Document:

Exhibit 10(k)(xix)

 

 

 

 

EXECUTION VERSION

 

   

 

	
        US$685,000,000

         

        FIVE-YEAR REVOLVING CREDIT FACILITY AGREEMENT

         

        dated as of

        June 18, 2015,

        As AMENDED AND RESTATED as of November
        7, 2017

        among

        ALBANY INTERNATIONAL CORP.

        ALBANY INTERNATIONAL HOLDING (SWITZERLAND) AG

        ALBANY INTERNATIONAL EUROPE GMBH

        and

        ALBANY INTERNATIONAL CANADA CORP.,

        as Borrowers

         

        the other Borrowing Subsidiaries,

         

        the Lenders Party Hereto,

         

        and

         

        JPMORGAN CHASE BANK, N.A.,

        as Administrative
        Agent,

        _________________________________________________________________

         

        JPMORGAN CHASE BANK, N.A.

        and

        MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

        WELLS FARGO SECURITIES, LLC,

        THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

        as Co-Lead Arrangers and Joint Bookrunners

         

        BANK OF AMERICA, N.A.,

        WELLS FARGO BANK, NATIONAL ASSOCIATION, and

        THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

        as Co-Syndication Agents

        and

        BRANCH
        BANKING AND TRUST COMPANY,

        CITIZENS BANK, N.A., and

        TD BANK, N.A.,

        as Co-Documentation Agents

[CS&M Ref No. 6701-352]

     

     

    

TABLE
OF CONTENTS

Page

	ARTICLE I

                                                                                 

                                                                                Definitions

	SECTION 1.01.   Defined Terms	1
	SECTION 1.02.   Classification of Loans and Borrowings	34
	SECTION 1.03.   Terms Generally	34
	SECTION 1.04.   Accounting Terms; GAAP	35
	SECTION 1.05.   Currency Translation	36
	ARTICLE II

                                                                                 

                                                                                The Credits

	SECTION 2.01.   Commitments	36
	SECTION 2.02.   Loans and Borrowings	37
	SECTION 2.03.   Requests for Borrowings	38
	SECTION 2.04.   Swingline Loans	39
	SECTION 2.05.   Letters of Credit	40
	SECTION 2.06.   Funding of Borrowings	47
	SECTION 2.07.   Interest Elections	48
	SECTION 2.08.   Termination, Reduction and Increase of Commitments	49
	SECTION 2.09.   Repayment of Loans; Evidence of Debt	52
	SECTION 2.10.   Prepayment of Loans	52
	SECTION 2.11.   Fees	54
	SECTION 2.12.   Interest	55
	SECTION 2.13.   Alternate Rate of Interest	57
	SECTION 2.14.   Increased Costs	58
	SECTION 2.15.   Change in Legality	60
	SECTION 2.16.   Break Funding Payments	61
	SECTION 2.17.   Taxes	62
	SECTION 2.18.   Payments Generally; Pro Rata Treatment; Sharing of Setoffs	66
	SECTION 2.19.   Mitigation Obligations; Replacement of Lenders	68
	SECTION 2.20.   Borrowing Subsidiaries	69
	SECTION 2.21.   Defaulting Lenders	70
	ARTICLE III

                                                                                 

                                                                                Representations and Warranties

	SECTION 3.01.   Organization; Powers	72
	SECTION 3.02.   Authorization; Enforceability	72
	SECTION 3.03.   Governmental Approvals; No Conflicts	72

    i 

     

    

	SECTION 3.04.   Financial Statements; No Material Adverse Change	72
	SECTION 3.05.   Properties; Liens	72
	SECTION 3.06.   Litigation and Environmental Matters	73
	SECTION 3.07.   Compliance with Laws	73
	SECTION 3.08.   Investment Company Status	73
	SECTION 3.09.   Taxes	73
	SECTION 3.10.   ERISA	74
	SECTION 3.11.   Disclosure	74
	SECTION 3.12.   Subsidiaries	74
	SECTION 3.13.   Solvency	75
	SECTION 3.14.   Federal Reserve Regulations	75
	SECTION 3.15.   Anti-Corruption Laws and Sanctions	75
	ARTICLE IV

                                                                                 

                                                                                Conditions

	SECTION 4.01.   Restatement Effective Date	76
	SECTION 4.02.   Conditions to All Extensions of Credit	77
	SECTION 4.03.   Initial Credit Event for each Borrowing Subsidiary	77
	ARTICLE V

                                                                                 

                                                                                Affirmative Covenants

	SECTION 5.01.   Financial Statements and Other Information	78
	SECTION 5.02.   Notices of Material Events	80
	SECTION 5.03.   Existence; Conduct of Business	80
	SECTION 5.04.   Payment of Obligations	81
	SECTION 5.05.   Maintenance of Properties	81
	SECTION 5.06.   Insurance	81
	SECTION 5.07.   Books and Records; Inspection Rights	81
	SECTION 5.08.   Compliance with Laws	81
	SECTION 5.09.   Use of Proceeds and Letters of Credit	82
	SECTION 5.10.   Further Assurances	82
	SECTION 5.11.   Compliance with Swiss Withholding Tax Rules	82
	ARTICLE
VI

                                                                                                            

                                                                                                           Negative Covenants

	SECTION 6.01.   Subsidiary Debt	82
	SECTION 6.02.   Negative Pledge	83
	SECTION 6.03.   Consolidations, Mergers and Sales of Assets	85
	SECTION 6.04.   Transactions with Affiliates	86
	SECTION 6.05.   Restricted Payments	87
	SECTION 6.06.   Limitations on Sale-Leasebacks	87

    ii 

     

    

	SECTION 6.07.   Investments, Loans, Advances, Guarantees and Acquisitions	88
	SECTION 6.08.   Leverage Ratio	89
	SECTION 6.09.   Interest Coverage Ratio	90
	SECTION 6.10.   Lines of Business	90
	ARTICLE VII

                                                                                 

                                                                                Events of Default

	SECTION 7.01.   Events of Default	90
	ARTICLE VIII

                                                                                 

                                                                                The Administrative Agent

	ARTICLE IX

                                                                                 

                                                                                Guarantee

	ARTICLE X

                                                                                 

                                                                                Miscellaneous

	SECTION 10.01.   Notices	98
	SECTION 10.02.   Waivers; Amendments	99
	SECTION 10.03.   Expenses; Indemnity; Damage Waiver	101
	SECTION 10.04.   Successors and Assigns	102
	SECTION 10.05.   Survival	107
	SECTION 10.06.   Counterparts; Integration; Effectiveness	107
	SECTION 10.07.   Severability	108
	SECTION 10.08.   Right of Setoff	108
	SECTION 10.09.   Governing Law; Jurisdiction; Consent to Service of Process	108
	SECTION 10.10.   WAIVER OF JURY TRIAL	109
	SECTION 10.11.   Headings	109
	SECTION 10.12.   Confidentiality	109
	SECTION 10.13.   Conversion of Currencies	110
	SECTION 10.14.   Interest Rate Limitation	111
	SECTION 10.15.   U.S.A. PATRIOT Act	111
	SECTION 10.16.   No Fiduciary Relationship	111
	SECTION 10.17.   Non-Public Information	111
	SECTION 10.18.   Securities Principles	112
	SECTION 10.19.   Acknowledgement and Consent to Bail-In of EEA Financial Institutions	112

    iii 

     

    

	Schedules:	 
	 	 
	Schedule 1.01	Applicable Funding Account
	Schedule 2.01	Commitments
	Schedule 2.05	Existing Letters of Credit
	Schedule 3.06	Disclosed Matters
	Schedule 3.10	Foreign Plans
	Schedule 3.12	Subsidiaries
	Schedule 6.01	Existing Subsidiary Indebtedness
	Schedule 6.02	Existing Liens
	Schedule 6.04	Certain Transactions with Affiliates
	Schedule 6.07	Existing Investments
	 	 
	Exhibits:	 
	 	 
	Exhibit A-1	Form of Borrowing Subsidiary Agreement
	Exhibit A-2	Form of Borrowing Subsidiary Termination
	Exhibit B	Form of Borrowing Request
	Exhibit C-1	Form of Issuing Bank Agreement
	Exhibit C-2	Form of US Tax Certificate
	Exhibit D	Form of Subsidiary Guarantee Agreement
	Exhibit E	Form of Indemnity, Subrogation and Contribution Agreement
	Exhibit F	Form of Assignment and Assumption
	Exhibit G-1	Form of Opinion of Charles J. Silva Jr., General Counsel of Albany International Corp.
	Exhibit G-2	Form of Opinion of Homburger AG
	Exhibit G-3	Form of Opinion of Stewart McKelvey
	Exhibit H	Form of Reaffirmation Agreement

 

 

 

    iv 

     

    

FIVE-YEAR
REVOLVING CREDIT FACILITY AGREEMENT dated as of June 18, 2015, as AMENDED AND RESTATED as of April 8, 2016, as further AMENDED
AND RESTATED as of November 7, 2017, among ALBANY INTERNATIONAL CORP., a Delaware corporation (“Company”), ALBANY
INTERNATIONAL HOLDING (SWITZERLAND) AG, a Swiss corporation with a Guernsey branch (“AIH”), ALBANY INTERNATIONAL
EUROPE GMBH, a Swiss limited liability company (“AIE”), ALBANY INTERNATIONAL CANADA CORP., a Nova Scotia unlimited
liability corporation (“AIC”), the other BORROWING SUBSIDIARIES from time to time party hereto, the LENDERS
from time to time party hereto and JPMORGAN CHASE BANK, N.A., a national banking association organized and existing under the laws
of the United States, as Administrative Agent.

The Borrowers (such term and each other
capitalized term used but not otherwise defined herein having the meaning assigned to it in Article I) have requested the
Lenders to amend and restate the Existing Credit Agreement on the terms set forth herein to provide for (a) the Lenders to extend
credit in the form of Revolving Loans in an aggregate principal amount at any time outstanding not in excess of the equivalent
of US$685,000,000 less the sum of the LC Exposure and the Swingline Exposure at such time, (b) the Swingline Lender
to extend credit in the form of Swingline Loans in an aggregate principal amount at any time outstanding not in excess of US$25,000,000
and (c) the Issuing Banks to issue Letters of Credit in an aggregate face amount at any time outstanding not in excess of
the equivalent of US$50,000,000.

The proceeds of Revolving Loans will be
used for general corporate purposes of the Company and the Subsidiaries, including to refinance Indebtedness, if any, under the
Existing Credit Agreement and acquisitions. The Letters of Credit and the proceeds of the Swingline Loans will be used for general
corporate purposes of the Company and the Subsidiaries.

The Lenders are willing to extend such
credit to the Borrowers and the Issuing Banks are willing to issue such Letters of Credit on the terms and subject to the conditions
set forth herein. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Defined Terms. As
used in this Agreement, the following terms have the meanings specified below:

    1

     

    

“ABR”, 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 Alternate Base Rate.

“Accession Agreement”
has the meaning specified in Section 2.08(d).

“Adjusted LIBO Rate”
means, with respect to any LIBOR Borrowing denominated in US Dollars for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/100 of 1.00%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.

“Administrative Agent”
means JPMCB in its capacity as administrative agent for the Lenders hereunder, or any successor appointed in accordance with Article VIII.
Unless the context requires otherwise (and in any event for all purposes of Article VIII), the term “Administrative Agent”
shall include any Affiliate of JPMCB through which JPMCB shall perform any of its obligations in such capacity hereunder.

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative Agent.

“AEC”
means Albany Engineered Composites, Inc., currently a Wholly Owned Subsidiary.

“AEC Joint
Venture Entity” means any entity owned by the Company and/or its subsidiaries and one or more Persons that are not Affiliates
of the Company that results from a Permitted AEC Transaction, whether in corporate, partnership, limited liability company, trust
or other legal form.

“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. The status of any individual as an officer or director of any Person shall
not, in and of itself, be deemed to make such individual an Affiliate of such Person.

“Aggregate Global Tranche Revolving
Credit Exposure” means the sum of the Global Tranche Revolving Credit Exposures of all the Global Tranche Lenders; provided,
that for purposes of this definition, in determining the Global Tranche Revolving Credit Exposure of the Lender that is the Swingline
Lender, the Swingline Exposure of such Lender shall be deemed to equal its Global Tranche Percentage of all outstanding Swingline
Loans.

“Aggregate Revolving Credit Exposure”
means the sum of the Aggregate Global Tranche Revolving Credit Exposure and the Aggregate US Tranche Revolving Credit Exposure.

“Aggregate US Tranche Revolving
Credit Exposure” means the sum of the US Tranche Revolving Credit Exposures of all the US Tranche Lenders.

    2

     

    

“Agreement” means this
amended and restated Five-Year Revolving Credit Facility Agreement, as the same may hereafter be modified, supplemented or amended
from time to time.

“AIC”
has the meaning specified in the preamble.

“AIE”
has the meaning specified in the preamble.

“AIH”
has the meaning specified in the preamble.

“Alternate Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB
Rate in effect on such day plus 1⁄2 of 1% per annum and (c) the Adjusted LIBO Rate on such day (or if such day is not a Business
Day, the immediately preceding Business Day) for a deposit in US Dollars with a maturity of one month plus 1% per annum. For purposes
of clause (c) above, the Adjusted LIBO Rate on any day shall be based on the rate per annum appearing on the Reuters Screen LIBOR01
Page displaying interest rates for US Dollar deposits with a maturity of one month in the London interbank market (or on any successor
or substitute screen provided by Reuters, or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided on such screen, as reasonably determined by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or
the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate
or the Adjusted LIBO Rate, respectively.

“Alternative Currency”
means Euro, Canadian Dollars and any other currency (other than US Dollars) (a) that is freely transferable and convertible into
US Dollars in the London market, (b) for which LIBO Rates can be determined by reference to the Reuters Screen “LIBOR 01”
page as provided in the definition of “LIBO Rate”, (c) for which Exchange Rates can be determined in accordance with
the definition of “Exchange Rate” set forth in this Section 1.01 and (d) that has been designated by the Administrative
Agent as an Alternative Currency at the request of the Company and with the consent of each Global Tranche Lender.

“Anti-Corruption Laws”
means all laws and regulations of any jurisdiction applicable to the Borrowers or any of their Subsidiaries from time to time concerning
or relating to bribery or corruption.

“Applicable Funding Account”
means, as to each Borrower, the applicable account with the Administrative Agent (or one of its Affiliates) specified on Schedule
1.01 hereto or set forth in such Borrower’s Borrower Subsidiary Agreement entered pursuant to Section 2.20, or any other
account with the Administrative Agent (or one of its Affiliates) that shall be specified in a written notice signed by a Financial
Officer of the applicable Borrower or the Company and delivered to and approved by the Administrative Agent.

    3

     

    

“Applicable Rate” means,
for any day with respect to (a) any ABR Loan, LIBOR Loan, EURIBOR Loan or CDOR Loan or (b) the Commitment Fees, as the case may
be, the applicable rate per annum set forth under the appropriate caption in the table below, based upon the Leverage Ratio:

	Category	Leverage Ratio	Commitment Fee	ABR Spread	LIBOR/EURIBOR/CDOR  Spread
	Category 1	< 1.00 to 1.00	0.225%	0.250%	1.250%
	Category 2	
        > 1.00:1.00 and

        < 2.00:1.00
	0.250%	0.375%	1.375%
	Category 3	
        > 2.00:1.00 and

        < 3.00:1.00
	0.275%	0.500%	1.500%
	Category 4	> 3.00:1.00	0.300%	0.750%	1.750%

 

Except as set forth below, the Leverage Ratio used to determine
the Applicable Rate during the period from and including any Financial Statement Delivery Date to but excluding the next Financial
Statement Delivery Date shall be that in effect at the date of the balance sheet delivered on such first Financial Statement Delivery
Date under Section 5.01(a) or (b); provided that (i) prior to the first Financial Statement Delivery Date after the
Restatement Effective Date, the Applicable Rate shall be determined by reference to Category 3 and (ii) if any financial statements
required to have been delivered under Section 5.01(a) or (b) shall not have been delivered by the date required under such
Section, the Applicable Rate shall, until such financial statements shall have been delivered, be determined by reference to Category 4.

“Approved Fund” means
any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

“Arrangers” means JPMorgan
Chase Bank, N.A, Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo
Securities, LLC, in their capacity as co-lead arrangers of the revolving credit facility provided for herein.

“Assignment and Assumption”
means an Assignment and Assumption substantially in the form of Exhibit F or such other form as shall be 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.

    4

     

    

“Bail-In Action” means
the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of
such EEA Financial Institution.

“Bail-In Legislation”
means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of
the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the
EU Bail-In Legislation Schedule.

“Bankruptcy Event” means,
with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation
of its business appointed for it, or, in the good faith determination of the Administrative Agent, 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 Bankruptcy
Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person
by a Governmental Authority or instrumentality thereof; provided, further, that such ownership interest does not
result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement
of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority or instrumentality) to
reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

“Board” means the Board
of Governors of the Federal Reserve System of the United States of America.

“Borrowers” means the
Company and the Borrowing Subsidiaries.

“Borrowing” means (a) Loans
of the same Class and Type made, converted or continued on the same date and, in the case of LIBOR, CDOR or EURIBOR Loans, as to
which a single Interest Period is in effect or (b) a Swingline Loan.

“Borrowing Minimum”
means (a) in the case of a Borrowing denominated in US Dollars, US$5,000,000, (b) in the case of a Borrowing denominated in
Euros, €5,000,000, (d) in the case of a Borrowing denominated in Canadian Dollars, C$5,000,000 and (e) in the case of a Borrowing
denominated in any other Alternative Currency, the smallest amount of such Alternative Currency that is an integral multiple of
1,000,000 units of such currency and that has a US Dollar Equivalent in excess of US$5,000,000.

“Borrowing Multiple”
means (a) in the case of a Borrowing denominated in US Dollars, US$1,000,000, (b) in the case of a Borrowing denominated in
Euros, €1,000,000, (c) in the case of a Borrowing denominated in Canadian Dollars, C$1,000,000 and (d) in the case
of a Borrowing denominated in any other Alternative Currency, 1,000,000 units of such currency.

    5

     

    

“Borrowing Request”
means a request by a Borrower for a Borrowing in accordance with Section 2.03.

“Borrowing Subsidiary”
means AIH, AIE, AIC, and at any time, each Subsidiary that has been designated as a Borrowing Subsidiary by the Company pursuant
to Section 2.20 and that has not ceased to be a Borrowing Subsidiary as provided in such Section.

“Borrowing Subsidiary Agreement”
means a Borrowing Subsidiary Agreement substantially in the form of Exhibit A-1.

“Borrowing Subsidiary Termination”
means a Borrowing Subsidiary Termination substantially in the form of Exhibit A-2.

“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 (a) when used in connection with a LIBOR Loan denominated in any currency, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in deposits in such currency
in the London interbank market, (b) when used in connection with a Loan denominated in any Alternative Currency other than Euro,
the term “Business Day” shall also exclude any day on which banks are not open for dealings in deposits in such
currency in the principal financial center of the country of such Alternative Currency and (c) when used in connection with a Loan
denominated in Euro, the term “Business Day” shall also exclude any day on which the TARGET payment system is
not open for the settlement of payments in Euro.

“Canadian Borrowing Subsidiary”
means any Borrowing Subsidiary that is a Canadian Subsidiary.

“Canadian Dollars” or
“C$” means the lawful money of Canada.

“Canadian Subsidiary”
means any Subsidiary that is incorporated or otherwise organized under the laws of Canada or any political subdivision thereof.

“Capital Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which obligations are or would have been required to be
classified and accounted for as capital leases on a balance sheet of such Person under GAAP, subject to Section 1.04.

“CDOR”, 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 CDO Rate.

“CDO Rate” means,
with respect to any CDOR Loan for any Interest Period, the applicable Screen Rate as of the Specified Time on the Quotation Day.

    6

     

    

“Change in Control”
means (a) the 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) other than Permitted Shareholders, of shares representing 35% or more of the aggregate ordinary voting power represented
by the issued and outstanding capital stock of the Company at a time when Permitted Shareholders together (i) do not have
the unrestricted power directly or indirectly to vote or direct the vote of shares representing a percentage of such aggregate
ordinary voting power that is greater than the percentage so owned by any such Person or group or (ii) do not Control the
Company; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by Persons
who were neither (i) nominated or approved prior to their election by the board of directors of the Company nor (ii) appointed
by directors so nominated; or (c) the occurrence of any “change in control” or similar event, however denominated,
resulting in an obligation on the part of the Company or any Subsidiary to repay, redeem or repurchase, or to offer to repay, redeem
or repurchase, Material Indebtedness.

“Change in Law” means
(a) the adoption of any law, rule or regulation after the Restatement Effective Date, (b) any change in any law, rule
or regulation or in the interpretation or application thereof by any Governmental Authority after the Restatement Effective Date
or (c) compliance by any Lender or Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of such Lender
or Issuing Bank or by such Lender’s or such 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 if such request, guideline or directive is made
or issued after the Restatement Effective Date and reflects a change after the Restatement Effective Date in the policies or practices
to which such request, guideline or directive relates; provided that, notwithstanding anything herein to the contrary, (i)
the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued
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 a “Change in Law”, regardless of the date enacted,
adopted, promulgated or issued.

“Claims” has the meaning
specified in Section 2.18(c).

“Class”, when used in
reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Global Tranche
Revolving Loans, US Tranche Revolving Loans or Swingline Loans, and (b) any Commitment, refers to whether such Commitment is a
Global Tranche Commitment or a US Tranche Commitment.

“Code” means the Internal
Revenue Code of 1986, as amended from time to time.

    7

     

    

“Commitments” means
the Global Tranche Commitments and the US Tranche Commitments. The aggregate amount of the Commitments as of the Restatement Effective
Date is US$685,000,000.

“Commitment Fees” has
the meaning specified in Section 2.11(a).

“Commitment Increase”
has the meaning specified in Section 2.08(d).

“Company” has the meaning
specified in the preamble.

“Consolidated EBITDA”
means, for any period, Consolidated Net Income for such period plus, without duplication and to the extent deducted from
revenues in determining Consolidated Net Income, the sum of (a) Consolidated Interest Expense for such period, (b) income
tax expense for such period, (c) depreciation and amortization for such period, (d) all non-cash charges (including
any non-cash expenses relating to stock option exercises or other non-cash, stock-based compensation such as restricted stock units)
during such period (provided that any cash payment made with respect to any such non-cash charge shall be subtracted in
computing Consolidated EBITDA for the period in which such cash payment is made), (e) all charges related to the early retirement
of Indebtedness during such period, (f) restructuring charges not in excess of (1) US$25,000,000 in any period of four fiscal quarters
or (2) US$70,000,000 in the aggregate for all periods, in the case of each of such clauses (1) and (2), commencing with the fiscal
quarter during which the Restatement Effective Date shall have occurred, (g) the amount of any pension settlement or curtailment
expense (including (1) any such expenses, incurred in prior periods, the recognition of which has been deferred in accordance with
GAAP, and (2) any such expenses in the form of premium payments or other obligations or amounts paid or payable to third
parties as consideration for the assumption or defeasance of such obligations) required or permitted to be recognized during
such period as the result of the permanent settlement or defeasance of any pension obligation of the Company or any Subsidiary,
provided that the aggregate amount to be added back with respect to all such pension settlement or curtailment expense pursuant
to this clause (g) for all periods commencing with the fiscal quarter during which the Restatement Effective Date shall have occurred
shall not exceed US$100,000,000 (of which not more than US$40,000,000 may represent add-backs of cash expenses), and (h) any losses
attributable to sales of business operations not in the ordinary course of business during such period and minus, without
duplication, (1) all non-cash gains and income for such period, (2) any gains related to the early retirement of Indebtedness for
such period and (3) any gains attributable to sales of business operations not in the ordinary course of business for such period,
all determined on a consolidated basis for the Company and its Subsidiaries in accordance with GAAP.

“Consolidated Interest Expense”
means, for any period, the gross interest expense, whether expensed or capitalized (including the interest component in respect
of Capital Lease Obligations), accrued or paid by the Company and its Subsidiaries during such period but excluding the amortization
of deferred financing costs, determined on a consolidated basis in accordance with GAAP. For purposes of the foregoing, gross interest
expense shall be determined after giving effect to any net payments received by

    8

     

    

the Company or its Subsidiaries under interest rate protection
agreements, the effect of which is required to be reflected in the Company’s income statement under “Interest Expense”.

“Consolidated Net Income”
means, for any period, net income or loss of the Company and its Subsidiaries for such period, determined on a consolidated basis
in accordance with GAAP.

“Consolidated Subsidiary”
means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of the Company in its consolidated
financial statements if such financial statements were prepared on such date in accordance with GAAP.

“Consolidated Tangible Net Worth”
means at any date the consolidated common shareholders’ equity of the Company and its Consolidated Subsidiaries less their
consolidated Intangible Assets, all determined as of such date.

“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.

“Credit Event” means
any borrowing or the issuance of any Letter of Credit.

“Credit Party” means
the Administrative Agent, each Issuing Bank, the Swingline Lender or any other Lender.

“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, subject to Section 2.21, any Lender that (a) has failed, within two Business Days of the date required to be funded or paid,
to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii)
pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such
Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination
that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied,
(b) has notified the Company or any Credit Party in writing, or has made a public statement to the effect, that it does not intend
or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates
that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified
and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other
agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by a Credit Party, acting
in good faith, to provide a certification in writing from an authorized officer of such Lender that it

    9

     

    

will comply with its obligations (and is financially able
to meet such obligations) to fund prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans
under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such
Credit Party’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent, (d) has
become the subject of a Bankruptcy Event or (e) has, or has a direct or indirect parent company that has, become the subject of
a Bail-In Action.

“Disclosed Matters”
means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.

“Domestic Subsidiary”
means a Subsidiary that is incorporated or organized in the United States of America or any state or other political subdivision,
territory or possession thereof.

“EEA Financial Institution”
means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of
an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described
in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of
an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country”
means any member state of the European Union, Iceland, Liechtenstein and Norway.

“EEA Resolution Authority”
means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA Financial Institution.

“Effective Date” means
June 18, 2015, the date on which the conditions specified in Section 4.01 of the Existing Credit Agreement were satisfied.

“Eligible Assignee”
means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any other Person, other than, in each case, a natural
person, the Company or any subsidiary or other Affiliate of the Company.

“EMU Legislation” means
the legislative measures of the European Union for the introduction of, changeover to or operation of the Euro in one or more member
states.

“Environmental Laws”
means all laws, rules, regulations, codes, ordinances, permits, licenses, 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 presence, management, release or threatened release of any Hazardous Material or to health
and safety matters.

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“Environmental Liability”
means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Company 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 presence, 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
any 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 to acquire any such equity ownership
interests.

“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 the Company, 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-day notice period is waived); (b) a failure by any Plan to satisfy
the “minimum funding standards” (as defined in Section 412 of the Code or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) a determination that any Plan is, or is expected
to be, in “at risk” status (as defined in Section 430(i)(4) of the Code or Section 303(i)(4) of ERISA); (e) the
incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination
of any Plan; (f) the receipt by the Company 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; (g) the incurrence by the Company
or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (h) the receipt by the Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
the Company 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 or in “endangered”
or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA).

“EU Bail-In Legislation Schedule”
means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from
time to time.

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“Euro” or “€”
means the single currency of the European Union as constituted by the Treaty on European Union and as referred to in the EMU Legislation.

“EURIBO Rate” means,
with respect to any EURIBOR Loan for any Interest Period, the applicable Screen Rate as of the Specified Time on the Quotation
Day.

“EURIBOR”, 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 EURIBO Rate.

“Event of Default” has
the meaning specified in Article VII.

“Exchange Rate” means,
on any day, for purposes of determining the US Dollar Equivalent of any Alternative Currency, the rate at which such Alternative
Currency may be exchanged into US Dollars on such day determined by using the rate of exchange for the purchase of the US Dollars
with such Alternative Currency in the London foreign exchange market at or about 11:00 a.m. London time on such day as displayed
by ICE Data Services  as the “ask price”, or as displayed on such other information service which publishes that
rate of exchange from time to time in place of ICE Data Services. In the event that such rate does not appear on ICE Data Services
(or on any information service which publishes that rate of exchange from time to time in place of ICE Data Services), the equivalent
of such amount in US Dollars will be determined in such manner as the Company and the Administrative Agent shall agree (including
by reference to any such other publicly available service for displaying exchange rates) or, in the absence of such agreement,
by the Administrative Agent using any method of determination it deems appropriate in its discretion).

“Excluded Divestiture”
means any sale of assets (including Equity Interests in any Subsidiary) for cash by the Company or any Subsidiary at a time when
the Leverage Ratio, giving pro forma effect to such sale (but not to any related repayment of Indebtedness of the Company or any
Subsidiary, other than any prepayment of Indebtedness related to the assets sold that is required under the terms of an agreement
existing prior to, and not entered into in contemplation of, such sale) as if it had occurred at the beginning of the period of
four consecutive fiscal quarters ended on or most recently prior to such time, shall be less than 3.25 to 1.00.

“Excluded Taxes” means,
(a) with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by
or on account of any obligation of a Borrower hereunder, (i) Taxes on or measured by net income (however denominated), franchise
Taxes, and branch profits Taxes, in each case imposed by the United States of America (or any state or municipality thereof),
or by any Governmental Authority as a result of a present or former connection between the recipient and the jurisdiction of the
Governmental Authority imposing such Tax or any political subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the recipient having executed, delivered or performed its obligations or received a payment under,
or enforced, this Agreement or any other Loan

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Document), (ii) any branch profit Taxes imposed by the
United States of America or any similar Tax imposed by any other jurisdiction described in clause (i) above, (iii) any United
States backup withholding Taxes and (iv) in the case of any Lender, any withholding Tax that is attributable to such Lender’s
failure to comply with Section 2.17(f); (b) with respect to any US Tranche Lender (other than a Lender that becomes a US Tranche
Lender through an assignment under Section 2.19(b) or following an Event of Default with respect to the Company under Section 7.01(h)
or (i)), any withholding Tax that is imposed by the United States of America on amounts payable from locations within such jurisdiction
to such Lender’s US Tranche Lending Office, to the extent such Tax is imposed (assuming the taking by such Borrower and such
Lender of all actions required in order for available exemptions from such Tax to be effective) pursuant to any law in effect and
applicable at the time such Lender becomes a party to this Agreement (or designates a new US Tranche Lending Office), except to
the extent that such Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts with respect to such withholding Tax pursuant to Section 2.17; (c) with respect to any Global Tranche
Lender (other than a Lender that becomes a Global Tranche Lender through an assignment under Section 2.19(b) or following an Event
of Default with respect to the Company under Section 7.01(h) or (i)), (i) any withholding Tax that is imposed on amounts payable
by a Global Tranche Borrower organized in the United States of America, Switzerland or Canada by any taxation authority of such
Borrower’s jurisdiction of organization on amounts payable from locations within such jurisdiction to such Lender’s
Global Tranche Lending Office designated for Global Tranche Borrowers organized in such jurisdiction, to the extent such Tax is
imposed (assuming the taking by such Borrower and such Lender of all actions required in order for available exemptions from such
Tax to be effective) pursuant to any law in effect and applicable at the time such Lender becomes a party to this Agreement (or
designates a new Global Tranche Lending Office for Global Tranche Borrowers organized in such jurisdiction), except to the extent
that such Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts with respect to such withholding Tax pursuant to Section 2.17 or (ii) any Swiss Withholding Tax that
is imposed on amounts payable by a Swiss Borrowing Subsidiary to such Lender’s applicable Global Tranche Lending Office,
to the extent such Swiss Withholding Tax is imposed as a direct result of (A) a breach by such Lender (but not by any other Lender)
under Section 2.17(h) or (B) an assignment by such Lender (but not by any other Lender) without the consent of such Swiss Borrowing
Subsidiary in breach of the requirements of clause (ii) of Section 10.04(d) or a sale by such Lender (but not by any other Lender)
of a participation, a sub-participation, or any other arrangement to a Non-Qualifying Bank without the consent of such Swiss Borrowing
Subsidiary in breach of the requirements of clause (ii) of Section 10.04(d) or a breach of a Lender of the representations and
warranties in clause (ii) of Section 10.04(d); and (d) any U.S. Federal withholding Taxes imposed under FATCA. It is
understood and agreed that, as to any Global Tranche Lender, the status of any Swiss Withholding Tax as an Excluded Tax shall not
affect the rights of such Lender under Section 2.12(h) except to the extent provided in Section 2.12(i).

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“Existing
Credit Agreement” means this Agreement as amended and restated on April 8, 2016, and in effect immediately prior to its
restatement in the form hereof.

“Existing Letters of Credit”
means letters of credit listed on Schedule 2.05 that were outstanding immediately prior to the Restatement Effective Date
and issued by an Issuing Bank.

“FATCA” means Sections
1471 through 1474 of the Code, as of the date of this Agreement, (or any amended or successor version to the extent substantively
comparable thereto and not materially more onerous to comply with), any current or future regulations thereunder or official interpretations
thereof, any intergovernmental agreements (and any related laws or official administrative guidance) implementing the foregoing,
and any agreement entered into pursuant to Section 1471(b)(1) of the Code or such an intergovernmental agreement.

“Federal Funds Effective Rate”
means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depository institutions
(as determined in such manner as the NYFRB shall set forth on its public website from time to time) and published on the next succeeding
Business Day by the NYFRB as the Federal Funds Effective Rate; provided that if the Federal Funds Effective Rate, determined
as provided above, would be less than zero, the Federal Funds Effective Rate shall for all purposes of this Agreement be zero.

“Financial Officer”
means, as to any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.

“Financial Statement Delivery
Date” means each date on which the Company delivers financial statements under Section 5.01(a) or (b) (including
by filing with the Securities and Exchange Commission and notifying the Administrative Agent of such filing as provided in Section
5.01).

“Foreign Lender” means
any Lender that is organized under the laws of a jurisdiction other than the United States of America or a political subdivision
thereof.

“Foreign Person” means
a person that is a corporation (from a U.S. federal income tax perspective) that is not a U.S. Person, or any person owned directly
or indirectly by such corporation.

“Foreign Plans” has
the meaning specified in Section 3.10(b).

“Foreign Subsidiary”
means any Subsidiary other than a Domestic Subsidiary.

“GAAP” means generally
accepted accounting principles in the United States of America.

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“Global Tranche” has
the meaning specified in the definition of “Tranche”.

“Global Tranche Borrower”
means (a) the Company, (b) any US Borrowing Subsidiary, (c) any Swiss Borrowing Subsidiary, (d) any Canadian Borrowing Subsidiary
and (e) any Borrowing Subsidiary that is not a US Borrowing Subsidiary, a Swiss Borrowing Subsidiary or a Canadian Borrowing Subsidiary
and that has been designated by the Administrative Agent as a Global Tranche Borrower at the request of the Company and with the
consent of each Global Tranche Lender.

“Global Tranche Commitment”
means, with respect to each Global Tranche Lender, the commitment of such Global Tranche Lender to make Global Tranche Revolving
Loans pursuant to Section 2.01(a) and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as
an amount representing the maximum aggregate amount of such Global Tranche Lender’s Global Tranche Revolving Credit Exposure,
as such commitment may be reduced or increased from time to time pursuant to Section 2.08 or assignments by or to such Global Tranche
Lender pursuant to Section 10.04. The initial amount of each Global Tranche Lender’s Global Tranche Commitment is set forth
on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Global Tranche Lender shall have assumed its
Global Tranche Commitment, as the case may be. The aggregate amount of Global Tranche Commitments on the Restatement Effective
Date is US$685,000,000.

“Global Tranche Lender”
means a Lender with a Global Tranche Commitment or a Global Tranche Revolving Credit Exposure.

“Global Tranche Lending Office”
means, with respect to any Global Tranche Lender, such office(s) as such Lender (or any Affiliate of such Lender) shall have specified
from time to time as its “Global Tranche Lending Office(s)” by notice to the Company and the Administrative Agent.
A Global Tranche Lender may designate different Global Tranche Lending Offices for Loans to Global Tranche Borrowers in different
jurisdictions.

“Global Tranche Percentage”
means, with respect to any Global Tranche Lender at any time, the percentage of the aggregate Global Tranche Commitments represented
by such Global Tranche Lender’s Global Tranche Commitment at such time; provided that in the case of Section 2.21
when a Defaulting Lender shall exist, “Global Tranche Percentage” shall mean the percentage of the total Global Tranche
Commitments (disregarding any Defaulting Lender’s Global Tranche Commitment) represented by such Lender’s Global Tranche
Commitment. If the Global Tranche Commitments have expired or been terminated, the Global Tranche Percentages shall be determined
on the basis of the Global Tranche Commitments most recently in effect, giving effect to any assignments.

“Global Tranche Revolving Credit
Exposure” means, with respect to any Global Tranche Lender at any time, the sum of (a) the aggregate amount of the
US Dollar Equivalents of such Global Tranche Lender’s outstanding Global Tranche Revolving

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Loans, (b) the amount of such Global Tranche Lender’s
LC Exposure and (c) the amount of such Global Tranche Lender’s Swingline Exposure.

“Global Tranche Revolving Loans”
means Loans made by the Global Tranche Lenders pursuant to Section 2.01(a). Each Global Tranche Revolving Loan denominated in US
Dollars shall be a LIBOR Loan or, at the request of the applicable Borrower as provided herein and solely in the case of a Global
Tranche Revolving Loan made to the Company or a US Borrowing Subsidiary, an ABR Loan. Each Global Tranche Revolving Loan denominated
in Euros shall be a EURIBOR Loan. Each Global Tranche Revolving Loan denominated in Canadian Dollars shall be a CDOR Loan. Each
Global Tranche Revolving Loan denominated in an Alternative Currency other than Euros or Canadian Dollars shall be a LIBOR Loan.

“Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

“Guarantee” of or by
any Person means any obligation, contingent or otherwise, of such Person 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 endorsements for collection
or deposit in the ordinary course of business.

“Guarantee Beneficiaries”
has the meaning specified in Article IX.

“Guarantee Requirement”
means, at any time, that (a) the Subsidiary Guarantee Agreement (or a supplement thereto) shall have been executed by (i) each
Domestic Subsidiary (other than (A) any Domestic Subsidiary that is a subsidiary of a Foreign Subsidiary, (B) any Domestic Subsidiary
that (x) does not conduct any business operations, (y) has assets with a total book value not in excess of US$1,000 and (z) does
not have any Indebtedness outstanding and (C) any Subsidiary that is created as a result of a Permitted AEC Transaction) existing
at such time and (ii) each Foreign Subsidiary that is a direct or indirect parent corporation of a Borrower (it being understood
that each such Foreign Subsidiary will guarantee only the Obligations of such Borrower), shall have been delivered to the Administrative
Agent and shall be in full force and effect, (b) the Indemnity, Subrogation and Contribution Agreement (or a supplement thereto)
shall have been executed by the Company and each Domestic Subsidiary party to the

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Subsidiary Guarantee Agreement, shall have been delivered
to the Administrative Agent and shall be in full force and effect and (c) as to each Subsidiary that shall become a party to the
Subsidiary Guarantee Agreement after the Restatement Effective Date, the Administrative Agent shall have received documents comparable
to those delivered under paragraphs (b) and (f) of Section 4.01 with respect to Subsidiaries party to such Subsidiary Guarantee
Agreement on the Restatement Effective Date.

“Guarantor” means the
Company or any Subsidiary Guarantor.

“Guidelines” means,
together, (i) Guideline S-02.123 in relation to interbank loans of September 22, 1986 (Merkblatt “Verrechnungssteuer auf
Zinsen von Bankguthaben, deren Gläubiger Banken sind (Interbankguthaben)” vom 22. September 1986), (ii) Guideline
S-02.122.1 in relation to bonds of April 1999 (Merkblatt “Obligationen” vom April 1999), (iii) Guideline S-02.130.1
in relation to money market instruments and accounts receivable of April 1999 (Merkblatt“Geldmarktpapiere und Buchforderungen
inländischer Schuldner” vom April 1999), (iv) Guideline S-02.128 in relation to syndicated credit facilities of
January 2000 (Merkblatt “Steuerliche Behandlung von Konsortialdarlehen, Schuldscheindarlehen, Wechseln und Unterbeteiligungen”
vom Januar 2000) and (v) Circular Letter no. 34 in relation to customer credit balances of July 26, 2011 (Kreisschreiben
Nr. 34 "Kundenguthaben" vom 26. Juli 2011), in each case as issued, amended or substituted from time to time
by the Swiss Federal Tax Administration.

“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, materials or wastes of any nature regulated pursuant to any Environmental Law.

“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement.

“Immaterial Subsidiary”
means any Subsidiary (other than any Borrower, any Guarantor or any Subsidiary that directly or indirectly owns capital stock of
any Borrower or Guarantor) with respect to which both

(a) the sum of (i) the consolidated
book value of the assets of such Subsidiary and (ii) the aggregate consolidated book value of the assets of each other Subsidiary
that has a lower consolidated book value than the assets of the Subsidiary specified in clause (i) is less than 3% of the
aggregate consolidated book value of the total assets of the Company and all the Subsidiaries, in each case determined as of the
last day of the most recently ended fiscal year for which financial statements are available, and

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(b) the sum of (i) such Subsidiary’s
consolidated net income and (ii) the aggregate consolidated net income of each other Subsidiary that has a lower consolidated
net income than that of the Subsidiary specified in clause (i) is less than 3% of Consolidated Net Income, in each case for
the most recently ended fiscal year for which financial statements are available.

“Increase Effective Date”
has the meaning specified in Section 2.08(d).

“Increasing Lender”
has the meaning specified in Section 2.08(d).

“Indebtedness” of any
Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances
of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person,
(d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts
payable and obligations under Hedging Agreements, in each case incurred in the ordinary course of business), (e) 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, (f) all
Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations
of such Person as an account party in respect of letters of credit and letters of guaranty and (i) all obligations of such Person
in respect of bankers’ acceptances. 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 Taxes other than Excluded Taxes and Other Taxes.

“Indemnitee” has the
meaning specified in Section 10.03(b).

“Indemnity, Subrogation and Contribution
Agreement” means an Indemnity, Subrogation and Contribution Agreement substantially in the form of Exhibit E
hereto.

“Initial Borrowings”
has the meaning specified in Section 2.08(d).

“Intangible Assets”
means the amount (to the extent reflected in determining consolidated common shareholders’ equity of the Company in accordance
with GAAP) of (i) all write-ups (other than write-ups resulting from foreign currency transactions and write-ups
of assets of a going concern business made within twelve months after the acquisition of such business) subsequent to December 31,
2016, in the book value of any asset owned by the Company or a Consolidated Subsidiary, (ii) all investments in unconsolidated
Subsidiaries and all equity investments in Persons that are

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not Subsidiaries, in each case to the extent that the carrying
value of any such investment on any Company’s books exceeds its historical cost and (iii) all unamortized debt discount
and expense, unamortized deferred charges (but only to the extent that the aggregate amount thereof exceeds US$15,000,000), goodwill,
patents, trademarks, service marks, trade names, copyrights, organization or developmental expenses and other intangible assets.

“Interest Election Request”
means a request by a Borrower to convert or continue a Borrowing in accordance with Section 2.07.

“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 LIBOR Loan, EURIBOR Loan or CDOR 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 LIBOR, EURIBOR or CDOR 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 LIBOR, EURIBOR or CDOR Borrowing, the period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months thereafter (or, solely in the case of an Interest
Period commencing on the Restatement Effective Date, on such other day as shall have been requested by the Company, approved by
the Administrative Agent and communicated to the applicable Lenders), as the applicable Borrower may elect; provided that
(i) 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 such next succeeding Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest Period 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 thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

“Interpolated Screen Rate”
means, with respect to any LIBOR, EURIBOR or CDOR Loan, in each case for any Interest Period, the rate per annum that results from
interpolating on a linear basis between (a) the applicable Screen Rate for the longest maturity for which a Screen Rate is
available that is shorter than such Interest Period and (b) the applicable Screen Rate for the shortest maturity for which
a Screen Rate is available that is longer than such Interest Period, in each case as of the Specified Time on the Quotation Day.

“ISP” means, with respect
to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking
Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

    19

     

    

“Issuing Bank” means
JPMCB, Bank of America N.A. and each other Lender that may become an Issuing Bank hereunder from time to time by entering into
an Issuing Bank Agreement with the Company, each in its capacity as an issuer of Letters of Credit hereunder, and the successors
of any such person in such capacity as provided in Section 2.05(i). Each Issuing Bank may, in its discretion, arrange for
one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank”
shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

“Issuing Bank Agreement”
means an Issuing Bank Agreement between an Issuing Bank, the Administrative Agent and the Company substantially in the form of
Exhibit C-1.

“Issuing Bank Fee” has
the meaning specified in Section 2.11(b).

“JPMCB” means JPMorgan
Chase Bank, N.A. and its successors.

“LC Commitment” means,
as to any Issuing Bank, the maximum permitted amount of the LC Exposure that may be attributable to Letters of Credit issued by
such Issuing Bank. The initial amount of each Issuing Bank’s LC Commitment is set forth on Schedule 2.01 or in
such Issuing Bank’s Issuing Bank Agreement. The LC Commitment of any Issuing Bank may be increased or decreased by an agreement
between the Borrower and such Issuing Bank.

“LC Disbursement” means
a payment made by an Issuing Bank pursuant to a Letter of Credit.

“LC Exchange Rate” means,
on any day, with respect to US Dollars in relation to any Alternative Currency, the rate at which US Dollars may be exchanged into
such Alternative Currency, as set forth at approximately 12:00 noon, New York City time, on such day on the applicable Bloomberg
Foreign Currency Cross Rates page.  In the event that such rate does not appear on the applicable Bloomberg Foreign Currency
Cross Rates page, the LC Exchange Rate shall be determined by reference to such other publicly available service for displaying
exchange rates as may be agreed upon by the Administrative Agent, the applicable Issuing Bank and the Company or, in the
absence of such agreement, such LC Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative
Agent or the applicable Issuing Bank in the market where its foreign currency exchange operations in respect of such currency are
then being conducted, at or about 11:00 a.m., London time, on such date for the purchase of such Alternative Currency with US Dollars
for delivery two Business Days later; provided that if at the time of any such determination, for any reason, no such spot
rate is being quoted, the Administrative Agent or the applicable Issuing Bank, after consultation with the Company, may
use any reasonable method it deems appropriate to determine such rate, and such determination shall be conclusive absent manifest
error.

“LC Exposure” means,
at any time, the sum of (a) the US Dollar Equivalents of the undrawn amounts of all outstanding Letters of Credit at such
time plus

    20

     

    

(b) the sum of the US Dollar Equivalents of the amounts
of all LC Disbursements that have not yet been reimbursed by or on behalf of the applicable Borrowers at such time (giving effect
to any conversion of the Borrowers’ reimbursement obligations in respect of any LC Disbursements into US Dollar denominated
obligations as provided in Section 2.05). The LC Exposure of any Lender at any time shall be its Global Tranche Percentage of the
aggregate LC Exposure at such time, adjusted to give effect to any reallocation under Section 2.21 of the LC Exposures of Defaulting
Lenders in effect at such time.

“LC Fronting Fee” has
the meaning specified in Section 2.11(b).

“LC Participation Calculation
Date” means, with respect to any LC Disbursement made in a currency other than US Dollars, Euros, Canadian Dollars or
another Alternative Currency, (a) the date on which the applicable Issuing Bank shall advise the Administrative Agent that
it purchased with US Dollars the currency used to make such LC Disbursement or (b) if such Issuing Bank shall not advise the Administrative
Agent that it made such a purchase, the date on which such LC Disbursement is made.

“LC Participation Fee”
has the meaning specified in Section 2.11(b).

“Lenders” means the
Persons listed on Schedule 2.01, and any other Person that shall have become a Lender pursuant to an Assignment and
Assumption or Section 2.08(d), 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, and, as of the Restatement Effective Date, the Existing Letters of Credit,
other than any such letter of credit that shall have ceased to be a “Letter of Credit” outstanding hereunder pursuant
to Section 10.05.

“Leverage Increase Election”
has the meaning specified in Section 6.08.

“Leverage Increase Period”
has the meaning specified in Section 6.08.

“Leverage Increase Termination
Notice” has the meaning specified in Section 6.08.

“Leverage Ratio” means,
on any date, the ratio of (i) Total Debt at such date to (ii) Consolidated EBITDA for the period of four consecutive
fiscal quarters of the Company ended on or most recently prior to such date (and solely for purposes of this definition, if any
Person or business unit shall have been acquired or divested by the Company or its Consolidated Subsidiaries or if the Company
shall have merged with any Person during such period, Consolidated EBITDA shall be determined on a pro forma basis as if such acquisition,
divestiture or merger, and any related incurrence or repayment of Indebtedness, had occurred at the beginning of such period).

    21

     

    

“LIBO Rate” means, with
respect to any LIBOR Loan denominated in any currency for any Interest Period, the applicable Screen Rate as of the Specified Time
on the Quotation Day.

“LIBOR”, 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 or the LIBO Rate.

“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 lessor under any capital lease 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, each Borrowing Subsidiary Agreement, each Borrowing Subsidiary Termination, the promissory notes, if any, executed
and delivered pursuant to Section 2.09(e), the Subsidiary Guarantee Agreement, the Indemnity, Subrogation and Contribution
Agreement, the Reaffirmation Agreement and the Letters of Credit.

“Loan Parties” means
the Borrowers and the Guarantors; provided that, solely for purposes of Section 6.07, the Loan Parties shall not include
AIH, AIE, AIC or any Subsidiary that is excluded from the definition of “Subsidiary Guarantor” pursuant to the proviso
contained in such definition.

“Loans” means the loans
made by the Lenders to the Borrowers pursuant to this Agreement.

“Local Time” means (a)
with respect to any Loan or Borrowing denominated in US Dollars or any Letter of Credit (other than a Letter of Credit issued for
the account of a Canadian Borrowing Subsidiary), New York City time, (b) with respect to any Loan or Borrowing denominated in any
currency other than US Dollars or Canadian Dollars, London time and (c) with respect any Loan or Borrowing denominated in Canadian
Dollars or any Letter of Credit issued for the account of a Canadian Borrowing Subsidiary, Toronto time.

“Marketable Securities”
means any debt or equity securities for which an active trading market exists and price quotations are available.

“Material Adverse Change”
means any event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

“Material Adverse Effect”
means a material adverse effect on (a) the business, operations, property, or financial condition of the Company and the Subsidiaries
taken as a whole, or (b) the validity or enforceability of any of the Loan Documents or the rights and remedies of the Administrative
Agent, the Issuing Banks or the Lenders thereunder.

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“Material Indebtedness”
means Indebtedness (other than the Obligations under this Agreement or under any other Loan Document), or obligations in respect
of one or more Hedging Agreements, of any one or more of the Company and the Subsidiaries in an aggregate principal amount exceeding
US$20,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations
of the Company or any Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements provided for in such Hedging Agreement) that the Company or such Subsidiary would be required
to pay if such Hedging Agreement were terminated at such time.

“Material Subsidiary”
means each Subsidiary that is not an Immaterial Subsidiary.

“Maturity
Date” means November 7, 2022.

“MNPI” means material
information concerning the Company and the Subsidiaries and their securities that has not been disseminated in a manner making
it available to investors generally, within the meaning of Regulation FD under the Securities Act and the Exchange Act.

“Moody’s” means
Moody’s Investors Service, Inc. and any successors thereto.

“Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

“Net Proceeds” means,
with respect to any event, an amount equal to (a) the cash proceeds received in respect of such event including (i) any
cash received in respect of any non-cash proceeds, but only as and when received, (ii) in the case of a casualty, insurance
proceeds, and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the
sum of (i) all reasonable fees and out-of-pocket expenses paid by the Company and the Subsidiaries to third parties
(other than Affiliates) in connection with such event, (ii) in the case of a sale or other disposition of an asset (including
pursuant to a casualty or condemnation), the amount of all payments required to be made by the Company and the Subsidiaries as
a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment
as a result of such event, and (iii) the amount of all taxes paid (or reasonably estimated to be payable) by the Company and
the Subsidiaries, and the amount of any reserves established by the Company and the Subsidiaries to fund contingent liabilities
reasonably estimated to be payable, that are directly attributable to such event (as determined reasonably and in good faith by
the chief financial officer of the Company).

“Non-Qualifying Bank”
means any Person who does not qualify as a Qualifying Bank.

“Non-Refundable Portion”
has the meaning given such term in Section 2.12(i).

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“Non-Wholly Owned Subsidiary”
means a Subsidiary that is not a Wholly Owned Subsidiary.

“NYFRB”
means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any
day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect
on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none
of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal
funds transaction quoted at 11:00 a.m. (New York City time) on such day received by the Administrative Agent from a Federal funds
broker of recognized standing selected by it; provided further, that if the NYFRB Rate, determined as provided above,
would be less than zero, the NYFRB Rate shall for all purposes of this Agreement be zero.

 

“Obligations” means
(a) the due and punctual payment of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans,
when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment
required to be made under this Agreement in respect of any Letter of Credit, when and as due, including payments in respect of
reimbursement of LC Disbursements, interest thereon and obligations to provide cash collateral, and (iii) all other monetary obligations
of the Company or any Subsidiary under this Agreement and each other Loan Document, including obligations to pay fees, expense
reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless
of whether allowed or allowable in such proceeding), (b) the due and punctual payment of all obligations of the Company or
any Subsidiary under each Hedging Agreement that (i) was in effect on the Effective Date with a counterparty that was a Lender
(or an Affiliate thereof) as of the Effective Date or (ii) shall have been entered into after the Effective Date with any
counterparty that shall have been a Lender (or an Affiliate thereof) at the time such Hedging Agreement was entered into, (c) the
due and punctual performance of all other obligations of each Borrower under or pursuant to this Agreement and each of the other
Loan Documents, and (d) the due and punctual payment and performance of all the obligations of each other Loan Party under or pursuant
to this Agreement and each of the other Loan Documents.

“Other Taxes” means
any and all present or future stamp, recording, transfer, sales, documentary, excise, property or similar taxes, charges or levies
(and any interest, penalties or additions relating thereto) arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

    24

     

    

“Overnight Bank Funding Rate”
means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by US-managed banking
offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on its public website
from time to time) and published on the next succeeding Business Day by the NYFRB as an Overnight Bank Funding Rate (from and after
such date as the NYFRB shall commence to publish such composite rate).

 

“Parent” means, with
respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

“Participant” has the
meaning specified in Section 10.04(c).

“Participant Register”
has the meaning given such term in Section 10.04(c).

“PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

“Permitted AEC Transaction”
means (i) the sale of Equity Interests in AEC to a third party for fair value, (ii) the contribution of all or a portion of the
assets of AEC (and any related technology and assets of the Company as the Company may determine) to an entity newly-formed for
the purpose of establishing joint ownership with one or more third parties in exchange for Equity Interests in such newly-formed
entity, (iii) any sale for fair value of Equity Interests in such newly-formed entity (in one or more transactions) to any third
parties pursuant to the terms of the shareholders’ agreement, joint ownership agreement or other constitutive or operative
document relating to such newly-formed entity (as such agreements or documents may be amended from time to time), and/or (iv) provision
of additional services by the Company or a Subsidiary to such joint ownership entity (and/or a Wholly-Owned Subsidiary thereof)
on a basis at least sufficient to compensate the Company or such Subsidiary for its cost in providing such services (as such cost
is determined in good faith by the Company or such Subsidiary); provided that after giving effect to any such sale of Equity
Interests in AEC, contribution of assets of AEC or sale of Equity Interests in any such newly-formed entity, the Company shall
own, directly or indirectly, not less than 70% of the equity of AEC or such newly-formed entity, as the case may be, and shall
Control AEC or such newly-formed entity. For purposes of subclause (iii) of this definition, “fair value” at any time
shall include a formula price theretofore agreed or accepted by the Company on the basis of the Company’s good faith estimate
of future fair value.

“Permitted Investments”
means:

(a) direct obligations of, or obligations
the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof
to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing
within one year from the date of acquisition thereof;

    25

     

    

(b) investments in commercial paper
maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;

(c) investments in certificates
of deposit, bankers’ 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 domestic office of any commercial bank
organized under the laws of the United States of America or any State thereof which has a combined capital and surplus and
undivided profits of not less than US$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) shares of money market mutual
or similar funds that invest exclusively in assets satisfying the requirements of clauses (a) through (d) above;

(f) money market mutual or similar
funds offered by any Lender or Affiliate of a Lender; and

(g) investments by Albany International
Tecidos Tecnicos Ltda. in the debt securities of Bradesco Empresas not to exceed US$5,000,000 in the aggregate at any time;

provided that, in the case of any investment by a
Foreign Subsidiary, “Permitted Investments” shall also include: (i) direct obligations of the sovereign nation
(or any agency thereof) in which such Foreign Subsidiary is organized and is conducting business or obligations fully and unconditionally
guaranteed by such sovereign nation (or any agency thereof), (ii) investments of the type and maturity described in clauses
(a) through (d) above of foreign obligors, which investments or obligors (or the parents of such obligors) have ratings described
in such clauses or equivalent ratings from comparable foreign rating agencies and (iii) shares of money market mutual or similar
funds which invest exclusively in assets otherwise satisfying the requirements of this definition (including this proviso).

“Permitted Leverage Ratio Level”
has the meaning specified in Section 6.08(a).

“Permitted Shareholders”
means (a) J. Spencer Standish, (b) any of J. Spencer Standish’s descendants or legatees, (c) any executor, personal
representative or spouse of J. Spencer Standish or any of his descendants, (d) any corporation, trust or other entity holding voting
stock of the Company as to which one or more of the Persons identified in the foregoing clauses (a) through (c) have Control, (e)
any trust as to which Persons so identified in clauses (a) through (c) above hold at least 85% of the beneficial interest in the
income and principal of the trust disregarding the interests of the contingent remaindermen and (f) any employee stock ownership
plan for the benefit of employees of the Company.

    26

     

    

“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, sponsored, maintained or contributed to by the Company or any ERISA Affiliate.

“Prepayment Event” means
any sale, transfer or other disposition of any property or asset of the Company or any Subsidiary in respect of which the Commitments
are required to be reduced pursuant to Section 6.03(i) or 6.06(c).

“Prime Rate”
means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal
office in New York City. Each change in the Prime Rate shall be effective from and including the date such change is publicly
announced as being effective.

“Private Side Lender Representatives”
means, with respect to any Lender, representatives of such Lender that are not Public Side Lender Representatives.

“Public Side Lender Representatives”
means, with respect to any Lender, representatives of such Lender that do not wish to receive MNPI.

“Qualifying Bank” means
any entity which is recognized as a bank by the banking laws in force in its country of incorporation, or if acting through a branch,
in the country of that branch, and which exercises as its main purpose a true and genuine banking activity, having bank personnel,
premises, communication devices of its own and the authority of decision-making.

“Quotation Day” means,
in respect of (a) the determination of the LIBO Rate for any Interest Period for Loans in US Dollars or in any Alternative Currency,
the day that is two Business Days prior to the first day of such Interest Period; (b) any Interest Period for Loans in Euro,
the day which is two Target Operating Days prior to the first day of such Interest Period; and (c) any Interest Period for Loans
in Canadian Dollars, the first day of such Interest Period; in each case unless market practice changes for loans in the applicable
currency priced by reference to rates quoted in the relevant interbank market, in which case the Quotation Day for such currency
shall be determined by the Administrative Agent (in consultation with the Company) in accordance with market practice for such
loans priced by reference to rates quoted in the relevant interbank market (and if quotations would normally be given by leading
banks for such loans priced by reference to rates quoted in the relevant interbank market on more than one day, the Quotation Day
shall be the last of those days).

“Reaffirmation Agreement”
means a Reaffirmation Agreement substantially in the form of Exhibit H hereto.

    27

     

    

“Receivables” means
all accounts, contract rights, chattel paper, instruments, general intangibles and other assets arising out of or in connection
with the sale or lease of goods or the rendering of services.

“Register” has the meaning
specified in Section 10.04.

“Regulation D” means
Regulation D of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

“Regulation T”
means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or
thereof.

“Regulation U”
means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or
thereof.

“Regulation X”
means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or
thereof.

“Related Parties” means,
with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person’s Affiliates.

“Required Lenders” means,
at any time, Lenders having Revolving Credit Exposure and unused Commitments representing more than 50% of the Aggregate Revolving
Credit Exposure and unused Commitments at such time; provided, that for purposes of this definition, (a) in determining
the Global Tranche Revolving Credit Exposure of the Lender that is the Swingline Lender, the Swingline Exposure of such Lender
shall be deemed to equal its Global Tranche Percentage of all outstanding Swingline Loans and (b) the unused Global Tranche Commitment
of such Lender shall be determined in a manner consistent with the preceding clause (a).

“Restatement Effective Date”
means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 10.02).

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests of
the Company, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancelation or termination of any such Equity Interests or any option,
warrant or other right to acquire any such Equity Interests; provided that none of (a) any dividend or distribution consisting
solely of common stock of the Company, (b) the payment of cash in lieu of fractional shares in connection with any such common
stock dividend or distribution or (c) the acceptance of shares of common stock of the Company in payment of the exercise price
of any option to acquire any such shares of common stock of the Company shall constitute a Restricted Payment.

“Revolving Credit Exposure”
means a Global Tranche Revolving Credit Exposure or a US Tranche Revolving Credit Exposure, as applicable.

    28

     

    

“Revolving Loan” means
any Global Tranche Revolving Loan or US Tranche Revolving Loan, as applicable.

“S&P” means Standard
& Poor’s or any successor thereto.

“Sanctioned
Country” means, at any time, a country, region or territory which is itself the subject or target of Sanctions that broadly
prohibit dealings with or in such country, region or territory (as of the date hereof, Crimea, Cuba, Iran, North Korea and Syria).

“Sanctioned Person”
means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons
maintained by the Office of Foreign Assets Control (“OFAC”) of the US Department of the Treasury, the US Department
of State, or the United Nations Security Council, the European Union or any European Union member state, (b) any Person located,
organized or resident in a Sanctioned Country or (c) any Person 50% or more owned by a Person or Persons described in the foregoing
clauses (a) and (b).

“Sanctions”
means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the US
government, including those administered by OFAC or the US Department of State, or (b) the United Nations Security Council, the
European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom.

“Screen Rate” means
(a) in respect of the LIBO Rate for any Interest Period, a rate per annum equal to the London interbank offered rate as administered
by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for deposits in the applicable
currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period as displayed on
the Reuters screen page that displays such rate (currently LIBOR01 or LIBOR02) (or, in the event such rate does not appear on a
page of the Reuters screen, on the appropriate page of such other information service that publishes such rate as shall be selected
by the Administrative Agent from time to time in its reasonable discretion), (b) in respect of the EURIBO Rate for any Interest
Period, the percentage per annum determined by the European Money Markets Institute (or any other Person that takes over the administration
of such rate) for such Interest Period as set forth on the Reuters screen page that displays such rate (currently EURIBOR01) (or,
in the event such rate does not appear on a page of the Reuters screen, on the appropriate page of such other information service
that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion) and (c)
in respect of the CDO Rate for any Interest Period, the average rate for bankers acceptances with a tenor equal to the Interest
Period as displayed on the Reuters screen page that displays such rate (currently CDOR01) (or, in the event such rate does not
appear on a page of the Reuters screen, on the appropriate page of such other information service that publishes such rate as shall
be selected by the Administrative Agent from time to time in its reasonable discretion). If, as to any currency, no Screen Rate
shall be available for a particular Interest Period but Screen Rates shall be available for maturities both longer and shorter
than such Interest

    29

     

    

Period, then the Screen Rate for such Interest Period shall
be the Interpolated Screen Rate. Notwithstanding the foregoing, if the Screen Rate, determined as provided above in this definition,
would be less than zero, the Screen Rate shall for all purposes of this Agreement be zero.

“Specified Time” means
(a) with respect to the LIBO Rate, 11:00 a.m., London time, (b) with respect to the EURIBO Rate, 11:00 a.m., Frankfurt time and
(c) with respect to the CDO Rate, 10:15 a.m. Toronto time.

“Statutory Reserve Rate”
means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves),
expressed as a decimal, established by the Board to which the Administrative Agent is subject for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include
those imposed pursuant to such Regulation D. Adjusted LIBOR 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.

“Subsequent Borrowings”
has the meaning specified in Section 2.08(d).

“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.
For purposes of Section 4.02(a), references to “subsidiaries” herein shall be deemed, on the date of any subsequent
borrowing to finance the acquisition of any Person, to include any Person to be acquired on such date.

“Subsidiary” means any
subsidiary of the Company.

“Subsidiary Guarantee Agreement”
means a Guarantee Agreement substantially in the form of Exhibit D hereto.

“Subsidiary Guarantor”
means each Subsidiary that is or is required to be a party to, or each Domestic Subsidiary that is not required under the Guarantee
Requirement but elects, at any time, to become a party to, the Subsidiary Guarantee

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Agreement, and the permitted successors and assigns of each
such Person; provided that, solely for purposes of Sections 6.01, 6.03 and 6.07, any Subsidiary that has not guaranteed
the Obligations of all the Borrowers hereunder will not be deemed to be a Subsidiary Guarantor.

“Swingline Exposure”
means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any
Lender at any time shall be the sum of (a) its Global Tranche Percentage of the aggregate principal amount of all Swingline Loans
outstanding at such time (excluding, in the case of the Lender that is the Swingline Lender, Swingline Loans made by it and outstanding
at such time to the extent that the other Global Tranche Lenders shall not have funded their participations in such Swingline Loans),
adjusted to give effect to any reallocation under Section 2.21 of the Swingline Exposures of Defaulting Lenders in effect
at such time, and (b) in the case of the Lender that is the Swingline Lender, the aggregate principal amount of all Swingline Loans
made by such Lender and outstanding at such time to the extent that the other Global Tranche Lenders shall not have funded their
participations in such Swingline Loans.

“Swingline Lender” means
JPMCB, in its capacity as lender of Swingline Loans hereunder.

“Swingline Loan” means
a Loan made pursuant to Section 2.04.

“Swiss Borrowing Subsidiary”
means any Borrowing Subsidiary that is a Swiss Subsidiary.

“Swiss Federal Tax Administration”
means the Swiss federal tax administration referred to in Article 34 of the Swiss Withholding Tax Act.

“Swiss Subsidiary”
means any Subsidiary that is incorporated or otherwise organized under the laws of, or resident for tax purposes in, Switzerland
or any political subdivision thereof, including, with respect to AIH, the Guernsey branch.

“Swiss Ten Non-Bank Rule”
means the rule that the aggregate number of Lenders under this Agreement that are Non-Qualifying Banks must not at any time exceed
ten, all in accordance with the Guidelines.

“Swiss Twenty Non-Bank Rule”
means the rule that the aggregate number of creditors other than Qualifying Banks of any Swiss Borrowing Subsidiary under all outstanding
debts relevant for the classification as debenture (Kassenobligation) must not at any time exceed twenty, all in accordance
with the Guidelines.

“Swiss Withholding Tax”
means the withholding tax imposed by the Swiss Federal Withholding Tax Act.

“Swiss Withholding Tax Act”
means the Swiss federal act on withholding tax, of October 13, 1965, as modified from time to time (“Bundesgesetz über
die Verrechnungssteuer vom 13. Oktober 1965”).

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“Swiss Withholding Tax Rules”
means, together, the Swiss Ten Non-Bank Rule and the Swiss Twenty Non-Bank Rule.

“TARGET” means the Trans-European
Automated Real Time Gross Settlement Express Transfer (TARGET) payment system.

“Target Operating Day”
means any day on which banks in London are open for general banking business and is not (a) a Saturday or Sunday, (b) Christmas
Day or New Year’s Day or (c) any other day on which the TARGET is not operating (as determined by the Administrative Agent).

“Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, charges, assessments, fees or withholdings imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.

“Termination Date” means
November 10, 2017.

“Total Debt” means,
at any time, without duplication, the sum of (a) all Indebtedness that is or should be reflected as a liability on a consolidated
balance sheet of the Company and the Subsidiaries in accordance with GAAP and (b) the consideration (other than any note of a Subsidiary
that serves as a conduit in a sale or financing transaction with respect to Receivables) received by the Company or any Consolidated
Subsidiary from any Person (other than the Company or a Subsidiary) for Receivables sold, which Receivables remain uncollected
at such time (other than delinquent Receivables sold for collection in the ordinary course of business and not as part of a financing
transaction); less (x) the sum of all cash and cash equivalents (as determined in accordance with GAAP) and (y) the fair market
value of any Marketable Securities of the Company and the Consolidated Subsidiaries, with such excluded items under clauses (x)
and (y) above not to exceed US$65,000,000 in the aggregate at any time; provided, however, that, with respect to
any Non-Wholly Owned Subsidiary, the Indebtedness (other than any Indebtedness that is Guaranteed by the Company or a Wholly-Owned
Subsidiary) and assets thereof referred to in the foregoing clauses shall be disregarded in the calculation of “Total Debt”
to the extent of any economic interest in such Non-Wholly Owned Subsidiary that is directly or indirectly owned by any Person other
than the Company or a Subsidiary.

“Tranche” means a category
of Commitments and extensions of credit thereunder. For purposes hereof, each of the following shall comprise a separate Tranche:
(a) the Global Tranche Commitments, the Global Tranche Revolving Loans and participations in Letters of Credit and Swingline
Loans attributable to the Global Tranche Commitments (the “Global Tranche”) and (b) the US Tranche Commitments,
the US Tranche Revolving Loans (the “US Tranche”).

“Tranche Percentage”
means a Global Tranche Percentage or a US Tranche Percentage.

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“Transactions” means
the execution, delivery and performance by each Loan Party of each Loan Document to which it is to be a party, the borrowing of
the Loans, the use of the proceeds thereof and the issuance and use of Letters of Credit.

“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, the LIBO Rate, the EURIBO Rate or the Alternate Base Rate.

“US Borrowing Subsidiary”
means any Borrowing Subsidiary that is a Domestic Subsidiary.

“US Dollar Equivalent”
means, on any date of determination, (a) with respect to any amount in US Dollars, such amount and (b) with respect to any
amount in any currency other than US Dollars, the equivalent in US Dollars of such amount, determined by the Administrative Agent
pursuant to Section 1.05 using the Exchange Rate with respect to such currency at the time in effect under the provisions of such
Section.

“US Dollars” or “US$”
means the lawful currency of the United States of America.

“U.S.
Person” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.

“US Tax Certificate”
has the meaning specified in Section 2.17(f)(ii).

“US Tranche” has the
meaning specified in the definition of “Tranche”.

“US Tranche Borrower”
means (a) the Company and (b) any Borrowing Subsidiary that has been designated as a US Tranche Borrower pursuant to Section 2.20.

“US Tranche Commitment”
means, with respect to each US Tranche Lender, the commitment of such US Tranche Lender to make US Tranche Revolving Loans pursuant
to Section 2.01(b), expressed as an amount representing such US Tranche Lender’s maximum US Tranche Revolving Credit Exposure
hereunder, as such commitment may be reduced or increased from time to time pursuant to Section 2.08 or assignments by or to such
US Tranche Lender pursuant to Section 10.04. The initial amount of each US Tranche Lender’s US Tranche Commitment is set
forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such US Tranche Lender shall have assumed
its US Tranche Commitment, as the case may be. The aggregate amount of US Tranche Commitments on the Restatement Effective Date
is US$0.

“US Tranche Lender”
means a Lender with a US Tranche Commitment or a US Tranche Revolving Credit Exposure.

“US Tranche Lending Office”
means, with respect to any US Tranche Lender, such office(s) as such Lender (or any Affiliate of such Lender) shall have

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specified from time to time as its “US Tranche Lending
Office(s)” by notice to the Company and the Administrative Agent.

“US Tranche Percentage”
means, with respect to any US Tranche Lender at any time, the percentage of the aggregate US Tranche Commitments represented by
such US Tranche Lender’s US Tranche Commitment at such time; provided that in the case of Section 2.21 when a Defaulting
Lender shall exist, “US Tranche Percentage” shall mean the percentage of the total US Tranche Commitments (disregarding
any Defaulting Lender’s US Tranche Commitment) represented by such Lender’s US Tranche Commitment. If the US Tranche
Commitments have expired or been terminated, the US Tranche Percentages shall be determined on the basis of the US Tranche Commitments
most recently in effect, giving effect to any assignments.

“US Tranche Revolving Credit Exposure”
means, with respect to any US Tranche Lender at any time, the aggregate amount of such US Tranche Lender’s outstanding US
Tranche Revolving Loans.

“US Tranche Revolving Loans”
means Loans made by the US Tranche Lenders pursuant to Section 2.01(b). Each US Tranche Revolving Loan shall be a LIBOR Loan or
an ABR Loan.

“Wholly Owned Subsidiary”
means a Subsidiary all the Capital Stock in which, other than directors’ qualifying shares and/or other nominal amounts of
Capital Stock that are required to be held by Persons under applicable law, are owned, directly or indirectly, by the Company or
a Subsidiary.

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such term
is defined in Part I of Subtitle E of Title IV of ERISA.

“Withholding Agent”
means the Borrower or the Administrative Agent.

“Write-Down and Conversion Powers”
means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from
time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described
in the EU Bail-In Legislation Schedule.

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 “Global
Tranche Revolving Loan”) or by Type (e.g., a “LIBOR Revolving Loan”) or by Class and Type (e.g.,
a “Global Tranche LIBOR Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g.,
a “Global Tranche Borrowing”) or by Type (e.g., a “LIBOR Borrowing”) or by Class and Type (e.g.,
a “Global Tranche LIBOR Borrowing”).

SECTION 1.03. Terms Generally. The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the

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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, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, (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 and (f) all references herein to the “date hereof” or the “date
of this Agreement” shall refer to the Restatement Effective Date. Unless otherwise indicated, any reference to a US Dollar
amount in Article VI or VII of this Agreement (or in any definition of a term used in either such Article) shall be deemed to be
a reference to that US Dollar amount or the equivalent thereof in one or more other currencies.

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 Company notifies the Administrative Agent that the Company
requests 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 Company 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) notwithstanding any other provision contained herein, all terms of an accounting or financial
nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, (A) without
giving effect to any election under Financial Accounting Standards Board Accounting Standards Codification 825 (or any other Accounting
Standards Codification having a similar result or effect) (and related interpretations) to value any Indebtedness at “fair
value”, as defined therein, (B) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments
under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard
having a similar result or effect) (and related interpretations) to value any such Indebtedness in a reduced or bifurcated manner
as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof, and (C) without
giving effect to any change in accounting for leases pursuant to GAAP resulting from the implementation of Financial Accounting

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Standards Board ASU No. 2016-02, Leases (Topic 842) or any
other proposals issued by the Financial Accounting Standards Board in connection therewith, in each case to the extent such adoption
would require treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or similar
arrangement) would not have been required to be so treated under GAAP prior to such implementation.

SECTION 1.05. Currency Translation.
The Administrative Agent shall determine the US Dollar Equivalent of any Borrowing denominated in a currency other than US Dollars
as of the date of the commencement of the initial Interest Period therefor and as of the date of the commencement of each subsequent
Interest Period therefor, in each case using the Exchange Rate for such currency in relation to US Dollars in effect on the date
that is three Business Days prior to the date on which the applicable Interest Period shall commence, and each such amount shall,
except as provided in the last two sentences of this Section, be the US Dollar Equivalent of such Borrowing until the next required
calculation thereof pursuant to this sentence. The Administrative Agent shall determine the US Dollar Equivalent of any Letter
of Credit denominated in a currency other than US Dollars as of the date such Letter of Credit is issued, amended to increase its
face amount, extended or renewed and as of the last Business Day of each subsequent calendar quarter, in each case using the Exchange
Rate for such currency in relation to US Dollars in effect on the date that is three Business Days prior to the date on which such
Letter of Credit is issued, amended to increase its face amount, extended or renewed and as of the last Business Day of such subsequent
calendar quarter, as the case may be, and each such amount shall, except as provided in the last two sentences of this Section,
be the US Dollar Equivalent of such Letter of Credit until the next required calculation thereof pursuant to this sentence. The
Administrative Agent shall notify the Company and the Lenders of each calculation of the US Dollar Equivalent of each Borrowing
or Letter of Credit. Notwithstanding the foregoing, for purposes of any determination under Article V, Article VI (other than Sections
6.08 and 6.09) or Section 7.01 or any determination under any other provision of this Agreement expressly requiring the use of
a current exchange rate, all amounts incurred, outstanding or proposed to be incurred or outstanding in currencies other than US
Dollars shall be translated into US Dollars at currency exchange rates in effect on the date of such determination. For purposes
of Section 6.08 and 6.09, amounts in currencies other than US Dollars shall be translated into US Dollars at the currency exchange
rates used in preparing the Company’s annual and quarterly financial statements.

ARTICLE II

The Credits

SECTION 2.01. Commitments. (a) Global
Tranche Commitments. Subject to the terms and conditions set forth herein, each Global Tranche Lender agrees to make Global
Tranche Revolving Loans denominated in US Dollars, Euros, Canadian Dollars or other Alternative Currencies to the Global Tranche
Borrowers from time to time during the Availability Period in principal amounts at any time outstanding that will not result in
(i) the Aggregate Global Tranche Revolving Credit Exposure exceeding the

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aggregate Global Tranche Commitments, (ii) the Global
Tranche Revolving Credit Exposure of any Lender exceeding its Global Tranche Commitment or (iii) the portion of the Aggregate Revolving
Credit Exposure attributable to Loans made to and Letters of Credit issued for the accounts of Borrowing Subsidiaries that are
Foreign Subsidiaries exceeding US$200,000,000. Within the foregoing limits and subject to the terms and conditions set forth herein,
the Global Tranche Borrowers may borrow, prepay and reborrow Global Tranche Revolving Loans.

(b)
US Tranche Commitments. Subject to the terms and conditions set forth herein, each US Tranche Lender agrees to make
US Tranche Revolving Loans denominated in US Dollars to the US Tranche Borrowers from time to time during the Availability Period
in principal amounts at any time outstanding that will not result in (i) the Aggregate US Tranche Revolving Credit Exposure exceeding
the aggregate US Tranche Commitments or (ii) the US Tranche Revolving Credit Exposure of any Lender exceeding its US Tranche Commitment.
Within the foregoing limits and subject to the terms and conditions set forth herein, the US Tranche Borrowers may borrow, prepay
and reborrow US Tranche Revolving Loans.

SECTION 2.02. Loans and Borrowings.
(a) Each Global Tranche Revolving Loan shall be made as part of a Global Tranche Borrowing consisting of Global Tranche Revolving
Loans of the same Type and currency made by the Global Tranche Lenders ratably in accordance with their respective Global Tranche
Commitments. Each US Tranche Revolving Loan shall be made as part of a US Tranche Borrowing consisting of US Tranche Revolving
Loans of the same Type made by the US Tranche Lenders ratably in accordance with their respective US Tranche Commitments. 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 2.13, (i) each Borrowing denominated in US Dollars shall be comprised entirely of (A) LIBOR Loans
or (B) at the request of the applicable Borrower as provided herein and solely in the case of any such Borrowing by the Company
or a US Borrowing Subsidiary, ABR Loans, (ii) each Borrowing denominated in Euros shall be comprised entirely of EURIBOR Loans,
(iii) each Borrowing denominated in Canadian Dollars shall be comprised entirely of CDOR Loans and (iv) each Borrowing denominated
in any Alternative Currency other than Euros or Canadian Dollars shall be comprised entirely of LIBOR Loans. Each Swingline Loan
shall be an ABR Loan. Each Lender at its option may make any 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 commencement of each Interest Period for any LIBOR Borrowing, EURIBOR Borrowing or CDOR Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of the Borrowing Multiple and not less than the Borrowing Minimum.
At the time that each ABR Borrowing (other than a Swingline

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Loan) is made, such Borrowing shall be in an aggregate amount
that is an integral multiple of US$1,000,000 and not less than US$5,000,000; provided that an ABR Borrowing under any Tranche
may be in an aggregate amount that is equal to the entire unused balance of the Commitments under such Tranche or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Each Swingline Loan shall be in an amount
that is an integral multiple of US$100,000 and not less than US$1,000,000. 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 12 LIBOR Borrowings, EURIBOR Borrowings
and CDOR Borrowings outstanding.

(d)
Notwithstanding any other provision of this Agreement, no Borrower shall 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.

SECTION 2.03. Requests for Borrowings.
To request a Borrowing (other than a Swingline Loan), the applicable Borrower shall notify the Administrative Agent of such request
(a) in the case of a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR Borrowing, not later than 11:00 a.m., Local Time,
three Business Days before the date of the proposed Borrowing, and (b) in the case of an ABR Borrowing, not later than 10:00
a.m., New York City time, on the date of the proposed Borrowing. Each such notice shall be given by telephone or telecopy. Each
Borrowing Request shall be irrevocable and shall be in the form of (or, in the case of a telephonic Borrowing Request, confirmed
promptly by hand delivery or telecopy of a written Borrowing Request in the form of) Exhibit B or any other form approved
by the Administrative Agent and signed by a Financial Officer of the applicable Borrower. Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

(i)
the Borrower requesting such Borrowing;

(ii)
the Tranche and Type of such Borrowing;

(iii)
the currency and the principal amount of such Borrowing;

(iv)
the date of such Borrowing, which shall be a Business Day;

(v)
in the case of a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR 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 the relevant Borrower’s account to which funds are to be disbursed, which shall comply
with the requirements of Section 2.06(a).

If no election as to the currency of the Borrowing is specified,
then the requested Borrowing shall be denominated in US Dollars. If no election as to the Type of Borrowing is specified, then
the requested Borrowing shall be an ABR Borrowing if

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denominated in US Dollars, a EURIBOR Borrowing if denominated
in Euros, a CDOR Borrowing if denominated in Canadian Dollars or a LIBOR Borrowing if denominated in an Alternative Currency other
than Euros or Canadian Dollars. If no Interest Period is specified with respect to any requested LIBOR Borrowing, EURIBOR Borrowing
or CDOR Borrowing, then the requesting Borrower shall be deemed to have selected an Interest Period of one month’s duration.
Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender
under the applicable Tranche 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. Swingline Loans. (a)
Subject to the terms and conditions set forth herein, from time to time during the Availability Period, the Company may request
that the Swingline Lender make, and the Swingline Lender may, in its discretion, agree to make, Swingline Loans to the Company
in US Dollars in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal
amount of the outstanding Swingline Loans exceeding US$25,000,000, (ii) the Aggregate Global Tranche Revolving Credit Exposure
exceeding the aggregate Global Tranche Commitments or (iii) the Global Tranche Revolving Credit Exposure of any Lender (including
the Swingline Lender) exceeding its Global Tranche Commitment; provided that the Swingline Lender shall not 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 Company and the US Borrowing Subsidiaries may borrow, prepay and reborrow Swingline Loans.

(b)
To request a Swingline Loan, the applicable Borrower shall notify the Administrative Agent of such request by telephone
(confirmed by telecopy signed by a Financial Officer on behalf of the applicable Borrower), not later than 12:00 noon, New
York City time, on the day of such 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 by it. If the Swingline Lender shall elect to make the requested Swingline Loan,
it shall make such Swingline Loan available to the applicable Borrower by means of a credit to the general deposit account of the
Company with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement
as provided in Section 2.05(e), by remittance to the applicable 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 each Global Tranche Lender to acquire participations on such Business Day in all or a portion of the
Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which the Global Tranche Lenders
will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Global Tranche
Lender, specifying in such notice such Lender’s Global Tranche Percentage of such Swingline Loan or Loans. Each Global Tranche
Lender hereby unconditionally and irrevocably agrees, upon receipt of such notice from

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the Administrative Agent as provided above (and in any event,
if such notice is received (i) by 11:00 a.m., New York City time, on a Business Day, then no later than 4:00 p.m., New York City
time, on such Business Day, and (ii) after 11:00 a.m., New York City time, on a Business Day, then no later than 9:00 a.m., New
York City time, on the immediately succeeding Business Day), to pay to the Administrative Agent, for the account of the Swingline
Lender, such Lender’s Global Tranche Percentage of such Swingline Loan or Loans. Each Global Tranche Lender acknowledges
and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Global Tranche Lender shall comply with its obligations under this paragraph by wire transfer of immediately available
funds, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 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 Global Tranche Lenders. The Administrative Agent shall notify the Company
of any participations in any Swingline Loan acquired pursuant to this paragraph, 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
or on behalf of the applicable 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 Global Tranche Lenders that shall have made their payments
pursuant to this paragraph 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 a Loan Party for any reason. The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve any Borrower of any default in the payment thereof.

SECTION 2.05. Letters of Credit.
(a) General. Subject to the terms and conditions set forth herein, the Company, on behalf of itself or any other Borrower,
may request the issuance, amendment, renewal or extension of Letters of Credit for its own account, the account of the applicable
Borrower or the account of any other Subsidiary (provided that the Company shall be a co-applicant and co-obligor
with respect to each Letter of Credit issued for the account of any Subsidiary that is not a Borrower), in a form reasonably acceptable
to the Administrative Agent and the applicable Issuing Bank, at any time and from time to time not fewer than five Business Days
before the end of 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 a Borrower to, or entered
into by a Borrower with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.
Existing Letters of Credit will, for all purposes of this Agreement (including paragraphs (d) and (e) of this Section), be deemed
to have been issued hereunder on the Restatement Effective Date and will, for all purposes of this Agreement,

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constitute Letters of Credit. Notwithstanding anything herein
to the contrary, no Issuing Bank shall be required to issue any Letter of Credit the proceeds of which would be made available
to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the
time of such funding, is the subject of any Sanctions except to the extent permissible for a Person required to comply with Sanctions
or (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement.

(b)
Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit), the applicable Borrower shall hand deliver or telecopy
(or transmit by electronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the
applicable Issuing Bank and the Administrative Agent (by no later than 1:00 p.m. (New York City time) at least four Business Days
prior to the requested date of issuance, amendment, renewal or extension, or such other period as may be agreed upon by the applicable
Borrower, the Administrative Agent and the applicable Issuing Bank) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the amount of such Letter of Credit, the currency in which such Letter of Credit is to be denominated (which
shall be US Dollars, Euros, Canadian Dollars or another currency approved by the applicable Issuing Bank that satisfies the requirements
of clauses (a), (b) and (c) of the definition of “Alternative Currency”), the name and address of the beneficiary thereof
and such other information as shall be necessary to enable the applicable Issuing Bank to prepare, amend, renew or extend such
Letter of Credit. If requested by such Issuing Bank, the applicable Borrower also shall submit a letter of credit application on
such 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 applicable
Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension
(i) the LC Exposure shall not exceed US$50,000,000, and the portion of the LC Exposure attributable to Letters of Credit issued
by any Issuing Bank shall not exceed the LC Commitment of such Issuing Bank, (ii) the Aggregate Global Tranche Credit Revolving
Exposures shall not exceed the aggregate Global Tranche Commitments, (iii) no Global Tranche Lender will have a Global Tranche
Revolving Credit Exposure greater than its Global Tranche Commitment and (iv) the portion of the Aggregate Revolving Credit Exposure
attributable to Loans made to and Letters of Credit issued for the accounts of Borrowing Subsidiaries that are Foreign Subsidiaries
shall not exceed US$200,000,000; the Issuing Bank shall not be under any obligation to issue any Letter of Credit if: (i) 
any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the
Issuing Bank from issuing the Letter of Credit, or any Law applicable to the Issuing Bank or any request or directive (whether
or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request
that the Issuing Bank refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall
impose upon the Issuing Bank

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with respect to the Letter of Credit any restriction, reserve
or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Restatement Effective
Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Restatement
Effective Date and which the Issuing Bank in good faith deems material to it; (ii) the issuance of the Letter of Credit would
violate one or more policies of the Issuing Bank applicable to letters of credit generally;

(c)
Expiration Date. Each Letter of Credit will expire at or prior to the close of business on the earlier of (i) the
date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one
year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date.

(d)
Participations. 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 applicable Issuing Bank or the Global Tranche Lenders, such Issuing
Bank hereby grants to each Global Tranche Lender, and each Global Tranche Lender hereby acquires from such Issuing Bank, a participation
in such Letter of Credit equal to such Lender’s Global Tranche Percentage of the aggregate amount available to be drawn under
such Letter of Credit. In consideration and in furtherance of the foregoing, each Global Tranche Lender hereby absolutely and unconditionally
agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Global Tranche Percentage
of each LC Disbursement made by such Issuing Bank and not reimbursed by the applicable Borrower on the date due as provided in
paragraph (e) of this Section, or of any reimbursement payment in respect of an LC Disbursement required to be refunded to
a Borrower for any reason. Any payment by the Global Tranche Lenders shall be made (i) if the currency of the applicable LC Disbursement
or reimbursement payment shall be US Dollars, Euros, Canadian Dollars or another Alternative Currency, then in the currency of
such LC Disbursement or reimbursement payment and (ii) if the currency of the applicable LC Disbursement or reimbursement payment
shall be a currency other than US Dollars, Euros, Canadian Dollars or another Alternative Currency, in an amount of US Dollars,
calculated by the Administrative Agent based on current exchange rates on the applicable LC Participation Calculation Date, sufficient
to enable the Administrative Agent to purchase an amount of such currency equal to the amount of such LC Disbursement. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit
is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension
of any Letter of Credit, the occurrence and continuance of a Default, any reduction or termination of the Commitments or any fluctuation
in currency values or any force majeure or other event that under any rule of law or uniform practices to which any Letter
of Credit is subject (including Section 3.14 of ISP 98 or any successor publication of the International Chamber of Commerce) permits
a drawing to be made under such Letter of Credit after the expiration thereof or of the Global Tranche Commitments, and that each
such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

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(e)
Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the applicable
Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount in the currency of such LC Disbursement
equal to such LC Disbursement not later than 12:00 noon, Local Time, on the date that such LC Disbursement is made, if such Borrower
shall have received notice of such LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if such notice has not
been received by such Borrower prior to such time on such date, then not later than 12:00 noon, Local Time, on (i) the
Business Day that such Borrower receives such notice, if such notice is received prior to 10:00 a.m., Local Time, on the day
of receipt, or (ii) the Business Day immediately following the day that such Borrower receives such notice, if such notice
is not received prior to such time on the day of receipt; provided that if such LC Disbursement is denominated in US Dollars
and is not less than US$1,000,000, the applicable Borrower may, subject to the conditions to borrowing set forth herein, request
in accordance with Section 2.03 or 2.04 that such payment be financed with an ABR Borrowing or a Swingline Loan in an equivalent
amount and, to the extent so financed, such Borrower’s obligation to make such payment shall be discharged and replaced by
the resulting ABR Borrowing or Swingline Loan. If the applicable Borrower fails to make any such reimbursement payment when due,
(A) if such payment relates to a Letter of Credit denominated in a currency other than US Dollars, Euros, Canadian Dollars
or another Alternative Currency, automatically and with no further action required, the obligation of such Borrower to reimburse
the applicable LC Disbursement shall be permanently converted into an obligation to reimburse the US Dollar Equivalent, calculated
using the LC Exchange Rate on the applicable LC Participation Calculation Date, of such LC Disbursement and (B) in the case
of each LC Disbursement, the Administrative Agent shall notify each Global Tranche Lender of the applicable LC Disbursement, the
amount and currency of the payment then due from such Borrower in respect thereof and such Lender’s Global Tranche Percentage
thereof. Promptly following receipt of such notice, each Global Tranche Lender shall pay to the Administrative Agent on the date
such notice is received, in the applicable currency, its Global Tranche Percentage of the applicable LC Disbursement payment then
due from such Borrower, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06
shall apply, mutatis mutandis, to the payment obligations of the Lenders pursuant to this paragraph), and the Administrative
Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt
by the Administrative Agent of any payment from a Borrower pursuant to this paragraph, the Administrative Agent shall distribute
such payment to the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse
such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a Lender pursuant
to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline
Loan as contemplated above) shall not constitute a Loan and shall not relieve the applicable Borrower of its obligation to reimburse
such LC Disbursement.

(f)
Obligations Absolute. Each Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e)
of this Section is absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this

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Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of Credit, this Agreement or any other Loan Document,
or any term or provision herein or therein, (ii) any draft or other document presented under a Letter of Credit proving to
be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment
by any 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, (iv) any force majeure or other event that under any rule of law or uniform practices to which
any Letter of Credit is subject (including Section 3.14 of ISP 98 or any successor publication of the International Chamber of
Commerce) permits a drawing to be made under such Letter of Credit after the stated expiration date thereof or of the Global Tranche
Commitments or (v) 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, such Borrower’s
obligations hereunder. None of the Administrative Agent, the Lenders, the Issuing Banks or 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 any Issuing Bank; provided that the foregoing
shall not be construed to excuse any Issuing Bank from liability to a Borrower to the extent of any direct damages (as opposed
to consequential damages, claims in respect of which are hereby waived by each Borrower to the fullest extent permitted by applicable
law) suffered by such Borrower that are caused by (i) such 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 or (ii) such Issuing Bank’s
breach of its obligation to issue a Letter of Credit pursuant to this Section. The parties hereto expressly agree that, in the
absence of gross negligence or wilful misconduct on the part of an Issuing Bank (as finally determined by a court of competent
jurisdiction), such 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 agree that, with respect to documents presented that appear on their face
to be in substantial compliance with the terms of a Letter of Credit, the applicable 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)
Disbursement Procedures. The applicable Issuing Bank shall, promptly following its receipt thereof, examine all documents
purporting to represent a demand for payment under a Letter of Credit. The applicable Issuing Bank shall promptly notify the Administrative
Agent and the applicable Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Issuing Bank
has made or will make an LC Disbursement thereunder; provided that any failure to give or

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delay in giving such notice shall not relieve the applicable
Borrower of its obligation to reimburse such Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

(h)
Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the applicable 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 applicable Borrower reimburses
such LC Disbursement, (i) in the case of any LC Disbursement denominated in US Dollars, and at all times following the conversion
to US Dollars of an LC Disbursement made in another currency pursuant to paragraph (e) of this Section, at the rate per annum then
applicable to ABR Revolving Loans; provided that, if the Company fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 2.12(e) shall apply and (ii) if such LC Disbursement is made in a currency
other than US Dollars, at all times prior to any conversion to US Dollars pursuant to paragraph (e) of this Section, at a rate
equal to the rate reasonably determined by the applicable Issuing Bank to be the cost to such Issuing Bank of funding such LC Disbursement
plus the Applicable Rate applicable to LIBOR Revolving Loans at such time; provided that, if the applicable Borrower fails
to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.12(e) shall apply.
Interest accrued pursuant to this paragraph shall be paid to the Administrative Agent, for the account of the applicable Issuing
Bank (except that interest accrued on and after the date of payment by any Global Tranche Lender pursuant to paragraph (e)
of this Section to reimburse such Issuing Bank shall be paid to the Administrative Agent for the account of such Lender pro rata
to the extent of such payment), and shall be payable on demand or, if no demand has been made, on the date on which the applicable
Borrower reimburses the applicable LC Disbursement in full.

(i)
Replacement of an Issuing Bank. An Issuing Bank may be replaced at any time by written agreement among the Company,
the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders
of any such replacement of an Issuing Bank. At the time any such replacement shall become effective, the Borrowers shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.11(c). From and after the effective
date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an 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 the rights and obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit issued by it prior to such replacement (including the right to receive fees under Section 2.11(c)), but
shall not be required to issue additional Letters of Credit.

(j)
Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Company
receives notice from the

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Administrative Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Lenders with LC Exposures representing more than 50% of the total LC Exposure) demanding
the deposit of cash collateral pursuant to this paragraph, each Borrower shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Lenders and the Issuing Banks, an amount in cash equal to the
portion of the LC Exposure attributable to Letters of Credit issued for the account of such Borrower as of such date plus any accrued
and unpaid interest thereon; provided that (i) amounts payable in respect of any Letter of Credit or LC Disbursement shall
be payable in the currency of such Letter of Credit or LC Disbursement, except that LC Disbursements in a currency in respect of
which the applicable Borrower’s reimbursement obligations have been converted to obligations in US Dollars as provided in
paragraph (e) of this Section and interest accrued thereon shall be payable in US Dollars and (ii) 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 Section 7.01(h)
or 7.01(i). The Borrowers shall also deposit cash collateral in accordance with this paragraph as and to the extent required by
Section 2.21. Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the
Obligations, and the applicable Borrower hereby creates in favor of the Administrative Agent a security interest in each such deposit
to secure such Obligations. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made
at the option and sole discretion of the Administrative Agent and at the applicable Borrower’s 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 Banks for LC Disbursements for which they have not been reimbursed
and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the applicable Borrower
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 more than 50% of the total LC Exposure), be applied to satisfy other obligations of the Borrowers under
this Agreement. If a 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 such Borrower within three Business
Days after all Events of Default have been cured or waived.

(k)
Designation of Additional Issuing Banks. From time to time, the Company may by notice to the Administrative Agent
and the Lenders designate as additional Issuing Banks one or more Lenders that agree to serve in such capacity as provided below.
The acceptance by a Lender of any appointment as an Issuing Bank hereunder shall be evidenced by an Issuing Bank Agreement, which
shall set forth the LC Commitment of such Lender and be executed by such Lender, the Company and the Administrative Agent and,
from and after the effective date of such agreement, (i) such Lender shall have all the rights and obligations of an Issuing Bank
under this Agreement and the other Loan Documents and (ii) references herein and in the other Loan Documents to the term “Issuing
Bank” shall be deemed to include such Lender in its

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capacity as an Issuing Bank. The Issuing Bank Agreement of
any Issuing Bank may limit the currencies in which and the Borrowers for the accounts of which such Issuing Bank will issue Letters
of Credit, and any such limitations will, as to such Issuing Bank, be deemed to be incorporated in this Agreement.

(l)
Issuing Bank Reports. Unless otherwise agreed by the Administrative Agent, each Issuing Bank shall report in writing
to the Administrative Agent (i) on or prior to each Business Day on which such Issuing Bank issues, amends, renews or extends any
Letter of Credit, the date of such issuance, amendment, renewal or extension, and the currency and aggregate face amount of the
Letters of Credit issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal
or extension (and whether the amount thereof shall have changed), it being understood that such Issuing Bank shall not effect any
issuance, renewal, extension or amendment resulting in an increase in the amount of any Letter of Credit without first obtaining
written confirmation from the Administrative Agent that such increase is then permitted under this Agreement, (ii) on each Business
Day on which such Issuing Bank makes any LC Disbursement, the date, currency and amount of such LC Disbursement, (iii) on any Business
Day on which a Borrower fails to reimburse an LC Disbursement required to be reimbursed to such Issuing Bank on such day, the date
of such failure and the currency and amount of such LC Disbursement and (iv) on any other Business Day, such other information
as the Administrative Agent shall reasonably request as to the Letters of Credit issued by such Issuing Bank.

SECTION 2.06. 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 in the applicable currency by 1:00 p.m., Local Time, to the account of the Administrative Agent (or one of its Affiliates)
most recently designated by the Administrative Agent for such purpose by notice to the applicable Lenders; provided that
Swingline Loans shall be made as provided in Section 2.04. The Administrative Agent will make such Loan proceeds available
to the applicable Borrower by promptly crediting the amounts so received, in like funds, to the Applicable Funding Account of such
Borrower; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section
2.05(e) shall be remitted by the Administrative Agent to the applicable Issuing Bank. If a Borrowing shall not occur on such date
because any condition precedent herein specified shall not have been met, the Administrative Agent shall return the amounts so
received to the respective Lenders.

(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 paragraph (a) of this Section and
may, in reliance upon such assumption, make available to the applicable Borrower on such date a corresponding amount in the required
currency. 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 such Borrower severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and

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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 rate reasonably
determined by the Administrative Agent to be the cost to it of funding such amount or (ii) in the case of such Borrower, the
interest rate applicable to the subject Loan.

SECTION 2.07. Interest Elections.
(a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a LIBOR Borrowing,
a EURIBOR Borrowing or a CDOR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter,
the applicable Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case
of a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR Borrowing, may elect Interest Periods therefor, all as provided in this Section
and on terms consistent with the other provisions of this Agreement. The applicable Borrower may elect different options with respect
to different portions of the applicable 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 Loans, which may not be converted or continued.

(b)
To make an election pursuant to this Section, a Borrower shall notify the Administrative Agent of such election by the time
and date 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 notice shall be given by telephone or
telecopy. Each Interest Election Request shall be irrevocable and shall be in a form (or, in the case of a telephonic Interest
Election Request, confirmed promptly by hand delivery or telecopy of a written Interest Election Request in a form) approved by
the Administrative Agent and signed by a Financial Officer of the applicable Borrower. Notwithstanding any other provision of this
Section, a Borrower shall not be permitted to (i) change the currency of any Borrowing, (ii) to elect an Interest Period for LIBOR
Loans, EURIBOR Loans or CDOR Loans that does not comply with Section 2.02(d) or (iii) to convert any Borrowing into a Type not
available for Borrowings in the applicable currency.

(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)
the Type of the resulting Borrowing; and

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(iv)
if the resulting Borrowing is to be a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR 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 by any such Interest Election Request a Borrower requests
a LIBOR, a EURIBOR or a CDOR Borrowing but does not specify an Interest Period, then such 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 affected Lender of
the details thereof and of such Lender’s portion of each resulting Borrowing.

(e)
If the applicable Borrower fails to deliver a timely Interest Election Request with respect to a LIBOR Borrowing, a EURIBOR
Borrowing or a CDOR 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, (i) in the case of a LIBOR Borrowing made to the Company or a US Borrowing
Subsidiary and denominated in US Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in the case of any other
Borrowing, such Borrowing shall become due and payable on the last day of such Interest Period.

(f)
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 Company, then, so long as an Event of Default is continuing (i)
no outstanding Borrowing denominated in US Dollars to the Company or a Domestic Subsidiary may be converted to or continued as
a LIBOR Borrowing, (ii) unless repaid, each LIBOR Borrowing denominated in US Dollars of the Company or a Domestic Subsidiary shall
be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. The foregoing is without prejudice to the
other rights and remedies available hereunder upon an Event of Default.

SECTION 2.08. Termination, Reduction
and Increase of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date.

(b)
The Company may at any time, without premium or penalty, terminate, or from time to time reduce, the Commitments of any
Tranche; provided that (i) each such reduction of the Commitments of any Tranche shall be in an amount that is not
less than the Borrowing Minimum and an integral multiple of the Borrowing Multiple, in each case for Borrowings denominated in
US Dollars and (ii) the Company shall not terminate or reduce the Commitments of any Tranche if after giving effect to such
termination or reduction and to any concurrent payment or prepayment of Loans or LC Disbursements in accordance with Section 2.10,
(A) the Aggregate Revolving Credit Exposure under either the US Tranche or the Global Tranche would exceed the aggregate amount
of Commitments of such Tranche, (B) the Revolving Credit Exposure under either the US Tranche or the Global Tranche of any Lender
would exceed its

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Commitments of such Tranche or (C) the Aggregate Revolving
Credit Exposure would exceed the aggregate Commitments.

(c)
The Company shall notify the Administrative Agent of any election to terminate or reduce the Commitments under any Tranche
under paragraph (b) of this Section at least three 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 such notice, the Administrative Agent
shall advise the applicable Lenders of the contents thereof. Each notice delivered by the Company pursuant to this Section shall
be irrevocable; provided that a notice of termination of the Commitments under any Tranche may state that such notice is
conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked or extended by the Company
(by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied or the effectiveness
of such other credit facilities is delayed. Any termination or reduction of the Commitments under any Tranche shall be permanent.
Each reduction of the Commitments under any Tranche shall be made ratably among the applicable Lenders in accordance with their
Commitments under such Tranche.

(d)
(i) The Company may at any time and from time to time, by written notice to the Administrative Agent (which shall deliver
a copy thereof to the applicable Lenders) executed by the Company and one or more financial institutions (any such financial institution
referred to in this Section being called an “Increasing Lender”), which may include any Lender, cause Global
Tranche Commitments or US Tranche Commitments to be extended by the Increasing Lenders (or cause the Global Tranche Commitments
or US Tranche Commitments of the Increasing Lenders to be increased, as the case may be) in an amount for each Increasing Lender
(which shall not be less than US$5,000,000) set forth in such notice; provided, that (A) the new Commitments and increases
in existing Commitments pursuant to this paragraph, in each case, after the Restatement Effective Date, shall not be greater than
US$100,000,000 in the aggregate and shall not be less than US$10,000,000 (or any portion of such US$100,000,000 aggregate amount
remaining unused) for any such increase, (B) each Increasing Lender, if not already a Lender hereunder, shall be subject to
the approval of the Administrative Agent (which approval shall not be unreasonably withheld) and (iii) each Increasing Lender,
if not already a Lender hereunder, shall become a party to this Agreement by completing and delivering to the Administrative Agent
a duly executed accession agreement in a form satisfactory to the Administrative Agent and the Borrower (an “Accession
Agreement”). New Commitments and increases in Commitments shall become effective on the date specified in the applicable
notices delivered pursuant to this paragraph. Upon the effectiveness of any Accession Agreement to which any Increasing Lender
is a party, (x) such Increasing Lender shall thereafter be deemed to be a party to this Agreement and shall be entitled to all
rights, benefits and privileges accorded a Lender hereunder and subject to all obligations of a Lender hereunder and (y) Schedule
2.01 shall be deemed to have been amended to reflect the Commitment or Commitments of such Increasing Lender as provided in
such Accession Agreement.

(ii) On the effective date (the “Increase
Effective Date”) of any increase in the Commitments of any Tranche pursuant to paragraph (d)(i) above (a “Commitment

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Increase”), (A) the aggregate principal
amount of the Borrowings of such Tranche outstanding (the “Initial Borrowings”) immediately prior to the Commitment
Increase on the Increase Effective Date shall be deemed to be paid; (B) each Increasing Lender that shall have had a Commitment
under such Tranche prior to the Commitment Increase shall pay to the Administrative Agent in same day funds (in the applicable
currencies), an amount equal to the difference between (x) the product of (1) such Lender’s applicable Tranche
Percentage (calculated after giving effect to the Commitment Increase) multiplied by (2) the amount of each Subsequent Borrowing
(as hereinafter defined) and (y) the product of (1) such Lender’s applicable Tranche Percentage (calculated without
giving effect to the Commitment Increase) multiplied by (2) the amount of each Initial Borrowing; (C) each Increasing
Lender that shall not have had a Commitment under such Tranche prior to the Commitment Increase shall pay to the Administrative
Agent in same day funds (in the applicable currencies) an amount equal to the product of (1) such Increasing Lender’s
applicable Tranche Percentage (calculated after giving effect to the Commitment Increase) multiplied by (2) the amount of
each Subsequent Borrowing; (D) after the Administrative Agent receives the funds specified in clauses (B) and (C) above,
the Administrative Agent shall pay to each Lender (in the applicable currencies) the portion of such funds that is equal to the
difference between (x) the product of (1) such Lender’s applicable Tranche Percentage (calculated without giving
effect to the Commitment Increase) multiplied by (2) the amount of each Initial Borrowing, and (y) the product of (1) such
Lender’s applicable Tranche Percentage (calculated after giving effect to the Commitment Increase) multiplied by (2) the
amount of each Subsequent Borrowing; (E) after the effectiveness of the Commitment Increase, the applicable Borrower shall
be deemed to have made new Borrowings (the “Subsequent Borrowings”) in amounts (in the currencies of the Initial
Borrowings) equal to the amounts of the Initial Borrowings and of the Types and for the Interest Periods specified in a Borrowing
Request delivered to the Administrative Agent in accordance with Section 2.03; (F) each Lender shall be deemed to hold
its applicable Tranche Percentage of each Subsequent Borrowing (each calculated after giving effect to the Commitment Increase);
and (G) the Borrower shall pay each Lender any and all accrued but unpaid interest on its Loans comprising the Initial Borrowings.
The deemed payments made pursuant to clause (i) above shall be subject to compensation by the applicable Borrower pursuant to
the provisions of Section 2.16 if the Increase Effective Date occurs other than on the last day of the Interest Period relating
thereto.

(iii) Notwithstanding the foregoing, no
increase in the Commitments (or in the Commitment of any Lender) or additions of a new Lender shall become effective under this
paragraph (d) unless (A) on the effective date of such increase, the conditions set forth in Section 4.02(a) and (b) shall be satisfied
(with all references in such paragraphs to a Borrowing being deemed to be references to such increase or addition) and (B) the
Administrative Agent shall have received a certificate to that effect dated such date and executed by the President, Vice President
or a Financial Officer of the Company (with sufficient copies for each of the Lenders) together with documents consistent with
those delivered on the Restatement Effective Date under Section 4.01(b), (c) and (f), giving effect to such increase or addition.

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SECTION 2.09. Repayment of Loans; Evidence
of Debt. (a) Each Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the accounts of
the applicable Lenders the then unpaid principal amount of each Revolving Loan of such Borrower on the Maturity Date and (ii) to
the Swingline Lender the then unpaid principal amount of each Swingline Loan made to such Borrower on the earlier of the Maturity
Date and the first date after such Swingline Loan is made that is the 15th day or the last day of a calendar month and that is
at least two Business Days after the day on which such Swingline Loan is made; provided that on each date on which a Borrowing
denominated in US Dollars (including any ABR Borrowing) is made to a Borrower that shall have borrowed Swingline Loans, such Borrower
shall repay all Swingline Loans then outstanding to it.

(b)
Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of each
Borrower 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 of each such Loan and, in the case of any LIBOR, EURIBOR or CDOR Loan, the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders or
any of them and each Lender’s share thereof. The information contained in such accounts will be made available to the Company
at reasonable times and upon reasonable request.

(d)
The entries made in the accounts maintained pursuant to paragraph (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 any
Borrower to repay the Loans in accordance with the terms of this Agreement.

(e)
Any Lender may request that Loans of any Class made by it to any Borrower be evidenced by a promissory note. In such event,
the applicable Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form approved by the Company and the Administrative Agent.
Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 10.04) be represented by one or more promissory notes in such form payable to the payee named therein (or to such payee
and its registered assigns).

SECTION 2.10. Prepayment of Loans.
(a) Each Borrower shall have the right at any time and from time to time to prepay any Borrowing of such Borrower in

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whole or in part, subject to Section 2.16 (but otherwise
without premium or penalty) and the requirements of this Section.

(b)
If the Aggregate Revolving Credit Exposure under any Tranche shall exceed the aggregate Commitments under such Tranche,
then (i) on the last day of any Interest Period for any LIBOR Borrowing, EURIBOR Borrowing or CDOR Borrowing under such Tranche
and (ii) on each other date on which any ABR Borrowing or Swingline Loan shall be outstanding under such Tranche, the applicable
Borrowers shall prepay Loans under such Tranche in an aggregate amount equal to the lesser of (i) the amount necessary to
eliminate such excess and (ii) the amount of such Borrowing. If the Aggregate Revolving Credit Exposure under any Tranche on the
last day of any month shall exceed 105% of the aggregate Commitments under such Tranche, then the applicable Borrowers shall, within
three Business Days of such last day, prepay one or more Borrowings under such Tranche in an aggregate principal amount sufficient
to eliminate such excess.

(c)
On the date of any Prepayment Event, the Company shall pay or prepay (or shall cause a Borrowing Subsidiary to pay or prepay)
Borrowings in an amount equal to the lesser of (i) 75% of the Net Proceeds of such Event and (ii) the excess of (A) the Aggregate
Revolving Credit Exposure immediately following such Event over (B) the aggregate Commitments after giving effect to the reduction
of the Commitments required pursuant to Section 6.03(i) or 6.06(c) in respect of such Event.

(d)
On the date of any termination or reduction of the Commitments of either Tranche pursuant to Section 2.08, the Company shall
pay or prepay (or shall cause a Borrowing Subsidiary to pay or prepay) so much of the Borrowings under such Tranche as shall be
necessary in order that the Aggregate Revolving Credit Exposure under such Tranche shall not exceed the aggregate Commitments under
such Tranche after giving effect to such termination or reduction.

(e)
Prior to any optional or mandatory prepayment of Borrowings hereunder, the applicable Borrower shall select the Borrowing
or Borrowings to be prepaid and shall specify such selection in the notice of such prepayment pursuant to paragraph (f) of
this Section.

(f)
The applicable Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline
Lender) of any prepayment of a Borrowing hereunder (i) in the case of a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR Borrowing,
not later than 11:00 a.m., Local Time, three Business Days before the date of such prepayment, (ii) in the case of an
ABR Borrowing (other than a Swingline Loan), not later than 11:00 a.m., New York City time, one Business Day before the date of
such prepayment and (iii) 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 given by telephone or telecopy. Each such telephonic notice shall be confirmed promptly
by hand delivery or telecopy of a written notice. 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

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is given in connection with a conditional notice of termination
of the Commitments as contemplated by Section 2.08, then such notice of prepayment may be revoked if such notice of termination
is revoked in accordance with Section 2.08. Promptly following receipt of any such notice relating to a Borrowing, the Administrative
Agent shall advise the applicable Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount
that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment
of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued
interest to the extent required by Section 2.12.

SECTION 2.11. Fees. (a) The Borrowers
agree to pay to the Administrative Agent, in US Dollars, for the account of each Lender, a commitment fee (a “Commitment
Fee”), which shall accrue at the Applicable Rate on the daily unused amount of each Commitment of such Lender, in each
case during the period from and including the Restatement Effective Date to but excluding the date on which such Commitment terminates.
Accrued Commitment Fees shall be payable in arrears on the last day of March, June, September and December of each year, commencing
on the first such date to occur after the Restatement Effective Date, and, with respect to the Commitments of any Tranche, on the
date on which the Commitments of such Tranche shall terminate. 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). For purposes
of computing Commitment Fees, a Global Tranche Commitment of a Lender shall be deemed to be used to the extent of the outstanding
Global Tranche Revolving Loans and LC Exposure of such Lender (and the Swingline Exposure of such Lender shall be disregarded for
such purpose).

(b)
The Company agrees to pay (or cause the applicable Borrowing Subsidiary to pay) (i) to the Administrative Agent for
the account of each Global Tranche Lender a participation fee (an “LC Participation Fee”) with respect to its
participations in Letters of Credit, which shall accrue at the Applicable Rate used in determining the interest rate applicable
to LIBOR Revolving Loans on the daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Restatement Effective Date to but excluding the later of
the date on which such Lender’s Global Tranche Commitment terminates and the date on which such Lender ceases to have any
LC Exposure, and (ii) to each Issuing Bank, a fronting fee (an “LC Fronting Fee”), which shall accrue at
the rate of 0.125% per annum on the average daily undrawn amount of the outstanding Letters of Credit issued by such Issuing Bank
during the period from and including the Restatement Effective Date to but excluding the later of the date of termination of the
Global Tranche Commitments and the date on which the last of such Letters of Credit expires, terminates or is drawn in full, as
well as such Issuing Bank’s standard fees (“Issuing Bank Fees”) with respect to the issuance, amendment,
renewal or extension of any Letter of Credit or processing of drawings thereunder. LC Participation Fees and LC Fronting Fees accrued
through and including the last day of March, June, September and December of each year shall be payable on the third Business Day
following such last day, commencing on the first such date to occur after the Restatement Effective Date;

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provided that all such Fees not so paid shall be payable
on the date on which the Global Tranche Commitments terminate and any such Fees accruing after the date on which the Global Tranche
Commitments terminate shall be payable on demand. Any other fees payable to any Issuing Bank pursuant to this paragraph shall be
payable within 10 days after demand. All LC Participation Fees and LC 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 in writing between the Company and the Administrative Agent.

(d)
The Borrowers agree to pay, through the Administrative Agent, upfront fees in the amounts heretofore communicated to the
Lenders by the Company and the Administrative Agent.

(e)
All fees payable hereunder shall be paid on the dates on which due, in immediately available funds, to the Administrative
Agent or to any Issuing Bank (in the case of fees payable to it) for distribution, in the case of Commitment Fees, LC Participation
Fees and upfront fees, to the Revolving Lenders entitled thereto. Fees paid shall not be refundable under any circumstances. The
parties hereto agree that each fee payable under paragraph (a), (c) or (d) of this Section shall be payable (i) 91% by the Company,
(ii) 6% by AIH, (iii) 2% by AIE, and (iv) 1% by AIC, it being agreed that such allocation shall not reduce the rights of the Administrative
Agent or the Lenders under Article IX in respect of amounts payable by such Borrowing Subsidiaries.

SECTION 2.12. Interest. (a) The
Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate plus
the Applicable Rate.

(b)
The Loans comprising each LIBOR Borrowing shall bear interest at (i) in the case of a LIBOR Borrowing denominated in US
Dollars, the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate and (ii) in
the case of a LIBOR Borrowing denominated in an Alternative Currency, the LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

(c)
The Loans comprising each EURIBOR Borrowing shall bear interest at the EURIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate.

(d)
The Loans comprising each CDOR Borrowing shall bear interest at the CDO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

(e)
Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by any Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest,
to the fullest extent permitted by applicable law, after as well as before

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judgment, at a rate per annum equal to (i) in the case
of overdue principal of any Loan, 2% per annum plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% per annum plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

(f)
Accrued interest on each Loan under any Tranche shall be payable in arrears on each Interest Payment Date for such Loan
and upon the termination of the Commitments of such Tranche; provided that (i) interest accrued pursuant to paragraph (e)
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 LIBOR, EURIBOR
or CDOR Revolving 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. All interest shall be payable in the currency in which the applicable Loan is denominated.

(g)
All interest hereunder shall be computed on the basis of a year of 360 days, except that (i) 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 (ii) interest on CDOR Borrowings shall be computed on the
basis of a year of 365 days (or 366 days in a leap year). Interest on all Borrowings and other amounts accruing interest 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, LIBO Rate, EURIBO Rate or CDO Rate shall be determined by the Administrative Agent, and such determination
shall be conclusive absent manifest error. For purposes of the Interest Act (Canada), whenever any interest is computed using a
rate based on a year of 360 days, such rate determined pursuant to such computation, when expressed as an annual rate, is equivalent
to (a) the applicable rate based on a year of 360 days multiplied by (b) the actual number of days in the calendar year in which
the period for which such interest is payable (or compounded) ends; and divided by (c) 360.

(h)
The rates of interest provided for in this Agreement, insofar as they relate to Global Tranche Revolving Loans made to or
LC Disbursements under Letters of Credit issued for the account of Swiss Borrowing Subsidiaries, are minimum interest rates. When
entering into this Agreement, the parties have assumed that the interest payable by Swiss Borrowing Subsidiaries at the rates set
out in this Section or in other Sections of this Agreement is not and will not become subject to the Swiss Withholding Tax. Notwithstanding
that the parties hereto do not anticipate that any payment of interest will be subject to the Swiss Withholding Tax, such parties
agree that, in the event that (i) the Swiss Withholding Tax shall be imposed on interest payments by any Swiss Borrowing Subsidiary
and (ii) such Swiss Borrowing Subsidiary is unable, by reason of the Swiss Withholding Tax Act, to comply with Section 2.17, the
interest rate on Loans and LC Disbursements of such Swiss Borrowing Subsidiary shall be increased in such a way that the amount
of interest effectively paid to each Lender or Issuing Bank is in an

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amount which (after making any deduction of the Non-Refundable
Portion (as defined below) of the Swiss Withholding Tax) equals the amount of such interest that would have been due had no deduction
of Swiss Withholding Tax been required. Unless an Event of Default has occurred and is continuing, a payment shall not be increased
with respect to a specific Lender under this paragraph (i) of Section 2.12 by reason of Swiss Withholding Tax if and to the extent
the Swiss Ten Non-Bank Rule and/or the Swiss Twenty Non-Bank Rule shall have been violated as a result, in whole or in part, of
such Lender's non-compliance with its obligations under Section 2.17(h) or Section 10.04(d) or by having lost its status as Qualifying
Bank (other than as a result of any Change in Law). For the purposes of this Section, “Non-Refundable Portion”
shall mean Swiss Withholding Tax at the standard rate (being, as at the date hereof, 35%) unless a tax ruling issued by the Swiss
Federal Tax Administration confirms that, in relation to a specific Lender based on an applicable double tax treaty, the Non-Refundable
Portion is a specified lower rate (or no withholding tax is imposed), in which case such lower rate (or zero rate) shall be applied
in relation to such Lender. To the extent that interest payable by a Swiss Borrowing Subsidiary under this Agreement or any other
Loan Document becomes subject to Swiss Withholding Tax, each specific Lender and the specific Swiss Borrowing Subsidiary shall
promptly co-operate in a commercially reasonable manner in completing any procedural formalities (including submitting forms and
documents required by the appropriate Tax authority) to the extent possible and necessary for the specific Swiss Borrowing Subsidiary
to obtain the tax ruling from Swiss Federal Tax Administration.

(i)
No Swiss Borrowing Subsidiary shall be required to pay any additional amount to a Lender pursuant to paragraph (h) above
to compensate such Lender for any Swiss Withholding Tax that, as to such Lender, is an Excluded Tax by reason of subclause (c)(ii)
of the definition of such term.

SECTION 2.13. Alternate Rate of Interest.
(a) If prior to the commencement of any Interest Period for a LIBOR Borrowing, a EURIBOR Borrowing or a CDOR Borrowing:

(i)
the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable
means do not exist for ascertaining the Adjusted LIBO Rate, the LIBO Rate, the EURIBO Rate or the CDO Rate, as the case may be
(including because the LIBO Screen Rate is not available or published on a current basis), for such Interest Period; or

(ii)
the Administrative Agent is advised by the Required Lenders (or a majority in interest of the Lenders that would make Loans
as part of such Borrowing) that the Adjusted LIBO Rate, LIBO Rate, EURIBO Rate or CDO Rate, as the case may be, for such Interest
Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining the Loans included in such Borrowing
for such Interest Period;

then the Administrative Agent shall give notice thereof to
the applicable Borrower and the applicable Lenders by telephone or telecopy as promptly as practicable thereafter and,

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subject to paragraph (b) of this Section, until the Administrative
Agent notifies the applicable Borrower and the applicable Lenders that the circumstances giving rise to such notice no longer exist
(it being agreed that the Administrative Agent will so notify the Company promptly after it becomes aware that such circumstances
no longer exist), (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any
Borrowing as, an affected LIBOR Borrowing, EURIBOR Borrowing or CDOR Borrowing, as the case may be, shall be ineffective, (B) any
affected LIBOR Borrowing, EURIBOR Borrowing or CDOR Borrowing that is requested to be continued shall (1) if denominated in US
Dollars, be continued as an ABR Borrowing or (2) otherwise, be repaid on the last day of the then current Interest Period applicable
thereto and (C) any Borrowing Request for an affected LIBOR Borrowing, EURIBOR Borrowing or CDOR Borrowing shall (1) if denominated
in US Dollars, be deemed a request for an ABR Borrowing or (2) otherwise, be ineffective.

(b)
If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that
(i) the circumstances set forth in Section 2.13(a)(i) have arisen and such circumstances are unlikely to be temporary
or (ii) the circumstances set forth in Section 2.13(a)(i) have not arisen but the supervisor for the administrator of the
applicable Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement
identifying a specific date after which the applicable Screen Rate shall no longer be used for determining interest rates for loans,
then the Administrative Agent and the Company shall endeavor to establish an alternate rate of interest to that based on the applicable
Screen Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated
loans of the applicable currency and Type at such time, and shall enter into an amendment to this Agreement to reflect such alternate
rate of interest and such other related changes to this Agreement as the Administrative Agent may determine to be appropriate.
Such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the
Administrative Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is
provided to the Lenders with Commitments of the applicable Class, a written notice from the Required Lenders stating that such
Required Lenders object to such amendment. Until an alternate rate of interest shall be determined in accordance with this paragraph
(b) (but, in the case of the circumstances described in clause (ii) of the first sentence of this Section 2.13(b), only to the
extent the applicable Screen Rate is not available or published at such time on a current basis), clauses (A), (B) and (C) of Section
2.13(a) shall be applicable. Notwithstanding the foregoing, if any alternate rate of interest established pursuant to this Section
2.13(b) (without giving effect to the Applicable Rate or any alternative spread that may have been agreed upon over the applicable
Lenders’ deemed cost of funds) shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

SECTION 2.14. Increased Costs. (a)
If any Change in Law shall:

(i)
impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement
against assets of, deposits with or for the account of or credit extended by, any Lender (except any

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such reserve requirement reflected in the Adjusted
LIBO Rate) or any Issuing Bank;

(ii)
subject the Administrative Agent, any Lender or any Issuing Bank to any Taxes (other than Indemnified Taxes on payments
under this Agreement and Other Taxes, which shall be governed by Section 2.17, and Excluded Taxes) on its loans, loan principal,
letters of credit, commitments or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
or

(iii)
impose on any Lender, any Issuing Bank or the London or European interbank market any other condition (other than Taxes)
affecting this Agreement or LIBOR Loans, EURIBOR Loans or CDOR Loans made by such Lender or any Letter of Credit or participations
therein;

and the result of any of the foregoing shall be to increase
the cost to such Lender of making or maintaining any Loan (or of maintaining its obligation to make any Loan) or to increase the
cost to such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of
any sum received or receivable by such Lender or Issuing Bank hereunder (whether of principal, interest or otherwise), then the
applicable Borrower will pay to such Lender or Issuing Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered; provided that
the Borrower shall have no obligation to pay or cause to be paid any amounts in respect of such increased cost or reduction if
it is not the general practice of such Lender or such Issuing Bank at the time such increased cost or reduction occurs to claim
reimbursement for, or indemnity with respect to, such increased cost or reduction in respect of similar transactions involving
similarly situated borrowers.

(b)
If any Lender or any 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 Issuing Bank’s capital or on the capital of such
Lender’s or 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 such Issuing Bank, to a level below that which such
Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s
or such Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the applicable
Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered.

(c)
If the cost to any Lender of making or maintaining any Loan to, or participating in any Letter of Credit or of any Issuing
Bank of issuing or maintaining any Letter of Credit to, a Borrowing Subsidiary is increased (or the amount of any sum received
or receivable by any Lender (or its applicable lending office) or any Issuing

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Bank is reduced) by an amount deemed in good faith by such
Lender or such Issuing Bank to be material, by reason of the fact that such Borrowing Subsidiary is incorporated in, has its principal
place of business in, or borrows from, a jurisdiction outside the United States, such Lender or such Issuing Bank shall provide
prompt notice thereof to the Company and such Borrowing Subsidiary shall indemnify such Lender or such Issuing Bank for such increased
cost or reduction within 10 days after demand by such Lender or such Issuing Bank (with a copy to the Administrative Agent); provided
that failure by such Lender or such Issuing Bank to provide prompt notice pursuant to this Section will not impair its rights to
indemnification under this Section (except, and only to the extent, such Borrowing Subsidiary suffers an actual loss by the failure
to provide such notice within 90 days from the incurrence of such increased cost). A certificate of such Lender or such Issuing
Bank claiming compensation under this paragraph and setting forth the additional amount or amounts to be paid to it hereunder (and
the basis for the calculation of such amount or amounts) shall be conclusive in the absence of manifest error.

(d)
A certificate of a Lender or Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or Issuing
Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to
the Company and shall be conclusive absent manifest error. The Company shall pay or cause the applicable Borrower to pay such Lender
or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

(e)
Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that
the applicable Borrower shall not be required to compensate a Lender or an 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 such Issuing Bank, as the case may be,
notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such
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.

(f)
Notwithstanding any other provision of this Section, no Lender shall demand compensation for any increased cost or reduction
pursuant to this Section if it shall not at the time be the general policy or practice of such Lender to demand such compensation
in similar circumstances under comparable provisions of other comparable financing agreements.

SECTION 2.15. Change in Legality.
(a) Notwithstanding any other provision herein, if, after the Restatement Effective Date, (i) any Change in Law shall have
made it unlawful for any Lender to make or maintain any LIBOR Loan, EURIBOR Loan or CDOR Loan or (ii) there shall have occurred
any change in national or international financial, political or economic conditions (including the imposition of or any change
in exchange controls) or currency exchange rates which would make it

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impracticable for any Lender to make any LIBOR Loan, EURIBOR
Loan or CDOR Loan, then, by written notice to the Company and to the Administrative Agent:

(i)
such Lender may declare that LIBOR Loans or EURIBOR Loans (in the affected currency or currencies) or CDOR Loan, as the
case may be, will not thereafter (for the duration of such unlawfulness or impracticability) be made by such Lender hereunder,
whereupon any request for a LIBOR Borrowing or EURIBOR Borrowing (in the affected currency or currencies) or a CDOR Borrowing,
as the case may be, shall, as to such Lender only, be deemed (A) in the case of a request for a Loan denominated in US Dollars,
a request for an ABR Loan or (B) in the case of a request for a Loan denominated in any other currency, to have been withdrawn;
and

(ii)
such Lender may require (A) that all affected LIBOR Loans denominated in US Dollars made by it be converted to ABR
Loans and (B) that all affected LIBOR Loans denominated in any other currency or EURIBOR or CDOR Loans made by it be prepaid,
in which event all such LIBOR Loans, EURIBOR Loans or CDOR Loans shall be automatically converted to ABR Loans or prepaid, as the
case may be, in each case as of the effective date of such notice as provided in paragraph (b) of this Section.

In the event any Lender shall exercise its rights under clause (i)
or (ii) above, all payments and prepayments of principal which would otherwise have been applied to repay the LIBOR Loans, EURIBOR
Loans or CDOR Loans of such Lender shall instead be applied to repay the ABR Loans made by such Lender in lieu of, or resulting
from the conversion of, such LIBOR Loans, EURIBOR Loans or CDOR Loans.

(b)
For purposes of this Section, a notice to the Company by any Lender shall be effective as to each such Loan, if lawful,
on the last day of the Interest Period currently applicable to such Loan; in all other cases such notice shall be effective on
the date of receipt by the Company.

SECTION 2.16. Break Funding Payments.
In the event of (a) the payment of any principal of any LIBOR Loan, EURIBOR Loan or CDOR 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 LIBOR Loan,
EURIBOR Loan or CDOR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any LIBOR Loan, EURIBOR Loan or CDOR Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether any such notice may be revoked or extended under Section 2.10(e) and is revoked or extended in accordance
therewith) or (d) the assignment of any LIBOR Loan, EURIBOR Loan or CDOR Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the applicable Borrower pursuant to Section 2.19 or following an Event of Default
with respect to the Company under Section 7.01(h) or (i), then, in any such event, the applicable Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case of any LIBOR Loan, EURIBOR Loan or CDOR Loan, such
loss, cost or expense to any Lender shall be deemed to include an

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amount determined by such Lender in good faith 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 Adjusted LIBO Rate, the LIBO Rate, the EURIBO Rate or the CDO Rate, as the case may be (without taking into
account the Applicable 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 that would accrue on such principal amount
for such period at the Adjusted LIBO Rate, the LIBO Rate, the EURIBO Rate or the CDO Rate, as the case may be (without taking into
account the Applicable Rate), for an Interest Period commencing on the date of such event and ending at or as nearly as possible
to the last day of the then current Interest Period for such Loan (or, in the case of a failure to borrow, convert or continue,
the last day of the period that would have been the Interest Period for such Loan). 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 applicable Borrower
and shall be conclusive absent manifest error. The applicable Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof.

SECTION 2.17. Taxes. (a) Any and
all payments by or on account of any obligation of any Loan Party hereunder or under any other Loan Document shall be made free
and clear of and without deduction for any Indemnified Taxes or Other Taxes, except as required by law; provided that if
any Loan Party shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, Lender and Issuing Bank (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Loan Party shall make such deductions and (iii) such
Loan Party shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

(b)
In addition, the Company shall pay, or shall cause the applicable Loan Party to pay, any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

(c)
The Company shall indemnify (or shall cause the applicable Loan Party to indemnify) the Administrative Agent, each Lender
and each Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid or withheld by the Administrative Agent, such Lender or such Issuing Bank, as the case may be, on or with respect to any payment
by or on account of any obligation of the Company (or such Loan Party) hereunder or under any other Loan Document (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority; provided that the Company shall have no obligation
to pay or cause to be paid any amounts in respect of Indemnified Taxes or Other Taxes if it

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is not the general practice of the Lender at the time such
Taxes are assessed or imposed to claim reimbursement for, or indemnity with respect to, such Taxes in respect of similar payments
or transactions involving similarly situated borrowers. A certificate as to the amount of such payment or liability delivered to
the Company by a Lender or an Issuing Bank or by the Administrative Agent, on its own behalf or on behalf of a Lender or an Issuing
Bank, shall be conclusive absent manifest error.

(d)
As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Company or any other Loan Party to a
Governmental Authority, the Company shall deliver, or shall cause such Loan Party to 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.

(e)
Each Lender shall severally indemnify the Administrative Agent for: (i) the full amount of any Excluded Taxes attributable
to such Lender that is 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 Excluded Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority, (ii) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan
Party has not already indemnified the Administrative Agent for such Indemnified Taxes without limiting the obligation of the Loan
Parties to do so), and (iii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 10.04(c)
relating to the maintenance of a Participant Register. The indemnity under this paragraph (e) shall be paid within 10 days after
the Administrative Agent delivers to the applicable Lender a certificate stating the amount of Excluded Taxes so payable by the
Administrative Agent. Such certificate shall be conclusive of the amount so payable absent manifest error.

(f)
(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax under the law of the jurisdiction in
which a Borrower is located, or any treaty to which such jurisdiction is a party, with respect to any payments under this Agreement
or any other Loan Document shall deliver to the Company (and the Administrative Agent), at the time or times prescribed by applicable
law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower 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 Borrower or the Administrative Agent, shall
deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent
as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding
or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion,
execution and submission of such documentation (other than such documentation set forth below in this paragraph (f)) 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

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position of such Lender. Upon the reasonable request of the
Borrower or the Administrative Agent, any Lender shall update any form or certification previously delivered pursuant to this Section.
If any form or certification previously delivered pursuant to this Section expires or becomes obsolete or inaccurate in any respect
with respect to a Lender, such Lender shall promptly (and in any event within 10 days after such expiration, obsolescence or inaccuracy)
notify such Borrower 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. 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 fails 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 the amount to deduct and withhold from such payment or to determine that such Lender has complied with applicable
reporting and other requirements of FATCA.

(ii)
Without limiting the generality of the foregoing, if any 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:

(A)
in the case of a Lender that is a U.S. Person, IRS Form W-9;

(B)
in the case of a Foreign 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 or W-8BEN-E, as applicable, establishing an exemption
from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (2) with
respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an exemption
from U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such
tax treaty;

(C)
in the case of a Foreign Lender for whom payments under any Loan Document 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 Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the
Code both (1) IRS Form W-8BEN or W-8BEN-E, as applicable, and (2) a certificate substantially in the form of the applicable certificate
in Exhibit C-2 (a “US Tax Certificate”) to

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the effect that such Lender is not (a) a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, (b) a “10 percent shareholder” of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code, (c) a “controlled foreign corporation” described in Section 881(c)(3)(C)
of the Code and (d) conducting a trade or business in the United States with which the relevant interest payments are effectively
connected;

(E)
in the case of a Foreign Lender that is not the beneficial owner of payments made under any Loan Document (including a partnership
or a participating Lender) (1) an IRS Form W-8IMY on behalf of itself and (2) the relevant forms prescribed in clauses (A), (B),
(C), (D) and (F) of this paragraph (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 US Tax Certificate substantially in the form of the applicable certificate in Exhibit C-2 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 Borrower or the Administrative Agent to determine the amount
of Tax (if any) required by law to be withheld.

(g)
If the Administrative Agent, a Lender or an Issuing Bank reasonably determines that it has received a refund of any Taxes
as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts pursuant
to this Section, it shall pay over such refund to such Loan Party (but only to the extent of indemnity payments made, or additional
amounts paid, by such Loan Party under this Section with respect to the Taxes giving rise to such refund), net of all reasonable
out-of-pocket expenses of the Administrative Agent, such Lender or such Issuing Bank and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided, however, that such Loan Party
agrees to pay, upon the request of the Administrative Agent, such Lender or such Issuing Bank, the amount paid to such Loan Party
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such
Lender or such Issuing Bank in the event the Administrative Agent, such Lender or such Issuing Bank is required to repay such refund
to such Governmental Authority. Nothing contained in this paragraph shall require the Administrative Agent, any Lender or any Issuing
Bank to make available its tax returns (or any other information relating to its Taxes that it deems confidential) to any
Loan Party or any other Person.

(h)
Each Global Tranche Lender that is a Global Tranche Lender as of the Restatement Effective Date confirms that, as of the
Restatement Effective Date, such Lender is a Qualifying Bank. Each Person that shall become a Lender after the Restatement Effective
Date confirms that, as of the date such Person becomes a Lender, and each Person that shall at any time acquire a participation
in any Loan of any Swiss

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Borrowing Subsidiary shall be deemed to have confirmed as
of the date such Person acquires such participation (or, if earlier, the date on which such Person acquired the participation in
a Commitment that resulted in its acquisition of such participation in such Loan of such Swiss Borrowing Subsidiary upon the making
thereof), that it is a Qualifying Bank. Each Lender which is a Qualifying Bank, and which participates in a Loan made to or LC
Disbursement for the account of any Swiss Borrowing Subsidiary, will promptly notify the specific Swiss Borrowing Subsidiary and
the Administrative Agent in writing as soon as it becomes aware that it ceases, or will cease, to be a Qualifying Bank. If and
to the extent the continued participation of such Lender in a Loan to or LC Disbursement for the account of any Swiss Borrowing
Subsidiary after it ceases to be a Qualifying Bank would result in a breach of the Swiss Withholding Tax Rules, the Swiss Borrowing
Subsidiary may, unless an Event of Default has occurred and is continuing pursuant to clause (h) or (i) of Article VII, require
that such Lender transfer its rights and obligations in respect of the Loan to another person in compliance with Section 10.04
as soon as reasonably practicable.

(i)
For purposes of applying clause (c)(i) of the definition of Excluded Taxes, the parties agree that the Swiss Withholding
Tax shall be treated as not “applicable” as of the date hereof.

(j)
Unless an Event of Default has occurred and is continuing, a payment shall not be increased with respect to a specific Lender
under this Section 2.17 by reason of Swiss Withholding Tax if and to the extent the Swiss Ten Non-Bank Rule and/or the Swiss Twenty
Non-Bank Rule shall have been violated as a result, in whole or in part, of such Lender's non-compliance with its obligations under
Section 2.17(h) or Section 10.04(d) or by having lost its status as Qualifying Bank (other than as a result of any Change in Law).

SECTION 2.18. Payments Generally; Pro
Rata Treatment; Sharing of Setoffs. (a) Each Borrower shall make each payment required to be made by it hereunder or under
any other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.14, 2.16 or 2.17, or otherwise) prior to 2:00 p.m. (or such other time as may be expressly provided in this Agreement),
Local Time at the place of payment, on the date when due, in immediately available funds, without setoff or counterclaim. Any amounts
received after such time on any date may be deemed, in the discretion of the Administrative Agent, to have been received on the
next succeeding Business Day for purposes of calculating interest thereon. Unless and until otherwise specified, all such payments
shall be made to the Administrative Agent for the account of the applicable Lenders to such account as the Administrative Agent
shall from time to time specify in one or more notices delivered to the Company, except that (i) payments to be made directly to
an Issuing Bank or the Swingline Lender shall be so directly made, (ii) payments pursuant to Sections 2.14, 2.16, 2.17 and 10.03
shall be made directly to the Persons entitled thereto and (iii) payments pursuant to other Loan Documents shall be made to the
Persons specified therein. Each such payment shall be made in US Dollars, except that the principal of and interest on any Loan
or LC Disbursement denominated in an Alternative Currency shall be made in such currency. The Administrative Agent shall distribute
any such payments received by

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it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan Document 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.

(b)
If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of
principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first,
towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts
of interest and fees then due to such parties and (ii) second, towards payment of principal and unreimbursed LC Disbursements
then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements then due to such parties.

(c)
If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Revolving Loans, participations in LC Disbursements or Swingline Loans or accrued interest
on any of the foregoing (collectively “Claims”) resulting in such Lender receiving payment of a greater proportion
of the aggregate amount of its Claims 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 Claims of the 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 amounts of their
respective Claims; 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, unless the Lender from which such payment is recovered is required to pay interest thereon, in which
case each Lender returning funds to such Lender shall pay its pro rata share of such interest, and (ii) the provisions of
this paragraph shall not be construed to apply to any payment made by any Borrower 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
any of its Claims to any assignee or participant, other than to the Company or any Subsidiary or Affiliate thereof (as to which
the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against
the Company and each Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Company or such Borrower in the amount of such participation.

(d)
Unless the Administrative Agent shall have received notice from a Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing Banks hereunder that such Borrower will not make such
payment, the Administrative Agent may assume that such Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such

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assumption, distribute to the Lenders or the Issuing Banks,
as the case may be, the amount due. In such event, if such Borrower has not in fact made such payment, then each of the Lenders
or the Issuing Banks, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount
so distributed to such Lender or such 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.

(e)
If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b),
2.18(d) or 10.03(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 for the benefit of the Administrative
Agent, the Swingline Lender or the Issuing Banks to satisfy such Lender’s obligations to it 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 any such Section, in the case of each of clauses (i) and
(ii) above, in any order as determined by the Administrative Agent in its discretion.

SECTION 2.19. Mitigation Obligations;
Replacement of Lenders. (a) If any Lender requests compensation under Section 2.14, or if a 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, 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 reasonable judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.14 or 2.17, as the case
may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. Such Borrower hereby agrees to pay all reasonable costs and expenses incurred by such Lender in connection with
any such designation or assignment.

(b)
If any Lender requests compensation under Section 2.14, or if a 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 becomes a Defaulting
Lender, then such Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 10.04),
all its interests, rights (other than its rights to payments pursuant to Section 2.14 or 2.17 which have already accrued) 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) such Borrower shall have received the prior written consent of the Administrative Agent
(and if a Commitment is being assigned, each Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld,
(ii) such Lender shall have received payment

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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 such Borrower
(in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section
2.14 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 applicable Borrower to require such assignment and delegation cease
to apply.

SECTION 2.20. Borrowing Subsidiaries.
On or after the Effective Date, the Company may designate (a) any Domestic Subsidiary, Swiss Subsidiary or Canadian Subsidiary,
or, with the prior written consent of each Global Tranche Lender, any other Subsidiary, as a Global Tranche Borrower, or (b) any
Domestic Subsidiary as a US Tranche Borrower, in each case by delivery to the Administrative Agent of a Borrowing Subsidiary Agreement
executed by such Subsidiary and the Company, and upon such delivery such Subsidiary shall for all purposes of this Agreement be
a Global Tranche Borrowing Subsidiary or a US Tranche Borrowing Subsidiary, as the case may be, and a party to this Agreement;
provided, that the Company shall not designate any Swiss Subsidiary as a Global Tranche Borrower if the Swiss Twenty Non-Bank
Rule would be violated upon the making of any Loan or other extension of credit hereunder to such Swiss Subsidiary. Any Borrowing
Subsidiary shall continue to be a Global Tranche Borrowing Subsidiary or a US Tranche Borrowing Subsidiary, as the case may be,
until the Company shall have executed and delivered to the Administrative Agent a Borrowing Subsidiary Termination with respect
to such Subsidiary, whereupon such Subsidiary shall cease to be a Borrowing Subsidiary and a party to this Agreement. Notwithstanding
the preceding sentence, (a) no Borrowing Subsidiary Agreement shall become effective as to any Subsidiary if it shall be unlawful
for such Subsidiary to become a Borrower hereunder or for any Lender participating in a Tranche under which such Subsidiary may
borrow to make Loans or otherwise extend credit to such Subsidiary as provided herein and (b) no Borrowing Subsidiary Termination
will become effective as to any Borrowing Subsidiary until all Loans made to such Borrowing Subsidiary shall have been repaid,
all Letters of Credit issued for the account of such Borrowing Subsidiary have been drawn in full or have expired and all amounts
payable by such Borrowing Subsidiary in respect of LC Disbursements, interest and/or fees (and, to the extent notified by the Administrative
Agent or any Lender, any other amounts payable under this Agreement by such Borrowing Subsidiary other than solely pursuant to
any guarantee by such Borrowing Subsidiary) shall have been paid in full; provided that such Borrowing Subsidiary Termination
shall be effective to terminate such Borrowing Subsidiary’s right to request or receive further Borrowings or other extensions
of credit under this Agreement. As soon as practicable upon receipt of a Borrowing Subsidiary Agreement, the Administrative Agent
shall send a copy thereof to each Global Tranche Lender or US Tranche Lender, as the case may be.

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SECTION 2.21. 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 2.11(a);

(b)  
the Commitments and Revolving Credit Exposures of such Defaulting Lender shall not be included in determining whether the
Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification
pursuant to Section 10.02); provided, that this clause (b) shall not apply to the vote of a Defaulting Lender in the case
of an amendment, waiver or other modification requiring the consent of each Lender or each Lender affected thereby;

(c)  
if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a Defaulting Lender then:

(i)
the Swingline Exposure and LC Exposure of such Defaulting Lender (other than any portion of such Swingline Exposure (x)
attributable to Swingline Loans made by such Defaulting Lender or (y) with respect to which such Defaulting Lender shall have funded
its participation as contemplated by Section 2.04(c)) shall be reallocated among the non-Defaulting Global Tranche Lenders ratably
in accordance with their respective Global Tranche Commitments, but only to the extent that no non-Defaulting Lender’s Global
Tranche Revolving Credit Exposure after giving effect to such reallocation would exceed such non-Defaulting Lender’s Global
Tranche Commitment;

(ii)
if the reallocations described in clause (i) above cannot, or can only partially, be effected, the Borrowers shall within
one Business Day following notice by the Administrative Agent (x) prepay such Swingline Exposure and/or (y) cash collateralize
for the benefit of the Issuing Banks only the Borrowers’ obligations corresponding to 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
2.05(j) for so long as such LC Exposure is outstanding;

(iii)
if the Borrowers cash collateralize 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 2.11(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 such Defaulting Lender is reallocated pursuant to clause (i) above, then the fees payable to the Lenders
pursuant to Section 2.11(a) and Section 2.11(b) shall be adjusted in accordance with the amounts of such LC Exposure allocated
to the non-Defaulting Lenders; and

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(v)
if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant
to clause (i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Banks or any other Lender hereunder,
all Letter of Credit fees payable under Section 2.11(b) with respect to such Defaulting Lender’s LC Exposure shall be payable
to the applicable Issuing Banks until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and

(d)  
so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and
no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related Swingline
Exposure and the Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of non-Defaulting
Global Tranche Lenders and/or cash collateral will be provided by the Borrowers in accordance with Section 2.21(c), and participating
interests in any newly made Swingline Loan or any newly issued or increased Letter of Credit shall be allocated among non-Defaulting
Global Tranche Lenders of the applicable Tranche in a manner consistent with Section 2.21(c)(i) (and such Defaulting Lender shall
not participate therein).

If (i) a Bankruptcy Event or Bail-in Action
with respect to a Parent of any Lender shall occur following the date hereof and for so long as such event shall continue or (ii)
the Swingline Lender or an Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under
one or more other agreements in which such Lender commits to extend credit, the Swingline Lender shall not be required to fund
any Swingline Loan and such Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless the Swingline
Lender or such Issuing Bank, as the case may be, shall have entered into arrangements with the Borrowers or such Lender, reasonably
satisfactory to the Swingline Lender or such Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender
hereunder.

In the event that the Administrative Agent,
the Borrower, the Swingline Lender and each Issuing Bank agree 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 Commitments and on such date such Lender shall purchase at par such of the US Tranche
Loans and/or Global Tranche Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for
the Lenders to hold such Loans in accordance with their applicable Tranche Percentages.

ARTICLE III

Representations and Warranties

The Company represents and warrants to
the Lenders as to itself and each Subsidiary, and each Borrowing Subsidiary represents and warrants to the Lenders as to itself
and its subsidiaries, as follows:

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SECTION 3.01. Organization; Powers.
The Company and each of the Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization, has all requisite power and authority to carry on its business as now conducted and except where the failure
to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified
to do business, and is in good standing, in every jurisdiction where such qualification is required.

SECTION 3.02. Authorization; Enforceability.
The Transactions to be entered into by each Loan Party are within such Loan Party’s corporate powers and have been duly authorized
by all necessary corporate and, if required, stockholder action. This Agreement has been duly executed and delivered by each Borrower
and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan
Party, will constitute, a legal, valid and binding obligation of the Borrowers or such Loan Party, as the case may be, 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, or the expiration of any waiting or similar period imposed by law or by any Governmental
Authority, except such as have been obtained or made and are in full force and effect or have expired, as the case may be, (b) will
not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Company or any other
Loan Party 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 the Company or any Subsidiary or their assets, or give rise to a right thereunder to
require any payment to be made by the Company or any Subsidiary, and (d) will not result in the creation or imposition of
any Lien on any asset of the Company or any Subsidiary, except any Liens created under the Loan Documents.

SECTION 3.04. Financial
Statements; No Material Adverse Change. (a) The Company has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, retained earnings and cash flows as of and for the fiscal year ended December 31, 2016,
reported on by KPMG LLP, independent public accountants. Such financial statements present fairly, in all material respects,
the financial position, results of operations and cash flows of the Company and its Consolidated Subsidiaries as of such
dates and for such periods in accordance with GAAP.

(b)
There has been no Material Adverse Change since December 31, 2016.

SECTION 3.05. Properties; Liens.
(a) The Company and each Subsidiary has good title to, or valid leasehold interests in, all its real and personal properties and
assets material to its business, except for minor defects in title that do not

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interfere with its ability to conduct its business as currently
conducted or to utilize its properties and assets for their intended purposes. All such owned properties and assets, and all such
leasehold interests, are free and clear of Liens, other than Liens expressly permitted under Section 6.02.

(b)
The Company and each Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and the 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) Except as disclosed on Schedule 3.06, there are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of the Company, threatened against or affecting the Company
or any of the Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that
involve any of the Loan Documents or the Transactions.

(b)
Neither the Company nor any Subsidiary (i) has failed to comply with any Environmental Law or to obtain, maintain or
comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for
any Environmental Liability, except, in each case, for failures and liabilities that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

(c)
Since the Restatement Effective Date, there has been no change in the status of the Disclosed Matters or Environmental Liabilities
that, individually or in the aggregate, has materially increased the likelihood of a Material Adverse Effect.

SECTION 3.07. Compliance with Laws.
The Company and each Subsidiary is in compliance with all laws, regulations and orders of any Governmental Authority applicable
to it or its property, except where the failure to be in compliance, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

SECTION 3.08. Investment Company Status.
Neither the Company nor any Subsidiary is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

SECTION 3.09. Taxes. The Company
and each Subsidiary has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid
or caused to be paid all Taxes required to have been paid by it, except (a) any Taxes that are being contested in good faith
by appropriate proceedings and for which the Company or such Subsidiary, as applicable, has set aside on its books adequate reserves

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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.

(a)
No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present
value of all accumulated benefit obligations of all underfunded Plans, other than the portion of the underfunding of any Plan described
in Section 4063 of ERISA that is attributable to contributing sponsors under such Plan that are not under common control with
the Company or any Subsidiary (based on an allocation of such liability consistent with the procedures set forth in Section 4063(b)
of ERISA) (based on the assumptions used for purposes of FASB ASC Topic 715) did not, as of the date of the most recent financial
statements of the Company reflecting such amounts, exceed by more than US$50,000,000 the fair market value of the assets of all
such underfunded Plans. The Company and each Subsidiary has complied in all material respects with all applicable laws and regulations
relating to employee benefit plans.

(b)
Except as set forth in Schedule 3.10(b) and except as could not reasonably be expected to result in a Material Adverse Effect,
with respect to each employee benefit plan, program, or other arrangement providing compensation or benefits to any employee or
former employee of the Company, any of its Subsidiaries or any Affiliate, which is subject to the laws of any jurisdiction outside
of the United States (the “Foreign Plans”): (i) such Foreign Plan has been and will be maintained in all
respects in accordance with all applicable requirements and all applicable laws, (ii) if intended to qualify for special tax
treatment, such Foreign Plan meets and will meet all requirements for such treatment, (iii) if intended or required to be
funded and/or book-reserved, such Foreign Plan is and will be fully funded and/or book-reserved, as appropriate, based upon reasonable
actuarial assumptions, and (iv) no liability exists, shall exist or reasonably could be imposed, upon the assets of the Company,
any of its Subsidiaries or any Affiliate by reason of such Foreign Plan.

SECTION 3.11. Disclosure. None of
the reports, financial statements, certificates or other written information furnished by or on behalf of any Loan Party to the
Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document or delivered
hereunder or thereunder (as modified or supplemented by other information so furnished), taken as a whole, contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to projected financial information, the foregoing
shall be limited to a representation and warranty that such information was prepared in good faith, subject to the express qualifications
set forth in such projections, based upon assumptions believed by the Company to be reasonable at the time.

SECTION 3.12. Subsidiaries. Schedule 3.12
sets forth the name and jurisdiction of organization of, and the ownership of the Company and each other

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Subsidiary in, each Subsidiary, identifying each such Subsidiary
that is a Loan Party, in each case as of the Restatement Effective Date.

SECTION 3.13. Solvency. On the Restatement
Effective Date, (a) the fair value of the assets of each Loan Party exceeds its debts and liabilities, subordinated, contingent
or otherwise; (b) the present fair saleable value of the property of each Loan Party is 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) each Loan Party is able to pay its debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) no Loan Party has 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 following the Restatement Effective Date.

SECTION 3.14. Federal Reserve Regulations.
No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to purchase or carry Margin Stock (as defined in Regulation U) (other than shares of the Company’s
common stock, to the extent permitted under Section 6.05), or to refinance Indebtedness originally incurred for such purpose, or
for any purpose that entails a violation of, or that is inconsistent with, the provisions of the Regulations of the Board, including
Regulation U or X. Not more than 25% of the assets subject to the restrictions of Sections 6.02 and 6.03 or any other
provision hereof restricting the disposition of, or creation of Liens on, assets of the Company and the Subsidiaries will at any
time consist of Margin Stock (as defined in Regulations U and X of the Board).

SECTION 3.15. Anti-Corruption Laws and
Sanctions. The Company has implemented and maintains in effect policies and procedures designed to promote compliance by the
Company, the Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable
Sanctions, and the Company and the Subsidiaries and, to the knowledge of the Company and in connection with their activities for
the Company and the Subsidiaries, their respective officers, employees, directors and agents, are in compliance with Anti-Corruption
Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected
to result in the Company or any Subsidiary being designated as a Sanctioned Person. None of (a) the Company, any Subsidiary or
any of their respective directors or officers, or (b) to the knowledge of the Company, any agent or employee of the Company or
any Subsidiary, in each case that will act in any capacity in connection with the credit facility established hereby, is a Sanctioned
Person.  No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this Agreement will
violate any Anti-Corruption Law or applicable Sanctions.

SECTION 3.16. EEA Financial Institutions.
No Loan Party is an EEA Financial Institution.

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ARTICLE IV

Conditions

SECTION 4.01. Restatement Effective
Date. The amendment and restatement of this Agreement in the form hereof shall not become effective until the date on which
each of the following conditions is satisfied (or waived in accordance with Section 10.02):

(a)
The Administrative Agent (or its counsel) shall have received, with a counterpart or copy for each Lender, from each party
hereto either (i) a counterpart of this Agreement signed on behalf of each such party or (ii) written evidence satisfactory
to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that each such
party has signed a counterpart of this Agreement.

(b)
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 each Loan Party, the authorization of the Transactions
and any other legal matters relating to the Loan Parties, the Loan Documents or the Transactions, all in form and substance satisfactory
to the Administrative Agent and its counsel.

(c)
The Administrative Agent shall have received, with a counterpart or copy for each Lender, a certificate, dated the Restatement
Effective Date, of a responsible officer of the Company confirming as of the Restatement Effective Date (i) the accuracy of
all representations and warranties in the Loan Documents and (ii) that there exists no Default, in each such case after giving
effect to the Transactions that are to occur on the Restatement Effective Date.

(d)
The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Restatement Effective
Date in connection with the transactions contemplated hereby, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses agreed to be reimbursed or paid by any Loan Party.

(e)
All Loans outstanding under the Existing Credit Agreement on the Restatement Effective Date shall have been prepaid (subject
to reborrowing on the terms set forth herein) and all interest and fees accrued to the Restatement Effective Date under the Existing
Credit Agreement shall have been paid.

(f)
The Guarantee Requirement shall be satisfied, and the Administrative Agent shall have received an instrument in form reasonably
satisfactory to it and executed by each of the Subsidiary Guarantors, pursuant to which each Subsidiary Guarantor reaffirms its
obligations under the Subsidiary Guarantee Agreement.

(g)
The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent, the Issuing
Banks and the

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Lenders and dated the Restatement Effective Date) of
each of (i) Charles J. Silva Jr., General Counsel of the Company, substantially in the form of Exhibit G-1,
(ii) Homburger AG, Swiss counsel for the Loan Parties, substantially in the form of Exhibit G-2, (iii) Stewart
McKelvey, Canadian counsel for the Loan Parties, substantially in the form of Exhibit G-3, and (iv) such special
and local counsel as may be required by the Administrative Agent, in each case covering such matters relating to the Loan Parties,
the Loan Documents or the Transactions as the Administrative Agent shall reasonably request.

(h)
The Administrative Agent shall have received all documentation and other information related to each Loan Party reasonably
required by the Administrative Agent and each Lender under applicable “know your customer” or similar rules and regulations,
including the USA PATRIOT Act.

Notwithstanding any other provision of
this Agreement, if the Restatement Effective Date shall not have occurred by the Termination Date, this Agreement shall cease to
be of any force or effect and the Existing Credit Agreement will continue in effect in its existing form.

SECTION 4.02. Conditions to All Extensions
of Credit. The obligation of each Lender to make a Loan on the occasion of any Borrowing (but not the conversion or continuation
of an outstanding Borrowing or the selection of a new Interest Period therefor, even if such conversion, continuation or selection
results in a new “Loan” or “Borrowing”), and the obligation of each 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 each Loan Party set forth in the 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.

The making of Loans on the occasion of 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 Company and each Borrowing Subsidiary on the date thereof as to the matters specified in paragraphs (a) and (b) of
this Section.

SECTION 4.03. Initial Credit Event for
each Borrowing Subsidiary. The obligation of each Lender and Issuing Bank to make Loans or issue Letters of Credit for the
account of any Borrowing Subsidiary designated pursuant to Section 2.20 is subject to the satisfaction of the following conditions:

(a)
The Administrative Agent (or its counsel) shall have received such Borrowing Subsidiary’s Borrowing Subsidiary Agreement,
duly executed by all parties thereto.

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(b)
The Administrative Agent shall have received a favorable written opinion of counsel for such Borrowing Subsidiary covering
such matters relating to such Borrowing Subsidiary or its Borrowing Subsidiary Agreement, and to any related Obligations of Foreign
Subsidiaries as Guarantors, as the Administrative Agent shall reasonably request.

(c)
The Administrative Agent shall have received (i) all documentation and other information related to such Borrowing Subsidiary
reasonably required by the Administrative Agent and each Lender under applicable “know your customer” or similar rules
and regulations, including the USA PATRIOT Act, and (ii) such documents and certificates as the Administrative Agent or its counsel
may reasonably request relating to the organization, existence and good standing of such Borrowing Subsidiary, the authorization
of the Transactions insofar as they relate to such Borrowing Subsidiary and any other legal matters relating to such Borrowing
Subsidiary, its Borrowing Subsidiary Agreement or such Transactions, all in form and substance satisfactory to the Administrative
Agent and its counsel.

ARTICLE V

Affirmative Covenants

Until the Commitments shall have expired
or shall have been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or shall have been terminated and all LC Disbursements shall have been reimbursed,
the Company and each Borrowing Subsidiary covenants and agrees with the Lenders (but, in the case of each Borrowing Subsidiary,
only as to such Borrowing Subsidiary and its subsidiaries) that:

SECTION 5.01. Financial Statements and
Other Information. The Company will furnish to the Administrative Agent, with copies for each Lender:

(a)
no later than the earlier of (i) 10 days after the date that the Company is required to file a report on Form 10-K with
the Securities and Exchange Commission in compliance with the reporting requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended (whether or not the Company is so subject to such reporting requirements), and (ii) 90 days after
the end of each fiscal year of the Company, its audited consolidated balance sheet and related statements of income,
retained earnings 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 KPMG 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

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operations of the Company and its Consolidated Subsidiaries
on a consolidated basis in accordance with GAAP;

(b)
no later than the earlier of (i) 10 days after the date that the Company is required to file a report on Form 10-Q
with the Securities and Exchange Commission in compliance with the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (whether or not the Company is so subject to such reporting requirements), and (ii) 45 days
after the end of each of the first three fiscal quarters of each fiscal year of the Company, its consolidated balance sheet and
related statements of income, retained earnings 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 the Company and its Consolidated
Subsidiaries on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the absence of footnotes;

(c)
by each date by which the Company is required to deliver financial statements under clause (a) or (b) above,
a certificate of a Financial Officer of the Company (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, (ii) setting
forth reasonably detailed calculations demonstrating compliance with Sections 6.08 and 6.09 and (iii) stating whether
any change in GAAP or in the application thereof has occurred since the date of the Company’s 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)
by each date by which the Company is required to deliver financial statements under clause (a) above, a certificate
of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of
their examination of such financial statements of any Default (which certificate may be limited to the extent required by accounting
rules or guidelines);

(e)
not later than the last day of the second month of each fiscal year of the Company, a detailed consolidated budget for such
fiscal year (including a projected consolidated balance sheet and related statements of projected operations and cash flow as of
the end of and for such fiscal year), consistent in form and substance with the budgets heretofore prepared by the Company and
furnished to the Administrative Agent and, promptly when available, any significant revisions to such budget;

(f)
promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other
materials filed by the

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Company 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 the Company 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 the Company or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any
Lender may reasonably request.

Financial statements required to be delivered
pursuant to paragraph (a) or (b) of this Section shall be deemed to have been delivered if (i) such financial statements,
or one or more annual or quarterly reports containing such financial statements, shall have been filed with the Securities and
Exchange Commission and shall be available on the website of the SEC at http://www.sec.gov and (ii) the Company shall have
notified the Administrative Agent of such filing.

SECTION 5.02. Notices of Material Events.
If, to the knowledge of any Financial Officer or other executive officer of the Company, any of the following events has occurred:

(a)
any Default;

(b)
the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against
or affecting the Company or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

(c)
any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Company or its Subsidiaries in an aggregate amount exceeding US$20,000,000; or

(d)
any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect;

then the Company will furnish to the Administrative Agent
and each Lender prompt written notice of such occurrence. Each notice delivered under this Section shall be accompanied by a statement
of a Financial Officer or other executive officer of the Company setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

SECTION 5.03. Existence; Conduct of
Business. The Company will, and will cause each of the 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, franchises, patents,
copyrights, trademarks and tradenames material to the conduct of the business of the Company and the Subsidiaries, taken as a

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whole; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation, dissolution or other transaction permitted under Section 6.03.

SECTION 5.04. Payment of Obligations.
The Company will, and will cause each of the Subsidiaries to, pay its Indebtedness and other obligations, including Tax liabilities,
before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested
in good faith by appropriate proceedings and the Company or such Subsidiary has set aside on its books adequate reserves with respect
thereto in accordance with GAAP or (b) failure to pay could not reasonably be expected to result in a Material Adverse Effect.

SECTION 5.05. Maintenance of Properties.
The Company will, and will cause each of the Subsidiaries to, keep and maintain all property material to the conduct of its business
in good working order and condition, ordinary wear and tear excepted; except for such cases of non-compliance that, individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

SECTION 5.06. Insurance. The Company
will, and will cause each of the Subsidiaries to, maintain, with financially sound and reputable insurance companies, insurance
against such risks (and with such risk retentions) as shall be customary for companies of established reputation engaged in the
same or similar businesses, and will furnish, and cause each of the Subsidiaries to furnish, to the Lenders, at the request of
the Administrative Agent, information in reasonable detail as to the insurance carried by it.

SECTION 5.07. Books and Records; Inspection
Rights. The Company will, and will cause each of the Subsidiaries to, keep proper books of record and account in which full,
true and correct entries in all material respects are made of all dealings and transactions in relation to its business and activities.
The Company will, and will cause each of the 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 to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable
times and as often as reasonably requested; provided that nothing in this Section shall require any Loan Party to disclose
any confidential or proprietary information constituting trade secrets.

SECTION 5.08. Compliance with Laws.
The Company will, and will cause each of the Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental
Authority (including Environmental Laws and ERISA and the rules and regulations thereunder) applicable to it, its operations 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. The Company will maintain in effect and enforce policies and procedures designed to promote compliance
by the Company, the Subsidiaries and, in connection with their activities for the Company and the Subsidiaries, their respective
directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

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SECTION 5.09. Use of Proceeds and Letters
of Credit. Each Borrower will use the proceeds of the Loans and the Letters of Credit only for the purposes set forth in the
preamble to this Agreement. Each Borrower will not request any Borrowing or Letter of Credit, and will not use, and will procure
that its Subsidiaries and its or their respective directors, officers, employees and agents will not use, the proceeds of any
Borrowing or any Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or
giving of money, or anything else of value, to any Person in violation of the US Foreign Corrupt Practices Act or in material
violation of any other Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business
or transaction of or with any Sanctioned Person or in any Sanctioned Country, to the extent such activities, businesses or transaction
would cause a violation of Sanctions by any party hereto, or (C) in any manner that would result in the violation of any Sanctions
applicable to any party hereto.

SECTION 5.10. Further Assurances.
The Company will, and will cause each of the Subsidiaries to, execute any and all further documents, agreements and instruments,
and take all further action that may be required under applicable law, or that the Required Lenders or the Administrative Agent
may reasonably request, in order that the Guarantee Requirement shall be satisfied at all times.

SECTION 5.11. Compliance with Swiss
Withholding Tax Rules. Each Swiss Borrowing Subsidiary shall ensure that while it is a Borrower it shall comply with the Swiss
Withholding Tax Rules; provided that the Swiss Borrowing Subsidiary shall not be in breach of this covenant if its number
of creditors in respect of either the Swiss Ten Non-Bank Rule or the Swiss Twenty-Non Bank Rule is exceeded solely by reason of
a failure by one or more Lenders to comply with their obligations under Clause 2.17(h) or 10.04(d) or by having lost its status
as Qualifying Bank (other than as a result of any Change in Law). For purposes of compliance with the Swiss Withholding Tax Rules,
each Swiss Borrowing Subsidiary shall assume for the purposes of determining the total number of creditors which are Non-Qualifying
Banks that at all times there are ten Lenders that are Non-Qualifying Banks.

ARTICLE VI

Negative Covenants

Until the Commitments shall have expired
or shall have been terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full
and all Letters of Credit shall have expired or shall have been terminated and all LC Disbursements shall have been reimbursed,
the Company and each Borrowing Subsidiary covenants and agrees with the Lenders (but, in the case of each Borrowing Subsidiary,
only as to such Borrowing Subsidiary and its subsidiaries) that:

SECTION 6.01. Subsidiary Debt. The
sum, without duplication, of (a) the total Indebtedness of all Consolidated Subsidiaries (excluding (i) Indebtedness under
this Agreement, (ii) Indebtedness existing on the Restatement Effective Date and

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set forth on Schedule 6.01, (iii) Indebtedness
owed to the Company or to a Subsidiary, (iv) obligations in respect of letters of credit incurred in the ordinary course of
business (other than any drawn but unreimbursed obligations under such letters of credit) and (v) Indebtedness of any Subsidiary
Guarantor) plus (b) the consideration (other than any note of a Subsidiary that serves as a conduit in a sale or financing
transaction with respect to Receivables) directly or indirectly received by any Consolidated Subsidiary from any Person (other
than the Company or a Subsidiary) for Receivables sold, which Receivables remain uncollected at such time (other than delinquent
Receivables sold for collection in the ordinary course of business and not as part of a financing transaction), will at no time
exceed US$100,000,000.

SECTION 6.02. Negative Pledge. Neither
the Company nor any Consolidated Subsidiary will create, incur, assume or suffer to exist any Lien on any asset now owned or hereafter
acquired by it, except:

(a)
any Lien created under the Loan Documents;

(b)
Liens existing on the Restatement Effective Date securing Indebtedness outstanding on the Restatement Effective Date and
set forth on Schedule 6.02;

(c)
any Lien on any asset securing Indebtedness (including Capital Lease Obligations) incurred or assumed for the purpose of
financing all or any part of the cost of acquiring such asset; provided that such Lien attaches to such asset concurrently
with or within 180 days after the acquisition thereof, and, in addition, (i) any other Lien deemed to exist under a Capital
Lease Obligation permitted under Sections 6.01 and 6.06 and (ii) any other Lien deemed to exist under a capital lease that does
not constitute a Capital Lease Obligation;

(d)
any Lien existing on any asset of any corporation at the time such corporation becomes a Consolidated Subsidiary, provided
that (i) such Lien is not created in contemplation of or in connection with such corporation becoming a Consolidated Subsidiary,
(ii) such Lien shall not apply to any other property or assets of the Company or any Subsidiary and (iii) such Lien shall secure
only those obligations which it secures on the date such corporation becomes a Consolidated Subsidiary and extensions, renewals
and replacements thereof that do not increase the outstanding principal amount thereof;

(e)
any Lien on any asset of any corporation existing at the time such corporation is merged or consolidated with or into the
Company or any Consolidated Subsidiary and not created in contemplation of such event; provided that such Lien shall not
extend to other properties or assets of the Company or any Subsidiary and shall secure only those obligations which it secures
on the date of such merger or consolidation and extensions, renewals and replacements thereof that do not increase the outstanding
principal amount thereof;

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(f)
any Lien existing on any asset prior to the acquisition thereof by the Company or any Consolidated Subsidiary and not created
in contemplation of such acquisition;

(g)
any Lien arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any Lien permitted
by any of the foregoing clauses of this Section; provided that such Indebtedness is not increased and is not secured by
any additional assets;

(h)
Liens for taxes that are not yet subject to penalties for non-payment or are being contested in good faith, or minor survey
exceptions or minor encumbrances, easements or other rights of others with respect to, or zoning or other governmental restrictions
as to the use of, real property that do not, in the aggregate, materially impair the use of such property in the operation of the
businesses of the Company and the Subsidiaries;

(i)
(x) Liens arising out of judgments or awards against the Company or any Subsidiary with respect to which the Company or
such Subsidiary is, in good faith, prosecuting an appeal or proceedings for review and (y) Liens incurred by the Company or
any Subsidiary for the purpose of obtaining a stay or discharge in any legal proceeding to which the Company or any Subsidiary
is a party; provided that the Liens permitted by the foregoing clause (y) shall not secure obligations in an aggregate principal
amount outstanding in excess of 5% of Consolidated Tangible Net Worth;

(j)
(x) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’ or
other like Liens arising in the ordinary course of business for sums which are not overdue for a period of more than 60 days or
which are being contested in good faith by appropriate proceedings, (y) pledges or deposits in connection with workers’
compensation, unemployment insurance and other social security legislation and deposits securing liability to insurance carriers
under insurance or self-insurance arrangements, and (z) deposits to secure the performance of bids, trade contracts (other
than for Indebtedness), leases (other than Capital Lease Obligations), statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of business;

(k)
Liens that may be deemed to be created by the subordination in right of payment of any obligations owed to the Borrower
or any Subsidiary to other obligations of the Borrower or such Subsidiary, as the case may be;

(l)
any Lien arising out of a Permitted AEC Transaction; provided, however, that such Lien does not extend to
any property other than the property that is the subject of such Permitted AEC Transaction;

(m)
any Liens arising out of a transaction in connection with a sale of Receivables, to the extent not prohibited under Section
6.01; and

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(n)
Liens not otherwise permitted by the foregoing clauses of this Section securing Indebtedness in an aggregate principal amount
outstanding not to exceed 5% of Consolidated Tangible Net Worth.

SECTION 6.03. Consolidations, Mergers
and Sales of Assets. The Company will not, and will not permit any of the Subsidiaries to, consolidate or merge with, or sell,
lease or otherwise dispose of any of its assets to, or, in the case of a Subsidiary, issue or sell any Equity Interests in such
Subsidiary to, any Person (other than the Company or a Subsidiary), except that, so long as no Default would result under any other
provision of this Agreement:

(a)
any Person may merge with and into the Company or any Subsidiary Guarantor; provided that the Company or such Subsidiary
Guarantor, as the case may be, is the surviving Person;

(b)
any Person other than the Company or a Subsidiary Guarantor may merge with and into any Subsidiary that is not a Subsidiary
Guarantor; provided that such Subsidiary is the surviving Person;

(c)
subject to Section 6.07, the Company or any Subsidiary may sell, lease or otherwise dispose of any of its assets to the
Company or any other Subsidiary;

(d)
the Company or any Subsidiary may sell, lease or otherwise dispose of any of its inventory in the ordinary course of business
and any of its assets which are obsolete, excess or unserviceable;

(e)
the Company and any Subsidiary may sell Receivables (i) in one or more transactions in the ordinary course of business and
consistent with past practice, the proceeds of which transactions are used for working capital; and (ii) in connection with a sale
of Receivables, to the extent not prohibited under Section 6.01;

(f)
the Company and the Subsidiaries may carry out sale and leaseback transactions permitted under Section 6.06 and may make
investments permitted under Section 6.07;

(g)
the Company and the Subsidiaries may carry out a Permitted AEC Transaction;

(h)
in addition to the foregoing, the Company or any Subsidiary may sell or otherwise dispose of Equity Interests in any Subsidiary,
and any Subsidiary may issue and sell its Equity Interests, to one or more Persons other than the Company and the Subsidiaries
if (i) the applicable Subsidiary remains a Subsidiary after giving effect to such transaction and (ii) after giving effect to such
transaction, the aggregate amount of minority equity interests in Subsidiaries (excluding any such interests sold in a Permitted
AEC Transaction) does not exceed 7.5% of Consolidated Tangible Net Worth; and

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(i)
in addition to the foregoing, the Company or any Subsidiary may sell, lease or otherwise dispose of any of its assets for
fair value (other than as permitted by clauses (a) through (h) above); provided that (i) no such transaction,
when taken together with all previous such transactions after the Restatement Effective Date, shall result in all or substantially
all of the assets of the Company and the Subsidiaries having been sold or otherwise disposed of, (ii) no such transaction
shall result in a reduction in the percentage of the Equity Interests of any Subsidiary owned directly or indirectly by the Company
unless all the Equity Interests in such Subsidiary owned directly or indirectly by the Company are disposed of and (iii) except
in the case of an Excluded Divestiture or a sale of Receivables not prohibited under Section 6.01, the Commitments shall be reduced
pursuant to Section 2.08(b) by an amount at least equal to 75% of the Net Proceeds of each such transaction; provided that
if the Company shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that the Company and
the Subsidiaries intend to apply the Net Proceeds from such disposition (or a portion thereof specified in such certificate), within
180 days after receipt of such Net Proceeds, to acquire real property, equipment or other assets to be used in the business of
the Company and the Subsidiaries, and certifying that no Default has occurred and is continuing, then no reduction of the Commitments
shall be required pursuant to this clause (iii) in respect of the Net Proceeds of such disposition (or the portion of such Net
Proceeds specified in such certificate, if applicable) except to the extent of any Net Proceeds therefrom that have not been so
applied by the end of such 180-day period, at which time a reduction of the Commitments shall be required in an amount equal
to 75% of such Net Proceeds not so applied.

SECTION 6.04. Transactions with Affiliates.
The Company will not, and will not permit any of the Subsidiaries to, directly or indirectly, pay any funds to or for the account
of, make any investment in or engage in any transaction with any Affiliate (other than the Company or a Subsidiary none of the
Equity Interests in which are owned directly or indirectly by an Affiliate of the Company that is not a Subsidiary), except that:

(a)
the Company may declare and pay any dividend permitted by Section 6.05;

(b)
the Company or any Subsidiary may make payments or provide compensation, and reimburse related expenses, for services rendered
by (i) any Affiliate who is an officer, director or employee of the Company or any Subsidiary and (ii) J. Spencer
Standish;

(c)
the Company or any Subsidiary may make any investment permitted by Section 6.07; provided that any such transaction
with an Affiliate referred to in clause (f) or (j) of Section 6.07 is on terms and conditions at least as favorable to the Company
or such Subsidiary as the terms and conditions that would apply in an arm’s length transaction with a Person not an Affiliate;

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(d)
the Company or any Subsidiary (i) may make sales to or purchases from any Affiliate and, in connection therewith, extend
credit, may make payments or provide compensation for services rendered by any Affiliate, and may engage in any other transaction
with any Affiliate, in each case in the ordinary course of business and consistent with past practice or, in the case of any AEC
Joint Venture Entity, on arms’ length terms, and (ii) may repurchase common stock of the Company from any Affiliate; provided
that any such transaction with an Affiliate pursuant to clause (i) or (ii) is on terms and conditions at least as favorable to
the Company or such Subsidiary as the terms and conditions that would apply (1) in an arm’s length transaction with a Person
not an Affiliate or (2) in the case of a transaction relating to pension, deferred compensation, insurance or other benefit plans
with an Affiliate employee, in a similar transaction with a non-Affiliate employee; and

(e)
the Company or any Subsidiary may engage in transactions with the entities listed on Schedule 6.04 to the extent
consistent with past practice.

SECTION 6.05. Restricted Payments.
The Company will not declare or make any Restricted Payment unless, immediately after giving effect to such Restricted Payment,
(a) the Leverage Ratio does not exceed 3.50 to 1.00 and (b) no Default shall have occurred and be continuing.

SECTION 6.06. Limitations on Sale-Leasebacks.
The Company will not, and will not permit any of the Subsidiaries to, enter into any arrangement, directly or indirectly, with
any Person whereby the Company or such Subsidiary shall sell or transfer property, whether now owned or hereafter acquired, and
then or thereafter rent or lease as lessee such property or any part thereof or any other property which the Company or any Subsidiary
intends to use for substantially the same purpose or purposes as the property being sold or transferred, unless (a) such transaction
is effected within 180 days of the property being placed in service by the Company or such Subsidiary and results in a lease
obligation incurred or assumed for the purpose of financing all or any part of the cost of acquiring such property, (b) after
giving effect to such transaction, the aggregate fair market value of all property of the Company and its Subsidiaries so sold
or transferred after the Restatement Effective Date, and not permitted under clause (a) above or clause (c) below, does not
exceed US$75,000,000 or (c) the Commitments shall be reduced pursuant to Section 2.08(b) by an amount at least equal to 75%
of the Net Proceeds of such transaction; provided that if the Company shall deliver to the Administrative Agent a certificate
of a Financial Officer to the effect that the Company and the Subsidiaries intend to apply the Net Proceeds from such transaction
(or a portion thereof specified in such certificate), within 180 days after receipt of such Net Proceeds, to acquire real property,
equipment or other assets to be used in the business of the Company and the Subsidiaries, and certifying that no Default has occurred
and is continuing, then no reduction of the Commitments shall be required pursuant to this clause (c) in respect of the Net Proceeds
of such transaction (or the portion of such Net Proceeds specified in such certificate, if applicable) except to the extent of
any Net Proceeds therefrom that have not been so applied by the end of such 180-day period, at which time a reduction of

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the Commitments shall be required in an amount equal to 75%
of such Net Proceeds not so applied.

SECTION 6.07. Investments, Loans, Advances,
Guarantees and Acquisitions. The Company will not, and will not permit any of the Subsidiaries to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a Subsidiary prior to such merger) any Equity Interests, evidences
of Indebtedness or other securities (other than any Hedging Agreement entered into in the ordinary course of business) of, make
or permit to exist any loans or advances (excluding accounts receivable arising out of the sale of goods and services reflected
on the Company’s consolidated balance sheet as current assets) to, Guarantee any obligations of, or make or permit to exist
any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit, except:

(a)
Permitted Investments;

(b)
(i) investments existing on the Restatement Effective Date in the capital stock of Subsidiaries or in Indebtedness
of Subsidiaries and (ii) other investments existing on the Restatement Effective Date and set forth on Schedule 6.07;

(c)
acquisitions of assets of or Equity Interests in other Persons for consideration consisting solely of common stock of the
Company;

(d)
acquisitions of assets of or Equity Interests in other Persons that are not Affiliates of the Company, and loans or advances
to Subsidiaries to provide funds required to effect such acquisitions, if, at the time of and after giving pro forma effect to
each such acquisition, to any related Leverage Increase Election and to any related incurrences of Indebtedness, (i) the Leverage
Ratio does not exceed the maximum Leverage Ratio in effect at such time under Section 6.08 and (ii) no Default shall have occurred
and be continuing;

(e)
(i) any Guarantee, investment, loan or advance by a Loan Party of, in or to another Loan Party; (ii) any Guarantee, investment,
loan or advance by a Subsidiary that is not a Loan Party, or that is a Borrower that is a Foreign Subsidiary, of, in or to a Loan
Party; (iii) any Guarantee, investment, loan or advance by any Subsidiary that is not a Loan Party, or that is a Borrower
that is a Foreign Subsidiary, of, in or to any other Subsidiary that is not a Loan Party; (iv) any other Guarantee, investment,
loan or advance by any Loan Party of, in or to any Subsidiary that is not a Loan Party, provided that each investment,
loan or advance referred to in this clause (iv) made after the Restatement Effective Date must be in an outstanding principal amount
that, together with the aggregate outstanding principal amount of all other investments, loans and advances permitted by this clause
(iv) and made after the Restatement Effective Date, but net of all amounts paid by such non-Loan Party Subsidiaries in or to one
or more Loan Parties after the Restatement Effective Date that constitute repayments of

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loans or advances made by such Loan Parties or returns
of capital (as opposed to returns on capital) invested by such Loan Parties, shall not exceed US$100,000,000 and (v) in addition
to Guarantees, investments, loans and advances permitted under the preceding clauses (i) through (iv), (A) any Permitted AEC Transaction
and (B) any Guarantee, investment, loan or advance by any Loan Party (whether directly or indirectly through one or more intervening
Subsidiaries that are not Loan Parties) of, in or to an AEC Joint Venture Entity, provided that each investment, loan or
advance referred to in this clause (v)(B) made after the Restatement Effective Date must be in an outstanding principal amount
that, together with the aggregate outstanding principal amount of all other Guarantees, investments, loans and advances permitted
by such clause (v)(B) and made after the Restatement Effective Date, but net of all amounts paid by such AEC Joint Venture
Entity to one or more Loan Parties after the Restatement Effective Date that constitute repayments of loans or advances made by
such Loan Parties or returns of capital (as opposed to returns on capital) invested by such Loan Parties, shall not exceed US$100,000,000;

(f)
Guarantees by a Subsidiary constituting Indebtedness permitted by Section 6.01 (provided that a Subsidiary shall
not Guarantee any obligation of the Company unless such Subsidiary also has Guaranteed the Obligations of the Company hereunder)
and Guarantees by the Company of Indebtedness or other obligations of a Subsidiary not prohibited by Section 6.01;

(g)
Guarantees by the Company of obligations to Bank of America, N.A., (i) of AIH under the Amended and Restated Limited Guaranty
and Indemnity Agreement dated as of May 1, 2015 (as amended from time to time) between the Company and Bank of America, N.A., in
respect of overdrafts or currency hedging transactions in an aggregate amount not to exceed US$20,000,000 at any time, and (ii)
of other Subsidiaries under the Limited Guaranty and Indemnity Agreement dated as of May 1, 2015 (as amended from time to time)
between the Company and Bank of America, N.A., in respect of credit card exposure in an aggregate amount not to exceed US$2,500,000
at any time;

(h)
investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes
with, customers and suppliers, in each case in the ordinary course of business;

(i)
loans or other advances to employees consistent with past practice; and

(j)
other investments not permitted under clauses (a) through (i) above in an aggregate amount not exceeding US$75,000,000 at
any time.

SECTION 6.08. Leverage Ratio.

(a)
Subject to Section 6.08(b), the Company will not permit the Leverage Ratio, determined as of the end of each of its
fiscal quarters, to exceed (i) 3.75 to 1.00 for each fiscal quarter ending prior to (but not including) September 30,

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2019, and (ii) 3.50 to 1.00 for each fiscal quarter
ending on or after September 30, 2019 (each of (i) and (ii), the “Permitted Leverage Ratio Level”).

(b)
If, in any fiscal quarter ending on or after September 30, 2019, the Company shall complete an acquisition of any Person
or business unit for cash consideration of US$100,000,000 or more, that on a pro forma basis, taking into account any related incurrence
or repayment of Indebtedness, would result in an increase in the Company’s Leverage Ratio, the Company may elect, by written
notice delivered to the Administrative Agent at the time of or within 30 days following such completion (a “Leverage Increase
Election”), to increase the Permitted Leverage Ratio Level by 0.25 to 1.00 (so that the Permitted Leverage Ratio Level
becomes 3.75 to 1.00), with respect to the fiscal quarter during which such acquisition has been completed and for each of the
following three consecutive fiscal quarters (the fiscal quarters during which any such increase in the Leverage Ratio shall be
in effect being called a “Leverage Increase Period”).

(c)
The Company may terminate any Leverage Increase Period by a notice delivered to the Administrative Agent (a “Leverage
Increase Termination Notice”), whereupon, on the last day of the fiscal quarter during which such Leverage Increase Termination
Notice was delivered, the Permitted Leverage Ratio Level shall revert to 3.50 to 1.00, until the commencement of another Leverage
Increase Period pursuant to this Section 6.08.

(d)
If a Leverage Increase Election shall have been made under this Section 6.08, the Company may not make another Leverage
Increase Election unless, following the expiration or termination of the most recent prior Leverage Increase Period, at least two
consecutive full fiscal quarters of the Company have elapsed.

SECTION 6.09. Interest Coverage Ratio.
The Company will not permit the ratio, determined as of the end of each of its fiscal quarters, of (i) Consolidated EBITDA
to (ii) Consolidated Interest Expense, in each case for the period of four consecutive fiscal quarters ending with the end of such
fiscal quarter, to be less than 3.00 to 1.00.

SECTION 6.10. Lines of Business.
The Company will not, and will not permit any of the Subsidiaries to, engage at any time in any business or business activity other
than a business conducted by the Company and its Subsidiaries on the Restatement Effective Date and business activities reasonably
related thereto.

ARTICLE VII

Events of Default

SECTION 7.01. Events of Default.
If any of the following events (“Events of Default”) shall occur:

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(a)
any Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement
when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

(b)
any Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to
in clause (a) of this Article) payable under this Agreement or any other Loan Document, 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 Company or any Subsidiary in or in connection
with any Loan Document or any amendment or modification thereof or waiver thereunder, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof
or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;

(d)
the Company or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02,
5.03 (with respect to the existence of any Borrower) or 5.09 or in Article VI;

(e)
any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in any Loan Document (other
than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of
30 days after notice thereof from the Administrative Agent to the Company (which notice will be given at the request of any
Lender);

(f)
the Company or any Subsidiary 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 event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or
that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material
Indebtedness 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 (i) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness and (ii) Indebtedness of any of the Company’s Chinese subsidiaries held by Chinese banks that
is subject to customary demand or acceleration rights so long as any such debt subject to an actual demand for payment or acceleration
is fully refinanced or repaid within 30 days following the date on which the principal of such Indebtedness becomes due as a result
of such demand or acceleration;

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(h)
an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of the Company or any Material Subsidiary 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 the Company or any Material Subsidiary or
for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days
or an order or decree approving or ordering any of the foregoing shall be entered;

(i)
the Company or any Material Subsidiary 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 the Company or any Material 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)
the Company or any Material Subsidiary 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 US$20,000,000 shall be rendered against
the Company, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 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 the Company or any Subsidiary to enforce any such judgment;

(l)
an ERISA Event shall have occurred that, in the reasonable opinion of the Required Lenders, when taken together with all
other unsatisfied liabilities in connection with ERISA Events that have occurred, could reasonably be expected to result in liability
of the Company and the Subsidiaries in an aggregate amount exceeding (i) US$20,000,000 in any year or (ii) US$35,000,000
in the aggregate;

(m)
any guarantee of any Guarantor hereunder or under the Subsidiary Guarantee Agreement shall cease to be, or shall be asserted
by any Loan Party not to be, a legal, valid and binding obligation of such Guarantor; or

(n)
a Change in Control shall occur;

then, and in every such event (other than
an event with respect to the Company described in clause (h) or (i) of this Article), and at any time thereafter during

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the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Company and any other Borrower, take either or both of the following
actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared
to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrowers; and in case of any event with respect to the Company 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.

ARTICLE VIII

The Administrative Agent

In order to expedite the transactions contemplated
by this Agreement, JPMCB is hereby appointed to act as Administrative Agent, on behalf of the Lenders and each Issuing Bank. Each
of the Lenders, each assignee of any such Lender and each Issuing Bank hereby irrevocably authorizes the Administrative Agent to
take such actions on behalf of such Lender or assignee or such Issuing Bank and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.
The Administrative Agent is hereby expressly authorized by the Lenders and each Issuing Bank, without hereby limiting any implied
authority, (a) to receive on behalf of the Lenders and the Issuing Banks all payments of principal of and interest on the
Loans, all payments in respect of LC Disbursements and all other amounts due to the Lenders hereunder, and promptly to distribute
to each Lender or Issuing Bank its proper share of each payment so received; (b) to give notice on behalf of each of the Lenders
to the Company of any Event of Default specified in this Agreement of which the Administrative Agent has actual knowledge acquired
in connection with its role as the Administrative Agent hereunder; and (c) to distribute to each Lender copies of all notices,
financial statements and other materials delivered by the Company or any other Loan Party pursuant to this Agreement or the other
Loan Documents as received by the Administrative Agent. Without limiting the generality of the foregoing, if all applicable mandatory
prepayments under Section 2.10(c) shall have been made or arrangements therefor satisfactory to the Administrative Agent shall
have been entered into, the Administrative Agent is hereby expressly authorized to release any Guarantor from its obligations hereunder
and under the other Loan Documents, in the event that all the capital stock of such Guarantor shall

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be sold, transferred or otherwise disposed of to a Person
that is not an Affiliate of the Company in a transaction permitted by Section 6.03.

With respect to any Loans made by it hereunder,
the Administrative Agent in its individual capacity and not as Administrative Agent shall have the same rights and powers as any
other Lender and may exercise the same as though it were not the Administrative Agent, and the Administrative Agent and its Affiliates
may accept deposits from, lend money to and generally engage in any kind of business with the Company or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent.

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 upon receipt of notice in writing by the Required Lenders (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section 10.02), and (c) except as expressly set forth
in the Loan Documents, the Administrative Agent shall have no duty to disclose, and the Administrative Agent shall not be liable
for the failure to disclose, any information relating to the Company or any of its Subsidiaries that is communicated to or obtained
by the institution 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 10.02) or in the absence
of its own gross negligence or wilful misconduct. The Administrative Agent shall not be deemed to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by the Company 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 thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein, (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 in any 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

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may consult with legal counsel (who may be counsel for the
Company), 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 Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection
with the syndication of the revolving credit facility provided for herein as well as activities as the 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 Banks and the Company. Upon any such resignation, the Required Lenders shall have the right, in consultation
with the Company, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Banks, 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. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 10.03 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.

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ARTICLE IX

Guarantee

In order to induce the Lenders to make
Loans hereunder and the Issuing Banks to issue the Letters of Credit, the Company hereby irrevocably and unconditionally guarantees,
as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations. The Company further
agrees that the Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that
it will remain bound upon its Guarantee hereunder notwithstanding any such extension or renewal of any Obligation. Each and every
default in payment of the principal of and premium, if any, or interest on any Obligation shall give rise to a separate cause of
action hereunder, and separate suits may be brought hereunder as each cause of action arises. The Company waives presentment to,
demand of payment from and protest to any Borrowing Subsidiary or any other Loan Party of any of the Obligations, and also waives
notice of acceptance of its guarantee and notice of protest for nonpayment.

The obligations of the Company hereunder
shall not be subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment
in full in cash of the Obligations), including any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality
or unenforceability of the Obligations, any impossibility in the performance of the Obligations or otherwise. Without limiting
the generality of the foregoing, the obligations of the Company hereunder shall not be affected by (a) the failure of any
Lender, any Issuing Bank, the Administrative Agent or any other Person to whom any of the Obligations are or shall be owed (collectively,
the “Guarantee Beneficiaries”) to assert any claim or demand or to enforce or exercise any right or remedy under
the provisions of this Agreement, any other Loan Document or otherwise, (b) any extension or renewal of any of the Obligations,
(c) any rescission, waiver, amendment or modification of, or release from any of the terms or provisions of, this Agreement,
any Borrowing Subsidiary Agreement, any other Loan Document or any other agreement, (d) any default, failure or delay, wilful
or otherwise, in the performance of the Obligations or (e) any other act, omission or delay to do any other act which may
or might in any manner or to any extent vary the risk of the Company or otherwise operate as a discharge of the Company as a matter
of law or equity (other than the indefeasible payment in full in cash of the Obligations) or which would impair or eliminate any
right of the Company to subrogation.

The Company further agrees that its guarantee
hereunder constitutes a guarantee of payment when due (whether or not any bankruptcy or similar proceeding shall have stayed the
accrual or collection of any of the Obligations or operated as a discharge thereof) and not merely of collection, and waives any
right to require that any resort be had by any Guarantee Beneficiary to any balance of any deposit account or credit on the books
of any Guarantee Beneficiary in favor of any Borrower, any other Loan Party or any other Person.

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To the fullest extent permitted by applicable
law, the Company waives any defense based on or arising out of any defense of any Borrower or any other Loan Party or the unenforceability
of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any Borrower or any
other Loan Party, other than the indefeasible payment in full in cash of all the Obligations. The Guarantee Beneficiaries may,
at their election, compromise or adjust any part of the Obligations, make any other accommodation with any Borrower or any other
Loan Party or exercise any other right or remedy available to them against any Borrower or any other Loan Party, without affecting
or impairing in any way the liability of the Company hereunder except to the extent the Obligations have been fully and indefeasibly
paid in cash. To the fullest extent permitted by applicable law, the Company waives any defense arising out of any such election
even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation
or other right or remedy of the Company against any Borrower or any other Loan Party, as the case may be.

The Company further agrees that its guarantee
hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any Obligation is rescinded or must otherwise be restored by any Guarantee Beneficiary upon the bankruptcy or reorganization of
any Borrower or otherwise.

In furtherance of the foregoing and not
in limitation of any other right that any Guarantee Beneficiary may have at law or in equity against the Company by virtue hereof,
upon the failure of any Borrowing Subsidiary or any other Loan Party to pay any Obligation when and as the same shall become due,
whether at maturity, by acceleration, after notice of prepayment or otherwise, the Company hereby promises to and will, upon receipt
of written demand by the Administrative Agent, forthwith pay, or cause to be paid, to the Administrative Agent for distribution
to the applicable Guarantee Beneficiaries in cash an amount equal to the sum of (i) the unpaid principal amount of such Obligations
then due, (ii) accrued and unpaid interest and fees on such Obligations and (iii) all other monetary Obligations then
due. The Company further agrees that if payment in respect of any Obligation shall be due in a currency other than US Dollars and/or
at a place of payment other than New York and if, by reason of any Change in Law, disruption of currency or foreign exchange
markets, war or civil disturbance or similar event, payment of such Obligation in such currency or at such place of payment shall
be impossible or, in the judgment of any Guarantee Beneficiary, not consistent with the protection of its rights or interests,
then, at the election of such Guarantee Beneficiary, the Company shall make payment of such Obligation in US Dollars (based upon
the applicable Exchange Rate in effect on the date of payment) and/or in New York, and shall indemnify such Guarantee Beneficiary
against any losses or expenses that it shall sustain as a result of such alternative payment.

Upon payment in full by the Company of
any Obligation, each Lender shall, in a reasonable manner, assign to the Company the amount of such Obligation owed to it and so
paid, such assignment to be pro tanto to the extent to which the Obligation in question was discharged by the Company,
or make such disposition thereof

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as the Company shall direct (all without recourse to any
Guarantee Beneficiary and without any representation or warranty by any Guarantee Beneficiary).

Upon payment by the Company of any sums
to the Administrative Agent as provided above, all rights of the Company against any Borrowing Subsidiary or any other Loan Party
arising as a result thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right
of payment to the prior indefeasible payment in full in cash of all the Obligations owed by such Borrowing Subsidiary or such other
Loan Party to the Guarantee Beneficiaries.

Nothing shall discharge or satisfy the
liability of the Company hereunder except the full performance and payment of the Obligations.

Each reference herein to any Guarantee
Beneficiary shall be deemed to include their or its successors and assigns, in whose favor the provisions of this Guarantee shall
also inure.

ARTICLE X

Miscellaneous

SECTION 10.01. Notices. Except in
the case of notices and other communications expressly permitted to be given by telephone, 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:

(a)
if to the Company or any Borrowing Subsidiary, to it, or to it in care of the Company, as the case may be, at 455 Patroon
Creek Blvd, Albany, New York, 12206, Attention of John Cozzolino, Chief Financial Officer  (Facsimile No. (518) 677-1097);

(b)
if to the Administrative Agent, as follows: (i) if such notice relates to a Loan or Borrowing denominated in US Dollars,
or does not relate to any particular Loan, Borrowing or Letter of Credit, to JPMorgan Chase Bank, N.A., Deal Management Team, Loan
and Agency Services Group, 10 South Dearborn, Floor L2, Chicago IL, 60603-2003, Attention:  Muoy Lim (Facsimile No. (888)
490-5665), with a copy to JPMorgan Chase Bank, N.A., 2300 Main Place Tower, Buffalo, NY 14202, Attention of Karen Mikols
(Facsimile No. (716) 843-4939); (ii) if such notice relates to a Loan or Borrowing denominated in Canadian Dollars,
to JPMorgan Chase Bank, N.A., Toronto Branch, 200 Bay Street, Suite 1800, Toronto, Ontario, Canada M5J 2J2, Attention of Patricia
Barcelona-Schuldt (Facsimile No. (844) 235-1788), with a copy to the address set forth in clause (i) of this paragraph (b); and
(iii) if such notice relates to a Loan or Borrowing denominated in an Alternative Currency other than Canadian Dollars,  to
J.P. Morgan Europe Limited, 25 Bank Street, Canary Wharf, London E14 5JP, United

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Kingdom, Attention of The Manager, Loan & Agency
Services (Facsimile No: 44 207 777 2360), with a copy to the address set forth in clause (i) of this paragraph (b);

(c)
if to the Swingline Lender, to JPMorgan Chase Bank, N.A., Deal Management Team, Loan and Agency Services Group, 10 South
Dearborn, Floor L2, Chicago IL, 60603-2003, Attention of Muoy Lim (Facsimile No. (888) 490-5665), with a copy to JPMorgan Chase
Bank, N.A., 12 Corporate Woods Boulevard, 4th Floor, Albany, New York 12211, Attention of Karen Mikols
(Facsimile No. (716) 843-4939);

(d)
if to JPMCB as Issuing Bank, to JPMorgan Chase Bank, N.A., Deal Management Team, Loan and Agency Services Group, 10 South
Dearborn, Floor 07, Chicago, IL, 60603-2003, Attention of Kathy M Giuseffi (Facsimile No. (312) 732-2729), with a copy to
JPMorgan Chase Bank, N.A., 12 Corporate Woods Boulevard, 4th Floor, Albany, New York 12211, Attention of Karen Mikols
(Facsimile No. (716) 843-4939);

(e)
if to any other Lender or Issuing Bank, to it at its address (or telecopy number) set forth in its Administrative Questionnaire
or Issuing Bank Agreement, as the case may be.

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 10.02. Waivers; Amendments.
(a) No failure or delay by the Administrative Agent, any 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 Banks and
the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they
would otherwise have. No waiver of any provision 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 paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing,
the 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 any 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, in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the

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Company and the Required Lenders or, in the case of any other
Loan Document, 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, in each case with the consent of the Required Lenders; provided that no such agreement
shall (i) increase any Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount
of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, provided that any amendment entered into pursuant to Section 2.13(b) shall not constitute
a reduction in any rate of interest or any fees based thereon, and provided further that, following the occurrence of the circumstances
described in Section 2.13(b), to the extent written notice of an objection to an amendment is received from the Required Lenders
within the time period specified in Section 2.13(b) only the consent of the Required Lenders shall be necessary amend this Agreement
to reflect an alternate rate of interest to the LIBOR Screen Rate and such other related changes to this Agreement as may be applicable,
(iii) postpone the date of any scheduled payment of the principal amount of any Loan or LC Disbursement, or 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 affected thereby, (iv) change Section 2.18(b) or (c) in a manner
that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender affected thereby,
(v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision of
any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any
rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (or each
Lender of such Class, as the case may be), (vi) release (A) the Company from its obligations as a Guarantor hereunder or (B) all
or substantially all the other Guarantors from their obligations under the Subsidiary Guarantee Agreement without the written consent
of each Lender, (vii) subordinate the Obligations to any other Indebtedness without the consent of each affected Lender, (viii)
change any provision of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments or
prepayments due to Lenders with Commitments or Obligations of any Class differently than those with Commitments or Obligations
of any other Class, without the written consent of Lenders holding a majority in interest of the Commitments and outstanding Loans
of the adversely affected Class, (ix) amend the definition of Alternative Currency or Global Tranche Borrower, or amend Section
2.20, without the written consent of each Global Tranche Lender or (x) amend the definition of Termination Date without the written
consent of each Lender; provided further that (A) no such agreement shall amend, modify or otherwise affect
the rights or duties of the Administrative Agent, any Issuing Bank or the Swingline Lender without the prior written consent of
the Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may be and (B) any waiver, amendment or modification
of this Agreement that by its terms affects the rights or duties under this Agreement of one Tranche (but not of the other Tranche)
may be effected by an agreement or agreements in writing entered into by the Company and requisite percentage in interest of the
affected Lenders under the applicable Tranche. Notwithstanding the foregoing, any provision of this Agreement may be amended by
an

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agreement in writing entered into by the Company, the Required
Lenders and the Administrative Agent (and, if their rights or obligations are affected thereby, the Issuing Banks and the Swingline
Lenders) if (i) by the terms of such agreement the applicable Commitment or Commitments of each Lender not consenting to the
amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such amendment
becomes effective, each Lender not consenting thereto receives payment in full of the principal of and interest accrued on each
Loan made by it and all other amounts owing to it or accrued for its account under this Agreement. Notwithstanding the foregoing
provisions of this paragraph (b), any provision of this Agreement or any other Loan Document may be amended by an agreement in
writing entered into by the Company and the Administrative Agent to cure any ambiguity, omission, defect or inconsistency so long
as, in each case, the Lenders shall have received at least five Business Days’ prior written notice thereof and the Administrative
Agent shall not have received, within five Business Days of the date of such notice to the Lenders, a written notice from the Required
Lenders stating that the Required Lenders object to such amendment.

SECTION 10.03. Expenses; Indemnity;
Damage Waiver. (a) The Borrowers agree, jointly and severally, to pay (i) all reasonable out-of-pocket expenses incurred
by the Arrangers, the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel
for the Arrangers and the Administrative Agent, in connection with the syndication of the revolving credit facilities provided
for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions
thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by any 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 reasonable out-of-pocket expenses incurred by the Administrative Agent, any
Issuing Bank or any Lender, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, any
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)
The Borrowers agree, jointly and severally, to indemnify each Arranger, the Administrative Agent, each 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 reasonable 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 any Loan Document or any other agreement
or instrument contemplated hereby or thereby, the performance by the parties to the Loan Documents of their respective obligations
thereunder or the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use
of the proceeds therefrom (including any

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refusal by an 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 the Company or any of its Subsidiaries, or any Environmental Liability related in any way to the Company or any of
its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing
(each a “Proceeding”), regardless of whether any Indemnitee is a party to a Proceeding, whether a Proceeding
is brought by a third party or by a Borrower or any of its Affiliates or whether a Proceeding is based on contract, tort or any
other theory; 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 negligence or wilful misconduct of such Indemnitee or a Related Party of such Indemnitee.

(c)
Each Revolving Lender severally agrees to the extent that the Borrowers fail to pay any amount required to be paid by them
to the Administrative Agent, any Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, to pay to
the Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may be, such Lender’s pro rata share (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, Issuing Bank or Swingline Lender in its capacity as such. For purposes hereof,
a Lender’s “pro rata share” shall be determined based upon its share of the sum of the total Revolving Credit
Exposures and unused Commitments at the time.

(d)
To the extent permitted by applicable law, the Borrowers shall not, and shall not permit their Subsidiaries to, 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. All amounts
due under this Section shall be payable promptly after written demand therefor.

(e)
Notwithstanding any reference in paragraph (a) or (b) of this Section to the joint and several liability of the Borrowers,
each Swiss Borrowing Subsidiary shall be liable under this Section 10.03 only for amounts attributable directly to such Swiss Borrowing
Subsidiary and its own direct or indirect Subsidiaries.

SECTION 10.04. 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 an Issuing Bank that issues any Letter of Credit), except that
(i) no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent
of each Lender (and any such attempted assignment or transfer by a Borrower or a Guarantor without such consent shall be null and
void) and (ii) no Lender may assign or

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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 an Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

(b)
(i) Subject to the conditions set forth in paragraph (b)(ii) of this Section, any Lender may assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment under
any Tranche and the Loans and other amounts at the time owing to it under any Tranche) with the prior written consent (such consent
not to be unreasonably withheld or delayed) of:

(A)
the Company; provided that the Company shall be deemed to have consented to any such assignment unless it shall object
thereto by written notice to the Administrative Agent within 10 Business Days after receiving notice thereof; and provided
further that no consent of the Company shall be required for an assignment to a Lender, an Affiliate of a Lender (if such
Affiliate is a Qualifying Bank) or, if an Event of Default has occurred and is continuing, any other assignee; and

(B)
the Administrative Agent and each Issuing Bank; provided that no consent of the Administrative Agent shall be required
for an assignment of any Commitment to an assignee that is a Lender or an Affiliate of a Lender with a Commitment immediately prior
to giving effect to such assignment.

(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 or 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 US$5,000,000 unless each of the Company and the Administrative
Agent otherwise consents; provided that no such consent of the Company shall be required if an Event of Default has occurred
and is continuing;

(B)
each partial assignment of a Commitment and extensions of credit under a Tranche shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under such Tranche;

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(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 US$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, the Loan Parties and their Related Parties or the Company’s 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.

(iii)
Subject to acceptance and recording thereof pursuant to paragraph (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 2.14, 2.16, 2.17 and 10.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section shall be treated for purposes of this Agreement as a sale by such Lender of a participation in
such rights and obligations in accordance with paragraph (c) of this Section.

(iv)
The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its
offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrowers, the Administrative Agent, the Issuing Banks and the Lenders may 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 any Borrower, any 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 paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register.
No assignment shall be effective for

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purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph.

(c)
(i) Any Lender may, without the consent of any Borrower, the Administrative Agent, any Issuing Bank or the Swingline Lender,
sell participations to one or more banks or other entities (each 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 under any Tranche and
the Loans and other amounts at the time owing to it under any Tranche); provided that (A) such Lender’s obligations
under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and (C) the Borrowers, the Administrative Agent, the Issuing Banks 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. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 2.17(e) with respect to
any payments made by such Lender to its Participants. Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification
or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 10.02(b)
that affects such Participant. Subject to clause (c)(ii) of this Section, each Borrower agrees that each Participant shall
be entitled to the benefits of Sections 2.14, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c)
as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent
of the Borrowers, maintain a register on which it enters the name and address of each Participant and the principal amounts (and
stated interest) of each participant’s interest in the Loans or other obligations under this Agreement (the “Participant
Register”). 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.

(i)
A Participant shall not be entitled to receive any greater payment under Section 2.14 or 2.17 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation
to such Participant is made with the Company’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 unless the applicable Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the applicable Borrower, to comply with Section 2.17(f)
as though it were a Lender.

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(ii)
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment
of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto;

(d)
Notwithstanding paragraphs (a), (b) and (c) of this Section, with respect to any Swiss Borrowing Subsidiary, each Global
Tranche Lender represents and warrants that:

(i)
it is and will remain a Qualifying Bank;

(ii)
it will not (within the meaning of paragraphs (a), (b) and (c) of this Section) (A) make any assignment of, (B) sell a participation
in, (C) pledge or assign a security interest in, or (D) otherwise transfer all or a portion of its rights and obligations under
a Global Tranche Commitment, a Loan to, or a participation in an LC Disbursement for the account of, any Swiss Borrowing Subsidiary,
in each case to a Person that (x) has not represented in writing that it is and will remain a Qualifying Bank and (y) agreed in
writing that it will not make further assignments, transfers, or sales of participations and sub-participations in any of such
interests and will not enter into any other arrangements under which it substantially transfers its rights and obligations under
this Agreement, other than to or with Persons who themselves represent in writing that they are and will remain Qualifying Banks
and agree to observe identical restrictions, except, in each case set forth above, with the prior written consent of the Company
and each Swiss Borrowing Subsidiary (such consent not to be unreasonably withheld, but it being understood that such consent will
be deemed reasonably withheld if such assignment would result in a breach of the Swiss Withholding Tax Rules). For the avoidance
of doubt, it shall be specified that nothing in the present paragraph shall prevent any Lender that is a creditor under a Global
Tranche Commitment, a Loan to, or a participation in a LC Disbursement for the account of, any Swiss Borrowing Subsidiary, to enter
into a participation or sub-participation agreement or any other arrangement with any Person that is not a Qualifying Bank, provided
that (A) under such agreement throughout the life of such arrangement (a) the relationship between the Lender and that other Person
is that of debtor and creditor (including in the bankruptcy or similar event of that Lender), (b) the other Person will have no
proprietary interest in any Loan to or LC Disbursement for the account of any Swiss Borrowing Subsidiary or in any monies received
by the Lender in relation to any Loan to or LC Disbursement for the account of any Swiss Borrowing Subsidiary held by that Lender,
and (c) the other Person will under no circumstances (other than by way of permitted transfer under paragraph (b)(ii)(C) of this
Section) be subrogated to, or substituted in respect of, the Lender’s claims under any Loan to or LC Disbursement for the
account of any Swiss Borrowing Subsidiary or otherwise have any contractual relationship with, or rights against, the Swiss Borrowing
Subsidiary under or in relation to, any

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Loan to or LC Disbursement for the account of any Swiss
Borrowing Subsidiary and (B) any such participation, sub-participation, or arrangement would not result in a relevant participation
and/or sub-participation for the purposes of the Swiss Withholding Tax Rules.

(e)
Notwithstanding any other provision of this Section 10.04, all assignments and purchases of rights and obligations under
this Agreement (including portions of Commitments and Loans under any Tranche) following an Event of Default with respect to the
Company under Section 7.01(h) or (i), if consented to by the Administrative Agent or made pursuant to an agreement to which the
Administrative Agent is a party, will constitute permitted assignments under paragraph (b) of this Section, will not be subject
to any of the other restrictions or conditions set forth in such paragraph (b), will be recognized and given effect for all purposes
of this Agreement and will not require any consent of the Company or any other Borrower. Each Borrower and each Lender agrees from
time to time to execute and deliver to the Administrative Agent all such promissory notes and other instruments and documents as
the Administrative Agent shall reasonably request to evidence and confirm the respective interests and obligations of the Lenders
after giving effect to any such assignments, and each Lender agrees to surrender any promissory notes originally received by it
hereunder to the Administrative Agent against delivery of any promissory notes so executed and delivered; provided that
the failure of any Borrower to execute or deliver or of any Lender to accept any such promissory note, instrument or document shall
not affect the validity or effectiveness of any such assignments.

SECTION 10.05. 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 Document shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, any 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 in full. The provisions of Sections 2.14,
2.16, 2.17 and 10.03 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 10.06. 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
and the other Loan Documents constitute the entire contract among the parties relating to the subject matter

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hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof (but do not supersede the provisions of any fee letter or
any provisions of any commitment letter that by the terms of such document survive the execution and delivery of this Agreement).
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 facsimile or other
electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 10.07. 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.

SECTION 10.08. 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 set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or
for the credit or the account of any Borrower against any of and all the obligations of the Borrowers at the time existing under
this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and
remedies (including any other rights of setoff) which such Lender may have.

SECTION 10.09. Governing Law; Jurisdiction;
Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State
of New York.

(b)
Each Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive 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 any Loan Document, 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 or any other Loan Document shall affect any right that the Administrative Agent,
any Issuing

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Bank or any Lender may otherwise have to bring any action
or proceeding relating to this Agreement or any other Loan Document against any Borrower or its 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 Document in any court referred to in paragraph (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 10.01.
Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any
other manner permitted by law.

SECTION 10.10. 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 10.11. 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 10.12. Confidentiality.
(a) The Administrative Agent, each Issuing Bank and each Lender 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

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any other Loan Document or the enforcement of rights hereunder
or thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section, to any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
(vii) with the consent of the Company 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, any Issuing Bank or any
Lender on a nonconfidential basis from a source other than the Company. For the purposes of this Section, “Information”
means all information received from the Company relating to the Company or its business, other than (i) any such information that
is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the
Company and (ii) information pertaining to this Agreement routinely provided by arrangers to data service providers, including
league table providers, that serve the lending industry. 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 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 furnished to it pursuant to this Agreement may include material non-public
information concerning the Borrowers and their Related Parties or the Company’s 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 the Company’s securities. Accordingly, each
Lender represents to the Borrower 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, including Federal and state securities laws.

SECTION 10.13. Conversion of Currencies.
(a) If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into
another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased
with such other currency on the Business Day immediately preceding the day on which final judgment is given.

(b)
The obligations of each party hereto in respect of any sum due to any other party hereto or any holder of the obligations
owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement

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Currency”), be discharged only to the extent
that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency,
the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction 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 Applicable
Creditor in the Agreement Currency, such party agrees, as a separate obligation and notwithstanding any such judgment, to indemnify
the Applicable Creditor against such loss. The obligations of the parties contained in this Section shall survive the termination
of this Agreement and the payment of all other amounts owing hereunder.

SECTION 10.14. Interest Rate Limitation.
Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees,
charges and other amounts 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 10.15. U.S.A. PATRIOT Act.
Each Lender and each Issuing Bank hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information
that will allow such Lender or Issuing Bank, as the case may be, to identify the Borrowers in accordance with the Act.

SECTION 10.16. No Fiduciary Relationship.
The Company, on behalf of itself and the Subsidiaries, agrees that in connection with all aspects of the transactions contemplated
hereby and any communications in connection therewith, the Borrower, the Subsidiaries and their Affiliates, on the one hand, and
the Administrative Agent, the Lenders, the Issuing Banks and their Affiliates, on the other hand, will have a business relationship
that does not create, by implication or otherwise, any fiduciary duty on the part of the Administrative Agent, the Lenders, the
Issuing Banks or their Affiliates, and no such duty will be deemed to have arisen in connection with any such transactions or communications.

SECTION 10.17. Non-Public Information.
(a) Each Lender acknowledges that all information, including requests for waivers and amendments, furnished by any Borrower or
the Administrative Agent pursuant to or in connection with, or in the course of administering, this Agreement will be syndicate-level

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information, which may contain MNPI. Each Lender represents
to each Borrower and the Administrative Agent that (i) it has developed compliance procedures regarding the use of MNPI and that
it will handle MNPI in accordance with such procedures and applicable law, including Federal, state and foreign securities laws,
and (ii) it has identified in its Administrative Questionnaire a credit contact who may receive information that may contain MNPI
in accordance with its compliance procedures and applicable law, including Federal, state and foreign securities laws.

(b)
Each Borrower and each Lender acknowledge that, if information furnished by any Borrower pursuant to or in connection with
this Agreement is being distributed by the Administrative Agent through IntraLinks/IntraAgency, SyndTrak or another website or
other information platform (the “Platform”), (i) the Administrative Agent may post any information that such
Borrower has indicated as containing MNPI solely on that portion of the Platform as is designated for Private Side Lender Representatives
and (ii) if any Borrower has not indicated whether any information furnished by it pursuant to or in connection with this Agreement
contains MNPI, the Administrative Agent shall post such information solely on that portion of the Platform as is designated for
Private Side Lender Representatives.

(c)
Each Borrower agrees to specify whether any information furnished by such Borrower to the Administrative Agent pursuant
to, or in connection with, this Agreement contains MNPI.

SECTION 10.18. Securities Principles.
Notwithstanding anything herein or the other Loan Documents to the contrary, with respect to all Loan Documents, (i) a Foreign
Person shall not directly or indirectly make any guarantee or pledge any assets to support an Obligation of a U.S. Person and (ii)
payments by Foreign Persons under the Loan Documents (including pursuant to Sections 2.05, 2.11, 2.18, 10.03 and 10.08 hereunder)
shall satisfy the Obligations only of Foreign Persons and shall be limited to the aggregate Obligations of Foreign Persons, and
shall not satisfy any Obligations of U.S. Persons.

SECTION 10.19. Acknowledgement and Consent
to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement,
arrangement or understanding among the parties hereto, each party hereto acknowledges that any liability of any EEA Financial Institution
arising under any Loan Document, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees
and consents to, and acknowledges and agrees to be bound by:

(a)
the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any party hereto that is an EEA Financial Institution; and

(b)
the effects of any Bail-in Action on any such liability, including, if applicable:

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(i)
a reduction in full or in part or cancellation of any such liability;

(ii)
a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial
Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares
or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

(iii)
the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of
any EEA Resolution Authority.

 

[Signature pages follow]

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IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	albany international corp.,
	By: /s/ John B. Cozzolino
	 	Name:	John B. Cozzolino
	 	Title:	Chief Financial Officer and Treasurer
	 	 	 
	albany international HOLDING (Switzerland) AG,
	By: /s/ Daniel Halftermeyer
	 	Name:	Daniel Halftermeyer
	 	Title:	Managing Director &

 President
	 	 	 
	By: /s/ Charles J. Silva, Jr.
	 	Name:	Charles J. Silva, Jr.
	 	Title:	Director
	 	 	 
	albany international 

EUROPE GMBH,
	By: /s/ Daniel Halftermeyer
	 	Name:	Daniel Halftermeyer
	 	Title:	Managing Director
	 	 	 
	albany international CANADA

 corp.,
	By: /s/ John B. Cozzolino
	 	Name:	John B. Cozzolino
	 	Title:	President

 

 

[Signature Page to Amended and Restated Five-Year
Revolving Credit Facility Agreement]

 

    
 

     

    

 

	 	 	 
	jpmorgan chase bank, n.a.,
	as
Administrative Agent, a
Lender, the

Swingline Lender and
an Issuing bank,
	By: /s/ Karen L. Mikols
	 	Name:	Karen L. Mikols
	 	Title:	Vice President
	 	 	 
	 	 	 
	jpmorgan chase bank, n.a., 

Toronto Branch,
	By: /s/ Michael N. Tam
	 	Name:	Michael N. Tam
	 	Title:	Senior Vice President
	 	 	 	 	 

 

 

 

 

 

 

[Signature Page to Amended and Restated Five-Year
Revolving Credit Facility Agreement]

 

 

 

 

 

 

 

    
 

     

    

SIGNATURE PAGE TO

ALBANY INTERNATIONAL CORP.

AMENDED AND RESTATED FIVE-YEAR REVOLVING CREDIT

FACILITY AGREEMENT

 

 

 

Name of Lender:

Bank of America, N.A.

 

	 	By:	/s/ Donald K Bates
	 	Name: Donald K Bates
	 	Title: SVP

 

 

Name of Lender:

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

 

	 	By:	/s/ Mustafa Khan
	 	Name: Mustafa Khan
	 	Title: Director

 

 

Name of Lender:

Wells Fargo Bank, National Association

 

	 	By:	/s/ Margaret Nolan
	 	Name: Margaret Nolan
	 	Title: Senior Vice President

 

 

Name of Lender:

Branch Banking and Trust Company

 

	 	By:	/s/ Jeff Skalka
	 	Name: Jeff Skalka
	 	Title: Vice President

 

 

Name of Lender:

Citizens Bank, N.A.

 

	 	By:	/s/ Donald A. Wright
	 	Name: Donald A. Wright
	 	Title: SVP

 

    
 

     

    

 

Name of Lender:

TD Bank, N.A.

 

	 	By:	/s/ Michele Dragonetti
	 	Name: Michele Dragonetti
	 	Title: Senior Vice President

 

 

Name of Lender:

Nordea Bank AB (publ) New York Branch

 

	 	By:	/s/ Henrik M. Steffensen
	 	Name: Henrik M. Steffensen
	 	Title: Executive Vice President

 

 

	 	By:	/s/ Leena Parker
	 	Name: Leena Parker
	 	Title: Senior Vice President

 

 

Name of Lender:

KeyBank National Association

 

	 	By:	/s/ Schuyler Tilly
	 	Name: Schuyler Tilly
	 	Title: Vice President

 

 

 

 

[Signature Page to Amended and Restated Five-Year
Revolving Credit Facility Agreement]Exhibit 10.1

AMENDED & RESTATED

MASTER REPURCHASE AGREEMENT

Dated as of November 1, 2017

among

KREF LENDING III LLC

 

AND

 

KREF LENDING III TRS LLC

as Sellers,

and

GOLDMAN SACHS BANK USA,

 

as Buyer

 

TABLE OF CONTENTS

	 	 	
Page

	
1.

	
APPLICABILITY

	
1

	
2.

	
DEFINITIONS

	
1

	
3.

	
INITIATION; CONFIRMATION; TERMINATION; REPURCHASE & PAYMENTS; OTHER EVENTS

	
24

	
4.

	
MARGIN MAINTENANCE

	
34

	
5.

	
INCOME PAYMENTS AND PRINCIPAL PAYMENTS

	
36

	
6.

	
SECURITY INTEREST

	
38

	
7.

	
PAYMENT, TRANSFER AND CUSTODY

	
39

	
8.

	
SALE, TRANSFER, HYPOTHECATION OR PLEDGE OF PURCHASED LOANS

	
42

	
9.

	
INTENTIONALLY OMITTED

	
43

	
10.

	
REPRESENTATIONS

	
43

	
11.

	
NEGATIVE COVENANTS OF SELLERS

	
46

	
12.

	
AFFIRMATIVE COVENANTS OF SELLERS

	
47

	
13.

	
SINGLE-PURPOSE ENTITY

	
51

	
14.

	
EVENTS OF DEFAULT; REMEDIES

	
53

	
15.

	
SINGLE AGREEMENT

	
57

	
16.

	
RECORDING OF COMMUNICATIONS

	
58

	
17.

	
NOTICES AND OTHER COMMUNICATIONS

	
58

	
18.

	
ENTIRE AGREEMENT; SEVERABILITY

	
58

	
19.

	
NON-ASSIGNABILITY

	
58

	
20.

	
GOVERNING LAW

	
59

	
21.

	
NO WAIVERS, ETC.

	
60

	
22.

	
USE OF EMPLOYEE PLAN ASSETS

	
60

	
23.

	
INTENT

	
60

	
24.

	
DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

	
62

	
25.

	
CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

	
62

	
26.

	
NO RELIANCE

	
63

	
27.

	
INDEMNITY

	
64

	
28.

	
DUE DILIGENCE

	
64

	
29.

	
SERVICING

	
65

	
30.

	
MISCELLANEOUS

	
66

	
31.

	
TAXES

	
67

	
32.

	
CONFIDENTIALITY

	
69

	
33.

	
JOINT AND SEVERAL OBLIGATIONS

	
70

 

This AMENDED & RESTATED MASTER REPURCHASE AGREEMENT, dated as of November 1, 2017, is by and among KREF LENDING III LLC, a Delaware limited liability company (together with its successors and permitted assigns, “QRS Seller”), KREF LENDING III TRS LLC, a Delaware limited liability company (together with its successors and permitted assigns, “TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”) and GOLDMAN SACHS BANK USA, a New York chartered bank (together with its successors and permitted assigns, “Buyer”), and amends and restates that certain Master Repurchase Agreement dated as of September 30, 2016 by and among QRS Seller, TRS Seller and Buyer.

 

	1.	
APPLICABILITY

 

From time to time during the Swingline Availability Period, the parties hereto may enter into transactions in which Sellers agree to transfer to Buyer Swingline Purchased Loans against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to the applicable Seller such Swingline Purchased Loans at a date certain, against the transfer of funds by such Seller.  Each such transaction shall be referred to herein as a “Swingline Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any exhibits identified herein as applicable hereunder.  Further, From time to time during the Term Availability Period, the parties hereto may enter into transactions in which Sellers agree to transfer to Buyer Term Purchased Loans against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to the applicable Seller such Term Purchased Loans at a date certain, against the transfer of funds by such Seller.  Each such transaction shall be referred to herein as a “Term Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any exhibits identified herein as applicable hereunder.

 

	2.	
DEFINITIONS

 

“1934 Act” has the meaning specified in Section 24(a).

 

“A&R Closing Date” means the date hereof.

 

“Accelerated Repurchase Date” has the meaning specified in Section 14(b)(i).

 

“Acceptable Attorney” means Paul Hastings LLP, Arnold & Porter Kaye Scholer LLP, any law firm identified on the AmLaw Top 100, or any other attorney-at-law or law firm acceptable to Buyer in its sole discretion.

 

“Accepted Servicing Practices” has the meaning given thereto in the Servicing Agreement.

 

“ACM” has the meaning specified in Exhibit VI.

 

“Act of Insolvency” means with respect to any party, (i) the commencement by such party as debtor of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, moratorium, dissolution, delinquency or similar law, or such party seeking the appointment or election of a receiver, conservator, trustee, custodian or similar official for such party or any substantial part of its property, or the convening of any meeting of creditors for purposes of commencing any such case or proceeding or seeking such an appointment or election, (ii) the commencement of any such case or proceeding against such party, or the seeking of such an appointment or election, or the filing against a party of an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970, which (A) is consented to or not timely contested by such party, (B) results in the entry of

 

an order for relief, such an appointment or election, the issuance of such a protective decree or the entry of an order having a similar effect, or (C) is not dismissed within 30 days, (iii) the making by such party of a general assignment for the benefit of creditors, or (iv) the admission in writing by such party of such party’s inability to pay such party’s debts as they become due.

 

“Affiliate” means (a) when used with respect to QRS Seller, TRS Seller, Guarantor, Pledgor, REIT or Manager, any Subsidiary of KKR & Co. L.P. that is also a direct or indirect parent of QRS Seller or TRS Seller, and (b) when used with respect to any other specified Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with, such Person.

 

“Agreement” means this Amended & Restated Master Repurchase Agreement, dated as of the A&R Closing Date, by and among QRS Seller, TRS Seller and Buyer, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Alternative Rate” has the meaning specified in Section 3(g).

 

“Alternative Rate Transaction” means any Transaction with respect to which the Pricing Rate for is determined with reference to the Alternative Rate.

 

“Annual Reporting Package” means consolidated audited financial statements of REIT, prepared by a nationally recognized independent certified public accounting firm and presented fairly in accordance with GAAP and accompanied by an unqualified report of the nationally recognized independent certified public accounting firm that prepared them or, if such financial statements being delivered have been filed with the SEC pursuant to the requirements of the 1934 Act, or similar state securities laws, presented in accordance with applicable statutory and/or regulatory requirements and delivered to Buyer within the same time frame as are required to be filed in accordance with such applicable statutory and/or regulatory requirements, in either case accompanied by a compliance certificate, including, with respect to the REIT, a statement of operations and a statement of changes in cash flows for such annual period and statement of net assets as of the end of such annual period and evidencing financial covenant compliance (it being understood that such REIT financial statements shall include Guarantor’s, Pledgor’s, QRS Seller’s and TRS Seller’s financial information, as consolidated into REIT’s financial statements).

 

“Applicable Spread” has the meaning given thereto in the Fee Agreement.

 

“Appraisal” means a FIRREA compliant appraisal of the related Mortgaged Property (containing therein reliance language for the benefit of Buyer or for which the applicable Seller has obtained reliance for the benefit of Buyer) in form and substance reasonably satisfactory to Buyer, that is signed by an appraiser who is duly licensed and/or certified and authorized, as necessary and applicable, to provide appraisal services in the state where the Mortgaged Property is located and who, to the applicable Seller’s knowledge, had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor or in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Purchased Loan, and that contains representations from such appraiser (whether in such appraisal or in a supplemental letter) that the appraisal satisfies the requirements of the “Uniform Standards of Professional Appraisal Practice” as adopted by the Appraisal Standards Board of the Appraisal Foundation, that the appraisal is compliant with the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute and that the appraisal was performed in accordance with the requirements of FIRREA, as in effect on the date of such appraisal.

 

2

“Assignment Documents in Blank” means, for each Purchased Loan, the (i) allonge in blank, (ii) omnibus assignment in blank, (iii) Assignment of Mortgage in blank, and (iv) if the Assignment of Leases is not contained in the Mortgage and is a separate document, assignment of Assignment of Leases in blank.

 

“Assignment of Leases” means, with respect to any Mortgage, an assignment of leases thereunder, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the Mortgaged Property is located to reflect the assignment of leases, subject to the terms, covenants and provisions of this Agreement.

 

“Assignment of Mortgage” means, with respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment and pledge of the Mortgage, subject to the terms, covenants and provisions of this Agreement.

 

“Attorney’s Bailee Letter” means a letter from an Acceptable Attorney, in form and substance reasonably acceptable to Buyer, wherein such Acceptable Attorney in possession of a Purchased Loan File (i) acknowledges receipt of such Purchased Loan File (other than the recordable documents delivered to the applicable title agent), (ii) confirms that such Acceptable Attorney is holding the same as bailee of Buyer under such letter and (iii) agrees that such Acceptable Attorney shall deliver such Purchased Loan File to the Custodian by not later than the third (3rd) Business Day following the Purchase Date for the related Purchased Loan.

 

“Authorized Representative” means the duly authorized representatives of Sellers listed on, and true signatures of such authorized representatives are set forth on, Exhibit II.

 

“Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101, et seq.), as amended, modified or replaced from time to time.

 

“Blocked Account Agreement” means that certain Deposit Account Control Agreement dated as of October 20, 2016 among Buyer, QRS Seller, TRS Seller and the Depository, relating to the Waterfall Account, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Business Day” means a day other than (i) a Saturday or Sunday, or (ii) a day in which the New York Stock Exchange or banks in the State of New York are authorized or obligated by law or executive order to be closed.  When used with respect to determining LIBOR, “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in London, England are closed for interbank or foreign exchange transactions.

 

“Buyer” has the meaning specified in the first paragraph of this Agreement.

 

“Buyer LTV” means, as of any date of determination and for each Transaction, a ratio, expressed as a percentage, of (i) the then outstanding Purchase Price of such Transaction, to (ii) the value of the underlying Mortgaged Property related to such Transaction as determined by Buyer in its sole discretion (whether such value was determined prior to the Purchase Date of such Transaction or re-determined by Buyer in accordance with this Agreement).

 

3

“Buyer LTV Maximum” means, as of any date of determination and for each Transaction, the percentage set forth as the “Buyer LTV Maximum” in the Confirmation related to such Transaction, which shall be determined and redetermined in accordance with Section 3(b) and which, for each period set forth in the Confirmation for the Buyer LTV Maximum, shall equal (i) the Buyer LTV Target for that period, plus (ii) five (5) percentage points.

 

“Buyer LTV Target” means, as of any date of determination and for each Transaction, the percentage set forth as the “Buyer LTV Target” in the Confirmation related to such Transaction, which shall be determined and redetermined in accordance with Section 3(b) and which, for each period set forth in the Confirmation for the Buyer LTV Target, shall equal (i) the result, expressed as a percentage, of (A) the then outstanding principal amount of the related Purchased Loan, divided by (B) the then value of the underlying Mortgaged Property related to such Transaction as determined by Buyer in its sole discretion, multiplied by (ii) the Maximum Purchase Price Rate applicable to such period.

 

“CAM” has the meaning specified in Exhibit VI.

 

“Capital Lease Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) property to the extent such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP.

 

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent equity ownership interests in a Person which is not a corporation, including, without limitation, any and all member or other equivalent interests in any limited liability company, and any and all warrants or options to purchase any of the foregoing.

 

“Certified Operating Histories” has the meaning specified in Exhibit VI.

 

“Change of Control” means any of the following events shall have occurred without the prior approval of Buyer:

 

(i)          the consummation of a merger or consolidation of REIT or Guarantor with or into another entity or any other reorganization if more than fifty percent (50%) of the combined voting power of the continuing or surviving entity’s stock or other ownership interest in such entity outstanding immediately after such merger, consolidation or such other reorganization is not owned directly or indirectly by Persons who were stockholders or holders of such other ownership interests in REIT or Guarantor immediately prior to such merger, consolidation or other reorganization;

 

(ii)         any “person” or “group” (within the meaning of Section 13(d) or 14(d) of the 1934 Act) shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the 1934 Act), directly or indirectly, of a percentage of the total voting power of all classes of Capital Stock of Guarantor or REIT entitled to vote generally in the election of directors, members or partners of forty-nine percent (49%) or more, other than Controlled Affiliates or to the extent such interests are obtained through a public market offering or secondary market trading;

 

4

(iii)        with respect to Pledgor, Guarantor shall (i) cease to own and Control, of record and beneficially, directly or indirectly one hundred percent (100%) of the outstanding Capital Stock of Pledgor;

 

(iv)       with respect to Sellers, Pledgor shall cease to own, of record and beneficially, directly, one hundred percent (100%) of the outstanding Capital Stock of Sellers and to Control Sellers;

 

(v)        with respect to Guarantor, a transfer of all or substantially all of Guarantor’s assets; or

 

(vi)       with respect to Manager, (i) Manager ceases to be a Controlled Affiliate, (ii) the sale, merger, consolidation or reorganization of Manager with or into any entity that is not a Controlled Affiliate as of the A&R Closing Date, or (iii) the Management Agreement is terminated; provided, for the avoidance of doubt, that the transfer of Manager’s rights and obligations under the Management Agreement to a replacement manager that is another Controlled Affiliate shall not be considered a Change of Control.

 

“Clean-Up Period” means either (i) if, in conjunction with the exercise of the Term Amortization Period Option, the Sellers have elected to permanently reduce the Maximum Purchase Price in accordance with Section 3(r) and the definition of Maximum Purchase Price Rate, the period between the one (1) year anniversary of the Term Availability Period End Date and the Term Maturity Date, or (ii) if, in conjunction with the exercise of the Term Amortization Period Option, the Sellers have not elected to permanently reduce the Maximum Purchase Price in accordance with Section 3(r) and the definition of Maximum Purchase Price Rate, the period between the Term Availability Period End Date and the Term Maturity Date.

 

“Clean-Up Repurchase Notice” has the meaning specified in Section 3(s).

 

“Code” means The Internal Revenue Code of 1986 and the regulations promulgated and rulings issued thereunder, in each case as amended, modified or replaced from time to time.

 

“Collateral” has the meaning specified in Section 6.

 

“Concentration Limit Amount” means the sum of each of the following, calculated without duplication by Buyer in its sole discretion:

 

(i)          the positive result, if any, of (A) the aggregate Purchase Prices of all Transactions collateralized by real estate categorized as any one Eligible Property Type (other than “hotel property” and “retail”), minus (B) an amount equal to 60% of the sum of (1) the Swingline Facility Amount, plus (2) the Term Facility Amount; plus

 

(ii)         the positive result, if any, of (A) the aggregate Purchase Prices of all Transactions collateralized by real estate categorized as “hotel property”, minus (B) an amount equal to 35% of the sum of (1) the Swingline Facility Amount, plus (2) the Term Facility Amount; plus

 

5

(iii)        the positive result, if any, of (A) the aggregate Purchase Prices of all Transactions collateralized by real estate categorized as “retail”, minus (B) an amount equal to 35% of the sum of (1) the Swingline Facility Amount, plus (2) the Term Facility Amount.

 

“Concentration Limit Event” means, at any time, the Concentration Limit Amount exceeds (0) zero.

 

“Concentration Limit Payment Notice” has the meaning specified in Section 3(o).

 

“Confidential Information” means all information disclosed to one party to this Agreement by the other party to this Agreement in written, verbal, graphic, recorded, photographic, or any other form about such Disclosing Party and its business (including, without limitation, business partners and suppliers, financial statements, intellectual property rights, products, research and development, costing, licensing and pricing), disclosed in writing, verbally or visually and designated as confidential at the time of disclosure or of a nature that a reasonable person would consider the information confidential; provided that “Confidential Information” shall not include information disclosed by a Disclosing Party: (a) that is already known by the Recipient thereof without an obligation of confidentiality, (b) that is publicly known or becomes publicly known through no unauthorized act of the Recipient thereof, (c) that is rightfully received from a third party without any obligation of confidentiality, (d) that is independently developed by the Recipient thereof without use of the information disclosed by the Disclosing Party, or (e) that is approved by the Disclosing Party for disclosure.

 

“Confirmation” has the meaning specified in Section 3(b), and includes any “Confirmation” entered into in replacement of a Confirmation.

 

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

 

“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract and “Controlling” and “Controlled” shall have meanings correlative thereto.

 

“Controlled Affiliate” means any entity that is majority-owned and Controlled by KKR & Co. L.P.

 

“Controlling Owner” has the meaning specified in Exhibit VI.

 

“Credit Event” means, with respect to any Purchased Loan, the occurrence of any of the following events: (i) an Act of Insolvency with respect to the Mortgagor, sponsor(s) or other obligor with respect to such Purchased Loan or any failure of the Mortgagor, sponsor(s) or obligor with respect to such Purchased Loan to meet any minimum financial standards set forth in the related Purchased Loan Documents, (ii) an event, or existence of any circumstance, relating to the Mortgaged Property collateralizing such Purchased Loan that has had or could reasonably be expected to have a material change on the value, operations, or cash-flows of such Mortgaged Property or interests therein as determined by Buyer in its sole discretion, or (iii) any material changes relative to the performance or condition of the commercial real estate market for the same asset-type in the relevant jurisdiction relating to the Mortgaged Property collateralizing such Purchased Loan that adversely impacts the value of such Purchased Loan as determined by Buyer in its sole good faith discretion. The occurrence of a monetary or material non-monetary default beyond all applicable notice, grace and cure periods by the

 

6

Mortgagor, sponsor(s) or obligor with respect to such Purchased Loan shall be considered a Credit Event.

 

“Custodial Agreement” means the Custodial Agreement, dated as of the Original Closing Date, by and among the Custodian, QRS Seller, TRS Seller and Buyer, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Custodial Delivery” means the form executed by the applicable Seller in order to deliver the Purchased Loan Schedule and the Purchased Loan File to Buyer or its designee (including the Custodian) pursuant to Section 7(b), in the form of Exhibit III.

 

“Custodian” means Wells Fargo Bank, National Association, or any successor Custodian appointed by Buyer with the prior written consent of Sellers (which consent shall not be unreasonably withheld or delayed).

 

“Default” means any event which, with the giving of notice, the passage of time, or both, would constitute an Event of Default.

 

“Defaulted Loan Repurchase Notice” has the meaning specified in Section 3(m).

 

“Depository” means Wells Fargo Bank, National Association, or any successor Depository appointed by Seller with the prior written consent of Buyer.

 

“Disclosing Party” has the meaning specified in Section 32.

 

“Due Diligence Package” means (i) the Loan Asset Summary Report, (ii) the items on the Eligible Loan Due Diligence Checklist, in each case to the extent applicable, and (iii) such other documents, certifications or information as Buyer or its counsel shall reasonably deem necessary.

 

“Early Repurchase Date” has the meaning specified in Section 3(d).

 

“Eligible Loan Due Diligence Checklist” means the due diligence materials set forth in Exhibit IV.

 

“Eligible Loans” means senior performing floating rate mortgage loans secured by commercial real estate (“Whole Loans”) and other related debt products, each of which have been approved by Buyer in its sole discretion as a Purchased Loan, and, unless waived by Buyer in writing, shall:

 

(i)          be collateralized by a Mortgage on commercial real estate that is an Eligible Property Type;

 

(ii)         conform to the applicable Seller’s underwriting guidelines, which shall have been approved by Buyer in Buyer’s sole discretion and which shall not have been amended without Buyer’s consent, which consent may be provided or withheld in Buyer’s sole discretion;

 

(iii)        have an Origination Date LTV of not more than 75% (or, with the agreement of Buyer in its sole discretion, 80%) based on the Appraisal obtained in connection with origination;

 

(iv)        not, if purchased hereunder and consequently categorized as a Purchased Loan, result in a Concentration Limit Event;

 

7

(v)        not be related to any mezzanine loan unless Buyer shall have determined, in Buyer’s sole discretion, that the mezzanine loan and the related intercreditor agreement is in acceptable form;

 

(vi)       not, as of the Purchase Date therefor, have a Purchase Price (a) greater than an amount equal to 35% of the sum of (A) the Swingline Facility Amount, plus (B) the Term Facility Amount, nor (b) less than $10,000,000.

 

“Eligible Property Type” means (i) office property, (ii) retail property , (iii) industrial property, (iv) hotel property or (v) multifamily property (or mixed-use of any of the foregoing property types) located in the United States, and in all cases, expressly excludes any property under ground-up construction or any property that is vacant land, whether or not such ground-up construction property or vacant land may relate to or could otherwise be catergorized as any of the property types set forth in clauses (i) through (v) of this definition.

 

“Environmental Law” means, any federal, state, foreign or local statute, law, rule, regulation, ordinance, code, guideline, written policy and rule of common law now or hereafter in effect and in each case as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating to the environment, employee health and safety or Hazardous Materials, including, without limitation, CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the Emergency Planning the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et seq.; the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et seq.; and the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; and any state and local or foreign counterparts or equivalents, in each case as amended from time to time.

 

“Environmental Conditions” has the meaning specified in Exhibit VI.

 

“Environmental Insurance Policy” has the meaning specified in Exhibit VI.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.  Section references to ERISA are to ERISA, as in effect on the A&R Closing Date and, as of the relevant date, any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) which is a member of the same controlled group of corporations or group of trades or businesses under common control with QRS Seller, TRS Seller, Guarantor or Pledgor, or is treated as a single employer together with QRS Seller, TRS Seller Guarantor or Pledgor under Section 414 of the Code or Title IV of ERISA.

 

“ESA” has the meaning specified in Exhibit VI.

 

“Event of Default” has the meaning specified in Section 14(a).

 

“Excluded Taxes” means, any of the following Taxes imposed on or with respect to payment to Buyer or required to be withheld or deducted from such payment,  (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, Taxes imposed on or measured by net worth (however denominated) and branch profits Taxes, in each case, (i) imposed as a result of Buyer being

 

8

organized under the laws of, or having its principal office or the office from which it books the Transactions located in, the jurisdiction imposing such Taxes (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of Buyer with respect to an interest in the Transactions pursuant to a law in effect on the date on which such Party (i) acquires such interest in the Transactions, (ii) changes its principal office or the office from which it books the Transactions, except in each case to the extent that, pursuant to Section 31, amounts with respect to such Taxes were payable either to such Buyer’s assignor immediately before such Buyer became a party hereto or to such Buyer immediately before it changed the office from which it books the Transactions, (c) Taxes attributable to Buyer’s failure to comply with Section 31, (d) Taxes attributable to Buyer’s failure to comply with its obligations under Section 23(i), and (e) any U.S. federal withholding Taxes imposed under FATCA.

 

“Exit Fee” has the meaning given thereto in the Fee Agreement.

 

“Extension Fee” has the meaning given thereto in the Fee Agreement.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the A&R Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Federal Funds Rate” means, for any day, the weighted average 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 of the quotations for the day of such transactions received by Buyer from three federal funds brokers of recognized standing selected by it; provided, that such selected brokers shall be the same brokers selected for all of Buyer’s other commercial real estate mortgage loan repurchase facilities to which the Federal Funds Rate is to be applied, to the extent such brokers are available.

 

“Fee Agreement” means that certain Amended & Restated Fee Letter, dated as of the A&R Closing Date, among QRS Seller, TRS Seller and Buyer, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Filings” has the meaning specified in Section 6.

 

“FIRREA” means the Financial Institutions, Reform, Recovery and Enforcement Act of 1989.

 

“Future Funding Date” has the meaning specified in Section 3(c).

 

“Future Funding Draw Fee” has the meaning given thereto in the Fee Agreement.

 

“Future Funding Loan” means any Purchased Loan with respect to which less than the full principal amount is funded at origination and the applicable Seller is obligated, subject to the satisfaction of certain conditions precedent under the related Purchased Loan Documents, to make additional advances to the Mortgagor.  For the avoidance of doubt, Buyer shall be under no obligation to make any additional advances under a Future Funding Loan.

 

“Future Funding Purchase Price” has the meaning specified in Section 3(c).

 

9

“Future Funding Request” means a request in the form of Exhibit IX, from the applicable Seller to Buyer pursuant to which the applicable Seller requests that Buyer advance additional Future Funding Purchase Price in respect of an existing Transaction in accordance with Section 3(c).

 

“GAAP” means United States generally accepted accounting principles consistently applied as in effect from time to time.

 

“Governmental Authority” means any national or federal government, any state, regional, local or other political subdivision thereof with jurisdiction and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Ground Lease” has the meaning specified in Exhibit VI.

 

“Guarantor” means KKR REAL ESTATE FINANCE HOLDINGS L.P., a Delaware limited partnership.

 

“Guaranty” means the Guaranty, dated as of the Original Closing Date, from Guarantor in favor of Buyer, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Income” means, with respect to any Purchased Loan at any time, the sum of (x) any payment or prepayment of principal received thereon and all interest, dividends or other income received thereon but excluding all related escrow and reserve payments and all expense reimbursement payments and (y) all net sale proceeds received by Sellers in connection with a sale of such Purchased Loan to a Person other than Buyer.

 

“Indebtedness” means, for any Person:  (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness of others secured by a Lien on the property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for account of such Person; contingent or future funding obligations under any Purchased Loan or any obligations senior to, or pari passu with, any Purchased Loan; (e) Capital Lease Obligations of such Person; and (f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness of others guaranteed by such Person to the extent of such guarantee; and (h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person.  Notwithstanding the foregoing, nonrecourse indebtedness owing pursuant to a securitization transaction such as a REMIC securitization, a collateralized loan obligation transaction or other similar securitization shall not be considered “Indebtedness” for any Person.

 

“Indemnified Amounts” and “Indemnified Parties” have the meanings specified in Section 27.

 

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“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of Sellers under any Transaction Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Independent Manager” means a duly appointed individual who has prior experience as an independent director, independent manager or independent member with at least three years of employment experience and who is provided by Corporation Service Company, CT Corporation, Lord Securities Corporation, National Registered Agents, Inc., Stewart Management Company, Wilmington Trust National Association, Wilmington Trust SP Services, Inc., or, if none of those companies is then providing professional Independent Manager, another nationally-recognized company reasonably approved by Buyer (each of the foregoing, a “Professional Service Company”), in each case that is not an Affiliate of Sellers and that provides professional Independent Managers and other corporate services in the ordinary course of its business, and which individual is duly appointed as an Independent Manager and who shall not have been, at the time of such appointment or at any time while serving as a director or manager of the relevant entity and may not have been at any time in the preceding five (5) years, (a) a direct or indirect legal or beneficial owner in such entity or any of its Affiliates, (b) a creditor, supplier (other than a Professional Service Company), employee, officer, director, family member, manager (other than in its capacity as Independent Manager) or contractor of such entity or any of its Affiliates, or (c) a Person who controls (directly, indirectly or otherwise) such entity or any of its Affiliates or any creditor, supplier, employee, officer, director, family member, manager or contractor of such Person or any of its Affiliates.  A natural person who otherwise satisfies the foregoing definition and satisfies clause (a) by reason of being the Independent Manager of a “special purpose entity” affiliated with the relevant entity shall be qualified to serve as an Independent Manager of the relevant entity, provided that the fees that such individual earns from serving as an Independent Manager of affiliates of the relevant entity in any given year constitute in the aggregate less than five percent (5%) of such individual’s annual income for that year.  For purposes of this definition, a “special purpose entity” is an entity, whose organizational documents contain restrictions on its activities and impose requirements intended to preserve such entity’s separateness that are substantially similar to those contained in Section 13.

 

“Insurance Rating Requirements” has the meaning specified in Exhibit VI.

 

“LBP” has the meaning specified in Exhibit VI.

 

“LIBO Rate” means a rate per annum determined by Buyer or its agent on each Pricing Rate Determination Date in accordance with the following formula:

 

	
LIBOR

	
1 – Reserve Requirement

“LIBOR” means, with respect to each Pricing Rate Period, the greater of (a) 1.00%, and (b) the one month rate (expressed as a percentage per annum) for deposits in U.S. dollars that appears on “Page BBAM” of the Bloomberg Financial Markets Services Screen (or the successor thereto) as of 11:00 a.m., London time; provided that if such rate does not appear on “Page BBAM” of the Bloomberg Financial Markets Services Screen (or the successor thereto) as of 11:00 a.m., London time, on the related Pricing Rate Determination Date, Buyer shall request the principal London office of any four major reference banks in the London interbank market selected by Buyer to provide such bank’s offered monthly rate (expressed as a percentage per annum) to prime banks in the London interbank market for

 

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deposits in U.S. dollars as of 11:00 a.m., London time, on such Pricing Rate Determination Date for amounts of not less than the Repurchase Price of the applicable Transaction, and if at least two such offered quotations are so provided, LIBOR shall be the arithmetic mean of such quotations, and if fewer than two such quotations are so provided, Buyer shall request any three major banks in New York City selected by Buyer to provide such bank’s offered monthly rate (expressed as a percentage per annum) for loans in U.S. dollars to leading European banks as of approximately 11:00 a.m., New York City time on the applicable Pricing Rate Determination Date for amounts of not less than the Repurchase Price of such Transaction, and if at least two such rates are so provided, LIBOR shall be the arithmetic mean of such rates.  LIBOR shall be determined by Buyer or its agent, which determination shall be conclusive absent manifest error (it being understood and agreed that Buyer shall not be required to disclose to any Person any information regarding any reference bank or any rate provided by such reference bank in accordance with this definition, including, without limitation, whether a reference bank has provided a rate or the rate provided by any individual reference bank).

 

“Lien” means any mortgage, lien, encumbrance, charge or other security interest, whether arising under contract, by operation of law, judicial process or otherwise.

 

“Loan Asset Summary Report” means, with respect to each Eligible Loan, a report containing the fields of information set forth in Exhibit VII.

 

“Major Sponsors” has the meaning specified in Exhibit VI.

 

“Make Whole Draw Fee” has the meaning given thereto in the Fee Agreement.

 

“Manager” means KKR REAL ESTATE FINANCE MANAGER LLC, a Delaware limited liability company.

 

“Margin Deficit” has the meaning specified in Section 4(a).

 

“Margin Deficit Amount” has the meaning specified in Section 4(a).

 

“Margin Deficit Notice” has the meaning specified in Section 4(a).

 

“Margin Excess” has the meaning specified in Section 4(b).

 

“Margin Excess Amount” has the meaning specified in Section 4(b).

 

“Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or otherwise) or results of operations (or prospects) of QRS Seller, TRS Seller, Guarantor or Pledgor, (b) the ability of QRS Seller, TRS Seller, Guarantor or Pledgor to pay and perform its obligations under any of the Transaction Documents, (c) the legality, validity or enforceability of any of the Transaction Documents, (d) the rights and remedies of Buyer under any of the Transaction Documents, or (e) the perfection or priority of any Lien granted under any Purchased Loan Document.

 

“Material Default” means, with respect to any Purchased Loan, the occurrence and continuance of any of the following defaults under the terms of the related Purchased Loan Documents, regardless of whether Sellers shall have delivered notice to the related Mortgagor, sponsor(s) or obligor of such default, but taking into account any cure or grace periods allowed to the applicable Mortgagor, sponsor(s) or obligor in the Purchased Loan Documents:  (a) payment default; (b) breach of a material

 

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representation or a material covenant of which either Seller has knowledge; (c) breach of any material provisions of a related guaranty delivered by a guarantor of the obligations of the related Mortgagor of which either Seller has knowledge; or (d) an Act of Insolvency with respect to the related Mortgagor, sponsor(s) or obligor.

 

“Material Modification” means any amendment, waiver or other modification to the terms of any Purchased Loan Documents, or any other action taken pursuant to or with respect to the Purchased Loan or a Purchased Loan Document, which, in each case, would have the effect of:

 

(i)          any forbearance, extension (other than the maturity date, for which the provisions of clause (ii)(B) below shall apply), decrease or modification to the principal of, or interest on, the obligations evidenced by the related Purchased Loan Documents (other than increases in principal of the obligations evidenced by the related Purchased Loan Documents resulting from future funding amounts advanced by the applicable Seller to Mortgagor);

 

(ii)         with respect to such Purchased Loan: (A) any modification, consent to a modification, or waiver of any monetary term, including postponing or extending any scheduled date (other than the maturity date, for which the provisions of clause (ii)(B) below shall apply) fixed for any payment of principal of, or interest on, the obligations evidenced by the Purchased Loan Documents; or (B) extending the maturity date thereunder (other than any extension of the maturity date thereunder in accordance with the terms, and satisfying the conditions, of such Purchased Loan Documents);

 

(iii)        releasing any portion of the collateral securing the obligations evidenced by the related Purchased Loan Documents or acceptance of substitute or additional collateral (other than any release permitted by the terms of the underlying Purchased Loan Document and for which there is no material lender discretion and the relevant conditions thereto have been satisfied), as applicable;

 

(iv)       releasing any obligor thereunder (other than any release required by the terms of the underlying Purchased Loan Document or described in the parenthetical to clause (iii) above);

 

(v)        waiving a Material Default under the Purchased Loan Documents;

 

(vi)       waiving, modifying, reducing or delaying the payment of any material fees, charges, premiums, penalties or other similar payments of any kind or nature whatsoever to be received by the applicable Seller with respect to the Purchased Loan, including, without limitation, any prepayment fees, extension fees, exit fees, defeasance fees, transfer fees, make whole fees, default interest, late charges, late fees and yield maintenance charges payable by the Mortgagor with respect to such Purchased Loan;

 

(vii)      waiving, modifying, reducing or delaying any condition to the extension of the maturity date of the Purchased Loan in accordance with the Purchased Loan Documents;

 

(viii)     any waiver of a “due-on-sale” or “due-on-encumbrance” clause with respect to a Purchased Loan or, if lender consent is required, any consent to such a waiver or consent to a transfer of an Mortgaged Property or interests in the Mortgagor or consent to the incurrence of

 

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additional debt, other than any such transfer or incurrence of debt as may be effected without the consent of the lender under the related Purchased Loan Documents;

 

(ix)        any acceptance of an assumption agreement releasing a Mortgagor from all or a portion of liability under a Purchased Loan other than pursuant to the specific terms of the Purchased Loan Documents for such Purchased Loan and for which there is no material lender discretion; or

 

(x)         with respect to any Purchased Loan for which the applicable Seller has received a pledge of the membership interests in the Mortgagor as additional collateral for such mortgage loan: (A) exercising any voting, consensual and other powers of ownership pertaining to any membership interests of the Mortgagor as if the applicable Seller were the owner thereof; or (B) selling, assigning or otherwise disposing of all or any part of the membership interests of the Mortgagor pursuant to the terms and conditions of the pledge and security agreement constituting a Purchased Loan Document.

 

“Maximum Purchase Price Rate” has the meaning given thereto in the Fee Agreement.

 

“Monthly Reporting Package” means a monthly reporting package that includes (a) any and all financial statements, rent rolls or other material information received from each Mortgagor and other obligors related to each Purchased Loan, (b) a remittance report containing servicing information, including, without limitation, the amount of each periodic payment due, the amount of each periodic payment received, the date of receipt, the date due, and whether, to either Seller’s actual knowledge, there has been any material adverse change to the Mortgaged Property, on a loan by loan basis and in the aggregate, with respect to the Purchased Loan serviced by any Servicer (such remittance report, a “Servicing Tape”), or to the extent any Servicer does not provide any such Servicing Tape, a remittance report containing the servicing information that would otherwise be set forth in the Servicing Tape, (c) a listing of all Purchased Loans reflecting (i) the payment status of each Purchased Loan and any material changes in the financial or other condition of the related Mortgagor, Purchased Loan or the Mortgaged Property collateralizing such Purchased Loan, including, without limitation, any new or ongoing litigation, and (ii) to either Seller’s actual knowledge, any representation and/or warranty breaches under the underlying loan documentation related to any Purchased Loan, (d) a listing of any existing defaults, or events that potentially may become defaults, under the Purchased Loan Documents related to each Purchased Loan, (e) all other information as Buyer, from time to time, may reasonably request with respect to the applicable Seller or any Mortgagor, Purchased Loan or Mortgaged Property collateralizing any Purchased Loan; provided that any item that is required to be delivered pursuant to this clause (e), is equally able to be required to be delivered to the applicable Seller at the request of such Seller or otherwise pursuant to the Purchased Loan Documents related to such Purchased Loan, as applicable, and (f) to the extent that there exists a mezzanine loan related to a Purchased Loan, all notices and other reporting items received by the applicable Seller or its Affiliates in connection with such mezzanine loan, a listing of any existing “events of default” (however defined), defaults, or events that potentially may become defaults, under the related mezzanine loan documentation, and a listing of any existing “events of default” (however defined), defaults, or events that potentially may become defaults under any intercreditor documentation relating to such mezzanine loan and the applicable Purchased Loan.

 

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“Mortgage” means a mortgage, deed of trust, deed to secure debt or other instrument, creating a valid and enforceable first lien on or a first priority ownership interest in real property and the improvements thereon, securing a Mortgage Note or similar evidence of indebtedness.

 

“Mortgage Note” means a note or other evidence of indebtedness of a Mortgagor secured by a Mortgage in connection with a Purchased Loan.

 

“Mortgaged Property” means the real property securing repayment of the debt evidenced by a Mortgage Note.

 

“Mortgagee” means the record holder of a Mortgage Note secured by a Mortgage.

 

“Mortgagor” means the obligor on a Mortgage Note and the grantor of the related Mortgage.

 

“Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been, or were required to have been, made by QRS Seller, TRS Seller, Guarantor, Pledgor or any ERISA Affiliate, or to which any of them otherwise has any obligation, and which is covered by Title IV of ERISA.

 

“OFAC List” means the Specially Designated Nationals list maintained by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC).

 

“OFAC Regulations” has the meaning specified in Exhibit VI.

 

“Original Closing Date” means September 30, 2016.

 

“Origination Date LTV” means, with respect to any Eligible Loan offered by a Seller to be purchased by Buyer pursuant to Section 3(a), the ratio, expressed as a percentage, of (i) the principal amount of such Eligible Loan at the time of origination, to (ii) the value of the Mortgaged Property or Mortgaged Properties collateralizing such Eligible Loan, determined with reference to the Appraisal(s) obtained in respect of such Mortgaged Property or Mortgaged Properties at the time of origination.

 

“Other Connection Taxes” means Taxes imposed as a result of a present or former connection between Buyer and the jurisdiction imposing such Taxes (other than a connection arising as a result of Buyer having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under or enforced any Transaction Document or sold or assigned an interest in any Transaction or Transaction Document).

 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under any Transaction Document; provided, however, that Other Taxes shall not include Taxes that are Other Connection Taxes imposed with respect to an assignment, transfer or sale of participation or other interest in or with respect to the Transaction Documents.

 

“Payment Extended Amount” means, in connection with any Payment Extension Certificate delivered, the unpaid portion of the payment obligation in respect of which the Payment Extension Certificate was delivered.

 

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“Payment Extension Certificate” means the applicable Seller’s written certification to Buyer delivered pursuant to Section 3(e), Section 3(s) or Section 4(a), duly executed by an authorized officer of such Seller, certifying to Buyer that (A) it does not have sufficient available funds on hand to pay the full amount of the payment obligation in respect of which the Payment Extension Certificate is being delivered, and (B) as of the date of such Payment Extension Certificate, it has duly delivered a funding notice under its liquidity facility for an amount sufficient to pay the remaining amount owing of the payment obligation in respect of which the Payment Extension Certificate is being delivered.

 

“Permitted Encumbrances” has the meaning specified in Exhibit VI.

 

“Person” means an individual, corporation, limited liability company, business trust, partnership, joint tenant or tenant-in-common, trust, unincorporated organization, or other entity, or a federal, state or local government or any agency or political subdivision thereof.

 

“Plan” means an employee benefit or other plan established or maintained by QRS Seller, TRS Seller, Guarantor, Pledgor or any ERISA Affiliate during the five year period ended prior to the A&R Closing Date or to which QRS Seller, TRS Seller, Guarantor, Pledgor or any ERISA Affiliate makes, is obligated to make or has been required to make contributions or to which any of them otherwise has any obligation and that is covered by Title IV of ERISA other than a Multiemployer Plan.

 

“Pledge Agreement” means that certain Pledge Agreement, dated as of the Original Closing Date, by and between Pledgor and Buyer, as such agreement may be modified or supplemented from time to time.

 

“Pledged Collateral” has the meaning given thereto in the Pledge Agreement.

 

“Pledgor” means KREF HOLDINGS III LLC, a Delaware limited liability company.

 

“PML” has the meaning specified in Exhibit VI.

 

“Policy Issuer” has the meaning specified in Exhibit VI.

 

“Price Differential” means, with respect to any Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for such Transaction to the outstanding Purchase Price for such Transaction on a 360-day-per-year basis for the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of determination (reduced by any amount of such Price Differential previously paid to Buyer with respect to such Transaction).

 

“Pricing Rate” means, with respect to any Transaction as of any date of determination, an annual rate equal to the LIBO Rate applicable to such date, plus the Applicable Spread for such Transaction. The Pricing Rate shall be subject to adjustment and/or conversion as provided in Section 3(g) and Section 3(h).

 

“Pricing Rate Determination Date” shall mean, with respect to any Pricing Rate Period applicable to any Transaction, the second (2nd) Business Day preceding the first day of such Pricing Rate Period.

 

“Pricing Rate Period” shall mean, with respect to any Transaction, Waterfall Date or Repurchase Date (a) in the case of the first Pricing Rate Period for such Transaction, the period commencing on and

 

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including the Purchase Date for such Transaction and ending on and excluding the following Waterfall Date, and (b) in the case of any subsequent Pricing Rate Period, the period commencing on and including the immediately preceding Waterfall Date and ending on and excluding the following Waterfall Date; provided, however, that in no event shall any Pricing Rate Period for a Purchased Asset end subsequent to the Repurchase Date for such Purchased Asset (or such later date on which the Purchased Asset is actually repurchased).

 

“Principal Payment” means, with respect to any Purchased Loan, (i) any payment or prepayment of principal (whether scheduled or unscheduled), including sale proceeds, (ii) any insurance proceeds and/or condemnation proceeds to be applied to principal pursuant to the terms of the Purchased Loan Documents, and (iii) recoveries of principal from liquidation or foreclosure that are permitted by the terms of the Purchased Loan Documents to be applied to principal and, in each case, that are actually received by the Depository in respect thereof.

 

“Prohibited Person” means any (1) person or entity who is on the OFAC List; a “designated national”, “specially designated national”, “specially designated terrorist”, “specially designated global terrorist”, “foreign terrorist organization”, or “blocked person” within the definitions set forth in the Foreign Assets Control Regulations of the United States Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, (2) person acting on behalf of, or an entity owned or controlled by, any government against whom the United States maintains economic sanctions or embargoes under the Regulations of the United States Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, including, but not limited to, the “Government of Sudan”, the “Government of Iran”, and the “Government of Cuba”, and any person or organization determined by the Director of the Office of Foreign Assets Control to be included within 31 C.F.R. Section 575.306 (definition of “Government of Iraq”), (3) person or entity who is listed in the Annex to or is otherwise within the scope of Executive Order 13224 ‐ Blocking Property and Prohibiting Transactions with Person who Commit, Threaten to Commit, or Support Terrorism, effective September 24, 2001, or (4) person or entity subject to additional restrictions imposed by the following statutes or Regulations and Executive Orders issued thereunder:  the Trading with the Enemy Act, 50 U.S.C. app.  §§ 1 et seq., the Iraq Sanctions Act, Pub. L. 101‐513, Title V, §§ 586 to 586J, 104 Stat. 2047, the National Emergencies Act, 50 U.S.C. §§ 1601 et seq., the Anti‐Terrorism and Effective Death Penalty Act of 1996, Pub. L. 104‐132, 110 Stat. 1214‐1319, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the United Nations Participation Act, 22 U.S.C. § 287c, the International Security and Development Cooperation Act, 22 U.S.C. § 2349aa‐9, the Nuclear Proliferation Prevention Act of 1994, Pub. L. 103‐236, 108 Stat. 507, the Foreign Narcotics Kingpin Designation Act, 21 U.S.C. §§ 1901 et seq., the Iran and Libya Sanctions Act of 1996, Pub. L. 104‐172, 110 Stat. 1541, the Cuban Democracy Act, 22 U.S.C. §§ 6001 et seq., the Cuban Liberty and Democratic Solidarity Act, 22 U.S.C. §§ 6201‐91, the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1997, Pub. L. 104‐208, 110 Stat. 3009‐172, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107‐56, 115 Stat. 272, or any other law of similar import as to any non‐U.S. country, as each such Act or law has been or may be amended, adjusted, modified, or reviewed from time to time.

 

“Prohibited Transferee” has the meaning given thereto in the Fee Agreement.

 

“Purchase Date” means any date on which a Purchased Loan is transferred by a Seller to Buyer pursuant to Section 3(a).

 

“Purchase Date Draw Fee” has the meaning given thereto in the Fee Agreement.

 

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“Purchase Price” means, with respect to any Purchased Loan, (a) as of any Purchase Date for such Purchased Loan, an amount (expressed in dollars) equal to the product obtained by multiplying (i) the outstanding principal balance of such Purchased Loan, by (ii) the Purchase Price Rate and (b) thereafter, the amount referred to in clause (a), minus amounts paid and applied to reduce the Purchase Price pursuant to this Agreement (including, without limitation, on account of any Purchase Price Amortization Amount and any Margin Deficit), plus amounts advanced by Buyer on account of additional Purchase Price pursuant to this Agreement (including, without limitation, on account of any Future Funding Purchase Price and any Margin Excess).

 

“Purchase Price Amortization Amount” has the meaning specified in Section 3(n).

 

“Purchase Price Rate” has the meaning given thereto in the Fee Agreement.

 

“Purchased Loan Documents” means, with respect to a Purchased Loan, the documents comprising the Purchased Loan File for such Purchased Loan.

 

“Purchased Loan File” means, with respect to a Purchased Loan, the documents specified as the “Purchased Loan File” in Section 7(b), together with any additional documents and information required to be delivered to Buyer or its designee (including the Custodian) pursuant to this Agreement.

 

“Purchased Loan Schedule” means a schedule of Purchased Loans attached to each Trust Receipt and Custodial Delivery, which may but is not required to, contain information substantially similar to the Loan Asset Summary Report.

 

“Purchased Loans” means (i) with respect to any Transaction, the Eligible Loan sold by the applicable Seller to Buyer in such Transaction and (ii) with respect to the Transactions in general, all Eligible Loans sold by Sellers to Buyer. For the avoidance of doubt, an Eligible Loan that is repurchased by the applicable Seller in accordance with this Agreement shall cease to be a Purchased Loan.

 

“QRS Seller” has the meaning specified in the first paragraph of this Agreement.

 

“Qualified Transferee” has the meaning given thereto in the Fee Agreement.

 

“Quarterly Reporting Package” means a quarterly reporting package that includes consolidated unaudited financial statements of REIT, presented fairly in accordance with GAAP or, if such financial statements being delivered have been filed with the SEC pursuant to the requirements of the 1934 Act, or similar state securities laws, presented in accordance with applicable statutory and/or regulatory requirements and delivered to Buyer within the same time frame as are required to be filed in accordance with such applicable statutory or regulatory requirements, in either case accompanied by a compliance certificate, including, with respect to the REIT, a statement of operations and a statement of changes in cash flows for such quarter and statement of net assets as of the end of such quarter and evidencing financial covenant compliance, and certified as being true and correct by the CFO, CEO or Treasurer of REIT (it being understood that such REIT financial statements shall include QRS Seller’s, TRS Seller’s, Guarantor’s and Pledgor’s financial information, as consolidated into REIT’s financial statements).

 

“Reallocation” has the meaning specified in Section 4(a).

 

“Recipient” has the meaning specified in Section 32.

 

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“REIT” means KKR REAL ESTATE FINANCE TRUST INC., a Maryland Corporation (together with its successors and permitted assigns).

 

“Remainder Interest” means, with respect to a Purchased Loan and its related Transaction that is the subject of a Remainder Interest Transfer Notice, all right, title, interest and obligations that QRS Seller has under, in respect of and in connection with such Purchased Loan pursuant to the Transaction Documents and Purchased Loan Documents, including, without limitation, (i) all obligations to pay any amounts, including future advances of principal, under the Purchased Loan Documents, (ii) all obligations to repurchase such Purchased Loan under the Transaction Documents and to pay the Repurchase Price for such Purchased Loan on the Repurchase Date, (iii) all rights to declare the occurrence of an Early Repurchase Date and to repurchase such Purchased Loan under the Transaction Documents on such Early Repurchase Date pursuant to Section 3(d), (iv) all rights to receive income in respect of such Purchased Loan under Section 5, (v) all obligations to pay (A) Margin Deficit Amounts in respect of such Purchased Loan pursuant to Section 4, (B) Price Differential in respect of such Purchased Loan pursuant to Section 5, (C) Purchase Price Amortization Amount in respect of such Purchased Loan pursuant to Section 3(n), (D) Concentration Limit Amount in respect of such Purchased Loan pursuant to Section 3(o), (E) Exit Fees in respect of such Purchased Loan in accordance with the Fee Agreement and (F) all other amounts owing in respect of or in connection with such Purchased Loan, (vi) all rights to request Margin Excess with respect to such Purchased Loan pursuant to Section 4(b) and to request an advance of Future Funding Purchase Price with respect to such Purchased Loan pursuant to Section 3(c), and (vii) all (A) rights to payment, repayment, indemnification, reimbursement and defense accruing to the holder of a Purchased Loan pursuant to the Purchased Loan Documents, (B) security interests, including interests and rights of application with respect to any reserves held pursuant to the Purchased Loan Documents and (C) obligations accruing to the holder of a Purchased Loan (including but not limited to all obligations related to the return of reserve funds) accruing under the Purchased Loan Documents.

 

“Remainder Interest Transfer Date” means, with respect to any transfer of Remainder Interests in a Purchased Loan, the date on which such Remainder Interests are transferred from QRS Seller to TRS Seller in accordance with Section 3(q).

 

“Remainder Interest Transfer Notice” means a notice in the form of Exhibit X, from Sellers to Buyer pursuant to which Sellers notify Buyer of their intention to transfer from QRS Seller to TRS Seller all Remainder Interests in a Purchased Loan and its related Transaction on the intended Remainder Interest Transfer Date in accordance with, and subject to the conditions precedent set forth in, Section 3(q).

 

“REMIC” means a real estate mortgage investment conduit, within the meaning of Section 860D(a) of the Code.

 

“REMIC Provisions” has the meaning specified in Exhibit VI.

 

“Repurchase Date” means, for any Transaction, the earliest of: (i) solely for Swingline Transactions, the date that is 36 months after the Purchase Date for such Purchased Loan, (ii) the “Repurchase Date” set forth in the Confirmation related to such Purchased Loan, (iii) if Buyer has delivered a Defaulted Loan Repurchase Notice related to such Transaction in accordance with Section 3(m), the Business Day set forth in such Defaulted Loan Repurchase Notice, (iv) the date on which a Purchased Loan ceases to be an Eligible Loan, (v) the date on which the applicable Seller fails to pay any

 

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(A) Extension Fee when due and payable, (B) any Purchase Price Amortization Amount when due and payable, (C) the Make Whole Draw Fee when due and payable, (D) the Delayed Facility Fee when due and payable, or (E) any Exit Fee when due and payable, (vi) upon Buyer’s demand for repayment during the continuance of an Event of Default, (vii) upon any failure by the applicable Seller to advance any additional loan proceeds to the Mortgagor when required to do so pursuant to the Purchased Loan Documents, (viii) to the extent that such Purchased Loan has a related mezzanine loan, the date on which any default beyond applicable notice, grace and cure periods occurs under the documentation related to such mezzanine loan or the related intercreditor agreement, (ix) the date that such Purchased Loan is repurchased by the applicable Seller at the Repurchase Price in accordance with Section 3(d), (x) solely for Swingline Transactions, the Business Day on which the Maximum Purchase Price Rate for such Transaction reduces to zero (0) in accordance with the definition thereof and the Confirmation evidencing such Swingline Transaction, (xi) the Business Day that the “Repurchase Date” is declared to have occurred with respect to such Transaction pursuant to Section 3(p), (xii) the Business Day that the “Repurchase Date” is declared to have occurred with respect to such Transaction pursuant to Section 7(b), (xiii) solely with respect to Term Transactions, the Business Day that the “Repurchase Date” is declared to have occurred with respect to all then outstanding Term Transactions pursuant to Section 3(s), (xiv) solely for Swingline Transactions, the Swingline Maturity Date, or (xv) solely for Term Transactions, the Term Maturity Date.

 

“Repurchase Obligations” means all obligations of Sellers to pay the Repurchase Price for each Transaction on the Repurchase Date for each such Transaction and all other obligations and liabilities of Sellers to Buyer arising under or in connection with the Transaction Documents, whether now existing or hereafter arising.

 

“Repurchase Price” means, with respect to any Purchased Loan as of any date, the price at which such Purchased Loan is to be transferred from Buyer to the applicable Seller upon termination of the related Transaction; such price will be determined in each case as the sum of (a) the outstanding Purchase Price of such Purchased Loan, (b) the accrued and unpaid Price Differential with respect to such Purchased Loan, (c) the amount of any Exit Fee that may be payable with respect to such Purchased Loan pursuant to the Fee Agreement, (d) the amount of any Term Amortization Period Fee that may be payable with respect to such Purchased Loan pursuant to the Fee Agreement, and (e) all other amounts due and payable as of such date by Sellers to Buyer under this Agreement or any Transaction Document (including, but not limited to, accrued and unpaid fees, expenses and indemnity amounts).

 

“Requirement of Law” means any law, treaty, rule, regulation, code, directive, policy, order or requirement or determination of an arbitrator or a court or other Governmental Authority whether now or hereafter enacted or in effect.

 

“Reserve Requirement” means, as of any date of determination, the aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve requirements in effect on such date (including, without limitation, basic, supplemental, marginal and emergency reserves under any regulations of the Board of Governors of the Federal Reserve System or other Governmental Authority having jurisdiction with respect thereto) dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of such Board of Governors) maintained by Buyer.

 

“RG” has the meaning specified in Exhibit VI.

 

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“Safe Harbor Event” has the meaning specified in Section 3(l).

 

“Safe Harbor Notice” has the meaning specified in Section 3(l).

 

“SEC” has the meaning specified in Section 24(a).

 

“SEL” has the meaning specified in Exhibit VI.

 

“Seller” and “Sellers” have the meaning specified in the first paragraph of this Agreement.

 

“Servicer” means, as of the A&R Closing Date, SITUS ASSET MANAGEMENT LLC and thereafter any other third party servicer selected by Sellers and approved by Buyer in its sole discretion, including WELLS FARGO BANK, NATIONAL ASSOCIATION.

 

“Servicing Account” means, with respect to each Servicer, the account established at such Servicer pursuant to the related Servicing Agreement.

 

“Servicing Agreement” means, as of the A&R Closing Date, that certain Servicing Agreement between QRS Seller, TRS Seller, Buyer and Situs Asset Management LLC, dated as of the Original Closing Date, and thereafter, any other servicing agreement entered into by QRS Seller, TRS Seller, Buyer and any Servicer for the servicing of Purchased Loans, together with any additional servicing documentation or letters entered into in connection therewith, in each case, as each such agreement or letter agreement may be amended, restated, supplemented or otherwise modified from time to time with the consent of Buyer.

 

“Servicing Records” has the meaning specified in Section 29(b).

 

“Servicing Rights” means, with respect to any Purchased Loan, the applicable Seller’s right, title and interest in and to any and all of the following:  (a) any and all rights to service the related Purchased Loan; (b) any payments to or monies received by such Seller or any other Person for servicing such Purchased Loan; (c) any late fees, penalties or similar payments with respect to such Purchased Loan; (d) all agreements or documents creating, defining or evidencing any such servicing rights to the extent they relate to such servicing rights and all rights of such Seller or any other Person thereunder; (e) escrow payments or other similar payments with respect to such Purchased Loan and any amounts actually collected by such Seller or any other Person with respect thereto; (f) the right, if any, to appoint a special servicer or liquidator of such Purchased Loan; and (g) all accounts and other rights to payment related to the servicing of such Purchased Loan.

 

“Single-Purpose Entity” has the meaning specified in Exhibit VI.

 

“SIPA” has the meaning specified in Section 24(a).

 

“Solvent” means with respect to any Person at any time, having a state of affairs such that all of the following conditions are met at such time:  (a) the fair value of the assets and property of such Person is greater than the amount of such Person’s liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy Code, (b) the present fair salable value of the assets and property of such Person in an orderly liquidation of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, and (c) such

 

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Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s assets and property would constitute unreasonably small capital.

 

“Sponsor Diligence” has the meaning specified in Exhibit VI.

 

“Standard Qualifications” has the meaning specified in Exhibit VI.

 

“Substitute Rate” means shall mean any published index now or hereafter generally adopted by Buyer as a replacement for the LIBO Rate for variable rate loans or repurchase facilities, as determined by Buyer in its sole discretion and applied to other similarly situated sellers under similar repurchase facilities with Buyer; provided that in no event shall such Substitute Rate at any time be less than 0.00% percent.

 

“Substitute Rate Applicable Spread” shall mean, if the Pricing Rate has converted to the Substitute Rate pursuant to Section 3(g) of this Agreement, an amount equal to the difference (expressed as a number of basis points) between (a) the LIBO Rate plus the Applicable Spread on the date the LIBO Rate was last applicable to the outstanding Transactions prior to such conversion, and (b) the Substitute Rate on the date that the LIBO Rate was last applicable to the outstanding Transactions prior to such conversion; provided, that in no event shall such difference be a negative number.

 

“Survey” means a certified ALTA/ACSM (or applicable state standards for the state in which the Mortgaged Property is located) survey of a Mortgaged Property prepared by a registered independent surveyor or engineer and in form and content satisfactory to Buyer in its commercially reasonable discretion and the company issuing the Title Policy for such Mortgaged Property.

 

“Swingline Availability Period” means the period commencing on the A&R Closing Date and ending on the Swingline Availability Period End Date.

 

“Swingline Availability Period End Date” means the earliest to occur of (a) October 31, 2018, (b) if Buyer has delivered a Safe Harbor Notice following the occurrence of a Safe Harbor Event, the date set forth in such Safe Harbor Notice as the revised “Swingline Availability Period End Date”, or (c) the date that Buyer may declare as the “Swingline Availability Period End Date” pursuant to Section 14(b)(i) following the occurrence of an Event of Default.

 

“Swingline Facility Amount” means $150,000,000.

 

“Swingline Maturity Date” means the earliest to occur of (a) the date that is three (3) years after the Swingline Availability Period End Date, (b) the date that Buyer may declare as the “Swingline Maturity Date” pursuant to Section 14(b)(i) following the occurrence of an Event of Default, or (c) following the Swingline Availability Period End Date, the Repurchase Date of the last Purchased Loan.

 

“Swingline Transaction” has the meaning specified in Section 1.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

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“Term Amortization Period” means, if the Term Amortization Period Option has been exercised in accordance with Section 3(r), the period commencing on the Term Availability Period End Date and ending on the Term Amortization Period End Date.

 

“Term Amortization Period End Date” means October 31, 2022.

 

“Term Amortization Period Fee” has the meaning given thereto in the Fee Agreement.

 

“Term Amortization Period Option” has the meaning specified in Section 3(r).

 

“Term Availability Period” means the period commencing on the A&R Closing Date and ending on the Term Availability Period End Date.

 

 “Term Availability Period End Date” means the earliest to occur of (a) October 30, 2020, (b) if Buyer has delivered a Safe Harbor Notice following the occurrence of a Safe Harbor Event, the date set forth in such Safe Harbor Notice as the revised “Term Availability Period End Date”, or (c) the date that Buyer may declare as the “Term Availability Period End Date” pursuant to Section 14(b)(i) following the occurrence of an Event of Default.

 

“Term Facility Amount” means $250,000,000.

 

“Term Maturity Date” means the earliest to occur of (a) the Term Availability Period End Date; provided that if the Term Amortization Period Option shall have been exercised and deemed effective in accordance with Section 3(r), the date in this clause (a) of this definition shall instead be the Term Amortization Period End Date, or (b) the date that Buyer may declare as the “Term Maturity Date” pursuant to Section 14(b)(i) following the occurrence of an Event of Default.

 

“Term Transaction” has the meaning specified in Section 1.

 

“Title Policy” has the meaning specified in Exhibit VI.

 

“Transaction” means either a Swingline Transaction or a Term Transaction.

 

“Transaction Documents” means, collectively, this Agreement, any applicable Annexes to this Agreement, the Guaranty, the Pledge Agreement, the Custodial Agreement, each Blocked Account Agreement, any Servicing Agreement, all Confirmations executed pursuant to this Agreement in connection with specific Transactions, the Fee Agreement, any other documents or instruments relating to any such documents executed by QRS Seller, TRS Seller, Guarantor or Pledgor, and any written modifications, extensions, renewals, restatements, or replacements of any of the foregoing.

 

“Transaction Request” means a request in the form of Exhibit VIII, from QRS Seller or TRS Seller to Buyer pursuant to which such Seller requests that Buyer enter into a Transaction in accordance with Section 3(a).

 

“TRIA” has the meaning specified in Exhibit VI.

 

“TRS Seller” has the meaning specified in the first paragraph of this Agreement.

 

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“Trust Receipt” means a trust receipt issued by Custodian to Buyer confirming the Custodian’s possession of certain Purchased Loan Files which are the property of and held by Custodian for the benefit of Buyer (or any other holder of such trust receipt) or a bailment arrangement with an Acceptable Attorney.

 

“U.S. Person” means a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“UCC” has the meaning specified in Section 6.

 

“Waterfall Account” means a segregated interest bearing account, in the name of QRS Seller for the benefit of Buyer, established at the Depository and subject to the Blocked Account Agreement.

 

“Waterfall Date” means the fifteenth (15th) calendar day of each month, or the next succeeding Business Day, if such calendar day shall not be a Business Day, or such other day as is mutually agreed to by Sellers and Buyer.

 

“Whole Loans” has the meaning given to such term in the definition of “Eligible Loans”.

 

“Zoning Regulations” has the meaning specified in Exhibit VI.

 

	3.	
INITIATION; CONFIRMATION; TERMINATION; REPURCHASE & PAYMENTS; OTHER EVENTS

 

(a)           Subject to the terms and conditions set forth in this Agreement, either Seller may, from time to time during the Swingline Availability Period, submit to Buyer a Transaction Request for Buyer’s review and approval requesting that Buyer enter into a Swingline Transaction, and either Seller may, from time to time during the Term Availability Period, submit to Buyer a Transaction Request for Buyer’s review and approval requesting that Buyer enter into a Term Transaction, in either case, with respect to any Eligible Loan that such Seller proposes to sell to Buyer under this Agreement; provided, however, that this Agreement is not a commitment to enter into Transactions but rather sets forth the procedures to be used in connection with periodic requests to enter into Transactions, and each Seller hereby acknowledges that Buyer is under no obligation to enter into, or agree to enter into, any Transaction pursuant to this Agreement. Upon Buyer’s receipt of a complete Transaction Request and a complete Due Diligence Package, Buyer shall have the right to promptly request, in Buyer’s good faith business judgment, additional diligence materials and deliveries with respect to the applicable Eligible Loan, to the extent necessary for Buyer’s underwriting of such Eligible Loan. Upon Buyer’s receipt of the Transaction Request, Due Diligence Package and additional diligence materials, Buyer shall use commercially reasonable efforts to either (A) obtain receipt of internal credit approval, and notify the applicable Seller of terms thereof for such Eligible Loan or (B) deny the applicable Seller’s request for a Transaction (it being understood that Buyer shall have the right to review all Eligible Loans proposed to be sold to Buyer in any Transaction and to conduct its own due diligence investigation of such Eligible Loans as Buyer reasonably determines, and in connection therewith Buyer is entitled to make a determination as to whether to accept or deny a proposed Transaction in its sole discretion).  Buyer’s failure to respond to the applicable Seller in respect of a Transaction Request shall be deemed to be a denial of such Transaction Request.  If Buyer accepts a request to enter into a Transaction, Buyer’s entry into such Transaction and the payment by Buyer of the Purchase Price therefor shall be subject to the following conditions precedent:

 

(i)          receipt by Buyer of a fully completed Transaction Request and a complete Due Diligence Package shall have been delivered to Buyer, and (A) to the applicable Seller’s

 

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knowledge, all of the information contained in such Due Diligence Package and such additional diligence information related to such Eligible Loan, is true and correct in all material respects, and (B) to the applicable Seller’s knowledge, there is no additional information that should be contained in such Due Diligence Package and additional diligence information (but which is not included therein) to avoid such Due Diligence Package and additional diligence information being misleading in any respect;

 

(ii)         the proposed date for entry into the Transaction shall be no less than ten (10) Business Days from the date of delivery of the related Transaction Request and a complete Due Diligence Package, and the Swingline Availability Period End Date (if such proposed Transaction is a Swingline Transaction) or the Term Availability Period End Date (if such proposed Transaction is a Term Transaction) shall not have occurred;

 

(iii)        as of the Purchase Date, either (A) if such proposed Transaction is a Swingline Transaction, the sum of (1) the requested Purchase Price for the proposed Transaction, plus (2) the aggregate outstanding Purchase Prices at such time for all existing Swingline Transactions shall not exceed the Swingline Facility Amount, or (B) if such proposed Transaction is a Term Transaction, the sum of (1) the requested Purchase Price for the proposed Transaction, plus (2) the aggregate outstanding Purchase Prices at such time for all existing Term Transactions shall not exceed the Term Facility Amount;

 

(iv)       as of the Purchase Date for such proposed Transaction (A) no Default or Event of Default under this Agreement shall have occurred and be continuing, (B) no Margin Deficit shall be outstanding, (C) no Concentration Limit Amount shall be outstanding, (D) no  Purchase Price Amortization Amount shall be outstanding, and (E) no other payment obligation shall remain outstanding (including, without limitation, any amounts payable pursuant to the Fee Agreement) unless, in the cases of clauses (B), (C), (D) and (E), the applicable Seller has requested that such outstanding amounts are netted against the proposed Purchase Price until such outstanding amounts are paid in full;

 

(v)        the representations and warranties made by Sellers in each of the Transaction Documents shall be true and correct in all material respects as of the Purchase Date for such Transaction, before and after giving effect to such Transaction, as though made on such Purchase Date (except to the extent such representations and warranties are made as of a particular date and except to the extent of any exceptions listed on Schedule 2 of the applicable Transaction Request), and QRS Seller, TRS Seller, Guarantor and Pledgor shall each be in compliance with their respective covenant obligations under each of the Transaction Documents;

 

(vi)       the applicable Seller shall have paid (A) the Purchase Date Draw Fee due and payable in accordance with the Fee Agreement, and (B) Buyer’s costs and expenses pursuant to Section 30(d) (each of which may be paid in advance or may be netted against the Purchase Price until such amounts are paid in full);

 

(vii)      the asset proposed to be sold to Buyer by the applicable Seller in such Transaction is an Eligible Loan and Buyer shall have obtained internal credit approval for the inclusion of such Eligible Loan as a Purchased Loan in a Transaction;

 

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(viii)     the purchase of such Eligible Loan will not result in a Concentration Limit Event or give rise to any violation of Section 3(n) in respect of any Purchase Price Amortization Amount;

 

(ix)        as of the date of the first Transaction completed hereunder following the A&R Closing Date, Buyer shall have received all corporate and governmental approvals of QRS Seller, TRS Seller, Guarantor and Pledgor, all legal opinions of counsel to QRS Seller, TRS Seller, Guarantor and Pledgor (including, without limitation, as to authority, enforceability, non-contravention of organizational documents and law, security interest creation, security interest perfection by filing and perfection by possession and bankruptcy safe harbor in respect of qualifying Eligible Loans) and such other closing documentation as Buyer may reasonably request pursuant to this Agreement; and

 

(x)         no event has occurred and is continuing which is reasonably likely to result in a Material Adverse Effect.

 

(b)           Upon the satisfaction of the foregoing conditions precedent, in the event that Buyer determines that it will enter into a proposed Transaction, Buyer shall promptly deliver to the applicable Seller a written confirmation of such Transaction (a “Confirmation”) in the form of Exhibit I-A (if such Transaction is a Swingline Transaction) or Exhibit I-B (if such Transaction is a Term Transaction).  Upon receipt by Buyer of the Confirmation executed by the applicable Seller, on the date requested by such Seller for consummation of the Transaction or such other date as Buyer shall determine, the Purchased Loan shall be transferred to Buyer by such Seller against the transfer of the Purchase Price from Buyer to an account of such Seller or an account nominated by such Seller.  Once executed by both Buyer and the applicable Seller, each Confirmation, together with this Agreement, shall be conclusive evidence of the terms of the Transaction(s) covered thereby.  In the event of any conflict between the terms of such Confirmation and the terms of this Agreement, the Confirmation shall prevail.  It is understood and agreed that once a Confirmation has been executed by Buyer and the applicable Seller, such Confirmation shall be binding on the parties hereto (absent manifest error) and shall constitute evidence of Buyer’s approval of the applicable Purchased Loan and the terms of the applicable Transaction.  For each Transaction, (A) following any date after the Purchase Date that the Maximum Purchase Price Rate reduces in accordance with the definition thereof and the Confirmation evidencing such Transaction (except where the Maximum Purchase Price Rate reduces to zero (0)), (B) following any date after the Purchase Date that there is any change in the then outstanding principal amount of the related Purchased Loan, and (C) concurrently with the commencement of the Term Amortization Period, in each case, Buyer and the applicable Seller shall prepare and enter into an updated Confirmation evidencing and taking into account such changes, which updated Confirmation shall be deemed to replace the existing Confirmation for such Transaction and such Transaction under the replacement Confirmation shall be deemed to be a continuation of the Transaction under the replaced Confirmation.  In addition, a Confirmation may be replaced in connection with a Future Funding Advance with respect to the related Purchased Loan in accordance with Section 3(c) and in connection with the transfer by QRS Seller to TRS Seller of Remainder Interests related to a Purchased Loan in accordance with Section 3(q).

 

(c)           Subject to the terms and conditions set forth in this Agreement, the applicable Seller may, from time to time in respect of a Future Funding Loan that is the subject of an existing Transaction, prior to the Repurchase Date of such existing Transaction (irrespective of whether or not the Swingline Availability Period (to the extent such Transaction is a Swingline Transaction) or the Term Availability Period (to the extent such Transaction is a Term Transaction) is then in effect), submit to Buyer a Future

 

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Funding Request for Buyer’s review and approval requesting that Buyer advance to the applicable Seller additional Purchase Price with respect to such Transaction (any such additional Purchase Price advanced under this Section 3(c), “Future Funding Purchase Price”) on the date specified therein (the date on which such Future Funding Purchase Price is advanced, the applicable “Future Funding Date”); provided, however, that this Agreement is not a commitment to advance any Future Funding Purchase Price in respect of a Future Funding Loan that is the subject of an existing Transaction but rather sets forth the procedures to be used in connection with periodic requests to advance Future Funding Purchase Price in respect of a Future Funding Loan that is the subject of an existing Transaction, and each Seller hereby acknowledges that Buyer is under no obligation to advance, or agree to advance, any Future Funding Purchase Price in respect of a Future Funding Loan that is the subject of an existing Transaction pursuant to this Agreement. Upon Buyer’s receipt of a complete Future Funding Request and an updated Due Diligence Package, Buyer shall have the right to promptly request, in Buyer’s good faith business judgment, additional diligence materials and deliveries with respect to the related Transaction, to the extent necessary for Buyer’s underwriting of such proposed advance of Future Funding Purchase Price. Upon Buyer’s receipt of the Future Funding Request, Due Diligence Package and additional diligence materials, Buyer may determine, it its sole discretion, whether or not to advance the requested Future Funding Purchase Price.  Buyer’s failure to respond to the applicable Seller in respect of a Future Funding Request shall be deemed to be a denial of such Future Funding Request.  If Buyer accepts a Future Funding Request, payment by Buyer of the requested Future Funding Purchase Price shall be subject to the following conditions precedent:

 

(i)          receipt by Buyer of a fully completed Future Funding Request and a complete Due Diligence Package shall have been delivered to Buyer, and (A) to the applicable Seller’s knowledge, all of the information contained in such Due Diligence Package and such additional diligence information related to the Transaction to which such Future Funding Request relates, is true and correct in all material respects, and (B) to the applicable Seller’s knowledge, there is no additional information that should be contained in such Due Diligence Package and additional diligence information (but which is not included therein) to avoid such Due Diligence Package and additional diligence information being misleading in any respect;

 

(ii)         the proposed date for advance of the Future Funding Purchase Price shall be no less than five (5) Business Days from the date of delivery of the related Future Funding Request and a complete Due Diligence Package, and the Repurchase Date of the Transaction to which such Future Funding Request relates shall not have occurred;

 

(iii)        neither Seller shall have previously submitted to Buyer a Future Funding Request in the same calendar month;

 

(iv)       the Future Funding Request is being delivered in connection with additional advances of principal made by the applicable Seller to the Mortgagor under the Future Funding Loan, and the requested Future Funding Purchase Price shall (A) be greater than $500,000, and (B) shall not exceed the result of (x) the amount of such additional advances of principal made by the applicable Seller to the Mortgagor under the Future Funding Loan, multiplied by (y) the Maximum Purchase Price Rate then applicable to such Future Funding Loan;

 

(v)        as of the Future Funding Date, either (A) if such Future Funding Loan is related to a Swingline Transaction, the sum of (1) the requested Future Funding Purchase Price, plus (2) the aggregate outstanding Purchase Prices at such time for all existing Swingline Transactions

 

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(including the outstanding Purchase Price for the Transaction to which such Future Funding Request relates) shall not exceed the Swingline Facility Amount, or (B) if such Future Funding Loan is related to a Term Transaction, the sum of (1) the requested Future Funding Purchase Price, plus (2) the aggregate outstanding Purchase Prices at such time for all existing Term Transactions (including the outstanding Purchase Price for the Transaction to which such Future Funding Request relates) shall not exceed the Term Facility Amount;

 

(vi)       as of the Future Funding Date (A) no monetary Default, material non-monetary Default or Event of Default under this Agreement shall have occurred and be continuing, (B) no Margin Deficit shall be outstanding, (C) no Concentration Limit Amount shall be outstanding, (D) no  Purchase Price Amortization Amount shall be outstanding and (E) no other payment obligation shall remain outstanding (including, without limitation, any amounts payable pursuant to the Fee Agreement) unless, in the cases of clauses (B), (C), (D) and (E), the applicable Seller has requested that such outstanding amounts are netted against the proposed Future Funding Purchase Price until such outstanding amounts are paid in full;

 

(vii)      the representations and warranties made by Sellers in each of the Transaction Documents shall be true and correct in all material respects as of the Future Funding Date for such advance of Future Funding Purchase Price, before and after giving effect to such advance of Future Funding Purchase Price, as though made on such Future Funding Date (except to the extent such representations and warranties are made as of a particular date and except to the extent of any exceptions listed on Schedule 2 of the applicable Transaction Request), and QRS Seller, TRS Seller, Guarantor and Pledgor shall each be in compliance with their respective covenant obligations under each of the Transaction Documents;

 

(viii)     the applicable Seller shall have paid (A) the Future Funding Draw Fee due and payable in accordance with the Fee Agreement, and (B) Buyer’s costs and expenses pursuant to Section 30(d) (each of which may be paid in advance or may be netted against the proposed Future Funding Purchase Price until such amounts are paid in full);

 

(ix)        the advance of Future Funding Purchase Price in respect of the related Transaction will not result in a Concentration Limit Event or give rise to any violation of Section 3(n) in respect of any Purchase Price Amortization Amount;

 

(x)         no Safe Harbor Event shall have occurred; and

 

(xi)        no event has occurred and is continuing which is reasonably likely to result in a Material Adverse Effect.

 

Upon the satisfaction of the foregoing conditions precedent, in the event that Buyer determines that it will advance the requested Future Funding Purchase Price, Buyer shall promptly deliver to the applicable Seller an updated Confirmation.  Upon receipt by Buyer of the updated Confirmation executed by the applicable Seller, on the Future Funding Date, Buyer shall advance the Future Funding Purchase Price against the increase in the Purchase Price evidenced by the updated Confirmation, which updated Confirmation shall be deemed to replace the existing Confirmation for such Transaction and such Transaction under the replacement Confirmation shall be deemed to be a continuation of the Transaction under the replaced Confirmation, as more fully set forth in Section 3(b).

 

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(d)           The applicable Seller shall be entitled to terminate a Transaction on demand, in whole only, and repurchase the Purchased Loan subject to a Transaction on any Business Day prior to the Repurchase Date (an “Early Repurchase Date”); provided, however, that:

 

(i)          such Seller notifies Buyer in writing of its intent to terminate such Transaction and repurchase such Purchased Loan no later than one (1) Business Day prior to such Early Repurchase Date;

 

(ii)         on such Early Repurchase Date, such Seller pays to Buyer the Repurchase Price with respect to such Transaction against transfer to such Seller or its agent of such Purchased Loan;

 

(iii)        on such Early Repurchase Date, following the payment of the amounts set forth in Section 3(d)(ii), no Margin Deficit exists (other than a Margin Deficit that would be cured by such early repurchase); and

 

(iv)       no Default or Event of Default exists on the date of such early repurchase (other than a Default or Event of Default which would be cured by such early repurchase).

 

Such notice shall set forth the Early Repurchase Date and shall identify with particularity the Purchased Loans to be repurchased on such Early Repurchase Date.

 

(e)           On the Repurchase Date or Early Repurchase Date specified in accordance with Section 3(d) for any Purchased Loan, the applicable Seller shall repurchase such Purchased Loan by paying to Buyer on such date the Repurchase Price, upon receipt of which, termination of the applicable Transaction will be effected by transfer to such Seller or its designee of the applicable Purchased Loan and any Income in respect thereof received by Buyer (and not previously credited or transferred to, or applied to the obligations of, such Seller pursuant to Section 5). In connection with each such repurchase, so long as no Default or Event of Default has occurred and is continuing, Buyer shall deliver, or cause to be delivered, to the applicable Seller the related Purchased Loan File and, on such Repurchase Date or Early Repurchase Date, represents and warrants to such Seller that such Purchased Loan is being reconveyed to such Seller free and clear of any and all Liens and claims placed on such Purchased Loan by Buyer. Solely for a Repurchase Date occurring with respect to a Purchased Loan following delivery by Buyer to Seller of a Defaulted Loan Repurchase Notice in accordance with Section 3(m) and as to which the revised Repurchase Date set forth in such Defaulted Loan Repurchase Notice is less than three (3) Business Days after the date of delivery of such Defaulted Loan Repurchase Notice, the applicable Seller shall pay the Repurchase Price by first, on the specified Repurchase Date, paying to Buyer all available funds on hand (if any) in payment of such Repurchase Price, and, if such amount is less than the Repurchase Price, such Seller may extend the date for payment of the unpaid portion of such Repurchase Price until the date that is three (3) Business Days after the date of delivery of such Defaulted Loan Repurchase Notice by delivering to Buyer on or before the specified Repurchase Date a Payment Extension Certificate.

 

(f)            The applicable Seller shall have the right, from time to time, on any Business Day, to transfer cash to Buyer for the purpose of reducing the outstanding Purchase Price of, but not terminating, a Transaction and without the release of any Collateral and without any prepayment fee or penalty.

 

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(g)           If, at any time, Buyer shall have determined in the exercise of its reasonable business judgment (which determination shall be conclusive and binding upon Sellers) that (i) by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the LIBO Rate, or (ii) Buyer shall have determined (which determination shall be conclusive and binding upon Sellers absent manifest error) that there has been or there is likely to be an alternative index or interest rate to replace the actual or potential phase out of the index on which the LIBO Rate is determined, Buyer shall give email or telephonic notice (with written notice to follow the next Business Day) thereof to Sellers as soon as practicable thereafter.  If such notice is given, Buyer shall determine the Pricing Rate with respect to such Transaction until such notice has been withdrawn as a per annum rate equal to, in Buyer’s sole discretion, either (x) the Federal Funds Rate plus the Applicable Spread, or (y) the Substitute Rate plus the Substitute Rate Applicable Spread (the “Alternative Rate”). For the avoidance of doubt, Buyer shall endeavor to apply such determination consistently to all similarly situated counterparties in commercial real estate mortgage loan repurchase facilities. In addition, Buyer will endeavor to provide Sellers with notice promptly after any such determination is made.

 

(h)           Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof shall make it unlawful for Buyer to effect or continue Transactions as contemplated by the Transaction Documents, the Transactions then outstanding shall, as of such date, be converted automatically to Alternative Rate Transactions. For the avoidance of doubt, Buyer shall endeavor to apply the implication of any change in a Requirement of Law consistently to all similarly situated counterparties in commercial real estate mortgage loan repurchase facilities.

 

(i)            Upon written demand by Buyer, Sellers shall, on a joint and several basis, indemnify Buyer and hold Buyer harmless from any net actual, out-of-pocket loss or expense (not to include any lost profit or opportunity) (including, without limitation, reasonable, actual, out-of-pocket third party attorneys’ fees and disbursements) which Buyer sustains or incurs as a consequence of (i) default by the applicable Seller in terminating any Transaction after such Seller has given a notice in accordance with Section 3(d) of a termination of a Transaction, or (ii) a default by the applicable Seller in selling Eligible Loans after Seller has notified Buyer of a proposed Transaction in accordance with Section 3(a) and Buyer has agreed to purchase such Eligible Loans in accordance with the provisions of this Agreement.  A certificate as to such actual costs, losses, damages and expenses, setting forth the calculations therefor shall be submitted promptly by Buyer to Sellers.

 

(j)            If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof by any Governmental Authority or compliance by Buyer with any request or directive from any central bank or other Governmental Authority having jurisdiction over Buyer made subsequent to the A&R Closing Date:

 

(i)          shall subject Buyer to any Tax of any kind whatsoever with respect to the Transaction Documents, any Purchased Loan or any Transaction, or change the basis of taxation of payments to Buyer in respect thereof (except for (i) Indemnified Taxes, (ii) Taxes described in clauses (b) through (e) of the definition of Excluded Taxes and (iii) Connection Income Taxes);

 

(ii)         shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds

 

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by, any office of Buyer which is not otherwise included in the determination of the LIBO Rate hereunder; or

 

(iii)        shall impose on Buyer any other conditions;

 

and the result of any of the foregoing is to increase the cost to Buyer, by an amount which Buyer deems, in the exercise of its reasonable business judgment, to be material, of entering into, continuing or maintaining Transactions or to reduce in a material manner any amount receivable under the Transaction Documents in respect thereof; then, in any such case, Sellers shall promptly (and, in any event, within ten (10) Business Days after Sellers receive notice from Buyer, which notice shall be prima facie evidence of such additional amounts absent manifest error), on a joint and several basis, pay Buyer any additional amounts necessary to compensate Buyer for such increased cost or reduced amount receivable. For the avoidance of doubt, Buyer shall endeavor to apply the implication of any change in a Requirement of Law consistently to all similarly situated counterparties in commercial real estate mortgage loan repurchase facilities. In addition, Buyer will endeavor to provide Sellers with notice as soon as practical of any demand for any additional amounts payable by Sellers under this Section 3(j). This covenant shall survive the termination of this Agreement and the repurchase by Sellers of any or all of the Purchased Loans.

 

(k)           If Buyer shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof or compliance by Buyer or any corporation controlling Buyer with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to the A&R Closing Date has the effect of reducing the rate of return on Buyer’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which Buyer or such corporation could have achieved but for such adoption, change or compliance by an amount deemed by Buyer, in the exercise of its reasonable business judgment, to be material, then from time to time, after submission by Buyer to Sellers of a written request therefor, Sellers shall promptly (and, in any event, within ten (10) Business Days after Seller receives notice from Buyer, which notice shall be prima facie evidence of such additional amounts absent manifest error), on a joint and several basis, pay to Buyer such additional amount or amounts as will compensate Buyer for such reduction. For the avoidance of doubt, Buyer shall endeavor to apply the implication of any change in a Requirement of Law consistently to all similarly situated counterparties in commercial real estate mortgage loan repurchase facilities. In addition, Buyer will endeavor to provide Sellers with notice as soon as practical of any demand for any additional amounts payable by Sellers under this Section 3(k). This covenant shall survive the termination of this Agreement and the repurchase by Seller of any or all of the Purchased Loans.

 

(l)            In the event that Buyer determines, in its reasonable discretion, that there has been an adverse change in law or interpretation of law regarding (i) the eligibility of this Agreement, the Guaranty and the related Transaction Documents for the safe harbors available to securities contracts under the Bankruptcy Code (including, without limitation, those referenced in Section 23), (ii) the nature and benefits of such safe harbors as more fully set forth in Section 23, or (iii) the availability of such safe harbors to Buyer in the manner more fully set forth in Section 23 (a “Safe Harbor Event”), Buyer may, in its sole discretion, deliver a written notice to Sellers (the “Safe Harbor Notice”) specifying that a Safe Harbor Event has occurred and setting forth a revised Swingline Availability Period End Date and/or Term Availability Period End Date, in each case, determined by Buyer, which revised Swingline Availability Period End Date and/or Term Availability Period End Date may be the date of such Safe Harbor Notice.

 

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(m)          If a Material Default shall occur with respect to a Transaction, Buyer may, in its sole discretion, deliver a written notice to the applicable Seller (a “Defaulted Loan Repurchase Notice”) setting forth a revised Repurchase Date for such Transaction, which date shall be no less than two (2) Business Days after delivery of such Defaulted Loan Repurchase Notice.  For the avoidance of doubt, the delivery of a Defaulted Loan Repurchase Notice in respect of a Transaction shall have no effect on any other Transaction.

 

(n)           The applicable Seller shall, from time to time for each Transaction, prepay the Purchase Price on account of such Transaction to ensure that at no time shall the Purchase Price Rate for each such Transaction exceed the Maximum Purchase Price Rate then in effect for each such Transaction (any such amount, a “Purchase Price Amortization Amount”).  Concurrently with any reduction in the Maximum Purchase Price Rate in respect of any Transaction (in accordance with the definition thereof and the Confirmation evidencing such Transaction) that results in the Purchase Price Rate for any Transaction exceeding the reduced Maximum Purchase Price Rate for such Transaction, the applicable Seller shall pay to Buyer an amount equal to such excess, which Buyer shall apply in reduction of the Purchase Price for such Transaction.

 

(o)           If a Concentration Limit Event shall occur, Buyer may, in its sole discretion, deliver a written notice to Sellers (a “Concentration Limit Payment Notice”) setting forth the related Concentration Limit Amount and setting forth the date for payment of such Concentration Limit Amount, which date shall be no less than ten (10) Business Days after delivery of such Concentration Limit Payment Notice.  Sellers shall, on a joint and several basis, pay to Buyer any Concentration Limit Amounts contained in any Concentration Limit Payment Notice no later than the date specified for payment in such Concentration Limit Payment Notice. It is agreed that no Concentration Limit Amount shall be considered “outstanding” until such amount is not paid on the Business Day specified for payment in the applicable Concentration Limit Payment Notice.

 

(p)           With respect to each Future Funding Loan, upon the applicable Seller’s (or any of its Affiliates’) receipt of notice of litigation commenced by the related Mortgagor (or any Affiliate of such Mortgagor), alleging any failure by such Seller (or any Affiliate thereof), Buyer or any other Person to fund any future funding obligations under any Future Funding Loan, such Seller shall immediately provide written notice thereof to Buyer (annexing the notice of litigation and such other documentation as may be relevant or appropriate), upon receipt of which Buyer may request additional information and/or deliver a notice to such Seller declaring that, as of a date not less than fifteen (15) Business Days after such notice from Buyer, the “Repurchase Date” in respect of the Transaction to which such Future Funding Loan relates shall be deemed to occur, and such Seller shall repurchase such Transaction on such deemed Repurchase Date.

 

(q)           Sellers may, at any time in its sole discretion, deliver to Buyer a Remainder Interest Transfer Notice with respect to a Purchased Loan which shall identify such Purchased Loan and shall specify an intended Remainder Interest Transfer Date on which QRS Seller intends to transfer the Remainder Interest related to such Purchased Loan to TRS Seller. The transfer of the Remainder Interests in accordance with the related Remainder Interest Transfer Notice from QRS Seller to TRS Seller shall be subject to the following conditions precedent:

 

(i)          receipt by Buyer of a fully completed Remainder Interest Transfer Notice duly executed by Sellers not less than two (2) Business Days prior to the intended Remainder Interest Transfer Date;

 

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(ii)         the Repurchase Date for the Transaction to which such Remainder Interest Transfer Notice relates shall not have occurred;

 

(iii)        as of the Remainder Interest Transfer Date (A) no monetary Default, material non-monetary Default or Event of Default under this Agreement shall have occurred and be continuing, (B) no Margin Deficit shall be outstanding, (C) no Concentration Limit Amount shall be outstanding, (D) no  Purchase Price Amortization Amount shall be outstanding, and (E)  no other payment obligation shall remain outstanding (including, without limitation, any amounts payable pursuant to the Fee Agreement);

 

(iv)       the representations and warranties made by Sellers in each of the Transaction Documents shall be true and correct in all material respects as of the Remainder Interest Transfer Date, before and after giving effect to such transfer of Remainder Interests, as though made on such Remainder Interest Transfer Date (except to the extent such representations and warranties are made as of a particular date and except to the extent of any exceptions listed on Schedule 2 of the applicable Transaction Request), and TRS Seller, QRS Seller, Guarantor and Pledgor shall each be in compliance with their respective covenant obligations under each of the Transaction Documents;

 

(v)        TRS Seller and Buyer shall have entered into a Confirmation in respect of the related Purchased Loan, in replacement of the then existing Confirmation between Buyer and QRS Seller related to such Purchased Loan, which replacement Confirmation shall be deemed to replace such existing Confirmation on the Remainder Interest Transfer Date and shall be deemed to be a continuation of the Transaction under the replaced Confirmation (and which replacement Confirmation shall, for the avoidance of doubt, retain the same Purchase Date and contain the same dates for adjustment of the Maximum Purchase Price Rate, Applicable Spread, Buyer LTV Target, Buyer LTV Maximum and Extension Fee Payment Date as were set forth in the existing Confirmation); and

 

(vi)       to Seller’s knowledge, no event has occurred and is continuing which is reasonably likely to result in a Material Adverse Effect.

 

Upon the satisfaction of the foregoing conditions precedent, on or promptly after the intended Remainder Interest Transfer Date, QRS Seller shall transfer to TRS Seller, and TRS Seller shall receive and accept, for good and valuable consideration agreed between QRS Seller and TRS Seller, all Remainder Interests related to such Purchased Loan, and thereafter, for all purposes, TRS Seller shall be the “applicable Seller” in respect of such Purchased Loan.  Concurrently with each such transfer of Remainder Interest with respect to any Purchased Loan, Sellers shall notify Buyer in writing (which may be delivered by email) that the transfer of such Remainder Interests has been concluded and confirm the Remainder Interest Transfer Date therefor, and shall further notify Custodian and the applicable Servicer of such Purchased Loan of such transfer of Remainder Interests in accordance with the Custodial Agreement and applicable Servicing Agreement, respectively. In connection with any such transfer of Remainder Interests, upon the reasonable request of Buyer, at the sole expense of Sellers, Sellers will promptly and duly execute and deliver such further instruments and documents and take such further actions as Buyer may reasonably request for the purposes of obtaining or preserving the full benefits of this Agreement including the first priority security interest granted hereunder and of the rights and powers herein granted.

 

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(r)            Sellers may, in their sole discretion (but acting jointly), by written notice to Buyer delivered no earlier than 120 days before the Term Availability Period End Date and not later than 30 days before the Term Availability Period End Date, elect to extend the date on which the Term Maturity Date would otherwise occur pursuant to clause (a) of the definition of “Term Maturity Date” from the Term Availability Period End Date until the Term Amortization Period End Date (such Sellers option, the “Term Amortization Period Option”), and in conjunction with such exercise may, in their sole discretion (but acting jointly), elect to permanently reduce the Maximum Purchase Price Rate for each Term Transaction to the lesser of (x) 65% or (y) the Purchase Price Rate in effect for each such Term Transaction on the Term Availability Period End Date.  If Sellers have elected to exercise the Term Amortization Period Option and, as of the Term Availability Period End Date, each of the following conditions precedent shall have been satisfied, the Term Amortization Period Option (and the corresponding permanent reduction to the Maximum Purchase Price Rate, if any) shall be deemed effective: (i) no monetary Default, material non-monetary Default or Event of Default under this Agreement shall have occurred and be continuing, (ii) no Margin Deficit shall be outstanding, (iii) no Concentration Limit Amount shall be outstanding, (iv) no Purchase Price Amortization Amount shall be outstanding (calculated giving effect to any permanent reduction of the Maximum Purchase Price Rate elected by the Sellers in connection with such Term Amortization Period Option), (v) no other payment obligation shall remain outstanding, (vi) there are at least three (3) Purchased Loans subject to Term Transactions, and (vii) the aggregate outstanding Purchase Prices of all Term Transactions is at least $25,000,000.

 

(s)           If, at any time during the Clean-Up Period, either (i) there are two (2) or fewer Purchased Loans subject to Term Transactions, or (ii) the aggregate outstanding Purchase Prices of all Term Transactions is less than $25,000,000, Buyer may, in its sole discretion, deliver a written notice to the applicable Sellers (a “Clean-Up Repurchase Notice”) setting forth a revised Repurchase Date for all Term Transactions, which date shall be no less than two (2) Business Days after the delivery of such Clean-Up Repurchase Notice; provided that if, within two (2) Business Days of the delivery of such Clean-Up Repurchase Notice, Sellers have paid to Buyer all available funds on hand in payment of the Repurchase Prices for all Term Transactions, and if such amount is less than full amount of the Repurchase Prices for all Term Transactions, Sellers may extend the date for payment of the remaining outstanding portion of the Repurchase Prices for all Term Transactions until the date that is three (3) Business Days after the date of delivery of the Clean-Up Repurchase Notice by delivering to Buyer on or before such second (2nd) Business Day after the date of delivery of such Clean-Up Repurchase Notice a Payment Extension Certificate.   For the avoidance of doubt, the delivery of a Clean-up Repurchase Notice in respect of all then outstanding Term Transactions shall have no effect on any then outstanding Swingline Transaction.

 

	
4.

	
MARGIN MAINTENANCE

 

(a)           Upon the occurrence of a Credit Event relating to a Purchased Loan, Buyer may re-determine the value of the Mortgaged Property collateralizing such Purchased Loan in Buyer’s sole discretion and, if taking into account such re-determined value, the Buyer LTV of such Purchased Loan is greater than the Buyer LTV Maximum then applicable to such Purchased Loan (such occurrence, a “Margin Deficit”), Buyer shall calculate the amount required to reduce the Purchase Price outstanding for such Purchased Loan such that the Buyer LTV of such Purchased Loan, when recalculated with such reduced Purchase Price, is equal to the Buyer LTV Target then applicable to such Purchased Loan (such amount, a “Margin Deficit Amount”) and may require Sellers to pay to Buyer such Margin Deficit Amount. In payment or partial payment of such Margin Deficit Amount, Buyer may, in its sole discretion, first elect to calculate if any Margin Excess exists in respect of any other Purchased Loan and, if such Margin Excess exists on such

 

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other Purchased Loan, Buyer may elect, in its sole discretion, to reallocate the related Margin Excess Amount by increasing the Purchase Price of such other Purchased Loan and, on a dollar for dollar basis, decreasing the Purchase Price of the Purchased Loan to which such Margin Deficit relates (a “Reallocation”).  For the avoidance of doubt, a Reallocation may occur between Purchased Loans irrespective of whether such Purchased Loans relate solely to Swingline Transactions, solely to Term Transactions or to any combination of Swingline Transactions and Term Transactions.  To the extent  that a Reallocation takes place between a Purchased Loans related to one Seller and a Purchased Loan related to a different Seller, then such Sellers shall true-up the impact of such Reallocation. If no Reallocation takes place, or if a Reallocation does take place but such Reallocation does not result in payment in full of the Margin Deficit Amount, Buyer may deliver a written notice to Sellers (a “Margin Deficit Notice”) requiring Sellers to pay the outstanding portion of the Margin Deficit Amount and Sellers shall be obligated to pay to Buyer, within two (2) Business Days of the delivery of such Margin Deficit Notice by Buyer to Sellers, the remaining outstanding portion of the Margin Deficit Amount; provided that if, within two (2) Business Days of the delivery of such Margin Deficit Notice, Sellers have paid to Buyer all available funds on hand in payment of the remaining outstanding portion of the Margin Deficit Amount, and if such amount is less than the remaining outstanding portion of the Margin Deficit Amount, Sellers may extend the date for payment of the remaining outstanding portion of the Margin Deficit Amount until the date that is three (3) Business Days after the date of delivery of the Margin Deficit Notice by delivering to Buyer on or before such second (2nd) Business Day after the date of delivery of such Margin Deficit Notice a Payment Extension Certificate.  All Margin Deficit Amounts paid to Buyer pursuant to this Section 4(a) with respect to any Purchased Loan shall be applied by Buyer to reduce the Purchase Price of such Purchased Loan. Notwithstanding the foregoing, upon receipt of a Margin Deficit Notice with respect to a Purchased Loan, the applicable Seller may elect, rather than pay to Buyer the Margin Deficit Amount, to repurchase such Purchased Loan on or before the date for payment of such Margin Deficit Amount set forth in such Margin Deficit Notice, by payment of such Purchased Loan’s Repurchase Price in accordance with Section 3(d). The failure or delay of Buyer, on any one or more occasions, to exercise its rights under this Section 4(a) shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of Buyer to do so at a later date, or limit Buyer’s rights under this Agreement or otherwise existing by law or in any way create additional rights for Sellers.

 

(b)           From time to time, the applicable Seller may request that Buyer determine whether, with respect to any Purchased Loan, in Buyer’s sole discretion, both (i) the Buyer LTV of such Purchased Loan is less than the Buyer LTV Target then applicable to such Purchased Loan, and (ii) the Purchase Price Rate of such Purchased Loan is less than the Maximum Purchase Price Rate then applicable to such Purchased Loan (such occurrence, a “Margin Excess”).  If, following such Seller’s request, Buyer determines that there exists a Margin Excess with respect to any Purchased Loan, Buyer may calculate the amount of such Margin Excess, which shall equal the lesser of (A) the amount by which the Purchase Price of such Purchased Loan could be increased such that the Buyer LTV of such Purchased Loan, when recalculated with such increased Purchase Price, is equal to the Buyer LTV Target then applicable to such Purchased Loan, and (B) the amount by which the Purchase Price of such Purchased Loan could be increased such that the Purchase Price Rate of such Purchased Loan, when recalculated with such increased Purchase Price, is equal to the Maximum Purchase Price Rate then applicable to such Purchased Loan (such lesser amount, a “Margin Excess Amount”).  Upon request by the applicable Seller, Buyer may, in its sole discretion, advance all or any portion of such Margin Excess Amount to such Seller, and concurrently increase the Purchase Price of such Purchased Loan, or Buyer may, in its sole discretion, undertake a Reallocation in respect of such Margin Excess Amount in partial or complete satisfaction of a Margin Deficit.

 

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	5.	
INCOME PAYMENTS AND PRINCIPAL PAYMENTS

 

(a)           Prior to the date hereof, a Servicing Account has been established by Servicer and a the Waterfall Account has been established by QRS Seller at the Depository.  Pursuant to the existing Blocked Account Agreement, Buyer has sole dominion and control over the Waterfall Account.  All Income in respect of the Purchased Loans, as well as any interest received from the reinvestment of such Income, shall be deposited directly into a Servicing Account and, pursuant to applicable Servicing Agreement, shall within two (2) Business Days, be transferred by the applicable Servicer (net of any withdrawals permitted under the applicable Servicing Agreement) from such Servicing Account to the Waterfall Account and, upon such transfer, shall be remitted by the Depository in accordance with the applicable provisions of Section 5(b), Section 5(c), Section 5(d), Section 5(e), Section 5(f) and Section 14(b)(iii).

 

(b)           So long as no Default or Event of Default shall have occurred and be continuing, all Income (other than Principal Payments) received by the Depository in respect of the Purchased Loans and on deposit in the Waterfall Account shall be applied, upon the direction and instruction of Buyer, by the Depository on each Waterfall Date as follows:

 

(i)          first, to Servicer, Depository and Custodian an amount equal to the fees and expenses due and payable to the Servicer, Depository and Custodian, as applicable;

 

(ii)         second, to Buyer, pro rata, (A) any outstanding Margin Deficit Amount, (B) any outstanding Purchase Price Amortization Amount, and (C) any outstanding amounts payable pursuant to the Fee Agreement;

 

(iii)        third, to Buyer, an amount equal to the Price Differential outstanding in respect of all of the Purchased Loans as of such Waterfall Date;

 

(iv)        fourth, to Buyer, any other outstanding amounts then due and payable under this Agreement, the Fee Agreement or the other Transaction Documents; and

 

(v)         fifth, to Sellers (for distribution and allocation between Sellers as Sellers shall determine), an amount equal to the remainder (net of any minimum balance requirements applicable to the Waterfall Account).

 

(c)           So long as no Default or Event of Default shall have occurred and be continuing, all Principal Payments received by the Depository in respect of the Purchased Loans and on deposit in the Waterfall Account shall be applied, upon the direction and instruction of Buyer, by the Depository two (2) Business Days after receipt of such amounts in the Waterfall Account, as follows:

 

(i)          first, to Buyer in an amount equal to the product of (A) the Purchase Price Rate of the Purchased Loan in respect of which the Principal Payment was received, and (B) the amount of such Principal Payment, which shall be applied in reduction of the outstanding Purchase Price of such Purchased Loan;

 

(ii)         second, to Buyer an amount equal to the Price Differential accrued and outstanding in respect of the Purchase Price repaid pursuant to clause (i) above;

 

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(iii)        third, to Buyer, pro rata, (A) any outstanding Margin Deficit Amount, (B) any outstanding Purchase Price Amortization Amount, and (C) any outstanding amounts payable pursuant to the Fee Agreement;

 

(iv)        fourth, to Buyer, first (A) any other outstanding amounts then due and payable under this Agreement, the Fee Agreement or the other Transaction Documents, and then (B) solely for Principal Payments received by the Depository in respect of Purchased Loans related to Term Transactions, and solely to the extent that the Term Availability Period End Date has occurred, the remaining amount of such Principal Payment which shall be applied in reduction of the outstanding Purchase Price of such Purchased Loan related to such Term Transaction, and, to the extent of any excess remaining, to thereafter be applied pro rata in reduction of the outstanding Purchase Price of all remaining Purchased Loans related to Term Transactions; and

 

(v)         fifth, to Sellers (for distribution and allocation between Sellers as Sellers shall determine), an amount equal to the remainder (net of any minimum balance requirements applicable to the Waterfall Account).

 

(d)           If at any time a Default shall have occurred and be continuing, but no Event of Default shall have occurred and be continuing, all Income (other than Principal Payments) received by the Depository in respect of the Purchased Loans and on deposit in the Waterfall Account shall be applied, upon the direction and instruction of Buyer, by the Depository on each Waterfall Date as follows:

 

(i)          first, to Servicer, Depository and Custodian an amount equal to the fees and expenses due and payable to the Servicer, Depository and Custodian, as applicable;

 

(ii)         second, to Buyer, pro rata, (A) any outstanding Margin Deficit Amount, (B) any outstanding Purchase Price Amortization Amount, and (C) any outstanding amounts payable pursuant to the Fee Agreement;

 

(iii)        third, to Buyer, an amount equal to the Price Differential outstanding in respect of all of the Purchased Loans as of such Waterfall Date;

 

(iv)        fourth, to Buyer, any other outstanding amounts then due and payable under this Agreement, the Fee Agreement or the other Transaction Documents; and

 

(v)         fifth, to Depository, an amount equal to the remainder (net of any minimum balance requirements applicable to the Waterfall Account) to hold until such time as (A) Buyer provides written notice to Depository that such Default has been cured to the satisfaction of Buyer in its sole discretion, at which time Depository shall apply such funds to Sellers (for distribution and allocation between Sellers as Sellers shall determine) or (B) such Default matures into an Event of Default, in which case such funds shall then be applied in accordance with Section 5(f).

 

(e)           If at any time a Default shall have occurred and be continuing, but no Event of Default shall have occurred and be continuing, all Principal Payments received by the Depository in respect of the Purchased Loans and on deposit in the Waterfall Account shall be applied, upon the direction and instruction of Buyer, by the Depository two (2) Business Days after receipt of such amounts in the Waterfall Account, as follows:

 

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(i)          first, to Buyer in an amount equal to the product of (A) the Purchase Price Rate of the Purchased Loan in respect of which the Principal Payment was received, and (B) the amount of such Principal Payment, which shall be applied in reduction of the outstanding Purchase Price of such Purchased Loan;

 

(ii)         second, to Buyer, an amount equal to the Price Differential accrued and outstanding in respect of the Purchase Price repaid pursuant to clause (i) above;

 

(iii)        third, to Buyer, pro rata, (A) any outstanding Margin Deficit Amount, (B) any outstanding Purchase Price Amortization Amount, and (C) any outstanding amounts payable pursuant to the Fee Agreement;

 

(iv)        fourth, to Buyer, first (A) any other outstanding amounts then due and payable under this Agreement, the Fee Agreement or the other Transaction Documents, and then (B) solely for Principal Payments received by the Depository in respect of Purchased Loans related to Term Transactions, and solely to the extent that the Term Availability Period End Date has occurred, the remaining amount of such Principal Payment which shall be applied in reduction of the outstanding Purchase Price of such Purchased Loan related to such Term Transaction, and, to the extent of any excess remaining, to thereafter be applied pro rata in reduction of the outstanding Purchase Price of all remaining Purchased Loans related to Term Transactions; and

 

(v)         fifth, to Depository, an amount equal to the remainder (net of any minimum balance requirements applicable to the Waterfall Account) to hold until such time as (A) Buyer provides written notice to Depository that such Default has been cured to the satisfaction of Buyer in its sole discretion, at which time Depository shall apply such funds to Sellers (for distribution and allocation between Sellers as Sellers shall determine) or (B) such Default matures into an Event of Default, in which case such funds shall then be applied in accordance with Section 5(f).

 

(f)            If an Event of Default shall have occurred and be continuing, all Income (including Principal Payments) received by the Depository in respect of the Purchased Loans shall be applied by the Depository upon the direction and instruction of Buyer delivered from time to time (as determined by Buyer) in an order and priority determined by Buyer in its sole discretion; provided that once all amounts owing to Servicer, Custodian, Depositary and Buyer pursuant to the Transaction Documents have been paid in full, any remaining amounts in the Waterfall Account shall be distributed to Sellers (for distribution and allocation between Sellers as Sellers shall determine).

 

	6.	
SECURITY INTEREST

 

Buyer, QRS Seller and TRS Seller intend that all Transactions hereunder be sales to Buyer of the Purchased Loans and not loans from Buyer to the applicable Seller secured by the Purchased Loans.  However, in the event that, other than for tax purposes as more fully described in Section 23(i), any such Transaction is deemed to be a loan, Sellers hereby pledge all of their respective right, title, and interest in, to and under and grant a first priority Lien on, and security interest in, all of the following property, whether now owned or hereafter acquired, now existing or hereafter created and wherever located (collectively, the “Collateral”) to Buyer to secure the payment and performance of all other amounts or obligations owing to Buyer pursuant to this Agreement and the related documents described herein:

 

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(a)           the Purchased Loans, the Servicing Rights, Servicing Agreements, Servicing Records, insurance relating to the Purchased Loans, and collection and escrow accounts relating to the Purchased Loans;

 

(b)           all “general intangibles”, “accounts” and “chattel paper” as defined in the UCC relating to or constituting any and all of the foregoing; and

 

(c)           all replacements, substitutions or distributions on or proceeds, payments, Income and profits of, and records (but excluding any financial models or other proprietary information) and files relating to any and all of any of the foregoing.

 

Sellers hereby pledge all of their respective right, title, and interest in, to and under and grant a first priority Lien on, and security interest in the Waterfall Account and all amounts from time to time on deposit in the Waterfall Account, to Buyer to secure the payment and performance of all other amounts or obligations owing to Buyer pursuant to this Agreement and the other Transaction Documents.

 

Buyer’s security interest in the Collateral shall terminate only upon termination of Sellers’ obligations under this Agreement and the documents delivered in connection herewith and therewith; provided, that notwithstanding the foregoing, Buyer’s security interest in the Collateral related to any Purchased Loans repurchased by the applicable Seller pursuant to Section 3(d) shall terminate simultaneously with such repurchase.  Upon such termination, Buyer shall return the Collateral to Sellers and shall, following a request therefor from Sellers, deliver to Sellers such UCC termination statements and other release documents as Sellers shall have requested and as may be commercially reasonable.  For purposes of the grant of the security interest pursuant to this Section 6, this Agreement shall be deemed to constitute a security agreement under the New York Uniform Commercial Code (the “UCC”).  Buyer shall have all of the rights and may exercise all of the remedies of a secured creditor under the UCC and the other laws of the State of New York.  In furtherance of the foregoing, (a) Buyer, at Sellers’ sole joint and several cost and expense, shall cause to be filed in such locations as may be reasonably necessary to perfect and maintain perfection and priority of the security interest granted hereby, UCC financing statements and continuation statements (collectively, the “Filings”), and shall forward copies of such Filings to Sellers upon completion thereof, and (b) Sellers shall from time to time take such further actions as may be reasonably requested by Buyer to maintain and continue the perfection and priority of the security interest granted hereby (including marking its records and files to evidence the interests granted to Buyer hereunder).

 

	7.	
PAYMENT, TRANSFER AND CUSTODY

 

(a)           On the Purchase Date for each Transaction, ownership of the Purchased Loans shall be transferred to Buyer or its designee (including the Custodian) against the simultaneous transfer of the Purchase Price from Buyer to an account of the applicable Seller specified in writing by such Seller relating to such Transaction.

 

(b)           On or before each Purchase Date for any Eligible Loan that the applicable Seller proposes to sell to Buyer hereunder, such Seller shall deliver or cause to be delivered to Custodian (with an electronic copy to Buyer) a fully completed and signed Custodial Delivery in the form of Exhibit III together with all attachments and schedules thereto and the Purchased Loan File, and in respect thereof, Custodian shall have delivered to Buyer a Trust Receipt; provided, that notwithstanding the foregoing, upon request of such Seller, Buyer in its sole good faith discretion may elect to permit such Seller to deliver or cause to be delivered to Custodian (with an electronic copy to Buyer) such fully

 

39

completed and signed Custodial Delivery, together with all attachments and schedules thereto, by not later than the third (3rd) Business Day after the related Purchase Date so long as such Seller causes an Acceptable Attorney to deliver to Buyer and the Custodian an Attorney’s Bailee Letter on or prior to such related Purchase Date; provided, further, that if, in respect of any Purchased Loan as to which such Seller has delivered to Custodian (with an electronic copy to Buyer) the Custodial Delivery after the Purchase Date therefor, Buyer may, in its sole good faith discretion, declare the “Repurchase Date” for such Purchased Loan to have occurred if, as of five (5) Business Days after the applicable Purchase Date, Custodian has not delivered to Buyer an acceptable Trust Receipt.  For the purposes of this Agreement, the Purchased Loan File shall include the following documents (collectively, together with any additional documents delivered pursuant to Section 7(c), the “Purchased Loan File”):

 

(i)          the original Mortgage Note bearing all intervening endorsements;

 

(ii)         an original or copy of any loan agreement and any guarantee executed in connection with the Mortgage Note;

 

(iii)        an original or copy of the Mortgage with evidence of recordation, or submission for recordation, from the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located;

 

(iv)       originals or copies of all assumption, modification, consolidation or extension agreements with evidence of recordation, or submission for recordation, from the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located;

 

(v)        an original of the Assignment Documents in Blank;

 

(vi)       originals or copies of all intervening assignments of mortgage with evidence of recordation, or submission for recordation, from the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located;

 

(vii)      an original or copy of the attorney’s opinion of title and abstract of title or the original mortgagee title insurance policy, or if the original mortgagee title insurance policy has not been issued, the irrevocable marked commitment to issue the same (or irrevocable signed pro forma policy);

 

(viii)     an original or copy of any security agreement, chattel mortgage or equivalent document executed in connection with the Purchased Loan;

 

(ix)        an original or copy of the assignment of leases and rents, if any, with evidence of recordation, or submission for recordation, from the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located;

 

(x)         originals or copies of all intervening assignments of assignment of leases and rents, if any, or copies thereof, with evidence of recordation, or submission for recordation, from the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located;

 

(xi)        a copy of the UCC financing statements and all necessary UCC continuation statements with evidence of filing or submission for filing thereon, and UCC assignments

 

40

prepared by the applicable Seller in blank, which UCC assignments shall be in form and substance acceptable for filing;

 

(xii)       an environmental indemnity agreement (if any);

 

(xiii)      a closing settlement statement executed by Mortgagor;

 

(xiv)      Mortgagor’s certificate or title affidavit (if any) to the extent in the applicable Seller’s possession of in the possession of any Affiliate of such Seller;

 

(xv)       a survey of the Mortgaged Property as accepted by the title company for issuance of the Title Policy;

 

(xvi)      originals or copies of all of all legal opinions;

 

(xvii)     originals or copies of assignment of interest rate protection agreements;

 

(xviii)    originals or copies of any assignment of permits, contracts and agreements; and

 

(xix)       originals or copies of any other material loan documents, including, but not limited to, any post-closing agreements or side letters.

 

(c)           From time to time, Sellers shall forward to the Custodian additional original documents or additional documents evidencing any assumption, modification, consolidation or extension of a Purchased Loan approved in accordance with the terms of this Agreement, and upon receipt of any such other documents, the Custodian shall hold such other documents as Buyer shall request from time to time in accordance with the Custodial Agreement and such additional documents shall be deemed part of the Purchased Loan File.  With respect to any documents which have been delivered or are being delivered to recording offices for recording and have not been returned to the applicable Seller in time to permit their delivery hereunder at the time required, in lieu of delivering such original documents, such Seller shall deliver to Buyer a true copy thereof.  The applicable Seller shall deliver or cause to be delivered such original documents to the Custodian promptly when they are received.

 

(d)           The Purchased Loan File shall be maintained in accordance with the Custodial Agreement.  Any document that is part of the Purchased Loan File that is not delivered to Buyer or its designee (including the Custodian) shall be held in trust by the applicable Seller or its designee for the benefit of Buyer as the owner thereof.  The applicable Seller or its designee shall maintain a copy of the Purchased Loan File and the originals of the Purchased Loan File not delivered to Buyer or its designee.  The possession of the Purchased Loan File by the applicable Seller or its designee is at the will of Buyer for the sole purpose of servicing the related Purchased Loan, and such retention and possession by such Seller or its designee is in a custodial capacity only.  The books and records (including, without limitation, any computer records or tapes) of the applicable Seller or its designee shall be marked appropriately to reflect clearly the sale of the related Purchased Loan to Buyer.  The applicable Seller or its designee (including the Custodian) shall release its custody of the Purchased Loan File only in accordance with written instructions from Buyer, unless such release is required as incidental to the servicing of the Purchased Loans, is in connection with a repurchase of any Purchased Loan by the applicable Seller or as otherwise required by law. Upon the repurchase of any Purchased Loan pursuant to this Agreement or the payment in full of such Purchased Loan, as applicable, in either case which shall be evidenced by the Custodian’s receipt of a request for release in the form set forth in the Custodial

 

41

Agreement, Buyer and Custodian shall promptly release the related Purchased Loan File to the applicable Seller or its designee.

 

(e)           With respect to all of the Purchased Loans delivered by Sellers to Buyer or its designee (including the Custodian), each Seller shall execute an omnibus power of attorney substantially in the form of Exhibit V irrevocably, and coupled with an interest, appointing Buyer its attorney-in-fact with full power to (i) at any time that an Event of Default is not then continuing, take such actions as Buyer believes to be reasonably necessary to preserve and protect the Purchased Loans or to preserve and protect Buyer’s interests in the Purchased Loans and the perfection and priority thereof; provided that Buyer may not, pursuant to this clause (i), use such power of attorney to register or record the Purchased Loans in Buyer’s name or in the name of Buyer’s nominee, and (ii) at any time during the continuance of any Event of Default, (A) complete and record the Assignment of Mortgage, (B) complete the endorsement of the Mortgage Note and (C), take such other steps as may be reasonably necessary or desirable to preserve, protect and enforce Buyer’s rights against such Purchased Loans and the related Purchased Loan Files and the Servicing Records and to preserve and protect the perfection and priority of Buyer’s interests in the Purchased Loans.  Buyer shall promptly notify the applicable Seller in the event Buyer takes any action under clause (i) of the foregoing sentence in respect of the power of attorney.

 

(f)           Unless an Event of Default shall have occurred and be continuing, Buyer shall exercise all voting and corporate rights with respect to the Purchased Loans in accordance with the applicable Seller’s written instructions; provided, however, that Buyer shall not be required to follow such Seller’s instructions concerning any vote or corporate right if doing so would, in Buyer’s reasonable business judgment, be inconsistent with or result in any violation of any provision of the Transaction Documents or any Requirement of Law.  Upon the occurrence and during the continuation of an Event of Default, Buyer shall be entitled to exercise all voting and corporate rights with respect to the Purchased Loans without regard to the applicable Seller’s instructions.

 

	8.	
SALE, TRANSFER, HYPOTHECATION OR PLEDGE OF PURCHASED LOANS

 

(a)           Title to all Purchased Loans shall pass to Buyer on the applicable Purchase Date, and Buyer shall have free and unrestricted use of all Purchased Loans, subject however, to the terms of this Agreement.  Nothing in this Agreement or any other Transaction Document shall preclude Buyer from engaging in repurchase transactions with the Purchased Loans or otherwise selling, transferring, pledging, repledging, hypothecating, or rehypothecating the Purchased Loans; provided that (i) unless an Event of Default has occurred and is continuing, Buyer may only engage in repurchase transactions or sell, transfer, pledge, repledge, hypothecate, or rehypothecate the Purchased Loans to Qualified Transferee that is not a Prohibited Transferee or an Affiliate of a Prohibited Transferee, and (ii) no such transaction shall relieve Buyer of its obligations to transfer the Purchased Loans to the applicable Seller on the Repurchase Date of such Purchased Loan or any Early Repurchase Date for such Purchased Loan, pursuant to Section 3(d) or of Buyer’s obligation to apply Income pursuant to Section 5.  In connection with any repurchase transactions or sale, transfer, pledge, repledge, hypothecation, or rehypothecation of the Purchased Loans under this Section 8(a), Buyer may request in writing that the applicable Seller certify within five (5) Business Days that a proposed counterparty is or is not an Affiliate of a Prohibited Transferee; provided that if such Seller does not provide its certification within such time period, such counterparty shall be deemed to not be a Prohibited Transferee and Buyer may proceed with such repurchase transactions or sale, transfer, pledge, repledge, hypothecation, or rehypothecation of the Purchased Loans under this Section 8(a).  Sellers shall not be responsible for any costs incurred by Buyer

 

42

in connection with a transaction entered into pursuant to this Section 8 (including any expenses of the Custodian).

 

(b)           Nothing contained in this Agreement or any other Transaction Document shall obligate Buyer to segregate any Purchased Loans transferred to Buyer by Sellers.  Notwithstanding anything to the contrary in this Agreement or any other Transaction Document, no Purchased Loan shall remain in the custody of Sellers or any Affiliate of Sellers.

 

	9.	
INTENTIONALLY OMITTED

 

	10.	
REPRESENTATIONS

 

Each Seller represents and warrants to Buyer that as of the A&R Closing Date, as of the Purchase Date for the purchase of any Eligible Loan by Buyer from either Seller and any Transaction thereunder, as of any Future Funding Date and at all times while this Agreement and any Transaction hereunder is in full force and effect:

 

(a)           Organization; Power.  Such Seller is duly formed, validly existing and in good standing under the laws and regulations of the state of such Seller’s formation and is duly licensed, qualified, and in good standing in every state where such licensing or qualification is necessary for the transaction of such Seller’s business, except where the failure to maintain such licensing or qualification is not reasonably likely to have a Material Adverse Effect.  Such Seller has the power to own and hold the assets it purports to own and hold, and to carry on its business as now being conducted and proposed to be conducted, and has the power to execute, deliver, and perform its obligations under this Agreement and the other Transaction Documents.

 

(b)           Authorization.  Such Seller is duly authorized to execute and deliver this Agreement, to enter into Transactions contemplated hereunder and to perform its obligations hereunder and has taken all necessary action to authorize such execution, delivery and performance. Such Seller will engage in such Transactions as principal.  The person signing this Agreement on behalf of such Seller is duly authorized to do so on such Seller’s behalf.  Such Seller has obtained all authorizations of any governmental body required in connection with this Agreement and the Transactions hereunder and such authorizations are in full force and effect.

 

(c)           Due Execution; Enforceability.  The Transaction Documents have been or will be duly executed and delivered by Such Seller.  The Transaction Documents constitute the legal, valid and binding obligations of such Seller, enforceable against such Seller in accordance with their respective terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.

 

(d)           Non-Contravention.  Neither the execution and delivery of the Transaction Documents, nor consummation by such Seller of the transactions contemplated by the Transaction Documents (or any of them), nor compliance by such Seller with the terms, conditions and provisions of the Transaction Documents (or any of them) will conflict with or result in a breach of any of the terms or provisions of (i) the organizational documents of such Seller, (ii) any contractual obligation to which such Seller is now a party or the rights under which have been assigned to such Seller or the obligations under which have been assumed by such Seller or to which the assets of such Seller are subject or constitute a default thereunder, or result thereunder in the creation or imposition of any Lien upon any of the assets of such Seller, other than pursuant to the Transaction Documents, (iii) any judgment or order, writ, injunction,

 

43

decree or demand of any court applicable to such Seller, or (iv) any applicable Requirement of Law, in the case of clause (ii) above, to the extent that such conflict or breach would have a Material Adverse Effect.  Such Seller has all necessary licenses, permits and other consents from Governmental Authorities necessary to acquire, own and sell the Purchased Loans and for the performance of its obligations under the Transaction Documents.

 

(e)           Litigation; Requirements of Law.  Except as disclosed in writing to Buyer, there is no action, suit, proceeding, investigation, or arbitration pending or, to the best knowledge of such Seller, threatened against such Seller or any of its assets, which is reasonably likely to have a Material Adverse Effect.  Such Seller is in compliance in all material respects with all Requirements of Law.  Such Seller is not in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or Governmental Authority.

 

(f)            No Broker.  Such Seller has not dealt with any broker, investment banker, agent, or other Person (other than Buyer or an Affiliate of Buyer) who may be entitled to any commission or compensation in connection with the sale of Purchased Loans to Buyer pursuant to any of the Transaction Documents.

 

(g)           Good Title to Purchased Loans.  Immediately prior to the purchase of any Purchased Loans by Buyer from such Seller, such Purchased Loans are free and clear of any Lien, encumbrance or impediment to transfer (including any “adverse claim” as defined in Section 8-102(a)(1) of the UCC) (or any such Lien, encumbrance or impediment to transfer will be released simultaneously with such purchase), and such Seller is the record and beneficial owner of and has good and marketable title to and the right to sell and transfer such Purchased Loans to Buyer and, upon transfer of such Purchased Loans to Buyer, Buyer shall be the owner of such Purchased Loans free of any adverse claim, subject to the rights of such Seller pursuant to the terms of this Agreement and of any Servicer pursuant to the terms of the applicable Servicing Agreement.  In the event the related Transaction is recharacterized as a secured financing of the Purchased Loans, the provisions of this Agreement are effective to create in favor of Buyer a valid security interest in all rights, title and interest of such Seller in, to and under the Collateral and Buyer shall have a valid, perfected first priority security interest in the Purchased Loans.

 

(h)           No Default.  No Default or Event of Default exists under or with respect to the Transaction Documents that has not been disclosed to Buyer.

 

(i)            Representations and Warranties Regarding Purchased Loans; Delivery of Purchased Loan File.  Such Seller represents and warrants to Buyer that each Purchased Loan sold in a Transaction hereunder by such Seller, as of the related Purchase Date for such Transaction and as of any Business Day thereafter, conforms to the applicable representations and warranties set forth in Exhibit VI in all material respects, except as disclosed to Buyer in writing.  With respect to each Purchased Loan, the Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents required to be delivered under this Agreement and the Custodial Agreement for such Purchased Loan have been delivered to Buyer or the Custodian on its behalf (or shall be delivered in accordance with the time periods set forth herein).

 

(j)            Adequate Capitalization; No Fraudulent Transfer.  Such Seller has adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations.  Such Seller is generally able to pay, and as of the A&R Closing Date is paying, its debts as they come due.  Such Seller is Solvent.  Such Seller does not intend to, and does

 

44

not believe that it will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash anticipated to be received by it and the timing of the amounts of cash anticipated to be payable on or in respect of its debt.  Such Seller has not entered into any Transaction Document or any Transaction pursuant thereto in contemplation of insolvency or with actual intent to hinder, delay or defraud any creditor.

 

(k)           Consents.  No consent, approval or other action of, or filing by such Seller with, any Governmental Authority or any other Person is required to authorize, or is otherwise required in connection with, the execution, delivery and performance of any of the Transaction Documents (other than consents, approvals and filings that have been obtained or made, as applicable).

 

(l)            Members.  Such Seller does not have any members other than Pledgor.  Guarantor is the indirect owner of 100% of the membership interests of such Seller and Pledgor.

 

(m)          Organizational Documents.  Such Seller has delivered to Buyer certified copies of its certificate of formation and limited liability company operating agreement, which constitute all of its organizational documents, together with all amendments thereto, if any.

 

(n)           No Encumbrances.  Except to the extent expressly set forth in this Agreement, there are (i) no outstanding rights, options, warrants or agreements on the part of such Seller for a purchase, sale or issuance, in connection with the Purchased Loans, (ii) no agreements on the part of such Seller to issue, sell or distribute the Purchased Loans, and (iii) no obligations on the part of such Seller (contingent or otherwise) to purchase, redeem or otherwise acquire any securities or any interest therein or to pay any dividend or make any distribution in respect of the Purchased Loans.

 

(o)           Federal Regulations.  None of QRS Seller, TRS Seller, Guarantor or Pledgor is required to register as an “investment company” or is a company “controlled by an investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

(p)           Taxes.  QRS Seller, TRS Seller, Guarantor and Pledgor have filed or caused to be filed all required U.S. federal and other material tax returns and have paid all Taxes imposed on them and any of their assets by any Governmental Authority except for any Taxes that are being appropriately contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves have been provided in accordance with GAAP.  No Tax liens have been filed against any of its or its respective assets and no claims have been asserted in writing with respect to any such Taxes, fees or other charges.

 

(q)           ERISA.  None of QRS Seller, TRS Seller, Guarantor or Pledgor nor any ERISA Affiliate maintains any Plans and none of QRS Seller, TRS Seller, Guarantor or Pledgor nor any ERISA Affiliate makes or has any obligation to make any contributions to, or otherwise has any liability with respect to any Plans or any Multiemployer Plans.

 

(r)            Judgments/Bankruptcy.  Except as disclosed in writing to Buyer, there are no judgments against QRS Seller, TRS Seller, Guarantor or Pledgor unsatisfied of record or docketed in any court located in the United States of America.  No Act of Insolvency has ever occurred with respect to QRS Seller, TRS Seller, Guarantor or Pledgor.

 

(s)           Full and Accurate Disclosure.  No information contained in the Transaction Documents, or any written statement prepared and delivered by QRS Seller, TRS Seller, Guarantor or Pledgor

 

45

pursuant to the terms of the Transaction Documents, contains any untrue statement of a material fact or omits to state a material fact, when taken together with all other information delivered by QRS Seller, TRS Seller, Guarantor and Pledgor, necessary to make the statements contained herein or therein not misleading in light of the circumstances under which they were made; provided, that with regard to any certification relating to financial prospects, forecasts, budgets and other forward looking information, such Seller represents hereby that such information was prepared in a good faith based on assumptions believed by such Seller to be reasonable at the time made and, to the extent that such Seller is actually aware of information which would impact such certifications, the accuracy of any such assumptions or the reasonableness of any belief in any such assumptions, such Seller has informed Buyer of such information in writing.

 

(t)            Financial Information.  All financial data concerning QRS Seller, TRS Seller, Guarantor and Pledgor that has been delivered by or on behalf of such Seller to Buyer is true, complete and correct in all material respects and has been prepared in accordance with GAAP.  To the actual knowledge of such Seller, all financial data concerning the Purchased Loans that has been delivered by or on behalf of such Seller to Buyer is true, complete and correct in all material respects.  Since the delivery of such data, except as otherwise disclosed in writing to Buyer, there has been no change in the financial position of QRS Seller, TRS Seller, Guarantor and Pledgor or in the operations of QRS Seller, TRS Seller, Guarantor and Pledgor or, to the actual knowledge of such Seller, the financial position of the Purchased Loans, which change is reasonably likely to have in a Material Adverse Effect.

 

(u)           Notice Address; Jurisdiction of Organization.  On the A&R Closing Date, such Seller’s address for notices and jurisdiction of organization is located at the address set forth in Annex I.  The location where such Seller keeps its books and records, including all computer tapes and records relating to the Collateral, is its notice address.

 

(v)           Prohibited Person.  None of the funds or other assets of QRS Seller, TRS Seller, Guarantor or Pledgor constitute property of, or are beneficially owned, directly or indirectly, by a Prohibited Person with the result that the investment in QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable (whether directly or indirectly), is prohibited by law or the entering into this Agreement by Buyer is in violation of law.  No Prohibited Person has any interest of any nature whatsoever in QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable, with the result that the investment in QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable (whether directly or indirectly), is prohibited by law or the entering into this Agreement is in violation of law.  None of the funds of QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable, have been derived from any unlawful activity with the result that the investment in QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable (whether directly or indirectly), is prohibited by law or the entering into this Agreement is in violation of law. None of QRS Seller, TRS Seller, Guarantor or Pledgor or any of their Affiliates has conducted or will conduct any business or has engaged or will engage in any transaction dealing with any Prohibited Person in violation of applicable laws.  None of QRS Seller, TRS Seller, Guarantor or Pledgor is a Prohibited Person.

 

	11.	
NEGATIVE COVENANTS OF SELLERS

 

On and as of the A&R Closing Date and until this Agreement is no longer in force with respect to any Transaction, without the prior written consent of Buyer:

 

(a)           Sellers shall not take any action which would directly or indirectly impair or adversely affect Buyer’s title to the Purchased Loans.

 

46

(b)           Sellers shall not transfer, assign, convey, grant, bargain, sell, set over, deliver or otherwise dispose of, or pledge or hypothecate, directly or indirectly, any interest in the Purchased Loans (or any of them) to any Person other than Buyer, or engage in repurchase transactions or similar transactions with respect to the Purchased Loans (or any of them) with any Person other than Buyer, unless and until such Purchased Loans are repurchased by Seller in accordance with this Agreement.

 

(c)           Sellers shall not create, incur or permit to exist any Lien in or on the Purchased Loans, except as described in Section 6.

 

(d)           Sellers shall not create, incur or permit to exist any Lien, encumbrance or security interest in or on any of the other Collateral subject to the security interest granted by Sellers pursuant to Section 6.

 

(e)           Sellers shall not modify or terminate any of the organizational documents of Sellers.

 

(f)            In respect of any Purchased Loan, Sellers shall not consent or assent to any modification of any related Purchased Loan Document or any other related note, loan agreement, mortgage, security agreement, credit enhancement, guaranty or other material agreement, document or instrument (each, a “Subject Document”); provided that, so long as no “event of default” (however defined) has occurred and is continuing with respect to such Purchased Loan and so long as no Event of Default has occurred and is continuing hereunder, (i) the applicable Seller may, without the prior written consent of Buyer, consent or assent to any modification of any Subject Document if such modification is not a Material Modification, and (ii) with respect to any Material Modification, (A) to the extent that a Subject Document expressly provides a particular decision making standard that the lender under such Subject Document is required to adhere to in respect of such Material Modification, Buyer agrees that it shall determine whether or not to provide approval for such Material Modification utilizing such standard, (B) to the extent that a Subject Document does not expressly provide a particular decision making standard that the lender under such Subject Document is required to adhere to in respect of such Material Modification, Buyer may determine whether or not to provide approval for such Material Modification in its sole discretion.

 

(g)           Sellers shall not admit any additional members in Sellers, except with respect to any springing member or Independent Manager contemplated by the Transaction Documents;

 

(h)           Sellers shall not, after the occurrence and during the continuation of an Event of Default, make any distribution, payment on account of, or set apart assets for, a sinking or other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition of any Capital Stock of Sellers, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of Sellers; or

 

(i)            Sellers shall not agree to waive any event of default or to extend the cure period for a failure or breach of any covenant or agreement by a Servicer under any Servicing Agreement.

 

	12.	
AFFIRMATIVE COVENANTS OF SELLERS

 

On and as of the A&R Closing Date and until this Agreement is no longer in force with respect to any Transaction:

 

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(a)           Promptly after obtaining actual knowledge thereof, Sellers shall promptly notify Buyer of any change in their respective business operations and/or financial condition that would be reasonably likely to have a Material Adverse Effect.

 

(b)           Sellers shall provide Buyer with copies of such documents as Buyer may reasonably request evidencing the truthfulness of the representations set forth in Section 10.

 

(c)           Sellers (i) shall defend the right, title and interest of Buyer in and to the Collateral against, and take such other action as is necessary to remove, the Liens of all Persons (other than security interests by or through Buyer) and (ii) shall, at Buyer’s reasonable request, take all action necessary to ensure that Buyer will have a first priority security interest in the Purchased Loans subject to any of the Transactions in the event such Transactions are recharacterized as secured financings.

 

(d)           Sellers shall notify (i) Buyer of the occurrence of any Default or Event of Default with respect to either Seller, and (ii) the Depository of the occurrence of any Event of Default with respect to either Seller, in each case, as soon as possible but in no event later than two (2) Business Days after obtaining actual knowledge of such event.

 

(e)           Sellers shall promptly (and in any event not later than two (2) Business Days following receipt) deliver to Buyer (i) any written notice of the occurrence of an “event of default” (however defined) received by either Seller pursuant to the Purchased Loan Documents and (ii) any other information with respect to the Purchased Loans in either Seller’s possession, any Affiliate of either Seller’s possession, or obtainable by either Seller without commercially unreasonable effort or expense as may be reasonably requested by Buyer from time to time.

 

(f)            Sellers will permit Buyer to inspect Sellers’ records with respect to the Collateral and the conduct and operation of their respective business related thereto upon reasonable prior written notice from Buyer or its designated representative, at such reasonable times and with reasonable frequency, and to make copies of extracts of any and all thereof, subject to the terms of any confidentiality agreement between Buyer and Sellers, and if no such confidentiality agreement then exists between Buyer and Sellers, Buyer and Sellers shall act in accordance with customary market standards regarding confidentiality.  Buyer shall act in a commercially reasonable manner in requesting and conducting any inspection relating to the conduct and operation of Sellers’ business related to the Purchased Loans.

 

(g)           At any time from time to time upon the reasonable request of Buyer, at the sole joint and several expense of Sellers, Sellers will promptly and duly execute and deliver such further instruments and documents and take such further actions as Buyer may reasonably request for the purposes of obtaining or preserving the full benefits of this Agreement including the first priority security interest granted hereunder and of the rights and powers herein granted (including, among other things, filing such UCC financing statements as Buyer may reasonably request).  If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any promissory note, other instrument or chattel paper, such note, instrument or chattel paper shall be promptly delivered to Buyer or Custodian, duly endorsed in blank, to be held as Collateral pursuant to this Agreement, and the documents delivered in connection herewith.

 

(h)           Sellers shall provide Buyer with the following financial and reporting information:

 

(i)          within fifteen (15) days after the last day of each calendar month, a Monthly Reporting Package;

 

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(ii)         within forty-five (45) days after the last day of each of the first three fiscal quarters in any fiscal year, a Quarterly Reporting Package;

 

(iii)        within one-hundred-twenty (120) days after the last day of its fiscal year, an Annual Reporting Package;

 

(iv)       promptly and in any event within two (2) Business Days of either Seller’s actual knowledge, (a) notice of material events in respect of QRS Seller, TRS Seller, Guarantor, Pledgor, Manager or REIT, any Mortgagor in respect of any Purchased Loan, any Purchased Loan or the Mortgaged Property collateralizing any Purchased Loan, (b) notice of any Credit Event, and (c) notice of any Material Default or “event of default” (however defined) under any Purchased Loan;

 

(v)        promptly and in any event within two (2) Business Days of either Seller’s actual knowledge, to the extent that there exists a mezzanine loan related to a Purchased Loan, (a) notice of any material events in respect of such mezzanine loan or the related mezzanine loan borrower, (b) notice of any default or “event of default” (however defined) under any related mezzanine loan documentation, (c) notice of any default or “event of default” (however defined) under any intercreditor documentation relating to such mezzanine loan and the applicable Purchased Loan;

 

(vi)       promptly and in any event within one (1) Business Day of either Seller’s actual knowledge, (A) notice of any Default or Event of Default under any Transaction Document, and (B) notice of any default on the part of Guarantor under any indebtedness which could give rise to an Event of Default;

 

(vii)      upon Buyer’s request;

 

	 	(A)	
a listing of any changes in Purchased Loan related hedging transactions with hedge counterparties or hedging transactions with hedge counterparties in respect of the facility established pursuant to the Transaction Documents, setting forth the names of the hedge counterparties and the material terms of each such hedging transaction, delivered within ten (10) days after Buyer’s request;

 

		(B)	
copies of QRS Seller’s, TRS Seller’s and Guarantor’s Federal Income Tax returns, if any, delivered within thirty (30) days after the earlier of (x) filing, or (y) the last filing extension period; and

 

		(C)	
such other information regarding the financial condition, operations or business of QRS Seller, TRS Seller, Guarantor, Pledgor, REIT, or any Mortgagor in respect of any Purchased Loan as Buyer may reasonably request;

 

(viii)     within twenty (20) Business Days of Buyer’s request, an Appraisal relating to any Mortgaged Property collateralizing any Purchased Loan; provided, that so long as no Event of Default has occurred and is continuing, Buyer’s requests under this clause (viii) shall be limited to one (1) request for each Purchased Loan in any twelve (12) month period;

 

49

(ix)        upon reasonable notice, such other reports reasonably requested by Buyer with respect to any Purchased Loan, to the extent available to Sellers pursuant to the Purchased Loan Documents related to such Purchased Loan; and

 

(x)         within five (5) Business Days after service of process or either Seller’s knowledge thereof, notice of the commencement, or threat in writing of, any action, suit, proceeding, investigation or arbitration involving QRS Seller, TRS Seller, Guarantor or Pledgor or assets thereof or any judgment in any action, suit, proceeding, investigation or arbitration involving QRS Seller, TRS Seller, Guarantor or Pledgor or assets thereof, which in any of the foregoing cases (i) relates to any Purchased Loan, (ii) questions or challenges the validity or enforceability of any Transaction or Transaction Document, (iii) makes a claim or claims against QRS Seller, TRS Seller or Pledgor in an aggregate amount in excess of $250,000 or makes a claim against Guarantor in an aggregate amount in excess of $20,000,000 or (iv) that, individually or in the aggregate, if adversely determined, could be reasonably likely to have a Material Adverse Effect.

 

(i)            Sellers shall at all times (x) comply with all laws, ordinances, rules and regulations of any federal, state, municipal or other public authority having jurisdiction over Sellers or any of their respective assets and (y) do or cause to be done all things reasonably necessary to preserve and maintain in full force and effect their respective legal existence, and all licenses material to its business, except in each case to the extent non-compliance or the failure to maintain would not be reasonably likely to result in a Material Adverse Effect.

 

(j)            Sellers shall at all times keep proper books of records and accounts in which full, true and correct entries shall be made of its transactions in accordance with GAAP and set aside on its books from its earnings for each fiscal year all such proper reserves in accordance with GAAP.

 

(k)           Sellers shall observe, perform and satisfy all the terms, provisions and covenants required to be observed, performed or satisfied by Sellers, and shall pay when due all costs, fees and expenses required to be paid by Sellers, under the Transaction Documents.  Sellers shall pay and discharge all Taxes, levies, liens and other charges on their respective assets and on the Collateral that, in each case, would create any Lien upon the Collateral, except for any such Taxes as are being appropriately contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves have been provided, in all material respects, in accordance with GAAP.

 

(l)            Sellers will maintain records with respect to the Collateral and the conduct and operation of their respective business with no less a degree of prudence than if the Collateral were held by Sellers for their respective own account.

 

(m)          Sellers shall provide Buyer with reasonable access to any operating statements, occupancy status and other property level information, each with respect to each Mortgaged Property, and any such additional reports (in each case, to the extent readily obtainable by Sellers or in Servicer’s possession) as Buyer may reasonably request.

 

(n)           With respect to each Future Funding Loan, the applicable Seller shall satisfy all future funding obligations for each such Future Funding Loan to the extent required pursuant to the applicable Purchased Loan Documents.

 

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	13.	
SINGLE-PURPOSE ENTITY

 

Each Seller hereby represents and warrants to Buyer, and covenants with Buyer, that as of the A&R Closing Date and so long as any of the Transaction Documents shall remain in effect:

 

(a)           It is and intends to remain Solvent and it has paid and will pay its debts and liabilities (including allocated employment and overhead expenses) from its own assets as the same shall become due.

 

(b)           It has complied and will comply with the provisions of its organizational documents.

 

(c)           It has done or caused to be done and will, to the extent under its control, do all things necessary to observe corporate formalities and to preserve its existence.

 

(d)           It has maintained and will maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates, its members and any other Person (except, in each case, to the extent consolidation is permitted under GAAP or as a matter of law), and, to the extent required by law, it will timely (i) file its own Tax returns, if any (except, for the avoidance of doubt, if such Seller is included as part of a consolidated, unitary, combined or similar tax return and not so obligated to file, or if such Seller is disregarded as a separate entity for applicable tax purposes), and (ii) pay any Taxes required to be paid by it under applicable law.

 

(e)           It has been, is and will be, and at all times will hold itself out to the public as, a legal entity separate and distinct from any other entity (including any Affiliate), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall not identify itself or any of its Affiliates as a division or part of the other, shall maintain and utilize separate stationery, invoices and checks, and allocate fairly and reasonably any overhead for shared office space and for services performed by an employee of an Affiliate.

 

(f)            It has not owned and will not own any property or any other assets other than (i) Purchased Loans, (ii) Eligible Loans that have received internal credit approval from Buyer to be the subject of a Transaction, but have not yet become Purchased Loans on a Purchase Date, (iii) Purchased Loans that are subject to an early repurchase and are promptly conveyed to a third party or any Affiliate (including in connection with a securitization transaction), (iv) its interest under the Transaction Documents, (v) cash, and (vi) all other assets incidental to the organization, acquisition, ownership, financing and disposition of the Purchased Loans.

 

(g)           It has not engaged and will not engage in any business other than the acquisition, origination, ownership, financing and disposition of Purchased Loans in accordance with the applicable provisions of the Transaction Documents.

 

(h)           It has not entered into, and will not enter into, any contract or agreement with any of its Affiliates, except upon terms and conditions that are substantially similar to those that would be available on an arm’s-length basis with Persons other than such Affiliate and except as specifically contemplated in Section 3(q).

 

(i)            It has not incurred and will not incur any indebtedness or obligation, secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing any obligation), other than (A) obligations under the Transaction Documents, and (B) unsecured trade payables, in an aggregate

 

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amount not to exceed $400,000 at any one time outstanding, incurred in the ordinary course of acquiring, originating, owning, financing and disposing of Purchased Loans; provided that (A) for unsecured trade payables that constitute legal and transaction related fees in connection with the negotiation and entry into the Transaction Documents, no such value limit shall apply, and (B) any and all unsecured trade payables incurred by Sellers shall be paid within 90 days of the date incurred.

 

(j)            It has not made and will not make any loans or advances to any other Person, except as permitted under this Agreement, and shall not acquire obligations or securities of any member or any Affiliate of any member or any other Person.

 

(k)           It will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations.

 

(l)            It shall not seek its dissolution, liquidation or winding up, in whole or in part, or suffer any Change of Control or consolidation or merger with respect to such Seller.

 

(m)          It will not commingle its funds and other assets with those of any of its Affiliates or any other Person.

 

(n)           It has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any of its Affiliates or any other Person.

 

(o)           It has not held and will not hold itself out to be responsible for the debts or obligations of any other Person.

 

(p)           It shall at all times maintain at least one Independent Manager.  Without the affirmative vote of the Independent Manager, such Seller shall not institute any proceeding to be adjudicated as bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against it, or file a petition or answer or consent seeking reorganization or relief under the Bankruptcy Code, or effect any similar procedure under any similar law, or consent to the filing of any such petition or to the appointment of a receiver, rehabilitator, conservator, liquidator, assignee, trustee or sequestrator (or other similar official) of such Seller or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, or make an assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or take any action in furtherance of any of the foregoing.

 

(q)           It has no liabilities, contingent or otherwise, other than those normal and incidental to the acquisition, origination, ownership, financing and disposition of Purchased Loans and Eligible Loans pursuant to the Transaction Documents.

 

(r)            It is formed or organized solely for the purpose of acquiring, originating, owning, financing and disposing of Purchased Loans in accordance with this Agreement, and it does not engage in any business unrelated thereto.

 

(s)           It shall not maintain any employees.

 

(t)            It shall not form any Subsidiaries.

 

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(u)           It shall not pledge its assets to secure the obligations of any other Person other than to Buyer pursuant to the Transaction Documents.

 

	14.	
EVENTS OF DEFAULT; REMEDIES

 

(a)            With respect to each Transaction, each of the following clauses in this Section 14(a) shall be an “Event of Default” under this Agreement:

 

(i)          the applicable Seller fails to repurchase any Purchased Loan upon the applicable Repurchase Date;

 

(ii)         the applicable Seller fails to cure a Margin Deficit requested to be cured by Buyer in accordance with Section 4;

 

(iii)        Sellers fail to pay any Concentration Limit Amount in accordance with Section 3(o);

 

(iv)       a Purchase Price Amortization Amount exists and remains outstanding;

 

(v)        the applicable Seller fails to pay any amounts payable pursuant to the Fee Agreement (including, without limitation, any Extension Fee, the Make Whole Draw Fee, the Delayed Facility Fee, any Exit Fee, or the Term Amortization Period Fee);

 

(vi)       an Act of Insolvency occurs with respect to QRS Seller, TRS Seller, Guarantor or Pledgor;

 

(vii)      QRS Seller, TRS Seller, Guarantor or Pledgor shall admit in writing its inability to, or its intention not to, perform any of its obligations hereunder or under any other agreement to which it is a party;

 

(viii)     either (A) the Transaction Documents shall for any reason not cause, or shall cease to cause, Buyer to be the owner free of any adverse claim of any of the Purchased Loans, or (B) if a Transaction is recharacterized as a secured financing, the Transaction Documents with respect to any Transaction shall for any reason cease to create a valid first priority security interest in favor of Buyer in any of the Purchased Loans;

 

(ix)        the failure of either Seller to make any other payment owing to Buyer which has become due, whether by acceleration or otherwise under the terms of this Agreement, the Fee Agreement or any other Transaction Document which failure is not remedied within two (2) Business Days;

 

(x)         any governmental, regulatory, or self-regulatory authority shall have removed, restricted, suspended or terminated the rights, privileges, or operations of QRS Seller, TRS Seller or Guarantor, which, in each case, has a material impact on such Person’s ability to perform under the Transaction Documents;

 

(xi)        a Change of Control shall have occurred without the prior written consent of Buyer;

 

53

(xii)       any representation made by QRS Seller, TRS Seller, Guarantor or Pledgor in any Transaction Document shall have been incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated and such incorrect or untrue representation exists and continues unremedied for ten (10) Business Days after the earlier of receipt of written notice thereof from Buyer or either Seller’s actual knowledge of such incorrect or untrue representation (other than the representations and warranties set forth in Section 10(i) made by the applicable Seller, which shall not be considered an Event of Default if incorrect or untrue in any material respect, provided the applicable Seller did not have actual knowledge that it was materially incorrect or untrue at the time made, and so long as the applicable Seller repurchases the related Purchased Loan on an Early Repurchase Date no later than two (2) Business Days after knowledge of such incorrect or untrue representation and terminates the related Transaction); provided, however, if the circumstances which resulted in such representation being incorrect or untrue can be remedied and provided further that QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable, is diligently working to remedy such circumstances, QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable, shall have an additional five (5) Business Days to pursue such remedy;

 

(xiii)      (i) Guarantor breaches any of the payment obligations set forth in the Guaranty, (ii) Guarantor shall fail to observe any of the financial covenants set forth in Section 5 of the Guaranty, or (iii) Pledgor breaches any of the payment obligations set forth in the Pledge Agreement;

 

(xiv)      a final non-appealable judgment by any competent court in the United States of America for the payment of money in an amount greater than $250,000 (in the case of QRS Seller, TRS Seller or Pledgor) or $20,000,000 (in the case of Guarantor) shall have been rendered against QRS Seller, TRS Seller, Guarantor or Pledgor, and remained undischarged or unpaid for a period of thirty (30) days, during which period execution of such judgment is not effectively stayed by bonding over or other means reasonably acceptable to Buyer;

 

(xv)       QRS Seller, TRS Seller, Guarantor or Pledgor shall have (x) defaulted under any Indebtedness to which it is a party, which default (A) involves the failure to pay a principal amount in excess of $250,000 (in the case of QRS Seller, TRS Seller or Pledgor) or $20,000,000 (in the case of Guarantor), or (B) results in the acceleration of the maturity of such Indebtedness in excess of a principal amount of $250,000 (in the case of QRS Seller, TRS Seller or Pledgor) or $20,000,000 (in the case of Guarantor) by any other party to or beneficiary of such Indebtedness or (y) failed to perform any other material non-payment obligation under such Indebtedness with an asserted damages claim in excess of the limits referenced in clause (x) with respect to QRS Seller, TRS Seller, Guarantor or Pledgor, as applicable; provided, however, with respect to clause (y), that any such default, failure to perform or breach shall not constitute an Event of Default if QRS Seller, TRS Seller, Guarantor or Pledgor cures such default or failure to perform, as the case may be, within the grace notice and/or cure period, if any, provided under the applicable agreement;

 

(xvi)      either Seller fails to observe or perform in any material respect any other obligation of such Seller under the Repurchase Documents or Purchased Loan Documents to which such Seller is a party, and such failure continues unremedied for five (5) Business Days after the earlier of receipt of notice thereof from Buyer or the discovery of such failure by such Seller; provided, however, in the case of any such failure to observe or perform any obligations

 

54

that are susceptible to cure but cannot be cured within such five (5) Business Day period through the exercise of reasonable diligence, if such Seller commences such cure within the initial five (5) Business Day period and diligently prosecutes such cure, such five (5) Business Day cure period shall be extended to thirty (30) calendar days, and if at the end of such extended period, Buyer determines that such Seller has diligently prosecuted such cure and continues to diligently prosecute such cure, Buyer may extend the time to cure by up to an additional thirty (30) calendar days; or

 

(xvii)     either Guarantor or Pledgor fails to observe or perform in any material respect any other obligation of Guarantor or Pledgor, as applicable, under the Transaction Documents to which Guarantor or Pledgor is a party, and such failure continues unremedied for five (5) Business Days after the earlier of receipt of notice thereof from Buyer or the discovery of such failure by Guarantor or Pledgor, as applicable; provided, however, in the case of any such failure to observe or perform any obligations that are susceptible to cure but cannot be cured within such five (5) Business Day period through the exercise of reasonable diligence, if Guarantor or Pledgor, as applicable, commences such cure within the initial five (5) Business Day period and diligently prosecutes such cure, such five (5) Business Day cure period shall be extended to thirty (30) calendar days, and if at the end of such extended period, Buyer determines that Guarantor or Pledgor, as applicable, has diligently prosecuted such cure and continues to diligently prosecute such cure, Buyer may extend the time to cure by up to an additional thirty (30) calendar days.

 

(b)           After the occurrence and during the continuance of an Event of Default, each Seller hereby appoints Buyer as attorney-in-fact of such Seller for the purpose of carrying out the provisions of this Agreement and taking any action and executing or endorsing any instruments that Buyer may deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest.  If an Event of Default shall occur and be continuing, the following rights and remedies shall be available to Buyer:

 

(i)          At the option of Buyer, exercised by written notice to Sellers (which option shall be deemed to have been exercised, even if no notice is given, immediately upon the occurrence of an Act of Insolvency), the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (the date on which such option is exercised or deemed to have been exercised being referred to hereinafter as the “Accelerated Repurchase Date”), Buyer shall have the right to (A) declare the Swingline Availability Period End Date to have occurred, (B) declare the Term Availability Period End Date to have occurred, (C) to declare the Swingline Maturity Date to have occurred, (D) to declare the Term Maturity Date to have occurred and (E) to terminate this Agreement and any of the other Transaction Documents, as determined by Buyer.

 

(ii)         If Buyer exercises or is deemed to have exercised the option referred to in Section 14(b)(i):

 

(A)         Sellers’ obligations hereunder to repurchase all Purchased Loans shall become immediately due and payable on and as of the Accelerated Repurchase Date;

 

(B)          to the extent permitted by applicable law, the Repurchase Price with respect to each Transaction (determined as of the Accelerated Repurchase Date) shall

 

55

be increased by the aggregate amount obtained by daily application of, on a 360 day per year basis for the actual number of days during the period from and including the Accelerated Repurchase Date to but excluding the date of payment of the Repurchase Price (as so increased), (x) the Pricing Rate for such Transaction multiplied by (y) the outstanding Purchase Price for such Transaction (decreased by (I) any amounts actually remitted to Buyer by the Depository or the applicable Seller from time to time pursuant to Section 4 or Section 5 and applied to such Repurchase Price, and (II) any amounts applied to the Repurchase Price pursuant to Section 14(b)(iii)); and

 

(C)          the Custodian shall, upon the request of Buyer, deliver to Buyer all instruments, certificates and other documents then held by the Custodian relating to the Purchased Loans.

 

(iii)        Upon the occurrence and during the continuance of an Event of Default, Buyer shall have the right to (A) immediately sell, at a public or private sale in a commercially reasonable manner and at such price or prices as Buyer may reasonably deem satisfactory, any or all of the Purchased Loans or (B) in its sole discretion elect, in lieu of selling all or a portion of any or all of the Purchased Loans, give Sellers credit for such Purchased Loans in an amount equal to the market value of such Purchased Loans as determined by Buyer in its sole good faith against the aggregate unpaid Repurchase Price for such Purchased Loans and any other amounts owing by Sellers under the Transaction Documents.  The proceeds of any disposition of Purchased Loans effected pursuant to this Section 14(b)(iii) shall be applied in accordance with Section 5(f).

 

(iv)        The parties recognize that it may not be possible to purchase or sell all of the Purchased Loans on a particular Business Day, or in a transaction with the same purchaser, or in the same manner because the market for such Purchased Loans may not be liquid.  In view of the nature of the Purchased Loans, the parties agree that liquidation of a Transaction or the Purchased Loans does not require a public purchase or sale and that a good faith private purchase or sale shall be deemed to have been made in a commercially reasonable manner.  Accordingly, Buyer may elect, in its sole discretion, the time and manner of liquidating any Purchased Loans, and nothing contained herein shall (A) obligate Buyer to liquidate any Purchased Loans on the occurrence and during the continuance of an Event of Default or to liquidate all of the Purchased Loans in the same manner or on the same Business Day or (B) constitute a waiver of any right or remedy of Buyer.

 

(v)        Sellers shall be liable to Buyer, on a joint and several basis, for (A) the amount of all actual out-of-pocket expenses, including third party legal fees and expenses, actually incurred by Buyer in connection with or as a consequence of an Event of Default, and (B) any other actual loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default.

 

(vi)       Buyer shall have, in addition to its rights and remedies under the Transaction Documents, all of the rights and remedies provided by applicable federal, state, foreign, and local laws (including, without limitation, if the Transactions are recharacterized as secured financings, the rights and remedies of a secured party under the UCC of the State of New York, to the extent that the UCC is applicable, and the right to offset any mutual debt and claim), in equity, and under any other agreement between Buyer QRS Seller and/or TRS Seller.  Without

 

56

limiting the generality of the foregoing, Buyer shall be entitled to set off the proceeds of the liquidation of the Purchased Loans against all of Sellers’ aggregate obligations to Buyer pursuant to this Agreement, whether or not such obligations are then due, without prejudice to Buyer’s right to recover any deficiency.

 

(vii)      Subject to the notice and grace periods set forth herein, Buyer may exercise any or all of the remedies available to Buyer immediately upon the occurrence of an Event of Default and at any time during the continuance thereof.  All rights and remedies arising under the Transaction Documents, as amended from time to time, are cumulative and not exclusive of any other rights or remedies which Buyer may have.

 

(viii)     Buyer may enforce its rights and remedies hereunder without prior judicial process or hearing, and each Seller hereby expressly waives any defenses such Seller might otherwise have to require Buyer to enforce its rights by judicial process.  Each Seller also waives any defense such Seller might otherwise have arising from the use of nonjudicial process, disposition of any or all of the Purchased Loans, or from any other election of remedies.  Each Seller recognizes that nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm’s length.

 

(ix)        Upon the designation of any Accelerated Repurchase Date, Buyer may, without prior notice to either Seller, set off any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or not contingent and irrespective of the currency, place of payment or booking office of the sum or obligation) owed by either Seller to Buyer or any Affiliate of Buyer against any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or not contingent and irrespective of the currency, place of payment or booking office of the sum or obligation) owed by Buyer or any Affiliate of Buyer to either Seller.  Buyer will give written notice to the other party of any set off effected under this Section 14(b)(ix).  If a sum or obligation is unascertained, Buyer may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.  Nothing in this Section 14(b)(ix) shall be effective to create a charge or other security interest.  This Section 14(b)(ix) shall be without prejudice and in addition to any right of set-off, combination of accounts, Lien or other rights to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).

 

	15.	
SINGLE AGREEMENT

 

Buyer, QRS Seller and TRS Seller acknowledge that, and have entered hereinto and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each other.  Accordingly, each of Buyer, QRS Seller and TRS Seller agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, (ii) that each of them shall be entitled to set off claims and apply property held by them in respect of any Transaction against obligations owing to them in respect of any other Transactions hereunder and (iii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of

 

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any other Transactions hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted.

 

	16.	
RECORDING OF COMMUNICATIONS

 

EACH OF BUYER, QRS SELLER AND TRS SELLER SHALL HAVE THE RIGHT (BUT NOT THE OBLIGATION) FROM TIME TO TIME TO MAKE OR CAUSE TO BE MADE TAPE RECORDINGS OF COMMUNICATIONS BETWEEN ITS EMPLOYEES, IF ANY, AND THOSE OF THE OTHER PARTY WITH RESPECT TO TRANSACTIONS; PROVIDED, HOWEVER, THAT SUCH RIGHT TO RECORD COMMUNICATIONS SHALL BE LIMITED TO COMMUNICATIONS OF EMPLOYEES TAKING PLACE ON THE TRADING FLOOR OF THE APPLICABLE PARTY.  EACH OF BUYER, QRS SELLER AND TRS SELLER HEREBY CONSENTS TO THE ADMISSIBILITY OF SUCH TAPE RECORDINGS IN ANY COURT, ARBITRATION, OR OTHER PROCEEDINGS.

 

	17.	
NOTICES AND OTHER COMMUNICATIONS

 

Unless otherwise provided in this Agreement, all notices, consents, approvals and requests required or permitted hereunder shall be given in writing and shall be effective for all purposes if sent by (a) hand delivery, with proof of delivery, (b) certified or registered United States mail, postage prepaid, (c) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of delivery, or (d) by email with proof of delivery to the address specified in Annex I hereto or at such other address and person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section 17.  A notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery, (b) in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day, (c) in the case of expedited prepaid delivery upon the first attempted delivery on a Business Day, or (d) in the case of email, upon receipt of confirmation of transmission and delivery, respectively, provided that such telecopied notice or notice sent by email was also delivered as required in this Section 17.  A party receiving a notice which does not comply with the technical requirements for notice under this Section 17 may elect to waive any deficiencies and treat the notice as having been properly given.

 

	18.	
ENTIRE AGREEMENT; SEVERABILITY

 

This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions.  Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

	19.	
NON-ASSIGNABILITY

 

(a)           The rights and obligations of Sellers under the Transaction Documents and under any Transaction shall not be assigned by Sellers without the prior written consent of Buyer.

 

(b)           Buyer shall be entitled to assign its rights and obligations under the Transaction Documents and/or under any Transaction or issue and/or sell participation interests therein to any other Person or issue one or more participation interests with respect to any or all of the Transactions and, in connection therewith, may bifurcate or allocate (i.e. senior/subordinate) amounts due to Buyer; provided, however, that (A) in connection with any assignment, unless an Event of Default has occurred and is continuing, (i) the proposed transferee shall be a Qualified Transferee that is not a Prohibited Transferee or an Affiliate of a Prohibited Transferee, and (ii) Buyer will retain administrative

 

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responsibility under the Transaction Documents, and (B) in connection with any issuance or sale of a participation interest, unless an Event of Default has occurred and is continuing, (i) the proposed participant shall be a Qualified Transferee that is not a Prohibited Transferee or an Affiliate of a Prohibited Transferee, (ii) Buyer shall retain control and authority over its rights and obligations under the Transaction Documents and any Transaction, (iii) Sellers shall not be obligated or required to deal directly or indirectly with any Person other than Buyer, and (iv) Sellers shall not be charged for, incur or be required to reimburse Buyer or any other Person for any costs or expense relating to any such participation interest or to pay or reimburse Buyer for any costs that would not have been incurred by Buyer had no participation interests in such Transactions been issued or sold. In connection with any assignment or participation under this Section 19(b), Buyer may request in writing that Sellers certify within five (5) Business Days that a proposed counterparty is or is not an Affiliate of a Prohibited Transferee; provided that if Sellers do not provide their certification within such time period, such counterparty shall be deemed to not be a Prohibited Transferee and Buyer may proceed with such assignment or participation under this Section 19(b).

 

(c)           Buyer, acting solely for this purpose as an agent of Sellers, shall maintain at one of its offices in the United States, a copy of each such assignment and assumption delivered to it and a register for the recordation of the names and addresses of Buyers, and the amounts (and stated interest) owing to, each Buyer pursuant to the terms hereof from time to time.  The entries in the register shall be conclusive absent manifest error, and Sellers and Buyer shall treat each Person whose name is recorded in the register pursuant to the terms hereof as a Buyer hereunder for all purposes of this Agreement.  The register shall be available for inspection by Sellers and Buyer at any reasonable time and from time to time upon reasonable prior notice.

 

(d)           If Buyer sells a participation interest pursuant to Section 19(b), it shall, acting solely for this purpose as an agent of Sellers, 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 herein or obligations under the Transaction Documents, provided, that Buyer shall have no obligation to disclose all or any portion of the register (including the identity of any participant or any information relating to a participant’s interest in any obligations under any Transaction Document) to any Person except to Sellers or 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 register shall be conclusive absent manifest error, and Buyer and Sellers shall treat each Person whose name is recorded in the register as the owner of such participation interest for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(e)           Subject to the foregoing, the Transaction Documents and any Transactions shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.  Nothing in the Transaction Documents, express or implied, shall give to any Person, other than the parties to the Transaction Documents and their respective successors, any benefit or any legal or equitable right, power, remedy or claim under the Transaction Documents.

 

	
20.

	
GOVERNING LAW

 

This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York pursuant to Section 5-1401 of the New York General Obligations Law, without giving effect to the conflict of law principles thereof.

 

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21.

	
NO WAIVERS, ETC.

No express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder.  No modification or waiver of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such shall be in writing and duly executed by both of the parties hereto.  Without limitation on any of the foregoing, the failure to give a notice pursuant to Section 3(g), Section 3(i), Section 3(j), Section 3(k), Section 3(l), Section 3(m), Section 3(o), Section 3(p), Section 3(s) or Section 4(a) will not constitute a waiver of any right to do so at a later date.

	
22.

	
USE OF EMPLOYEE PLAN ASSETS

None of QRS Seller, TRS Seller, Guarantor, or Pledgor are an employee benefit plan (as defined in Section 3(3) of ERISA) or a plan (within the meaning of Section 4975 of the Code) and none of their respective assets are “plan assets” within the meaning of 29 C.F.R. Section 2510.3-101, as modified in application by Section 3(42) of ERISA.

	
23.

	
INTENT

(a)            The parties intend that:  (i) each Transaction is a “repurchase agreement” as that term is defined in Section 101(47) of the Bankruptcy Code (except to the extent the related Transaction has a duration that renders such term inapplicable) and a “securities contract” as that term is defined in Section 741(7) of the Bankruptcy Code, (ii) payments under this Agreement are deemed “margin payments” or “settlement payments” as defined in Section 741 of the Bankruptcy Code, (iii) the Guaranty, the Pledge Agreement and the grant of a security interest set forth in Section 6, each of which guaranties and/or secures the rights of Buyer hereunder also constitutes a “repurchase agreement” as contemplated by Section 101(47)(A)(v) of the Bankruptcy Code (except to the extent the related Transaction has a duration that renders such term inapplicable) and a “securities contract” as contemplated by Section 741(7)(A)(xi) of the Bankruptcy Code.  It is further understood that the parties intend that this Agreement constitutes a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code, as amended, with respect to the Transaction so constituting a “repurchase agreement” or “securities contract”.

(b)            The parties intend that each of Buyer, QRS Seller and TRS Seller is a “repo participant” as that term is defined in Section 101(46) of the Bankruptcy Code and that Buyer is a “financial institution” or “financial participant” as each term is defined in 101(22) and 101(22)(A) of the Bankruptcy Code respectively.

(c)           The parties intend that each party (for so long as such party is a “financial institution”, “financial participant”, “repo participant”, or “master netting participant” or other entity listed in Section 555, 559, 561, 362(b)(6), or 362(b)(7) of the Bankruptcy Code) shall be entitled to the “safe harbor” benefits and protections afforded under the Bankruptcy Code with respect to a “repurchase agreement” and a “securities contract” and a “master netting agreement”, including (x) the rights set forth in Section 3 and Section 14(b) and in Section 555, 559, and 561 of the Bankruptcy Code to liquidate the Purchased Loans and/or accelerate or terminate this Agreement, and (y) the right to offset or net out termination payments, payment amounts or other transfer obligations and otherwise exercise contractual rights as set forth in Sections 362(b)(6), 362(b)(7), 362(o), and 546 of the Bankruptcy Code.

 

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(d)           Each party hereto hereby further agrees that it shall not challenge the characterization of (i) this Agreement as a “repurchase agreement” (except to the extent the related Transaction has a duration that renders such term inapplicable), “securities contract” and/or “master netting agreement”, (ii) each party as a “repo participant” within the meaning of the Bankruptcy Code except insofar as, in the case of a “repurchase agreement”, the term of the Transactions, would render such definition inapplicable, or (iii) Buyer as a “financial institution” or “financial participant” within the meaning of the Bankruptcy Code.

(e)           It is understood that either party’s right to accelerate or terminate this Agreement or to liquidate assets delivered to it in connection with the Transactions hereunder pursuant to Section 14 is a contractual right to accelerate, terminate or liquidate this Agreement or the Transactions as described in Sections 555 and 559 of the Bankruptcy Code.  It is further understood and agreed that the parties intend that either party’s right to cause the termination, liquidation, or acceleration of, or to offset net termination values, payment amounts or other transfer obligations arising under or in connection with, this Agreement or the Transactions hereunder is a contractual right to cause the termination, liquidation, or acceleration of, or to offset net termination values, payment amounts or other transfer obligations arising under or in connection with, this Agreement as described in Section 561 of the Bankruptcy Code.

(f)            The parties agree and acknowledge that if a party hereto is an “insured depository institution”, as such term is defined in the Federal Deposit Insurance Act, as amended (“FDIA”), then each of the Transactions hereunder is a “qualified financial contract”, as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to the Transactions would render such definition inapplicable).

(g)           It is understood that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation under the Transactions hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a “financial institution” as that term is defined in FDICIA).

(h)           In light of the intent set forth in this Section 23, each of QRS Seller and TRS Seller agrees that, from time to time upon the written request of Buyer, QRS Seller and TRS Seller will execute and deliver any supplements, modifications, addendums or other documents as may be necessary or desirable, in Buyer’s good faith discretion, in order to cause this Agreement and the Transactions contemplated hereby to qualify for, comply with the provisions of, or otherwise satisfy, maintain or preserve the criteria for safe harbor treatment under the Bankruptcy Code for “repurchase agreements” (except to the extent the related Transaction has a duration that renders such term inapplicable), “securities contracts” and “master netting agreements”; provided, however, that Buyer’s failure to request, or Buyer’s, QRS Seller’s or TRS Seller’s failure to execute, such supplements, modifications, addendums or other documents does not in any way alter or otherwise change the intention of the parties hereto that this Agreement and the Transactions hereunder constitute “repurchase agreements” (except to the extent the related Transaction has a duration that renders such term inapplicable), “securities contracts” and/or a “master netting agreement” as such terms are defined in the Bankruptcy Code.

 

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(i)            Notwithstanding anything to the contrary in this Agreement or the other Transaction Documents, it is the intention of the parties that, for U.S. Federal, state and local income and franchise tax purposes, the Transactions constitute a loan from Buyer to Sellers, and that Sellers are and, so long as no Event of Default shall have occurred and be continuing, will continue to be, treated as the owner of the Purchased Loans for such purposes.  Unless prohibited by applicable law, Sellers and Buyer (and its assignees and participants, if any) shall treat the Transactions as described in the preceding sentence for all U.S. Federal, state and local income and franchise tax purposes (including, without limitations, on any and all filings with any U.S. Federal, state or local taxing authority) and agree not to take any action inconsistent with such treatment.

	
24.

	
DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

The parties acknowledge that they have been advised that:

(a)           in the case of Transactions in which one of the parties is a broker or dealer registered with the Securities and Exchange Commission (“SEC”) under Section 15 of the Securities Exchange Act of 1934 (as amended from time to time, the “1934 Act”), the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other party with respect to any Transaction hereunder;

(b)           in the case of Transactions in which one of the parties is a government securities broker or a government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction hereunder; and

(c)           in the case of Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable.

	
25.

	
CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

(a)           Each party irrevocably and unconditionally (i) submits to the exclusive jurisdiction of any United States Federal or New York State court sitting in Manhattan, and any appellate court from any such court, solely for the purpose of any suit, action or proceeding brought to enforce its obligations under this Agreement or relating in any way to this Agreement or any Transaction under this Agreement and (ii) waives, pursuant to, and in accordance with, Section 5-1402 of the General Obligations Law of the State of New York, to the fullest extent it may effectively do so, any defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and any right of jurisdiction on account of its place of residence or domicile.

(b)           To the extent that either party has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property, such party hereby irrevocably waives and agrees not to plead or claim such immunity in respect of any action brought to enforce its obligations under this Agreement or relating in any way to this Agreement or any Transaction under this Agreement.

 

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(c)            The parties hereby irrevocably consent to the service of any summons and complaint and any other process by the mailing of copies of such process to them at their respective address specified herein.  The parties hereby agree 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 Section 25 shall affect the right of Buyer, QRS Seller or TRS Seller to serve legal process in any other manner permitted by law or affect the right of Buyer, QRS Seller or TRS Seller to bring any action or proceeding against the other party or its property in the courts of other jurisdictions.

(d)           EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.  ANY PARTY HERETO MAY FILE A COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

	
26.

	
NO RELIANCE

Each of Buyer, QRS Seller and TRS Seller hereby acknowledges, represents and warrants to the other that, in connection with the negotiation of, the entering into, and the performance under, the Transaction Documents and each Transaction thereunder:

(a)           It is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of the other party to the Transaction Documents, other than the representations expressly set forth in the Transaction Documents;

(b)           It has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent that it has deemed necessary, and it has made its own investment, hedging and trading decisions (including decisions regarding the suitability of any Transaction) based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by the other party;

 

(c)           It is a sophisticated and informed Person that has a full understanding of all the terms, conditions and risks (economic and otherwise) of the Transaction Documents and each Transaction thereunder and is capable of assuming and willing to assume (financially and otherwise) those risks;

(d)           It is entering into the Transaction Documents and each Transaction thereunder for the purposes of managing its borrowings or investments or hedging its underlying assets or liabilities and not for purposes of speculation; and

(e)           It is not acting as a fiduciary or financial, investment or commodity trading advisor for the other party and has not given the other party (directly or indirectly through any other Person) any assurance, guaranty or representation whatsoever as to the merits (either legal, regulatory, tax, business, investment, financial accounting or otherwise) of the Transaction Documents or any Transaction thereunder.

 

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27.

	
INDEMNITY

Sellers hereby agree to indemnify Buyer and each of its officers, directors, employees and agents (“Indemnified Parties”), on a joint and several basis, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, taxes, fees, costs, expenses (including reasonable, out-of-pocket third party attorneys fees and disbursements) or disbursements (all of the foregoing, collectively “Indemnified Amounts”) which may at any time (including, without limitation, such time as this Agreement shall no longer be in effect and the Transactions shall have been repaid in full) be imposed on or asserted against any Indemnified Party in any way whatsoever arising out of or in connection with, or relating to, this Agreement or any Transactions thereunder or any action taken or omitted to be taken by any Indemnified Party under or in connection with any of the foregoing (including, without limitation, all Indemnified Amounts with respect to all Purchased Loans that are Future Funding Loans relating to or arising out of any alleged failure by any Seller (or any Affiliate thereof), Buyer or any other Person to fund any future funding obligations under any Future Funding Loan); provided, that Sellers shall not be liable for Indemnified Amounts resulting from the bad faith, gross negligence or willful misconduct of any Indemnified Party and, provided further, that this Section 27 shall not apply with respect to Taxes other than Taxes that represent losses or damages arising from a non-Tax claim.  Without limiting the generality of the foregoing, Sellers agree, on a joint and several basis, to hold Buyer harmless from and indemnify Buyer against all Indemnified Amounts with respect to all Purchased Loans relating to or arising out of any violation or alleged violation of any Environmental Law, rule or regulation or any consumer credit laws, including without limitation ERISA, the Truth in Lending Act and/or the Real Estate Settlement Procedures Act, that, in each case, results from anything other than Buyer’s bad faith, gross negligence or willful misconduct.  In any suit, proceeding or action brought by Buyer in connection with any Purchased Loan for any sum owing thereunder, or to enforce any provisions of any Purchased Loan, Sellers will, on a joint and several basis, save, indemnify and hold Buyer harmless from and against all actual out-of-pocket expense (including reasonable out-of-pocket third party attorneys’ fees), actual out-of-pocket loss or damage suffered by reason of any defense, set-off, counterclaim, recoupment or reduction or liability whatsoever of the account debtor or obligor thereunder, arising out of a breach by either Seller of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account debtor or obligor or its successors from either Seller.

	
28.

	
DUE DILIGENCE

Sellers acknowledges that, at reasonable times and upon reasonable notice to Sellers, Buyer has the right to perform continuing due diligence reviews with respect to the Purchased Loans, for purposes of verifying compliance with the representations, warranties and specifications made hereunder, or otherwise, and Sellers agree that upon reasonable prior written notice to Sellers, Buyer or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts of, the Purchased Loan Files, Servicing Records and any and all documents, records, agreements, instruments or information relating to such Purchased Loans in the possession or under the control of Sellers or any Affiliate of Sellers, any other servicer or subservicer of Sellers and/or the Custodian.  Sellers also shall make available to Buyer a knowledgeable financial or accounting officer for the purpose of answering financial or accounting questions respecting the Purchased Loan Files and the Purchased Loans.  Without limiting the generality of the foregoing, Sellers acknowledge that Buyer may enter into Transactions with Sellers based solely upon the information provided by Sellers to Buyer and the representations, warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete due diligence review on some or all of the Purchased

 

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Loans.  Buyer may underwrite such Purchased Loans itself or engage a third party underwriter to perform such underwriting.  Sellers agree to reasonably cooperate with Buyer and any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and any third party underwriter with access to any and all documents, records, agreements, instruments or information relating to such Purchased Loans in the possession, or under the control, of Sellers or any Affiliate of Sellers, or in the Servicer’s possession.  Sellers further agree that Sellers shall, on a joint and several basis, reimburse Buyer for any and all actual costs and expenses reasonably incurred by Buyer in connection with Buyer’s activities pursuant to this Section 28 and for Buyer’s actual costs and out-of-pocket expenses incurred in connection with due diligence reviews with respect to Eligible Loans which either Seller proposes to make the subject of a Transaction under this Agreement; provided that so long as no Event of Default has occurred and is continuing, Buyer shall pay for any Appraisals requested by Buyer.

	
29.

	
SERVICING

(a)           Sellers and Buyer agree that all Servicing Rights with respect to the Purchased Loans are being transferred hereunder to Buyer on the applicable Purchase Date and such Servicing Rights shall be transferred by Buyer to the applicable Seller upon such applicable Seller’s payment of the Repurchase Price for such applicable Purchased Loan.  Notwithstanding the purchase and sale of the Purchased Loans and Servicing Rights hereby, the applicable Seller or, upon request by the applicable Seller, Servicer, shall be granted a revocable license to exercise the Servicing Rights with respect to the Purchased Loans for the benefit of Buyer and, if Buyer shall exercise its rights to pledge or hypothecate a Purchased Loan prior to the Repurchase Date pursuant to Section 8, Buyer’s assigns (which license shall be deemed automatically revoked upon the occurrence and during the continuance of an Event of Default).  The applicable Seller shall cause Servicer to service the Purchased Loans pursuant to the Servicing Agreement, in each case, in accordance with Accepted Servicing Practices.  The applicable Seller shall obtain the written consent of Buyer prior to appointing any third party Servicer for a Purchased Loan (other than the Persons pre-approved in the definition of Servicer) or entering into or amending or modifying any Servicing Agreement with a Servicer (other than the entry into the initial Servicing Agreement with Situs Asset Management LLC, as initial Servicer).

(b)           Sellers agree that, upon Buyer’s purchase of each Purchased Loan, Buyer is the owner of all related servicing records, files, documents, records, data bases, computer tapes, copies of computer tapes, proof of insurance coverage, insurance policies, appraisals, other closing documentation, payment history records, and any other records relating to or evidencing the servicing of Purchased Loans (collectively, the “Servicing Records”) until the Repurchase Price for such Purchased Loan has been paid to Buyer.  Each Seller covenants to safeguard such Servicing Records which are in such Seller’s possession or in the possession of any Affiliate of such Seller and to deliver them promptly to Buyer or its designee (including the Custodian) at Buyer’s request.

(c)           Upon the occurrence and during the continuance of an Event of Default, Buyer may, in its sole discretion, (i) sell its right to the Purchased Loans on a servicing released basis or (ii) terminate any Servicer of the Purchased Loans with or without cause, in each case without payment of any termination fee.

(d)           Neither Seller shall employ or permit Servicer to employ sub-servicers to service the Purchased Loans without the prior written approval of Buyer in its sole discretion; provided that Servicer may delegate certain administrative functions to third parties without Buyer’s consent.

 

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(e)          The payment of servicing fees under any Servicing Agreement not otherwise paid pursuant to such Servicing Agreement or paid in accordance with this Agreement, shall be solely the obligation of Sellers.

	
30.

	
MISCELLANEOUS

(a)           All rights, remedies and powers of Buyer hereunder and in connection herewith are irrevocable and cumulative, and not alternative or exclusive, and shall be in addition to all other rights, remedies and powers of Buyer whether under law, equity or agreement.  In addition to the rights and remedies granted to it in this Agreement, to the extent this Agreement is determined to create a security interest, Buyer shall have all rights and remedies of a secured party under the UCC.

(b)           The Transaction Documents may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.  Signatures delivered by email (in PDF format) shall be considered binding with the same force and effect as original signatures.

(c)           The headings in the Transaction Documents are for convenience of reference only and shall not affect the interpretation or construction of the Transaction Documents.

(d)           Without limiting the rights and remedies of Buyer under the Transaction Documents, Sellers shall, on a joint and several basis, pay Buyer’s reasonable actual out-of-pocket costs and expenses, including reasonable fees and expenses of outside counsel, incurred in connection with (i) the preparation, documentation, negotiation, execution and consummation of the Transaction Documents and of any Transactions under the Transaction Documentation, (ii) any amendment, restatement, supplement or modification to, the Transaction Documents and any Transactions thereunder, and (iii) any ongoing diligence undertaken in accordance with Section 28 (including expenses of third-party experts engaged in connection therewith).  In connection with Buyer’s due diligence review of each Eligible Loan proposed by a Seller for purchase by Buyer pursuant to Section 3(a), Buyer shall endeavor to keep its fees and expenses of outside counsel at or below $5,000 (it being understood and agreed that notwithstanding the foregoing, Sellers shall nevertheless be liable for Buyer’s reasonable, out-of-pocket fees and expenses of outside counsel in excess of $5,000 should such fees exceed such amount despite Buyer’s intentions).  In addition, Sellers agree, on a joint and several basis, to pay Buyer promptly all out-of-pocket costs and expenses (including actual out-of-pocket costs and expenses for outside counsel) of any subsequent enforcement of any of the provisions hereof or of any Transaction Document, or of the performance by Buyer of any obligations of a Seller in respect of the Purchased Loans, or any actual or attempted sale, or any exchange, enforcement, collection, compromise or settlement in respect of any of the Collateral or Pledged Collateral and for the custody, care or preservation of the Collateral and Pledged Collateral (including insurance costs) and defending or asserting rights and claims of Buyer in respect thereof, by litigation or otherwise.  In addition, Sellers agree, on a joint and several basis, to pay Buyer promptly all reasonable out-of-pocket costs and expenses (including reasonable expenses for legal services) incurred in connection with the maintenance of the Waterfall Account and registering the Collateral and/or Pledged Collateral in the name of Buyer or its nominee.  All such expenses shall be recourse obligations of Sellers to Buyer under this Agreement.

(e)            Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or be invalid

 

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under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

(f)            This Agreement contains a final and complete integration of all prior expressions by the parties with respect to the subject matter hereof and thereof and shall constitute the entire agreement among the parties with respect to such subject matter, superseding all prior oral or written understandings.  This Agreement amends and restates (and as a result, replaces as of the A&R Closing Date) that certain Master Repurchase Agreement dated as of September 30, 2016 by and among QRS Seller, TRS Seller and Buyer.

(g)           The parties understand that this Agreement is a legally binding agreement that may affect such party’s rights.  Each party represents to the other that it has received legal advice from counsel of its choice regarding the meaning and legal significance of this Agreement and that it is satisfied with its legal counsel and the advice received from it.

(h)           Should any provision of this Agreement require judicial interpretation, it is agreed that a court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against any Person by reason of the rule of construction that a document is to be construed more strictly against the Person who itself or through its agent prepared the same, it being agreed that all parties have participated in the preparation of this Agreement.

	
31.

	
TAXES

(a)           Any and all payments by or on account of any obligation of Sellers under any Transaction Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of Sellers) requires the deduction or withholding of any Tax from any such payment, then Sellers shall make (or cause to be made) such deduction or withholding and shall timely pay (or cause to be timely paid) the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable shall be increased by Sellers as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 31) Buyer receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(b)           Sellers shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

(c)           Sellers shall, on a joint and several basis, indemnify Buyer, within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 31) payable or paid by Buyer or required to be withheld or deducted from a payment to Buyer, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Sellers by Buyer shall be conclusive absent manifest error.

(d)           Buyer shall deliver to Sellers, at the time or times reasonably requested by Sellers, such documentation reasonably requested by Sellers as will enable Sellers to determine whether or not payments hereunder or under any other Transaction Document to or for the benefit of Buyer are subject to tax withholding, backup withholding or information reporting requirements or are eligible for

 

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a reduced rate of withholding.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 31(d)(i)-(iii), or 31(e)) shall not be required if, in Buyer’s reasonable judgment, such completion, execution or submission would subject Buyer to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of Buyer.  Without limiting the generality of the foregoing:

 

(i)          On or prior to the date on which any Buyer that is a U.S. Person becomes a Buyer under this Agreement and prior to the entry in the applicable register of any assignment or participation to a U.S. Person (and from time to time thereafter as required by applicable law or upon the reasonable request of Sellers) Buyer shall deliver to Sellers two (2) executed originals of IRS Form W-9 (or successor forms) certifying that Buyer (and/or such assignee or participant) is exempt from U.S. federal backup withholding tax.

 

(ii)         On or prior to the date on which any Buyer that is not a U.S. Person becomes a Buyer under this Agreement and prior to the entry in the applicable register of any assignment or participation to any Person that is not a U.S. Person (and from time to time thereafter as required by applicable law or upon the reasonable request of Sellers) Buyer shall, to the extent it is legally entitled to do so, deliver to Sellers two (2) executed originals of  IRS Forms W-8ECI, W-8BEN, W-8BEN-E, W-8IMY (or any successor forms thereof, as applicable) or other applicable form, certificate or document prescribed by the United States Internal Revenue Service (including, if applicable, a certification establishing such Person’s eligibility for the portfolio interest exemption under Code Sections 881(c) or 871(h)) certifying as to such Person’s entitlement to exemption from, or reduction in the rate of, withholding Taxes.

(e)           If a payment made to Buyer (or any assignee or participant thereof) under any Transaction Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Person 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 Person shall deliver to the applicable Seller at the time or times prescribed by law and at such time or times reasonably requested by such Seller 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 such Seller as may be necessary for such Seller to comply with its obligations under FATCA and to determine that such Person has complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 31(e), “FATCA” shall include any amendments made to FATCA after the A&R Closing Date.

(f)            Buyer agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the applicable Seller in writing of its legal inability to do so.

(g)           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 31 (including by the payment of additional amounts pursuant to this Section 31), it shall pay to the applicable Seller an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). The applicable Seller shall, upon the request of

 

68

such indemnified party, repay to such indemnified party the amount paid over pursuant to this paragraph (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph, in no event will the indemnified party be required to pay any amount to any Seller pursuant to this paragraph the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to Sellers or any other Person.

(h)           Each party’s obligations under this Section 31 shall survive any assignment of rights by, or the replacement of, Buyer, the termination of the Transactions and the repayment, satisfaction or discharge of all obligations under any Transaction Document.

	
32.

	
CONFIDENTIALITY

Each party acknowledges that Confidential Information may be delivered from one party hereto (the “Disclosing Party”) to the other party hereto (the “Recipient”) pursuant to this Agreement.  The Recipient of any Confidential Information shall use no less than the same means it uses to protect its similar confidential and proprietary information, but in any event not less than reasonable means, to prevent the disclosure and to protect the confidentiality of the Confidential Information of the Disclosing Party.  Each party agrees that it will not disclose or use the Confidential Information of the other party except for the purposes of this Agreement and as authorized herein.  Notwithstanding the foregoing, the Recipient may use or disclose Confidential Information disclosed to it by the Disclosing Party as follows: (i) to Affiliates of such party or its or their respective directors, officers, employees, agents, advisors, attorneys, accountants and other representatives who are informed of the confidential nature of such Confidential Information and instructed to keep it confidential, (ii) to the extent requested by any regulatory authority, stock exchange, government department or agency, or required by law; provided, that, to the extent permitted by the requesting body, the Recipient provides the Disclosing Party with notice of such requirement prior to any such disclosure and requests that the requesting body afford confidential treatment to the Confidential Information disclosed, (iii) to the extent required to be included in the financial statements of the Recipient or an Affiliate thereof, (iv) to the extent required to exercise any rights or remedies under the Transaction Documents, Purchased Loans or underlying Mortgaged Property collateralizing any Purchased Loan, (v) to the extent required to consummate and administer a Transaction under the Transaction Documentation, (vi) in the event Recipient is legally compelled to disclose pursuant to deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process by court order of a court of competent jurisdiction, and (vii) to any actual or prospective investor, transferee or hedge counterparty that, in each case, agrees to comply with the confidentiality requirements of the Transaction Documentation (including this Section 32) and has signed a confidentiality agreement to that effect incorporating customary terms and conditions; provided that no such disclosure made with respect to any Transaction Document shall include a copy of such Transaction Document to the extent that a summary would suffice, but if it is necessary for a copy of any Transaction Document to be disclosed, all pricing and other economic terms set forth therein shall be redacted before disclosure (except if the disclosure of such information is necessary for any of the purposes set forth in clauses (i), (ii), (iv), (vi) or (vii) above).  In the event of any unauthorized disclosure or loss of, or inability to account for, Confidential Information of the Disclosing Party, the Recipient will notify the Disclosing Party immediately and will

 

69

take all available steps to terminate the unauthorized use or further unauthorized disclosure of the Confidential Information of the Disclosing Party.  Each Seller agrees to maintain the confidentiality of any information relating to a rate provided by a reference bank (as described in the definition of LIBOR), except (a) to its directors, officers, employees, advisors or affiliates on a confidential and need-to-know basis in connection herewith, (b) as consented to by the applicable reference bank or (c) as required by any Requirement of Law, or as requested or required by an Governmental Authority or regulatory authority or exchange (in which case such Seller agrees to inform the applicable reference bank promptly thereof prior to such disclosure).

	
33.

	
JOINT AND SEVERAL OBLIGATIONS

Each Seller shall be jointly and severally liable for the full, complete and punctual performance and satisfaction of all obligations of any Seller under this Agreement and the other Transaction Documents (irrespective of whether or not such obligation is expressly noted by its terms as being a joint and several obligation of Sellers). Accordingly, each Seller waives any and all notice of creation, renewal, extension or accrual of any of the obligations of any Seller under this Agreement and the other Transaction Documents and notice of or proof of reliance by Buyer upon each Seller’s joint and several liability.  Each Seller waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon such Seller with respect to the obligations of any Seller under this Agreement and the other Transaction Documents.  When pursuing its rights and remedies hereunder against any Seller, Buyer may, but shall be under no obligation, to pursue such rights and remedies hereunder against any Seller or any other Person or against any collateral security therefor or any right of offset with respect thereto, and any failure by Buyer to pursue such other rights or remedies or to collect any payments from such Seller or any such other Person to realize upon any such collateral security or to exercise any such right of offset, or any release of such Seller or any such other Person or any such collateral security, or right of offset, shall not relieve such Seller of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Buyer against such Seller.

 

[Remainder of page intentionally blank]

 

70

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

	 	
BUYER:

	 
	 	 	 
	 	
GOLDMAN SACHS BANK USA

	 
	 	 	 	 
	 	
By:

	
/S/ Jeffrey Dawkins

	 
	 		
Name:

	
Jeffrey Dawkins

	 
	 		
Title:

	
Authorized Person

	 

 

[Signature Page to Amended &Restated Master Repurchase Agreement]

 

	 	
SELLERS:

	 
	 	 	 
	 	
KREF LENDING III LLC,

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	
/S/ Patrick Mattson 

	 
	 		
Name:

	
Patrick Mattson

	 
	 		
Title:

	
Authorized Signatory

	 

	 	
KREF LENDING III TRS LLC,

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	
/S/ Patrick Mattson 

	 
	 		
Name:

	
Patrick Mattson

	 
	 		
Title:

	
Authorized Signatory

	 

 

[Signature Page to Amended &Restated Master Repurchase Agreement]

 

ANNEXES AND EXHIBITS

 

	
ANNEX I

	
Names and Addresses for Communications between Parties

	
EXHIBIT I-A

	
Form of Swingline Transaction Confirmation

	
EXHIBIT I-B

	
Form of Term Transaction Confirmation

	
EXHIBIT II

	
Authorized Representatives of Sellers

	
EXHIBIT III

	
Form of Custodial Delivery

	
EXHIBIT IV

	
Eligible Loan Due Diligence Checklist

	
EXHIBIT V

	
Form of Power of Attorney

	
EXHIBIT VI

	
Representations and Warranties Regarding Each Individual Purchased Loan

	
EXHIBIT VII

	
Loan Asset Summary Report

	
EXHIBIT VIII

	
Form of Transaction Request

	
EXHIBIT IX

	
Form of Future Funding Request

	
EXHIBIT X

	
Form of Remainder Interest Transfer Notice

 

ANNEX I

Organization, Names and Addresses for Communications Between Parties

Buyer:

Address:

	 	
GOLDMAN SACHS BANK USA

	 	
200 West Street, 7th Floor

	 	
New York, New York 10282

	 	
Attention: Jeffrey Dawkins

	 	
Tel:  (212) 902-6852

	 	
Email: jeffrey.dawkins@gs.com

	 	 
	 	
With additional email notifications to:

	 	 
	 	
Email: gs-refgwarehouse@gs.com

	 	
Email: gs-warehouselending@gs.com

	 	 
	 	
And, with respect to deliverables under Section 12(h)(i), 12(h)(ii), 12(h)(iii), additional email notifications to:

	 	 
	 	
Email: gs-warehousecovenants@gs.com

	 	 
	 	
With copies to:

	 	 
	 	
Arnold & Porter Kaye Scholer LLP

	 	
250 West 55th Street

	 	
New York, New York 10019-9710

	 	
Attention:  Jonathan Arkins

	 	
Tel:  (212) 836-7403

	 	
Email:  Jonathan.Arkins@apks.com

Sellers:

Jurisdiction of Organization for QRS Seller and TRS Seller: Delaware

Address for QRS Seller:

	 	
KREF LENDING III LLC

	 	
9 West 57th Street, Suite 4200

	 	
New York, New York 10019

	 	
Attention:  Patrick Mattson

	 	
Tel:  (212) 519-1656

	 	
Email: Patrick.mattson@kkr.com

 

	 	
With copies to:

	 	 
	 	
Paul Hastings LLP

	 	
200 Park Avenue

	 	
New York, New York 10166

	 	
Attention:  John A. Cahill, Esq

	 	
Tel:  (212) 318-6260

	 	
Email: johncahill@paulhastings.com

Address for TRS Seller:

	 	
KREF LENDING III TRS LLC

	 	
9 West 57th Street, Suite 4200

	 	
New York, New York 10019

	 	
Attention:  Patrick Mattson

	 	
Tel:  (212) 519-1656

	 	
Email: Patrick.mattson@kkr.com

	 	 
	 	
With copies to:

	 	 
	 	
Paul Hastings LLP

	 	
200 Park Avenue

	 	
New York, New York 10166

	 	
Attention:  John A. Cahill, Esq

	 	
Tel:  (212) 318-6260

	 	
Email: johncahill@paulhastings.com

 

EXHIBIT I-A

CONFIRMATION STATEMENT

FOR SWINGLINE TRANSACTIONS

Ladies and Gentlemen:

GOLDMAN SACHS BANK USA, is pleased to deliver our written CONFIRMATION of our agreement to enter into this SWINGLINE TRANSACTION pursuant to which GOLDMAN SACHS BANK USA shall purchase from you the Purchased Loans identified in the Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Agreement”), among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC, a Delaware limited liability company (“QRS Seller”) and KREF LENDING III TRS LLC, a Delaware limited liability company (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”) as follows below and on the attached Schedule 1.  Capitalized terms used herein without definition have the meanings given in the Agreement.

	 	
Seller:

	
[KREF LENDING III LLC][ KREF LENDING III TRS LLC]

	 	
Purchase Date:

	
__________, 20__

	 	
Purchased Loan:

	
As identified on attached Schedule 1

	 	
Aggregate Principal Amount:

	
[$_________________]

	 	
Repurchase Date:

	
[______, 20__]

	 	
Purchase Price:

	
[$_________________]

	 	
Purchase Price Rate as of

the Purchase Date:

	
[__]%

 

	 	
Maximum Purchase

Price Rate:

	
Period

	
Maximum 

Purchase 

Price Rate

	
From [Purchase Date] through to and including [6 MNTH]:

	
[__]%

	
From but excluding [6 MNTH] through to and including [12 MNTH]:

	
[__]%

	
From but excluding [12 MNTH] through to and including [18 MNTH]:

	
[__]%

	
From but excluding [18 MNTH] through to and including [36 MNTH]:

	
[__]%

	
After [36 MNTH]:

	
0%

 

	 	
Applicable Spread:

	
Period

 

	
Applicable 

Spread

	
From [Purchase Date] through to and including [3 MNTH]:

	
[__]%

 

			
From but excluding [3 MNTH] through to and including [6 MNTH]:

	
[__]%

	
From but excluding [6 MNTH] through to and including [12 MNTH]:

	
[__]%

	
From but excluding [12 MNTH] through to and including [18 MNTH]:

	
[__]%

	
From but excluding [18 MNTH] through to and including [24 MNTH]:

	
[__]%

	
After [24 MNTH]:

	
[__]%

	 	 	 
	 	
Origination Date LTV:

	
[__]%

	 	
Buyer LTV as of the

Purchase Date:

	
[__]%

	 	 	 
	 	
Buyer LTV Target:

	
Period

	
Buyer LTV

Target

	
From [Purchase Date] through to and including [6 MNTH]:

	
[__]%

	
From but excluding [6 MNTH] through to and including [12 MNTH]:

	
[__]%

	
From but excluding [12 MNTH] through to and including [18 MNTH]:

	
[__]%

	
After [18 MNTH]:

	
[__]%

	 	 	 	 
	 	
 

 

Buyer LTV Maximum:

	
Period

	
Buyer LTV

 Maximum

	
From [Purchase Date] through to and including [6 MNTH]:

	
[__]%

	
From but excluding [6 MNTH] through to and including [12 MNTH]:

	
[__]%

	
From but excluding [12 MNTH] through to and including [18 MNTH]:

	
[__]%

	
After [18 MNTH]:

	
[__]%

	 	 	 
	 	
Governing Agreements:

	
As identified on attached Schedule 1

	 	 	 
	 	
Future Funding Eligible Loan:

	
[YES][NO]

	 	 	 
	 	
Extension Fee Payment

	
Extension Fee Payment Date

	
Extension

 

 

		
Date Schedule:

	 	
Fee Rate

	
[6 MNTH]

	
[__]%

	
[12 MNTH]

	
[__]%

	
[24 MNTH]

	
[__]%

 

	
Name and address for

	
Buyer:

	
GOLDMAN SACHS BANK USA

	
communications:

	 	
200 West Street, 7th Floor

	 	 	
New York, New York 10282

	 	 	
Attention: Jeffrey Dawkins

	 	 	
Tel:  (212) 902-6852

	 	 	
Email: jeffrey.dawkins@gs.com

	 	 	 
	 	 	
With additional email notifications to:

	 	 	 
	 	 	
Email: gs-refgwarehouse@gs.com

	 	 	
Email: gs-warehouselending@gs.com

	 	 	 
	 	
Seller:

	
[KREF LENDING III LLC][ KREF LENDING III TRS LLC]

	 	 	
9 West 57th Street, Suite 4200

	 	 	
New York, New York 10019

	 	 	
Attention:  Patrick Mattson

	 	 	
Tel:  (212) 519-1656

	 	 	
Email: patrick.mattson@kkr.com

 

	 	
GOLDMAN SACHS BANK USA

	 	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 	 

 

	
AGREED AND ACKNOWLEDGED:

	 
	 	 
	
[KREF LENDING III LLC][KREF LENDING III TRS LLC],

	 
	
a Delaware limited liability company

	 
	 	 	 
	
By:

	  	 	 
	
Name:

	 	 
	
Title:

	 	 

 

Schedule 1 to Confirmation Statement

 

	
Seller:

	 
	 	 
	
Purchased Loan:

	 
	 	 
	
Governing Agreements:

	 

 

EXHIBIT I-B

CONFIRMATION STATEMENT

FOR TERM TRANSACTIONS

Ladies and Gentlemen:

GOLDMAN SACHS BANK USA, is pleased to deliver our written CONFIRMATION of our agreement to enter into this TERM TRANSACTION pursuant to which GOLDMAN SACHS BANK USA shall purchase from you the Purchased Loans identified in the Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Agreement”), among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC, a Delaware limited liability company (“QRS Seller”) and KREF LENDING III TRS LLC, a Delaware limited liability company (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”) as follows below and on the attached Schedule 1.  Capitalized terms used herein without definition have the meanings given in the Agreement.

	 	
Seller:

	
[KREF LENDING III LLC][ KREF LENDING III TRS LLC]

	 	
Purchase Date:

	
__________, 20__

	 	
Purchased Loan:

	
As identified on attached Schedule 1

	 	
Aggregate Principal Amount:

	
[$_________________]

	 	
Repurchase Date:

	
[______, 20__]

	 	
Purchase Price:

	
[$_________________]

	 	
Purchase Price Rate as of

the Purchase Date:

	
[__]%

	 	
Maximum Purchase

Price Rate:

	
[80] 1 [75]%; as may be reduced on the Term Availability Period End Date in accordance with the definition of “Maximum Purchase Price Rate”.

	 	
Applicable Spread (prior to the

Term Availability Period End Date):

	
[__]%

	 	
Applicable Spread (on and after the

Term Availability Period End Date):

	
[__]%2

	 	
Origination Date LTV:

	
[__]%

	 	
Buyer LTV as of the

Purchase Date:

	
[__]%

	 	
Buyer LTV Target:

	
[__]%

	 	
Buyer LTV Maximum:

	
[__]%

	 	
Governing Agreements:

	
As identified on attached Schedule 1

	 	
Future Funding Eligible Loan:

	
[YES][NO]

	
1

	
80% Maximum Purchase Price Rate applicable only to multifamily property.

	
2

	
Equals the Applicable Spread (prior to the Term Availability Period End Date) plus 25bps.

	
Name and address for

	
Buyer:

	
GOLDMAN SACHS BANK USA

	
communications:

	 	
200 West Street, 7th Floor

	 	 	
New York, New York 10282

	 	 	
Attention: Jeffrey Dawkins

	 	 	
Tel:  (212) 902-6852

	 	 	
Email: jeffrey.dawkins@gs.com

	 	 	 
	 	 	
With additional email notifications to:

	 	 	 
	 	 	
Email: gs-refgwarehouse@gs.com

	 	 	
Email: gs-warehouselending@gs.com

	 	 	 
	 	
Seller:

	
[KREF LENDING III LLC][ KREF LENDING III TRS LLC]

	 	 	
9 West 57th Street, Suite 4200

	 	 	
New York, New York 10019

	 	 	
Attention:  Patrick Mattson

	 	 	
Tel:  (212) 519-1656

	 	 	
Email: patrick.mattson@kkr.com

 

	 	
GOLDMAN SACHS BANK USA

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 	 

 

	
AGREED AND ACKNOWLEDGED:

	 
	 	 
	
[KREF LENDING III LLC][KREF LENDING III TRS LLC],

	 
	
a Delaware limited liability company

	 
	 	 	 
	
By:

	 	 	 
	
Name:

	 	 
	
Title:

	 	 

 

Schedule 1 to Confirmation Statement

 

	
Seller:

	 
	 	 
	
Purchased Loan:

	 
	 	 
	
Governing Agreements:

	 

 

EXHIBIT II

AUTHORIZED REPRESENTATIVES OF SELLERS

	
Name

	 	
Specimen Signature

	 	 	 
	
Christen (Chris) Lee

	 	
/s/ Christen (Chris) Lee

	 	 	 
	
Matthew Salem

	 	
/s/ Matthew Salem

	 	 	 
	
Patrick Mattson

	 	
/s/ Patrick Mattson

	 	 	 
	
William Miller

	 	
/s/ William Miller

 

EXHIBIT III

FORM OF CUSTODIAL DELIVERY

On this ______ of ________, 20__, [_______________], as [QRS Seller][TRS Seller] under that certain Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Repurchase Agreement”) among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC, a Delaware limited liability company (“QRS Seller”) and KREF LENDING III TRS LLC, a Delaware limited liability company (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”), does hereby deliver to Wells Fargo Bank, National Association (“Custodian”), as custodian under that certain Custodial Agreement, dated as of September 30, 2016 (the “Custodial Agreement”), among Buyer, Custodian and Sellers, the Purchased Loan Files with respect to the Purchased Loans to be purchased by Buyer pursuant to the Repurchase Agreement, which Purchased Loans are listed on the Purchased Loan Schedule attached hereto and which Purchased Loans shall be subject to the terms of the Custodial Agreement on the date hereof.

With respect to the Purchased Loan Files delivered hereby, for the purposes of issuing the Trust Receipt, the Custodian shall review the Purchased Loan Files to ascertain delivery of the documents listed in Section 2.01 to the Custodial Agreement.  The Trust Receipt, once issued, should be sent directly to Buyer at the following address:

	 	
GOLDMAN SACHS BANK USA

	 
	 	
200 West Street, 7th Floor

	 
	 	
New York, New York 10282

	 
	 	
Attention: Jeffrey Dawkins

	 
	 	
Tel:  (212) 902-6852

	 
	 	
Email: jeffrey.dawkins@gs.com

	 
	 	 	 
	 	
With additional email notifications to:

	 
	 		 
	 	
Email: gs-refgwarehouse@gs.com

	 
	 	
Email: gs-warehouselending@gs.com

	 

Capitalized terms used herein and not otherwise defined have the meanings set forth in the Repurchase Agreement.

IN WITNESS WHEREOF, [QRS Seller][TRS Seller] has caused its name to be signed hereto by its officer thereunto duly authorized as of the day and year first above written.

	 	
[KREF LENDING III LLC][KREF LENDING III TRS LLC],

	 	
a Delaware limited liability company

	 
	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

Attachment to Custodial Delivery

Purchased Loan Schedule

 [Attached]

 

EXHIBIT IV

ELIGIBLE LOAN DUE DILIGENCE CHECKLIST

General Information

Asset Summary Report

Site Inspection Report

Maps and Photos

Borrower/Sponsor Information

Credit Reports

Financial Statements & Tax Returns

Borrower Structure or Org Chart

Bankruptcy and Foreclosure History

Know Your Customer Diligence Materials

Property Information

Historical Operating Statements

Rent Rolls

Budget

Insurance Review

Retail Sales Figures

Market Survey

Leasing Information

Stacking Plan

Major Leases

Tenant Estoppels

Standard Lease Forms

SNDA’s

Third Party Reports

Appraisals

Environmental Site Assessments

Engineering Reports

Seismic Reports

Property and Zoning Report

Other Information

Hotel Franchise Compliance Reports

Hotel Franchise Agreement

Hotel Franchise Comfort Letters

Ground Lease

Management Contract

Documentation

Purchase and Sale Agreement

Closing Statement

 

Legal Binder

 

EXHIBIT V

FORM OF POWER OF ATTORNEY

Know All Men by These Presents, that [KREF LENDING III LLC][KREF LENDING III TRS LLC] (“Seller”), does hereby appoint GOLDMAN SACHS BANK USA (“Buyer”), its attorney-in-fact to act in Seller’s name, place and stead in any way which Seller could do with respect to (i) the completion of the endorsements of the Mortgage Notes and the Assignments of Mortgages, (ii) the recordation of the Assignments of Mortgages and (iii) the enforcement of Seller’s rights under the Purchased Loans purchased by Buyer pursuant to the Amended & Restated Master Repurchase Agreement dated as of November 1, 2017 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Repurchase Agreement”), among Buyer, Seller and [KREF LENDING III LLC][KREF LENDING III TRS LLC], and to take such other steps as may be necessary or desirable to enforce Buyer’s rights against such Purchased Loans, the related Purchased Loan Files and the Servicing Records to the extent that Seller is permitted by law to act through an agent.

 

Capitalized terms used herein and not otherwise defined have the meanings set forth in the Repurchase Agreement.

TO INDUCE ANY THIRD PARTY TO ACT HEREUNDER, SELLER HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OF FACSIMILE OF THIS INSTRUMENT MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR KNOWLEDGE OR SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND SELLER ON ITS OWN BEHALF AND ON BEHALF OF SELLER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

IN WITNESS WHEREOF Seller has caused this Power of Attorney to be executed as a deed this __ day of ____________, 2017.

 

	 	
[KREF LENDING III LLC] [KREF LENDING III TRS LLC],

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

EXHIBIT VI

 

REPRESENTATIONS AND WARRANTIES

REGARDING EACH INDIVIDUAL PURCHASED LOAN

With respect to each Purchased Loan and the related Mortgaged Property or Mortgaged Properties, on the related Purchase Date and at all times while this Agreement and any Transaction contemplated hereunder is in effect, Seller shall be deemed to make the following representations and warranties to Buyer as of such date; provided, however, that, with respect to any Purchased Loan, such representations and warranties shall be deemed to be modified by any exceptions hereto contained in Schedule 2 attached to the related Transaction Request delivered by Seller to Buyer prior to the issuance of a Confirmation with respect thereto.

 

	(1)	
Whole Loan; Ownership of Purchased Loans.  Each Purchased Loan is an Eligible Loan.  At the time of the sale, transfer and assignment to Buyer, no Mortgage Note or Mortgage was subject to any assignment (other than assignments to Seller), participation or pledge, and Seller had good title to, and was the sole owner of, each Purchased Loan free and clear of any and all liens, charges, pledges, encumbrances, participations, any other ownership interests on, in or to such Purchased Loan.  Seller has full right and authority to sell, assign and transfer each Purchased Loan, and the assignment to Buyer constitutes a legal, valid and binding assignment of such Purchased Loan free and clear of any and all liens, pledges, charges or security interests of any nature encumbering such Purchased Loan.

 

	(2)	
Loan Document Status.  Each related Mortgage Note, Mortgage, Assignment of Leases (if a separate instrument), guaranty and other agreement executed by or on behalf of the related Mortgagor, guarantor or other obligor in connection with such Purchased Loan is the legal, valid and binding obligation of the related Mortgagor, guarantor or other obligor (subject to any non-recourse provisions contained in any of the foregoing agreements and any applicable state anti-deficiency, one-action or market value limit deficiency legislation), as applicable, and is enforceable in accordance with its terms, except (a) as such enforcement may be limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law) and (b) that certain provisions in such Purchased Loan Documents (including, without limitation, provisions requiring the payment of default interest, late fees or prepayment/yield maintenance or prepayment fees, charges and/or premiums) are, or may be, further limited or rendered unenforceable by or under applicable law, but (subject to the limitations set forth in clause (a) above) such limitations or unenforceability will not render such Purchased Loan Documents invalid as a whole or materially interfere with the Mortgagee’s realization of the principal benefits and/or security provided thereby (clauses (a) and (b) collectively, the “Standard Qualifications”).  Except as set forth in the immediately preceding sentences, there is no valid offset, defense, counterclaim or right of rescission available to the related Mortgagor with respect to any of the related Mortgage Notes, Mortgages or other Purchased Loan Documents, including, without limitation, any such valid offset, defense, counterclaim or right based on intentional fraud by Seller in connection with the origination of the Purchased Loan, that would deny the Mortgagee the principal benefits intended to be provided by the Mortgage Note, Mortgage or other Purchased Loan Documents.

 

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	(3)	
Mortgage Provisions.  The Purchased Loan Documents for each Purchased Loan contain provisions that render the rights and remedies of the holder thereof adequate for the practical realization against the Mortgaged Property of the principal benefits of the security intended to be provided thereby, including realization by judicial or, if applicable, non-judicial foreclosure subject to the limitations set forth in the Standard Qualifications.

 

	(4)	
Hospitality Provisions.  The Purchased Loan Documents for each Purchased Loan that is secured by a hospitality property operated pursuant to a franchise agreement includes an executed comfort letter or similar agreement signed by the Mortgagor and franchisor of such property enforceable against such franchisor, either directly or as an assignee of the originator.  The Mortgage or related security agreement for each Purchased Loan secured by a hospitality property creates a security interest in the revenues of such property for which a UCC financing statement has been filed in the appropriate filing office.

 

	(5)	
Mortgage Status; Waivers and Modifications.  Since origination and except by written instruments set forth in the related Purchased Loan File or as otherwise provided in the related Purchased Loan Documents (a) the material terms of such Mortgage, Mortgage Note, guaranty and related Purchased Loan Documents have not been waived, impaired, modified, altered, satisfied, canceled, subordinated or rescinded in any respect that could have a material adverse effect on Purchased Loan; (b) no related Mortgaged Property or any portion thereof has been released from the lien of the related Mortgage in any manner which materially interferes with the security intended to be provided by such Mortgage or the use or operation of the remaining portion of such Mortgaged Property; and (c) neither the Mortgagor nor the related guarantor nor the related participating Person has been released from its material obligations under the Purchased Loan Documents.  With respect to each Purchased Loan, except as contained in a written document included in the Purchased Loan File, there have been no modifications, amendments or waivers, that could be reasonably expected to have a material adverse effect on such Purchased Loan consented to by Seller.

 

	(6)	
Lien; Valid Assignment.  Subject to the Standard Qualifications, each Assignment of Mortgage and assignment of Assignment of Leases to Buyer constitutes a legal, valid and binding assignment to Buyer.  Each related Mortgage and Assignment of Leases is freely assignable without the consent of the related Mortgagor.  Each related Mortgage is a legal, valid and enforceable first lien on the related Mortgagor’s fee or leasehold interest in the Mortgaged Property in the principal amount of such Purchased Loan or allocated loan amount (subject only to Permitted Encumbrances), except as the enforcement thereof may be limited by the Standard Qualifications.  Such Mortgaged Property (subject to and excepting Permitted Encumbrances) is free and clear of any recorded mechanics’ liens, recorded materialmen’s liens and other recorded encumbrances, and no rights exist which under law could give rise to any such lien or encumbrance that would be prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by a Title Policy (as defined below).  Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Purchased Loan establishes and creates a valid and enforceable lien on property described therein, except as such enforcement may be limited by Standard Qualifications subject to the limitations described in Paragraph (9) below.  Notwithstanding anything herein to the contrary, no representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of UCC financing statements is required in order to effect such perfection.

 

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	(7)	
Permitted Liens; Title Insurance.  Each Mortgaged Property securing a Purchased Loan is covered by an American Land Title Association loan title insurance policy or a comparable form of loan title insurance policy approved for use in the applicable jurisdiction (or, if such policy is yet to be issued, by a pro forma policy, a preliminary title policy with escrow instructions or a “marked up” commitment, in each case binding on the title insurer) (the “Title Policy”) in the original principal amount of such Purchased Loan (or with respect to a Purchased Loan secured by multiple properties, an amount equal to at least the allocated loan amount with respect to the Title Policy for each such property) after all advances of principal (including any advances held in escrow or reserves), that insures for the benefit of the owner of the indebtedness secured by the Mortgage, the first priority lien of the Mortgage, which lien is subject only to (a) the lien of current real property taxes, water charges, sewer rents and assessments due and payable but not yet delinquent; (b) covenants, conditions and restrictions, rights of way, easements and other matters of public record; (c) the exceptions (general and specific) and exclusions set forth in such Title Policy; (d) other matters to which like properties are commonly subject; and (e) the rights of tenants (as tenants only) under leases (including subleases) pertaining to the related Mortgaged Property and condominium declarations; provided that none of which items (a) through (e), individually or in the aggregate, materially and adversely interferes with the value or current use of the Mortgaged Property or the security intended to be provided by such Mortgage or the Mortgagor’s ability to pay its obligations when they become due (collectively, the “Permitted Encumbrances”).  None of the Permitted Encumbrances are mortgage liens that are senior to or coordinate and co-equal with the lien of the related Mortgage.  Such Title Policy (or, if it has yet to be issued, the coverage to be provided thereby) is in full force and effect, all premiums thereon have been paid and no claims have been made by Seller thereunder and no claims have been paid thereunder.  Neither Seller, nor to Seller’s knowledge, any other holder of the Purchased Loan, has done, by act or omission, anything that would materially impair the coverage under such Title Policy.  Each Title Policy contains no exclusion for, or affirmatively insures (except for any Mortgaged Property located in a jurisdiction where such affirmative insurance is not available in which case such exclusion may exist), (a) that the area shown on the survey is the same as the property legally described in the Mortgage and (b) to the extent that the Mortgaged Property consists of two or more adjoining parcels, such parcels are contiguous.

 

	(8)	
Junior Liens.  There are no subordinate mortgages or junior liens securing the payment of money encumbering the related Mortgaged Property (other than Permitted Encumbrances).  Seller has no knowledge of any mezzanine debt secured directly by interests in the related Mortgagor.

 

	(9)	
Assignment of Leases.  There exists as part of the related Purchased Loan File an Assignment of Leases (either as a separate instrument or incorporated into the related Mortgage).  Subject to the Permitted Encumbrances, each related Assignment of Leases creates a valid first-priority collateral assignment of, or a valid first-priority lien or security interest in, rents and certain rights under the related lease or leases, subject only to a license granted to the related Mortgagor to exercise certain rights and to perform certain obligations of the lessor under such lease or leases, including the right to operate the related leased property, except as the enforcement thereof may be limited by the Standard Qualifications.  No Person other than the related Mortgagor owns any interest in any payments due under such lease or leases that is superior to or of equal priority with the Mortgagee’s interest therein.  The related Mortgage or related Assignment of Leases, subject to applicable law, provides that, upon an event of default under the Purchased Loan, a receiver is permitted to be appointed for the collection of rents or for the related Mortgagee to enter into possession to collect the rents or for rents to be paid directly to the Mortgagee.

 

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	(10)	
UCC Filings.  Seller has filed and/or recorded or caused to be filed and/or recorded (or, if not filed and/or recorded, have been submitted in proper form for filing and/or recording), UCC-1 financing statements in the appropriate public filing and/or recording offices necessary at the time of the origination of the Purchased Loan to perfect a valid security interest in all items of physical personal property reasonably necessary to operate such Mortgaged Property owned by such Mortgagor and located on the related Mortgaged Property (other than any non-material personal property, any personal property subject to a purchase money security interest, a sale and leaseback financing arrangement as permitted under the terms of the related Purchased Loan Documents or any other personal property leases applicable to such personal property), to the extent perfection may be effected pursuant to applicable law by recording or filing, as the case may be.  Subject to the Standard Qualifications, each related Mortgage (or equivalent document) creates a valid and enforceable lien and security interest on the items of personalty described above.  No representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of UCC-1 financing statements are required in order to effect such perfection.  Each UCC-1 financing statement, if any, filed with respect to personal property constituting a part of the related Mortgaged Property and each UCC-2 or UCC-3 assignment, if any, of such financing statement to Seller was in suitable form for filing in the filing office in which such financing statement was filed.

 

	(11)	
Condition of Property.  Seller or the originator of the Purchased Loan inspected or caused to be inspected each related Mortgaged Property within six months of origination of the Purchased Loan and within twelve months of the Purchase Date.  An engineering report or property condition assessment was prepared in connection with the origination of each Purchased Loan no more than twelve months prior to the Purchase Date.  To Seller’s knowledge, based solely upon due diligence customarily performed in connection with the origination of comparable mortgage loans, each related Mortgaged Property was (a) free and clear of any material damage, (b) in good repair and condition and (c) is free of structural defects, except in each case (i) for any damage or deficiencies that would not materially and adversely affect the use, operation or value of such Mortgaged Property as security for the Purchased Loan, (ii) if such repairs have been completed or (iii) if escrows in an aggregate amount consistent with the standards utilized by Seller with respect to similar loans its holds for its own account have been established, which escrows will in all events be in an aggregate amount not less than the estimated cost of such repairs.  Seller has no knowledge of any material issues with the physical condition of the Mortgaged Property that Seller believes would have a material adverse effect on the use, operation or value of the Mortgaged Property other than those disclosed in the engineering report and those addressed in clauses (i), (ii) and (iii) above.

 

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	(12)	
Taxes and Assessments.  All real estate taxes, governmental assessments and other similar outstanding governmental charges (including, without limitation, water and sewage charges), or installments thereof, that could be a lien on the related Mortgaged Property that would be of equal or superior priority to the lien of the Mortgage and that prior to the Purchase Date have become delinquent in respect of each related Mortgaged Property have been paid, or, if the appropriate amount of such taxes or charges is being appealed or is otherwise in dispute, an escrow of funds has been established in an amount sufficient to cover such payments and reasonably estimated interest and penalties, if any, thereon.  For purposes of this Paragraph (12), real estate taxes and governmental assessments and other outstanding governmental charges and installments thereof shall not be considered delinquent until the earlier of (a) the date on which interest and/or penalties would first be payable thereon and (b) the date on which enforcement action is entitled to be taken by the related taxing authority.

 

	(13)	
Condemnation.  As of the date of origination and to Seller’s knowledge as of the Purchase Date, there is no proceeding pending, and, to Seller’s knowledge as of the date of origination and as of the Purchase Date, there is no proceeding threatened, for the total or partial condemnation of such Mortgaged Property that would have a material adverse effect on the value, use or operation of the Mortgaged Property.

 

	(14)	
Actions Concerning Purchased Loan.  As of the date of origination and to Seller’s knowledge as of the Purchase Date, there was no pending, filed or threatened action, suit or proceeding, arbitration or governmental investigation involving any Mortgagor, guarantor, or the Mortgaged Property, an adverse outcome of which would reasonably be expected to materially and adversely affect (a) such Mortgagor’s title to the Mortgaged Property, (b) the validity or enforceability of the Mortgage, (c) such Mortgagor’s ability to perform under the related Purchased Loan Documents, (d) such guarantor’s ability to perform under the related guaranty, (e) the use, operation or value of the Mortgaged Property, (f) the principal benefit of the security intended to be provided by the Purchased Loan Documents, (g) the current ability of the Mortgaged Property to generate net cash flow sufficient to service such Purchased Loan or (h) the current principal use of the Mortgaged Property.

 

	(15)	
Escrow Deposits.  All escrow deposits and payments required to be escrowed with Mortgagee pursuant to the Purchased Loan Documents are in the possession, or under the control, of Seller or its servicer, and there are no deficiencies (subject to any applicable grace or cure periods) in connection therewith, and all such escrows and deposits (or the right thereto) that are required to be escrowed with Mortgagee under the related Purchased Loan Documents are being conveyed by Seller to Buyer or its servicer.  Any and all requirements under the Purchased Loan Documents as to completion of any material improvements and as to disbursements of any funds escrowed for such purpose, which requirements were to have been complied with on or before the Purchase Date, have been complied with in all material respects or the funds so escrowed have not been released.  No other escrow amounts have been released except in accordance with the terms and conditions of the Purchased Loan Documents.

 

	(16)	
No Holdbacks.  The principal balance of the Purchased Loan set forth on the Purchased Loan Schedule has been fully disbursed as of the Purchase Date and there is no requirement for future advances thereunder (except in those cases where the full amount of the Purchased Loan has been disbursed but a portion thereof is being held in escrow or reserve accounts pending the satisfaction of certain conditions relating to leasing, repairs or other matters with respect to the related Mortgaged Property, the Mortgagor or other considerations determined by Seller to merit such holdback), and any requirements or conditions to disbursements of any loan proceeds held in escrow have been satisfied with respect to any disbursements of any such escrow fund made on or prior to the Purchase Date.

 

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	(17)	
Insurance.  Each related Mortgaged Property is, and is required pursuant to the related Mortgage to be, insured by a property insurance policy providing coverage for loss in accordance with coverage found under a “special cause of loss form” or “all risk form” that includes replacement cost valuation issued by an insurer meeting the requirements of the related Purchased Loan Documents and having a claims-paying or financial strength rating of any one of the following:  (i) at least “A-:VII” from A.M. Best Company, Inc., (ii) at least “A3” (or the equivalent) from Moody’s Investors Service, Inc. or (iii) at least “A-” from Standard & Poor’s Ratings Service (collectively, the “Insurance Rating Requirements”), in an amount (subject to a customary deductible) not less than the lesser of (1) the original principal balance of the Purchased Loan and (2) the full insurable value on a replacement cost basis of the improvements, furniture, furnishings, fixtures and equipment owned by the Mortgagor and included in the Mortgaged Property (with no deduction for physical depreciation), but, in any event, not less than the amount necessary or containing such endorsements as are necessary to avoid the operation of any coinsurance provisions with respect to the related Mortgaged Property.

 

Each related Mortgaged Property is also covered, and required to be covered pursuant to the related Purchased Loan Documents, by business interruption or rental loss insurance which (subject to a customary deductible) (i) covers a period of not less than 12 months (or with respect to each Purchased Loan on a single asset with a principal balance of $50 million or more, 18 months); (ii) for a Purchased Loan with a principal balance of $50 million or more, contains a 180 day “extended period of indemnity”; and (iii) covers the actual loss sustained during restoration.

 

If any material part of the improvements, exclusive of a parking lot, located on a Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, the related Mortgagor is required to maintain insurance in the maximum amount available under the National Flood Insurance Program, plus such additional excess flood coverage in an amount as is generally required by prudent institutional commercial mortgage lenders originating mortgage loans for securitization.

 

If windstorm and/or windstorm related perils and/or “named storms” are excluded from the primary property damage insurance policy, the Mortgaged Property is insured by a separate windstorm insurance policy issued by an insurer meeting the Insurance Rating Requirements or endorsement covering damage from windstorm and/or windstorm related perils and/or named storms in an amount at least equal to 100% of the full insurable value on a replacement cost basis of the improvements and personalty and fixtures included in the related Mortgaged Property by an insurer meeting the Insurance Rating Requirements.

 

The Mortgaged Property is covered, and required to be covered pursuant to the related Purchased Loan Documents, by a commercial general liability insurance policy issued by an insurer meeting the Insurance Rating Requirements including coverage for property damage, contractual damage and personal injury (including bodily injury and death) in amounts as are generally required by a prudent institutional commercial mortgage lender for loans originated for securitization, and in any event not less than $1 million per occurrence and $2 million in the aggregate.

 

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An architectural or engineering consultant has performed an analysis of each of the Mortgaged Properties located in seismic zones 3 or 4 in order to evaluate the structural and seismic condition of such property, for the sole purpose of assessing either the scenario expected limit (the “SEL”) or the probable maximum loss (the “PML”) for the Mortgaged Property in the event of an earthquake.  In such instance, the SEL or PML, as applicable, was based on a 475-year return period, an exposure period of 50 years and a 10% probability of exceedance.  If the resulting report concluded that the SEL or PML, as applicable, would exceed 20% of the amount of the replacement costs of the improvements, earthquake insurance on such Mortgaged Property was obtained by an insurer rated at least “A:VII” by A.M. Best Company, Inc. or “A3” (or the equivalent) from Moody’s Investors Service, Inc. or “A-” by Standard & Poor’s Ratings Service in an amount not less than 150% of the SEL or PML, as applicable.

 

The Purchased Loan Documents require insurance proceeds in respect of a property loss to be applied either (a) to the repair or restoration of all or part of the related Mortgaged Property, with respect to all property losses in excess of 5% of the then outstanding principal amount of the related Purchased Loan, the Mortgagee (or a trustee appointed by it) having the right to hold and disburse such proceeds as the repair or restoration progresses, or (b) to the reduction of the outstanding principal balance of such Purchased Loan together with any accrued interest thereon.

 

All premiums on all insurance policies referred to in this Paragraph (17) required to be paid as of the Purchase Date have been paid, and such insurance policies name the Mortgagee under the Purchased Loan and its successors and assigns as a loss payee under a mortgagee endorsement clause or, in the case of the general liability insurance policy, as named or additional insured.  Such insurance policies will inure to the benefit of Buyer.  Each related Purchased Loan obligates the related Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the Mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to charge such Mortgagor for related premiums and other related expenses, including reasonable attorney’s fees.  All such insurance policies (other than commercial liability policies) require at least 10 days’ prior notice to the Mortgagee of termination or cancellation arising because of nonpayment of a premium and at least 30 days prior notice to the Mortgagee of termination or cancellation (or such lesser period, not less than 10 days, as may be required by applicable law) arising for any reason other than non-payment of a premium and no such notice has been received by Seller.

 

	(18)	
Access; Utilities; Separate Tax Lots.  Each Mortgaged Property (a) is located on or adjacent to a public road and has direct legal access to such road, or has access via an irrevocable easement or irrevocable right of way permitting ingress and egress to/from a public road, (b) is served by or has uninhibited access rights to public or private water and sewer (or well and septic) and all required utilities, all of which are appropriate for the current use of the Mortgaged Property, and (c) constitutes one or more separate tax parcels which do not include any property which is not part of the Mortgaged Property or is subject to an endorsement under the related Title Policy insuring the Mortgaged Property, or in certain cases, an application has been, or will be, made to the applicable governing authority for creation of separate tax lots, in which case the Purchased Loan Documents require the Mortgagor to escrow an amount sufficient to pay taxes for the existing tax parcel of which the Mortgaged Property is a part until the separate tax lots are created or the non-recourse carveout guarantor under the Purchased Loan Documents has indemnified the Mortgagee for any loss suffered in connection therewith.

 

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	(19)	
No Encroachments.  To Seller’s knowledge based solely on surveys obtained in connection with origination (which may have been a previously existing “as built” survey) and the Title Policy for each Purchased Loan, all material improvements that were included for the purpose of determining the appraised value of the related Mortgaged Property at the time of the origination of such Purchased Loan are within the boundaries of the related Mortgaged Property, except encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy.  No improvements on adjoining parcels encroach onto the related Mortgaged Property except for encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy.  No material improvements encroach upon any easements except for encroachments the removal of which would not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements have been obtained under the Title Policy.

 

	(20)	
No Contingent Interest or Equity Participation.  No Purchased Loan has a shared appreciation feature, any other contingent interest feature or a negative amortization feature (except that an anticipated repayment date loan may provide for the accrual of the portion of interest in excess of the rate in effect prior to the anticipated repayment date) or an equity participation by Seller.

 

	(21)	
REMIC.  The Purchased Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code (but determined without regard to the rule in Treasury Regulations Section 1.860G-2(f)(2) that treats certain defective mortgage loans as qualified mortgages), and, accordingly, (a) the issue price of the Purchased Loan to the related Mortgagor at origination did not exceed the non-contingent principal amount of the Purchased Loan and (b) either:  (i) such Purchased Loan is secured by an interest in real property (including buildings and structural components thereof, but excluding personal property) having a fair market value (A) at the date the Purchased Loan was originated at least equal to 80% of the adjusted issue price of the Purchased Loan on such date or (B) at the Purchase Date at least equal to 80% of the adjusted issue price of the Purchased Loan on such date, provided that, for purposes hereof, the fair market value of the real property interest must first be reduced by (1) the amount of any lien on the real property interest that is senior to the Purchased Loan and (2) a proportionate amount of any lien that is in parity with the Purchased Loan; or (ii) substantially all of the proceeds of such Purchased Loan were used to acquire, improve or protect the real property which served as the only security for such Purchased Loan (other than a recourse feature or other third-party credit enhancement within the meaning of Treasury Regulations Section 1.860G-2(a)(1)(ii)).  If the Purchased Loan was “significantly modified” prior to the Purchase Date so as to result in a taxable exchange under Section 1001 of the Code, it either (i) was modified as a result of the default or reasonably foreseeable default of such Purchased Loan or (ii) satisfies the provisions of either clause (b)(i)(A) above (substituting the date of the last such modification for the date the Purchased Loan was originated) or clause (b)(i)(B), including the proviso thereto.  Any prepayment premium and yield maintenance charges applicable to the Purchased Loan constitute “customary prepayment penalties” within the meaning of Treasury Regulations Section 1.860G-(b)(2).  All terms used in this Paragraph (21) shall have the same meanings as set forth in the related Treasury Regulations.

 

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	(22)	
Compliance with Usury Laws.  The interest rate (exclusive of any default interest, late charges, yield maintenance charges, exit fees, or prepayment premiums) of such Purchased Loan complied as of the date of origination with, or was exempt from, applicable state or federal laws, regulations and other requirements pertaining to usury.

 

	(23)	
Authorized to do Business.  To the extent required under applicable law, as of the Purchase Date and as of each date that such entity held the Mortgage Note, each holder of the Mortgage Note was authorized to transact and do business in the jurisdiction in which each related Mortgaged Property is located, or the failure to be so authorized does not materially and adversely affect the enforceability of such Purchased Loan by Buyer.

 

	(24)	
Trustee under Deed of Trust.  With respect to each Mortgage which is a deed of trust, a trustee, duly qualified under applicable law to serve as such, currently so serves and is named in the deed of trust or has been substituted in accordance with the Mortgage and applicable law or may be substituted in accordance with the Mortgage and applicable law by the related Mortgagee, and except in connection with a trustee’s sale after a default by the related Mortgagor or in connection with any full or partial release of the related Mortgaged Property or related security for such Purchased Loan, and except in connection with a trustee’s sale after a default by the related Mortgagor, no fees are payable to such trustee except for de minimis fees paid.

 

	(25)	
Local Law Compliance.  To Seller’s knowledge, based upon any of a letter from any governmental authorities, a legal opinion, an architect’s letter, a zoning consultant’s report, an endorsement to the related Title Policy, or other affirmative investigation of local law compliance consistent with the investigation conducted by Seller for similar commercial, multifamily and manufactured housing community mortgage loans intended for securitization, with respect to the improvements located on or forming part of each Mortgaged Property securing a Purchased Loan, there are no material violations of applicable laws, zoning ordinances, rules, covenants, building codes, restrictions and land laws (collectively, “Zoning Regulations”) other than those which (i) constitute a legal non-conforming use or structure, as to which the Mortgaged Property may be restored or repaired to the full extent necessary to maintain the use of the structure immediately prior to a casualty or the inability to restore or repair to the full extent necessary to maintain the use or structure immediately prior to the casualty would not materially and adversely affect the use or operation of the Mortgaged Property, (ii) are insured by the Title Policy or other insurance policy, (iii) are insured by law and ordinance insurance coverage in amounts customarily required by prudent commercial mortgage lenders for loans originated for securitization that provides coverage for additional costs to rebuild and/or repair the property to current Zoning Regulations or (iv) would not have a material adverse effect on the Purchased Loan.  The terms of the Purchased Loan Documents require the Mortgagor to comply in all material respects with all applicable governmental regulations, zoning and building laws.

 

	(26)	
Licenses and Permits.  Each Mortgagor covenants in the Purchased Loan Documents that it shall keep all material licenses, permits, franchises, certificates of occupancy, consents and applicable governmental authorizations necessary for its operation of the Mortgaged Property in full force and effect, and to Seller’s knowledge based upon a letter from any government authorities or other affirmative investigation of local law compliance consistent with the investigation conducted by Seller for similar commercial, multifamily and manufactured housing community mortgage loans intended for securitization, all such material licenses, permits and applicable governmental authorizations are in effect.  The Purchased Loan Documents require the related Mortgagor to be qualified to do business in the jurisdiction in which the related Mortgaged Property is located and for the Mortgagor and the Mortgaged Property to be in compliance in all material respects with all regulations, zoning and building laws.

 

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	(27)	
Recourse Obligations.  The Purchased Loan Documents for each Purchased Loan provide that such Purchased Loan is non-recourse to the related parties thereto except that:  (a) the related Mortgagor and a guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis) shall be fully liable for losses, liabilities, costs and damages arising from certain acts of the related Mortgagor and/or its principals specified in the related Purchased Loan Documents, which acts generally include the following:  (i) acts of fraud or intentional material misrepresentation, (ii) misappropriation of rents (following an event of default), insurance proceeds or condemnation awards, (iii) intentional material physical waste of the Mortgaged Property, (iv) intentional misconduct and (v) any breach of the environmental covenants contained in the related Purchased Loan Documents, and (b) the Purchased Loan shall become full recourse to the related Mortgagor and a guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis), upon any of the following events:  (i) if any petition for bankruptcy, insolvency, dissolution or liquidation pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed, consented to, or acquiesced in by the Mortgagor, (ii) Mortgagor and/or its principals shall have colluded with other creditors to cause an involuntary bankruptcy filing with respect to the Mortgagor or (iii) upon the transfer of either the Mortgaged Property or equity interests in Mortgagor made in violation of the Purchased Loan Documents.

 

	(28)	
Mortgage Releases.  The terms of the related Mortgage or related Purchased Loan Documents do not provide for release of any material portion of the Mortgaged Property from the lien of the Mortgage except (a) a partial release, accompanied by principal repayment of not less than a specified percentage at least equal to the lesser of (i) 115% of the related allocated loan amount of such portion of the Mortgaged Property and (ii) the outstanding principal balance of the Purchased Loan, (b) upon payment in full of such Purchased Loan, (c) releases of out-parcels that are unimproved or other portions of the Mortgaged Property which will not have a material adverse effect on the underwritten value of the Mortgaged Property and which were not afforded any material value in the appraisal obtained at the origination of the Purchased Loan and are not necessary for physical access to the Mortgaged Property or compliance with zoning requirements, or (d) as required pursuant to an order of condemnation.  With respect to any partial release under the preceding clause (a) or (d), either:  (i) such release of collateral (A) would not constitute a “significant modification” of the subject Purchased Loan within the meaning of Treasury Regulations Section 1.860G-2(b)(2) and (B) would not cause the subject Purchased Loan to fail to be a “qualified mortgage” within the meaning of Section 860G(a)(3)(A) of the Code; or (ii) the Mortgagee or servicer can, in accordance with the related Purchased Loan Documents, condition such release of collateral on the related Mortgagor’s delivery of an opinion of tax counsel to the effect specified in the immediately preceding clause (i).  For purposes of the preceding clause (i), if the fair market value of the real property constituting such Mortgaged Property after the release is not equal to at least 80% of the principal balance of the Purchased Loan outstanding after the release, the Mortgagor is required to make a payment of principal in an amount not less than the amount required by the provisions governing a REMIC, as defined in Section 860D of the Code (the “REMIC Provisions”).

 

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In the event of a taking of any portion of a Mortgaged Property by a State or any political subdivision or authority thereof, whether by legal proceeding or by agreement, the Mortgagor can be required to pay down the principal balance of the Purchased Loan in an amount not less than the amount required by the REMIC Provisions and, to such extent, awards are not required to be applied to the restoration of the Mortgaged Property or to be released to the Mortgagor, if, immediately after the release of such portion of the Mortgaged Property from the lien of the Mortgage (but taking into account the planned restoration) the fair market value of the real property constituting the remaining Mortgaged Property is not equal to at least 80% of the remaining principal balance of the Purchased Loan.

 

No such Purchased Loan that is secured by more than one Mortgaged Property or that is cross-collateralized with another Purchased Loan permits the release of cross-collateralization of the related Mortgaged Properties, other than in compliance with the REMIC Provisions.

 

	(29)	
Financial Reporting and Rent Rolls.  The Purchased Loan Documents for each Purchased Loan require the Mortgagor to provide Mortgagee with quarterly (other than for single-tenant properties) and annual operating statements, and quarterly (other than for single-tenant properties) rent rolls for properties that have leases contributing more than 5% of the in-place base rent and annual financial statements, which annual financial statements with respect to each Purchased Loan with more than one Mortgagor are in the form of an annual combined balance sheet of the Mortgagor entities (and no other entities), together with the related combined statements of operations, members’ capital and cash flows, including a combining balance sheet and statement of income for the Mortgaged Properties on a combined basis.

 

	(30)	
Acts of Terrorism Exclusion.  With respect to each Purchased Loan over $20 million, the related special-form all-risk insurance policy and business interruption policy (issued by an insurer meeting the Insurance Rating Requirements) do not specifically exclude Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 and the Terrorism Risk Insurance Program Reauthorization Act of 2015 (collectively, the “TRIA”), from coverage, or if such coverage is excluded, it is covered by a separate terrorism insurance policy.  With respect to each other Purchased Loan, the related special-form all-risk insurance policy and business interruption policy (issued by an insurer meeting the Insurance Rating Requirements) does not specifically exclude Acts of Terrorism, as defined in TRIA, from coverage, or if such coverage is excluded, it is covered by a separate terrorism insurance policy.  With respect to each Purchased Loan, the related Purchased Loan Documents do not expressly waive or prohibit the Mortgagee from requiring coverage for Acts of Terrorism, as defined in the TRIA, or damages related thereto except to the extent that any right to require such coverage may be limited by commercial availability on commercially reasonable terms; provided, however, that if the TRIA or a similar or subsequent statute is not in effect, then, provided that terrorism insurance is commercially available, the Mortgagor under each Purchased Loan is required to carry terrorism insurance, but in such event the Mortgagor shall not be required to spend on terrorism insurance coverage more than two times the amount of the insurance premium that is payable in respect of the property and business interruption/rental loss insurance required under the related Purchased Loan Documents (without giving effect to the cost of terrorism and earthquake components of such casualty and business interruption/rental loss insurance) at the time of the origination of the Purchased Loan, and if the cost of terrorism insurance exceeds such amount, the Mortgagor is required to purchase the maximum amount of terrorism insurance available with funds equal to such amount.

 

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	(31)	
Due on Sale or Encumbrance.  Subject to specific exceptions set forth below, each Purchased Loan contains a “due on sale” or other such provision for the acceleration of the payment of the unpaid principal balance of such Purchased Loan if, without the consent of the holder of the Mortgage (which consent, in some cases, may not be unreasonably withheld) and/or complying with the requirements of the related Purchased Loan Documents (which provide for transfers without the consent of the Mortgagee which are customarily acceptable to prudent commercial and multifamily mortgage lending institutions on the security of property comparable to the related Mortgaged Property, including, without limitation, transfers of worn-out or obsolete furnishings, fixtures, or equipment promptly replaced with property of equivalent value and functionality and transfers by leases entered into in accordance with the Purchased Loan Documents), (a) the related Mortgaged Property, or any equity interest of greater than 50% in the related Mortgagor, is directly or indirectly pledged, transferred or sold, other than as related to (i) family and estate planning transfers or transfers upon death or legal incapacity, (ii) transfers to certain affiliates as defined in the related Purchased Loan Documents, (iii) transfers that do not result in a change of Control of the related Mortgagor or transfers of passive interests so long as the guarantor retains Control, (iv) transfers to another holder of direct or indirect equity in the Mortgagor, a specific Person designated in the related Purchased Loan Documents or a Person satisfying specific criteria identified in the related Purchased Loan Documents, such as a qualified equityholder, (v) transfers of stock or similar equity units in publicly traded companies or (vi) a substitution or release of collateral within the parameters of Paragraph (28) herein, or (vii) to the extent set forth in any Transaction Request delivered by Seller to Buyer prior to the issuance of a Confirmation with respect thereto, by reason of any mezzanine debt that existed at the origination of the related Purchased Loan, or future permitted mezzanine debt in each case as set forth in any Transaction Request delivered by Seller to Buyer prior to the issuance of a Confirmation with respect thereto or (b) the related Mortgaged Property is encumbered with a subordinate lien or security interest against the related Mortgaged Property, other than any Permitted Encumbrances.  The Mortgage or other Purchased Loan Documents provide that to the extent any rating agency fees are incurred in connection with the review of and consent to any transfer or encumbrance, the Mortgagor is responsible for such payment along with all other reasonable fees and expenses incurred by the Mortgagee relative to such transfer or encumbrance.  For purposes of the foregoing representation, “Control” means the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise.

 

	(32)	
Single-Purpose Entity.  Each Purchased Loan requires the Mortgagor to be a Single-Purpose Entity for at least as long as the Purchased Loan is outstanding.  Both the Purchased Loan Documents and the organizational documents of the Mortgagor with respect to each Purchased Loan with a principal amount on the Purchase Date of $5 million or more provide that the Mortgagor is a Single-Purpose Entity, and each Purchased Loan with a principal amount on the Purchase Date of $20 million or more has a counsel’s opinion regarding non-consolidation of the Mortgagor.  For purposes of this Paragraph (32), a “Single-Purpose Entity” shall mean an entity, other than an individual, whose organizational documents provide substantially to the effect that it was formed or organized solely for the purpose of owning and operating one or more of the Mortgaged Properties securing the Purchased Loans and prohibit it from engaging in any business unrelated to such Mortgaged Property or Properties, and whose organizational documents further provide, or which entity represented in the related Purchased Loan Documents, substantially to the effect that it does not have any assets other than those related to its interest in and operation of such Mortgaged Property or Properties, or any indebtedness other than as permitted by the related Mortgage(s) or the other related Purchased Loan Documents, that it has its own books and records and accounts separate and apart from those of any other person, and that it holds itself out as a legal entity, separate and apart from any other person or entity.

 

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	(33)	
Defeasance.  With respect to any fixed rate Purchased Loan that, pursuant to the Purchased Loan Documents, can be defeased, (i) the Purchased Loan Documents provide for defeasance as a unilateral right of the Mortgagor, subject to satisfaction of conditions specified in the Purchased Loan Documents; (ii) the Purchased Loan cannot be defeased within two years after the closing date of a securitization of such Purchased Loan; (iii) the Mortgagor is permitted to pledge only United States “government securities” within the meaning of Treasury Regulations Section 1.860G-2(a)(8)(ii), the revenues from which will be sufficient to make all scheduled payments under the Purchased Loan when due, including the entire remaining principal balance on the maturity date (or on or after the first date on which payment may be made without payment of a yield maintenance charge or prepayment penalty) and if the Purchased Loan permits partial releases of real property in connection with partial defeasance, the revenues from the collateral will be sufficient to pay all such scheduled payments calculated on a principal amount equal to a specified percentage at least equal to 115% of the allocated loan amount for the real property to be released; (iv) the defeasance collateral is not permitted to be subject to prepayment, call, or early redemption; (v) the Mortgagor is required to provide a certification from an independent certified public accountant that the collateral is sufficient to make all scheduled payments under the Mortgage Note as set forth in (iii) above; (vi) if the Mortgagor would continue to own assets in addition to the defeasance collateral, the portion of the Purchased Loan secured by defeasance collateral is required to be assumed by a Single-Purpose Entity; (vii) the Mortgagor is required to provide an opinion of counsel that the Mortgagee has a perfected security interest in such collateral prior to any other claim or interest; and (viii) the Mortgagor is required to pay all rating agency fees associated with defeasance (if rating confirmation is a specific condition precedent thereto) and all other reasonable expenses associated with defeasance, including, but not limited to, accountant’s fees and opinions of counsel.

 

	(34)	
Ground Leases.  For purposes of this Exhibit VI, a “Ground Lease” shall mean a lease creating a leasehold estate in real property where the fee owner as the ground lessor conveys for a term or terms of years its entire interest in the land and buildings and other improvements, if any, comprising the premises demised under such lease to the ground lessee (who may, in certain circumstances, own the building and improvements on the land), subject to the reversionary interest of the ground lessor as fee owner and does not include industrial development agency (IDA) or similar leases for purposes of conferring a tax abatement or other benefit.

 

-13-

With respect to any Purchased Loan where the Purchased Loan is secured by a leasehold estate under a Ground Lease in whole or in part, and the related Mortgage does not also encumber the related lessor’s fee interest in such Mortgaged Property, based upon the terms of the Ground Lease and any estoppel or other agreement received from the ground lessor in favor of Seller, its successors and assigns, Seller represents and warrants that:

 

		(a)	
(i) the Ground Lease or a memorandum regarding such Ground Lease has been duly recorded or submitted for recordation in a form that is acceptable for recording in the applicable jurisdiction; (ii) the Ground Lease or an estoppel or other agreement received from the ground lessor permits the interest of the lessee to be encumbered by the related Mortgage and does not restrict the use of the related Mortgaged Property by such lessee, its successors or assigns in a manner that would materially adversely affect the security provided by the related Mortgage and (iii) no material change in the terms of the Ground Lease had occurred since its recordation, except by any written instrument which are included in the related Purchased Loan File;

 

		(b)	
the lessor under such Ground Lease has agreed in a writing included in the related Purchased Loan File (or in such Ground Lease) that the Ground Lease may not be amended or modified, or canceled or terminated, without the prior written consent of the Mortgagee (except termination or cancellation if (i) notice of a default under the Ground Lease is provided to Mortgagee and (ii) such default is curable by Mortgagee as provided in the Ground Lease but remains uncured beyond the applicable cure period), and no such consent has been granted by Seller since the origination of the Purchased Loan except as reflected in any written instruments which are included in the related Purchased Loan File;

 

		(c)	
the Ground Lease has an original term (or an original term plus one or more optional renewal terms, which, under all circumstances, may be exercised, and will be enforceable, by either Mortgagor or the Mortgagee) that extends not less than 20 years beyond the stated maturity of the related Purchased Loan, or 10 years past the stated maturity if such Purchased Loan fully amortizes by the stated maturity (or with respect to a Purchased Loan that accrues on an actual 360 basis, substantially amortizes);

 

		(d)	
the Ground Lease either (i) is not subject to any liens or encumbrances superior to, or of equal priority with, the Mortgage, except for the related fee interest of the ground lessor and the Permitted Encumbrances, or (ii) is subject to a subordination, non‐disturbance and attornment agreement to which the mortgagee on the lessor’s fee interest in the Mortgaged Property is subject;

 

		(e)	
the Ground Lease does not place commercially unreasonable restrictions on the identity of the Mortgagee and the Ground Lease is assignable to the holder of the Purchased Loan and its successors and assigns without the consent of the lessor thereunder, and in the event it is so assigned, it is further assignable by the holder of the Purchased Loan and its successors and assigns without the consent of the lessor;

 

		(f)	
Seller has not received any written notice of material default under or notice of termination of such Ground Lease and, to Seller’s knowledge, there is no material default under such Ground Lease and no condition that, but for the passage of time or giving of notice, would result in a material default under the terms of such Ground Lease and to Seller’s knowledge, such Ground Lease is in full force and effect;

 

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		(g)	
the Ground Lease or ancillary agreement between the lessor and the lessee requires the lessor to give to the Mortgagee written notice of any default, and provides that no notice of default or termination is effective against the Mortgagee unless such notice is given to the Mortgagee;

 

		(h)	
a Mortgagee is permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the interest of the lessee under the Ground Lease through legal proceedings) to cure any default under the Ground Lease which is curable after the Mortgagee’s receipt of notice of any default before the lessor may terminate the Ground Lease;

 

		(i)	
the Ground Lease does not impose any restrictions on subletting that would be viewed as commercially unreasonable by a prudent commercial mortgage lender;

 

		(j)	
under the terms of the Ground Lease, an estoppel or other agreement received from the ground lessor and the related Mortgage (taken together), any related insurance proceeds or the portion of the condemnation award allocable to the ground lessee’s interest (other than (i) de minimis amounts for minor casualties or (ii) in respect of a total or substantially total loss or taking as addressed in Paragraph (34)(k) below) will be applied either to the repair or to restoration of all or part of the related Mortgaged Property with (so long as such proceeds are in excess of the threshold amount specified in the related Purchased Loan Documents) the Mortgagee or a trustee appointed by it having the right to hold and disburse such proceeds as repair or restoration progresses, or to the payment of the outstanding principal balance of the Purchased Loan, together with any accrued interest;

 

		(k)	
in the case of a total or substantially total taking or loss, under the terms of the Ground Lease, an estoppel or other agreement and the related Mortgage (taken together), any related insurance proceeds, or portion of the condemnation award allocable to ground lessee’s interest in respect of a total or substantially total loss or taking of the related Mortgaged Property to the extent not applied to restoration, will be applied first to the payment of the outstanding principal balance of the Purchased Loan, together with any accrued interest; and

 

		(l)	
provided that the Mortgagee cures any defaults which are susceptible to being cured, the ground lessor has agreed to enter into a new lease with the Mortgagee upon termination of the Ground Lease for any reason, including rejection of the Ground Lease in a bankruptcy proceeding.

 

	(35)	
Servicing.  The servicing and collection practices used by Seller with respect to the Purchased Loan have been, in all material respects, legal and have met customary industry standards for servicing of similar commercial loans.

 

	(36)	
Origination and Underwriting.  The origination practices of Seller (or the related originator if Seller was not the originator) with respect to each Purchased Loan have been, in all material respects, legal and as of the date of its origination, such Purchased Loan and the origination thereof complied in all material respects with, or was exempt from, all requirements of federal, state or local laws and regulations relating to the origination of such Purchased Loan.  At the time of origination of such Purchased Loan, the origination, due diligence and underwriting performed by or on behalf of Seller in connection with each Purchased Loan complied in all material respects with the terms, conditions and requirements of Seller’s origination, due diligence, underwriting procedures, guidelines and standards for similar commercial and multifamily loans.

 

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	(37)	
Rent Rolls; Operating Histories.  Seller has obtained a rent roll (other than with respect to hospitality properties) certified by the related Mortgagor or the related guarantor(s) as accurate and complete in all material respects as of a date within 180 days of the date of origination of the related Purchased Loan.  Seller has obtained operating histories (the “Certified Operating Histories”) with respect to each Mortgaged Property certified by the related Mortgagor or the related guarantor(s) as accurate and complete in all material respects as of a date within 180 days of the date of origination of the related Purchased Loan.  The Certified Operating Histories collectively report on operations for a period equal to (a) at least a continuous three-year period or (b) in the event the Mortgaged Property was owned, operated or constructed by the Mortgagor or an affiliate for less than three years then for such shorter period of time.

 

	(38)	
No Material Default; Payment Record.  No Purchased Loan has been more than 30 days delinquent, without giving effect to any grace or cure period, in making required payments since origination, and as of the Purchase Date, no Purchased Loan is delinquent (beyond any applicable grace or cure period) in making required payments.  To Seller’s knowledge, there is (a) no, and since origination there has been no, material default, breach, violation or event of acceleration existing under the related Purchased Loan Documents, or (b) no event (other than payments due but not yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a material default, breach, violation or event of acceleration, which default, breach, violation or event of acceleration, in the case of either clause (a) or (b), materially and adversely affects the value of the Purchased Loan, or the value, use or operation of the related Mortgaged Property, provided, however, that this Paragraph (38) does not cover any default, breach, violation or event of acceleration that specifically pertains to or arises out of an exception scheduled to any other representation and warranty made by Seller in any exceptions hereto contained in Schedule 2 attached to the related Transaction Request delivered by Seller to Buyer prior to the issuance of a Confirmation with respect thereto.  No person other than the holder of such Purchased Loan may declare any event of default under the Purchased Loan or accelerate any indebtedness under the Purchased Loan Documents.

 

	(39)	
Bankruptcy.  As of the date of origination of the related Purchased Loan and to Seller’s knowledge as of the Purchase Date, neither the Mortgaged Property nor any portion thereof is the subject of, and no Mortgagor, guarantor or tenant occupying a single-tenant property is a debtor in state or federal bankruptcy, insolvency or similar proceeding.

 

	(40)	
Organization of Mortgagor.  With respect to each Purchased Loan, in reliance on certified copies of the organizational documents of the Mortgagor delivered by the Mortgagor in connection with the origination of such Purchased Loan, the Mortgagor is an entity organized under the laws of a state of the United States of America, the District of Columbia or the Commonwealth of Puerto Rico.  No Purchased Loan has a Mortgagor that is an Affiliate of another Mortgagor.

 

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Seller has obtained an organizational chart or other description of each Mortgagor which identifies all beneficial controlling owners of the Mortgagor (i.e., managing members, general partners or similar controlling person for such Mortgagor) (the “Controlling Owner”) and all owners that hold a 20% or greater direct ownership share (the “Major Sponsors”).  Seller (a) required questionnaires to be completed by each Controlling Owner and guarantor or performed other processes designed to elicit information from each Controlling Owner and guarantor regarding such Controlling Owner’s or guarantor’s prior history regarding any bankruptcies or other insolvencies, any felony convictions, and (b) performed or caused to be performed searches of the public records or services such as Lexis/Nexis, or a similar service designed to elicit information about each Controlling Owner, Major Sponsor and guarantor regarding such Controlling Owner’s, Major Sponsor’s or guarantor’s prior history regarding any bankruptcies or other insolvencies, any felony convictions, and provided, however, that manual public records searches were limited to the last 10 years (clauses (a) and (b) collectively, the “Sponsor Diligence”).  Based solely on the Sponsor Diligence, to the knowledge of Seller, no Major Sponsor or guarantor (i) was in a state or federal bankruptcy or insolvency proceeding, (ii) had a prior record of having been in a state of federal bankruptcy or insolvency, or (iii) had been convicted of a felony.

 

	(41)	
Environmental Conditions.  At origination, each Mortgagor represented and warranted that to its knowledge no hazardous materials or any other substances or materials which are included under or regulated by Environmental Laws are located on, or have been handled, manufactured, generated, stored, processed, or disposed of on or released or discharged from the Mortgaged Property, except for those substances commonly used in the operation and maintenance of properties of kind and nature similar to those of the Mortgaged Property in compliance with all Environmental Laws and in a manner that does not result in contamination of the Mortgaged Property or in a material adverse effect on the value, use or operations of the Mortgaged Property.

 

A Phase I environmental site assessment (or update of a previous Phase I and or Phase II site assessment) and, with respect to certain Purchased Loans, a Phase II environmental site assessment (collectively, an “ESA”) meeting ASTM requirements was conducted by a reputable environmental consultant in connection with such Purchased Loan within 12 months prior to its origination date (or an update of a previous ESA was prepared), and such ESA either (i) did not identify the existence of recognized “environmental conditions” as such term is defined in ASTM E1527-05 or its successor (the “Environmental Conditions”) at the related Mortgaged Property or the need for further investigation with respect to any Environmental Condition that was identified, or (ii) if the existence of an Environmental Condition or need for further investigation was indicated in any such ESA, then at least one of the following statements is true:  (A) an amount reasonably estimated by a reputable environmental consultant to be sufficient to cover the estimated cost to cure any material noncompliance with applicable Environmental Laws or the Environmental Condition has been escrowed by the related Mortgagor and is held or controlled by the related Mortgagee; (B) if the only Environmental Condition relates to the presence of asbestos-containing materials, radon in indoor air, lead based paint or lead in drinking water, and the only recommended action in the ESA is the institution of such a plan, an operations or maintenance plan has been required to be instituted by the related Mortgagor that can reasonably be expected to mitigate the identified risk; (C) the Environmental Condition identified in the related environmental report was remediated or abated in all material respects prior to the Purchase Date, and, if and as appropriate, a no further action or closure letter was obtained from the applicable governmental regulatory authority (or the Environmental Condition affecting the related Mortgaged Property was otherwise listed by such governmental authority as “closed” or a reputable environmental consultant has concluded that no further action is required); (D) a secured creditor environmental policy or a pollution legal liability insurance policy that covers liability for the Environmental Condition was obtained from an insurer rated no less than “A-“ (or the equivalent) by Moody’s Investors Service, Inc., Standard & Poor’s Ratings Service and/or Fitch, Inc.; (E) a party not related to the Mortgagor was identified as the responsible party for such Environmental Condition and such responsible party has financial resources reasonably estimated to be adequate to address the situation; or (F) a party related to the Mortgagor having financial resources reasonably estimated to be adequate to address the situation is required to take action.  To Seller’s knowledge, except as set forth in the ESA, there is no Environmental Condition (as such term is defined in ASTM E1527-05 or its successor) at the related Mortgaged Property.

 

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In the case of each Purchased Loan with respect to which there is an environmental insurance policy (the “Environmental Insurance Policy”), (i) such Environmental Insurance Policy has been issued by the issuer set forth in the related any Transaction Request delivered by Seller to Buyer prior to the issuance of a Confirmation with respect thereto (the “Policy Issuer”) and is effective as of the Purchase Date, (ii) as of origination and to Seller’s knowledge as of the Purchase Date the Environmental Insurance Policy is in full force and effect, there is no deductible and Seller is a named insured under such policy, (iii) (A) a property condition or engineering report was prepared, if the related Mortgaged Property was constructed prior to 1985, with respect to asbestos-containing materials (“ACM”) and, if the related Mortgaged Property is a multifamily property, with respect to radon gas (“RG”) and lead-based paint (“LBP”), and (B) if such report disclosed the existence of a material and adverse LBP, ACM or RG environmental condition or circumstance affecting the related Mortgaged Property, the related Mortgagor (1) was required to remediate the identified condition prior to closing the Purchased Loan or provide additional security or establish with the Mortgagee a reserve in an amount deemed to be sufficient by Seller, for the remediation of the problem, and/or (2) agreed in the Purchased Loan Documents to establish an operations and maintenance plan after the closing of the Purchased Loan that should reasonably be expected to mitigate the environmental risk related to the identified LBP, ACM or RG condition, (iv) on the effective date of the Environmental Insurance Policy, Seller as originator had no knowledge of any material and adverse environmental condition or circumstance affecting the Mortgaged Property (other than the existence of LBP, ACM or RG) that was not disclosed to the Policy Issuer in one or more of the following:  (A) the application for insurance, (B) a Mortgagor questionnaire that was provided to the Policy Issuer, or (C) an engineering or other report provided to the Policy Issuer, and (v) the premium of any Environmental Insurance Policy has been paid through the maturity of the policy’s term and the term of such policy extends at least five years beyond the maturity of the Purchased Loan.

 

	(42)	
Lease Estoppels.  With respect to each Purchased Loan secured by retail, office or industrial properties, Seller requested the related Mortgagor to obtain estoppels from each commercial tenant with respect to the rent roll delivered as of the origination date.  With respect to each Purchased Loan predominantly secured by a retail, office or industrial property leased to a single tenant, Seller reviewed such estoppel obtained from such tenant no earlier than 90 days prior to the origination date of the related Purchased Loan, and to Seller’s knowledge, (i) the related lease is in full force and effect and (ii) there exists no default under such lease, either by the lessee thereunder or by the lessor subject, in each case, to customary reservations of tenant’s rights, such as with respect to common area maintenance (“CAM”) and pass-through audits and verification of landlord’s compliance with co-tenancy provisions.  With respect to each Purchased Loan predominantly secured by a retail, office or industrial property, Seller has received lease estoppels executed within 90 days of the origination date of the related Purchased Loan that collectively account for at least 65% of the in-place base rent for the Mortgaged Property that secure a Purchased Loan that is represented as of the origination date.  To Seller’s knowledge, (i) each lease represented on the rent roll delivered as of the origination date is in full force and effect and (ii) there exists no material default under any such related lease that represents 20% or more of the in-place base rent for the Mortgaged Property either by the lessee thereunder or by the related Mortgagor, subject, in each case, to customary reservations of tenant’s rights, such as with respect to CAM and pass-through audits and verification of landlord’s compliance with co-tenancy provisions.

 

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	(43)	
Appraisal.  The Purchased Loan File contains an appraisal of the related Mortgaged Property with an appraisal date within 6 months of the Purchased Loan origination date, and within 12 months of the Purchase Date.  The appraisal is signed by an appraiser who is a Member of the Appraisal Institute.  Each appraiser has represented in such appraisal or in a supplemental letter that the appraisal satisfies the requirements of the “Uniform Standards of Professional Appraisal Practice” as adopted by the Appraisal Standards Board of the Appraisal Foundation and has certified that such appraiser had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor or in any loan made on the security thereof, and its compensation is not affected by the approval or disapproval of the Purchased Loan.

 

	(44)	
Purchased Loan Schedule.  The information pertaining to each Purchased Loan which is set forth in the Purchased Loan Schedule is true and correct in all material respects as of the Purchase Date and contains all information required by the Repurchase Agreement to be contained therein.

 

	(45)	
Cross-Collateralization.  No Purchased Loan is cross-collateralized or cross-defaulted with any other mortgage loan.

 

	(46)	
Advance of Funds by Seller.  After origination, no advance of funds has been made by Seller to the related Mortgagor other than in accordance with the Purchased Loan Documents, and, to Seller’s knowledge, no funds have been received from any person other than the related Mortgagor or an affiliate for, or on account of, payments due on the Purchased Loan (other than as contemplated by the Purchased Loan Documents, such as, by way of example and not in limitation of the foregoing, amounts paid by the tenant(s) into a Mortgagee-controlled lockbox if required or contemplated under the related lease or Purchased Loan Documents).  Neither Seller nor any affiliate thereof has any obligation to make any capital contribution to any Mortgagor under a Purchased Loan, other than contributions made on or prior to the Purchase Date.

 

	(47)	
Compliance with Anti-Money Laundering Laws.  Seller has complied in all material respects with the Prescribed Laws.  Seller has established an anti-money laundering compliance program as required by all applicable anti-money laundering laws and regulations, including without limitation, the USA PATRIOT ACT of 2001 (collectively, the “Prescribed Laws”), and has conducted the requisite due diligence in connection with the origination of the Purchased Loan for purposes of the Prescribed Laws, including with respect to the legitimacy of the applicable Mortgagor and the origin of the assets used by the said Mortgagor to purchase the property in question, and maintains, and will maintain, sufficient information to identify the applicable Mortgagor for purposes of the Prescribed Laws.

 

-19-

	(48)	
OFAC.  (a) No Purchased Loan is (i) subject to nullification pursuant to Executive Order 13224 or the regulations promulgated by the U.S. Department of Treasury, Office of Foreign Assets Control (the “OFAC Regulations”) or (ii) in violation of Executive Order 13224 or the OFAC Regulations, and (b) no Mortgagor is (i) subject to the provisions of Executive Order 13224 or the OFAC Regulations or (ii) listed as a “blocked person” for purposes of the OFAC Regulations.

 

	(49)	
Floating Interest Rates.  Each Purchased Loan bears interest at a floating rate of interest that is based on LIBOR plus a margin (which interest rate may be subject to a minimum or “floor” rate)

 

-20-

EXHIBIT VII

LOAN ASSET SUMMARY REPORT

[Attached]

 

[Loan Name]

 

	
Loan ID

	
Alternate

Loan # (if

any)

	
Loan Name

	
ADDRESSES

	
Loan Amount

	
P & I Amount

	
Interest Rate

	
Closed

Date

	
1st

Payment

Date

	
Maturity Date

	
Borrowers' Names

	
Law Firm

	
Attorney's Name

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

EXHIBIT VIII

FORM OF TRANSACTION REQUEST

	
TO:

	
GOLDMAN SACHS BANK USA

	 	
200 West Street, 7th Floor

	 	
New York, New York 10282

	 	
Attention: Jeffrey Dawkins

	 	
Tel:  (212) 902-6852

	 	
Email: jeffrey.dawkins@gs.com

	 	 
	 	
With additional email notifications to:

	 	 
	 	
Email: gs-refgwarehouse@gs.com

	 	
Email: gs-warehouselending@gs.com

Ladies and Gentlemen:

Pursuant to Section 3(a) of that certain Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Agreement”), among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC (“QRS Seller”) and KREF LENDING III TRS LLC (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”), the undersigned Seller hereby requests that Buyer enter into a Transaction with respect to the Eligible Loans set forth on Schedule 1 attached hereto, upon the proposed terms set forth below and subject to the exceptions to the representations and warranties set forth in Exhibit VI to the Agreement which are contained in Schedule 2 attached hereto.  Capitalized terms used herein without definition have the meanings given in the Agreement.

 

	 	
Proposed Transaction Type:

	
[Swingline Transaction][Term Transaction]

	 	
Description of proposed Eligible Loan:

	
[_________________]

	 	
Proposed Purchase Date:

	
[_________________]

	 	
Principal amount of proposed Eligible Loan:

	
[$________________]

	 	
Eligible Property Type collateralizing proposed Eligible Loan:

	
[Office][Industrial][Multifamily]

[Retail] [Hotel] [Mixed Use]

	 	
Term of proposed Eligible Loan:

	
[_________________]

	 	
Origination Date LTV of proposed Eligible Loan:

	
[_________________]

	 	
Requested Purchase Price:

	
[$________________]

	 	
Requested Purchase Price Rate applicable to proposed Eligible Loan:

	
[_________________]

	 	
Buyer LTV at purchase assuming payment of requested Purchase Price:

	
[_________________]

	 	
Aggregate outstanding Purchase Price of all [Swingline][Term] Transactions assuming

	
[$________________]

 

purchase of the proposed Eligible Loan:

By its delivery hereof, the undersigned Seller hereby represents and warrants that the proposed Eligible Loan is an Eligible Loan, and that, as of the date hereof and as of the proposed Purchase Date, assuming the purchase of the proposed Eligible Loan by Buyer on such proposed Purchase Date for the requested Purchase Price, (A) the [Swingline Availability Period End Date][Term Availability Period End Date] shall not have occurred, (B) no Default or Event of Default under this Agreement shall have occurred and be continuing, (C) no Margin Deficit shall be outstanding, (D) no Concentration Limit Amount shall be outstanding, (E) no  Purchase Price Amortization Amount shall be outstanding, and (F) no other payment obligation shall remain outstanding (including, without limitation, any amounts payable pursuant to the Fee Agreement) unless, in the cases of clauses (C), (D), (E) and (F), the undersigned Seller has requested that such outstanding amounts are netted against the proposed Purchase Price until such outstanding amounts are paid in full.

The undersigned Seller understands and agrees that, in the event Buyer determines to purchase the proposed Eligible Loan, it will pay the Purchase Price therefor [(net of the Purchase Date Draw Fee and Buyer’s costs and expenses pursuant to Section 30(d), which the undersigned Seller hereby authorizes Buyer to net against such Purchase Price)]3 on the proposed Purchase Date to the following account:

 [SPECIFY ACCOUNT FOR PAYMENT]

 [Remainder of page intentionally blank]

	3	
Note: This netting language is to be included unless the applicable Seller intends to pay Purchase Date Draw Fee and expenses separately prior to the proposed Purchase Date.

 

2

Questions in respect of this Transaction Request may be directed to:

 

	 	
[KREF LENDING III LLC][KREF LENDING III TRS LLC]

	 	
9 West 57th Street, Suite 4200

	 	
New York, New York 10019

	 	
Attention:  Patrick Mattson

	 	
Tel:  (212) 519-1656

	 	
Email: patrick.mattson@kkr.com

 

	 	
SELLER:

	 
	 	 	 
	 	
[KREF LENDING III LLC][KREF LENDING III TRS LLC],

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

3

Schedule 1 to Transaction Request

(Attachments:  Loan Asset Summary Report and Eligible Loan Due Diligence Checklist)

	 
	
Eligible Loan:

 

4

Schedule 2 to Transaction Request

Exceptions to Representations and Warranties Set

Forth on Exhibit VI

 

5

EXHIBIT IX

FORM OF FUTURE FUNDING REQUEST

	
TO:

	
GOLDMAN SACHS BANK USA

	 	
200 West Street, 7th Floor

	 	
New York, New York 10282

	 	
Attention: Jeffrey Dawkins

	 	
Tel:  (212) 902-6852

	 	
Email: jeffrey.dawkins@gs.com

	 	 
	 	
With additional email notifications to:

	 	 
	 	
Email: gs-refgwarehouse@gs.com

	 	
Email: gs-warehouselending@gs.com

Ladies and Gentlemen:

Pursuant to Section 3(c) of that certain Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Agreement”), among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC (“QRS Seller”) and KREF LENDING III TRS LLC (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”), the undersigned Seller hereby requests that Buyer advance Future Funding Purchase Price in respect of the existing Transaction described below, upon the proposed terms set forth below.  Capitalized terms used herein without definition have the meanings given in the Agreement.

 

	 	
Description of existing Transaction to which the proposed Future Funding Purchase Price relates:

	
[_________________]

	 	
Transaction Type:

	
[Swingline Transaction][Term Transaction]

	 	
Proposed Future Funding Date:

	
[_________________]

	 	
Advance of principal made by the undersigned Seller to the Mortgagor under the Future Funding Loan:

	
[$________________]

	 	
Aggregate outstanding principal amount of Transaction:

	
[$________________]

	 	
Requested Future Funding Purchase Amount:

	
[$________________]

	 	
Buyer LTV of Transaction (not giving effect to the requested Future Funding Purchase Amount):

	
[_________________]

	 	
Buyer LTV of Transaction (giving effect to the requested Future Funding Purchase Amount):

	
[_________________]

 

	 	
Current Buyer LTV Maximum applicable to Transaction:

	
[_________________]

	 	
Aggregate outstanding Purchase Price of all [Swingline][Term] Transactions assuming advance of the requested Future Funding Purchase Amount:

	
[$________________]

By its delivery hereof, the undersigned Seller hereby represents and warrants that the proposed Eligible Loan is an Eligible Loan, and that, as of the date hereof and as of the proposed Purchase Date, assuming the purchase of the proposed Eligible Loan by Buyer on such proposed Purchase Date for the requested Purchase Price, (A) no Default or Event of Default under this Agreement shall have occurred and be continuing, (B) no Safe Harbor Event shall have occurred, (C) no Margin Deficit shall be outstanding, (D) no Concentration Limit Amount shall be outstanding, (E) no  Purchase Price Amortization Amount shall be outstanding, and (F) no other payment obligation shall remain outstanding (including, without limitation, any amounts payable pursuant to the Fee Agreement) unless, in the cases of clauses (C), (D), (E) and (F), the undersigned Seller has requested that such outstanding amounts are netted against the proposed Purchase Price until such outstanding amounts are paid in full.  Further, the undersigned Seller hereby certifies to Buyer that all conditions precedent set forth in the related Purchased Loan Documents to the funding by such Seller of such future funding advance of principal that underlies this request to advance Future Funding Purchase Price have been satisfied.

The undersigned Seller understands and agrees that, in the event Buyer determines to advance the requested Future Funding Purchase Price, it will pay such Future Funding Purchase Price [(net of the related Future Funding Draw Fee and Buyer’s costs and expenses pursuant to Section 30(d), which the undersigned Seller hereby authorizes Buyer to net against such Future Funding Purchase Price)]4 on the proposed Future Funding Date to the following account:

[SPECIFY ACCOUNT FOR PAYMENT]

 [Remainder of page intentionally blank]

	4	
Note: This netting language is to be included unless the applicable Seller intends to pay Future Funding Draw Fee and expenses separately prior to the proposed Future Funding Date.

 

2

Questions in respect of this Future Funding Request may be directed to:

	 	
[KREF LENDING III LLC][KREF LENDING III TRS LLC]

	 	
9 West 57th Street, Suite 4200

	 	
New York, New York 10019

	 	
Attention:  Patrick Mattson

	 	
Tel:  (212) 519-1656

	 	
Email: patrick.mattson@kkr.com

 

	 	
SELLER:

	 
	 	  	 
	 	
[KREF LENDING III LLC][KREF LENDING III TRS LLC],

	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

3

EXHIBIT X

FORM OF REMAINDER INTEREST TRANSFER NOTICE

	
TO:

	
GOLDMAN SACHS BANK USA

	 	
200 West Street, 7th Floor

	 	
New York, New York 10282

	 	
Attention: Jeffrey Dawkins

	 	
Tel:  (212) 902-6852

	 	
Email: jeffrey.dawkins@gs.com

	 	 
	 	
With additional email notifications to:

	 	 
	 	
Email: gs-refgwarehouse@gs.com

	 	
Email: gs-warehouselending@gs.com

Ladies and Gentlemen:

Pursuant to Section 3(q) of that certain Amended & Restated Master Repurchase Agreement, dated as of November 1, 2017 (the “Agreement”), among GOLDMAN SACHS BANK USA (“Buyer”), KREF LENDING III LLC (“QRS Seller”) and KREF LENDING III TRS LLC (“TRS Seller”; together with QRS Seller, the “Sellers” and each a “Seller”), the Sellers hereby give notice that QRS Seller intends to transfer to TRS Seller, and TRS Seller intends to receive and accept from QRS Seller, all of QRS Seller’s Remainder Interests in the Purchased Loan specified below on the intended Remainder Interest Transfer Date. Capitalized terms used herein without definition have the meanings given in the Agreement.

 

	 	
Purchased Loan:

	
[_________________]

	 	
Intended Remainder Interest Transfer Date:

	
[_________________]

By its delivery hereof, the Sellers hereby represent and warrant that the Purchased Loan is an Eligible Loan, and that, as of the date hereof and as of the intended Remainder Interest Transfer Date, assuming the transfer of such Remainder Interest in such Purchased Loan by QRS Seller on such intended Remainder Interest Transfer Date, each of the conditions precedent set forth in Section 3(q) of the Agreement.

[Remainder of page intentionally blank]

 

Questions in respect of this Remainder Interest Transfer Notice may be directed to:

 

	 	
KREF LENDING III LLC

	 	
9 West 57th Street, Suite 4200

	 	
New York, New York 10019

	 	
Attention:  Patrick Mattson

	 	
Tel:  (212) 519-1656

	 	
Email: patrick.mattson@kkr.com

	 	
SELLERS:

	 
	 	 	 	 
	 	
KREF LENDING III LLC,

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

	 	
KREF LENDING III TRS LLC,

	 
	 	
a Delaware limited liability company

	 
	 	 	 	 
	 	
By:

	 	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

 

2

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