain, fund or charge interest with respect to   any Loan or Letter of Credit to any Borrower who is organized under the laws of a   jurisdiction other than the United States, a State thereof or the District of Columbia then,   on notice thereof by such Lender to the Borrowers through the Administrative Agent, and   until such notice by such Lender is revoked, any obligation of such Lender to issue,   make, maintain, fund or charge interest with respect to any such Loan or Letter of Credit   shall be suspended.  Upon receipt of such notice, the Loan Parties shall take all   reasonable actions requested by such Lender to mitigate or avoid such illegality.   SECTION 2.16. Break Funding Payments.  In the event of (a) the payment   of any principal of any Eurodollar Loan other than on the last day of an Interest Period   applicable thereto (including as a result of an Event of Default), (b) the conversion of any   Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure   to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice   delivered pursuant hereto (regardless of whether such notice may be revoked under Section   2.11(b) and is revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan   other than on the last day of the Interest Period applicable thereto as a result of a request by the   Borrowers pursuant to Section 2.19, then, in any such event, the Borrowers shall compensate   each Lender for the loss, cost and expense attributable to such event.  In the case of a Eurodollar   Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined   by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued   on the principal amount of such Loan had such event not occurred, at the LIBO Rate that would   have been applicable to such Loan, for the period from the date of such event to the last day of   the then current Interest Period therefor (or, in the case of a failure to borrow, convert or   continue, for the period that would have been the Interest Period for such Loan), over (ii) the   amount of interest which would accrue on such principal amount for such period at the interest     

 

   48   CHI 64213081v14   rate which such Lender would bid, were it to bid, at the commencement of such period, for U.S.   Dollar or Euro deposits, as applicable, of a comparable amount and period from other banks in   the eurodollar market.  A certificate of any Lender setting forth any amount or amounts that such   Lender is entitled to receive pursuant to this Section shall be delivered to the Borrowers and shall   be conclusive absent manifest error.  The Borrowers shall pay such Lender the amount shown as   due on any such certificate within ten (10) days after receipt thereof.   SECTION 2.17. Taxes.   (a) Withholding of Taxes; Gross-Up.  Each payment by any Loan Party under   any Loan Document shall be made without withholding for any Taxes, unless such   withholding is required by any law.  If any Withholding Agent determines, in its sole   discretion exercised in good faith, that it is so required to withhold Taxes, then such   Withholding Agent may so withhold and shall timely pay the full amount of withheld   Taxes to the relevant Governmental Authority in accordance with applicable law.  If such   Taxes are Indemnified Taxes, then the amount payable by such Loan Party shall be   increased as necessary so that, net of such withholding (including such withholding   applicable to additional amounts payable under this Section), the applicable Recipient   receives the amount it would have received had no such withholding been made.   (b) Payment of Other Taxes by the Borrowers.  The Borrowers shall timely   pay any Other Taxes to the relevant Governmental Authority in accordance with   applicable law.   (c) Evidence of Payments.  As soon as practicable after any payment of   Indemnified Taxes by any Loan Party to a Governmental Authority, such Loan Party   shall deliver to the Administrative Agent the original or a certified copy of a receipt   issued by such Governmental Authority evidencing such payment, a copy of the return   reporting such payment or other evidence of such payment reasonably satisfactory to the   Administrative Agent.   (d) Indemnification by the Borrowers.  The Loan Parties shall jointly and   severally indemnify each Recipient for any Indemnified Taxes that are paid or payable by   such Recipient in connection with any Loan Document (including amounts paid or   payable under this Section 2.17(d)) and any reasonable expenses arising therefrom or   with respect thereto, whether or not such Indemnified Taxes were correctly or legally   imposed or asserted by the relevant Governmental Authority.  The indemnity under this   Section 2.17(d) shall be paid within ten (10) days after the Recipient delivers to the   Borrowers a certificate stating the amount of any Indemnified Taxes so paid or payable   by such Recipient and describing the basis for the indemnification claim.  Such certificate   shall be conclusive of the amount so paid or payable absent manifest error.  Such   Recipient shall deliver a copy of such certificate to the Administrative Agent.   (e) Indemnification by the Lenders.  Each Lender shall severally indemnify   the Administrative Agent for any Taxes (but, in the case of any Indemnified Taxes, only   to the extent that any Loan Party has not already indemnified the Administrative Agent   for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do     

 

   49   CHI 64213081v14   so) attributable to such Lender that are paid or payable by the Administrative Agent in   connection with any Loan Document and any reasonable expenses arising therefrom or   with respect thereto, whether or not such Taxes were correctly or legally imposed or   asserted by the relevant Governmental Authority.  The indemnity under this Section   2.17(e) shall be paid within ten (10) days after the Administrative Agent delivers to the   applicable Lender a certificate stating the amount of Taxes so paid or payable by the   Administrative Agent.  Such certificate shall be conclusive of the amount so paid or   payable absent manifest error.   (f) Status of Lenders.     (i) Any Lender that is entitled to an exemption from, or reduction of,   any applicable withholding Tax with respect to any payments under any Loan   Document shall deliver to the Borrowers and the Administrative Agent, at the   time or times reasonably requested by the Borrowers or the Administrative Agent,   such properly completed and executed documentation reasonably requested by the   Borrowers or the Administrative Agent as will permit such payments to be made   without, or at a reduced rate of, withholding.  In addition, any Lender, if requested   by the Borrowers or the Administrative Agent, shall deliver such other   documentation prescribed by law or reasonably requested by the Borrowers or the   Administrative Agent as will enable the Borrowers or the Administrative Agent to   determine whether or not such Lender is subject to any withholding (including   backup withholding) or information reporting requirements.  Notwithstanding   anything to the contrary in the preceding two sentences, the completion, execution   and submission of such documentation (other than such documentation set forth   in Sections 2.17(f)(ii)(A) through (E) below) shall not be required if in the   Lender’s judgment such completion, execution or submission would subject such   Lender to any material unreimbursed cost or expense or would materially   prejudice the legal or commercial position of such Lender.  Upon the reasonable   request of such Borrowers or the Administrative Agent, any Lender shall update   any form or certification previously delivered pursuant to this Section 2.17(f).  If   any form or certification previously delivered pursuant to this Section 2.17   expires or becomes obsolete or inaccurate in any respect with respect to a Lender,   such Lender shall promptly (and in any event within ten (10) days after such   expiration, obsolescence or inaccuracy) notify such Borrowers and the   Administrative Agent in writing of such expiration, obsolescence or inaccuracy   and update the form or certification if it is legally eligible to do so.   (ii) Without limiting the generality of the foregoing, if a Borrower is a   U.S. Person, any Lender with respect to such Borrower shall, if it is legally   eligible to do so, deliver to such Borrower and the Administrative Agent (in such   number of copies reasonably requested by such Borrower and the Administrative   Agent) on or prior to the date on which such Lender becomes a party hereto, duly   completed and executed copies of whichever of the following is applicable:     

 

   50   CHI 64213081v14   (A) in the case of a Lender that is a U.S. Person, IRS Form W-9   certifying that such Lender is exempt from U.S. Federal backup   withholding tax;   (B) in the case of a Non-U.S. Lender claiming the benefits of   an income tax treaty to which the United States is a party (1) with respect   to payments of interest under any Loan Document, IRS Form W-8BEN   establishing an exemption from, or reduction of, U.S. Federal withholding   Tax pursuant to the “interest” article of such tax treaty and (2) with respect   to any other applicable payments under this Agreement, IRS Form W-   8BEN establishing an exemption from, or reduction of, U.S. Federal   withholding Tax pursuant to the “business profits” or “other income”   article of such tax treaty;   (C) in the case of a Non-U.S. Lender for whom payments under   this Agreement constitute income that is effectively connected with such   Lender’s conduct of a trade or business in the United States, IRS Form W-   8ECI;   (D) in the case of a Non-U.S. Lender claiming the benefits of   the exemption for portfolio interest under Section 881(c) of the Code both   (1) IRS Form W-8BEN and (2) a certificate substantially in the form of   Exhibit D (a “U.S. Tax Certificate”) to the effect that such Lender is not   (w) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (x)   a “10 percent shareholder” of the Borrower within the meaning of Section   881(c)(3)(B) of the Code, (y) a “controlled foreign corporation” described   in Section 881(c)(3)(C) of the Code and (z) conducting a trade or business   in the United States with which the relevant interest payments are   effectively connected;   (E) in the case of a Non-U.S. Lender that is not the beneficial   owner of payments made under this Agreement (including a partnership or   a participating Lender) (1) an IRS Form W-8IMY on behalf of itself and   (2) the relevant forms prescribed in sub-clauses (A), (B), (C), (D) and (F)   of this Section 2.17(f)(ii) that would be required of each such beneficial   owner or partner of such partnership if such beneficial owner or partner   were a Lender; provided, however, that if the Lender is a partnership and   one or more of its partners are claiming the exemption for portfolio   interest under Section 881(c) of the Code, such Lender may provide a U.S.   Tax Certificate on behalf of such partners; or   (F) any other form prescribed by law as a basis for claiming   exemption from, or a reduction of, U.S. Federal withholding Tax together   with such supplementary documentation necessary to enable the   Borrowers or the Administrative Agent to determine the amount of Tax (if   any) required by law to be withheld.     

 

   51   CHI 64213081v14   (iii) If a payment made to a Lender under any Loan Document would   be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender   were to fail to comply with the applicable reporting requirements of FATCA   (including those contained in Section 1471(b) or 1472(b) of the Code, as   applicable), such Lender shall deliver to the Withholding Agent, at the time or   times prescribed by law and at such time or times reasonably requested by the   Withholding Agent, such documentation prescribed by applicable law (including   as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional   documentation reasonably requested by the Withholding Agent as may be   necessary for the Withholding Agent to comply with its obligations under   FATCA, to determine that such Lender has or has not complied with such   Lender’s obligations under FATCA and, as necessary, to determine the amount to   deduct and withhold from such payment.  Solely for purposes of this Section   2.17(f)(iii), “FATCA” shall include any amendments made to FATCA after the   date of this Agreement.     (g) Treatment of Certain Refunds.  If any party determines, in its sole   discretion exercised in good faith, that it has received a refund of any Taxes as to which it   has been indemnified pursuant to this Section 2.17 (including additional amounts paid   pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to   such refund (but only to the extent of indemnity payments made under this Section with   respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses   (including any Taxes) of such indemnified party and without interest (other than any   interest paid by the relevant Governmental Authority with respect to such refund).  Such   indemnifying party, upon the request of such indemnified party, shall repay to such   indemnified party the amount paid to such indemnified party pursuant to the previous   sentence (plus any penalties, interest or other charges imposed by the relevant   Governmental Authority) in the event such indemnified party is required to repay such   refund to such Governmental Authority.  Notwithstanding anything to the contrary in this   Section 2.17(g), in no event will any indemnified party be required to pay any amount to   any indemnifying party pursuant to this Section 2.17(g) if such payment would place   such indemnified party in a less favorable position (on a net after-Tax basis) than such   indemnified party would have been in if the indemnification payments or additional   amounts giving rise to such refund had never been paid.  This Section 2.17(g) shall not be   construed to require any indemnified party to make available its Tax returns (or any other   information relating to its Taxes which it deems confidential) to the indemnifying party   or any other Person.   (h) Issuing Bank.  For purposes of Sections 2.17(e) and (f), the term “Lender”   includes any Issuing Bank.   SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of   Setoffs.     (a) The Borrowers shall make each payment required to be made by it   hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or   of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon,     

 

   52   CHI 64213081v14   New York City time or London time, as applicable, on the date when due, in immediately   available funds, without setoff or counterclaim.  Any amounts received after such time on   any date may, in the discretion of the Administrative Agent, be deemed to have been   received on the next succeeding Business Day for purposes of calculating interest   thereon.  All such payments shall be made to the Administrative Agent (i) with respect to   U.S. Revolving Loans, and all other such payments (other than as set forth in clause (ii)   below), at its offices at 10 S. Dearborn Street, Floor 07, Mail Code:  IL1-0010, Chicago,   Illinois 60603, attention Darren Cunningham, or (ii) with respect to any amounts owing   in Euros in connection with EUR Revolving Loans, at its offices at 25 Bank Street, Floor   6, Canary Wharf, London, E14 5JP, United Kingdom, attention to the Manager, except   payments to be made directly to the Issuing Bank or Swingline Lender as expressly   provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03   shall be made directly to the Persons entitled thereto.  The Administrative Agent shall   distribute any such payments received by it for the account of any other Person to the   appropriate recipient promptly following receipt thereof.  If any payment hereunder shall   be due on a day that is not a Business Day, the date for payment shall be extended to the   next succeeding Business Day, and, in the case of any payment accruing interest, interest   thereon shall be payable for the period of such extension.  All payments hereunder shall   be made in U.S. Dollars or Euros, as provided herein.   (b) Any payments or proceeds received by the Administrative Agent (i) not   constituting either (x) a specific payment of principal, interest, fees or other sum payable   under the Loan Documents (which shall be applied as specified by the Borrowers or in   such Loan Document), or (y) a mandatory prepayment (which shall be applied in   accordance with Section 2.11) or (ii) after an Event of Default has occurred and is   continuing and the Administrative Agent so elects or the Required Lenders so direct,   shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements   including amounts then due to the Administrative Agent and the Issuing Bank from the   Borrowers or any other Loan Party (other than in connection with Swap Agreements or   Banking Services), second, to pay any fees or expense reimbursements then due to the   Lenders from the Borrowers or any other Loan Party (other than in connection with Swap   Agreements or Banking Services), third, to pay interest then due and payable on the   Loans ratably (based on the total Revolving Credit Exposure of each Lender to the total   Revolving Credit Exposure of all Lenders at such time), fourth, to prepay or pay, as   applicable, principal on the Loans and unreimbursed LC Disbursements ratably (based on   the total Revolving Credit Exposure of each Lender to the total Revolving Credit   Exposure of all Lenders at such time), fifth, to pay an amount to the Administrative   Agent equal to 105% of the aggregate undrawn face amount of all outstanding Letters of   Credit and the aggregate amount of any unpaid LC Disbursements, to be held as cash   collateral for such Obligations, sixth to prepay or pay, as applicable, ratably, any amounts   owing with respect to Banking Service Obligations and any amounts owing with respect   to Swap Obligations (provided that funds from any Person directly or indirectly liable for   a Swap Obligation that is a Hedging Obligation and that was not an “eligible contract   participant” as defined in the Commodity Exchange Act at the time such Swap   Obligation was incurred may not be used to satisfy such Swap Obligation), and seventh,   to the payment of any other Obligation due to the Administrative Agent, Issuing Bank or   any Lender by any Loan Party (provided that funds from any Person directly or indirectly     

 

   53   CHI 64213081v14   liable for a Swap Obligation that is a Hedging Obligation and that was not an “eligible   contract participant” as defined in the Commodity Exchange Act at the time such Swap   Obligation was incurred may not be used to satisfy such Swap Obligation).    Notwithstanding anything to the contrary contained in this Agreement, unless so directed   by the Borrowers, or unless a Default is in existence, neither the Administrative Agent   nor any Lender shall apply any payment which it receives to any Eurodollar Loan of any   Class, except (A) on the expiration date of the Interest Period applicable to any such   Eurodollar Loan or (B) in the event, and only to the extent, that there are no outstanding   ABR Loans of the same Class and, in any such event, the Borrowers shall pay the break   funding payment required in accordance with Section 2.16. The Administrative Agent   and the Lenders shall have the continuing and exclusive right to apply and reverse and   reapply any and all such proceeds and payments to any portion of the Obligations.     (c) At the election of the Administrative Agent, all payments of principal,   interest, LC Disbursements, fees, premiums, reimbursable expenses (including, without   limitation, all reimbursement for fees and expenses pursuant to Section 9.03), and other   sums payable under the Loan Documents, may be paid from the proceeds of Borrowings   made hereunder whether made following a request by the Borrowers pursuant to   Section 2.03 or a deemed request as provided in this Section or may be deducted from   any deposit account of the Borrowers or any other Loan Party maintained with the   Administrative Agent.  The Borrowers hereby irrevocably authorize (i) the   Administrative Agent to make a Borrowing for the purpose of paying each payment of   principal, interest and fees as it becomes due hereunder or any other amount due under   the Loan Documents and agrees that all such amounts charged shall constitute Loans   (including Swingline Loans) and that all such Borrowings shall be deemed to have been   requested pursuant to Sections 2.03 or 2.05, as applicable, and (ii) the Administrative   Agent to charge any deposit account of the Borrowers or any other Loan Party   maintained with the Administrative Agent for each payment of principal, interest and fees   as it becomes due hereunder or any other amount due under the Loan Documents.   (d) If any Lender shall, by exercising any right of setoff or counterclaim or   otherwise, obtain payment in respect of any principal of or interest on any of its Loans or   participations in LC Disbursements or its Swingline Loans resulting in such Lender   receiving payment of a greater proportion of the aggregate amount of its Loans and   participations in LC Disbursements and Swingline Loans and accrued interest thereon   than the proportion received by any other Lender, then the Lender receiving such greater   proportion shall purchase (for cash at face value) participations in the Loans and   participations in LC Disbursements and Swingline Loans of other Lenders to the extent   necessary so that the benefit of all such payments shall be shared by the Lenders ratably   in accordance with the aggregate amount of principal of and accrued interest on their   respective Loans and participations in LC Disbursements and Swingline Loans; provided   that (i) if any such participations are purchased and all or any portion of the payment   giving rise thereto is recovered, such participations shall be rescinded and the purchase   price restored to the extent of such recovery, without interest and (ii) the provisions of   this clause (d) shall not be construed to apply to any payment made by the Borrowers   pursuant to and in accordance with the express terms of this Agreement or any payment   obtained by a Lender as consideration for the assignment of or sale of a participation in     

 

   54   CHI 64213081v14   any of its Loans or participations in LC Disbursements to any assignee or participant,   other than to any Borrower or any Subsidiary or Affiliate thereof (as to which the   provisions of this clause (d) shall apply).  The Borrowers consent to the foregoing and   agree, to the extent it may effectively do so under applicable law, that any Lender   acquiring a participation pursuant to the foregoing arrangements may exercise against the   Borrowers rights of setoff and counterclaim with respect to such participation as fully as   if such Lender were a direct creditor of the Borrowers in the amount of such   participation.    (e) Unless the Administrative Agent shall have received notice from the   Borrowers prior to the date on which any payment is due to the Administrative Agent for   the account of the Lenders or the Issuing Bank hereunder that the Borrowers will not   make such payment, the Administrative Agent may assume that the Borrowers have   made such payment on such date in accordance herewith and may, in reliance upon such   assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount   due.  In such event, if the Borrowers have not in fact made such payment, then each of   the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the   Administrative Agent forthwith on demand the amount so distributed to such Lender or   Issuing Bank with interest thereon, for each day from and including the date such amount   is distributed to it to but excluding the date of payment to the Administrative Agent, at   the greater of the Federal Funds Effective Rate and a rate determined by the   Administrative Agent in accordance with banking industry rules on interbank   compensation.   (f) If any Lender shall fail to make any payment required to be made by it   pursuant to Section 2.05(c), 2.06(d), 2.06(e), 2.07(b), 2.18(e) or 9.03(c), then the   Administrative Agent may, in its discretion and notwithstanding any contrary provision   hereof, (i) apply any amounts thereafter received by the Administrative Agent for the   account of such Lender to satisfy such Lender’s obligations under such Sections until all   such unsatisfied obligations are fully paid, and/or (ii) hold any such amounts in a   segregated account as cash collateral for, and application to, any future funding   obligations of such Lender under such Sections, in the case of each of clauses (i) and (ii)   above in any order as determined by the Administrative Agent in its discretion.   (g) All payments of principal of, and interest accrued on, any Loan hereunder   shall be made in the currency in which such Loan is denominated.  All payments of fees   due pursuant to Section 2.12(a) and (b) shall be payable in U.S. Dollars.  All payments of   fees to the Administrative Agent for its own account as set forth in the Fee Letter shall be   paid in U.S. Dollars.  All payments made to reimburse the Administrative Agent, any   Swingline Lender, the Issuing Bank or any Lender for any costs, expenses, or other   amounts pursuant to Section 9.03 or any other Loan Document shall be made in the   currency in which such obligation to be reimbursed is invoiced or incurred.    (h) Immediately and automatically upon the occurrence of any Default with   respect to any Borrower described in clause (h) or (i) of Article VII or an acceleration of   the maturity of the Loans pursuant to Article VII, all EUR Revolving Loans shall be   converted to and redenominated in U.S. Dollars equal to the Equivalent Amount of each     

 

   55   CHI 64213081v14   such EUR Revolving Loan determined as of the date of such conversion and each Lender   shall be deemed to have automatically, irrevocably and unconditionally purchased and   received (to the extent of its unused Commitment) from each other Lender an undivided   interest and participation in and to each Loan in such amounts as are necessary such that,   after giving effect thereto, each Lender shall hold its ratable share of each Loan (based on   the total Revolving Credit Exposure of each Lender to the total Revolving Credit   Exposure of all Lenders at such time); provided that, to the extent such conversion shall   occur other than at the end of an Interest Period, the applicable Borrower shall pay to the   Administrative Agent for the ratable benefit of each applicable Lender all losses and   breakage costs related thereto in accordance with this Agreement and, upon the written   request of the Administrative Agent, each of the Lenders shall pay to the Administrative   Agent for the ratable benefit of each applicable Lender (based on the total Revolving   Credit Exposure of each Lender to the total Revolving Credit Exposure of all Lenders at   such time) not later than two Business Days following a request for payment from such   Lender, in U.S. Dollars, an amount equal to the undivided interest in and participation in   the applicable Loan purchased by such Lender pursuant to this Section 2.18. In the event   that any Lender fails to make payment to the Administrative Agent of any amount due   under this Section 2.18, the Administrative Agent shall be entitled to receive, retain and   apply against such obligation the principal and interest otherwise payable to such Lender   hereunder until the Administrative Agent receives from such Lender an amount sufficient   to discharge such Lender’s payment obligation as prescribed in this Section 2.18 together   with interest thereon at the Federal Funds Effective Rate for each day during the period   commencing on the date of demand by the applicable Lender and ending on the date such   obligation is fully satisfied. The Administrative Agent will promptly remit all payments   received as provided above to each relevant Lender.   SECTION 2.19. Mitigation Obligations; Replacement of Lenders.     (a) If any Lender requests compensation under Section 2.15, or if any   Borrower is required to pay any additional amount to any Lender or any Governmental   Authority for the account of any Lender pursuant to Section 2.17, or if any Lender gives a   notice pursuant to Section 2.15(e), then such Lender shall use reasonable efforts to   designate a different lending office for funding or booking its Loans hereunder or to   assign its rights and obligations hereunder to another of its offices, branches or affiliates,   if, in the judgment of such Lender, such designation or assignment (i) would eliminate or   reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the   future and (ii) in each case, would not subject such Lender to any unreimbursed cost or   expense and would not otherwise be disadvantageous to such Lender.  The Borrowers   hereby agree to pay all reasonable costs and expenses incurred by any Lender in   connection with any such designation or assignment.   (b) If any Lender requests compensation under Section 2.15, or if any   Borrower is required to pay any additional amount to any Lender or any Governmental   Authority for the account of any Lender pursuant to Section 2.17, or if any Lender gives   notice pursuant to Section 2.15(e), or if any Lender becomes a Defaulting Lender, then   the Borrowers may, at their sole expense and effort, upon notice to such Lender and the   Administrative Agent, require such Lender to assign and delegate, without recourse (in     

 

   56   CHI 64213081v14   accordance with and subject to the restrictions contained in Section 9.04), all its interests,   rights and obligations under this Agreement to an assignee that shall assume such   obligations (which assignee may be another Lender, if a Lender accepts such   assignment); provided that (i) the Borrowers shall have received the prior written consent   of the Administrative Agent (and if a Commitment is being assigned, the Issuing Bank),   which consent shall not unreasonably be withheld, (ii) such Lender shall have received   payment of an amount equal to the outstanding principal of its Loans and participations in   LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all   other amounts payable to it hereunder, from the assignee (to the extent of such   outstanding principal and accrued interest and fees) or the Borrowers (in the case of all   other amounts) and (iii) in the case of any such assignment resulting from a claim for   compensation under Section 2.15 or payments required to be made pursuant to Section   2.17, such assignment will result in a reduction in such compensation or payments.  A   Lender shall not be required to make any such assignment and delegation if, prior thereto,   as a result of a waiver by such Lender or otherwise, the circumstances entitling the   Borrowers to require such assignment and delegation cease to apply.   SECTION 2.20. Defaulting Lenders.  Notwithstanding any provision of this   Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following   provisions shall apply for so long as such Lender is a Defaulting Lender:   (a) fees shall cease to accrue on the unfunded portion of the Commitment of   such Defaulting Lender pursuant to Section 2.12(a);   (b) the Commitments and Revolving Credit Exposure of such Defaulting   Lender shall not be included in determining whether all Lenders or the Required Lenders   have taken or may take any action hereunder (including any consent to any amendment or   waiver pursuant to Section 9.02), provided that any waiver, amendment or modification   requiring the consent of all Lenders or each affected Lender which affects such   Defaulting Lender differently than other affected Lenders shall require the consent of   such Defaulting Lender;   (c) if any Swingline Exposure or LC Exposure exists at the time a Lender   becomes a Defaulting Lender then:   (i) all or any part of such Swingline Exposure and LC Exposure shall   be reallocated among the non-Defaulting Lenders of the same Class (if any) in   accordance with their respective Applicable Percentages but only to the extent (x)   the sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such   Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the   total of all non-Defaulting Lenders’ Commitments, (y) the sum of all non-   Defaulting Lenders’ Revolving Credit Exposures of such Class plus such   Defaulting Lender’s Swingline Exposure of such Class and LC Exposure does not   exceed the total of such non-Defaulting Lenders’ Commitments of such Class and   (z) the conditions set forth in Section 4.02 are satisfied at such time;     

 

   57   CHI 64213081v14   (ii) if the reallocation described in clause (i) above cannot, or can only   partially, be effected, the Borrowers shall within one (1) Business Day following   notice by the Administrative Agent (x) first, prepay such Swingline Exposure and   (y) second, cash collateralize such Defaulting Lender’s LC Exposure (after giving   effect to any partial reallocation pursuant to clause (i) above) in accordance with   the procedures set forth in Section 2.06(j) for so long as such LC Exposure is   outstanding;   (iii) if the Borrowers cash collateralizes any portion of such Defaulting   Lender’s LC Exposure pursuant to clause (ii) above, the Borrowers shall not be   required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b)   with respect to such Defaulting Lender’s LC Exposure during the period such   Defaulting Lender’s LC Exposure is cash collateralized;   (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated   pursuant to clause (i) above, then the fees payable to the Lenders pursuant to   Section 2.12(b) shall be adjusted in accordance with such non-Defaulting   Lenders’ Applicable Percentages; or   (v) if all or any portion of such Defaulting Lender’s LC Exposure is   neither cash collateralized nor reallocated pursuant to clause (i) or (ii) above, then,   without prejudice to any rights or remedies of the Issuing Bank or any other   Lender hereunder, all commitment fees that otherwise would have been payable   to such Defaulting Lender (solely with respect to the portion of such Defaulting   Lender’s Commitment that was utilized by such LC Exposure) and letter of credit   fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC   Exposure shall be payable to the Issuing Bank until such LC Exposure is cash   collateralized and/or reallocated; and   (d) so long as any Lender is a Defaulting Lender, the Swingline Lender shall   not be required to fund any Swingline Loan and the Issuing Bank shall not be required to   issue, amend or increase any Letter of Credit, unless it is satisfied that the related   exposure will be 100% covered by the Commitments of the non-Defaulting Lenders   and/or cash collateral will be provided by the Borrowers in accordance with Section   2.20(c), and participating interests in any such newly issued or increased Letter of Credit   or newly made Swingline Loan shall be allocated among non-Defaulting Lenders in a   manner consistent with Section 2.20(c)(i) (and Defaulting Lenders shall not participate   therein).   In the event that the Administrative Agent, the Borrowers, the Swingline Lender and the   Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that   caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of   the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on   such date such Lender shall purchase at par such of the Loans of the other Lenders (other than   Swingline Loans) as the Administrative Agent shall determine may be necessary in order for   such Lender to hold such Loans in accordance with its Applicable Percentage.     

 

   58   CHI 64213081v14   ARTICLE III      REPRESENTATIONS AND WARRANTIES   The Borrowers jointly and severally represent and warrant to the Administrative Agent   and the Lenders that as of the date of this Agreement and the date of making any Loan or the   issuance of any Letter of Credit:   SECTION 3.01. Organization; Powers.  The Borrowers and each of their   Subsidiaries are duly organized and validly existing under the laws of the jurisdiction of their   organization and have all requisite power and authority to carry on their business as now   conducted.  Each Loan Party and each of their Material Subsidiaries are in good standing under   the laws of the jurisdiction of their organization (or, if applicable in a foreign jurisdiction, enjoys   the equivalent status to the extent of such equivalent status exists under the laws of any foreign   jurisdiction of organization).  The Borrowers and their Subsidiaries, except where the failure to   do so, individually or in the aggregate, could not reasonably be expected to result in a Material   Adverse Effect, are qualified to do business in, and are in good standing in, every jurisdiction   where such qualification is required.     SECTION 3.02. Authorization; Enforceability.  The Transactions are within   each Borrower’s and each other Loan Party’s, as applicable, corporate powers and have been   duly authorized by all necessary corporate and, if required, stockholder action.  This Agreement   and each other Loan Document to which a Loan Party is a party has been duly executed and   delivered by such Loan Party and constitutes a legal, valid and binding obligation of such   Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy,   insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and   subject to general principles of equity, regardless of whether considered in a proceeding in equity   or at law.   SECTION 3.03. Governmental Approvals; No Conflicts.  The Transactions   (a) do not require any consent or approval of, registration or filing with, or any other action by,   any Governmental Authority as a condition to the effectiveness thereof, except such as have been   obtained or made and are in full force and effect, (b) will not violate any applicable law or   regulation or the charter, by-laws or other organizational documents of any Loan Party or any of   its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a   default under any material indenture, agreement or other instrument binding upon any Loan   Party or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any   payment to be made by any Loan Party or any of its Subsidiaries, and (d) will not result in the   creation or imposition of any Lien on any asset of any Loan Party or any of its Subsidiaries.   SECTION 3.04. Financial Condition; No Material Adverse Change.     (a) Parent has heretofore furnished to the Lenders its consolidated balance   sheet and statements of income, stockholders equity and cash flows (i) as of and for the   fiscal years ended December 31, 2010, December 31, 2011 and December 31, 2012,   reported on and audited by Deloitte & Touche LLP, independent public accountants, and   (ii) as of and for each fiscal quarter ending after the fiscal year ended December 31, 2012     

 

   59   CHI 64213081v14   and ending more than 45 days before the date hereof, certified by Parent’s chief financial   officer.  Such financial statements present fairly, in all material respects, the financial   position and results of operations and cash flows of Parent and its consolidated   Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to   year-end audit adjustments and the absence of footnotes in the case of the statements   referred to in clause (ii) above.   (b) Since December 31, 2010, there has been no event, circumstance or   change in the business, assets, operations, prospects or condition, financial or otherwise,   of the Parent and its Subsidiaries, taken as a whole, that has or could reasonably be   expected to have a Material Adverse Effect.   SECTION 3.05. Properties.   (a) Each Loan Party and each of its Material Subsidiaries has good title to, or   valid leasehold interests in, all its real and personal property necessary to its business,   free and clear of all Liens except for Permitted Liens.   (b) Each Loan Party and each of its Material Subsidiaries owns, or is licensed   to use, all trademarks, tradenames, copyrights, patents and other intellectual property   material to its business, free and clear of all Liens (other than Permitted Liens), and the   use thereof by each Borrower and its Subsidiaries does not infringe upon the rights of any   other Person, except for any such infringements that, individually or in the aggregate,   could not reasonably be expected to result in a Material Adverse Effect.   SECTION 3.06. Litigation and Environmental Matters.     (a) There are no actions, suits or proceedings by or before any arbitrator or   Governmental Authority pending against or, to the knowledge of each Borrower,   threatened against or affecting such Borrower or any of its Subsidiaries (i) which could   reasonably be expected, individually or in the aggregate, to result in a Material Adverse   Effect (other than the Disclosed Matters) or (ii) that involve this Agreement, the other   Loan Documents or the Transactions.   (b) Except for the Disclosed Matters and except with respect to any other   matters that, individually or in the aggregate, could not reasonably be expected to result   in a Material Adverse Effect, neither the Borrowers nor any of their Subsidiaries (i) have   failed to comply with any Environmental Law or to obtain, maintain or comply with any   permit, license or other approval required under any Environmental Law, (ii) have   become subject to any Environmental Liability, (iii) have received notice of any claim   with respect to any Environmental Liability or (iv) know of any basis for any   Environmental Liability.   SECTION 3.07. Compliance with Laws and Agreements.  Each Borrower   and its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental   Authority applicable to it or its property and all indentures, agreements and other instruments   binding upon it or its property, except where the failure to do so, individually or in the aggregate,   could not reasonably be expected to result in a Material Adverse Effect.  No Default has     

 

   60   CHI 64213081v14   occurred and is continuing.  Neither any Borrower nor any of its Subsidiaries or, to the   knowledge of any Financial Officer of Parent, any director, officer or employee of such   Borrower or Subsidiary is a Person currently the subject of any sanctions administered or   enforced by the United States Government (including, without limitation, OFAC), the United   Nations Security Council, the European Union or Her Majesty’s Treasury (collectively,   “Sanctions”), and neither any Borrower nor any of its Subsidiaries is located, organized or   resident in a country or territory in which Borrowers and their Subsidiaries have more than 5% of   their consolidated assets or derive more than 5% of their consolidated revenues that is subject to   any of the foregoing Sanctions in violation thereof.  No proceeds of any such assets or revenues   from or in any such country or territory subject to any of the foregoing Sanctions have been or   will be used in payment of any Obligations or other amounts hereunder or under any other Loan   Documents to Administrative Agent or any Lenders.   SECTION 3.08. Investment Company Status.  Neither the Borrowers nor   any of their Subsidiaries are an “investment company” as defined in, or subject to regulation   under, the Investment Company Act of 1940, as amended.   SECTION 3.09. Taxes.  Each Borrower and each of its Subsidiaries (other   than SWM Brazil with respect to the Brazil Tax Assessment) has timely filed or caused to be   filed all Federal and material state and foreign Tax returns and reports required to have been filed   and has paid or caused to be paid all Federal and material state and foreign Taxes required to   have been paid by it, except (a) Taxes that are being contested in good faith by appropriate   proceedings and for which such Borrower or such Subsidiary, as applicable, has set aside on its   books adequate reserves as required by GAAP or (b) to the extent that the failure to do so could   not reasonably be expected to result in a Material Adverse Effect.   SECTION 3.10. ERISA.  No ERISA Event has occurred or is reasonably   expected to occur that, when taken together with all other such ERISA Events for which liability   is reasonably expected to occur, could reasonably be expected to result in a Material Adverse   Effect.  The Borrowers and their Subsidiaries have satisfied all applicable minimum funding   requirements with respect to each Plan, except where the failure to do so could not reasonably be   expected to result in a Material Adverse Effect.     SECTION 3.11. Disclosure.  Each Borrower has disclosed to the Lenders all   agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries   is subject, and all other matters known to such Borrower and such Subsidiaries, that, individually   or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  Neither   the Information Memorandum nor any of the other reports, financial statements, certificates or   other information furnished by or on behalf of each Borrower or any of its Subsidiaries to the   Administrative Agent or any Lender in connection with the negotiation of this Agreement or   delivered hereunder (as modified or supplemented by other information so furnished) contains   any material misstatement of fact or omits to state any material fact necessary to make the   statements therein, in the light of the circumstances under which they were made, not   misleading; provided that, with respect to projected financial information, each Borrower   represents only that such information was prepared in good faith based upon assumptions   believed to be reasonable at the time.     

 

   61   CHI 64213081v14   SECTION 3.12. Subsidiaries.  As of the Effective Date, Parent does not   have any subsidiaries other than those Subsidiaries listed on Schedule 3.12.  Schedule 3.12   correctly sets forth, as of the Effective Date, (a) the percentage ownership (direct or indirect) of   Parent in the Equity Interests of its Subsidiaries and also identifies the direct owner thereof and   (b) the jurisdiction of organization of each such Subsidiary.   SECTION 3.13. Material Agreements. All agreements and contracts to   which any Loan Party is a party or is bound as of the date of this Agreement, the breach or loss   of which would reasonably be expected to have a Material Adverse Effect, are listed on Schedule   3.13.  No Loan Party is in default in the performance, observance or fulfillment of any of the   obligations, covenants or conditions contained in (a) any material agreement or contract to which   it is a party or (b) any agreement or instrument evidencing or governing Indebtedness.   SECTION 3.14. Labor Relations.  To the best knowledge of the Borrowers,   none of the Borrowers or any of their Subsidiaries are engaged in any unfair labor practice that   could reasonably be expected to have a Material Adverse Effect.  There is (a) no significant   unfair labor practice complaint pending against the Borrowers or any of their Subsidiaries or, to   the best knowledge of the Borrowers, threatened against any of them before the National Labor   Relations Board or any similar Governmental Authority in any jurisdiction, and no significant   grievance or significant arbitration proceeding arising out of or under any collective bargaining   agreement is so pending against the Borrowers or any of their Subsidiaries or, to the best   knowledge of the Borrowers, threatened against any of them, (b) no significant strike, labor   dispute, slowdown or stoppage is pending against the Borrowers or any of their Subsidiaries or,   to the best knowledge of the Borrowers, threatened against the Borrowers or any of their   Subsidiaries and (c) to the best knowledge of the Borrowers, no question concerning union   representation exists with respect to the employees of the Borrowers or any of their Subsidiaries,   except (with respect to any matter specified in clause (a), (b) or (c) above, either individually or   in the aggregate) such as could not reasonably be expected to have a Material Adverse Effect.   SECTION 3.15. Solvency.  Parent and its Material Subsidiaries, on a   consolidated basis, are Solvent.   SECTION 3.16. Insurance.  Schedule 3.16 sets forth a description of all   insurance maintained by or on behalf of Parent and its Subsidiaries as of the Effective Date.  As   of the Effective Date, all premiums in respect of such insurance have been paid. The Borrowers   believe that the insurance maintained by or on behalf of Parent and its Subsidiaries is adequate.   SECTION 3.17. Regulation U.  No Borrower is engaged principally, or as   one of its important activities, in the business of extending credit for the purpose of purchasing   or carrying Margin Stock.   SECTION 3.18. Common Enterprise.  The successful operation and   condition of each of the Loan Parties is dependent on the continued successful performance of   the functions of the group of the Loan Parties as a whole and the successful operation of each of   the Loan Parties is dependent on the successful performance and operation of each other Loan   Party.  Each Loan Party expects to derive benefit (and its board of directors or other governing   body has determined that it may reasonably be expected to derive benefit), directly and     

 

   62   CHI 64213081v14   indirectly, from (i) successful operations of each of the other Loan Parties and (ii) the credit   extended by the Lenders to the Borrowers hereunder, both in their separate capacities and as   members of the group of companies.  Each Loan Party has determined that execution, delivery,   and performance of this Agreement and any other Loan Documents to be executed by such Loan   Party is within its purpose, will be of direct and indirect benefit to such Loan Party, and is in its   best interest.   SECTION 3.19. Foreign Borrower.  Each Foreign Borrower is subject to   civil and commercial laws with respect to its obligations under this Agreement and the other   Loan Documents to which it is a party (collectively, the “Foreign Borrower Documents”), and   the execution, delivery and performance by each Foreign Borrower of the Foreign Borrower   Documents to which it is a party constitutes and will constitute private and commercial acts and   not public or governmental acts.  Neither any Foreign Borrower nor any of its property has any   immunity from jurisdiction of any court or from any legal process (whether through service or    notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)   under the laws of the jurisdiction in which such Foreign Borrower is organized and existing in   respect of its obligations under the Foreign Borrower Documents.  There is no tax, levy, impost,   duty, fee, assessment or other governmental charge, or any deduction or withholding, imposed   by any Governmental Authority in or of the jurisdiction in which a Foreign Borrower is   organized and existing either (x) on or by virtue of the execution or delivery of the Foreign   Borrower Documents or (y) on any payment to be made by a Foreign Borrower pursuant to the   applicable Foreign Borrower Documents.   SECTION 3.20. Compliance with Domiciliation Law. All the legal   requirements of the Luxembourg law of 31 May 1999, as amended, regarding the   domiciliation of companies have been complied with by SWM Luxembourg and each other   Loan Party organized under the laws of Luxembourg.   SECTION 3.21. COMI. For the purposes of the Council Regulation (EC) N°   1346/2000 of 29 May 2000 on insolvency proceedings (the “EU Regulation”), in relation to   any Foreign Borrower which is incorporated in a member state of the European Union, such   Foreign Borrower’s centre of main interest (as that term is used in Article 3(1) of the EU   Regulation) is situated in its jurisdiction of incorporation and it has no “establishment” (as   that term is used in Article 2(h) of the EU Regulation) in any other jurisdiction.   ARTICLE IV      CONDITIONS   SECTION 4.01. Effective Date.  The obligations of the Lenders to make   Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective   until the date on which each of the following conditions is satisfied (or waived in accordance   with Section 9.02):   (a) The Administrative Agent (or its counsel) shall have received from each   Loan Party either (i) a counterpart signature to each Loan Document to which it is a party   signed on behalf of such Loan Party or (ii) written evidence satisfactory to the     

 

   63   CHI 64213081v14   Administrative Agent (which may include electronic delivery of a signed signature page   of this Agreement) that such party has signed a counterpart of each Loan Document to   which it is a party.   (b) The Administrative Agent shall have received favorable written opinions   (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of   (i) Troutman Sanders, counsel for the Loan Parties and (ii) AMMC Law, S.A., special   Luxembourg counsel for SWM Luxembourg, each in form and substance satisfactory to   the Administrative Agent, and covering such matters relating to the Borrower, this   Agreement, the other Loan Documents or the Transactions as the Administrative Agent   shall reasonably request.  The Borrowers hereby request such counsels to deliver such   opinions.   (c) The Administrative Agent shall have received such documents and   certificates as the Administrative Agent or its counsel may reasonably request relating to   the organization, existence and good standing of the Loan Parties, the authorization of the   Transactions and any other legal matters relating to the Loan Parties, this Agreement, the   other Loan Documents or the Transactions, all in form and substance satisfactory to the   Administrative Agent and its counsel.   (d) The Administrative Agent shall have received a certificate, dated the   Effective Date and signed by a manager of SWM Luxembourg and the President, a Vice   President or a Financial Officer of each other Borrower, (i) confirming compliance with   the conditions set forth in clauses (a) and (b) of Section 4.02, (ii) certifying that no event   or events have occurred since December 31, 2012 that has had or could reasonably be   expected to have, either individually or in the aggregate, a Material Adverse Effect and   (iii) certifying the absence of any action, suit, investigation or proceeding that is pending   or, to the knowledge of the Borrowers, threatened in any court or before any arbitrator or   Governmental Authority (other than the Disclosed Matters) that could reasonably be   expected to have, either individually or in the aggregate, a Material Adverse Effect.   (e) The Administrative Agent shall have received all fees and other amounts   due and payable on or prior to the Effective Date, including, to the extent invoiced,   reimbursement or payment of all out-of-pocket expenses required to be reimbursed or   paid by the Borrowers hereunder.   (f) The Administrative Agent shall have received (a) the audited consolidated   balance sheet and statements of income, stockholders’ equity and cash flows of Parent   and its Subsidiaries as of and for the fiscal years ended December 31, 2010, December   31, 2011 and December 31, 2012 and (b) satisfactory unaudited interim consolidated   financial statements of Parent and its Subsidiaries for each of the quarterly periods ending   after December 31, 2012 through the Effective Date.   (g) The Administrative Agent shall have received financial projections   satisfactory to Administrative Agent of Parent and its Subsidiaries for the five-year   period from and including the fiscal year ending December 31, 2014 through the fiscal   year ending December 31, 2018, prepared on a pro forma consolidated basis after giving     

 

   64   CHI 64213081v14   effect to the Delstar Acquisition, together with such information as the Administrative   Agent may reasonably request to confirm the tax, legal, and business assumptions made   therein.   (h) The Administrative Agent shall have received copies of all Governmental   Authorizations and third party approvals necessary or, in the reasonable discretion of the   Administrative Agent in consultation with the Borrowers, advisable in connection with   the Transactions (other than the Delstar Acquisition) and all other documents reasonably   requested by the Administrative Agent, and such Governmental Authorizations and third   party approvals are in full force and effect as of the Effective Date.   (i) With respect to the Loan Parties and their respective Subsidiaries existing   on the Effective Date, the Administrative Agent shall have received insurance certificates   or binders and endorsements for all insurance as the Administrative Agent shall request   naming the Administrative Agent, on behalf of the Lenders, as additional insured for any   liability policies, in form and substance satisfactory to the Administrative Agent.   (j) The Administrative Agent shall have received such other documents,   instruments and items as Administrative Agent shall have requested (including, without   limitation, any such documents, instruments and items set forth on that certain closing   checklist delivered to Borrowers by Administrative Agent).   The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and   such notice shall be conclusive and binding.   SECTION 4.02. Each Credit Event.  The obligation of each Lender to make   a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or   extend any Letter of Credit, is subject to the satisfaction of the following conditions:   (a) the representations and warranties of the Borrowers and each other Loan   Party set forth in this Agreement and the other Loan Documents shall be true and correct   on and as of the date of such Borrowing or the date of issuance, amendment, renewal or   extension of such Letter of Credit, as applicable;   (b) at the time of and immediately after giving effect to such Borrowing or the   issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no   Default shall have occurred and be continuing;   (c) at the time of making and immediately after giving effect to such Loan or   the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the   total Revolving Credit Exposures of any Class shall not exceed the total Commitments   for such Class; and   (d) Administrative Agent and, if applicable, the Issuing Bank or the Swingline   Lender shall have received a Borrowing Request or a notice requesting the issuance,   amendment, renewal or extension of such Letter of Credit, as the case may be, in each   case, in accordance with the requirements of this Agreement.     

 

   65   CHI 64213081v14   Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall   be deemed to constitute a representation and warranty by the Borrowers on the date thereof as to   the matters specified in clauses (a), (b) and (c) of this Section.   SECTION 4.03. Delstar Acquisition Effective Date.  The obligations of the   Lenders to make Loans hereunder for the purpose of funding all or a portion of the purchase   price pursuant to the Merger Agreement to consummate the Delstar Acquisition shall not become   effective until the date on which each of the following conditions (in addition to the conditions   set forth in Section 4.02) is satisfied (or waived in accordance with Section 9.02) (the date on   which such conditions are satisfied or waived, the “Delstar Acquisition Effective Date”):   (a) The Administrative Agent shall have received (i) the audited consolidated   balance sheet and statements of income, stockholders’ equity and cash flows of Delstar   and its Subsidiaries as of and for the fiscal years ended September 30, 2010, September   30, 2011 and September 30, 2012 and (ii) satisfactory unaudited interim consolidated   financial statements of Delstar and its Subsidiaries for each of the quarterly periods   ending after September 30, 2012 through the Effective Date (it being acknowledged and   agreed that the financial statements delivered to the Administrative Agent pursuant to   clause (ii) on or prior to the execution and delivery of this Agreement by each party   hereto are satisfactory to the Administrative Agent and the Lenders).   (b) The conditions precedent set forth in Article IX of the Merger Agreement   to the obligations of each party thereto to consummate the Delstar Acquisition (other than   evidence of wire transfers under Section 3.1 thereof) shall have been satisfied   substantially on the terms set forth in the Merger Agreement, without giving effect to any   amendments, waivers, or consents by Parent (or any other Borrower) or its Subsidiaries   that are a party thereto that have or could reasonably be expected to have a Material   Adverse Effect.   (c) Prior to or substantially simultaneously with the closing of the Delstar   Acquisition, all obligations (including all principal, interest and fees) under the Delstar   Existing Debt Documents shall be paid in full and terminated, all commitments   thereunder shall be terminated, and all Liens on collateral securing any such obligations   under the Delstar Existing Debt Documents shall be released (or arrangements reasonably   satisfactory to the Administrative Agent shall have been made for such release).   (d) The Administrative Agent shall have received all documents and other   information with respect to Delstar and its Subsidiaries required by regulatory authorities   under applicable “know you customer” and anti-money laundering rules and regulations,   including, without limitation, the Act requested by the Administrative Agent at least 48   hours in advance of the scheduled closing of the Delstar Acquisition.   The Administrative Agent shall notify the Borrowers and the Lenders of the Delstar Acquisition   Effective Date, and such notice shall be conclusive and binding.     

 

   66   CHI 64213081v14   ARTICLE V      AFFIRMATIVE COVENANTS   Until the Commitments have expired or been terminated and the Obligations and other   amounts payable hereunder and under the other Loan Documents shall have been paid in full and   all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been   reimbursed, each Borrower covenants and agrees with the Administrative Agent and the Lenders   that:   SECTION 5.01. Financial Statements and Other Information.  Each   Borrower will furnish to the Administrative Agent and each Lender:   (a) within ninety (90) days after the end of each fiscal year of Parent, Parent’s   audited consolidated balance sheet and related statements of operations, stockholders’   equity and cash flows as of the end of and for such year, setting forth in each case in   comparative form the figures for the previous fiscal year, all reported on by Deloitte &   Touche LLP or other independent public accountants of recognized national standing   (without a “going concern” or like qualification or exception and without any   qualification or exception as to the scope of such audit) to the effect that such   consolidated financial statements present fairly in all material respects the financial   condition and results of operations of  Parent and its consolidated Subsidiaries on a   consolidated basis in accordance with GAAP consistently applied;   (b) within forty-five (45) days after the end of each of the first three fiscal   quarters of each fiscal year of Parent, Parent’s consolidated and consolidating balance   sheet and related statements of operations, stockholders’ equity and cash flows as of the   end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting   forth in each case in comparative form the figures for the corresponding period or periods   of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all   certified by one of its Financial Officers as presenting fairly in all material respects the   financial condition and results of operations of Parent and its consolidated Subsidiaries   on a consolidated and consolidating basis in accordance with GAAP consistently applied,   subject to normal year-end audit adjustments and the absence of footnotes;   (c) concurrently with any delivery of financial statements under clause (a) or   (b) of this Section, a compliance certificate in the form of Exhibit C and signed by a   Financial Officer of Parent (i) certifying as to whether a Default has occurred and, if a   Default has occurred, specifying the details thereof and any action taken or proposed to   be taken with respect thereto, and (ii) stating whether any change in GAAP or in the   application thereof has occurred since the date of the audited financial statements referred   to in Section 3.04 and, if any such change has occurred, specifying the effect of such   change on the financial statements accompanying such certificate;   (d) as soon as available, but in any event not more than forty-five (45) days   after the end of each fiscal year of such Borrower, a copy of the budget and forecast   (including a projected consolidated income statement) of Parent and its Subsidiaries for     

 

   67   CHI 64213081v14   each quarter of the upcoming fiscal year in form reasonably satisfactory to the   Administrative Agent;   (e) promptly upon receipt thereof, copies of any reports submitted by Parent’s   accountants in connection with each annual, interim or special audit or review of any type   of the financial statements or internal control systems of any such Borrower or any of its   Subsidiaries made by such accounts, including any comment letters submitted by such   accountants to management of any Borrower or any Subsidiary in connection with their   services;   (f) promptly after the same become publicly available, copies of all periodic   and other reports, proxy statements and other materials filed by any Borrower or any   Subsidiary with the Securities and Exchange Commission, or any Governmental   Authority succeeding to any or all of the functions of said commission, or with any   national securities exchange; or distributed by a Borrower to its shareholders generally as   the case may be; and   (g) promptly following any request therefor, such other information regarding   the operations, business affairs and financial condition of each Borrower or any   Subsidiary, or compliance with the terms of this Agreement or any other Loan Document,   as the Administrative Agent or any Lender may reasonably request.   The information and other materials required to be delivered pursuant to this Section 5.01 may   be delivered electronically by Parent to Administrative Agent and Lenders pursuant to   procedures approved by the Administrative Agent; provided that, Parent shall deliver paper   copies of any such information and/or materials delivered electronically after the date delivery is   required under this Section 5.01 to the Administrative Agent or any Lender which requests such   delivery within five Business Days after such request.      SECTION 5.02. Notices of Material Events.  Borrowers will furnish to the   Administrative Agent and each Lender prompt written notice of the following:   (a) the occurrence of any Default;   (b) the filing or commencement of any action, suit or proceeding by or before   any arbitrator or Governmental Authority against or affecting any Borrower, any Loan   Party or any Affiliate thereof that could reasonably be expected to result in a Material   Adverse Effect;   (c) an Adverse Tax Ruling; and   (d) any other development that results in, or could reasonably be expected to   result in, a Material Adverse Effect.   Each notice delivered under this Section shall be accompanied by a statement of a Financial   Officer or other executive officer of the applicable Borrower setting forth the details of the event   or development requiring such notice and any action taken or proposed to be taken with respect   thereto.     

 

   68   CHI 64213081v14   SECTION 5.03. Existence; Conduct of Business.  Each Loan Party will, and   will cause each of its Material Subsidiaries to, do or cause to be done all things necessary to   preserve, renew and keep in full force and effect its legal existence and the rights, licenses,   permits, privileges and franchises material to the conduct of its business; provided that the   foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under   Section 6.03.   SECTION 5.04. Payment of Obligations.  Each Borrower will, and will   cause each of its Subsidiaries to, pay its obligations, including liabilities for any Taxes, that, if   not paid, could result in a Material Adverse Effect before the same shall become delinquent or in   default, except where (a) the validity or amount thereof is being contested in good faith by   appropriate proceedings, (b) such Borrower or such Subsidiary has set aside on its books   adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make   payment pending such contest could not reasonably be expected to result in a Material Adverse   Effect.  Each Borrower will, and will cause each of its Subsidiaries to, perform its obligations   under any contractual obligation to which such Borrower or such Subsidiary is bound or to   which any of its properties is subject, except where the failure to perform could not reasonably   be expected to have, either individually or in the aggregate, a Material Adverse Effect.   SECTION 5.05. Maintenance of Properties; Insurance.  Each Borrower will,   and will cause each of its Subsidiaries to (a) keep and maintain all property material to the   conduct of its business in good working order and condition, ordinary wear and tear excepted,   and (b) maintain, with financially sound and reputable insurance companies, insurance in such   amounts and against such risks as are customarily maintained by companies engaged in the same   or similar businesses operating in the same or similar locations.     SECTION 5.06. Books and Records; Inspection Rights.  Parent will, and   will cause each of its Subsidiaries to, keep proper books of record and accounts in which full,   true and correct entries are made of all dealings and transactions in relation to its business and   activities.  Each Borrower will, and will cause each of its Subsidiaries to, permit any   representatives designated by the Administrative Agent or any Lender, upon reasonable prior   notice, to visit and inspect its properties, to examine and make extracts from its books and   records (and, at the request of the Administrative Agent or Required Lenders, to perform audits   of such books and records), and to discuss its affairs, finances and condition with its officers and   independent accountants, all at such reasonable times and as often as reasonably requested.  All   such visits, inspections, or audits by the Administrative Agent or any Lender shall be at the   Borrowers’ expense.  Each Borrower acknowledges that the Administrative Agent, after   exercising its rights hereunder, may prepare and distribute to the Lenders certain Reports   pertaining to the Loan Parties’ and their Subsidiaries’ assets for internal use by the   Administrative Agent and the Lenders.   SECTION 5.07. Compliance with Laws.  Each Borrower will, and will   cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any   Governmental Authority applicable to it or its property, except where the failure to do so,   individually or in the aggregate, could not reasonably be expected to result in a Material Adverse   Effect.     

 

   69   CHI 64213081v14   SECTION 5.08. Use of Proceeds.  The proceeds of the Loans shall be used   only (a) for general corporate purposes of the Borrowers and their Subsidiaries in the ordinary   course of business (including, without limitation, to fund Permitted Acquisitions), (b) subject to   the satisfaction of the conditions precedent set forth in Section 4.03, to fund all or a portion of   the purchase price pursuant to and in accordance with the Merger Agreement to consummate the   Delstar Acquisition on the Delstar Acquisition Effective Date and (c) to pay Acquisition   Expenses and expenses relating to the negotiation and documentation of this Agreement.  No   part of the proceeds of any Loan (i) will be used, whether directly or indirectly, for any purpose   that entails a violation of any of the Regulations of the Board, including Regulations T, U and X   or (ii) will be used in violation of any Sanctions applicable to any party hereto.   SECTION 5.09. Further Assurances; Additional Borrowers.    (a) Subject to applicable law and Section 5.12, each Loan Party shall cause   each of its Domestic Subsidiaries that constitutes a Material Subsidiary (other than,   unless no adverse tax impact would exist as a result of such guaranty, Domestic   Subsidiaries owned indirectly through a Foreign Subsidiary) to guaranty the Obligations    on or prior to the date such Subsidiary becomes a Material Subsidiary (or such longer   period as may be agreed to by Administrative Agent in writing) by executing a   Subsidiary Guaranty or one (1) or more joinder agreements (or similar documents) to any   such Subsidiary Guaranty.  Upon execution and delivery thereof, each such Person shall   become a Subsidiary Guarantor and thereupon shall have all of the rights, benefits, duties   and obligations in such capacity under the Loan Documents.  Without limiting the   foregoing, each Borrower will, and will cause each Subsidiary to, execute and deliver, or   cause to be executed and delivered, to the Administrative Agent such documents,   agreements and instruments, and will take or cause to be taken such further actions which   may be required by law or which the Administrative Agent may, from time to time,   reasonably request to carry out the terms and conditions of this Agreement and the other   Loan Documents at the expense of the Borrowers.  The Loan Parties shall deliver, or   cause to be delivered, to Administrative Agent, in connection with the execution and   delivery of each such Subsidiary Guaranty, appropriate resolutions, secretary certificates,   certified organizational documents and, if requested by Administrative Agent, legal   opinions relating to the matters described in this Section 5.09 (which opinions shall be in   form and substance reasonably acceptable to Administrative Agent).         (b) The Borrowers may, upon not less than twenty (20) Business Days’ notice   from the Borrowers to the Administrative Agent (or such shorter period as may be agreed   by the Administrative Agent in its sole discretion), designate, with the prior written   consent of the Administrative Agent (such consent not to be unreasonably withheld), any   Subsidiary of Parent (an “Additional Borrower”) as a new borrower to receive Loans (or   reallocate existing Loans), pursuant to terms and conditions to be mutually agreed to by   the Borrowers and the Administrative Agent and in accordance with this Section 5.09(b).    Prior to any Borrower becoming entitled to receive certain Loans, the Administrative   Agent and the Lenders shall have received (i) an amendment hereto in form, content and   scope reasonably satisfactory to the Administrative Agent providing for such Additional   Borrower becoming a Borrower hereunder, such amendment only requiring the    signatures of the Administrative Agent, the Borrowers and the Additional Borrower(s),     

 

   70   CHI 64213081v14   subject only to the approval of all Lenders if any such amendment also amends terms   which would require the approval of the Required Lenders, affected Lenders or all   Lenders, as the case may be, pursuant to Section 9.02, (ii) one or more joinder   agreements (or similar documents) to the applicable Loan Documents as requested by   Administrative Agent, (iii) such supporting resolutions, secretary certificates, opinions of   counsel and other documents or information, in form, content and scope reasonably   satisfactory to the Administrative Agent, as may be required by the Administrative Agent   or the Required Lenders in their sole discretion, and (iv) Notes signed by such new   Additional Borrower to the extent any Lender so requires.  If the Administrative Agent   agrees that the Additional Borrower shall be entitled to receive Loans and that the   conditions set forth in this Section 5.09(b) are satisfied, then the Administrative Agent   shall send a written notice to the Lenders specifying the effective date upon which the   Additional Borrower may receive Loans, whereupon each of the Lenders agrees to permit   such Additional Borrower to receive Loans (or reallocate existing Loans), on the terms   and conditions set forth herein.  Notwithstanding the foregoing, and as conditions   precedent to any Lender being obligated to make any Loans or issue any Letters of Credit   to any Additional Borrower on the occasion of the first Borrowing by, or issuance of a   Letter of Credit for the account of, such Additional Borrower, if the designation of such   Additional Borrower obligates the Administrative Agent or any Lender to comply with   “know your customer” or similar identification procedures in circumstances where the   necessary information is not already available to it, Parent shall, and shall cause such   Additional Borrower to, promptly upon the request of the Administrative Agent or any   Lender, supply such documentation and other evidence as is reasonably requested by the   Administrative Agent or any Lender in order for the Administrative Agent or such   Lender to carry out and be satisfied it has complied with all necessary “know your   customer” or other similar checks under all applicable laws and regulations.  In addition   to the immediately preceding condition precedent, on the occasion of the first Borrowing   by, or issuance of a Letter of Credit for the account of, an Additional Borrower, any   extension of credit or issuance of a Letter of Credit to a proposed Additional Borrower   that is not organized under the laws of the United States or any political subdivision   thereof shall not contravene any law or regulation applicable to each Lender extending   credit.   SECTION 5.10. OFAC.  Each Borrower shall (a) ensure, and cause each of   its Subsidiaries to ensure, that no Person who owns a controlling interest in or otherwise controls   such Borrower or any such Subsidiary is or shall be listed on the Specially Designated Nationals   and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control   (“OFAC”), the Department of the Treasury or included in any Executive Orders, (b) not use or   permit the use of the proceeds of the Loans to violate any of the foreign asset control regulations   of OFAC or any enabling statute or Executive Order relating thereto and (c) comply, and cause   each Subsidiary to comply, with all applicable Bank Secrecy Act regulations, as amended.   SECTION 5.11. Status of Obligations.  No Borrower shall cause, or consent   in writing to permit, any of its obligations under this Agreement or under any of the other Loan   Documents to rank less than pari passu in right of payment with all other unsecured Indebtedness   of such Borrower.     

 

   71   CHI 64213081v14   SECTION 5.12. Post-Closing Obligations.  The Borrowers shall cause the   Persons set forth on Schedule 5.12 to execute and deliver to the Administrative Agent a   Subsidiary Guaranty within sixty (60) days following the Effective Date (as extended by the   Administrative Agent in its discretion).   SECTION 5.13. Centre of Main Interest.  Each Foreign Borrower will   maintain its centre of main interest in its jurisdiction of organization.   ARTICLE VI      NEGATIVE COVENANTS   Until the Commitments have expired or terminated and the Obligations and other   amounts payable hereunder and under the other Loan Documents have been paid in full and all   Letters of Credit have expired or terminated and all LC Disbursements have been reimbursed,   each Borrower covenants and agrees with the Administrative Agent and the Lenders that:   SECTION 6.01. Indebtedness.  Parent will not permit any of its Subsidiaries   (other than Subsidiary Guarantors) to create, incur, assume, or permit to exist any Indebtedness,   except:   (i) Indebtedness created under the Loan Documents;   (ii) intercompany Indebtedness permitted pursuant to Section 6.04;   (iii) Indebtedness arising under any employee benefit plan sponsored   by Schweitzer Mauduit France S.A.S., LTR Industries S.A., PDM Industries   S.N.C., Papeteries de Mauduit S.A.S., Malaucene Industries S.N.C., Papeteries de   Mauduit S.A.S., Papeteries de Saint-Girons S.A.S., Saint-Girons Industries   S.N.C., SWM-Poland Sp. Zo o, or any of their Subsidiaries;   (iv) other Indebtedness of any such Person of the type permitted to be   secured by Sections 6.02(o) or 6.02(p);    (v) all reimbursement obligations arising under letters of credit   (including standby and commercial), bankers’ acceptances, bank guaranties,   surety bonds and similar instruments arising in the ordinary course of business;   and   (vi) other Indebtedness of Subsidiaries of Parent (other than Subsidiary   Guarantors) in an aggregate principal amount not to exceed the Equivalent   Amount of $150,000,000 at any time outstanding.   SECTION 6.02. Liens.  The Borrowers will not, nor will they permit any   Significant Subsidiary to, create, incur, assume or permit to exist any Lien on any property or   asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including   accounts receivable) or rights in respect of any thereof, except:     

 

   72   CHI 64213081v14   (a) Permitted Encumbrances;   (b) Liens securing the Obligations;   (c) Liens securing Indebtedness set forth in Schedule 6.02 and refinancings of   such Indebtedness; provided that, the aggregate principal amount of such Indebtedness   shall not be increased since the Effective Date;   (d) Liens arising in the ordinary course of business in favor of customs and   revenue authorities arising as a matter of law to secure payment of customs duties in   connection with the importation of goods;   (e) Liens on the assets and properties of Persons which become Subsidiaries   of Parent after the date of this Agreement securing Indebtedness permitted hereby;   provided that, such Liens are in existence at the time the respective Persons become   Subsidiaries of Parent and were not created in anticipation thereof;   (f) Liens resulting from progress payments or partial payments under United   States government contracts or subcontracts;   (g) Liens existing on the assets and properties acquired by the Borrowers or   their Subsidiaries in the ordinary course of business prior to any such Borrower’s or such   Subsidiary’s acquisition of such assets and properties;    (h) bankers’ Liens, rights of setoff and other similar Liens existing solely with   respect to cash and cash equivalents on deposit in one or more accounts maintained by   Parent or any Subsidiary of Parent, in each case granted in the ordinary course of   business in favor of the bank or banks with which such accounts are maintained, securing   amounts owing to such bank with respect to cash management and operating account   arrangements, including those involving pooled accounts and netting arrangements;   (i) leases or subleases granted to others not interfering in any material respect   with the business of Parent or any Subsidiary of Parent and any interest or title of a lessor   under any lease (whether a Capital Lease or an operating lease) permitted by this   Agreement;   (j) Liens arising from the granting of a lease or license to enter into or use   any asset of Parent or any Subsidiary of Parent to any Person in the ordinary course of   business of Parent or such Subsidiary that does not interfere in any material respect with   the use or application by Parent or such Subsidiary of the asset subject to such license in   the business of Parent or such Subsidiary;   (k) Liens attaching solely to cash earnest money deposits made by Parent or   any Subsidiary of Parent in connection with any letter of intent or purchase agreement   entered into in connection with a Permitted Acquisition permitted hereunder;     

 

   73   CHI 64213081v14   (l) Liens arising from precautionary UCC financing statements (or analogous   personal property security filings or registrations in other jurisdictions) regarding   operating leases;   (m) Liens on insurance policies and proceeds thereof to secure premiums   thereunder;   (n) Liens relating solely to employee contributions withheld from pay   imposed by applicable pension law;   (o) Liens on Equity Interests issued by a  joint venture of Parent or any of its   Subsidiaries (but that is not a Subsidiary of Parent) securing Indebtedness of such joint   venture permitted hereunder so long as such Indebtedness is recourse to Parent and/or its   Subsidiaries solely to the extent of such Equity Interest and substantially similar Liens   have been pledged by each other Person owning Equity Interests in such joint venture to   secure such Indebtedness;   (p) purchase money Liens or purchase money security interests upon or in any   fixed assets acquired or held by any Borrower or its Subsidiaries in the ordinary course of   business to secure the purchase price of such fixed assets or to secure Indebtedness   incurred solely for the purpose of financing the acquisition of such fixed assets; provided   that the aggregate principal amount of the Indebtedness secured by the Liens permitted   by this clause (p) shall not, on the date such Lien is granted and after giving effect   thereto, exceed an aggregate amount equal to 30% of Parent’s Tangible Net Worth at any   time; and   (q) Liens securing Indebtedness and other obligations or liabilities not   expressly permitted by clauses (a) through (p) above; provided that the aggregate   principal amount of the Indebtedness and other obligations or liabilities secured by the   Liens permitted by this clause (q) shall not exceed an aggregate amount equal to the   Equivalent Amount of $175,000,000 at any time outstanding (for purposes of this clause   (q), the amount of such obligations or liabilities (other than with respect to Indebtedness)   shall equal the amounts for such obligations or liabilities set forth in the financial   statements then last delivered to the Administrative Agent under Sections 5.01(a) and   5.01(b) or, to the extent not set forth in such financial statements, as determined in good   faith by a Financial Officer of the Parent).   SECTION 6.03. Fundamental Changes; Asset Sales.   (a) The Borrowers will not, nor will they permit any of their Subsidiaries to,   merge into or consolidate with any other Person, or permit any other Person to merge into   or consolidate with, or liquidate or dissolve or commence a Bankruptcy Action, except   that, if at the time thereof and immediately after giving effect thereto no Default shall   have occurred and be continuing, (i) any Subsidiary may merge into a Borrower in a   transaction in which such Borrower is the surviving entity, (ii) any Subsidiary may merge   into any Subsidiary in a transaction in which the surviving entity is a Subsidiary (and, if   either such Subsidiary is a Subsidiary Guarantor, then the surviving entity shall also be a     

 

   74   CHI 64213081v14   Subsidiary Guarantor); provided that if a Foreign Borrower is a party to any such   transaction, either such Foreign Borrower shall be the surviving entity or the surviving   entity thereof shall assume the obligations of such Foreign Borrower under this   Agreement and the other Loan Documents pursuant to such documents, instruments and   agreements and further actions which the Administrative Agent may request (including,   without limitation, one or more opinions of legal counsel) in form and substance   acceptable to the Administrative Agent, (iii) any Subsidiary (other than a Subsidiary that   is a Borrower) may liquidate or dissolve if Parent determines in good faith that such   liquidation or dissolution is in the best interests of Parent and its Subsidiaries and is not   materially disadvantageous to the Lenders (provided that in the event any such   liquidation or dissolution involves a Subsidiary Guarantor then the assets of such   Subsidiary (if any) shall be transferred to Parent or another Subsidiary Guarantor), (iv) a   Borrower or any Subsidiary may consummate a Permitted Acquisition and, subject to the   satisfaction of the conditions precedent set forth in Section 4.03, the Delstar Acquisition,   and (v) upon the occurrence of an Adverse Tax Ruling with respect to SWM Brazil or at   any time from and after the Effective Date with respect to P de Mal, Parent may (A)   abandon, transfer or otherwise dispose of its Equity Interest in SWM Brazil or P de Mal,   as applicable, to any one or more Persons or (B) undertake a Bankruptcy Action if Parent   determines in good faith that such abandonment, transfer, disposition or Bankruptcy   Action is in the best interests of Parent and its Subsidiaries; provided that any such   merger involving a Person that is not a wholly-owned Subsidiary immediately prior to   such merger shall not be permitted unless also permitted by Section 6.04;    (b) The Borrowers will not, nor will they permit any of their Subsidiaries to,   make any Asset Disposition, except for (i) Asset Dispositions among the Subsidiaries, (ii)   Asset Dispositions of equipment held by SWM Philippines as of the Effective Date in   and to a joint venture formed in the People’s Republic of China directly or indirectly by   Parent to the extent permitted under Section 6.04(f), (iii) Asset Dispositions to the extent   made in connection with an investment in a Person expressly permitted under Section   6.04(f); (iv) other Asset Dispositions of property that, together with all other property of   Borrowers and its Subsidiaries previously leased, sold or disposed of in Asset   Dispositions do not exceed $20,000,000 with respect to any one such Asset Disposition   or $45,000,000 in the aggregate for all such Asset Dispositions since the Effective Date;   and (v) Asset Dispositions permitted under Section 6.03(a)(v).   (c) The Borrowers will not, nor will they permit any of their Subsidiaries to,   engage to any material extent in any business other than businesses of the type conducted   by each such Borrower and its Subsidiaries on the date of execution of this Agreement   and businesses reasonably related thereto.   SECTION 6.04. Investments, Loans, Advances, Guarantees and   Acquisitions.  The Borrowers will not, nor will they permit any of their Subsidiaries to,   purchase, hold or acquire (including pursuant to any merger with any Person that was not a   wholly-owned Subsidiary prior to such merger) any Equity Interests, evidences of indebtedness   or other securities (including any option, warrant or other right to acquire any of the foregoing)   of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or   permit to exist any investment or any other interest in, any other Person, or purchase or otherwise     

 

   75   CHI 64213081v14   acquire (in one transaction or a series of transactions) any assets of any other Person constituting   a business unit, except:   (a) Permitted Investments;   (b) investments by any Borrower existing on the date hereof and on the   Delstar Acquisition Effective Date in the Equity Interests of its Subsidiaries;   (c) investments (i) to consummate Permitted Acquisitions and, subject to the   satisfaction of the conditions precedent set forth in Section 4.03, the Delstar Acquisition   and (ii) consisting of transfers of the Equity Interests of any Foreign Subsidiary acquired   in a Permitted Acquisition or in the Delstar Acquisition by any Loan Party or other   Domestic Subsidiary to any other Foreign Subsidiary to the extent such transfer is not   prohibited under Section 6.03;   (d) (i) loans, advances or Guarantees of obligations which are not   Indebtedness made by any Borrower to any Subsidiary Guarantor and made by any   Subsidiary Guarantor to any Borrower or any other Subsidiary Guarantor, (ii) loans,   advances or Guarantees of obligations which are not Indebtedness made by any   Subsidiary that is not a Subsidiary Guarantor to any other Subsidiary that is not a   Subsidiary Guarantor, (iii) loans, advances or Guarantees of obligations which are not   Indebtedness made by any Subsidiary that is not a Subsidiary Guarantor to any Borrower   or any Subsidiary Guarantor and (iv) loans, advances or Guarantees of obligations which   are not Indebtedness made by any Borrower to any Subsidiary that is not a Subsidiary   Guarantor and made by any Subsidiary that is not a Subsidiary Guarantor to any   Borrower or any other Subsidiary that is not a Subsidiary Guarantor so long as at the time   of such loan, advance or Guarantee pursuant to this clause (iv), Parent on a consolidated   basis shall be in compliance with Section 6.10(b) as of the last day of the most recently   ended quarter for which financial statements of Parent have been delivered (and such   financial statements have been delivered in accordance with the terms hereof);   (e) Guarantees constituting Indebtedness permitted by Section 6.01;    (f) any other investments, loans or advances (other than any such   investments, loans or advances made in connection with acquiring from any Person other   than Parent or a Subsidiary (i) all or substantially all of the assets of a Person, (ii) all or   substantially all of any business or division of a Person, or (iii) a majority or more of the   Equity Interests of any Person), so long as prior to and after giving effect to any   such investment, loan or advance, Parent on a consolidated basis shall have a Net Debt to   EBITDA Ratio (after giving effect to any such investment, loan or advance, calculated on   a pro forma basis in a manner satisfactory to Administrative Agent) of not greater than   2.75:1.00 for the twelve (12) month period ending on the last day of the most recently   ended quarter for which financial statements of Parent have been delivered to   Administrative Agent pursuant to Section 5.01(b); and   (g) Swap Agreements entered into by any Borrower or any Subsidiary   permitted by Section 6.05     

 

   76   CHI 64213081v14   SECTION 6.05. Swap Agreements.  The Borrowers will not, and will not   permit any of their Subsidiaries to, enter into any Swap Agreement, except (a) Swap   Agreements entered into to hedge or mitigate risks to which any such Borrower or any   Subsidiary has actual exposure (other than those in respect of Equity Interests of any such   Borrower or any of its Subsidiaries) and (b) Swap Agreements entered into in order to   effectively cap, collar or exchange interest rates (from fixed to floating rates, from one   floating rate to another floating rate or otherwise) with respect to any interest-bearing   liability or investment of any such Borrower or any Subsidiary.   SECTION 6.06. Restricted Payments; Stock Purchases.   (a) The Borrowers will not, nor will they permit any of their Subsidiaries to,   declare, pay or make, or agree to declare, pay or make, directly or indirectly, any   Restricted Payment, except (i) each Borrower may declare and pay dividends with   respect to its Equity Interests payable solely in additional shares of its common stock, (ii)   Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests,   (iii) the Borrower may make Restricted Payments pursuant to and in accordance with   equity incentive plans or other benefit plans for management or employees of the   Borrower and its Subsidiaries, and (iv) Parent may declare and pay cash dividends with   respect to its Equity Interests, so long as prior to and after giving effect to any dividend,   Parent on a consolidated basis shall have a Net Debt to EBITDA Ratio (after giving   effect to any such dividend, calculated on a pro forma basis in a manner satisfactory to   Administrative Agent) of not greater than 2.75:1.00 for the 12 month period ending on   the last day of the most recently ended quarter for which financial statements of Parent   have been delivered to Administrative Agent pursuant to Section 5.01(b).   (b) Parent will not purchase, redeem or otherwise acquire any shares of its   Equity Interests except that Parent may purchase, redeem or acquire (i) shares of its   Equity Interests, so long as prior to and after giving effect to any such purchase,   redemption or other acquisition, Parent on a consolidated basis shall have a Net Debt to   EBITDA Ratio (after giving effect thereto, calculated on a pro forma basis in a manner   satisfactory to Administrative Agent) of not greater than 2.75:1.00 for the 12 month   period ending on the last day of the most recently ended quarter for which financial   statements of Parent have been delivered to Administrative Agent pursuant to Section   5.01(b), (ii) its Equity Interests in connection with its employee 401(k) retirement plan,   and (iii) its Equity Interests sold in connection with a cashless exercise of stock options   granted under Parent’s equity participation plan.   SECTION 6.07. Transactions with Affiliates.  The Borrowers will not, nor   will they permit any of their Subsidiaries to, sell, lease or otherwise transfer any property or   assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise   engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of   business at prices and on terms and conditions not less favorable to any Borrower or such   Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)   transactions between or among either of the Borrowers and their wholly owned Subsidiaries not   involving any other Affiliate, (c) any Restricted Payment permitted by Section 6.06; (d) any   transaction which is not permitted (in whole or in part) under Section 6.07(a) above entered into     

 

   77   CHI 64213081v14   by Parent or any of its Subsidiaries with a joint venture of Parent or any of its Subsidiaries (but   that is not a Subsidiary of Parent) to the extent such transaction (or the portion thereof which is   not permitted under Section 6.07(a)) constitutes an investment permitted under Section 6.04, (e)   customary fees paid, and reimbursement of reasonable expenses, to members of the board of   directors of Parent or any of its Subsidiaries, (f) customary compensation (including salaries and   bonuses) paid, and reimbursement of reasonable expenses, to officers and employees of Parent or   any Subsidiary of Parent and (g) pursuant to one of more transaction permitted under Section   6.03(b)(ii).   SECTION 6.08. Restrictive Agreements.  The Borrowers will not, nor will   they permit any of their Subsidiaries to, directly or indirectly, enter into, incur or permit to exist   any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a)   the ability of any such Borrower or any Subsidiary to create, incur or permit to exist any Lien   upon any of the property or assets of any Borrower or any of its Subsidiaries or (b) the ability of   any Subsidiary to pay dividends or other distributions with respect to any shares of its capital   stock or to make or repay loans or advances to any Borrower or any other Subsidiary or to   Guarantee Indebtedness of any such Borrower or any other Subsidiary; provided that (i) the   foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement, (ii)   the foregoing shall not apply to restrictions and conditions existing on the date hereof identified   on Schedule 6.08 (but shall apply to any extension or renewal of, or any amendment or   modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall   not apply to customary restrictions and conditions contained in agreements relating to the sale of   assets or Equity Interests of a Subsidiary pending such sale, provided that such restrictions and   conditions apply only to the Subsidiary or such Equity Interests that are to be sold and such sale   is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or   conditions imposed by any agreement relating to secured Indebtedness permitted by this   Agreement if such restrictions or conditions apply only to the property or assets securing such   Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in leases   restricting the assignment thereof, (vi) the foregoing shall not apply to customary encumbrances   or restrictions in joint venture agreements, asset sale agreements, sale-leaseback agreements,   stock sale agreements and other similar agreements, which restrictions relate solely to the   activities of such joint venture or are otherwise applicable only to the assets that are the subject   to such agreement, (vii) the foregoing shall not apply to any such agreement imposed in   connection with consignment agreements entered into in the ordinary course of business, (viii)   the foregoing shall not apply to customary anti-assignment provisions contained in agreements   entered into in the ordinary course of business, (ix) the foregoing shall not apply to customary   subordination of subrogation, contribution and similar claims contained in guaranties permitted   hereunder, (x) the foregoing shall not apply to customary restrictions on cash deposits or other   deposits imposed by customers under contracts entered into in the ordinary course of business,   (xi) the foregoing shall not apply to customary restrictions on the transfer, lease, or license of any   property or asset of any Loan Party in effect on the Effective Date that were entered into in the   ordinary course of business, and (xii) the foregoing shall not apply to encumbrances or   restrictions in documents governing Indebtedness assumed or incurred under Section 6.01(vi) or   existing with respect to any Person or the property or assets of such Person acquired by Parent or   any Subsidiary of Parent in an acquisition permitted hereunder, provided, further, that such   encumbrances and restrictions are not applicable to any Person or the property or assets of any   Person other than such acquired Person or the property or assets of such acquired Person.     

 

   78   CHI 64213081v14   SECTION 6.09. Amendment of Material Documents.  Borrowers shall not   amend, modify or waive any of its rights under its articles of association, certificate of   incorporation, by-laws, operating, management or partnership agreement or other organizational   documents to the extent any such amendment, modification or waiver would be materially   adverse or could reasonably be expected to be materially adverse to Lenders.   SECTION 6.10. Financial Covenants.   (a) Interest Coverage Ratio.  Borrowers shall not permit the Interest Coverage   Ratio to be less than 3.50 to 1.00 as of the last day of any fiscal quarter for the four fiscal   quarter period then ending.   (b) Maximum Net Debt to EBITDA Ratio.  Borrowers shall not permit the   Net Debt to EBITDA Ratio to be greater than 3.00 to 1.00 as of the last day of any fiscal   quarter for the four fiscal quarter period then ending.   SECTION 6.11. Fiscal Year.  No Borrower shall change its fiscal year to   end on any date other than December 31 of each year.   SECTION 6.12. Excluded Subsidiaries.  From and after the commencement   of any proceeding, filing or other action (whether judicial or non-judicial) seeking a liquidation,   reorganization or other relief under any federal, state or foreign bankruptcy, insolvency,   receivership or other similar laws now or hereinafter in effect, or any other cessation of   operations and settlement with creditors, in any such case with respect to either SWM Brazil or P   de Mal (any such proceeding, filing or action, a “Bankruptcy Action”), SWM Brazil or P de Mal,   to the extent subject to such Bankruptcy Action, as applicable, shall not engage in any business   or activity other than the completion of the liquidation, reorganization or other requested relief   with respect thereto and will not obtain ownership of or acquire any assets (other than in   connection with the liquidation, reorganization or other requested relief with respect thereto), or   incur any material liabilities, in each case, from and after the date of such Bankruptcy Action   (other than those (a) that are incidental to the maintenance of its existence in compliance with   applicable law, (b) reasonably necessary in connection with the completion of the liquidation,   reorganization or other requested relief with respect thereto and (c) that are incidental to legal,   tax and accounting matters in connection with any of the foregoing activities) and no Borrower   nor any of its Subsidiaries shall make any loans or other investments in or to or enter into any   other transactions with SWM Brazil or P de Mal, as applicable, unless such loans, investments or   transactions would be necessary in connection with the undertaking of the matters described in   clauses (a) through (c) above and are otherwise permitted hereunder.     ARTICLE VII      EVENTS OF DEFAULT   If any of the following events (“Events of Default”) shall occur:   (a) the Borrowers shall fail to pay any principal of any Loan or any   reimbursement obligation in respect of any LC Disbursement or any cash collateral   amount due pursuant to Section 2.06(j) when and as the same shall become due and     

 

   79   CHI 64213081v14   payable, whether at the due date thereof or at a date fixed for prepayment thereof or   otherwise;   (b) the Borrowers shall fail to pay any interest on any Loan or any fee or any   other amount (other than an amount referred to in clause (a) of this Article) payable under   this Agreement or the other Loan Documents, when and as the same shall become due   and payable, and such failure shall continue unremedied for a period of five days;   (c) any representation or warranty made or deemed made by or on behalf of   the Borrowers or any Subsidiary in or in connection with this Agreement or any other   Loan Document or any amendment or modification hereof or thereof or waiver hereunder   or thereunder, or in any report, certificate, financial statement or other document   furnished pursuant to or in connection with this Agreement or any other Loan Document   or any amendment or modification hereof or thereof or waiver hereunder or thereunder,   shall prove to have been incorrect in any material respect when made or deemed made;   (d) the Borrowers shall fail to observe or perform any covenant, condition or   agreement contained in Section 5.02,  5.03 (with respect to the Borrowers’ existence),   5.08, 5.12 or in Article VI;   (e) the Borrowers shall fail to observe or perform any covenant, condition or   agreement contained in this Agreement (other than those specified in clause (a), (b) or (d)   of this Article), and such failure shall continue unremedied for a period of thirty (30) days   after notice thereof from the Administrative Agent to the Borrowers (which notice will be   given at the request of any Lender);   (f) the Borrowers shall fail to make any payment (whether of principal or   interest and regardless of amount) in respect of any Material Indebtedness, when and as   the same shall become due and payable;   (g) any default or event of default occurs under any Material Indebtedness and   continues beyond any applicable grace, notice or cure period, that results in any Material   Indebtedness becoming due prior to its scheduled maturity or that enables or permits the   holder or holders of any Material Indebtedness or any trustee or agent on its or their   behalf to cause any Material Indebtedness to become due, or to require the prepayment,   repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided   that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of   the voluntary sale or transfer of the property or assets securing such Indebtedness;   (h) an involuntary proceeding shall be commenced or an involuntary petition   shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Loan   Party or any Material Subsidiary (other than, from and after and as a result of the   occurrence of an Adverse Tax Ruling, SWM Brazil) or its debts, or of a substantial part   of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or   similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee,   custodian, sequestrator, conservator or similar official for any Loan Party or any Material   Subsidiary (other than, from and after and as a result of the occurrence of an Adverse Tax     

 

   80   CHI 64213081v14   Ruling, SWM Brazil) or for a substantial part of its assets, and, in any such case, such   proceeding or petition shall continue undismissed for sixty (60) days or an order or   decree approving or ordering any of the foregoing shall be entered;   (i) any Loan Party or any Material Subsidiary (other than, from and after and   as a result of the occurrence of an Adverse Tax Ruling, SWM Brazil) shall (i) voluntarily   commence any proceeding or file any petition seeking liquidation, reorganization or other   relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar   law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a   timely and appropriate manner, any proceeding or petition described in clause (h) of this   Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,   sequestrator, conservator or similar official for any Borrower or any such Subsidiary or   for a substantial part of its assets, (iv) file an answer admitting the material allegations of   a petition filed against it in any such proceeding, (v) make a general assignment for the   benefit of creditors or (vi) take any action for the purpose of effecting any of the   foregoing;   (j) any Loan Party or any Material Subsidiary (other than, from and after and   as a result of the occurrence of an Adverse Tax Ruling, SWM Brazil) shall become   unable, admit in writing its inability or fail generally to pay its debts as they become due;   (k) one or more judgments for the payment of money in an aggregate amount   in excess of $10,000,000 shall be rendered against any Loan Party, any Material   Subsidiary or any combination thereof (other than, from and after and as a result of the   occurrence of an Adverse Tax Ruling, SWM Brazil) and the same shall remain   undischarged for a period of thirty (30) consecutive days during which execution shall   not be effectively stayed, or any action shall be legally taken by a judgment creditor to   attach or levy upon any assets of any Borrower or any Subsidiary to enforce any such   judgment;   (l) an ERISA Event shall have occurred that, in the opinion of the Required   Lenders, when taken together with all other ERISA Events that have occurred, could   reasonably be expected to result in a Material Adverse Effect;   (m) a Change in Control shall occur;   (n) the occurrence of any “default”, as defined in any Loan Document (other   than this Agreement) or the breach of any of the terms or provisions of any Loan   Document (other than this Agreement), which default or breach continues beyond any   period of grace or cure therein provided or, if no such grace period is provided for   therein, continues for a period of fifteen (15) days after notice thereof from the   Administrative Agent to the Borrowers (which notice will be given at the request of any   Lender); or   (o) the Loan Guaranty herein or any Subsidiary Guaranty for any reason   ceases to be valid, binding and enforceable in accordance with its terms or any action   shall be taken to discontinue or to assert the invalidity or unenforceability of the Loan     

 

   81   CHI 64213081v14   Guaranty or any Subsidiary Guaranty, or any Guarantor shall fail to comply with any of   the terms or provisions of the Loan Guaranty or any Subsidiary Guaranty to which it is a   party, or any Guarantor shall deny that it has any further liability under the Loan   Guaranty or any Subsidiary Guaranty to which it is a party or shall give notice to such   effect; or    (p) Article X herein for any reason ceases to be valid, binding and enforceable   in accordance with its terms or any Loan Party shall challenge the enforceability of any   Loan Document, or any provision therein, or shall assert in writing, or engage in any   action or inaction based on any such assertion, that any provision of any of the Loan   Documents has ceased to be or otherwise is not valid, binding and enforceable in   accordance with its terms;   then, and in every such event (other than an event with respect to any Borrower or any   Subsidiary described in clause (h) or (i) of this Article), and at any time thereafter during the   continuance of such event, the Administrative Agent may, and at the request of the Required   Lenders shall, by notice to the Borrowers, take either or both of the following actions, at the   same or different times:  (i) terminate the Commitments, and thereupon the Commitments shall   terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in   whole (or in part, in which case any principal not so declared to be due and payable may   thereafter be declared to be due and payable), and thereupon the principal of the Loans so   declared to be due and payable, together with accrued interest thereon and all fees and other   obligations of the Borrowers accrued hereunder, shall become due and payable immediately,   without presentment, demand, protest or other notice of any kind, all of which are hereby waived   by the Borrowers; and in case of any event with respect to the Borrowers or any Subsidiary   described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and   the principal of the Loans then outstanding, together with accrued interest thereon and all fees   and other obligations of the Borrowers accrued hereunder, shall automatically become due and   payable, without presentment, demand, protest or other notice of any kind, all of which are   hereby waived by the Borrowers.  Upon the occurrence and the continuance of an Event of   Default, the Administrative Agent may, and at the request of the Required Lenders shall,   exercise any rights and remedies provided to the Administrative Agent and/or Lenders under the   Loan Documents or at law or equity.   ARTICLE VIII      THE ADMINISTRATIVE AGENT   Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative   Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf,   including execution of the other Loan Documents, and to exercise such powers as are delegated   to the Administrative Agent by the terms hereof and of the other Loan Documents, together with   such actions and powers as are reasonably incidental thereto.   The bank serving as the Administrative Agent hereunder shall have the same rights and   powers in its capacity as a Lender as any other Lender and may exercise the same as though it   were not the Administrative Agent, and such bank and its Affiliates may accept deposits from,     

 

   82   CHI 64213081v14   lend money to and generally engage in any kind of business with the Loan Parties or any   Subsidiary of a Loan Party or other Affiliate thereof as if it were not the Administrative Agent   hereunder.   The Administrative Agent shall not have any duties or obligations except those expressly   set forth in the Loan Documents.  Without limiting the generality of the foregoing, (a) the   Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of   whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have   any duty to take any discretionary action or exercise any discretionary powers, except   discretionary rights and powers expressly contemplated by the Loan Documents that the   Administrative Agent is required to exercise in writing as directed by the Required Lenders (or   such other number or percentage of the Lenders as shall be necessary under the circumstances as   provided in Section 9.02) and (c) except as expressly set forth in the Loan Documents, the   Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to   disclose, any information relating to the Borrowers or any of its/their Subsidiaries that is   communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates   in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken   by it with the consent or at the request of the Required Lenders (or such other number or   percentage of the Lenders as shall be necessary under the circumstances as provided in Section   9.02) or in the absence of its own gross negligence or willful misconduct.  The Administrative   Agent shall be deemed not to have knowledge of any Default unless and until written notice   thereof is given to the Administrative Agent by the Borrowers or a Lender, and the   Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into   (i) any statement, warranty or representation made in or in connection with any Loan Document,   (ii) the contents of any certificate, report or other document delivered hereunder or in connection   with any Loan Document, (iii) the performance or observance of any of the covenants,   agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,   enforceability, effectiveness or genuineness of any Loan Document or any other agreement,   instrument or document or (v) the satisfaction of any condition set forth in Article IV or   elsewhere herein or in any other Loan Document, other than to confirm receipt of items   expressly required to be delivered to the Administrative Agent.   The Administrative Agent shall be entitled to rely upon, and shall not incur any liability   for relying upon, any notice, request, certificate, consent, statement, instrument, document or   other writing believed by it to be genuine and to have been signed or sent by the proper Person.    The Administrative Agent also may rely upon any statement made to it orally or by telephone   and believed by it to be made by the proper Person, and shall not incur any liability for relying   thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for the   Borrowers), independent accountants and other experts selected by it, and shall not be liable for   any action taken or not taken by it in accordance with the advice of any such counsel,   accountants or experts.   The Administrative Agent may perform any and all its duties and exercise its rights and   powers by or through any one or more sub-agents appointed by the Administrative Agent.  The   Administrative Agent and any such sub-agent may perform any and all its duties and exercise its   rights and powers through their respective Related Parties. The exculpatory provisions of the   preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the     

 

   83   CHI 64213081v14   Administrative Agent and any such sub-agent, and shall apply to their respective activities in   connection with the syndication of the credit facilities provided for herein as well as activities as   Administrative Agent.   Subject to the appointment and acceptance of a successor Administrative Agent as   provided in this paragraph, the Administrative Agent may resign at any time by notifying the   Lenders, the Issuing Bank and the Borrowers.  Upon any such resignation, the Required Lenders   shall have the right, in consultation with the Borrowers, to appoint a successor.  If no successor   shall have been so appointed by the Required Lenders and shall have accepted such appointment   within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then   the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a   successor Administrative Agent which shall be a bank with an office in New York, New York, or   an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent   hereunder by a successor, such successor shall succeed to and become vested with all the rights,   powers, privileges and duties of the retiring Administrative Agent, and the retiring   Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees   payable by the Borrowers to a successor Administrative Agent shall be the same as those payable   to its predecessor unless otherwise agreed among the Borrowers and such successor.  After the   Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03   shall continue in effect for the benefit of such retiring Administrative Agent, its sub agents and   their respective Related Parties in respect of any actions taken or omitted to be taken by any of   them while it was acting as Administrative Agent.   Each Lender acknowledges that it has, independently and without reliance upon the   Administrative Agent or any other Lender and based on such documents and information as it   has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.    Each Lender also acknowledges that it will, independently and without reliance upon the   Administrative Agent or any other Lender and based on such documents and information as it   shall from time to time deem appropriate, continue to make its own decisions in taking or not   taking action under or based upon this Agreement, any other Loan Document or related   agreement or any document furnished hereunder or thereunder.   Each Lender hereby agrees that (a) it has requested a copy of each Report prepared by or   on behalf of the Administrative Agent; (b) the Administrative Agent (i) makes no representation   or warranty, express or implied, as to the completeness or accuracy of any Report or any of the   information contained therein or any inaccuracy or omission contained in or relating to a Report   and (ii) shall not be liable for any information contained in any Report; (c) the Reports are not   comprehensive audits or examinations, and that any Person performing any examination or   inspection will inspect only specific information regarding the Loan Parties and will rely   significantly upon the Loan Parties’ books and records, as well as on representations of the Loan   Parties’ personnel and that the Administrative Agent undertakes no obligation to update, correct   or supplement the Reports; (d) it will keep all Reports confidential and strictly for its internal   use, not share the Report with any Loan Party or any other Person except as otherwise permitted   pursuant to this Agreement; and (e) without limiting the generality of any other indemnification   provision contained in this Agreement, it will pay and protect, and indemnify, defend, and hold   the Administrative Agent and any such other Person preparing a Report harmless from and   against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including     

 

   84   CHI 64213081v14   reasonable attorney fees) incurred by as the direct or indirect result of any third parties who   might obtain all or part of any Report through the indemnifying Lender.   By accepting the benefits of the Loan Documents, any Affiliate of a Lender that is owed   any Obligation is bound by the terms of the Loan Documents.  Notwithstanding the foregoing:    (a) neither Administrative Agent, any Lender nor any Borrower or Guarantor shall be obligated   to deliver any notice or communication required to be delivered to any Lender under any Loan   Documents to any Affiliate of any Lender; and (b) no Affiliate of any Lender that is owed any   Obligation shall be included in the determination of the Required Lenders or entitled to consent   to, reject, or participate in any manner in any amendment, waiver or other modification of any   Loan Document.  The Administrative Agent shall deal solely and directly with the related Lender   of any such Affiliate in connection with all matters relating to the Loan Documents.  The   Obligations owed to such Affiliate shall be considered the Obligations of its related Lender for   all purposes under the Loan Documents and such Lender shall be solely responsible to the other   parties hereto for all the obligations of such Affiliate under any Loan Document.  It is understood   and agreed that the rights and benefits under this Agreement, the Loan Guaranty and each   Subsidiary Guaranty of each Product Provider, in such capacity, consist exclusively of such   Product Provider’s right to share in payments and collections under the Loan Guaranty and each   Subsidiary Guaranty; provided that, for the avoidance of doubt, (i) any Banking Services   Obligations and any Swap Obligations of any Borrower or any Subsidiary shall be guaranteed   pursuant to the Loan Guaranty and each Subsidiary Guaranty only to the extent that, and for so   long as, the other Obligations are so guaranteed, and (ii) any release of any Loan Party shall not   require the consent of any holders of Banking Services Obligations or Swap Obligations.    Notwithstanding any other provision in this Agreement, the Loan Guaranty or any Subsidiary   Guaranty, no Product Provider shall, with respect to Swap Obligations and/or Banking Services   Obligations, be able to take any action in respect of this Agreement, the Loan Guaranty or any   Subsidiary Guaranty nor instruct the Required Lenders or the Administrative Agent to take any   such action or have any rights in connection with the management or release of any of the   obligations of any Loan Party under this Agreement, the Loan Guaranty or any Subsidiary   Guaranty.  By accepting the benefits of the Loan Guaranty and each Subsidiary Guaranty, each   Product Provider shall be deemed to have appointed the Administrative Agent as its agent and   agreed to be bound by the Loan Documents as a Guaranteed Party, subject to the limitations set   forth in this Article VIII; provided, that the Administrative Agent shall not owe any fiduciary   duty, duty of loyalty, duty of care, duty of disclosure or any other obligation whatsoever to any   Product Provider with respect to any Swap Obligations or any Banking Services Obligations.    The Administrative Agent shall have no duty to determine the amount or the existence of any   Banking Services Obligations or any Swap Obligations.  In connection with any such distribution   of payments and collections or termination or release by the Administrative Agent of any Loan   Parties hereunder or thereunder, the Administrative Agent shall be entitled to assume no amounts   are due with respect to Banking Services Obligations or Swap Obligations unless such Product   Provider has notified the Administrative Agent in writing of the amount of any such liability   owed to it at least five (5) Business Days to such distribution, termination or release.     

 

   85   CHI 64213081v14   ARTICLE IX      MISCELLANEOUS   SECTION 9.01. Notices.     (a) Except in the case of notices and other communications expressly   permitted to be given by telephone (and subject to clause (b) below), all notices and other   communications provided for herein shall be in writing and shall be delivered by hand or   overnight courier service, mailed by certified or registered mail or sent by telecopy, as   follows:   (i) if to the Borrower, to it at 100 North Point Center East, Suite 600,   Alpharetta, Georgia  30022, Attention of the General Counsel (Telecopy No.   (770) 569-4275);   (ii) if to the Administrative Agent, to:   (A) JPMorgan Chase Bank, N.A., Loan and Agency Services   Group, 10 South Dearborn Street, Floor 07, Chicago, Illinois  60603-2300,   Attention Darren Cunningham (Telecopy No. (888) 292-9533; E-mail   jpm.agency.servicing.4@jpmchase.com), with a copy to JPMorgan Chase   Bank, N.A., 3475 Piedmont Road NE, Floor 18, Atlanta, Georgia  30305-   2954, Attention of John Horst (Telecopy No. (404) 926-2592); and   (B) JPMorgan Europe Limited, 25 Bank Street, Floor 6, Canary   Wharf, London, United Kingdom  E14 5JP, Attention to The Manager   (Telecopy No. +44 (0) 20 77772360; E-mail   loan_and_agency_london@jpmorgan.com);   (iii) if to the Issuing Bank, to it at 10 South Dearborn Street, Floor 07,   Chicago, Illinois  60603-2300, Attention of Pavithra Charles (Telecopy No. (312)   256-2608; E-mail Chicago.lc.agency.activity.team@jpmchase.com);    (iv) if to Swingline Lender, to it at JPMorgan Chase Bank, N.A., Loan   and Agency Services Group, 10 South Dearborn Street, Floor 07, Chicago,   Illinois  60603-2300, Attention Darren Cunningham (Telecopy No. (888) 292-   9533; E-mail jpm.agency.servicing.4@jpmchase.com); and    (v) if to any other Lender, to it at its address (or telecopy number) set   forth in its Administrative Questionnaire.   (b) Notices and other communications to the Administrative Agent and the   Lenders hereunder may be delivered or furnished by electronic communications pursuant   to procedures approved by the Administrative Agent; provided that the foregoing shall   not apply to notices pursuant to Article II unless otherwise agreed by the Administrative   Agent and the applicable Lender.  The Administrative Agent or each Borrower may, in its   discretion, agree to accept notices and other communications to it hereunder by electronic     

 

   86   CHI 64213081v14   communications pursuant to procedures approved by it; provided that approval of such   procedures may be limited to particular notices or communications.   (c) Any party hereto may change its address or telecopy number for notices   and other communications hereunder by notice to the other parties hereto.  All notices   and other communications given to any party hereto in accordance with the provisions of   this Agreement shall be deemed to have been given on the date of receipt.   SECTION 9.02. Waivers; Amendments.     (a) No failure or delay by the Administrative Agent, the Issuing Bank or any   Lender in exercising any right or power hereunder or under any other Loan Document   shall operate as a waiver thereof, nor shall any single or partial exercise of any such right   or power, or any abandonment or discontinuance of steps to enforce such a right or   power, preclude any other or further exercise thereof or the exercise of any other right or   power.  The rights and remedies of the Administrative Agent, the Issuing Bank and the   Lenders hereunder and under any other Loan Document are cumulative and are not   exclusive of any rights or remedies that they would otherwise have.  No waiver of any   provision of any Loan Document or consent to any departure by any Loan Party   therefrom shall in any event be effective unless the same shall be permitted by clause (b)   of this Section, and then such waiver or consent shall be effective only in the specific   instance and for the purpose for which given.  Without limiting the generality of the   foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as   a waiver of any Default, regardless of whether the Administrative Agent, any Lender or   the Issuing Bank may have had notice or knowledge of such Default at the time.   (b) Neither this Agreement nor any other Loan Document nor any provision   hereof or thereof may be waived, amended or modified, except (i) in the case of this   Agreement (except as provided in clause (ii) below), pursuant to an agreement or   agreements in writing entered into by the Borrowers, the Administrative Agent and the   Required Lenders, (ii) in the case of any amendment to this Agreement for the sole   purpose of adding Additional Borrower(s) pursuant to and in accordance with Section   5.09(b), pursuant to an agreement or agreements in writing entered into by the Borrowers,   the Additional Borrower(s) and the Administrative Agent, or (iii) in the case of any   amendment to any Loan Document other than this Agreement, pursuant to an agreement   or agreements in writing entered into by the Administrative Agent and the Loan Party or   Loan Parties that are parties thereto, with the consent of the Required Lenders; provided   that no such agreement shall (A) increase any Commitment of any Lender without the   written consent of such Lender, (B) reduce the principal amount of any Loan or LC   Disbursement or reduce the rate of interest thereon (other than to reduce the default rate   accruing under and in accordance with Section 2.13(d)), or reduce any fees payable   hereunder, without the written consent of each Lender directly affected thereby, (C)   postpone any scheduled date of payment of the principal amount of any Loan or LC   Disbursement, or any date for the payment of any interest thereon, or any fees payable   hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the   scheduled date of expiration of any Commitment, without the written consent of each   Lender directly affected thereby, (D) change Section 2.18(b) or (d) in a manner that     

 

   87   CHI 64213081v14   would alter the pro rata sharing of payments required thereby, without the written consent   of each Lender, (E) change any of the provisions of this Section or the definition of   “Required Lenders” or any other provision hereof specifying the number or percentage of   Lenders required to waive, amend or modify any rights hereunder or make any   determination or grant any consent hereunder, without the written consent of each   Lender, or (F) except in connection with a transaction permitted by Section 6.03, release   any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty, without the   written consent of each Lender; provided, further, that no such agreement shall amend,   modify or otherwise affect the rights or duties of the Administrative Agent, the Issuing   Bank or the Swingline Lender hereunder without the prior written consent of the   Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be (it   being understood that any change to Section 2.20 shall require the consent of the   Administrative Agent, the Swingline Lender and the Issuing Bank).  The Administrative   Agent may amend the Commitment Schedule to reflect assignments entered into pursuant   to Section 9.04 or increases or decreases in Commitments pursuant to Section 2.09.    Notwithstanding anything contained in this Agreement or any other Loan Document to   the contrary, the Administrative Agent and the Loan Parties may amend or modify this   Agreement and any other Loan Document by written agreement signed by the   Administrative Agent and the Loan Parties to cure any ambiguity, omission, defect or   inconsistency herein or therein.   (c) [Intentionally Omitted.]   (d) If, in connection with any proposed amendment, waiver or consent    requiring the consent of “each Lender” or “each Lender affected thereby,” the consent of   the Required Lenders is obtained, but the consent of other necessary Lenders is not   obtained (any such Lender whose consent is necessary but not obtained being referred to   herein as a “Non-Consenting Lender”), then the Borrowers may elect to replace a Non-   Consenting Lender as a Lender party to this Agreement, provided that, concurrently with   such replacement, (i) another bank or other entity which is acceptable to the Borrowers   and the Administrative Agent shall agree, as of such date, to purchase for cash the Loans   and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and   Assumption, to become a Lender for all purposes under this Agreement, to assume all   obligations of the Non-Consenting Lender to be terminated as of such date, to comply   with the requirements of clause (b) of Section 9.04, and provide each Class of the   Commitments of such Non-Consenting Lender and (ii) the applicable Borrower shall pay   to such Non-Consenting Lender in same day funds on the day of such replacement (1) all   interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender   by such Borrower hereunder to and including the date of termination, including without   limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17,   and (2) an amount, if any, equal to the payment which would have been due to such   Lender on the day of such replacement under Section 2.16 had the Loans of such Non-   Consenting Lender been prepaid on such date rather than sold to the replacement Lender.   (e) Notwithstanding anything to the contrary in this Agreement, upon the   execution and delivery of all documentation required by Section 2.09 to be delivered in   connection with an increase to the Commitments, the Administrative Agent, the     

 

   88   CHI 64213081v14   Borrowers and the new or existing Lenders whose Commitments have been affected may   and shall enter into an amendment hereof (which shall be binding on all parties hereto   and the new Lenders) solely for the purpose of reflecting any new Lenders and their new   Commitments and any increase in the Commitment of any existing Lender.   SECTION 9.03. Expenses; Indemnity; Damage Waiver.     (a) The Borrowers shall pay (i) all reasonable and documented out-of-pocket   expenses incurred by the Administrative Agent and its Affiliates, including the   reasonable fees, charges and disbursements of counsel for the Administrative Agent, in   connection with the syndication of the credit facilities provided for herein, the   preparation and administration of the Loan Documents or any amendments,   modifications or waivers of the provisions of the Loan Documents (whether or not the   Transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable   and documented out-of-pocket expenses incurred by the Issuing Bank in connection with   the issuance, amendment, renewal or extension of any Letter of Credit or any demand for   payment thereunder and (iii) all documented out-of-pocket expenses incurred by the   Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and   disbursements of any counsel for the Administrative Agent, the Issuing Bank or any   Lender, in connection with the enforcement or protection of its rights in connection with   the Loan Documents, including its rights under this Section, or in connection with the   Loans made or Letters of Credit issued hereunder, including all such out-of pocket   expenses incurred during  any workout, restructuring or negotiations in respect of such   Loans or Letters of Credit.   (b) Each Borrower, jointly and severally, shall indemnify the Administrative   Agent, the Issuing Bank, and each Lender and each Related Party of any of the foregoing   Persons (each such Person being called an “Indemnitee”) against, and hold each   Indemnitee harmless from, any and all losses, claims, damages, liabilities and related   expenses, including the fees, charges and disbursements of any counsel for any   Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection   with, or as a result of (i) the execution or delivery of this Agreement and each other Loan   Document or any agreement or instrument contemplated hereby or thereby, the   performance by the parties hereto of their respective obligations hereunder or thereunder   or the consummation of the Transactions or any other transactions contemplated hereby,   (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any   refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the   documents presented in connection with such demand do not strictly comply with the   terms of such Letter of Credit), (iii) any actual or alleged presence or release of   Hazardous Materials on or from any property owned or operated by any Borrower or any   of its Subsidiaries, or any Environmental Liability related in any way to any Borrower or   any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or   proceeding relating to any of the foregoing, whether based on contract, tort or any other   theory and regardless of whether any Indemnitee is a party thereto; provided that such   indemnity shall not, as to any Indemnitee, be available to the extent that such losses,   claims, damages, liabilities or related expenses are determined by a court of competent   jurisdiction by final and nonappealable judgment to have resulted from the gross     

 

   89   CHI 64213081v14   negligence or willful misconduct of such Indemnitee.  This Section 9.03(b) shall not   apply with respect to Taxes other than any Taxes that represent losses or damages arising   from any non-Tax claim.   (c) To the extent that the Borrowers fail to pay any amount required to be paid   by them to the Administrative Agent, the Issuing Bank or the Swingline Lender under   clauses (a) or (b) of this Section, each Lender severally agrees to pay to the   Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be,   such Lender’s Applicable Percentage (determined as of the time that the applicable   unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided   that the unreimbursed expense or indemnified loss, claim, damage, liability or related   expense, as the case may be, was incurred by or asserted against the Administrative   Agent, the Issuing Bank or the Swingline Lender in its capacity as such.   (d) To the extent permitted by applicable law, the Borrowers shall not assert,   and hereby waive any claim against any Indemnitee, on any theory of liability, for   special, indirect, consequential or punitive damages (as opposed to direct or actual   damages) arising out of, in connection with, or as a result of, this Agreement or any   agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of   Credit or the use of the proceeds thereof.   (e) All amounts due under this Section shall be payable promptly after written   demand therefor.   SECTION 9.04. Successors and Assigns.     (a) The provisions of this Agreement shall be binding upon and inure to the   benefit of the parties hereto and their respective successors and assigns permitted hereby   (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that   (i) the Borrowers may not assign or otherwise transfer any of their respective rights or   obligations hereunder without the prior written consent of each Lender (and any   attempted assignment or transfer by the Borrowers without such consent shall be null and   void) and (ii) no Lender may assign or otherwise transfer its rights or obligations   hereunder except in accordance with this Section.  Nothing in this Agreement, expressed   or implied, shall be construed to confer upon any Person (other than the parties hereto,   their respective successors and assigns permitted hereby (including any Affiliate of the   Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in   clause (c) of this Section) and, to the extent expressly contemplated hereby, the Related   Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal   or equitable right, remedy or claim under or by reason of this Agreement.   (b) (i) Subject to the conditions set forth in clause (b)(ii) below, any   Lender may assign to one or more assignees all or a portion of its rights and obligations   under this Agreement (including all or a portion of its Commitments and the Loans at the   time owing to it) with the prior written consent (such consent not to be unreasonably   withheld) of:     

 

   90   CHI 64213081v14   (A) the Borrowers; provided that no consent of the Borrowers   shall be required for an assignment to a Lender, an Affiliate of a Lender,   an Approved Fund or, if an Event of Default has occurred and is   continuing, any other assignee;   (B) the Administrative Agent; provided that no consent of the   Administrative Agent shall be required for an assignment of any   Commitment to an assignee that is a Lender with a Commitment   immediately prior to giving effect to such assignment; and   (C) the Issuing Bank.   (ii) Assignments shall be subject to the following additional   conditions:   (A) except in the case of an assignment to a Lender, an Affiliate   of a Lender, an Approved Fund or an assignment of the entire remaining   amount of the assigning Lender’s Commitment or Loans of any Class, the   amount of the Commitment or Loans of the assigning Lender subject to   each such assignment (determined as of the date the Assignment and   Assumption with respect to such assignment is delivered to the   Administrative Agent) shall not be less than $5,000,000 unless the   Borrowers and the Administrative Agent otherwise consent; provided that   no such consent of the Borrowers shall be required if an Event of Default   has occurred and is continuing;   (B) each partial assignment shall be made as an assignment of a   proportionate part of all the assigning Lender’s rights and obligations   under this Agreement, provided that this clause shall not be construed to   prohibit the assignment of a proportionate part of all the assigning   Lender’s rights and obligations in respect of one Class of Commitments or   Loans;   (C) the parties to each assignment shall execute and deliver to   the Administrative Agent an Assignment and Assumption, together with a   processing and recordation fee of $3,500; and   (D) the assignee, if it shall not be a Lender, shall deliver to the   Administrative Agent an Administrative Questionnaire in which the   assignee designates one or more credit contacts to whom all syndicate-   level information (which may contain material non-public information   about the Borrowers and their Affiliates, the Loan Parties and their related   parties or their respective securities) will be made available and who may   receive such information in accordance with the assignee’s compliance   procedures and applicable laws, including federal and state securities laws.   For the purposes of this Section 9.04(b), the term “Approved Fund” has the following   meaning:     

 

   91   CHI 64213081v14   “Approved Fund” means any Person (other than a natural person) that is engaged in   making, purchasing, holding or investing in bank loans and similar extensions of credit in the   ordinary course of its business and that is administered or managed by (x) a Lender, (y) an   Affiliate of a Lender or (z) an entity or an Affiliate of an entity that administers or manages a   Lender.   (iii) Subject to acceptance and recording thereof pursuant to clause   (b)(iv) of this Section, from and after the effective date specified in each   Assignment and Assumption the assignee thereunder shall be a party hereto and,   to the extent of the interest assigned by such Assignment and Assumption, have   the rights and obligations of a Lender under this Agreement, and the assigning   Lender thereunder shall, to the extent of the interest assigned by such Assignment   and Assumption, be released from its obligations under this Agreement (and, in   the case of an Assignment and Assumption covering all of the assigning Lender’s   rights and obligations under this Agreement, such Lender shall cease to be a party   hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17   and 9.03).  Any assignment or transfer by a Lender of rights or obligations under   this Agreement that does not comply with this Section 9.04 shall be treated for   purposes of this Agreement as a sale by such Lender of a participation in such   rights and obligations in accordance with clause (c) of this Section.   (iv) The Administrative Agent, acting for this purpose as an agent of   the Borrowers, shall maintain at one of its offices a copy of each Assignment and   Assumption delivered to it and a register for the recordation of the names and   addresses of the Lenders, and the Commitments of, and principal amount of the   Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof   from time to time (the “Register”).  The entries in the Register shall be   conclusive, and the Borrowers, the Administrative Agent, the Issuing Bank and   the Lenders shall treat each Person whose name is recorded in the Register   pursuant to the terms hereof as a Lender hereunder for all purposes of this   Agreement, notwithstanding notice to the contrary.  The Register shall be   available for inspection by the Borrowers, the Issuing Bank and any Lender, at   any reasonable time and from time to time upon reasonable prior notice.   (v) Upon its receipt of a duly completed Assignment and Assumption   executed by an assigning Lender and an assignee, the assignee’s completed   Administrative Questionnaire (unless the assignee shall already be a Lender   hereunder), the processing and recordation fee referred to in clause (b) of this   Section and any written consent to such assignment required by clause (b) of this   Section, the Administrative Agent shall accept such Assignment and Assumption   and record the information contained therein in the Register; provided that if   either the assigning Lender or the assignee shall have failed to make any payment   required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b),   2.18(e) or 9.03(c), the Administrative Agent shall have no obligation to accept   such Assignment and Assumption and record the information therein in the   Register unless and until such payment shall have been made in full, together with   all accrued interest thereon.  No assignment shall be effective for purposes of this     

 

   92   CHI 64213081v14   Agreement unless it has been recorded in the Register as provided in this clause   (v).   (c) Any Lender may, without the consent of the Borrowers, the   Administrative Agent, the Issuing Bank or the Swingline Lender, sell participations to   one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s   rights and obligations under this Agreement (including all or a portion of its Commitment   and the Loans owing to it); provided that: (i) such Lender’s obligations under this   Agreement shall remain unchanged; (ii) such Lender shall remain solely responsible to   the other parties hereto for the performance of such obligations; and (iii) the Borrowers,   the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal   solely and directly with such Lender in connection with such Lender’s rights and   obligations under this Agreement.  Any agreement or instrument pursuant to which a   Lender sells such a participation shall provide that such Lender shall retain the sole right   to enforce this Agreement and to vote upon and/or approve any amendment, modification   or waiver of any provision of this Agreement; provided that such agreement or   instrument may provide that such Lender will not, without the consent of the Participant,   agree to any amendment, modification or waiver described in the first proviso to   Section 9.02(b) that affects such Participant.  The Borrowers agree that each Participant   shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 (subject to the   requirements and limitations therein, including the requirements under Section 2.17(f) (it   being understood that the documentation required under Section 2.17(f) shall be delivered   to the participating Lender)) to the same extent as if it were a Lender and had acquired its   interest by assignment pursuant to clause (b) of this Section; provided that such   Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it   were an assignee under clause (b) of this Section; and (B) shall not be entitled to receive   any greater payment under Section 2.15 or 2.17, with respect to any participation, than its   participating Lender would have been entitled to receive, except to the extent such   entitlement to receive a greater payment results from a Change in Law that occurs after   the Participant acquired the applicable participation.  To the extent permitted by law,   each Participant also shall be entitled to the benefits of Section 9.08 as though it were a   Lender, provided such Participant agrees to be subject to Section 2.18(d) as though it   were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose   as an agent of the Borrowers, maintain a register on which it enters the name and address   of each Participant and the principal amounts (and stated interest) of each Participant’s   interest in the Loans or other obligations under this Agreement (the “Participant   Register”); provided that no Lender shall have any obligation to disclose all or any   portion of the Participant Register to any Person (including the identity of any Participant   or any information relating to a Participant’s interest in any Commitments, Loans, Letters   of Credit or its other obligations under any Loan Document), except to the extent that   such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or   other obligation is in registered form under Section 5f.103-1(c) of the United States   Treasury Regulations.  The entries in the Participant Register shall be conclusive absent   manifest error, and such Lender shall treat each Person whose name is recorded in the   Participant Register as the owner of such participation for all purposes of this Agreement   notwithstanding any notice to the contrary.     

 

   93   CHI 64213081v14   (d) Any Lender may at any time pledge or assign a security interest in all or   any portion of its rights under this Agreement to secure obligations of such Lender,   including without limitation any pledge or assignment to secure obligations to a Federal   Reserve Bank, and this Section shall not apply to any such pledge or assignment of a   security interest; provided that no such pledge or assignment of a security interest shall   release a Lender from any of its obligations hereunder or substitute any such pledgee or   assignee for such Lender as a party hereto.   SECTION 9.05. Survival.  All covenants, agreements, representations and   warranties made by the Loan Parties in the Loan Documents and in the certificates or other   instruments  delivered in connection with or pursuant to this Agreement or any other Loan   Documents shall be considered to have been relied upon by the other parties hereto and shall   survive the execution and delivery of the Loan Documents and the making of any Loans and   issuance of any Letters of Credit, regardless of any investigation made by any such other party or   on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender   may have had notice or knowledge of any Default or incorrect representation or warranty at the   time any credit is extended hereunder, and shall continue in full force and effect as long as the   principal of or any accrued interest on any Loan or any fee or any other amount payable under   this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as   the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16, 2.17   and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the   consummation of the transactions contemplated hereby, the repayment of the Loans, the   expiration or termination of the Letters of Credit and the Commitments or the termination of this   Agreement or any provision hereof.   SECTION 9.06. Counterparts; Integration; Effectiveness.  This Agreement   may be executed in counterparts (and by different parties hereto on different counterparts), each   of which shall constitute an original, but all of which when taken together shall constitute a   single contract.  This Agreement, the other Loan Documents and any separate letter agreements   with respect to fees payable to the Administrative Agent constitute the entire contract among the   parties relating to the subject matter hereof and thereof and supersede any and all previous   agreements and understandings, oral or written, relating to the subject matter hereof and thereof.    Except as provided in Section 4.01, this Agreement shall become effective when it shall have   been executed by the Administrative Agent and when the Administrative Agent shall have   received counterparts hereof which, when taken together, bear the signatures of each of the other   parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto   and their respective successors and assigns.  Delivery of an executed counterpart of a signature   page of this Agreement by telecopy or other electronic transmission shall be effective as delivery   of a manually executed counterpart of this Agreement.   SECTION 9.07. Severability.  Any provision of this Agreement held to be   invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to   the extent of such invalidity, illegality or unenforceability without affecting the validity, legality   and enforceability of the remaining provisions hereof; and the invalidity of a particular provision   in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.     

 

   94   CHI 64213081v14   SECTION 9.08. Right of Setoff.  If an Event of Default shall have occurred   and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and   from time to time, to the fullest extent permitted by law, to setoff and apply any and all deposits   (general or special, time or demand, provisional or final) at any time held and other obligations at   any time owing by such Lender or Affiliate to or for the credit or the account of the Borrowers   against any and all of the Obligations held by such Lender, irrespective of whether or not such   Lender shall have made any demand under this Agreement and/or any of the other Loan   Documents and although such obligations may be unmatured.  The applicable Lender shall notify   the Borrowers and the Administrative Agent of such setoff or application, provided that any   failure to give or any delay in giving such notice shall not affect the validity of any such setoff or   application under this Section.  The rights of each Lender under this Section are in addition to   other rights and remedies (including other rights of setoff) which such Lender may have.   SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of   Process.     (a) The Loan Documents (other than those containing a contrary express   choice of law provision) shall be governed by and construed in accordance with the laws   of the State of New York.   (b) Each Borrower hereby irrevocably and unconditionally submits, for itself   and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of   New York sitting in New York County and of the United States District Court of the   Southern District of New York, and any appellate court from any thereof, in any action or   proceeding arising out of or relating to this Agreement, or for recognition or enforcement   of any judgment, and each of the parties hereto hereby irrevocably and unconditionally   agrees that all claims in respect of any such action or proceeding may be heard and   determined in such New York State or, to the extent permitted by law, in such federal   court.  Each of the parties hereto 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.  Nothing in this Agreement shall affect   any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise   have to bring any action or proceeding relating to this Agreement against the Borrowers   or their properties in the courts of any jurisdiction.   (c) Each Borrower hereby irrevocably and unconditionally waives, to the   fullest extent it may legally and effectively do so, any objection which it may now or   hereafter have to the laying of venue of any suit, action or proceeding arising out of or   relating to this Agreement or any other Loan Documents in any court referred to in clause   (b) of this Section.  Each of the parties hereto hereby irrevocably 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.   (d) Each party to this Agreement irrevocably consents to service of process in   the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other   Loan Document will affect the right of any party to this Agreement to serve process in   any other manner permitted by law.     

 

   95   CHI 64213081v14   SECTION 9.10. WAIVER OF JURY TRIAL.  EACH PARTY HERETO   HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,   ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING   DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT,   ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY   OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).    EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR   ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR   OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF   LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)   ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN   INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE   MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.   SECTION 9.11. Headings.  Article and Section headings and the Table of   Contents used herein are for convenience of reference only, are not part of this Agreement and   shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.   SECTION 9.12. Confidentiality.     (a) Each of the Administrative Agent, the Issuing Bank and the Lenders   agrees to maintain the confidentiality of the Information (as defined below), except that   Information may be disclosed (i) to its and its Affiliates’ directors, officers, employees   and agents, including accountants, legal counsel and other advisors (it being understood   that the Persons to whom such disclosure is made will be informed of the confidential   nature of such Information and instructed to keep such Information confidential), (ii) to   the extent requested by any regulatory authority, (iii) to the extent required by applicable   laws or regulations or by any subpoena or similar legal process, (iv) to any other party to   this Agreement, (v) in connection with the exercise of any remedies hereunder or any   suit, action or proceeding relating to this Agreement or any other Loan Document or the   enforcement of rights hereunder, (vi) subject to an agreement containing provisions   substantially the same as those of this Section, to (A) any assignee of or Participant in, or   any prospective assignee of or Participant in, any of its rights or obligations under this   Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or   derivative transaction relating to the Borrowers and their obligations, (vii) with the   consent of the Borrowers, or (viii) to the extent such Information (A) becomes publicly   available other than as a result of a breach of this Section or (B) becomes available to the   Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a   source other than the Borrowers.  For the purposes of this Section, “Information” means   all information received from the Borrowers relating to the Borrowers or their businesses,   other than any such information that is available to the Administrative Agent, the Issuing   Bank or any Lender on a non-confidential basis prior to disclosure by the Borrowers;   provided that, in the case of information received from the Borrowers after the date   hereof, such information is clearly identified at the time of delivery as confidential.  Any   Person required to maintain the confidentiality of Information as provided in this Section   shall be considered to have complied with its obligation to do so if such Person has     

 

   96   CHI 64213081v14   exercised the same degree of care to maintain the confidentiality of such Information as   such Person would accord to its own confidential information.   (b) EACH LENDER ACKNOWLEDGES THAT INFORMATION AS   DEFINED IN SECTION 9.12(a) FURNISHED TO IT PURSUANT TO THIS   AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION   CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR   RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED   COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-   PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-   PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND   APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.   (c) ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND   AMENDMENTS, FURNISHED BY THE BORROWERS OR THE   ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF   ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL   INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC   INFORMATION ABOUT THE BORROWERS, THE LOAN PARTIES AND THEIR   RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY,   EACH LENDER REPRESENTS TO THE BORROWERS AND THE   ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS   ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY   RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC   INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND   APPLICABLE LAW.   SECTION 9.13. Interest Rate Limitation.  Notwithstanding anything herein   to the contrary, if at any time the interest rate applicable to any Loan, together with all fees,   charges and other amounts which are treated as interest on such Loan under applicable law   (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”)   which may be contracted for, charged, taken, received or reserved by the Lender holding such   Loan in accordance with applicable law, the rate of interest payable in respect of such Loan   hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum   Rate and, to the extent lawful, the interest and Charges that would have been payable in respect   of such Loan but were not payable as a result of the operation of this Section shall be cumulated   and the interest and Charges payable to such Lender in respect of other Loans or periods shall be   increased (but not above the Maximum Rate therefor) until such cumulated amount, together   with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have   been received by such Lender.   SECTION 9.14. USA PATRIOT Act.  Each Lender that is subject to the   requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,   2001)) (the “Act”) hereby notifies the Borrowers that pursuant to the requirements of the Act, it   is required to obtain, verify and record information that identifies the Borrowers, which   information includes the name and address of the Borrowers and other information that will   allow such Lender to identify the Borrower in accordance with the Act.     

 

   97   CHI 64213081v14   SECTION 9.15. Judgment Currency.  If, for the purposes of obtaining   judgment in any court, it is necessary to convert a sum due hereunder or any other Loan   Document in one currency into another currency, the rate of exchange used shall be that at which   in accordance with normal banking procedures the Administrative Agent could purchase the first   currency with such other currency on the Business Day preceding that on which final judgment   is given.  The obligation of each Borrower in respect of any such sum due from it to the   Administrative Agent or the Lenders hereunder or under the other Loan Documents shall,   notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which   such sum is denominated in accordance with the applicable provisions of this Agreement (the   “Agreement Currency”), be discharged only to the extent that on the Business Day following   receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency,   the Administrative Agent may, in accordance with normal banking procedures, purchase the   Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so   purchased is less than the sum originally due to the Administrative Agent from any Borrower in   the Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding   any such judgment, to indemnify the Administrative Agent or the Person to whom such   obligation was owing against such loss.  If the amount of the Agreement Currency so purchased   is greater than the sum originally due to the Administrative Agent in such currency, the   Administrative Agent agrees to return the amount of any excess to such Borrower (or to any   other Person who may be entitled thereto under applicable law).   SECTION 9.16. Acknowledgements.  The parties hereto agree that, on the   Effective Date, the following transactions shall be deemed to occur automatically, without   further action by any party hereto:    (a) The Original Credit Agreement shall be deemed to be amended and   restated in its entirety in the form of and pursuant to this Agreement.   (b) All “Loans” outstanding under the Original Credit Agreement shall be   deemed to be Revolving Loans under this Agreement.  All issued and outstanding   “Letters of Credit” issued pursuant to the Original Credit Agreement shall be deemed to   be Letters of Credit issued under this Agreement.  All other “Obligations” existing under   the Original Credit Agreement shall be deemed to be outstanding under this Agreement   and, in each case (i) are in all respects enforceable with only the terms thereof being   modified as provided by this Agreement and (ii) shall in all respects be continuing after   the Effective Date and shall be deemed to be Obligations governed by this Agreement.    On the Effective Date, each Lender under the Original Credit Agreement that has a   “Commitment” under the Original Credit Agreement shall receive payments from, or   shall make payments to, the Administrative Agent such that each such Lender shall have   funded its portion of its Commitment on the Effective Date.  On the Effective Date, all   outstanding “Commitments,” “Loans” and other outstanding advances under the Original   Credit Agreement shall be reallocated among the Lenders (including any newly added   Lenders) under this Agreement in accordance with such Lenders’ respective revised   Applicable Percentages.    (c) All references to the Original Credit Agreement or the “Credit   Agreement” in the Existing Debt Documents executed in connection with the Original     

 

   98   CHI 64213081v14   Credit Agreement, whether on the Original Credit Agreement’s “Effective Date” or at   any time thereafter but prior to the Effective Date, shall be deemed to include references   to this Agreement, as amended, restated, supplemented or otherwise modified from time   to time.    (d) Each Loan Party hereby acknowledges and agrees that each of the   Existing Debt Documents that are not superseded by corresponding Loan Documents   executed and delivered in connection with this Agreement to which such Loan Party is a   party remains in full force and effect and hereby ratifies and reaffirms all of its respective   repayment and performance obligations, contingent or otherwise, under each of such   Existing Debt Documents to which it is a party and, to the extent such Loan Party   guaranteed any of the Obligations as defined in the Original Credit Agreement pursuant   to any of such Existing Debt Documents as security for such Obligations, such Loan   Party, as the case may be, hereby ratifies and reaffirms such guaranty and agrees that   such guaranty secures all of the Obligations under this Agreement and remain in full   force and effect after giving effect to this Agreement. The execution, delivery and   effectiveness of this Agreement shall not operate as a waiver of any right, power or   remedy of the Administrative Agent or the Lenders under the Original Credit Agreement   or any Existing Debt Document, nor constitute a waiver of any provision of the Original   Credit Agreement or any other Existing Debt Document, except as specifically set forth   therein or in a corresponding Loan Document.   (e) Each party to this Agreement acknowledges and agrees that this   Agreement and the documents executed and delivered in connection herewith do not   constitute a novation, payment and reborrowing or termination of any of the Obligations   under the Original Credit Agreement as in effect prior to the Effective Date or a novation   or payment and reborrowing of any amount owing under the Original Credit Agreement   as in effect prior to the Effective Date.   ARTICLE X   LOAN GUARANTY    SECTION 10.01. Guaranty.  Parent hereby agrees that it is liable for, and   absolutely and unconditionally guarantees to the Guaranteed Parties, the prompt payment when   due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the   Obligations and all costs and expenses including, without limitation, all court costs and   attorneys’ and paralegals’ fees (including allocated costs of in-house counsel and paralegals) and   expenses paid or incurred by the Guaranteed Parties in endeavoring to collect all or any part of   such Obligations from, or in prosecuting any action against, each such other Borrower or any   other guarantor of all or any part of such Obligations (such costs and expenses, together with   such Obligations, collectively the “Guaranteed Obligations”).  Parent further agrees that its   Guaranteed Obligations may be extended or renewed in whole or in part without notice to or   further assent from it, and that it remains bound upon its guarantee notwithstanding any such   extension or renewal. All terms of this Loan Guaranty apply to and may be enforced by or on   behalf of any domestic or foreign branch or Affiliate of any Guaranteed Party that extended any   portion of the Guaranteed Obligations.     

 

   99   CHI 64213081v14   SECTION 10.02. Guaranty of Payment.  This Loan Guaranty is a guaranty of   payment and not of collection. Parent waives any right to require any Guaranteed Party to sue   any Borrower, any other guarantor, or any other Person obligated for all or any part of the   Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against   any collateral securing all or any part of the Guaranteed Obligations.   SECTION 10.03. No Discharge or Diminishment of Loan Guaranty.     (a) Except as otherwise provided for herein, the obligations of Parent   hereunder are unconditional and absolute and not subject to any reduction, limitation,   impairment or termination for any reason (other than the indefeasible payment in full in   cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release,   extension, renewal, settlement, surrender, alteration, or compromise of any of the   Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the   corporate existence, structure or ownership of any Obligated Party; (iii) any insolvency,   bankruptcy, reorganization or other similar proceeding affecting any Obligated Party, or   such Obligated Party’s assets or any resulting release or discharge of any obligation of   any Obligated Party; or (iv) the existence of any claim, setoff or other rights which Parent   may have at any time against any other Obligated Party, any Guaranteed Party or any   other Person, whether in connection herewith or in any unrelated transactions.   (b) The obligations of Parent hereunder are not subject to any defense or   setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity,   illegality, or unenforceability of any of the Guaranteed Obligations or otherwise, or any   provision of applicable law or regulation purporting to prohibit payment by any   Obligated Party, of its Guaranteed Obligations or any part thereof.     (c) Further, the obligations of Parent hereunder are not discharged or impaired   or otherwise affected by:  (i) the failure of any Guaranteed Party to assert any claim or   demand or to enforce any remedy with respect to all or any part of the Guaranteed   Obligations; (ii) any waiver or modification of or supplement to any provision of any   agreement (including this Agreement, any Subsidiary Guaranty or any other Loan   Document) relating to the Guaranteed Obligations; (iii) any release, non-perfection, or   invalidity of any indirect or direct security (if any) for the obligations of Parent for all or   any part of its Guaranteed Obligations or any obligations of any other guarantor of or   other person liable for any of the Guaranteed Obligations; (iv) any action or failure to act   by any Guaranteed Party with respect to any collateral (if any) securing any part of its   Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the   payment or performance of any of the Guaranteed Obligations, or any other   circumstance, act, omission or delay that might in any manner or to any extent vary the   risk of Parent or that would otherwise operate as a discharge of Parent as a matter of law   or equity (other than the indefeasible payment in full in cash of the Guaranteed   Obligations).     SECTION 10.04. Defenses Waived.  To the fullest extent permitted by   applicable law, Parent hereby waives any defense based on or arising out of any defense of   Parent or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or     

 

   100   CHI 64213081v14   the cessation from any cause of the liability of Parent, other than the indefeasible payment in full   in cash of the Guaranteed Obligations. Without limiting the generality of the foregoing, Parent   irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent   permitted by law, any notice not provided for herein, as well as any requirement that at any time any   action be taken by any Person against any Obligated Party, or any other Person, and Parent   confirms that it is not a surety under any state law and shall not raise any such law as a defense to its   obligations hereunder.  The Administrative Agent may, at its election, foreclose on any collateral   (if any) held by it by one or more judicial or nonjudicial sales, accept an assignment of any such   collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral   securing all or a part of the Guaranteed Obligations, compromise or adjust any part of the   Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise   any other right or remedy available to it against any Obligated Party, without affecting or   impairing in any way the liability of Parent under this Loan Guaranty except to the extent the   Guaranteed Obligations have been fully and indefeasibly paid in full in cash.  To the fullest   extent permitted by applicable law, Parent waives any defense arising out of any such election   even though that election may operate, pursuant to applicable law, to impair or extinguish any   right of reimbursement or subrogation or other right or remedy of Parent against any Obligated   Party or any security.   SECTION 10.05. Rights of Subrogation.  Parent will not assert any right,   claim or cause of action, including, without limitation, a claim of subrogation, contribution or   indemnification that it has against any Obligated Party, or any collateral (if any), until each of the   Loan Parties have fully performed all its obligations to the Guaranteed Parties.    SECTION 10.06. Reinstatement; Stay of Acceleration.  If at any time any   payment of any portion of the Guaranteed Obligations is rescinded or must otherwise be restored   or returned upon the insolvency, bankruptcy, or reorganization of any Loan Party or otherwise,   Parent’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at   such time as though the payment had not been made and whether or not the Guaranteed Parties   are in possession of this Loan Guaranty. If acceleration of the time for payment of any of the   Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Loan   Party, all such amounts otherwise subject to acceleration under the terms of any agreement relating   to the Guaranteed Obligations shall nonetheless be payable by Parent forthwith on demand by the   Administrative Agent.   SECTION 10.07. Information.  Parent assumes all responsibility for being   and keeping itself informed of each Loan Party’s financial condition and assets, and of all other   circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the   nature, scope and extent of the risks that Parent assumes and incurs under this Loan Guaranty,   and agrees that no Guaranteed Party shall have any duty to advise Parent of information known   to it regarding those circumstances or risks.   SECTION 10.08. Termination.  The Lenders may continue to make loans or   extend credit to each Borrower based on this Loan Guaranty until five (5) days after it receives   written notice of termination of this Loan Guaranty from Parent.  Notwithstanding receipt of any   such notice, Parent will continue to be liable to the Guaranteed Parties for any of its Guaranteed   Obligations created, assumed or committed to prior to the fifth (5th) day after receipt of the     

 

   101   CHI 64213081v14   notice, and all subsequent renewals, extensions, modifications and amendments with respect to,   or substitutions for, all or any part of such Guaranteed Obligations.   SECTION 10.09. Taxes.  All payments of the Guaranteed Obligations will be   made by Parent free and clear of, and without deduction for, any Indemnified Taxes or Other   Taxes; provided that if Parent shall be required to deduct any Indemnified Taxes or Other Taxes   from such payments, then (i) the sum payable by Parent shall be increased as necessary so that   after making all required deductions (including deductions applicable to additional sums payable   under this Section 10.09) each Guaranteed Party (as the case may be) receives an amount equal   to the sum it would have received had no such deductions been made, (ii) Parent shall make such   deductions, and (iii) Parent shall pay the full amount deducted to the relevant Governmental   Authority in accordance with applicable law.   SECTION 10.10. Maximum Liability.  The provisions of this Loan Guaranty   are severable, and in any action or proceeding involving any  foreign or state corporate law, or   any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the   rights of creditors generally, if the obligations of Parent under this Loan Guaranty would   otherwise be held or determined to be avoidable, invalid or unenforceable on account of the   amount of Parent’s liability under this Loan Guaranty, then, notwithstanding any other provision   of this Loan Guaranty to the contrary, the amount of such liability shall, without any further   action by Parent or the Guaranteed Parties, be automatically limited and reduced to the highest   amount that is valid and enforceable as determined in such action or proceeding (such highest   amount determined hereunder being the relevant Parent’s “Maximum Liability”).  This Section   with respect to the Maximum Liability of Parent is intended solely to preserve the rights of the   Guaranteed Parties to the maximum extent not subject to avoidance under applicable law, and   neither Parent nor any other Person shall have any right or claim under this Section with respect   to such Maximum Liability, except to the extent necessary so that the obligations of Parent   hereunder shall not be rendered voidable under applicable law. Parent agrees that the Guaranteed   Obligations may at any time and from time to time exceed the Maximum Liability of Parent without   impairing this Loan Guaranty or affecting the rights and remedies of the Guaranteed Parties   hereunder, provided that, nothing in this sentence shall be construed to increase Parent’s obligations   hereunder beyond its Maximum Liability.   SECTION 10.11. Liability Cumulative.  The liability of Parent under this   Article X is in addition to and shall be cumulative with all liabilities of each other Loan Party to   the Guaranteed Parties under this Agreement, the Subsidiary Guarantors and the other Loan   Documents to which each such Loan Party is a party or in respect of any obligations or liabilities   of the other Loan Parties, without any limitation as to amount, unless the instrument or   agreement evidencing or creating such other liability specifically provides to the contrary.   SECTION 10.12. Keepwell. Each Qualified ECP Guarantor hereby jointly   and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or   other support as may be needed from time to time by each other Loan Party to honor all of its   obligations under this Loan Guaranty in respect of Swap Obligations (provided, however, that   each Qualified ECP Guarantor shall only be liable under this Section 10.12 for the maximum   amount of such liability that can be hereby incurred without rendering its obligations under this   Section 10.12, or otherwise under this Loan Guaranty, voidable under applicable law relating to     

 

   102   CHI 64213081v14   fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations   of each Qualified ECP Guarantor under this Section 10.12 shall remain in full force and effect   until the indefeasible payment in full in cash of the Guaranteed Obligations.  Each Qualified ECP   Guarantor intends that this Section 10.12 constitute, and this Section 10.12 shall be deemed to   constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for   all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.   [signature pages follow]     

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

   Signature Page to Amended and Restated Credit Agreement   RBS CITIZENS, N.A., as Lender         By:  ________________________________   Name:  Judith A. Huckins   Title:    Vice President            

 

    

 

Active 21587107v5 003846.107799   Schedule 2.01: Commitment Schedule   Lender   U.S. Revolving   Commitment   EUR Revolving   Commitment* Total Commitment   J.P. Morgan Chase   Bank, N.A. $75,000,000.00 $45,000,000.00 $75,000,000.00   Bank of America, N.A. $75,000,000.00 $45,000,000.00 $75,000,000.00   Fifth Third Bank $75,000,000.00 $45,000,000.00 $75,000,000.00   SunTrust Bank $60,000,000.00 $36,000,000.00 $60,000,000.00   PNC Bank, National   Association $55,000,000.00 $33,000,000.00 $55,000,000.00   Union Bank, N.A. $55,000,000.00 $33,000,000.00 $55,000,000.00   RBS Citizens, N.A. $55,000,000.00 $33,000,000.00 $55,000,000.00   Société Générale $50,000,000.00 $30,000,000.00 $50,000,000.00   TOTAL: $500,000,000.00 $300,000,000.00 $500,000,000.00   *The EUR Revolving Commitment is a sub-commitment and sub-facility of the U.S. Revolving   Commitment.    

 

   Exhibit A - 1   CHI 64213081v14   Exhibit A   FORM OF ASSIGNMENT AND ASSUMPTION   This Assignment and Assumption (the “Assignment and Assumption”) is dated as   of the Effective Date set forth below and is entered into by and between [______________] (the   “Assignor”) and [______________] (the “Assignee”).  Capitalized terms used but not defined   herein shall have the meanings given to them in the Credit Agreement identified below  (as it   may be amended, restated, modified, extended or supplemented from time to time, the “Credit   Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard   Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated   herein by reference and made a part of this Assignment and Assumption as if set forth herein in   full.   For an agreed consideration, the Assignor hereby irrevocably sells and assigns to   the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor,   subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,   as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the   Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any   other documents or instruments delivered pursuant thereto to the extent related to the amount and   percentage interest identified below of all of such outstanding rights and obligations of the   Assignor under the respective facilities identified below (including any letters of credit,   guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be   assigned under applicable law, all claims, suits, causes of action and any other right of the   Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising   under or in connection with the Credit Agreement, any other documents or instruments delivered   pursuant thereto or the loan transactions governed thereby or in any way based on or related to   any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims   and all other claims at law or in equity related to the rights and obligations sold and assigned   pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i)   and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and   assignment is without recourse to the Assignor and, except as expressly provided in this   Assignment and Assumption, without representation or warranty by the Assignor.   1. Assignor:  ______________________________   2. Assignee:  ______________________________and is an Affiliate/Approved   Fund of [identify Lender]1 ]   3. Borrower(s):  ______________________________   4. Administrative Agent:   JPMorgan Chase Bank, N.A., as the administrative agent under   the Credit Agreement.   5. Credit Agreement: The Amended and Restated Credit Agreement, dated as of   December 11, 2013, as amended, restated or otherwise modified, among Schweitzer-                                                      1 Select as applicable.     

 

   Exhibit A - 2   CHI 64213081v14   Mauduit International, Inc., SWM Luxembourg, the other Loan Parties (as defined   therein) that are a party thereto from time to time, the Lenders (as defined therein) that   are a party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other   agents parties thereto.   6. Assigned Interest:   Facility Assigned2   Aggregate Amount of   Commitment/Loans   for all Lenders   Amount of   Commitment/Loans   Assigned   Percentage Assigned   of   Commitment/Loans3    $ $ %    $ $ %    $ $ %      Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE   AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF   TRANSFER IN THE REGISTER THEREFOR.]   The Assignee agrees to deliver to the Administrative Agent a completed Administrative   Questionnaire in which the Assignee designates one or more credit contacts to whom all   syndicate-level information (which may contain material non-public information about the   Borrower[, the Loan Parties] and [its] [their] Related Parties or their respective securities) will be   made available and who may receive such information in accordance with the Assignee’s   compliance procedures and applicable laws, including federal and state securities laws.   [signature page follows]                                                      2 Fill in the appropriate terminology for the types of facilities under the Credit   Agreement that are being assigned under this Assignment (e.g., “U.S. Revolving Commitment,”   “EUR Revolving Commitment,” etc.)    3 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all   Lenders thereunder.     

 

   Exhibit A - 3   CHI 64213081v14   The terms set forth in this Assignment and Assumption are hereby agreed to:   ASSIGNOR   [NAME OF ASSIGNOR]      By:     Title:         ASSIGNEE   [NAME OF ASSIGNEE]      By:     Title:        

 

   Exhibit A - 4   CHI 64213081v14   Consented to and Accepted:   JPMORGAN CHASE BANK, N.A., as   Administrative Agent      By:     Name:     Title:        [Consented to:]4   [NAME OF RELEVANT BANK]      By:     Name:     Title:                                                              4 To be added only if the consent of the Borrowers and/or other parties (e.g. Swingline Lender,   Issuing Bank) is required by the terms of the Credit Agreement.     

 

   Exhibit A - 5   CHI 64213081v14   Annex 1       STANDARD TERMS AND CONDITIONS FOR   ASSIGNMENT AND ASSUMPTION         1.  Representations and Warranties.   1.1  Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and   beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,   encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all   action necessary, to execute and deliver this Assignment and Assumption and to consummate the   transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any   statements, warranties or representations made in or in connection with the Credit Agreement,   (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the   Agreement or any collateral thereunder, (iii) the financial condition of the Borrower, any of its   Subsidiaries or Affiliates or any other Person obligated in respect of the Agreement or (iv) the   performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other   Person of any of their respective obligations under the Agreement.   1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power   and authority, and has taken all action necessary, to execute and deliver this Assignment and   Assumption and to consummate the transactions contemplated hereby and to become a Lender   under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit   Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and   become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of   the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall   have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement,   together with copies of the most recent financial statements delivered pursuant to Section 5.01   thereof, as applicable, and such other documents and information as it has deemed appropriate to   make its own credit analysis and decision to enter into this Assignment and Assumption and to   purchase the Assigned Interest on the basis of which it has made such analysis and decision   independently and without reliance on the Administrative Agent or any other Lender, and (v) if it   is a Non-U.S. Lender, attached to the Assignment and Assumption is any documentation   required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and   executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on   the Administrative Agent, the Assignor or any other Lender, and based on such documents and   information as it shall deem appropriate at the time, continue to make its own credit decisions in   taking or not taking action under the Agreement, and (ii) it will perform in accordance with their   terms all of the obligations which by the terms of the Agreement are required to be performed by   it as a Lender.   2.  Payments.  From and after the Effective Date, the Administrative Agent shall   make all payments in respect of the Assigned Interest (including payments of principal, interest,   fees and other amounts) to the Assignor for amounts which have accrued to but excluding the   Effective Date and to the Assignee for amounts which have accrued from and after the Effective   Date.     

 

   Exhibit A - 6   CHI 64213081v14   3.  General Provisions. This Assignment and Assumption shall be binding upon,   and inure to the benefit of, the parties hereto and their respective successors and assigns.  This   Assignment and Assumption may be executed in any number of counterparts, which together   shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this   Assignment and Assumption by telecopy shall be effective as delivery of a manually executed   counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be   governed by, and construed in accordance with, the laws of the State of New York.        

 

   Exhibit B - 1   CHI 64213081v14   Exhibit B   FORM OF BORROWING REQUEST   [SCHWEITZER-MAUDUIT INTERNATIONAL, INC.// SWM LUXEMBOURG]      BORROWING REQUEST      Date:  _____________ ___, ____   JPMorgan Chase Bank, N.A.   10 South Dearborn Street   Floor 07   Chicago, IL 60603-2300   Attention:  Darren Cunningham      JPMorgan Chase Bank, N.A.   c/o JPMorgan Europe Limited   Floor 6   25 Bank Street   Canary Wharf   London, United Kingdom  E14 5JP   Attention:  The Manager      Ladies and Gentlemen:      This Borrowing Request is furnished pursuant to Section 2.03 of that certain Amended and   Restated Credit Agreement, dated as of December 11, 2013 (as amended, modified,   supplemented, renewed or extended from time to time, the “Agreement”) among Schweitzer-   Mauduit International, Inc., a Delaware corporation (“Parent” or “U.S. Borrower”), SWM   Luxembourg, a Luxembourg private limited liability company (société à responsabilité limitée),   having its registered office at 16, avenue Pasteur, L-2310 Luxembourg, registered with the   Luxembourg Register of Commerce and Companies (Registre de Commerce et des Sociétés,   Luxembourg) under number B 180.186 and with a share capital of EUR 3,079,205 (“SWM   Luxembourg” and, together with U.S. Borrower, the “Borrowers” and, individually, each a   “Borrower”), the other Loan Parties (as defined therein) that are party thereto from time to time,   the lenders party thereto and JPMorgan Chase Bank, N.A. (“JPMorgan”), as Administrative   Agent for the Lenders.  Unless otherwise defined herein, capitalized terms used in this   Borrowing Request have the meanings ascribed thereto in the Agreement. The Borrower   represents that, as of the date of the requested borrowing, the conditions precedent set forth in   Section 4.02 [and Section 4.03] in the Agreement are satisfied.       [U.S. Borrower// SWM Luxembourg] hereby notifies JPMorgan of its request of the following   Borrowing:       (1) The Borrowing shall be a:     

 

   Exhibit B - 2   CHI 64213081v14   ___ U.S. Revolving Loan; or   ___ EUR Revolving Loan      (2) Aggregate Amount of the Borrowing: $__________________   (3) The currency of the Borrowing (which shall be in accordance with Section 2.02 of the   Agreement) shall be:   ___ U.S. Dollars; or   ___ Euros      (4) Borrowing Date of the Borrowing (must be a Business Day):    ___________________   (5) The Borrowing shall be:   ___ an ABR Borrowing; or   ___ a Eurodollar Borrowing5      (6) If a Eurodollar Borrowing, the duration of Interest Period:   ___ One Week    ___ One Month     ___ Two Months    ___ Three Months    ___ Six Months       (7) Location and number of Borrower’s account to which Borrowing should be   disbursed:    Bank:  ______________     ABA:  ______________    SWIFT:         Acct. #: ______________        [SCHWEITZER-MAUDUIT INTERNATIONAL,   INC.// SWM LUXEMBOURG]         By:    Name:    Title:                                 Do not write below. For bank purposes only.   __Customer’s signature(s) verified      __Call-back performed      By:________________________________________                                                      5 Borrowings requested by a Foreign Borrower must be Eurodollar borrowings.     

 

   Exhibit B - 3   CHI 64213081v14   Holds   __CFC Used   __Hold Placed/Pre-Approved   __Same-day Credit/Pre-Approved      Phone Number:______________________________   Spoke to:___________________________________   Date:_______________________________________   Time:______________________________________   RECEIVED BY (Print   Name/Phone(Request   Only))            INITIALS PROCESSED BY (Print name) INITIALS   AUTHORIZED APPROVAL (Print   Name)         AUTHORIZED SIGNATURE   AUTHORIZED APPROVAL (Print   Name)         AUTHORIZED SIGNATURE     

 

   Exhibit C - 1   CHI 64213081v14   Exhibit C   FORM OF COMPLIANCE CERTIFICATE   To: The Lenders Parties to the    Credit Agreement Described Below       This Compliance Certificate (this “Certificate”) is furnished pursuant to that certain   Amended and Restated Credit Agreement, dated as of December 11, 2013 (as amended, restated,   supplemented, modified, renewed or extended from time to time, the “Agreement”) among   Schweitzer-Mauduit International, Inc., a Delaware corporation (“Parent”), SWM Luxembourg,   a Luxembourg private limited liability company (société à responsabilité limitée), having its   registered office at 16, avenue Pasteur, L-2310 Luxembourg, registered with the Luxembourg   Register of Commerce and Companies (Registre de Commerce et des Sociétés, Luxembourg)   under number B 180.186 and with a share capital of EUR 3,079,205 (“SWM Luxembourg” and,   together with Parent, the “Borrowers” and, individually, each a “Borrower”), the other Loan   Parties (as defined therein) that are a party thereto from time to time, the lenders party thereto   and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders.  Unless otherwise   defined herein, capitalized terms used in this Certificate have the meanings ascribed thereto in   the Agreement.       THE UNDERSIGNED HEREBY CERTIFIES THAT:        1.  I am the duly elected                       of Parent;       2.    I have reviewed the terms of the Agreement and I have made, or have caused to   be made under my supervision, a detailed review of the transactions and conditions of Parent and   its Subsidiaries during the accounting period covered by the attached financial statements [for   quarterly financial statements add: and such financial statements present fairly in all material   respects the financial condition and results of operations of Parent and its consolidated   Subsidiaries on a consolidated and consolidating basis in accordance with GAAP consistently   applied, subject to normal year-end audit adjustments and the absence of footnotes];       3.   The examinations described in paragraph 2 above did not disclose, except as set   forth below, and I have no knowledge of, (i) the existence of any condition or event which   constitutes a Default during or at the end of the accounting period covered by the attached   financial statements or as of the date of this Certificate or (ii) any change in GAAP or in the   application thereof that has occurred since the date of the audited financial statements referred to   in Section 3.04 of the Agreement;       4.  Schedule I attached hereto sets forth financial data and computations evidencing   the Borrower’s compliance with Section 6.10 of the Agreement, all of which data and   computations are true, complete and correct;         5.  Schedule II hereto sets forth the computations necessary to determine the   Applicable Rate commencing on the Business Day this Certificate is delivered; and         

 

   Exhibit C - 2   CHI 64213081v14    6. Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the   (i) nature of the condition or event, the period during which it has existed and the action which   the Borrowers have taken, is taking, or proposes to take with respect to each such condition or   event or (ii) the change in GAAP or the application thereof and the effect of such change on the   attached financial statements:                                                         [Signature page follows immediately.]     

 

   Exhibit C - 3   CHI 64213081v14       The foregoing certifications, together with the computations set forth in Schedule I and   Schedule II hereto and the financial statements delivered with this Certificate in support hereof,   are made and delivered this      day of               ,        .                            By:         Name:          Title:          

 

   Exhibit C - 4   CHI 64213081v14   SCHEDULE I       Compliance as of _________, ____ with   Provisions of 6.10 of   the Agreement     

 

   Exhibit C - 5   CHI 64213081v14   SCHEDULE II      Applicable Rate        

 

   Exhibit D - 1   CHI 64213081v14   Exhibit D-1   FORM OF U.S. TAX CERTIFICATE   (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)   Reference is hereby made to the Amended and Restated Credit Agreement, dated   as of December 11, 2013 (as amended, restated, supplemented, modified, renewed or extended   from time to time, the “Credit Agreement”), among Schweitzer-Mauduit International, Inc.,   SWM Luxembourg, the Loan Parties (as defined therein) that are a party thereto from time to   time, the Lenders (as defined therein) that are a party thereto, JPMorgan Chase Bank, N.A., as   Administrative Agent, and the other agents parties thereto.   Pursuant to the provisions of Section 2.17 of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as   well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,   (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten   percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code,   (iv) it is not a controlled foreign corporation related to any Borrower as described in   Section 881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively   connected with the undersigned’s conduct of a U.S. trade or business.   The undersigned has furnished the Administrative Agent and the Borrowers with   a certificate of its non-U.S. person status on IRS Form W-8BEN.  By executing this certificate,   the undersigned agrees that (1) if the information provided on this certificate changes, the   undersigned shall promptly so inform the Borrowers and the Administrative Agent and (2) the   undersigned shall have at all times furnished the Borrowers and the Administrative Agent with a   properly completed and currently effective certificate in either the calendar year in which each   payment is to be made to the undersigned, or in either of the two calendar years preceding such   payments.   Unless otherwise defined herein, terms defined in the Credit Agreement and used   herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:______________________________________    Name:    Title:   Date:            

 

   Exhibit D - 2   CHI 64213081v14   Exhibit D-2   FORM OF U.S. TAX CERTIFICATE   (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)   Reference is hereby made to the Amended and Restated Credit Agreement, dated   as of December 11, 2013 (as amended, restated, supplemented, modified, renewed or extended   from time to time, the “Credit Agreement”), among Schweitzer-Mauduit International, Inc., the   Loan Parties (as defined therein) that are a party thereto from time to time, the Lenders (as   defined therein) that are a party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent,   and the other agents parties thereto.   Pursuant to the provisions of Section 2.17 of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any   Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its   partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s)   evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit   Agreement, neither the undersigned nor any of its partners/members is a bank extending credit   pursuant to a loan agreement entered into in the ordinary course of its trade or business within   the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its partners/members is a ten   percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code,   (v) none of its partners/members is a controlled foreign corporation related to any Borrower as   described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not   effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or   business.   The undersigned has furnished the Administrative Agent and the Borrowers with   IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of its partners/members   claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees   that (1) if the information provided on this certificate changes, the undersigned shall promptly so   inform the Borrowers and the Administrative Agent and (2) the undersigned shall have at all   times furnished the Borrowers and the Administrative Agent with a properly completed and   currently effective certificate in either the calendar year in which each payment is to be made to   the undersigned, or in either of the two calendar years preceding such payments.   Unless otherwise defined herein, terms defined in the Credit Agreement and used   herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:______________________________________    Name:    Title:   Date:         

 

   Exhibit D - 3   CHI 64213081v14      Exhibit D-3   FORM OF U.S. TAX CERTIFICATE   (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)   Reference is hereby made to the Amended and Restated Credit Agreement, dated   as of December 11, 2013 (as amended, restated, supplemented, modified, renewed or extended   from time to time, the “Credit Agreement”), among Schweitzer-Mauduit International, Inc.,   SWM Luxembourg, the Loan Parties (as defined therein) that are a party thereto from time to   time, the Lenders (as defined therein) that are a party thereto, JPMorgan Chase Bank, N.A., as   Administrative Agent, and the other agents parties thereto.   Pursuant to the provisions of Section 2.17 of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation   in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of   Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower within   the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation   related to any Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest   payments in question are not effectively connected with the undersigned’s conduct of a   U.S. trade or business.   The undersigned has furnished its participating Lender with a certificate of its   non-U.S. person status on IRS Form W-8BEN.  By executing this certificate, the undersigned   agrees that (1) if the information provided on this certificate changes, the undersigned shall   promptly so inform such Lender in writing and (2) the undersigned shall have at all times   furnished such Lender with a properly completed and currently effective certificate in either the   calendar year in which each payment is to be made to the undersigned, or in either of the two   calendar years preceding such payments.   Unless otherwise defined herein, terms defined in the Credit Agreement and used   herein shall have the meanings given to them in the Credit Agreement.      [NAME OF LENDER]   By:______________________________________    Name:    Title:   Date:         

 

   Exhibit D - 4   CHI 64213081v14      Exhibit D-4   FORM OF U.S. TAX CERTIFICATE   (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)   Reference is hereby made to the Amended and Restated Credit Agreement, dated   as of December 11, 2013 (as amended, restated, supplemented, modified, renewed or extended   from time to time, the “Credit Agreement”), among Schweitzer-Mauduit International, Inc.,   SWM Luxembourg, the Loan Parties (as defined therein) that are a party thereto from time to   time, the Lenders (as defined therein) that are a party thereto, JPMorgan Chase Bank, N.A., as   Administrative Agent, and the other agents parties thereto.   Pursuant to the provisions of Section 2.17 of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of   which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of   such participation, (iii) with respect such participation, neither the undersigned nor any of its   partners/members is a bank extending credit pursuant to a loan agreement entered into in the   ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,   (iv) none of its partners/members is a ten percent shareholder of any Borrower within the   meaning of Section 871(h)(3)(B) of the Code, (v) none of its partners/members is a controlled   foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code,   and (vi) the interest payments in question are not effectively connected with the undersigned’s or   its partners/members’ conduct of a U.S. trade or business.   The undersigned has furnished its participating Lender with IRS Form W-8IMY   accompanied by an IRS Form W-8BEN from each of its partners/members claiming the portfolio   interest exemption.  By executing this certificate, the undersigned agrees that (1) if the   information provided on this certificate changes, the undersigned shall promptly so inform such   Lender and (2) the undersigned shall have at all times furnished such Lender with a properly   completed and currently effective certificate in either the calendar year in which each payment is   to be made to the undersigned, or in either of the two calendar years preceding such payments.   Unless otherwise defined herein, terms defined in the Credit Agreement and used   herein shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]   By:______________________________________    Name:    Title:   Date:           

 

Active 21587107v5 003846.107799    Schedule 1.01: Permitted Investments         1. In the case of Permitted Investments made by Foreign Subsidiaries, readily marketable   direct obligations of any sovereign government or any agency or instrumentality thereof   which are unconditionally guaranteed by the full faith and credit of such government and   which have an investment grade credit rating.   2. Short term money market mutual funds through Natixis   3. Time deposits with Société Générale   4. Deposit accounts with Société Générale                                                                                                  

 

Active 21587107v5 003846.107799    Schedule 2.01: Commitment Schedule         Lender   U.S. Revolving   Commitment   EUR Revolving   Commitment* Total Commitment   J.P. Morgan Chase   Bank, N.A. $75,000,000.00 $45,000,000.00 $75,000,000.00   Bank of America, N.A. $75,000,000.00 $45,000,000.00 $75,000,000.00   Fifth Third Bank $75,000,000.00 $45,000,000.00 $75,000,000.00   SunTrust Bank $60,000,000.00 $36,000,000.00 $60,000,000.00   PNC Bank, National   Association $55,000,000.00 $33,000,000.00 $55,000,000.00   Union Bank, N.A. $55,000,000.00 $33,000,000.00 $55,000,000.00   RBS Citizens, N.A. $55,000,000.00 $33,000,000.00 $55,000,000.00   Société Générale $50,000,000.00 $30,000,000.00 $50,000,000.00   TOTAL: $500,000,000.00 $300,000,000.00 $500,000,000.00      *The EUR Revolving Commitment is a sub-commitment and sub-facility of the U.S. Revolving   Commitment.                                                                                

 

Active 21587107v5 003846.107799    Schedule 3.06: Disclosed Matters      U. S. Operations      None.        Brazilian Operations       Name Issue   Imposto sobre Circulação de Mercadorias e Serviços, or   ICMS, a form of value-added tax in Brazil, was assessed to   our Brazilian subsidiary, SWM-B, in December of 2000.   SWM-B received two assessments from the tax authorities of   the State of Rio de Janeiro for unpaid ICMS taxes from   January 1995 through November 2000, collectively the   Assessment.      The Assessment concerned the accrual and use by SWM-B of   ICMS tax credits generated from the production and sale of   certain non-tobacco related grades of paper sold domestically   that are immune from the tax to offset ICMS taxes otherwise   owed on the sale of products that are not immune. One of the   two assessments related in part to tax periods that predated   our acquisition of Pirahy and is covered in part by an   indemnification from the sellers of Pirahy, or Assessment 1   (case number 2001.001.115144-5). The second assessment   pertains exclusively to periods that SWM-B owned the Pirahy   mill, or Assessment 2 (case number 2001.001.064544-6).   Based on the foreign currency exchange rate at September 30,   2013, the Assessment totaled approximately $40 million, of   which approximately $18 million is covered by the above-   discussed indemnification.      Alleged improper use of ICMS   tax credits accrued on sales of   ICMS immune products to   reduce ICMS taxes on sales of   non-immune products.    SWM-B received three assessments from the tax authorities of   the State of Rio de Janeiro for unpaid ICMS and Fundo   Estadual de Combate à Pobreza (FECP) taxes on interstate   purchases of electricity from May 2006 – November 2007,   January 2008 – December 2010, and September 2011 –   September 2013.  All three assessments concerned the accrual   and use by SWM-B of tax credits because SWM-B is an   intensive electricity customer and thus immune from this tax.   Based on the foreign currency exchange rate at November 30,   2013, these assessments totaled approximately $19 million.     Alleged improper use of ICMS   and FECP tax credits by SWM-   B as an intensive electricity   customer         

 

Active 21587107v5 003846.107799    Schedule 3.12: Subsidiaries      Subsidiary % Ownership of   Parent in Equity   Interest of Subsidiary   Direct Owner of   Subsidiary   Jurisdiction of   Organization of   Subsidiary   Schweitzer-Mauduit   International China,   Ltd.   100% Schweitzer-Mauduit   International, Inc.   Hong Kong   Schweitzer-Mauduit   Canada, Inc.   100% Schweitzer- Mauduit   International, Inc.   Canada   Schweitzer-Mauduit   Spain, S.L.   100% Schweitzer-Mauduit   International, Inc.   Spain   Schweitzer-Mauduit   RTL Philippines Inc.   99.9% Schweitzer-Mauduit   International, Inc.   Philippines   SWM-Poland Sp. z   o.o.   99.9%      0.1%   SWM LP Luxembourg   SCSp      SWM Poland GP Sp z o. o.   Poland   China Tobacco   Mauduit (Jiangmen)   Paper Industry   Company Ltd   50% Schweitzer-Mauduit   International China, Ltd.   People’s Republic   of China   China Tobacco-   Schweitzer (Yunnan)   Reconstituted Tobacco   Company Ltd.   50% Schweitzer-Mauduit   International China, Ltd.   People’s Republic   of China   Schweitzer-Mauduit   do Brasil Indústria e   Comércio de Papel   Ltda.   99.985% Schweitzer-Mauduit Spain,   S.L.   Brazil   Schweitzer-Mauduit   Holding S.A.S.   100% Schweitzer-Mauduit Spain,   S.L.   France   Schweitzer-Mauduit   Industries S.A.S.    100% Schweitzer-Mauduit   Holding S.A.S.   France   Schweitzer-Mauduit   France S.A.S.      94% Schweitzer-Mauduit   Industries S.A.S.    France   3.3% Schweitzer-Mauduit   Holding S.A.S.   2.7% Schweitzer-Mauduit   International, Inc.   Papeteries de Saint-   Girons S.A.S.   100% Schweitzer-Mauduit France   S.A.S.   France   Schweitzer-Mauduit   Developpements   S.A.S.   100% Schweitzer-Mauduit France   S.A.S.   France   LTR Industries, S.A.S. 100% Schweitzer-Mauduit France     

 

Active 21587107v5 003846.107799    Subsidiary % Ownership of   Parent in Equity   Interest of Subsidiary   Direct Owner of   Subsidiary   Jurisdiction of   Organization of   Subsidiary   Developpements S.A.S.   Schweitzer-Mauduit   Services S.A.S.      100% Schweitzer-Mauduit France   S.A.S.   France   PDM Industries S.A.S. 100% Schweitzer-Mauduit   Services S.A.S.   France   Papeteries de   Malaucène S.A.S.   100% Schweitzer-Mauduit   Services S.A.S.   France   Malaucène Industries   S.N.C.    100% Papeteries de Malaucene   S.A.S.   France   PDM Philippines   Industries, Inc.   99.89% Schweitzer-Mauduit France   S.A.S.   Philippines   Luna Rio Landholding   Corporation   40% PDM Philippines Industries,   Inc.   Philippines   SWM Holdco 1 S.à    R.L.   100% Schweitzer-Mauduit   International, Inc.   Luxembourg   SWM Holdco 2 S.à   R.L.   100% Schweitzer-Mauduit   International, Inc.   Luxembourg   SWM Luxembourg   S.à R.L.   100% Schweitzer-Mauduit   International, Inc.   Luxembourg   SWM Acquisition   Corp. I   100% Schweitzer-Mauduit   International, Inc.   Delaware   SWM Acquisition   Corp. II   100% SWM Acquisition Corp. I Delaware   SWM LP Luxembourg   SCSp    99.9%            0.1%   Ipopema 94 Fundusz   Inwestycyjny Zamkniety    Aktywow Niepublicznych      SWM GP Luxembourg S.à   R.L.   Luxembourg   SWM Poland GP Sp z   o.o.   100% SWM Luxembourg S.à R.L. Poland   SWM GP   Luxembourg S.à R.L.   100% SWM Luxembourg S.à    R.L.   Luxembourg   Ipopema 94 Fundusz   Inwestycyjny   Zamkniety Aktywow   Niepublicznych   100% SWM Luxembourg S.à R.L. Poland           

 

Active 21587107v5 003846.107799    Schedule 3.13: Material Agreements      None.                                                                                                                                   

 

Active 21587107v5 003846.107799    Schedule 3.16: Insurance      Net Insurance Premiums – By Country:      Coverage   Policy   #   Coverage Period   Insurance Company    Limits Deductible From To   Corporate, U.S. Unit    and Canada   Directors & Officers   (D&O)* 12/1/2013 12/1/2014 Federal Ins. Co. (CHUBB)    $                      10,000,000     $                         1,000,000    12/1/2013 12/1/2014 ACE USA Insurance Co.    $                       10,000,000    12/1/2013 12/1/2014 Liberty Mutual Ins. Co.     $                       10,000,000       12/1/2013 12/1/2014 ARCH Insurance Company    $                        10,000,000     12/1/2013 12/1/2014 AIG Insurance Company   $                        10,000,000      12/1/2013 12/1/2014 Federal Ins. Co. (CHUBB)    $                        5,000,000        12/1/2013 12/1/2014   Zurich American Insurance   Co.  $5,000,000     12/1/2013 12/1/2014 AIG Insurance Company     $                      10,000,000     $                      70,000,000    Fiduciary Liability 12/1/2013 12/1/2014 ARCH Insurance Company    $                       10,000,000     $                        100,000       12/1/2013 12/1/2014 AIG Insurance Company    $                        10,000,000              $                        20,000,000       

 

Active 21587107v5 003846.107799    Coverage   Policy   #   Coverage Period   Insurance Company    Limits Deductible From To   Crime 1/1/2011 12/1/2014   Zurich American Insurance   Co.    $                       10,000,000     $                         100,000    Commercial General   Liability (CGL) 1/1/2013 1/1/2014 Sentry Insurance    $                       1,000,000     $                         100,000    Automobile Liability 1/1/2013 1/1/2014 Sentry Insurance    $                       1,000,000     $                         -      Umbrella Liability* 1/1/2013 1/1/2014   National Union Fire Ins. Co.   of Pittsburgh, PA (AIG)    $                       25,000,000   Underlying limit    1/1/2013 1/1/2014   Great American Insurance   Co.    $                       15,000,000    International Casualty   Insurance* 1/1/2013 1/1/2014 ACE USA    $                       2,000,000   -    Special (Kidnap &   Ransom)* 1/1/2011 1/1/2014   U.S. Specialty Insurance   Company (HCC)    $                       10,000,000     $                         -      Property Damage &   Business Interruption 1/1/2013 1/1/2014 FM Global    $                       2,000,000,000  $100,000/day, 5 day BI   2/18/2013 2/18/2014   Federal Flood at               Columbia Mill, Lee, MA    $                       500,000     $                         5,000    2/18/2013 2/18/2014   Federal Flood at               Niagara Mill, Lenox, MA    $                       500,000     $                         5,000    7/25/2013 7/25/2014   Federal Flood at               Ancram, NY    $                      500,000     $                         5,000    Ocean Marine 12/1/2013 12/1/2014 Zurich American Insurance  $                      $                           

 

Active 21587107v5 003846.107799    Coverage   Policy   #   Coverage Period   Insurance Company    Limits Deductible From To   Company 2,000,000  5,000    Workers Compensation   and Employees Liability 1/1/2013 1/1/2014 Sentry Insurance Statutory by State    $                         500,000          * = Corporate Coverage      Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   BRAZIL           All Risks   1/1/2013 1/1/2014 Allianz Seguros  BRL 464,188,668   Material Damage: $ 171.210.00           Time Element: 5 days              General Liability Issuance Process 1/1/2013 1/1/2014 AIG Seguros SA   Brazil    BRL 1,800,000   Commercial and Industrial   Operation: R$ 1.500,00             Products Liability: 10% of loss,   with a min. of R$ 2.500,00             Medical Malpractice: 10% of loss,   with a min. of R$ 1.000,00                Auto/TPL 20311901 1/1/2013 1/1/2014 AIG Seguros SA   Brazil    Material Damage   and Bodily Injury     Nil        R$ 1,500,000.00          Moral Damage          R$ 200,000.00       

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To              All Risks   (Notebooks)   3710019847 1/1/2013 1/1/2014 Allianz Seguros  BRL 50,000   10% of loss, with a min of R$   1.000,00               Inland Transit 1219186141 1/1/2013 1/1/2014 Zurich  Equivalent to USD   $500,000    Equivalent to USD $5.000 per   event              Ocean Marine-   Import   1229186176 1/1/2013 1/1/2014 Zurich  USD $500,000  1%of the total shipment value:   with a minimum of USD $5,000              Ocean Marine-   Export   1229186177 31/1/2013 1/1/2014 Zurich  USD $500,000  USD $5,000              D&O 1041296 4-Jul-13 4-Jul-14 Liberty Mutual  BRL 20,000,000   Nil              Life Insurance  1-Feb-13 1-Feb-14 Itaú Seguros  Sum Insured: 24 x   monthly Salary           Coverage applies to   all  Brazil   employees    Limit of Sum   insured: R$   328.215,47             Coverages: 100% for   Death, Accidental   death, Total or   Partial Permanent   disability due to   accident, Total   Permanent Disability   due to illiness.             Supplemental   Coverages:         

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To         50% - Automatic   Spouses coverage,   R$1,730.40 -   Children’s coverage,   R$1.730,40 Familiar   Funeral Assistance,   R$1.800 Meal   allowance, R$ 3.600   Meal allowance, R$   3.600 Education   allowance, R$   400,00 Short term   disability daily per   360 days       CANADA      Property    1/1/2013 1/1/2014   Factory Mutual   Insurance   Company      USD   1,700,000,000.00      USD 100,000   CGL  1/1/2013 1/1/2014 Sentry Insurance  CAD 1,000,000.00 CAD 100,000   Auto TPL    1/1/2013 1/1/2014   Manitoba Public   Ins.      CAD 5,000,000.00 no all perils coverage   Non Owned Auto    1/1/2013 1/1/2014   Manitoba Public   Ins.      CAD 2,000,000.00 CAD 500 all perils              FRANCE            Property  FR090375 1/1/2013 1/1/2014 FM Global  various  various                         Machinery   breakdown   MA 0703553 1/1/2013 1/1/2014 Albingia  subject to list of   equipment to be   insured    10 % of the loss mini 250 € maxi   1 000 €                

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   Professional multi   perils   120024868L 4/1/2013 4/1/2014 Covea Risks   various  various              householders'   comprehensive   120020915M 4/1/2013 4/1/2014 Covea Risks  various  none              householders'   comprehensive   120021318Z 4/1/2013 4/1/2014 Covea Risks  various  none              Multi perils 22801489ZB 1/1/2013 1/1/2014 Covea risks  EUR 101,118.00  10 % of the loss & various              householders'   comprehensive   120020377J 4/1/2013 4/1/2014 Covea Risks  various  EUR 137.00              Professional multi   perils   3073575604 3/1/2013 3/1/2014 Axa  EUR 85,755.00  nil except theft 228 €              Professional multi   perils   22811054ZY 5/1/2013 5/1/2014 Covea risks  EUR 65,553.00  10% of the loss & various              Liability policy 7109851 1/1/2013 1/1/2014 CHARTIS Europe  EUR 30 000 000 €  nil for bodily injury (except EL),   property and consequential loss 5   000 € per claim, other various            Environmental   Impairment   Liability   7,201,040 1/1/2013 1/1/2014 CHARTIS Europe  5M€ each   incident/10 M€ in   aggregate    50,000 € each incident            Directors and   Officers   7902787 1/1/2013 1/1/2014 AIG Europe Ltd.  11 500 000 € per   claim & in aggregate    nil            Marine 72474 1/1/2013 1/1/2014 Helvetia  EUR 1,250,000.00  nil              

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   Personal Accident 12503609 1/1/2013 1/1/2014 ALLIANZ  EUR 230 000,00  nil              PHILIPPINES                      Property Damage   and                    Business   Interruption    1/1/2013 1/1/2014 Pioneer Insurance   & Surety Corp.    USD 45,905,000 -   applies to each of the   following:   EXPEDITING   COSTS and EXTRA   EXPENSE   combined;   MISCELLANEOUS   PERSONAL   PROPERTY per   location;   Miscellaneous   Unnamed Locations   per Location; OFF   PREMISES   STORAGE FOR   PROPERTY   UNDER   CONSTRUCTION   per Location;   SERVICE   INTERRUPTION   PROPERTY   DAMAGE and   SERVICE   INTERRUPTION   TIME ELEMENT   combined;   TRANSPORTATIO   N combined   Property Damage    $100,000 PD, 5 days BI     

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   and Time Element          USD 25,000,000 -   applies to each of the   following : DATA,   PROGRAMS OR   SOFTWARE and   COMPUTER   SYSTEMS-NON   PHYSICAL   DAMAGE   combined;   DEPENDENT   TIME ELEMENT     Property Damage - USD 100,000 ;   Time Element - 5 Day Equivalent   per occurrence, except as follows:     A.  Computer Systems-Non   Physical Damage - 2 Day   Equivalent deductible subject to a   minimum deductible of USD   100,000 per occurrence          USD 5,000,000 -   EARTH   MOVEMENT in the   aggregate during any   policy year     B.  Data, Programs or Software - 2   Day Equivalent deductible as   respects loss or damage caused by   the malicious introduction of a   machine code or instruction,   subject to a minimum deductible   of USD 100,000 per occurrence.          USD 250,000 -   LAND AND    WATER   CONTAMINANT   CLEANUP,   REMOVAL AND   DISPOSAL in the   aggregate during any   policy year     C. Dependent Time Element   Location - USD 100,000 per   Location, at each Dependent Time   Element Location where the   physical damage occurs regardless   of any other deductibles that may   also apply.  However, when the   loss results from Earthquake,   Wind and/or Flood; such loss shall   be subject to its respective   deductible(s) as follows:                    (a) Earthquake - USD 100,000 per   location  (b) Flood - USD 100,000   per location  ('c) Wind - USD   100,000 per location          PROFESSIONAL   FEES - USD 25,000    D.  Earthquake - The following   deductible(s) applies to loss     

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   plus 50% of the   amount recoverable   under this coverage   in excess of USD   25,000    caused by or or resulting from   earthquake.  This earthquake   deductible will apply regardless of   any other deductibles that may   also apply:          Time Limits :               (1) Property Damage - 5% of the   value, per the VALUATION   clause of the LOSS   ADJUSTMENT AND   SETTLEMENT section, of the   property insured (including   foundations) at the Location   where the physical damage   occurred, per Location.          AUTOMATIC   COVERAGE - 90   day period     (2) Time Element - 5% of the full   12 months Time Element values   that would have been earned   following the occurrence by use of   the facilities at the Location where   the physical damage occurred and   all other Locations where TIME   ELEMENT loss ensues,   whichever is greater, per Location.          EXTENDED   PERIOD OF   LIABILITY - 60 day   period     (3) The above earthquake   deductibles are subject to a   minimum deductible of USD   200,000 for Property Damage and   Time Element combined, per   Location.          INGRESS /   EGRESS - 30 day   period     E. Wind - 3% combined all   coverages  Includes all Locations   where Time Element loss ensues,   subject to a minimum of USD   200,000 per location, combined all   coverages.          GROSS PROFIT -   12 month period     (Day Equivalent means an amount   equivalent to the number of days     

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   stated times the 100% daily Time   Element value that would have   been earned following the   occurrence at the Location where   the physical damage occurred and   all other Locations where TIME   ELEMENT loss ensues.)                         Commercial   General Liability    1/1/2013 1/1/2014 ACE Philippines  USD 1,000,000 any   one occurrence for   General Liability &   Products Liability    NONE              Automobile   Liability    1/1/2013 1/1/2014 Pioneer insurance   & Surety Corp.    (a) Own Damage   Limit - as per   Vehicle's current   Fair Market Value     0.50% of Sum Insured, minimum   of Php 2,000 each and every claim         (b) Third Party   Bodily Injury - Php   1,000,000             (c) Third Party   Property Damage -   Php 1,000,000             (d) Personal   Accident - Php   50,000       OCIP - Owners   Controlled Ins.   Program - Package 1/1/2013 1/1/2014   ACE America Ins.   Co.   a) General Liability -   $!,000,000 per   occurrence   $10,000 per occurrence for all   liability coverage except   Employee Benefits which is     

 

Active 21587107v5 003846.107799    Coverage Policy # Coverage Period Insurance   Company    Limits  Deductible   From To   $1,000 each claim   b) Auto Liability -   $1,000,000 each   accident :               Poland                           Property Damage &   Business   Interruption   FR   230103/FR/2013 1/1/2013 1/1/2014 FM Global  $2,000,000,000  $100,000/day, 5 day BI                Casualty PLCANA0210113 1/1/2013 1/1/2014   ACE European   Group Ltd.     Casualty &   Employers Liability   - $3,079,300 PLN  $1,000 EUR                                

 

Active 21587107v5 003846.107799    Schedule 5.12: Subsidiary Guarantors      Subsidiary State of   Organization   %   Ownership of   Parent in   Equity   Interest of   Subsidiary   Direct Owner of Subsidiary   DelStar, Inc. Delaware 100% SWM Acquisition Corp. I    DelStar Holding Corp. Delaware 100% DelStar, Inc.   DelStar Technologies, Inc. Delaware 100% DelStar Holding Corp.   U.S. Netting, Inc. Delaware 100% DelStar Holding Corp.   Coretec Tubing Corp. Delaware 100% DelStar Holding Corp.                 

 

Active 21587107v5 003846.107799    Schedule 6.02: Existing Liens      Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  Safeco Credit Co., Inc. DBA SAFELINE Leasing    Jurisdiction:  Delaware Secretary of State    File No./Date:  6035355 7  1/23/2006 (continued 12/2/2010)   Collateral:  Leased Hyster Lift Truck      Debtor:  SCHWEITZER MAUDUIT INTERNATIONAL, INC.   Secured Party:  US Bancorp   Jurisdiction:  Delaware Secretary of State    File No./Date:  2009 0193497  1/20/2009    Collateral:  Informational purposes leased equipment       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  CSI Leasing, Inc.    Jurisdiction:  Delaware Secretary of State    File No./Date:  2009 0808607  3/13/2009    Collateral:  Leased Sony equipment together with all repairs, accessions,      accessories and replacements       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  CSI Leasing, Inc.    Assignee:  PNCEF, LLC    Jurisdiction:  Delaware Secretary of State    File No./Date:  2009 1469839  5/8/2009    Collateral:  Leased various computer equipment together with all repairs, accessions,      accessories and replacements       Debtor:  SCHWEITZER MAUDUIT INTERNATIONAL, INC.   Secured Party:  US Bancorp   Jurisdiction:  Delaware Secretary of State    File No./Date:  2009 2479704  8/3/2009    Collateral:  Informational purposes leased equipment       Debtor:  SCHWEITZER MAUDUIT INTERNATIONAL, INC.   Secured Party:  US Bancorp   Jurisdiction:  Delaware Secretary of State    File No./Date:  2010 1366677  4/20/2010   Collateral:  Informational purposes leased equipment       Debtor:  SCHWEITZER MAUDUIT INTERNATIONAL, INC.   Secured Party:  US Bancorp   Jurisdiction:  Delaware Secretary of State    File No./Date:  2010 3104688  9/3/2010    Collateral:  Informational purposes leased equipment      

 

Active 21587107v5 003846.107799       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  U.S. Bancorp Business Equipment Finance Group    Jurisdiction:  Delaware Secretary of State    File No./Date:  2010 4189332  11/30/2010    Collateral:  Informational purposes leased equipment       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  NMGH Financial Services, Inc.    Jurisdiction:  Delaware Secretary of State    File No./Date:  2012 1037359  3/19/2012    Collateral:  Leased equipment and all accessions, additions, replacements,      and substitutions thereto and therefore; and all proceeds including      insurance proceeds thereof       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  Deere Credit, Inc.    Jurisdiction:  Delaware Secretary of State    File No./Date:  2012 2893206  7/27/20112   Collateral:  Leased John Deere equipment together with all attachments,      accessories and components, repairs and improvements;       All accounts, general intangibles, contract rights and chattel      paper relating thereto and all proceeds      Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  COACTIV CAPITAL PARTNERS, Inc.    Jurisdiction:  Delaware Secretary of State    File No./Date:  2012 4235554  11/2/2012    Collateral:  Leased Sharp copies and Kyocera printers including all       attachments and accessories       Debtor:  SCHWEITZER-MAUDUIT INTERNATIONAL, INC.   Secured Party:  CSI Leasing, Inc.    Jurisdiction:  Delaware Secretary of State    File No./Date:  2013 1649392  4/30/2013    Collateral:  Leased Leibert NX Single Module UPS System with all      repairs, accessions, accessories and replacements                           

 

Active 21587107v5 003846.107799    Schedule 6.08: Existing Restrictions         None.EXHIBIT
10.1

STOCKHOLDER
VOTING AGREEMENT

This
Stockholder Voting Agreement (this “Agreement”) is made and entered
into as of December 12, 2013, by and between Sonus Networks, Inc., a Delaware corporation (“Parent”)
and the undersigned stockholder (“Stockholder”) of Performance Technologies, Incorporated, a Delaware corporation
(the “Company”).

RECITALS

A.Concurrently
with the execution and delivery hereof, Parent, Purple Acquisition Subsidiary, Inc., a Delaware
corporation and a direct wholly owned subsidiary of Parent (“Merger Sub”), and the Company are entering into
an Agreement and Plan of Merger of even date herewith (as it may be amended or supplemented from time to time pursuant to the
terms thereof, the “Merger Agreement”), which provides for the merger (the “Merger”) of
Merger Sub with and into the Company in accordance with its terms.

B.Stockholder
is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of such number of shares of each class of capital stock
of the Company as is indicated on the signature page of this Agreement.

C.As
a material inducement to the willingness of Parent and Sub to enter into the Merger Agreement, Parent has required that Stockholder
enter into this Agreement.

NOW,
THEREFORE, intending to be legally bound, the parties hereby agree as follows:

1.                 
Certain Definitions.

(a)              
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement.
For all purposes of and under this Agreement, the following terms shall have the following respective meanings:

“Constructive
Sale” means with respect to any security, a short sale with respect to such security, entering into or acquiring a derivative
contract with respect to such security, entering into or acquiring a futures or forward contract to deliver such security or entering
into any other hedging or other derivative transaction that has the effect of either directly or indirectly materially changing
the economic benefits or risks of ownership of such security.

“Shares”
means (i) all shares of capital stock of the Company owned, beneficially or of record, by Stockholder as of the date hereof, and
(ii) all additional shares of capital stock of the Company acquired by Stockholder, beneficially or of record, during the period
commencing with the execution and delivery of this Agreement and expiring on the Expiration Date (as such term is defined in Section
13 below).

“Transfer”
means, with respect to any security, the direct or indirect assignment, sale, transfer, tender, exchange, pledge, hypothecation,
or the grant, creation or suffrage of a lien, security interest or encumbrance in or upon, or the gift, grant or placement in
trust, or the Constructive Sale or other disposition of such security (including transfers by testamentary or intestate succession,
by domestic relations order or other court order, or otherwise by operation of law) or any right, title or interest therein (including
any right or power to vote to which the holder thereof may be entitled, whether such right or power is granted by proxy or otherwise),
or the record or beneficial ownership thereof, the offer to make such a sale, transfer, Constructive Sale or other disposition,
and each agreement, arrangement or understanding, whether or not in writing, to effect any of the foregoing.

2.                 
Transfer and Voting Restrictions.

(a)              
At all times during the period commencing with the execution and delivery of this Agreement and expiring on the Expiration
Date (as defined in Section 13 hereof), Stockholder shall not, except in connection with the Merger, Transfer or suffer a Transfer
of any of the Shares.

(b)              
Except as otherwise permitted by this Agreement or by order of a court of competent jurisdiction, Stockholder will
not commit any act that could restrict or affect Stockholder’s legal power, authority and right to vote all of the Shares
then owned of record or beneficially by Stockholder or otherwise prevent or disable Stockholder from performing any of his obligations
under this Agreement. Without limiting the generality of the foregoing, except for this Agreement and as otherwise permitted by
this Agreement, Stockholder shall not enter into any voting agreement with any person or entity with respect to any of the Shares,
grant any person or entity any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares, deposit
any of the Shares in a voting trust or otherwise enter into any agreement or arrangement with any person or entity limiting or
affecting Stockholder’s legal power, authority or right to vote the Shares in favor of the approval of the Proposed Transaction
(as defined in Section 3(a) hereof).

(c)               
Stockholder understands and agrees that if Stockholder attempts to Transfer, vote or provide any other person or entity
with the authority to vote any of the Shares other than in compliance with this Agreement, Parent may advise the Company of the
existence of this Agreement to avoid noncompliance herewith, and further Stockholder hereby unconditionally and irrevocably instructs
the Company to not, (i) permit any such Transfer on its books and records, (ii) issue a new certificate representing any of the
Shares, or (iii) record such vote.

3.                 
Agreement to Vote Shares.

(a)              
Prior to the Expiration Date, at every meeting of the stockholders of the Company called, and at every adjournment
or postponement thereof, and on every action or approval by written consent of the stockholders of the Company, Stockholder (in
Stockholder’s capacity as such) shall appear at the meeting or otherwise cause the Shares to be present thereat for purposes
of establishing a quorum and, to the extent not voted by the persons appointed as proxies pursuant to this Agreement, vote (i)
in favor of the adoption of the Merger Agreement and the approval of the other transactions contemplated thereby (collectively,
the “Proposed Transaction”), (ii) against the approval or adoption of any proposal made in opposition to, or
in competition with, the Proposed Transaction, and (iii) against any of the following (to the extent unrelated to the Proposed
Transaction): (A) any merger, consolidation or business combination involving the Company or any of its subsidiaries other than
the Proposed Transaction; (B) any sale, lease or transfer of all or substantially all of the assets of the Company or any of its
subsidiaries; (C) any reorganization, recapitalization, dissolution, liquidation or winding up of the Company or any of its subsidiaries;
or (D) any other action that is intended or would result in a breach of any covenant, representation or warranty or any other
obligation or agreement of the Company under the Merger Agreement or of Stockholder under this Agreement or otherwise impede,
interfere with, delay, postpone, discourage or adversely affect the consummation of the Proposed Transaction (each of (ii) and
(iii), a “Competing Transaction”).

(b)              
If Stockholder is the beneficial owner, but not the record holder, of the Shares, Stockholder agrees to take all commercially
reasonable actions necessary to cause the record holder and any nominees to vote all of the Shares in accordance with Section
3(a).

4.                 
Grant of Irrevocable Proxy.

(a)              
Stockholder hereby irrevocably appoints Parent and each of its executive officers
or other designees (the “Proxyholders”), as Stockholder’s proxy and
attorney-in-fact (with full power of substitution and re-substitution), and grants to the Proxyholders full authority, for and
in the name, place and stead of Stockholder, to vote the Shares, to instruct nominees or record holders to vote the Shares, or
grant a consent or approval in respect of such Shares in accordance with Section 3 hereof and, in the discretion of the Proxyholders
with respect to any proposed adjournments or postponements of any meeting of Stockholders at which any of the matters described
in Section 3 hereof is to be considered.

(b)              
Stockholder hereby revokes any proxies heretofore given by Stockholder in respect of the Shares.

(c)               
Stockholder hereby affirms that the irrevocable proxy set forth in this Section 4 is given in connection with the execution
of the Merger Agreement, and that such irrevocable proxy is given to secure the performance of the duties of Stockholder under
this Agreement. Stockholder hereby further affirms that the irrevocable proxy is coupled with an interest, is intended to be irrevocable
in accordance with the provisions of Section 212 of the Delaware General Corporation Law, and may under no circumstances be revoked.
The irrevocable proxy granted by Stockholder herein is a durable power of attorney and shall survive the dissolution, bankruptcy
or incapacity of Stockholder.

(d)              
The Proxyholders may not exercise this irrevocable proxy on any matter except as provided above. Stockholder may vote
the Shares on all other matters.

(e)               
Parent may terminate this proxy at any time by written notice to Stockholder. The proxy and power of attorney granted
hereunder shall terminate upon the termination of this Agreement.

5.                 
No Solicitation. Subject to Stockholder’s rights in his capacity as an officer or director of the Company
as set forth in Section 6 below, Stockholder shall not directly or indirectly, (a) solicit, initiate, propose, knowingly encourage
or knowingly facilitate the making of any proposal or offer that constitutes, or that could reasonably be expected to lead, to
an Acquisition Proposal, (b) furnish any non-public information regarding the Company or any of its subsidiaries to any person
or entity in connection with or in response to an Acquisition Proposal or a proposal or offer that would result in an Acquisition
Proposal, (c) engage in discussions or negotiations with any person or entity with respect to any Acquisition Proposal, (d) approve,
endorse or recommend any Acquisition Proposal or (e) enter into any letter of intent or similar document or any contract contemplating
or otherwise relating to any Acquisition Transaction.

6.                 
Action in Stockholder Capacity Only. Stockholder is entering into this Agreement solely in Stockholder’s
capacity as a record holder and beneficial owner, as applicable, of Shares and not in Stockholder’s capacity as a director
or officer of the Company. Stockholder makes no agreement or understanding in this Agreement in Stockholder's capacity as a director
or officer of the Company or any of its subsidiaries and nothing in this Agreement: (a) will limit or affect any actions or omissions
taken by Stockholder in stockholder's capacity as such a director or officer, including without limitation in exercising rights
under the Merger Agreement, and no such actions or omissions shall be deemed a breach of this Agreement or (b) will be construed
to prohibit, limit or restrict Stockholder from exercising Stockholder's fiduciary duties as an officer or director to the Company
or its stockholders.

7.                 
Representations and Warranties of Stockholder. Stockholder hereby represents and warrants to Parent as follows:

(a)              
(i) Stockholder is the beneficial or record owner of the shares of capital stock of the Company indicated on the signature
page of this Agreement free and clear of any and all pledges, liens, security interests, mortgage, claims, charges, restrictions,
options, title defects or encumbrances; and (ii) Stockholder does not beneficially own any securities of the Company other than
the shares of capital stock and rights to purchase shares of capital stock of the Company set forth on the signature page of this
Agreement.

(b)              
As of the date hereof and for so long as this Agreement remains in effect (including as of the date of the Company
Meeting, which, for purposes of this Agreement, includes any adjournment or postponement thereof), except as otherwise provided
in this Agreement, Stockholder has full power and authority to (i) make, enter into and carry out the terms of this Agreement
and to grant the irrevocable proxy as set forth in Section 4; and (ii) vote all of the Shares in the manner set forth in
this Agreement without the consent or approval of, or any other action on the part of, any other person or entity (including any
Governmental Entity). Without limiting the generality of the foregoing, Stockholder has not entered into any voting agreement
(other than this Agreement) with any person or entity with respect to any of the Shares, granted any person or entity any proxy
(revocable or irrevocable) or power of attorney with respect to any of the Shares, deposited any of the Shares in a voting trust
or entered into any arrangement or agreement with any person or entity limiting or affecting Stockholder’s legal power,
authority or right to vote the Shares on any matter.

(c)               
This Agreement has been duly and validly executed and delivered by Stockholder and constitutes a valid and binding
agreement of Stockholder enforceable against Stockholder in accordance with its terms. The execution and delivery of this Agreement
and the performance by Stockholder of the agreements and obligations hereunder will not result in any breach or violation of or
be in conflict with or constitute a default under any term of any contract to or by which Stockholder is a party or bound, or
any order or legal requirement to which Stockholder (or any of Stockholder’s assets) is subject or bound, except for any
such breach, violation, conflict or default which, individually or in the aggregate, would not impair or adversely affect Stockholder’s
ability to perform Stockholder’s obligations under this Agreement or render inaccurate any of the representations made herein.

(d)              
Except as disclosed pursuant to the Merger Agreement, no investment banker, broker, finder or other intermediary is
entitled to a fee or commission from Parent, Merger Sub or the Company in respect of this Agreement or the Merger Agreement based
upon any arrangement or agreement made by or on behalf of Stockholder.

(e)               
Stockholder understands and acknowledges that Parent and Merger Sub are entering into the Merger Agreement in reliance
upon Stockholder’s execution and delivery of this Agreement and the representations and warranties of Stockholder contained
herein.

8.                 
Termination. This Agreement shall terminate and be of no further force or effect whatsoever as of the earlier
of (a) such date and time as the Merger Agreement shall have been validly terminated pursuant to the terms of Section 8.1 thereof
or (b) the Effective Time (the “Expiration Date”); provided, however, that (i) Section 9 shall survive
the termination of this Agreement, and (ii) the termination of this Agreement shall not relieve Stockholder from any liability
for any inaccuracy in or breach of any representation, warranty or covenant contained in this Agreement.

9.                 
Miscellaneous Provisions.

(a)              
Amendments. No amendment of this Agreement shall be effective against any party unless it shall be in writing
and signed by Parent and Stockholder.

(b)              
Waivers. No action taken pursuant to this Agreement, including any investigation by or on behalf of any party,
or any failure or delay on the part of any party in the exercise of any right hereunder, shall be deemed to constitute a waiver
by the party taking such action of compliance with any representations, warranties, or covenants contained in this Agreement.
The waiver by any party of a breach of any provision hereunder shall not operate or be construed as a waiver of any prior or subsequent
breach of the same or any other provision hereunder. Any waiver by a party of any provision of this Agreement shall be valid only
if set forth in a written instrument signed on behalf of such party.

(c)               
Entire Agreement. This Agreement (including the Schedules and Exhibits hereto) constitutes the entire agreement
between the parties hereto and supersedes any prior understandings, agreements or representations by or between the parties hereto,
written or oral, with respect to the subject matter hereof.

(d)              
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the
State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or
any other jurisdiction) that would cause the application of laws of any jurisdictions other than those of the State of Delaware.

(e)               
Consent to Exclusive Jurisdiction; Venue; Service of Process. Each of the parties hereto (i) consents to submit
itself to the exclusive personal jurisdiction of the Delaware Court of Chancery, New Castle County, or if that court does not
have jurisdiction, a federal court sitting in the State of Delaware in any action or proceeding arising out of or relating to
this Agreement, (ii) agrees that all claims in respect of such action or proceeding may be heard and determined in any such court,
(iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any
such court, and (iv) agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.
Each of the parties hereto waives any defense or inconvenient forum to the maintenance of any action or proceeding so brought
and waives any bond, surety or other security that might be required of any other party with respect thereto. Any party hereto
may make service on another party by sending or delivering a copy of the process to the party to be served at the address and
in the manner provided for the giving of notices in Section 9(n). Nothing in this Section 9(e), however, shall affect the right
of any party to serve legal process in any other manner permitted by law.

(f)                
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARENT OR THE STOCKHOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE
AND ENFORCEMENT HEREOF.

(g)              
Attorneys’ Fees. In any action at law or suit in equity with respect to this Agreement or the rights of
any of the parties, the prevailing party in such action or suit shall be entitled to receive its reasonable attorneys’ fees
and all other reasonable costs and expenses incurred in such action or suit.

(h)              
Assignment and Successors. This Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties and their respective successors and permitted assigns, including Stockholder’s estate and heirs
upon the death of Stockholder, provided that except as otherwise specifically provided herein, neither this Agreement nor any
of the rights, interests or obligations of the parties may be assigned or delegated by either of the parties without prior written
consent of the other party except that Parent, without obtaining the consent of the Stockholder,
shall be entitled to assign this Agreement or all or any of its rights hereunder to an Affiliate of Parent. No assignment by Parent
under this Section 9(h) shall relieve Parent of its obligations under this Agreement.
Any assignment in violation of the foregoing shall be void and of no effect.

(i)                
No Third Party Rights. Nothing in this Agreement, express or implied, is intended to or shall confer upon any
person or entity (other than the parties) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

(j)                
Further Assurances. Stockholder agrees to cooperate fully with Parent and to execute and deliver such further
documents, certificates, agreements and instruments and to take such other actions as may be reasonably requested by Parent to
evidence or reflect the transactions contemplated by this Agreement and to carry out the intent and purpose of this Agreement.
To the extent applicable in connection with the Proposed Transaction, Stockholder hereby agrees that Parent may publish and disclose
in the Form S-4 Registration Statement (including all documents and schedules filed with the SEC), such Stockholder’s identity
and ownership of Shares and the nature of such Stockholder’s commitments, arrangements and understandings under this Agreement
and may further file this Agreement as an Exhibit to the Form S-4 Registration Statement or in any other filing made by Parent
with the SEC relating to the Proposed Transaction. Stockholder agrees to notify Parent promptly of any additional shares of capital
stock of the Company of which Stockholder becomes the record or beneficial owner after the date of this Agreement.

(k)              
Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held
invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

(l)                
Time of Essence. Time is of the essence with regard to all dates and time periods set forth or referred to in
this Agreement.

(m)            
Specific Performance; Injunctive Relief. The parties acknowledge that Parent shall be irreparably harmed by,
and that there shall be no adequate remedy at law for, a violation of any of the covenants or agreements of Stockholder set forth
in this Agreement. Therefore, Stockholder hereby agrees that, in addition to any other remedies that may be available to Parent
upon any such violation, Parent shall have the right to enforce such covenants and agreements by specific performance, injunctive
relief or by any other means available to Parent at law or in equity without posting any bond or other undertaking. Stockholder
agrees that Stockholder will not oppose the granting of any injunction, specific performance or other equitable relief on the
basis that Parent has an adequate remedy of law or an injunction, award of specific performance or other equitable relief is not
an appropriate remedy for any reason at law or in equity.

(n)              
Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly delivered
(i) four business days after being sent by registered or certified mail, return receipt requested, postage prepaid, (ii) one business
day after being sent for next business day delivery, fees prepaid, via a reputable nationwide overnight courier service or (iii)
the business day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail (upon confirmation
of receipt): (A) if to Parent, to the address provided in the Merger Agreement, including to the persons designated therein to
receive copies; and (ii) if to Stockholder, to Stockholder’s address shown below Stockholder’s signature on the last
page hereof.

(o)              
Counterparts and Signature. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each of the parties hereto and delivered to the other party, it being understood that all parties
need not sign the same counterpart. This Agreement may be executed and delivered by facsimile or “PDF” transmission.

(p)              
Interpretation. When reference is made in this Agreement to a Section, such reference shall be to a Section
of this Agreement unless otherwise indicated. The headings contained in this Agreement are for convenience of reference only and
shall not affect in any way the meaning or interpretation of this Agreement. The language used in this Agreement shall be deemed
to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against
any party. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine
or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. Any reference to any federal,
state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise. Whenever the words “include”, “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

(q)              
Rules of Construction. Each party hereto has participated in the drafting of this Agreement, which each party
acknowledges is the result of extensive negotiations between the parties. If an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provision.

    	 

    	 

    

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date first above written.

 

	PARENT:

        

        /s/   RaymondP. Dolan                                              

        By:
        Raymond P. Dolan

        Its:
        President and Chief Executive Officer
	STOCKHOLDER:

        /s/
        John M. Slusser

        By:
        John M. Slusser

        Its:

        Address:

        383
        Pond Road

        Honeoye
        Falls, NY 14472

	 	 

        Shares
        Beneficially Owned by Stockholder:

                254,761 shares
        of Company Common Stock

                          0 shares
        of Company Preferred Stock

               405,000 Company
        Stock Options to acquire Company Common Stock

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