Document:

Exhibit

Exhibit 10.1
	
		
	Clifford Chance LLP

	 

	EXECUTION VERSION   

	
				
	 
	 

	 
	 

	 
	 

	 

	£180,000,000
FACILITIES AGREEMENT
DATED 26 August 2015
FOR
GWW UK HOLDINGS LTD
WITH
W.W. GRAINGER, INC. 
AS THE COMPANY
ARRANGED BY
LLOYDS BANK PLC AND LLOYDS SECURITIES INC. 
WITH
LLOYDS BANK PLC 
ACTING AS AGENT

	 
	 
	 

	 
	TERM AND
REVOLVING FACILITIES AGREEMENT
	 

	 
	 
	 
	 

	
			
	CONTENTS

	Clause
	Page
	

	 
	 

	1.      Definitions and Interpretation
	1
	

	2.      The Facilities
	25
	

	3.      Purpose
	27
	

	4.      Conditions of Utilisation
	28
	

	5.      Utilisation
	29
	

	6.      Repayment
	31
	

	7.      Prepayment and Cancellation
	33
	

	8.      Interest
	37
	

	9.      Interest Periods
	39
	

	10.    Changes to the Calculation of Interest
	40
	

	11.    Fees
	42
	

	12.    Tax Gross-up and Indemnities
	43
	

	13.    Increased Costs
	52
	

	14.    Other Indemnities
	54
	

	15.    Mitigation by the Lenders
	56
	

	16.    Costs and Expenses
	56
	

	17.    Guarantee and Indemnity
	58
	

	18.    Representations
	61
	

	19.    Information Undertakings
	68
	

	20.    General Undertakings
	72
	

	21.    Events of Default
	79
	

	22.    Changes to the Lenders
	84
	

	23.    Changes to the Obligors
	89
	

	24.    Role of the Agent, the Arranger and the Reference Banks
	91
	

	25.    Conduct of Business by the Finance Parties
	101
	

	26.    Sharing Among the Finance Parties
	102
	

	27.    Payment Mechanics
	104
	

	28.    Set-off
	108
	

	29.    Notices
	108
	

	30.    Calculations and Certificates
	112
	

	31.    Partial Invalidity
	112
	

	32.    Remedies and Waivers
	112
	

	33.    Amendments and Waivers
	112
	

	34.    Confidential Information
	116
	

- i-

	
			
	35.    Confidentiality of Funding Rates and Reference Bank Quotations
	120
	

	36.    Counterparts
	122
	

	37.    PATRIOT Act
	122
	

	38.    Governing Law
	123
	

	39.    Enforcement
	123
	

	Schedule 1 The Original Parties
	124
	

	Part I The Original Borrower
	124
	

	Part II The Original Lenders
	125
	

	Schedule 2 Conditions Precedent
	126
	

	Part I Conditions Precedent to Initial Utilisation
	126
	

	Part II Conditions Precedent required to be delivered by the Additional Borrower
	128
	

	Schedule 3 Requests
	129
	

	Part I Utilisation Request
	129
	

	Part II Selection Notice
	131
	

	Schedule 4 Form of Transfer Certificate
	132
	

	Schedule 5 Form of Assignment Agreement
	135
	

	Schedule 6 Form of Accession Letter
	138
	

	Schedule 7 Timetables    
	139
	

	Schedule 8 Form of Increase Confirmation
	140
	

	Schedule 9 Subsidiaries
	143
	

- ii-

THIS AGREEMENT is dated 26 August 2015 and made between:
		
	(1)
	W.W. GRAINGER, INC. (the "Company");

		
	(2)
	THE SUBSIDIARY of the Company listed in Part I of Schedule 1 (The Original Parties) as original borrower (the "Original Borrower");

		
	(3)
	LLOYDS BANK PLC and LLOYDS SECURITIES INC. as mandated lead arrangers (whether acting individually or together the "Arranger");

		
	(4)
	THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Parties) as lenders (the "Original Lenders"); and

		
	(5)
	LLOYDS BANK PLC as agent of the other Finance Parties (the "Agent").

IT IS AGREED as follows:
SECTION 1
INTERPRETATION

		
	1.
	DEFINITIONS AND INTERPRETATION

		
	1.1
	Definitions

In this Agreement:
"Acceptable Bank" means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of BBB- or higher by Standard & Poor's or Fitch Ratings Ltd or Baa3 or higher by Moody's or a comparable rating from an internationally recognised credit rating agency.

"Accession Letter" means a document substantially in the form set out in Schedule 6 (Form of Accession Letter).

"Acquisition" means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of the share capital, partnership interests, membership interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a member of the Group), provided that the member of the Group is the surviving entity.

"Acquisition Agreement" means the sale and purchase agreement dated 30 July 2015 relating to the sale and purchase of the Target Shares and made between, amongst others, the Original Borrower and the Vendor.

"Acquisition Costs" means all fees, costs and expenses, stamp, registration and other Taxes incurred by the Original Borrower or any other member of the Group in connection with the Camelot Acquisition or the Transaction Documents.

- 1-

"Acquisition Documents" means the Acquisition Agreement, the Disclosure Letter and any other document designated as an "Acquisition Document" by the Agent and the Company.

"Additional Borrower" means the Target, when it becomes the Additional Borrower in accordance with Clause 23 (Changes to the Obligors).

"Affiliate" means, with respect to any Person, any other Person (other than a Subsidiary of the Company) which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person or any of its Subsidiaries. The term "control" means (a) the power to vote 25% or more of the shares or other equity interests of a Person having ordinary voting power, or (b) the possession, directly or indirectly, of any other power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

"Affiliated Entity" means, in relation to any Entity, a Company Subsidiary of that Entity or a Holding Company of that Entity or any other Company Subsidiary of that Holding Company.

"Applicable Law" means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

"Assignment Agreement" means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.

"Availability Period" means:

		
	(a)
	in relation to Facility A the period from and including the date of this Agreement to and including the date falling thirty days after the date of this Agreement; and

 
		
	(b)
	in relation to Facility B, the period from and including the date of this Agreement to and including the date falling one Month prior to the Termination Date.

"Available Commitment" means, in relation to a Facility, a Lender's Commitment under that Facility minus:

		
	(a)
	the amount of its participation in any outstanding Loans under that Facility; and

		
	(b)
	in relation to any proposed Utilisation, the amount of its participation in any Loans that are due to be made under that Facility on or before the proposed Utilisation Date,

other than, in relation to any proposed Utilisation under Facility B only, that Lender's participation in any Facility B Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date.

- 2-

"Available Facility" means, in relation to a Facility, the aggregate for the time being of each Lender's Available Commitment in respect of that Facility.

"Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.).

"Borrower" means the Original Borrower or the Additional Borrower.

"Break Costs" means the amount (if any) by which:

		
	(a)
	the interest (other than the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

exceeds:
		
	(b)
	the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in London.

"Camelot Acquisition" means the acquisition by the Original Borrower of the Target Shares on the terms of the Acquisition Documents.

"Capital Lease" means any lease of any property by any member of the Group, as lessee, that should, in accordance with GAAP, be classified and accounted for as a capital lease on a Consolidated balance sheet of the Group.

"Change of Control" means any one or more of the following:

		
	(a)
	the acquisition or holding by any person, entity or "group" (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than by any Exempt Person, the Company, any Subsidiary, or any employee benefit plan of the Company or a Subsidiary of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either the then-outstanding share capital or the combined voting power of the Company's then-outstanding voting securities entitled to vote generally in the election of directors; provided that no such person, entity or group shall be deemed to own beneficially any securities held by the Company or a Subsidiary or any employee benefit plan (or any related trust) of the Company or a Subsidiary; or

- 3-

		
	(b)
	individuals who, as of the Closing Date, constitute the board of directors of the Company (the "Incumbent Board") cease for any reason to constitute at least a majority of the board of directors of the Company; provided that any individual who becomes a director after the Closing Date whose election or nomination for election by the Company's shareholders was approved by at least a majority of the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest (as such terms are used in Rule 14a-11 under the Exchange Act) relating to the election of the directors of the Company) shall be deemed to be members of the Incumbent Board.

"Closing Date" means the date on which the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent. 

"Code" means the U.S. Internal Revenue Code of 1986 (or any successor legislation thereto) as amended from time to time, and the regulations promulgated and rulings issued thereunder, all as the same may be in effect at such date.

"Commitment" means a Facility A Commitment or a Facility B Commitment.

"Company Subsidiary" means any Entity (referred to as the "first person") in respect of which another Entity:

		
	(a)
	holds a majority of the voting rights in that first person or has the right under the constitution of the first person to direct the overall policy of the first person or alter the terms of its constitution; or

		
	(b)
	is a member of that first person and has the right to appoint or remove a majority of its board of directors or equivalent administration, management or supervisory body; or

		
	(c)
	has the right to exercise a dominant influence (which must include the right to give directions with respect to operating and financial policies of the first person which its directors are obliged to comply with whether or not for its benefit) over the first person by virtue of provisions contained in the articles (or equivalent) of the first person or by virtue of a control contract which is in writing and is authorised by the articles (or equivalent) of the first person and is permitted by the law under which such first person is established; or

		
	(d)
	is a member of that first person and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in the first person or the rights under its constitution to direct the overall policy of the first person or alter the terms of its constitution; or

		
	(e)
	has the power to exercise, or actually exercises dominant influence or control over the first person; or

		
	(f)
	together with the first person are managed on a unified basis,

- 4-

and for the purposes of this definition, an Entity shall be treated as a member of another Entity if any of that Entity's Company Subsidiaries is a member of that other Entity or, if any shares in that other Entity are held by an Entity acting on behalf of it or any of its Company Subsidiaries.  A subsidiary undertaking shall include any Entity the shares or ownership interests in which are subject to Security and where the legal title to the shares or ownership interests so secured are registered in the name of the secured party or its nominee pursuant to such Security.
"Completion" means the completion of the Camelot Acquisition in accordance with clause 6 of the Acquisition Agreement.
"Completion Date" means the date on which Completion occurs. 

"Confidential Information" means all information relating to any Obligor, the Group, the Finance Documents or a Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or a Facility from either:

		
	(a)
	any member of the Group or any of its advisers; or

		
	(b)
	another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers,

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes:
		
	(i)
	information that:

		
	(A)
	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 34 (Confidential Information); or

		
	(B)
	is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

		
	(C)
	is known by that Finance Party before the date the information is disclosed to it in accordance with paragraph (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality; and

		
	(ii)
	any Funding Rate or Reference Bank Quotation.

"Confidentiality Undertaking" means a confidentiality undertaking substantially in the latest recommended form of the LMA or in any other form agreed between the Company and the Agent.

"Consolidated" means, when used with reference to financial statements or financial statement items of the Group, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP.

- 5-

"Consolidated Tangible Net Worth" means, at any date, on a Consolidated basis for the Group, in accordance with GAAP, Consolidated shareholders equity of the Group minus the aggregate amount of any intangible assets of the Group, including goodwill, franchises, licenses, patents, trademarks, trade names, copyrights, service marks and brand names. 

"Constitutional Documents" means, for any company or corporation, the constitutional documents, the certificate or articles of incorporation, the bylaws, any certificate of determination or instrument relating to the rights of preferred shareholders of such company or corporation, any shareholder rights agreement, and all applicable resolutions of the board of directors (or any committee thereof) of such company or corporation.

"Contingent Obligation" means, as to any Person, any direct or indirect liability of that Person, whether or not contingent, with or without recourse:

		
	(a)
	with respect to any Indebtedness, lease, dividend, letter of credit or other obligation (the "primary obligations") of another Person (the "primary obligor"), including any obligation of that Person (i) to purchase, repurchase or otherwise acquire such primary obligations or any security therefor, (ii) to advance or provide funds for the payment or discharge of any such primary obligation, or to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency or any balance sheet item, level of income or financial condition of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation, or (iv) otherwise to assure or hold harmless the holder of any such primary obligation against loss in respect thereof (each, a "Guarantee Obligation");

		
	(b)
	with respect to any Surety Instrument issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings or payments;

		
	(c)
	to purchase any materials, supplies or other property from, or to obtain the services of, another Person if the relevant contract or other related document or obligation requires that payment for such materials, supplies or other property, or for such services, shall be made regardless of whether delivery of such materials, supplies or other property is ever made or tendered, or such services are ever performed or tendered; or

		
	(d)
	in respect of any Hedging Agreement.

The amount of any Contingent Obligation shall: 
		
	(i)
	in the case of Guarantee Obligations, be deemed equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made or, if not stated or if indeterminable, the maximum reasonably anticipated liability in respect thereof;

		
	(ii)
	in the case of Hedging Agreements, be determined in accordance with paragraph (h) of the definition of "Indebtedness"; and

		
	(iii)
	in the case of other Contingent Obligations, be equal to the maximum reasonably anticipated liability in respect thereof.

- 6-

"Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument, document or agreement to which such Person is a party or by which it or any of its property is bound.

"CTA" means the Corporation Tax Act 2009.

"Default" means an Event of Default or any event or circumstance specified in Clause 21 (Events of Default) which would (with the expiry of a grace period, the giving of notice or any combination of any of the foregoing) be an Event of Default.

"Defaulting Lender" means any Lender:

		
	(a)
	which has failed to make its participation in a Loan available (or has notified the Agent or the Company (which has notified the Agent) that it will not make its participation in a Loan available) by the Utilisation Date of that Loan in accordance with Clause 5.4 (Lenders' participation)

		
	(b)
	which has otherwise rescinded or repudiated a Finance Document; or

		
	(c)
	with respect to which an Insolvency Event has occurred and is continuing,

unless, in the case of paragraph (a) above:
		
	(i)
	its failure to pay is caused by:

		
	(A)
	administrative or technical error; or

		
	(B)
	a Disruption Event; and

		
	(C)
	payment is made within five days of its due date; or

		
	(ii)
	the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

"Disclosure Letter" has the meaning given to that term in the Acquisition Agreement.

"Disposal" has the meaning given to that term in Clause 20.12 (Disposal of Assets).

"Disruption Event" means either or both of:

		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facilities (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

- 7-

		
	(b)
	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

		
	(i)
	from performing its payment obligations under the Finance Documents; or

		
	(ii)
	from communicating with other Parties in accordance with the terms of the Finance Documents,

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.
"EDGAR" means the EDGAR Public Dissemination Service (PDS) System managed by Attain, LLC, the electronic subscriber service used for making documents publicly available in the United States, together with any successor filing system as the primary means of making documents publicly available in the United States.

"Employee Benefit Plan" means any employee benefit plan within the meaning of Section 3(3) of ERISA which (a) is maintained for employees of the Company or any ERISA Affiliate or (b) has at any time within the preceding six years been maintained for the employees of the Company or any current or former ERISA Affiliate.

"Entity" includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality).

"Environmental Claims" means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of non-compliance or violation or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law, including any and all claims by Governmental Authorities for enforcement, clean-up, removal, response, remedial or other actions or damages, contribution, indemnification cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to human health or the environment.

"Environmental Laws" means any and all federal, foreign, state, provincial and local laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities, relating to the protection of human health or the environment, including requirements relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials.

"ERISA" means, at any date, the United States Employee Retirement Income Security Act of 1974 (or any successor legislation thereto), as amended from time to time, and the regulations promulgated and rulings issued thereunder, all as the same may be in effect at such date.

- 8-

"ERISA Affiliate" means any Person who together with the Company is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.

"Event of Default" means any event or circumstance specified as such in Clause 21 (Events of Default).

"Exchange Act" means the Securities Exchange Act of 1934.

"Exempt Person" means any of the following:

		
	(a)
	any descendant of W.W. Grainger, or any spouse, widow or widower of such descendant (such descendants, spouses, widows and widowers collectively defined as the "Grainger Family Members");

		
	(b)
	any descendant of E.O. Slavik or any spouse, widow or widower of any such descendant (such descendants, spouses, widows and widowers collectively defined as the "Slavik Family Members" and with the Grainger Family Members collectively defined as the "Family Members");

		
	(c)
	any trust which was in existence on the date of this Agreement and which has been established by one or more Grainger Family Members, any estate of a Grainger Family Member who died on or before the date of this Agreement, and The Grainger Foundation (such trusts, estates and named entity collectively defined as the "Grainger Family Entities");

		
	(d)
	any trust which was in existence on the date of this Agreement and which has been established by one or more Slavik Family Members, any estate of a Slavik Family Member who died on or before the date of this Agreement, Mark IV Properties, Inc., and Mountain Capital Corporation (such trusts, estates and named entities collectively defined as the "Slavik Family Entities" and with the Grainger Family Entities collectively defined as the "Existing Family Entities");

		
	(e)
	any estate of a Family Member who dies after the date of this Agreement, or any trust established after the date of this Agreement by one or more Family Members or Existing Family Entities; provided that one or more Family Members, Existing Family Entities or charitable organisations which qualify as exempt organisations under Section 501(c) of the Code ("Charitable Organisations"), collectively, are the beneficiaries of at least 50% of the actuarially-determined beneficial interests in such estate or trust;

		
	(f)
	any Charitable Organisation which is established by one or more Family Members or Existing Family Entities (a "Family Charitable Organisation");

		
	(g)
	any corporation of which a majority of the voting power and a majority of the equity interest is held, directly or indirectly, by or for the benefit of one or more Family Members, Existing Family Entities, estates or trusts described in paragraph (e) above, or Family Charitable Organisations; and

- 9-

		
	(h)
	any partnership or other entity or arrangement of which a majority of the voting interest and a majority of the economic interest is held, directly or indirectly, by or for the benefit of one or more Family Members, Existing Family Entities, estates or trusts described in paragraph (e) above, or Family Charitable Organisations.

"Facility" means Facility A or Facility B.

"Facility A" means the term loan facility made available under this Agreement as described in Clause 2 (The Facilities).

"Facility A Commitment" means:

		
	(a)
	in relation to an Original Lender, the amount set opposite its name under the heading "Facility A Commitment" in Part II of Schedule 1 (The Original Parties) and the amount of any other Facility A Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (Increase); and

		
	(b)
	in relation to any other Lender, the amount of any Facility A Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.
"Facility A Loan" means a loan made or to be made under Facility A or the principal amount outstanding for the time being of that loan. 

"Facility A Repayment Date" means each of the dates specified in Clause 6.1 (Repayment of Facility A Loans) as Facility A Repayment Dates, but if any such date is not a Business Day, then that Facility A Repayment Date shall be deemed to be the immediately succeeding Business Day.

"Facility B" means the revolving loan facility made available under this Agreement as described in Clause 2 (The Facilities).

"Facility B Commitment" means:

		
	(a)
	in relation to an Original Lender, the amount set opposite its name under the heading "Facility B Commitment" in Part II of Schedule 1 (The Original Parties) and the amount of any other Facility B Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (Increase); and

		
	(b)
	in relation to any other Lender, the amount of any Facility B Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (Increase),

to the extent not cancelled, reduced or transferred by it under this Agreement.
"Facility B Loan" means a loan made or to be made under Facility B or the principal amount outstanding for the time being of that loan.

- 10-

"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement.

"FATCA" means:

		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

		
	(b)
	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the U.S. and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

		
	(c)
	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraph (a) or (b) above with the U.S. Internal Revenue Service, the U.S. government or any governmental or taxation authority in any other jurisdiction.

"FATCA Application Date" means:

		
	(a)
	in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the U.S.), 1 July 2014; 

		
	(b)
	in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources within the U.S.), 1 January 2017; or

		
	(c)
	in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraph (a) or (b) above, 1 January 2017,

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.
"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA.

"FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction.

"Federal Fair Labor Standards Act" means The Fair Labor Standards Act of 1938, as amended, 29 U.S.C. 201, et seq.

"Fee Letter" means any letter or letters dated on or about the date of this Agreement between the Arranger and the Company, the Agent and the Company or the Original Lenders and the Company setting out any of the fees referred to in Clause 11 (Fees).

"Finance Document" means this Agreement, any Fee Letter, the Accession Letter and any other document designated as such by the Agent and the Company.

- 11-

"Finance Party" means the Agent, the Arranger or a Lender.

"FRB" means the Board of Governors of the Federal Reserve System, and any Governmental Authority succeeding to any of its principal functions.

"Funding Rate" means any individual rate notified by a Lender to the Agent pursuant to paragraph (a)(ii) of Clause 10.4 (Cost of funds).

"GAAP" means United States generally accepted accounting principles, as recognised by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board, consistently applied and maintained on a consistent basis for the Group throughout the period indicated and consistent with the prior financial practice of the Group.

"Governmental Authority" means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through share or capital ownership or otherwise, by any of the foregoing.

"Group" means the Company and its Subsidiaries for the time being.

"Hazardous Materials" means any substances or materials:

		
	(a)
	which are or become defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or mixtures or toxic substances under any Environmental Law;

		
	(b)
	which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to human health or the environment and are or become regulated by any Governmental Authority;

		
	(c)
	the presence of which require investigation or remediation under any Environmental Law or common law;

		
	(d)
	the discharge or emission or release of which requires a permit or license under any Environmental Law or by any Governmental Authority;

		
	(e)
	which are deemed to constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighbouring properties;

		
	(f)
	which consist of underground or aboveground storage tanks, whether empty, filled or partially filled with any substance; or

		
	(g)
	which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas.

- 12-

"Hedging Agreement" means any agreement with respect to any Interest Rate Contract, agreement, commodity swap, forward foreign exchange agreement, currency swap agreement, cross-currency rate swap agreement, currency option agreement or other agreement or arrangement designed to alter the risks of any Person arising from fluctuations in rates, currency values or commodity prices.

"Holding Company" means, in relation to an Entity, any other Entity in respect of which it is a Company Subsidiary. 

"IFRS" means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements. 

"Impaired Agent" means the Agent at any time when:

		
	(a)
	it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

		
	(b)
	the Agent otherwise rescinds or repudiates a Finance Document;

		
	(c)
	(if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of "Defaulting Lender"; or

		
	(d)
	an Insolvency Event has occurred and is continuing with respect to the Agent;

unless, in the case of paragraph (a) above:
		
	(i)
	its failure to pay is caused by:

		
	(A)
	administrative or technical error; or

		
	(B)
	a Disruption Event; and

payment is made within five days of its due date; or
		
	(ii)
	the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

"Increase Confirmation" means a confirmation substantially in the form set out in Schedule 8 (Form of Increase Confirmation).

"Increase Lender" has the meaning given to that term in Clause 2.2 (Increase).

"Indebtedness" means, with respect to the Group at any date and without duplication, the sum of the following calculated in accordance with GAAP:

		
	(a)
	all liabilities, obligations and indebtedness for borrowed money including obligations evidenced by bonds, debentures, notes or other similar instruments of any such Person;

		
	(b)
	all liabilities for the deferred purchase price of property acquired by such Person, except trade payables arising in the ordinary course of business which are not more than 90 days overdue;

- 13-

		
	(c)
	all obligations of any such Person as lessee under Capital Leases;

		
	(d)
	all Indebtedness of any other Person secured by Security on any asset of any such Person;

		
	(e)
	all Contingent Obligations of any such Person;

		
	(f)
	all obligations, contingent or otherwise, of any such Person relative to the face amount of letters of credit, whether or not drawn, and banker's acceptances issued for the account of any such Person;

		
	(g)
	all obligations of any such Person to redeem, repurchase, exchange, defease or otherwise make payments in respect of share capital or other securities or partnership interests of such Person; and

		
	(h)
	all net payment obligations incurred by any such Person pursuant to Hedging Agreements.

"Insolvency Event" in relation to an entity means that the entity:

		
	(a)
	is dissolved (other than pursuant to a consolidation, amalgamation or merger);

		
	(b)
	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

		
	(c)
	makes a general assignment, arrangement or composition with or for the benefit of its creditors;

		
	(d)
	institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

		
	(e)
	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by an Entity or entity not described in paragraph (d) above and:

		
	(i)
	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

		
	(ii)
	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

		
	(f)
	has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

- 14-

		
	(g)
	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by an Entity or entity described in paragraph (d) above);

		
	(h)
	has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

		
	(i)
	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

		
	(j)
	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

"Insolvency Proceeding" means, with respect to any Person, (a) any case, action or proceeding with respect to such Person before any court or other Governmental Authority relating to bankruptcy, reorganisation, insolvency, liquidation, receivership, dissolution, moratorium, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors, granting of a moratorium, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors; undertaken under U.S. federal, state or foreign law, including the Bankruptcy Code.

"Interest Period" means, in relation to a Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.4 (Default interest).

"Interest Rate Contract" means any interest rate swap agreement, interest rate cap agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or any other agreement regarding the hedging of interest rate risk exposure executed in connection with hedging the interest rate exposure of any Person and any confirming letter executed pursuant to such agreement.

"Interpolated Screen Rate" means, in relation to any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan, 

each as of the Specified Time for sterling.
"ITA" means the Income Tax Act 2007.

- 15-

"Lender" means:

		
	(a)
	any Original Lender; and

		
	(b)
	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 2.2 (Increase) or Clause 22 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.
"LIBOR" means, in relation to any Loan:

		
	(a)
	the applicable Screen Rate as of the Specified Time for sterling and for a period equal in length to the Interest Period of that Loan; or

		
	(b)
	as otherwise determined pursuant to Clause 10.1 (Unavailability of Screen Rate).

"LMA" means the Loan Market Association.

"Loan" means a Facility A Loan or a Facility B Loan.

"Majority Lenders" means a Lender or Lenders whose Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments immediately prior to the reduction).

"Margin" means the rate per annum calculated in accordance with Clause 8.2 (Calculation of Margin).

"Margin Stock" means margin stock within the meaning of Regulations T, U and X.

"Material Adverse Effect" means:

		
	(a)
	a material adverse change in, or a material adverse effect upon, the operations, properties or financial condition of the Group taken as a whole;

		
	(b)
	a material impairment of the ability of an Obligor to perform its obligations under any Finance Document; or

		
	(c)
	a material adverse effect upon the legality, validity, binding effect or enforceability against an Obligor of any Finance Document.

"Month" means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

		
	(a)
	(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

		
	(b)
	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

- 16-

		
	(c)
	if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

The above rules will only apply to the last Month of any period.
"Moody's" means Moody's Investors Service Limited.

"Multiemployer Plan" means a "multiemployer plan" as defined in Section 4001(a)(3) of ERISA to which the Company or any ERISA Affiliate is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding six years.

"New Lender" has the meaning given to that term in Clause 22 (Changes to the Lenders).

"Obligations" means, in each case, whether present or future:

		
	(a)
	the principal of and interest on (including interest accruing after the filing of any bankruptcy or similar petition) the Loans; and

		
	(b)
	all fees and commissions (including reasonable and documented legal fees), charges, indebtedness, loans, liabilities, financial accommodations, obligations, covenants and duties owing by any Obligor to the Finance Parties, in each case under or in respect of this Agreement or any other Finance Document of every kind, nature and description, direct or indirect, absolute or contingent, due or to become due, or liquidated or unliquidated, contractual or otherwise, and whether or not evidenced by a note.

"Obligor" means a Borrower or the Company.

"OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control, and any successor thereto.

"Original Financial Statements" means the audited consolidated financial statements of the Group for the financial year ended 31 December 2014.

"Original Obligor" means the Original Borrower or the Company.

"Party" means a party to this Agreement.

"PATRIOT Act" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act of 2001).

"PBGC" means the U.S. Pension Benefit Guaranty Corporation, or any entity succeeding to all or any of its functions under ERISA.

- 17-

"Pension Plan" means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is maintained for the employees of the Company or any ERISA Affiliates or (b) has at any time within the preceding six years been maintained for the employees of the Company or any of its current or former ERISA Affiliates.

"Permitted Acquisition" means an Acquisition (a) with respect to which the target (or its board of directors or equivalent governing body) has not announced that it will oppose such Acquisition or commenced any litigation which alleges that such Acquisition violates or will violate any Applicable Law and (b) which occurs when no Default or Event of Default exists or will result therefrom.

"Person" means an individual, corporation, limited liability company, partnership, association, trust, business trust, joint venture, joint stock company, pool, syndicate, sole proprietorship, unincorporated organization, Governmental Authority or any other form of entity or group thereof.

"Qualifying Lender" has the meaning given to it in Clause 12 (Tax Gross-up and Indemnities).

"Quotation Day" means, in relation to any period for which an interest rate is to be determined, the first day of that period unless market practice differs in the Relevant Market, in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days).

"Reference Bank Quotation" means any quotation supplied to the Agent by a Reference Bank.

"Reference Bank Rate" means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks:

		
	(a)
	(other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in sterling for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

		
	(b)
	if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the Screen Rate are asked to submit to the relevant administrator.

"Reference Banks" means the principal London offices of such entities as may be appointed by the Agent in consultation with the Company.

"Regulations T, U and X" means, respectively, Regulations T, U and X of the Board of Governors of the Federal Reserve System of the United States (or any successor).

"Related Fund" in relation to a fund (the "first fund"), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliated Entity of the investment manager or investment adviser of the first fund.

- 18-

"Relevant Market" means the London interbank market.

"Repayment Instalment" means each instalment for repayment of the Facility A Loans referred to in Clause 6.1 (Repayment of Facility A Loans).

"Repeating Representations" means each of the representations set out in Clauses 18.1 (Corporate Existence and Power) to Clause 18.4 (Binding Effect), paragraph (a) of Clause 18.6 (No Default), Clause 18.7 (ERISA Compliance), Clause 18.8 (Use of Proceeds; Margin Regulations), Clause 18.13 (Regulated Entities) and Clause 18.17 (Full Disclosure).

"Representative" means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

"Responsible Officer" means any of the following:

		
	(a)
	the Chief Executive Officer of the Company,

		
	(b)
	the Chairman of the Board of the Company, 

		
	(c)
	the President of the Company, 

		
	(d)
	the Senior Vice President and Chief Financial Officer of the Company, 

		
	(e)
	the Vice President and Treasurer of the Company; and 

		
	(f)
	any other officer of the Company specified in writing by a Responsible Officer listed in paragraphs (a) to (e) above and reasonably acceptable to the Agent.

"Rollover Loan" means one or more Facility B Loans:

		
	(a)
	made or to be made on the same day that a maturing Facility B Loan is due to be repaid;

		
	(b)
	the aggregate amount of which is equal to or less than the amount of the maturing Facility B Loan; and

		
	(c)
	made or to be made to the Additional Borrower for the purpose of refinancing that maturing Facility B Loan.

"Sanctioned Country" means a country or territory subject to a comprehensive sanctions program maintained by OFAC, the European Union, Her Majesty's Treasury, the Department for Business, Innovation and Skills of the UK or the United Nations Security Council (as of the date of this Agreement, comprising Crimea, Cuba, Iran, North Korea, Sudan and Syria).

- 19-

"Sanctioned Person" means:

		
	(a)
	a Person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC, available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as updated from time to time; 

		
	(b)
	a Person named on the Sectoral Sanctions Identification list maintained by OFAC, available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/ssi_list.aspx;

		
	(c)
	a Person named on OFAC's Foreign Sanctions Evaders List and the U.S. State Department's Sanctioned Entities List, available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/fse_list.aspx and at http://www.state.gov/e/eb/tfs/spi/iran/entities/index.htm;

		
	(d)
	a Person named on the European Union's Consolidated List of persons, groups and entities subject to financial sanctions;

		
	(e)
	a Person named on the Consolidated List of Financial Sanctions Targets or the Consolidated List of Investment Ban Targets under the Ukraine (Sovereignty) Sanctions Regime maintained by Her Majesty's Treasury;

		
	(f)
	a Person named on any other similar list maintained by the United Nations Security Council;

		
	(g)
	

		
	(i)
	an agency of the government of a Sanctioned Country;

		
	(ii)
	Cuban nationals wherever they reside, except Cuban nationals that have established lawful permanent residency outside of Cuba; or

		
	(iii)
	a Person resident, located or organized in a Sanctioned Country; or

		
	(h)
	any Person owned or controlled by any of the above.

"Screen Rate" means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other Entity which takes over the administration of that rate) for sterling for the relevant period displayed on page LIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters.  If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Company.

"SEC" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

- 20-

"Security" means any security interest, mortgage, deed of trust, pledge, hypothecation, assignment, charge or deposit arrangement, encumbrance, lien (statutory or other) or preferential arrangement of any kind or nature whatsoever in respect of any property (including those created by, arising under or evidenced by any conditional sale or other title retention agreement), the interest of a lessor under a capital lease, or any financing lease having substantially the same economic effect as any of the foregoing, but not including the interest of a lessor under an operating lease.

"Selection Notice" means a notice substantially in the form set out in Part II of Schedule 3 (Requests) given in accordance with Clause 9 (Interest Periods) in relation to Facility A.

"Specified Event of Default" means an Event of Default arising under Clauses 21.1 (Non-Payment), 21.5 (Specific Defaults) (solely as a result of a breach of Clause 20.21 (Acquisition Documents)), 21.9 (Insolvency; Voluntary Proceedings) or 21.10 (Involuntary Proceedings). 

"Specified Time" means a day or time determined in accordance with Schedule 7 (Timetables).

"Standard & Poor's" means Standard & Poor's Rating Services.

"Subsidiary" means as to any Person, any corporation, partnership, limited liability company or other entity of which more than 50% of the outstanding share capital or other ownership interests having ordinary voting power to elect a majority of the board of directors or other managers of such corporation, partnership, limited liability company or other entity is at the time owned by such Person (irrespective of whether, at the time, share capital or other ownership interests of any other class or classes of such corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency). Unless otherwise qualified, references to "Subsidiary" or "Subsidiaries" in this Agreement shall refer to those of the Company and shall include the Borrowers.

"Surety Instruments" means all letters of credit (including standby and commercial), banker's acceptances, bank guarantees, surety bonds and similar instruments.

"Target" means Cromwell Group (Holdings) Limited, a company incorporated in England and Wales with registered number 01756362. 

"Target Shares" means all of the shares in the Target.

"Tax" means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

"Termination Date" means the date falling five years after the date of this Agreement.

"Total Commitments" means the aggregate of the Total Facility A Commitments and the Total Facility B Commitments, being £180,000,000 at the date of this Agreement.

"Total Facility A Commitments" means the aggregate of the Facility A Commitments, being £160,000,000 at the date of this Agreement.

- 21-

"Total Facility B Commitments" means the aggregate of the Facility B Commitments, being £20,000,000 at the date of this Agreement.

"Trading with the Enemy Act" means the United States Trading with the Enemy Act of 1917, (or any successor legislation thereto) as amended from time to time, and the regulations promulgated and rulings issued thereunder, all as the same may be in effect at such date.

"Transaction Documents" means the Finance Documents and the Acquisition Documents.

"Transfer Certificate" means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Agent and the Company.

"Transfer Date" means, in relation to an assignment or a transfer, the later of:

		
	(a)
	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

		
	(b)
	the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.

"UK GAAP" means generally accepted accounting principles in the United Kingdom, including IFRS. 

"Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance Documents.

"U.S." and "United States" means the United States of America, its territories, possessions and other areas subject to the jurisdiction of the United States of America.

"Utilisation" means a utilisation of a Facility.

"Utilisation Date" means the date of a Utilisation, being the date on which the relevant Loan is to be made.

"Utilisation Request" means a notice substantially in the relevant form set out in Part I of Schedule 3 (Requests).

"VAT" means:

		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.

"Vendor" means Gregory Family Office Limited, a company incorporated in England and Wales with registered number 09473311.

- 22-

"Wholly-Owned" means, with respect to a Subsidiary, that all of the shares of capital stock or other ownership interests of such Subsidiary are, directly or indirectly, owned or controlled by the Company and/or one or more of its Wholly-Owned Subsidiaries (except for directors' qualifying shares or other shares required by Applicable Law to be owned by a Person other than the Company).
		
	1.2
	Construction

		
	(a)
	Unless a contrary indication appears any reference in this Agreement to:

		
	(i)
	the "Agent", the "Arranger", any "Finance Party", any "Lender", any "Obligor" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents;

		
	(ii)
	"assets" includes present and future properties, revenues and rights of every description;

		
	(iii)
	a "Finance Document" or a "Transaction Document" or any other agreement or instrument is a reference to that Finance Document or Transaction Document or other agreement or instrument as amended, novated, supplemented, extended, replaced or restated;

		
	(iv)
	a "group of Lenders" includes all the Lenders;

		
	(v)
	a "regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation;

		
	(vi)
	a provision of law is a reference to that provision as amended or re-enacted; and

		
	(vii)
	a time of day is a reference to London time.

		
	(b)
	The determination of the extent to which a rate is "for a period equal in length" to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this Agreement.

		
	(c)
	Section, Clause and Schedule headings are for ease of reference only.

		
	(d)
	Any reference in this Agreement to "the ordinary course of business" shall be interpreted in a manner consistent with the meaning given to such phrase in the laws of the State of Illinois. 

		
	(e)
	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

		
	(f)
	A Default or an Event of Default is "continuing" if it has not been remedied or waived.

- 23-

		
	1.3
	Currency symbols and definitions

		
	(a)
	"$", "USD" and "dollars" denote the lawful currency of the United States of America.

		
	(b)
	"£", "GBP" and "sterling" denote the lawful currency of the United Kingdom.

		
	1.4
	Third party rights

		
	(a)
	Unless expressly provided to the contrary in a Finance Document, an Entity who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the "Third Parties Act") to enforce or to enjoy the benefit of any term of this Agreement.

		
	(b)
	Subject to Clause 33.3 (Other exceptions) but otherwise notwithstanding any term of any Finance Document, the consent of any Entity who is not a Party is not required to rescind or vary this Agreement at any time.

- 24-

SECTION 2
THE FACILITIES

		
	2.
	THE FACILITIES

		
	2.1.
	The Facilities

Subject to the terms of this Agreement, the Lenders make available:
		
	(a)
	to the Original Borrower, a sterling term loan facility in an aggregate amount equal to the Total Facility A Commitments; and 

		
	(b)
	to the Additional Borrower, a sterling revolving loan facility in an aggregate amount equal to the Total Facility B Commitments.

		
	2.2.
	Increase

		
	(a)
	The Company may by giving prior notice to the Agent by no later than the date falling ten Business Days after the effective date of a cancellation of:

		
	(i)
	the Available Commitments of a Defaulting Lender in accordance with paragraph (g) of Clause 7.5 (Right of replacement or repayment and cancellation in relation to a single Lender); or

		
	(ii)
	the Commitments of a Lender in accordance with:

		
	(A)
	Clause 7.1 (Illegality); or

		
	(B)
	paragraph (a) of Clause 7.5 (Right of replacement or repayment and cancellation in relation to a single Lender), 

request that the Commitments relating to any Facility be increased (and the Commitments relating to that Facility shall be so increased) in an aggregate amount in sterling of up to the amount of the Available Commitments or Commitments relating to that Facility so cancelled as follows:
		
	(iii)
	the increased Commitments will be assumed by one or more Lenders or other banks, financial institutions, trusts, funds or other entities (each an "Increase Lender") selected by the Company (each of which shall not be a member of the Group) and each of which confirms in writing (whether in the relevant Increase Confirmation or otherwise) its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

		
	(iv)
	each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender;

- 25-

		
	(v)
	each Increase Lender shall become a Party as a "Lender" and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender;

		
	(vi)
	the Commitments of the other Lenders shall continue in full force and effect; and

		
	(vii)
	any increase in the Commitments relating to a Facility shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

		
	(b)
	An increase in the Commitments relating to a Facility will only be effective on:

		
	(i)
	the execution by the Agent of an Increase Confirmation from the relevant Increase Lender; and

		
	(ii)
	in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase the Agent being satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender. The Agent shall promptly notify the Company and the Increase Lender upon being so satisfied.

		
	(c)
	Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective.

		
	(d)
	The Company shall, promptly on demand, pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause 2.2.

		
	(e)
	The Increase Lender shall, on the date upon which the increase takes effect, pay to the Agent (for its own account) a fee in an amount equal to the fee which would be payable under Clause 22.3 (Assignment or transfer fee) if the increase was a transfer pursuant to Clause 22.5 (Procedure for transfer) and if the Increase Lender was a New Lender.

		
	(f)
	The Company may pay to the Increase Lender a fee in the amount and at the times agreed between the Company and the Increase Lender in a letter between the Company and the Increase Lender setting out that fee.  A reference in this Agreement to a Fee Letter shall include any letter referred to in this paragraph.

		
	(g)
	Clause 22.4 (Limitation of responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 2.2 in relation to an Increase Lender as if references in that Clause to: 

		
	(i)
	an "Existing Lender" were references to all the Lenders immediately prior to the relevant increase;

		
	(ii)
	the "New Lender" were references to that "Increase Lender"; and

- 26-

		
	(iii)
	a "re-transfer" and "re-assignment" were references to respectively a "transfer" and "assignment".

		
	2.3.
	Finance Parties' rights and obligations

		
	(a)
	The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

		
	(b)
	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt.

		
	(c)
	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.

		
	3.
	PURPOSE

3.1       Purpose

		
	(a)
	The Original Borrower shall apply all amounts borrowed by it under Facility A towards:

		
	(i)
	payment to the Vendor of the purchase price for the Target Shares under the Acquisition Agreement; 

		
	(ii)
	payment of the Acquisition Costs (other than periodic fees); and

		
	(iii)
	its general corporate and working capital purposes and those of its Subsidiaries.

		
	(b)
	The Additional Borrower shall apply all amounts borrowed by it under Facility B towards its general corporate and working capital purposes.

3.2       Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

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	4.
	CONDITIONS OF UTILISATION

4.1       Initial conditions precedent

		
	(a)
	No Borrower may deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent.  The Agent shall notify the Company and the Lenders promptly upon being so satisfied.

		
	(b)
	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

4.2       Further conditions precedent

The Lenders will only be obliged to comply with Clause 5.4 (Lenders' participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:
		
	(a)
	in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan; and

		
	(b)
	in relation to any Utilisation on the Completion Date, all the representations and warranties in Clause 18 (Representations) or, in relation to any other Utilisation, the Repeating Representations to be made by each Obligor are true in all material respects. 

4.3   Maximum number of Loans

		
	(a)
	A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation:

		
	(i)
	two or more Facility A Loans would be outstanding; or

		
	(ii)
	eleven or more Facility B Loans would be outstanding.

		
	(b)
	The Original Borrower may not request that a Facility A Loan be divided if, as a result of the proposed division, three or more Facility A Loans would be outstanding.

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SECTION 3
UTILISATION

		
	5.
	UTILISATION

		
	5.1.
	Delivery of a Utilisation Request

A Borrower may utilise a Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time.
		
	5.2.
	Completion of a Utilisation Request

 
		
	(a)
	Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

		
	(i)
	it identifies the Facility to be utilised;

		
	(ii)
	the proposed Utilisation Date is a Business Day within the Availability Period applicable to that Facility;

		
	(iii)
	the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

		
	(iv)
	the proposed Interest Period complies with Clause 9 (Interest Periods).

		
	(b)
	Only one Loan may be requested in each Utilisation Request.

		
	5.3.
	Currency and amount

		
	(a)
	The currency specified in a Utilisation Request must be sterling.

		
	(b)
	The amount of the proposed Loan must be an amount which is not more than the Available Facility and which is £160,000,000 for Facility A and a minimum of £1,000,000 for Facility B or in either case, if less, the Available Facility.

		
	5.4.
	Lenders' participation

		
	(a)
	If the conditions set out in this Agreement have been met, and subject to Clause 6.2 (Repayment of Facility B Loans), each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

		
	(b)
	The amount of each Lender's participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

		
	(c)
	The Agent shall notify each Lender of the amount of each Loan, the amount of its participation in that Loan and, in the case of a Facility B Loan and if different, the amount of that participation to be made available in accordance with Clause 27.1 (Payments to the Agent), in each case by the Specified Time.

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	5.5.
	Cancellation of Commitment

		
	(a)
	The Facility A Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period for Facility A.

		
	(b)
	The Facility B Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period for Facility B.

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SECTION 4
REPAYMENT, PREPAYMENT AND CANCELLATION

		
	6.
	REPAYMENT

		
	6.1
	Repayment of Facility A Loans

		
	(a)
	The Original Borrower shall repay the Facility A Loans in instalments by repaying on each Facility A Repayment Date an amount which reduces the amount of the outstanding aggregate Facility A Loans by the amount set out opposite each Facility A Repayment Date below and shall repay the outstanding amount of the Facility A Loans in full on the Termination Date.

	
		
	Facility A Repayment Date
	Repayment Instalment

	 
	 

	29 February 2016
	£4,000,000

	 
	 

	31 August 2016
	£4,000,000

	 
	 

	28 February 2017
	£4,000,000

	 
	 

	31 August 2017
	£4,000,000

	 
	 

	28 February 2018
	£4,000,000

	 
	 

	31 August 2018
	£4,000,000

	 
	 

	28 February 2019
	£4,000,000

	 
	 

	31 August 2019
	£4,000,000

	 
	 

	29 February 2020
	£4,000,000

		
	(b)
	If, in relation to a Facility A Repayment Date, the aggregate amount of the Facility A Loans made to the Original Borrower exceeds the Repayment Instalment to be repaid by the Original Borrower, the Company may, if it gives the Agent not less than five Business Days' prior notice, select which of those Facility A Loans will be wholly or partially repaid so that the Repayment Instalment is repaid on the relevant Facility A Repayment Date in full. The Company may not make a selection if as a result more than one Facility A Loan will be partially repaid.

		
	(c)
	If the Company fails to deliver a notice to the Agent in accordance with paragraph (b) above, the Agent shall select the Facility A Loans to be wholly or partially repaid. 

		
	(d)
	The Original Borrower may not reborrow any part of Facility A which is repaid.

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	6.2
	Repayment of Facility B Loans

		
	(a)
	The Additional Borrower shall repay each Facility B Loan on the last day of its Interest Period. 

		
	(b)
	Without prejudice to the Additional Borrower's obligation under paragraph (a) above, if:

		
	(i)
	one or more Facility B Loans are to be made available to the Additional Borrower:

		
	(A)
	on the same day that a maturing Facility B Loan is due to be repaid by the Additional Borrower; and

		
	(B)
	in whole or in part for the purpose of refinancing the maturing Facility B Loan; and

		
	(ii)
	the proportion borne by each Lender's participation in the maturing Facility B Loan to the amount of that maturing Facility B Loan is the same as the proportion borne by that Lender's participation in the new Facility B Loans to the aggregate amount of those new Facility B Loans,

the aggregate amount of the new Facility B Loans shall, unless the Company notifies the Agent to the contrary in the relevant Utilisation Request, be treated as if applied in or towards repayment of the maturing Facility B Loan so that:
		
	(A)
	if the amount of the maturing Facility B Loan exceeds the aggregate amount of the new Facility B Loans:

		
	(1)
	the Additional Borrower will only be required to make a payment under Clause 27.1 (Payments to the Agent) in an amount in the relevant currency equal to that excess; and

		
	(2)
	each Lender's participation in the new Facility B Loans shall be treated as having been made available and applied by the Additional Borrower in or towards repayment of that Lender's participation in the maturing Facility B Loan and that Lender will not be required to make a payment under Clause 27.1 (Payments to the Agent) in respect of its participation in the new Facility B Loans; and

		
	(B)
	if the amount of the maturing Facility B Loan is equal to or less than the aggregate amount of the new Facility B Loans:

		
	(1)
	the Additional Borrower will not be required to make a payment under Clause 27.1 (Payments to the Agent); and

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	(2)
	each Lender will be required to make a payment under Clause 27.1 (Payments to the Agent) in respect of its participation in the new Facility B Loans only to the extent that its participation in the new Facility B Loans exceeds that Lender's participation in the maturing Facility B Loan and the remainder of that Lender's participation in the new Facility B Loans shall be treated as having been made available and applied by the Additional Borrower in or towards repayment of that Lender's participation in the maturing Facility B Loan.

		
	7.
	PREPAYMENT AND CANCELLATION

		
	7.1
	Illegality

If, in any applicable jurisdiction, it becomes unlawful for any Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in any Loan or it becomes unlawful for any Affiliated Entity of a Lender for that Lender to do so:
		
	(a)
	that Lender shall promptly notify the Agent upon becoming aware of that event;

		
	(b)
	upon the Agent notifying the Company, each Available Commitment of that Lender will be immediately cancelled; and

		
	(c)
	to the extent that the Lender's participation has not been transferred pursuant to paragraph (d) of Clause 7.5 (Right of replacement or repayment and cancellation in relation to a single Lender), each Borrower shall repay that Lender's participation in the Loans made to that Borrower on the last day of the Interest Period for each Loan occurring after the Agent has notified the Company or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no later than the last day of any applicable grace period permitted by law) and that Lender's corresponding Commitment(s) shall be cancelled in the amount of the participations repaid.

		
	7.2
	Voluntary cancellation

The Company may, if it gives the Agent not less than three Business Days' (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of £5,000,000 and integral multiples of £1,000,000 (or such other amount as will cause the Total Facility A Commitments or the Total Facility B Commitments to be an integral multiple of £1,000,000) of an Available Facility.  Any cancellation under this Clause 7.2 shall reduce the Commitments of the Lenders rateably under that Facility.

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	7.3
	Voluntary prepayment of Facility A Loans

		
	(a)
	The Original Borrower may, if it gives the Agent not less than five Business Days' (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of any Facility A Loan (but, if in part, being an amount that reduces the amount of the Facility A Loan by a minimum amount of £5,000,000 and integral multiples of £1,000,000 (or such other amount as will cause the aggregate principal amount of all Loans to be an integral multiple of £1,000,000)).

		
	(b)
	A Facility A Loan may only be prepaid after the last day of the Availability Period for Facility A (or, if earlier, the day on which the applicable Available Facility is zero).

		
	(c)
	If the Original Borrower prepays the whole or any part of a Facility A Loan in accordance with this Clause 7.3 then the amount of the Repayment Instalment for each Facility A Repayment Date falling after that prepayment will reduce pro rata by the amount prepaid.

		
	7.4
	Voluntary prepayment of Facility B Loans

The Additional Borrower may, if it gives the Agent not less than three Business Days' (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Facility B Loan (but if in part, being an amount that reduces the amount of the Facility B Loan by a minimum amount of £1,000,000).
		
	7.5
	Right of replacement or repayment and cancellation in relation to a single Lender

		
	(a)
	If:

		
	(i)
	any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 12.2 (Tax gross-up); or

		
	(ii)
	any Lender claims indemnification from the Company under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs),

the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment(s) of that Lender and its intention to procure the repayment of that Lender's participation in the Loans or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.
		
	(b)
	On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment(s) of that Lender shall immediately be reduced to zero.

		
	(c)
	On the last day of each Interest Period which ends after the Company has given notice of cancellation under paragraph (a) above (or, if earlier, the date specified by the Company in that notice), each Borrower to which a Loan is outstanding shall repay that Lender's participation in that Loan.

- 34-

		
	(d)
	If:

		
	(i)
	any of the circumstances set out in paragraph (a) above apply to a Lender; or

		
	(ii)
	an Obligor becomes obliged to pay any amount in accordance with Clause 7.1 (Illegality) to any Lender,

the Company may, on ten Business Days' prior notice to the Agent and that Lender, replace that Lender by requiring that Lender to (and to the extent permitted by law, that Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Company which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash payable at the time of the transfer in an amount equal to the outstanding principal amount of such Lender's participation in the outstanding Loans and all accrued interest (to the extent that the Agent has not given a notification under Clause 22.9 (Pro rata interest settlement), Break Costs and other amounts payable in relation thereto under the Finance Documents.
		
	(e)
	The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

		
	(i)
	the Company shall have no right to replace the Agent;

		
	(ii)
	neither the Agent nor any Lender shall have any obligation to find a replacement Lender; 

		
	(iii)
	in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents; and

		
	(iv)
	the Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (d) above once it is satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer.

		
	(f)
	A Lender shall perform the checks described in paragraph (e)(iv) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (d) above and shall notify the Agent and the Company when it is satisfied that it has complied with those checks.

		
	(g)
	

		
	(i)
	If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent five Business Days' notice of cancellation of each Available Commitment of that Lender.

		
	(ii)
	On the notice referred to in paragraph (i) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.

- 35-

		
	(iii)
	The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (i) above, notify all the Lenders.

		
	7.6
	Restrictions

		
	(a)
	Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

		
	(b)
	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

		
	(c)
	The Original Borrower may not reborrow any part of Facility A which is prepaid.

		
	(d)
	Unless a contrary indication appears in this Agreement, any part of Facility B which is prepaid or repaid may be reborrowed in accordance with the terms of this Agreement.

		
	(e)
	The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

		
	(f)
	Subject to Clause 2.2 (Increase), no amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

		
	(g)
	If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Company or the affected Lender, as appropriate.

		
	(h)
	If all or part of any Lender's participation in a Loan under a Facility is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of that Lender's Commitment (equal to the amount of the participation which is repaid or prepaid) in respect of that Facility will be deemed to be cancelled on the date of repayment or prepayment.

		
	7.7
	Application of prepayments

Any prepayment of a Loan pursuant to Clause 7.3 (Voluntary prepayment of Facility A Loans) or Clause 7.4 (Voluntary prepayment of Facility B Loans) shall be applied pro rata to each Lender's participation in that Loan.

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SECTION 5
COSTS OF UTILISATION

		
	8.
	INTEREST

		
	8.1
	Calculation of interest

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:
		
	(a)
	Margin; and

		
	(b)
	LIBOR.

		
	8.2
	Calculation of Margin

		
	(a)
	Subject to the following provisions of this Clause 8.2, the Margin in relation to each Loan shall be 0.75 per cent. per annum.

		
	(b)
	If, at any time after the date of this Agreement, both Moody's and Standard & Poor's publish a revised rating of the senior unsecured non-credit enhanced long-term funded debt (the "Debt Rating") of the Company, the Margin in relation to each Loan will be determined in accordance with the table below:

	
			
	Debt Rating
(Standard & Poor's)
	Debt Rating
(Moody's)
	Margin
(per cent. per annum)

	A (or higher)
	A2 (or higher)
	0.75

	BBB+ or A-
	Baa1 or A-3
	1.00

	BBB- or BBB
	Baa3 or Baa2
	1.25

	BB+
	Ba1
	1.50

	BB (or lower)
	Ba2 (or lower)
	3.00

		
	(c)
	If, at any time, the Debt Ratings published in respect of the Company by each of Moody's and Standard & Poor's differ by:

		
	(i)
	one level, the Margin in relation to each Loan will be determined on the basis of the higher of the two Debt Ratings; or

		
	(ii)
	two or more levels, the Margin in relation to each Loan will be determined on the basis of the level which is one rating below the higher of such published Debt Ratings. 

		
	(d)
	If either of Moody's or Standard & Poor's withdraw their respective Debt Ratings in respect of the Company, the Margin in relation to each Loan shall be determined on the basis of the remaining Debt Rating.

- 37-

		
	(e)
	If both Moody's and Standard & Poor's withdraw their respective Debt Ratings in respect of the Company, the Margin in relation to each Loan shall be 3.00 per cent. per annum. 

		
	(f)
	Any adjustment to the Margin (whether upwards or downwards) will apply on and from the date of publication of any relevant change to (or withdrawal of) the Debt Rating assigned to the Company by Moody's and/or Standard & Poor's. 

		
	8.3
	Payment of interest

The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six Monthly intervals after the first day of the Interest Period).
		
	8.4
	Default interest

		
	(a)
	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is one per cent. per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 8.4 shall be immediately payable by the Obligor on demand by the Agent.

		
	(b)
	If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

		
	(i)
	the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

		
	(ii)
	the rate of interest applying to the overdue amount during that first Interest Period shall be one per cent. per annum higher than the rate which would have applied if the overdue amount had not become due.

		
	(c)
	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

		
	8.5
	Notification of rates of interest

		
	(a)
	The Agent shall promptly notify the relevant Lenders and the relevant Borrower of the determination of a rate of interest under this Agreement.

		
	(b)
	The Agent shall promptly notify the relevant Borrower of each Funding Rate relating to a Loan.

- 38-

		
	9.
	INTEREST PERIODS

		
	9.1
	Selection of Interest Periods

		
	(a)
	A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan is a Facility A Loan and has already been borrowed) in a Selection Notice.

		
	(b)
	Each Selection Notice for a Facility A Loan is irrevocable and must be delivered to the Agent by the Original Borrower (or the Company on behalf of the Original Borrower) not later than the Specified Time.

		
	(c)
	If the Original Borrower (or the Company) fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will, subject to Clause 9.2 (Changes to Interest Periods), be one Month.

		
	(d)
	Subject to this Clause 9, a Borrower (or the Company) may select an Interest Period of one, two, three or six Months or of any other period agreed between the Company, the Agent and all the Lenders in relation to the relevant Loan.  In addition, the Original Borrower (or the Company on its behalf) may select an Interest Period for a Facility A Loan of a period of less than one Month, if necessary to ensure that there are sufficient Facility A Loans (with an aggregate amount equal to or greater than the Repayment Instalment) which have an Interest Period ending on a Facility A Repayment Date for the Original Borrower to make the Repayment Instalment due on that date.

		
	(e)
	An Interest Period for a Loan shall not extend beyond the Termination Date applicable to its Facility.

		
	(f)
	Each Interest Period for a Facility A Loan shall start on the Utilisation Date or (if already made) on the last day of its preceding Interest Period.

		
	(g)
	A Facility B Loan has one Interest Period only.

		
	9.2
	Changes to Interest Periods

		
	(a)
	Prior to determining the interest rate for a Facility A Loan, the Agent may shorten an Interest Period for any Facility A Loan to ensure there are sufficient Facility A Loans (with an aggregate amount equal to or greater than the Repayment Instalment) which have an Interest Period ending on a Facility A Repayment Date for the Original Borrower to make the Repayment Instalment due on that date. 

		
	(b)
	If the Agent makes any of the changes to an Interest Period referred to in this Clause 9.2, it shall promptly notify the Company and the Lenders.

- 39-

		
	9.3
	Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).
		
	9.4
	Division of Facility A Loans

Subject to Clause 4.3 (Maximum number of Loans) and Clause 5.3 (Currency and amount), if the Original Borrower (or the Company on its behalf) requests in a Selection Notice that a Facility A Loan be divided into two Facility A Loans, that Facility A Loan will, on the last day of its Interest Period, be so divided into the amounts specified in that Selection Notice, being an aggregate amount equal to the amount of the Facility A Loan immediately before its division.
		
	10.
	CHANGES TO THE CALCULATION OF INTEREST

		
	10.1
	Unavailability of Screen Rate

		
	(a)
	Interpolated Screen Rate:  If no Screen Rate is available for LIBOR for the Interest Period of a Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan.

		
	(b)
	Reference Bank Rate:  If no Screen Rate is available for LIBOR for:

		
	(i)
	sterling; or

		
	(ii)
	the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate,

the applicable LIBOR shall be the Reference Bank Rate as of the Specified Time for sterling and for a period equal in length to the Interest Period of that Loan.
		
	(c)
	Cost of funds:  If paragraph (b) above applies but no Reference Bank Rate is available for sterling or the relevant Interest Period there shall be no LIBOR for that Loan and Clause 10.4 (Cost of funds) shall apply to that Loan for that Interest Period.

		
	10.2
	Calculation of Reference Bank Rate

		
	(a)
	Subject to paragraph (b) below, if LIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by the Specified Time, the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.

		
	(b)
	If at or about noon on the Quotation Day none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

- 40-

		
	10.3
	Market disruption

If before close of business in London on the Quotation Day for the relevant Interest Period the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of LIBOR then Clause 10.4 (Cost of funds) shall apply to that Loan for the relevant Interest Period.
		
	10.4
	Cost of funds

		
	(a)
	If this Clause 10.4 applies, the rate of interest on the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

		
	(i)
	the Margin; and

		
	(ii)
	the weighted average of the rates notified to the Agent by each Lender as soon as practicable and in any event before the date falling five Business Days before interest is due to be paid in respect of that Interest Period to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Loan from whatever source it may reasonably select.

		
	(b)
	If this Clause 10.4 applies and the Agent or the Company so requires, the Agent and the Company shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

		
	(c)
	Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

		
	(d)
	If this Clause 10.4 applies but any Lender does not supply a quotation by the time specified in paragraph (a)(ii) above the rate of interest shall be calculated on the basis of the quotations of the remaining Lenders.

		
	10.5
	Break Costs

		
	(a)
	Each Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

		
	(b)
	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

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	11.
	FEES

		
	11.1
	Commitment fee

		
	(a)
	The Company shall (or shall procure that the Original Borrower shall) pay to the Agent (for the account of each Lender) a fee in sterling computed at the rate of 35 per cent. per annum of the applicable Margin on that Lender's Available Commitment under Facility B for the Availability Period applicable to Facility B.

		
	(b)
	The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the relevant Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective.

		
	11.2
	Upfront fee

The Company shall (or shall procure that the Original Borrower shall) pay to the Original Lenders an upfront fee in the amount and at the times agreed in a Fee Letter.
		
	11.3
	Coordination fee

The Company shall (or shall procure that the Original Borrower shall) pay to the Arranger a coordination fee in the amount and at the times agreed in a Fee Letter.
		
	11.4
	Agency fee

The Company shall (or shall procure that the Original Borrower shall) pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

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SECTION 6
ADDITIONAL PAYMENT OBLIGATIONS

		
	12.
	TAX GROSS-UP AND INDEMNITIES

		
	12.1
	Definitions

		
	(a)
	In this Agreement:

"Borrower DTTP Filing" means an HM Revenue & Customs' Form DTTP2 duly completed and filed by the relevant Borrower, which:
		
	(i)
	where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite that Lender's name in Part II of Schedule 1 (The Original Parties), and

		
	(A)
	where the Borrower is the Original Borrower, is filed with HM Revenue & Customs within 30 days of the date of this Agreement; or

		
	(B)
	where the Borrower is the Additional Borrower, is filed with HM Revenue & Customs within 30 days of the date on which that Borrower becomes the Additional Borrower; or

		
	(ii)
	where it relates to a Treaty Lender that is a New Lender or an Increase Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of that Lender in the relevant Transfer Certificate, Assignment Agreement or Increase Confirmation, and

		
	(A)
	where the Borrower is a Borrower as at the relevant Transfer Date or date on which the increase in Commitment described in the relevant Increase Confirmation takes effect, is filed with HM Revenue & Customs within 30 days of that Transfer Date or date on which the increase in Commitment described in the relevant Increase Confirmation takes effect; or

		
	(B)
	where the Borrower is not a Borrower as at the relevant Transfer Date or date on which the increase in Commitment described in the relevant Increase Confirmation takes effect, is filed with HM Revenue & Customs within 30 days of the date on which that Borrower becomes the Additional Borrower.

"Protected Party" means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

- 43-

"Qualifying Lender" means:
		
	(i)
	a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:

		
	(A)
	a Lender:

		
	(1)
	which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or

		
	(2)
	in respect of an advance made under a Finance Document by an Entity that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

		
	(B)
	a Lender which is:

		
	(1)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(2)
	a partnership each member of which is:

		
	(a)
	a company so resident in the United Kingdom; or

		
	(b)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(3)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company; or

		
	(C)
	a Treaty Lender.

- 44-

"Tax Confirmation" means a confirmation by a Lender that the Entity beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:
		
	(i)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(ii)
	a partnership each member of which is: 

		
	(A)
	a company so resident in the United Kingdom; or

		
	(B)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(iii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.

"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax.
"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.
"Tax Payment" means either the increase in a payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).
"Treaty Lender" means a Lender which:
		
	(i)
	is treated as a resident of a Treaty State for the purposes of the Treaty; and

		
	(ii)
	does not carry on a business in the United Kingdom through a permanent establishment with which that Lender's participation in the Loan is effectively connected.

"Treaty State" means a jurisdiction having a double taxation agreement (a "Treaty") with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest.
"UK Non-Bank Lender" means where a Lender becomes a Party after the day on which this Agreement is entered into, a Lender which gives a Tax Confirmation in the Assignment Agreement or Transfer Certificate which it executes on becoming a Party.

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	(b)
	Unless a contrary indication appears, in this Clause 12 a reference to "determines" or "determined" means a determination made in the absolute discretion of the Entity making the determination.

		
	12.2
	Tax gross-up

		
	(a)
	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

		
	(b)
	The Company shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender.  If the Agent receives such notification from a Lender it shall notify the Company and that Obligor.

		
	(c)
	If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

		
	(d)
	A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the United Kingdom, if on the date on which the payment falls due:

		
	(i)
	the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or

		
	(ii)
	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of "Qualifying Lender" and:

		
	(A)
	an officer of HM Revenue & Customs has given (and not revoked) a direction (a "Direction") under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and

		
	(B)
	the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or

		
	(iii)
	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of "Qualifying Lender" and:

		
	(A)
	the relevant Lender has not given a Tax Confirmation to the Company; and

- 46-

		
	(B)
	the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Company, on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable belief that the payment was an "excepted payment" for the purpose of section 930 of the ITA; or 

		
	(iv)
	the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (g) or (h) (as applicable) below.

		
	(e)
	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

		
	(f)
	Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

		
	(g)
	

		
	(i)
	Subject to paragraph (ii) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

		
	(ii)
	

		
	(A)
	A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Part II of Schedule 1 (The Original Parties); and

		
	(B)
	a New Lender or an Increase Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it executes,

- 47-

and, having done so, that Lender shall be under no obligation pursuant to paragraph (i) above.
		
	(h)
	If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (g)(ii) above and:

		
	(i)
	a Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or

		
	(ii)
	a Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but:

		
	(A)
	that Borrower DTTP Filing has been rejected by HM Revenue & Customs; or

		
	(B)
	HM Revenue & Customs has not given the Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing,

and, in each case, the Borrower has notified that Lender in writing, that Lender and the Borrower shall co-operate in completing any additional procedural formalities necessary for that Borrower to obtain authorisation to make that payment without a Tax Deduction.
		
	(i)
	If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (g)(ii) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender's Commitment(s) or its participation in any Loan unless the Lender otherwise agrees.

		
	(j)
	A Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Agent for delivery to the relevant Lender.

		
	(k)
	A UK Non-Bank Lender shall promptly notify the Company and the Agent if there is any change in the position from that set out in the Tax Confirmation.

		
	12.3
	Tax indemnity

		
	(a)
	The Company shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

		
	(b)
	Paragraph (a) above shall not apply:

		
	(i)
	with respect to any Tax assessed on a Finance Party:

		
	(A)
	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

- 48-

		
	(B)
	under the law of the jurisdiction in which that Finance Party's Facility Office is located in respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or
		
	(ii)
	to the extent a loss, liability or cost:

		
	(A)
	is compensated for by an increased payment under Clause 12.2 (Tax gross-up); 

		
	(B)
	would have been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 12.2 (Tax gross-up) applied; or

		
	(C)
	relates to a FATCA Deduction required to be made by a Party.

		
	(c)
	A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Company.

		
	(d)
	A Protected Party shall, on receiving a payment from an Obligor under this Clause 12.3, notify the Agent. 

		
	12.4
	Tax Credit

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:
		
	(a)
	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

		
	(b)
	that Finance Party has obtained and utilised that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor.

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	12.5
	Lender status confirmation

Each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:
		
	(a)
	not a Qualifying Lender;

		
	(b)
	a Qualifying Lender (other than a Treaty Lender); or

		
	(c)
	a Treaty Lender.

If a New Lender or Increase Lender fails to indicate its status in accordance with this Clause 12.5 then such New Lender or Increase Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Company).  For the avoidance of doubt, a Transfer Certificate, Assignment Agreement or Increase Confirmation shall not be invalidated by any failure of a Lender to comply with this Clause 12.5.
		
	12.6
	Stamp taxes

The Company shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.
		
	12.7
	VAT

		
	(a)
	All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party).

		
	(b)
	If VAT is or becomes chargeable on any supply made by any Finance Party (the "Supplier") to any other Finance Party (the "Recipient") under a Finance Document, and any Party other than the Recipient (the "Relevant Party") is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

- 50-

		
	(i)
	(where the Supplier is the Entity required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

		
	(ii)
	(where the Recipient is the Entity required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

		
	(c)
	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

		
	(d)
	Any reference in this Clause 12.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term "representative member" to have the same meaning as in the Value Added Tax Act 1994).

		
	(e)
	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Finance Party's VAT reporting requirements in relation to such supply.

		
	12.8
	FATCA Information

		
	(a)
	Subject to paragraph (c) below, each Party shall, within ten Business Days of a reasonable request by another Party: 

		
	(i)
	confirm to that other Party whether it is:

		
	(A)
	a FATCA Exempt Party; or

		
	(B)
	not a FATCA Exempt Party; 

		
	(ii)
	supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and

- 51-

		
	(iii)
	supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime.

		
	(b)
	If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly. 

		
	(c)
	Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of: 

		
	(i)
	any law or regulation; 

		
	(ii)
	any fiduciary duty; or

		
	(iii)
	any duty of confidentiality. 

		
	(d)
	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

		
	12.9
	FATCA Deduction

		
	(a)
	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

		
	(b)
	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Company and the Agent and the Agent shall notify the other Finance Parties. 

		
	13.
	INCREASED COSTS

		
	13.1
	Increased costs

		
	(a)
	Subject to Clause 13.3 (Exceptions) the Company shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliated Entities as a result of: 

		
	(i)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation after the date of this Agreement; 

- 52-

		
	(ii)
	compliance with any law or regulation made after the date of this Agreement; or

		
	(iii)
	the implementation or application of, or compliance with, Basel III or CRD IV or any law or regulation that implements or applies Basel III or CRD IV,

provided that notwithstanding anything in this Agreement to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, shall in each case be deemed to be have been introduced after the date of this Agreement, regardless of the date enacted, adopted or issued.
		
	(b)
	In this Agreement:

		
	(i)
	"Increased Costs" means:

		
	(A)
	a reduction in the rate of return from the Facility or on a Finance Party's (or its Affiliated Entity's) overall capital;

		
	(B)
	an additional or increased cost; or

		
	(C)
	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Affiliated Entities to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document;
		
	(ii)
	"Basel III" means:

		
	(A)
	the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

		
	(B)
	the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement - Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

		
	(C)
	any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III"; and

- 53-

		
	(iii)
	"CRD IV" means:

		
	(A)
	Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms; and

		
	(B)
	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

		
	13.2
	Increased cost claims

		
	(a)
	A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Company.

		
	(b)
	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

		
	13.3
	Exceptions

		
	(a)
	Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:

		
	(i)
	attributable to a Tax Deduction required by law to be made by an Obligor;

		
	(ii)
	attributable to a FATCA Deduction required to be made by a Party;

		
	(iii)
	compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax indemnity) applied); or

		
	(iv)
	attributable to the wilful breach by the relevant Finance Party or its Affiliated Entities of any law or regulation.

		
	(b)
	In this Clause 13.3, a reference to a "Tax Deduction" has the same meaning given to that term in Clause 12.1 (Definitions).

		
	14.
	OTHER INDEMNITIES

		
	14.1
	Currency indemnity

		
	(a)
	If any sum due from an Obligor under the Finance Documents (a "Sum"), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the "First Currency") in which that Sum is payable into another currency (the "Second Currency") for the purpose of:

		
	(i)
	making or filing a claim or proof against that Obligor;

- 54-

		
	(ii)
	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

that Obligor shall as an independent obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that Entity at the time of its receipt of that Sum.
		
	(b)
	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

		
	14.2
	Other indemnities

The Company shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:
		
	(a)
	the occurrence of any Event of Default;

		
	(b)
	a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 26 (Sharing Among the Finance Parties);

		
	(c)
	funding, or making arrangements to fund, its participation in a Loan requested by a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or

		
	(d)
	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by a Borrower or the Company.

		
	14.3
	Indemnity to the Agent

The Company shall, within three Business Days of demand, indemnify the Agent against: 
		
	(a)
	any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

		
	(i)
	investigating any event which it reasonably believes is a Default; 

		
	(ii)
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised; or

		
	(iii)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; and

- 55-

		
	(b)
	any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 27.11 (Disruption to payment systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents.

		
	15.
	MITIGATION BY THE LENDERS

		
	15.1
	Mitigation

		
	(a)
	Each Finance Party shall, in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in any Facility ceasing to be available or any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax Gross-Up and Indemnities) or Clause 13 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliated Entity or Facility Office.

		
	(b)
	Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

		
	15.2
	Limitation of liability

		
	(a)
	The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation).

		
	(b)
	A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

		
	16.
	COSTS AND EXPENSES

		
	16.1
	Transaction expenses

The Company shall, within three Business Days of demand, pay the Agent and the Arranger the amount of all reasonable and documented costs and expenses (including legal fees) incurred by any of them in connection with the negotiation, preparation, printing, execution and syndication of:
		
	(a)
	this Agreement and any other documents referred to in this Agreement; and

		
	(b)
	any other Finance Documents executed after the date of this Agreement.

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	16.2
	Amendment costs

If (a) an Obligor requests an amendment, waiver or consent; or (b) an amendment is required pursuant to Clause 27.10 (Change of currency), the Company shall, within three Business Days of demand, reimburse the Agent for the amount of all reasonable and documented costs and expenses (including legal fees) incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.
		
	16.3
	Enforcement costs

The Company shall, within three Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

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SECTION 7
GUARANTEE

		
	17.
	GUARANTEE AND INDEMNITY

		
	17.1
	Guarantee and indemnity

The Company irrevocably and unconditionally:
		
	(a)
	guarantees to each Finance Party punctual performance by each Borrower of all that Borrower's obligations under the Finance Documents;

		
	(b)
	undertakes with each Finance Party that whenever a Borrower does not pay any amount when due under or in connection with any Finance Document, the Company shall immediately on demand pay that amount as if it was the principal obligor; and

		
	(c)
	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of a Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by the Company under this indemnity will not exceed the amount it would have had to pay under this Clause 17 if the amount claimed had been recoverable on the basis of a guarantee.

		
	17.2
	Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Borrower under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.
		
	17.3
	Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of the Company under this Clause 17 will continue or be reinstated as if the discharge, release or arrangement had not occurred.
		
	17.4
	Waiver of defences

The obligations of the Company under this Clause 17 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 17 (without limitation and whether or not known to it or any Finance Party) including:
		
	(a)
	any time, waiver or consent granted to, or composition with, any Obligor or other Entity;

		
	(b)
	the release of any other Obligor or any other Entity under the terms of any composition or arrangement with any creditor of any member of the Group;

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	(c)
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other Entity or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

		
	(d)
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other Entity;

		
	(e)
	any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

		
	(f)
	any unenforceability, illegality or invalidity of any obligation of any Entity under any Finance Document or any other document or security; or

		
	(g)
	any insolvency or similar proceedings.

		
	17.5
	Immediate recourse

The Company waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any Entity before claiming from the Company under this Clause 17.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.
		
	17.6
	Appropriations

Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been irrevocably paid in full and the Total Commitments cancelled, each Finance Party (or any trustee or agent on its behalf) may:
		
	(a)
	refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Company shall not be entitled to the benefit of the same; and

		
	(b)
	hold in an interest-bearing suspense account any moneys received from the Company or on account of the Company's liability under this Clause 17.

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	17.7
	Deferral of Company's rights

Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been irrevocably paid in full and the Total Commitments cancelled and unless the Agent otherwise directs, the Company will not exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 17:
		
	(a)
	to be indemnified by a Borrower;

		
	(b)
	to claim any contribution from any other guarantor of any Borrower's obligations under the Finance Documents;

		
	(c)
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

		
	(d)
	to bring legal or other proceedings for an order requiring any Borrower to make any payment, or perform any obligation, in respect of which the Company has given a guarantee, undertaking or indemnity under Clause 17.1 (Guarantee and indemnity);

		
	(e)
	to exercise any right of set-off against any Borrower; and/or

		
	(f)
	to claim or prove as a creditor of any Borrower in competition with any Finance Party.

If the Company receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Borrowers under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 27 (Payment Mechanics).
		
	17.8
	Additional security

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.

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SECTION 8
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

		
	18.
	REPRESENTATIONS

Each Obligor makes the representations and warranties set out in this Clause 18 to each Finance Party.
		
	18.1
	Corporate Existence and Power

It and each of its Subsidiaries:
		
	(a)
	is duly incorporated or organised, validly existing and, to the extent relevant under local law, in good standing under the laws of the jurisdiction of its incorporation;

		
	(b)
	has the power and authority and all governmental licenses, authorisations, consents and approvals to: 

		
	(i)
	execute, deliver and perform its obligations under each Transaction Document to which it is a party; and 

		
	(ii)
	own its assets and carry on its business;

		
	(c)
	is duly qualified as a foreign corporation or company and, to the extent relevant under local law, is licensed and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification or licence; and

		
	(d)
	is in compliance with all Applicable Law, 

except, in the case of paragraph (a) or (b)(i) above with respect to Subsidiaries (other than a Borrower) and in the case of paragraphs (b)(ii), (c) or (d) above, to the extent that any such failure could not reasonably be expected to have a Material Adverse Effect.
		
	18.2
	Corporate Authorisation; no Contravention

The execution, delivery and performance by it of each Transaction Document to which it is a party have been duly authorised by all necessary corporate action, and do not and will not:
		
	(a)
	contravene the terms of any of its Constitutional Documents;

		
	(b)
	conflict with or result in any breach or contravention of, or the creation of any Security under, any document evidencing any material Contractual Obligation to which it is a party or any order, injunction, writ or decree of any Governmental Authority to which it or its property is subject; or

		
	(c)
	violate any Applicable Law.

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	18.3
	Governmental Authorisation

No approval, consent, exemption, authorisation, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by, or enforcement against, it of this Agreement except for those obtained on or before the first Utilisation Date or those the failure of which to obtain would not individually or when taken together reasonably be expected to have a Material Adverse Effect.
		
	18.4
	Binding Effect

Each Transaction Document to which it is a party constitutes its legal, valid and binding obligations, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability.
		
	18.5
	Litigation

		
	(a)
	Except as specifically disclosed in the Company's reports on Form 10-K and 10-Q filed with the SEC through the Form 10-Q for the period ended 30 June 2015, there are no actions, suits, proceedings, claims or disputes pending or, to the best of the knowledge of the Company, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, against it or any of its Subsidiaries or any of their respective properties which:

		
	(i)
	purport to affect or relate to this Agreement or any other Finance Document or any transaction contemplated by any Finance Document; or

		
	(ii)
	if adversely determined, would reasonably be expected to have a Material Adverse Effect.

		
	(b)
	No injunction, writ, temporary restraining order or other order of any nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any other Finance Document or directing that the transactions provided for in any Finance Document not be consummated as provided in the relevant Finance Document.

		
	18.6
	No Default

		
	(a)
	No Default or Event of Default exists or would result from any Obligor incurring any of its Obligations.

		
	(b)
	As of the first Utilisation Date or the Closing Date, as applicable, neither it nor any of its Subsidiaries is in default under or with respect to any Contractual Obligation in any respect which, individually or together with all such defaults, could reasonably be expected to have a Material Adverse Effect or that would, if such default had occurred after the first Utilisation Date or the Closing Date, as applicable, create an Event of Default under Clause 21.8 (Cross Acceleration). 

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	18.7
	ERISA Compliance

		
	(a)
	Each Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable federal or state law. The Company and each ERISA Affiliate has made all required contributions to any Pension Plan and no application for a funding waiver or an extension of any amortisation period pursuant to Section 412 of the Code has been made with respect to any Pension Plan.

		
	(b)
	There are no pending or, to the best of the knowledge of the Company, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect.

		
	(c)
	There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Pension Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect.

		
	(d)
	Neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan or any Multiemployer Plan (other than premiums due and not in default under Section 4007 of ERISA).

		
	18.8
	Use of Proceeds; Margin Regulations

		
	(a)
	The proceeds of the Loans will be used solely for the purposes set out in and permitted by Clauses 3 (Purpose) and 20.17 (Use of Proceeds).

		
	(b)
	Neither it nor any of its Subsidiaries is generally engaged in the business of purchasing or selling Margin Stock or extending credit for the purpose of purchasing or carrying Margin Stock.

		
	18.9
	Title to Properties

		
	(a)
	It and each of its Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of their respective businesses, except for such defects in title as could not, individually or when taken together, have a Material Adverse Effect.

		
	(b)
	As of the first Utilisation Date or the Closing Date, as applicable, its and its Subsidiaries' property is not subject to any Security, other than Security permitted pursuant to Clause 20.11 (Limitation on Security).

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	18.10
	Taxes

		
	(a)
	It and each of its Subsidiaries have filed or have obtained extensions from filing all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable in connection therewith, except (i) those which are subject to open tax audits or are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP or (ii) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

		
	(b)
	There is no proposed tax assessment against it or any of its Subsidiaries that would, if made, have a Material Adverse Effect.

		
	18.11
	Financial Condition

		
	(a)
	The audited Consolidated financial statements of the Group dated 31 December 2014 (comprising, the Consolidated balance sheets, and the related Consolidated statements of earnings, comprehensive earnings, shareholders' equity and cash flows) for the financial year ended on such date:

		
	(i)
	were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and

		
	(ii)
	fairly present in all material respects the financial condition of the Group as of the date thereof and results of operations for the period covered thereby.

		
	(b)
	The audited Consolidated financial statements of the Group dated 31 December 2014 and the Company's Form 10-Q filed with the SEC for the financial quarter ending 30 June 2015 show all material indebtedness and other liabilities, direct or contingent, of the Company and its Consolidated Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and Contingent Obligations as required to be disclosed under the applicable rules and regulations promulgated or approved by the SEC.

		
	(c)
	Since 31 December 2014, there has been no Material Adverse Effect.

		
	18.12
	Environmental Matters

The Company conducts in the ordinary course of its business a review of the effect of existing Environmental Laws and existing Environmental Claims on the business, operations and properties of the Group, and as a result thereof it has reasonably concluded that such existing Environmental Laws and existing Environmental Claims could not, individually or when taken together, reasonably be expected to have a Material Adverse Effect.

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	18.13
	Regulated Entities

No Obligor, Person controlling the Company or any Subsidiary, is an "Investment Company" within the meaning of the Investment Company Act of 1940. The Company is not subject to regulation under the Federal Power Act, the Interstate Commerce Act, any state public utilities code, or any other federal or state statute or regulation limiting its ability to incur Indebtedness.
		
	18.14
	No Burdensome Restrictions

Neither it nor any of its Subsidiaries is a party to or bound by any Contractual Obligation, or subject to any restriction in any Constitutional Document, or any Applicable Law, which could reasonably be expected to have a Material Adverse Effect.
		
	18.15
	Subsidiaries

As of the first Utilisation Date or the Closing Date, as applicable, the Company has no Subsidiaries other than those specifically disclosed in Schedule 9 (Subsidiaries) and has no material equity investments in any other corporation or entity.
		
	18.16
	Insurance

Its and its Subsidiaries' property are insured with financially sound and reputable insurance companies which are not Affiliates of the Company, in such amounts, with such deductibles and covering such risks as the Company may reasonably deem necessary (it being understood that the Company may self-insure against certain risks to the extent reasonable or customary for companies similarly situated).
		
	18.17
	Full Disclosure

None of the representations or warranties made by it in this Agreement or any other Finance Document as of the date such representations and warranties are made or deemed made, and none of the statements contained in any exhibit, report, statement or certificate furnished by or on behalf of it or any of its Subsidiaries in connection with any Finance Document (including the offering and disclosure materials delivered by or on behalf of the Company to the Lenders prior to the first Utilisation Date or the Closing Date, as applicable), contains any untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they are made, not misleading as of the time when made or delivered.
		
	18.18
	Sanctions; Anti-Terrorism Laws

		
	(a)
	Neither it nor any of its Subsidiaries (i) is a Sanctioned Person, or (ii) engages in any activity that is contrary to or proscribed under European Union, UK, UN or U.S. sanctions and as a result could trigger a designation under existing sanctions.  No part of the proceeds of any Loan will be used directly or indirectly to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country, to the extent this would be prohibited under European Union, UK, UN and/or U.S. sanctions for any Finance Party or any member of the Group.

- 65-

		
	(b)
	Neither the making of any Loans nor the use of the proceeds of any Loans, will violate the PATRIOT Act, the Trading with the Enemy Act or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or U.S. export control regulations maintained by the United States Department of Commerce ("Commerce") or any enabling legislation or executive order relating thereto, or any legislation or regulations in force in the UK for the purposes of enforcing sanctions implemented or administered by the European Union, Her Majesty's Treasury, the Department for Business, Innovation and Skills or the United Nations Security Council.

		
	(c)
	It and its Subsidiaries are in compliance in all material respects with the PATRIOT Act.

		
	18.19
	Anti-corruption law

Each member of the Group has instituted and maintained policies and procedures designed to promote and achieve compliance with applicable anti-corruption laws.  
		
	18.20
	Camelot Acquisition

		
	(a)
	The Camelot Acquisition will comply with all applicable legal and regulatory requirements, except for non-compliances that, when taken together, would not reasonably be expected to have a Material Adverse Effect.

		
	(b)
	No governmental, regulatory and other consent or approval is required for the completion of the Camelot Acquisition other than (i) consents and approvals that have been, or prior to the completion of the Camelot Acquisition will be, duly obtained or duly waived and (ii) consents and approvals that, if not obtained, would not reasonably be expected to have a Material Adverse Effect.

		
	(c)
	To its knowledge, the representations and warranties of the Vendor in the Acquisition Agreement are true and correct in all material respects, except as disclosed in the Acquisition Documents or for inaccuracies therein that would not, pursuant to the terms of the Acquisition Agreement, permit the Original Borrower to terminate its obligations under the Acquisition Agreement.

		
	(d)
	The Acquisition Documents contain all the terms of the Camelot Acquisition.

		
	18.21
	Times when representations made

		
	(a)
	All the representations and warranties in this Clause 18 are made by each Original Obligor on the date of this Agreement and on the Completion Date.

		
	(b)
	Any representation or warranty is, to the extent it relates to the Target or any of its Subsidiaries, made solely to the knowledge of the Company after reasonable enquiry. 

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	(c)
	The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on:

		
	(i)
	the date of each Utilisation Request, each Utilisation Date and the first day of each Interest Period; and

		
	(ii)
	in the case of the Additional Borrower, the day on which the Target becomes (or it is proposed that the Target becomes) the Additional Borrower.

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	19.
	INFORMATION UNDERTAKINGS

The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.
		
	19.1
	Financial Statements

		
	(a)
	The Company shall deliver to the Agent, in form and detail satisfactory to the Agent and the Majority Lenders, with sufficient copies for each Lender:

		
	(i)
	as soon as they become available, but in any event not later than 90 days after the end of each financial year:

		
	(A)
	a copy of the audited Consolidated balance sheet of the Group as at the end of such year and the related Consolidated statements of earnings, comprehensive earnings, shareholders' equity and cash flows for such year, setting out in each case in comparative form the figures for the previous financial year, and accompanied by the opinion of Ernst & Young LLP or another nationally-recognised independent public accounting firm (the "Independent Auditor") which report (x) shall state that such Consolidated financial statements present fairly the financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior years and (y) shall not be qualified or limited because of a restricted or limited examination by the Independent Auditor of any material portion of the records of any member of the Group; and

		
	(B)
	a copy of the audited financial statements of each Borrower as of the end of such year setting out in comparative form the figures for the previous financial year and accompanied by an opinion of the relevant Borrower's auditors that such financial statements present fairly the financial position for the periods indicated in conformity with UK GAAP applied on a basis consistent with prior years (which statement shall not be qualified or limited because of a restricted or limited examination by the relevant Borrower's auditors of any material portion of the records of the relevant Borrower); and 

		
	(ii)
	as soon as they become available, but in any event not later than 45 days after the end of each of the first three financial quarters of each financial year, a copy of the unaudited Consolidated balance sheet of the Group as of the end of such quarter and the related Consolidated statements of income, shareholders' equity and cash flows for the period commencing on the first day and ending on the last day of such quarter, and certified by a Responsible Officer as fairly presenting, in accordance with GAAP (subject to ordinary, good faith year-end audit adjustments), the financial position and the results of operations of the Group.

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	(b)
	So long as the Company is required to make filings of Forms 10-K and 10-Q with the SEC, the delivery of such Forms 10-K and 10-Q to the Agent and each Lender within the time periods set out above shall satisfy the requirements of paragraphs (a)(i)(A) and (a)(ii) above (it being agreed that the requirements of this paragraph (b) may be satisfied by the Company making available to the Agent and the Lenders its applicable quarterly and annual reports on Forms 10-Q and 10-K to the extent that the Company notifies the Lenders within the time period set out above that it is available to them on EDGAR).

		
	19.2
	Certificates; Other Information

The Company shall supply to the Agent and in sufficient copies for the Lenders:
		
	(a)
	with each set of financial statements delivered pursuant to paragraph (a)(i) of Clause 19.1 (Financial Statements), a certificate of a Responsible Officer stating that in making the examination necessary for those financial statements no knowledge was obtained of any Default or Event of Default, except as specified in such certificate;

		
	(b)
	promptly, copies of all financial statements and reports that the Company sends to its shareholders, and copies of all financial statements and regular, periodical or special reports (including Forms 10K, 10Q and 8K) that the Company or any Subsidiary may make to, or file with, the SEC; and

		
	(c)
	promptly, such additional information regarding the business, financial or corporate affairs of any member of the Group as the Agent, at the request of any Lender, may from time to time reasonably request.

		
	19.3
	Use of Websites

		
	(a)
	Documents required to be delivered pursuant to paragraph (a) of Clause 19.1 (Financial Statements) or paragraph (b) of Clause 19.2 (Certificates; Other Information) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date:

		
	(i)
	on which the Company provides notice to the Agent (and the Agent shall promptly notify the Lenders) that such information has been posted on the Company's website on the internet at the website specified in such notice to which each of the Agent and each Lender has access without charge; or

		
	(ii)
	on which such documents are posted on the Company's behalf on DebtX or another similar secure electronic system to which each of the Agent and each Lender has access without charge,

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provided that (x) if any Lender lacks access to the internet or DebtX or the Company is unable to deliver such documents electronically, the Company shall deliver paper copies of such documents to the Agent or such Lender (until a written request to cease delivering paper copies is given by the Agent or such Lender) and (y) the Company shall notify (which may be by facsimile or electronic mail) the Agent (and the Agent shall promptly notify the Lenders) of the posting of any documents.
		
	(b)
	The Agent shall have no obligation to request the delivery of, or to maintain copies of, the documents referred to in the proviso to paragraph (a) above or to monitor compliance by the Company with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

		
	19.4
	Notices

The Company shall notify the Agent and each Lender promptly after a Responsible Officer obtains knowledge of:
		
	(a)
	the occurrence of any Default or Event of Default;

		
	(b)
	any of the following matters that has resulted or may reasonably be expected to result in a Material Adverse Effect:

		
	(i)
	any breach or non-performance of, or any default under, a Contractual Obligation of any member of the Group;

		
	(ii)
	any dispute, litigation, investigation or proceeding between any member of the Group and any Governmental Authority; or 

		
	(iii)
	the commencement of, or any material development in, any litigation or proceeding affecting any member of the Group including pursuant to any applicable Environmental Law;

		
	(c)
	the occurrence of any of the following events affecting the Company or any ERISA Affiliate (but in no event more than ten days after such event provided that the Company shall notify the Agent and each Lender not less than ten days before the occurrence of any event described in paragraph (c)(ii) below), and deliver to the Agent and each Lender a copy of any notice with respect to such event that is filed with a Governmental Authority and any notice delivered by a Governmental Authority to the Company or any ERISA Affiliate with respect to such event:

		
	(i)
	the filing of a notice of intent to terminate a Pension Plan, or the commencement of proceedings by the PBGC to terminate a Pension Plan or a Multiemployer Plan;

		
	(ii)
	a contribution failure with respect to a Pension Plan sufficient to give rise to Security under Section 303(k) of ERISA;

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	(iii)
	an event or condition which could reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;

		
	(iv)
	the adoption of any Pension Plan by the Company or any ERISA Affiliate; or

		
	(v)
	a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganisation; and

		
	(d)
	any material change in accounting policies or financial reporting practices by the Company or any of its Consolidated Subsidiaries to the extent not disclosed in the Company's most recent Form 10-K or Form 10-Q.

Each notice under this Clause 19.4 shall be accompanied by a written statement by a Responsible Officer setting out details of the occurrence referred to therein, and stating what action the Company or any affected Subsidiary proposes to take with respect thereto and at what time. Each notice under paragraph (a) above shall describe in detail all provisions of this Agreement or any other Finance Document that have been breached or violated.
		
	19.5
	Rating

The Company shall notify the Agent of any change in the Debt Rating of the Company within five Business Days of the date upon which such change is announced or publicly made available.
		
	19.6
	"Know Your Customer" Checks

		
	(a)
	If:

		
	(i)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

		
	(ii)
	any change in the status of an Obligor after the date of this Agreement; or

		
	(iii)
	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

requires the Agent or any Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent or such Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent or such Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in this Agreement.

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	(b)
	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

		
	(c)
	If the accession of the Target as the Additional Borrower obliges the Agent or any Lender to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the accession of the Target to this Agreement as the Additional Borrower.

		
	20.
	GENERAL UNDERTAKINGS

The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.
		
	20.1.
	Preservation of Corporate Existence, etc.

Each Obligor shall, and the Company shall ensure that each other member of the Group shall:
		
	(a)
	preserve and maintain in full force and effect its corporate existence and good standing under the laws of its state or jurisdiction of incorporation or organisation, except, in the case of any Subsidiary (other than a Borrower), where the failure to so preserve and maintain its corporate existence and good standing could not reasonably be expected to have a Material Adverse Effect;

		
	(b)
	preserve and maintain in full force and effect all governmental rights, privileges, qualifications, permits, licenses and franchises necessary or desirable in the normal conduct of its business, and, with respect to each Subsidiary, use reasonable efforts, in the ordinary course of business, to preserve its business organisation and business goodwill, except, in each case, (i) in connection with transactions permitted by Clause 20.13 (Consolidations and Mergers) and sales of assets permitted by Clause 20.12 (Disposal of Assets) and (ii) in the case of any Subsidiary, where the failure to so preserve and maintain such rights, privileges, qualifications, permits, licenses and franchises could not reasonably be expected to have a Material Adverse Effect;

		
	(c)
	with respect to each Obligor, use reasonable efforts, in the ordinary course of business, to preserve its business organisation and business goodwill; and

		
	(d)
	preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

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	20.2.
	Maintenance of Property

Each Obligor shall, and the Company shall ensure that each other member of the Group shall, maintain and preserve all its property which is used or useful in its business in good working order and condition, ordinary wear and tear excepted and make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. Each Obligor shall, and the Company shall ensure that each other member of the Group shall, use the standard of care typical in the industry in the operation and maintenance of its facilities.
		
	20.3.
	Insurance

Each Obligor shall, and the Company shall ensure that each other member of the Group shall, maintain with financially sound and reputable independent insurers, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons.
		
	20.4.
	Payment of Obligations

Each Obligor shall, and the Company shall ensure that each other member of the Group shall, pay and discharge as the same shall become due and payable all their respective obligations and liabilities, including:
		
	(a)
	all material tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings and adequate reserves in accordance with GAAP are being maintained by the relevant Obligor or Subsidiary;

		
	(b)
	all lawful claims which, if unpaid, would by law become Security upon its property which would not be permitted under this Agreement; and

		
	(c)
	at any time, all material Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness.

		
	20.5.
	Compliance with Laws

Each Obligor shall, and the Company shall ensure that each other member of the Group shall, comply in all material respects with all Applicable Laws of any Governmental Authority having jurisdiction over it or its business (including the Federal Fair Labor Standards Act), except (a) such as may be contested in good faith or as to which a bona fide dispute may exist or (b) where the failure to be in compliance, individually or when taken together, would not reasonably be expected to have a Material Adverse Effect.

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	20.6.
	Compliance with ERISA

The Company shall, and shall cause each of its ERISA Affiliates to maintain each Pension Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and any other applicable federal or state law.
		
	20.7.
	Inspection of Property and Books and Records

		
	(a)
	Each Obligor shall, and the Company shall ensure that each other member of the Group shall, maintain proper books of record and account, in which full, true and correct entries in accordance with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Obligor and such Subsidiary.

		
	(b)
	While an Event of Default is continuing, each Obligor shall, and the Company shall ensure that each other member of the Group shall, permit representatives and independent contractors of the Agent or any Lender to visit and inspect any of their respective properties, to examine their respective corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants, all at the expense of the Company and at any time during normal business hours without advance notice.

		
	20.8.
	Environmental Laws

Except with respect to any matters that, individually or when taken together, would not reasonably be expected to have a Material Adverse Effect, each Obligor shall, and the Company shall ensure that each other member of the Group shall, conduct its operations and keep and maintain its property in a manner which complies with all Environmental Laws.
		
	20.9.
	Sanctions, PATRIOT Act Compliance

Each Obligor shall, and the Company shall ensure that each other member of the Group shall:
		
	(a)
	not do business in a Sanctioned Country or with a Sanctioned Person in violation of the economic sanctions and embargoes administered by OFAC or Commerce, the European Union, Her Majesty's Treasury, the Department for Business, Innovation and Skills or the United Nations Security Council;

		
	(b)
	not engage in any activity that is contrary to or proscribed under European Union, UK, UN or U.S. sanctions and as a result could trigger a designation under existing sanctions; and

 
		
	(c)
	provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Agent or any Lender in order to assist the Agent and the Lenders in maintaining compliance with the PATRIOT Act.

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	20.10.
	Claims Pari Passu

Each Obligor shall take from time to time all actions that are necessary to cause the claims of the Finance Parties under the Finance Documents to rank at least pari passu with the claims of such Obligor's other unsecured and unsubordinated creditors, other than claims that are preferred by applicable law.
		
	20.11.
	Limitation on Security

		
	(a)
	No Obligor will, and the Company shall ensure that no other member of the Group will create, assume, incur or permit to exist any Security upon or with respect to any property or assets, whether present or future.

		
	(b)
	Paragraph (a) above does not apply to:

		
	(i)
	Security in respect of property acquired or constructed by a member of the Group after the Closing Date, which is created at the time of or within 180 days after acquisition or completion of construction of such property to secure Indebtedness assumed or incurred to finance all or any part of the purchase price or cost of construction of such property, provided that in any such case:

		
	(A)
	no such Security shall extend to or cover any other property of the relevant member of the Group; and

		
	(B)
	the aggregate principal amount of Indebtedness secured by all such Security in respect of any such property shall not exceed the cost of such property and any improvements then being financed;

		
	(ii)
	Security in respect of property acquired by any member of the Group after the Closing Date, existing on such property at the time of the acquisition of that asset (and not created in anticipation of the acquisition of that asset), or in the case of any Person that after the Closing Date becomes a Subsidiary or is consolidated with or merged with or into an Obligor or a Subsidiary or sells, leases or otherwise disposes of all or substantially all of its property to an Obligor or a Subsidiary, Security existing at the time such Person becomes a Subsidiary or is so consolidated or merged or effects such sale, lease or other disposition of property (and not created in anticipation of such transaction), provided that in any such case no such Security shall extend to or cover any other property of the Obligor or such Subsidiary, as the case may be;

		
	(iii)
	Security securing Indebtedness owed by a Subsidiary to the Company or to a Wholly-Owned Subsidiary;

		
	(iv)
	Security for taxes or other governmental charges not at the time in default or thereafter payable without penalty or being contested in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves;

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	(v)
	Security on property of the Target and its Subsidiaries securing Indebtedness that will be paid on the first Utilisation Date; and

		
	(vi)
	Security not otherwise permitted by paragraphs (i) to (v) above securing additional Indebtedness of any member of the Group; provided that at the time of the incurrence of any such Indebtedness, the aggregate principal amount of all Indebtedness (including obligations of such member of the Group as lessee under any Capital Leases, taken at the capitalised amount thereof accounted for as debt in accordance with GAAP) of the Group secured by Security permitted solely by this paragraph (vi) shall not exceed 20% of Consolidated Tangible Net Worth.

For the purposes of paragraphs (i) and (ii) above, any Security existing in respect of property at the time such property is acquired or in respect of property of a Person at the time such Person is acquired, consolidated or merged with or into the Company or a Subsidiary shall be deemed to have been created at that time.
		
	20.12.
	Disposal of Assets

No Obligor shall, and the Company shall ensure that no other member of the Group shall, directly or indirectly, make any sale, transfer, lease (as lessor), loan or other disposition of any property or assets (a "Disposal"), other than:
		
	(a)
	Disposals in the ordinary course of business, including sales of real estate consistent with its past practices;

		
	(b)
	Disposals of property or assets by a Subsidiary to the Company or a Wholly-Owned Subsidiary; or

		
	(c)
	other Disposals, provided that in each case: 

		
	(i)
	immediately before and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, and

		
	(ii)
	the aggregate net book value of the property or assets disposed of in such Disposal and all other Disposals by the Group during the term of this Agreement does not exceed 35% of Consolidated Tangible Net Worth.

		
	20.13.
	Consolidations and Mergers

No Obligor shall, and the Company shall ensure that no other member of the Group shall, consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, except:
		
	(a)
	the Company may consolidate with or merge with any Person (other than a Borrower) provided that the Company is the surviving or acquiring party in such transaction; and

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	(b)
	any Subsidiary of the Company may:

		
	(i)
	consolidate with or merge with or convey or transfer all or substantially all of its assets to the Company (provided that the Company shall be the surviving or acquiring party) or a then-existing Wholly-Owned Subsidiary (provided that such Wholly-Owned Subsidiary shall be the surviving or acquiring party); or

		
	(ii)
	consolidate with or merge with any other Person provided that such Subsidiary is the surviving or acquiring party in such transaction; or

		
	(iii)
	transfer all or substantially all of its assets to any Person in a Disposal permitted by Clause 20.12 (Disposal of Assets),

provided that in any transaction involving a Borrower, the relevant Borrower shall be the surviving or acquiring party.
		
	20.14.
	Loans and Investments

No Obligor shall, and the Company shall ensure that no other member of the Group shall, purchase or acquire, or make any commitment for, any share capital, equity interest, or any obligations or other securities of, or any interest in, any Person, or make or commit to make any Acquisitions, or make or commit to make any advance, loan, extension of credit or capital contribution to or any other investment in, any Person including any Affiliate of the Company (together, "Investments"), except for:
		
	(a)
	Investments held by any member of the Group in the form of cash equivalents or short term marketable securities;

		
	(b)
	extensions of credit in the nature of accounts receivable or notes receivable arising from the sale or lease of goods or services in the ordinary course of business;

		
	(c)
	extensions of credit by the Company to any of its Wholly-Owned Subsidiaries or by any of its Wholly-Owned Subsidiaries to another of its Wholly-Owned Subsidiaries;

		
	(d)
	pledges or deposits as required in the ordinary course of business in connection with workmen's compensation, unemployment insurance and other social security legislation;

		
	(e)
	advances, loans or extensions of credit in the ordinary course of business to employees;

		
	(f)
	Investments incurred in order to consummate Permitted Acquisitions;

		
	(g)
	the purchase by the Company of its share capital (subject to the restrictions in Clause 20.17 (Use of Proceeds)); and

		
	(h)
	Investments not otherwise permitted by paragraphs (a) to (g) above not at any time exceeding 50% of Consolidated Tangible Net Worth.

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	20.15.
	Limitation on Subsidiary Indebtedness

The Company shall ensure that none of its Subsidiaries shall create, assume, incur, guarantee or otherwise become liable in respect of any Indebtedness except:
		
	(a)
	Indebtedness secured by Security permitted by paragraphs (b)(i) to (b)(iii) of Clause 20.11 (Limitation on Security),

		
	(b)
	Indebtedness owing to the Company or a Wholly-Owned Subsidiary; and 

		
	(c)
	Indebtedness not otherwise permitted by paragraphs (a) and (b) above provided that at the time of the incurrence of any such Indebtedness, the aggregate unpaid principal amount of all Indebtedness of Subsidiaries permitted solely by this paragraph (c) shall not exceed 50% of Consolidated Tangible Net Worth.

For the purposes of this Clause 20.15, a Subsidiary shall be deemed to have incurred Indebtedness in respect of any obligation previously owed to the Company or to a Wholly-Owned Subsidiary on the date the obligee ceases for any reason to be the Company or a Wholly-Owned Subsidiary, and a Person that hereafter becomes a Subsidiary shall be deemed at that time to have incurred all of its outstanding Indebtedness.
		
	20.16.
	Transactions with Affiliates

No Obligor shall, and the Company shall ensure that no other member of the Group will, enter into any material transaction with any Affiliate of the Company (other than a Subsidiary), except upon fair and reasonable terms no less favourable to the Company or such Subsidiary than it would obtain in a comparable arm's-length transaction with a Person that is not an Affiliate of the Company.
		
	20.17.
	Use of Proceeds

		
	(a)
	The Company shall not permit more than 25% of the value of the assets of the Group that are subject to any arrangement under this Agreement restricting the ability of a member of the Group to sell, pledge or otherwise dispose of assets to consist of Margin Stock.

		
	(b)
	No Borrower shall, and the Company shall ensure that no other member of the Group will, use any portion of any Loan proceeds, directly or indirectly, for any purpose that entails a violation of any of the regulations of the FRB, including Regulations T, U and X.

		
	(c)
	No Obligor shall cause or permit the proceeds of any Utilisation to be used, directly or indirectly, to make a loan or other advance to, invest in or contribute to or otherwise support the activities or business with or of any Sanctioned Country or Sanctioned Person, to the extent this would be prohibited under European Union, UK, UN and/or U.S. sanctions for any Finance Party or any member of the Group.

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	20.18.
	ERISA

The Company shall not, and shall not permit any of its ERISA Affiliates to:
		
	(a)
	engage in a prohibited transaction or violation of the fiduciary responsibility rules with respect to any Pension Plan which has resulted or could reasonably be expected to result in liability of the Company in an aggregate amount in excess of $500,000; or

		
	(b)
	engage in a transaction that could be subject to Section 4069 or 4212(c) of ERISA.

		
	20.19.
	Change in Business

No Obligor shall, and the Company shall ensure that no other member of the Group will, engage in any material line of business substantially different from that carried on by the Group on the date of this Agreement (after giving effect to the Camelot Acquisition).
		
	20.20.
	Restriction on Subsidiary Dividends

No Obligor shall, and the Company shall ensure that no other member of the Group will, enter into any agreement which would restrict the declaration or payment of dividends or similar distributions by any Subsidiary to the Company or another Subsidiary.
		
	20.21.
	Acquisition Documents

No Obligor shall permit any amendment, supplement or other modification to, or waiver, consent or other similar agreement in relation to any provision of, the Acquisition Documents in a manner that would reasonably be expected to adversely affect the Agent or the Lenders in any material respect.
		
	21.
	EVENTS OF DEFAULT

Each of the events or circumstances set out in this Clause 21 is an Event of Default (save for Clause 21.18 (Acceleration)).
		
	21.1
	Non-Payment

A Borrower fails to pay:
		
	(a)
	when and as required to be paid under this Agreement, any amount of principal of any Loan; or

		
	(b)
	within five days after the same becomes due, any interest, fee or any other amount payable under this Agreement or under any other Finance Document.

		
	21.2
	Specific Representations or Warranties

Any representation by an Obligor made or deemed made under any of paragraph (a) of Clause 18.1 (Corporate Existence and Power), paragraph (b) of Clause 18.6 (No Default), Clause 18.7 (ERISA Compliance), Clause 18.8 (Use of Proceeds; Margin Regulations) or Clause 18.13 (Regulated Entities) is incorrect in any material respect on or as of the date made or deemed made.

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	21.3
	Sanctions; Anti-Terrorism Laws; Binding Effect; Anti-corruption law 

		
	(a)
	Any representation by an Obligor made or deemed made under any of Clause 18.4 (Binding Effect), Clause 18.18 (Sanctions; Anti-Terrorism Laws) or Clause 18.19 (Anti-corruption law) is incorrect in any material respect on or as of the date made or deemed made. 

		
	(b)
	No Event of Default under paragraph (a) above will occur if the event or circumstance giving rise to the misrepresentation is capable of remedy and is remedied within 30 days from the earlier of (i) the date upon which a Responsible Officer knows or reasonably should have known of such misrepresentation or (ii) the date upon which written notice of such misrepresentation is given to the relevant Obligor by the Agent or any Lender.

		
	21.4
	Other Representations or Warranties

		
	(a)
	Any other representation or warranty by an Obligor made or deemed made under this Agreement or in any other Finance Document, or that is contained in any certificate, document or financial or other statement by an Obligor, any other Subsidiary or any Responsible Officer supplied at any time under this Agreement or any other Finance Document, is incorrect in any material respect on or as of the date made or deemed made.

		
	(b)
	No Event of Default under paragraph (a) above will occur if the event or circumstance giving rise to the misrepresentation is capable of remedy and is remedied within 45 days from the earlier of (i) the date upon which a Responsible Officer knows or reasonably should have known of such misrepresentation or (ii) the date upon which written notice of such misrepresentation is given to the relevant Obligor by the Agent or any Lender.

		
	21.5
	Specific Defaults

An Obligor fails to perform or observe any term, covenant or agreement contained in any of paragraph (a) of Clause 19.4 (Notices), paragraph (a) of Clause 20.1 (Preservation of Corporate Existence, etc.) or any of Clauses 20.11 (Limitation on Security) to 20.21 (Acquisition Documents). 
		
	21.6
	Sanctions, PATRIOT Act Compliance 

An Obligor fails to perform or observe any term, covenant or agreement contained in Clause 20.9 (Sanctions, PATRIOT Act Compliance) and such default continues unremedied for a period of 30 days from the earlier of (a) the date upon which a Responsible Officer knows or reasonably should have known of such failure or (b) the date upon which written notice of such default is given to the relevant Obligor by the Agent or any Lender.

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	21.7
	Other Defaults

An Obligor fails to perform or observe any other applicable term or covenant contained in this Agreement or any other Finance Document, and such default continues unremedied for a period of 45 days from the earlier of (a) the date upon which a Responsible Officer knows or reasonably should have known of such failure or (b) the date upon which written notice of such default is given to the relevant Obligor by the Agent or any Lender.
		
	21.8
	Cross Acceleration

The Company:
		
	(a)
	fails to make any payment in respect of any Indebtedness or Contingent Obligation having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $100,000,000 when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after the applicable grace or notice period, if any, specified in the relevant document on the date of such failure; or

		
	(b)
	fails to perform or observe any other condition or covenant, or any other event shall occur or condition exist, under any agreement or instrument relating to any such Indebtedness or Contingent Obligation, and such failure continues after the applicable grace or notice period, if any, specified in the relevant document if the effect of such failure, event or condition is that such Indebtedness is declared to be due and payable prior to its stated maturity, or such Contingent Obligation becomes payable or cash collateral in respect thereof is demanded.

		
	21.9
	Insolvency; Voluntary Proceedings

An Obligor:
		
	(a)
	ceases or fails to be solvent, or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any, whether at stated maturity or otherwise;

		
	(b)
	voluntarily ceases to conduct its business in the ordinary course;

		
	(c)
	commences any Insolvency Proceeding with respect to itself; or 

		
	(d)
	takes any action to effectuate or authorise any of the foregoing.

		
	21.10
	Involuntary Proceedings

		
	(a)
	Any involuntary Insolvency Proceeding is commenced or filed against an Obligor, or any writ, judgment, warrant of attachment, execution or similar process, is issued or levied against a substantial part of an Obligor's property, and any such proceeding or petition shall not be dismissed, or such writ, judgment, warrant of attachment, execution or similar process shall not be released, vacated or fully bonded within 60 days after commencement, filing or levy;

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	(b)
	an Obligor admits the material allegations of a petition against it in any Insolvency Proceeding, or an order for relief (or similar order under the laws of any jurisdiction) is ordered in any Insolvency Proceeding; or

		
	(c)
	an Obligor acquiesces in the appointment of a receiver, administrative receiver, trustee, custodian, administrator, conservator, liquidator, mortgagee in possession (or agent therefor), or other similar Person for itself or a substantial portion of its property or business.

		
	21.11
	ERISA

		
	(a)
	The Company or an ERISA Affiliate incurs liability under Title IV of ERISA with respect to a Pension Plan, a Multiemployer Plan or the PBGC in an aggregate amount in excess of $5,000,000.

		
	(b)
	A contribution failure occurs with respect to a Pension Plan sufficient to give rise to Security under Section 303(k) of ERISA.

		
	21.12
	Monetary Judgments

One or more judgments, decrees or arbitration awards is entered against an Obligor involving in the aggregate liability (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), as to any single or related series of transactions, incidents or conditions, of $100,000,000 or more, and the same shall remain unsatisfied, unvacated and unstayed pending appeal for a period of 60 days after the entry thereof.
		
	21.13
	Non-Monetary Judgments

Any non-monetary judgment, order or decree is entered against an Obligor that has had or would reasonably be expected to have a Material Adverse Effect, and for a period of 60 consecutive days no stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise is in effect.
		
	21.14
	Change of Control

Any Change of Control occurs.
		
	21.15
	Ownership of Borrower

The Company ceases to own, directly or indirectly, at least 100% of the outstanding share capital in any Borrower other than directors' qualifying shares.
		
	21.16
	Unlawfulness

It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents and such default continues unremedied for a period of 30 days from the earlier of (a) the date upon which a Responsible Officer knows or reasonably should have known of such default or (b) the date upon which written notice of such default is given to the relevant Obligor by the Agent or any Lender.

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	21.17
	Repudiation

An Obligor rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a Finance Document.
		
	21.18
	Acceleration 

		
	(a)
	If prior to the first Utilisation Date, a Specified Event of Default occurs which is continuing, the Agent may on and at any time after the occurrence of such Specified Event of Default which is continuing, and shall if so directed by the Majority Lenders, by notice to the Company cancel the Total Commitments, whereupon they shall immediately be cancelled provided that upon the occurrence of any Specified Event of Default described in Clauses 21.9 (Insolvency; Voluntary Proceedings) or 21.10 (Involuntary Proceedings) (but only in the case of paragraph (a) of Clause 21.10 (Involuntary Proceedings) after the expiry of the 60 day period mentioned in that paragraph), the Total Commitments shall automatically terminate without any further action by the Agent or any Lender.

		
	(b)
	If on or after the first Utilisation Date, an Event of Default occurs which is continuing the Agent may, on and at any time after the occurrence of such Event of Default which is continuing, and shall if so directed by the Majority Lenders, by notice to the Company:

		
	(i)
	cancel the Total Commitments, whereupon they shall immediately be cancelled;

		
	(ii)
	declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by each Obligor;

		
	(iii)
	declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

		
	(iv)
	exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under this Agreement or under Applicable Law, 

provided that upon the occurrence of any Event of Default described in Clauses 21.9 (Insolvency; Voluntary Proceedings) or 21.10 (Involuntary Proceedings) (but only in the case of paragraph (a) of Clause 21.10 (Involuntary Proceedings) after the expiry of the 60 day period mentioned in that paragraph), all of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents shall automatically become due and payable without any further action by the Agent or any Lender.

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SECTION 9
CHANGES TO PARTIES

		
	22.
	CHANGES TO THE LENDERS

		
	22.1
	Assignments and transfers by the Lenders

Subject to this Clause 22, a Lender (the "Existing Lender") may:
		
	(a)
	assign any of its rights; or

		
	(b)
	transfer by novation any of its rights and obligations,

to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").
		
	22.2
	Conditions of assignment or transfer

		
	(a)
	The prior written consent of the Company is required for an assignment or transfer by an Existing Lender, unless the assignment or transfer is made by the Existing Lender:

		
	(i)
	to another Lender or an Affiliated Entity of any Lender; or 

		
	(ii)
	at a time when an Event of Default is continuing.

		
	(b)
	The consent of the Company to an assignment or transfer must not be unreasonably withheld.  The Company will be deemed to have given its consent five Business Days after the Existing Lender has requested it unless consent is expressly refused by the Company within that time.

		
	(c)
	An assignment will only be effective on:

		
	(i)
	receipt by the Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender; and

		
	(ii)
	performance by the Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

		
	(d)
	A transfer will only be effective if the procedure set out in Clause 22.5 (Procedure for transfer) is complied with.

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	(e)
	If:

		
	(i)
	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

		
	(ii)
	as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross-up and Indemnities) or Clause 13 (Increased Costs),

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under that Clause to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. This paragraph (e) shall not apply in relation to Clause 12.2 (Tax gross-up), to a Treaty Lender that has included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (g)(ii)(B) of Clause 12.2 (Tax gross-up) if the Obligor making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender. 
		
	(f)
	Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

		
	22.3
	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of £2,500.
		
	22.4
	Limitation of responsibility of Existing Lenders

		
	(a)
	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

		
	(i)
	the legality, validity, effectiveness, adequacy or enforceability of the Transaction Documents or any other documents;

		
	(ii)
	the financial condition of any Obligor;

		
	(iii)
	the performance and observance by any Obligor of its obligations under the Transaction Documents or any other documents; or

		
	(iv)
	the accuracy of any statements (whether written or oral) made in or in connection with any Transaction Document or any other document,

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and any representations or warranties implied by law are excluded.
		
	(b)
	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

		
	(i)
	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Transaction Document; and

		
	(ii)
	will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

		
	(c)
	Nothing in any Finance Document obliges an Existing Lender to:

		
	(i)
	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 22; or

		
	(ii)
	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Transaction Documents or otherwise.

		
	22.5
	Procedure for transfer

		
	(a)
	Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

		
	(b)
	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

		
	(c)
	Subject to Clause 22.9 (Pro rata interest settlement), on the Transfer Date:

		
	(i)
	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the "Discharged Rights and Obligations");

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	(ii)
	each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

		
	(iii)
	the Agent, the Arranger, the New Lender and the other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

		
	(iv)
	the New Lender shall become a Party as a "Lender".

		
	22.6
	Procedure for assignment

		
	(a)
	Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

		
	(b)
	The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

		
	(c)
	Subject to Clause 22.9 (Pro rata interest settlement), on the Transfer Date:

		
	(i)
	the Existing Lender will assign absolutely to the New Lender the rights under the Finance Documents expressed to be the subject of the assignment in the Assignment Agreement;

		
	(ii)
	the Existing Lender will be released by each Obligor and the other Finance Parties from the obligations owed by it (the "Relevant Obligations") and expressed to be the subject of the release in the Assignment Agreement; and

		
	(iii)
	the New Lender shall become a Party as a "Lender" and will be bound by obligations equivalent to the Relevant Obligations.

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	(d)
	Lenders may utilise procedures other than those set out in this Clause 22.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with Clause 22.5 (Procedure for transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 22.2 (Conditions of assignment or transfer).

		
	22.7
	Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, an Assignment Agreement or an Increase Confirmation send to the Company a copy of that Transfer Certificate, Assignment Agreement or Increase Confirmation.
		
	22.8
	Security over Lenders' rights

In addition to the other rights provided to Lenders under this Clause 22.8, each Lender may without consulting with or obtaining consent from any Obligor at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:
		
	(a)
	any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

		
	(b)
	in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

except that no such charge, assignment or Security shall:
		
	(i)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

		
	(ii)
	require any payments to be made by an Obligor other than or in excess of, or grant to any Entity any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

		
	22.9
	Pro rata interest settlement

		
	(a)
	If the Agent has notified the Lenders that it is able to distribute interest payments on a "pro rata basis" to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 22.5 (Procedure for transfer) or any assignment pursuant to Clause 22.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

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	(i)
	any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date ("Accrued Amounts") and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at six Monthly intervals after the first day of that Interest Period); and

		
	(ii)
	the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:

		
	(A)
	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

		
	(B)
	the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 22.9, have been payable to it on that date, but after deduction of the Accrued Amounts.

		
	(b)
	In this Clause 22.9 references to "Interest Period" shall be construed to include a reference to any other period for accrual of fees.

		
	23.
	CHANGES TO THE OBLIGORS

		
	23.1
	Assignments and transfers by Obligors

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.
		
	23.2
	Additional Borrower

		
	(a)
	Subject to compliance with the provisions of paragraph (c) of Clause 19.6 ("Know Your Customer" Checks), the Company may request that the Target becomes the Additional Borrower. The Target shall become the Additional Borrower if:

		
	(i)
	the Company delivers to the Agent a duly completed and executed Accession Letter;

		
	(ii)
	the Company confirms that no Default is continuing or would occur as a result of the Target becoming the Additional Borrower; and

		
	(iii)
	the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent) in relation to the Target, each in form and substance satisfactory to the Agent.

		
	(b)
	The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent).

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	(c)
	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (b) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	23.3
	Repetition of Representations

Delivery of the Accession Letter constitutes confirmation by the Target that the Repeating Representations are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

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SECTION 10
THE FINANCE PARTIES

		
	24.
	ROLE OF THE AGENT, THE ARRANGER AND THE REFERENCE BANKS

		
	24.1
	Appointment of the Agent

		
	(a)
	Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

		
	(b)
	Each of the Arranger and the Lenders authorises the Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		
	24.2
	Instructions

		
	(a)
	The Agent shall:

		
	(i)
	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

		
	(A)
	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and

		
	(B)
	in all other cases, the Majority Lenders; and

		
	(ii)
	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above.

		
	(b)
	The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion.  The Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested.

		
	(c)
	Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

		
	(d)
	The Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

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	(e)
	In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

		
	(f)
	The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or arbitration proceedings relating to any Finance Document.

		
	24.3
	Duties of the Agent

		
	(a)
	The Agent's duties under the Finance Documents are solely mechanical and administrative in nature.

		
	(b)
	Subject to paragraph (c) below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

		
	(c)
	Without prejudice to Clause 22.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company), paragraph (b) above shall not apply to any Transfer Certificate, any Assignment Agreement or any Increase Confirmation.

		
	(d)
	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

		
	(e)
	If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

		
	(f)
	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arranger) under this Agreement, it shall promptly notify the other Finance Parties.

		
	(g)
	The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

		
	24.4
	Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.
		
	24.5
	No fiduciary duties

		
	(a)
	Nothing in any Finance Document constitutes the Agent or the Arranger as a trustee or fiduciary of any other Entity.

		
	(b)
	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

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	24.6
	Business with the Group

The Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.
		
	24.7
	Rights and discretions

		
	(a)
	The Agent may:

		
	(i)
	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised; 

		
	(ii)
	assume that:

		
	(A)
	any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance Documents; and

		
	(B)
	unless it has received notice of revocation, that those instructions have not been revoked; and

		
	(iii)
	rely on a certificate from any Entity:

		
	(A)
	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that Entity; or

		
	(B)
	to the effect that such Entity approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.
		
	(b)
	The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

		
	(i)
	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 21.1 (Non-Payment));

		
	(ii)
	any right, power, authority or discretion vested in any Party or any group of Lenders has not been exercised; and

		
	(iii)
	any notice or request made by the Company (other than a Utilisation Request or Selection Notice) is made on behalf of and with the consent and knowledge of all the Obligors.

		
	(c)
	The Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

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	(d)
	Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be necessary.

		
	(e)
	The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any Entity, any diminution in value or any liability whatsoever arising as a result of its so relying.

		
	(f)
	The Agent may act in relation to the Finance Documents through its officers, employees and agents and the Agent shall not:

		
	(i)
	be liable for any error of judgment made by any such Entity; or

		
	(ii)
	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part of any such Entity,

unless such error or such loss was directly caused by the Agent's gross negligence or wilful misconduct.
		
	(g)
	Unless a Finance Document expressly provides otherwise, the Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

		
	(h)
	Without prejudice to the generality of paragraph (g) above, the Agent: 

		
	(i)
	may disclose; and 

		
	(ii)
	on the written request of the Company, or the Majority Lenders shall, as soon as reasonably practicable, disclose,

the identity of a Defaulting Lender to the Company and to the other Finance Parties.
		
	(i)
	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger is obliged to do or omit to do anything if it would, or might in its reasonable opinion, constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

		
	(j)
	Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

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	24.8
	Responsibility for documentation

Neither the Agent nor the Arranger is responsible or liable for:
		
	(a)
	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, an Obligor or any other Entity in or in connection with any Finance Document or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

		
	(c)
	any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

		
	24.9
	No duty to monitor

The Agent shall not be bound to enquire:
		
	(a)
	whether or not any Default has occurred;

		
	(b)
	as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

		
	(c)
	whether any other event specified in any Finance Document has occurred.

		
	24.10
	Exclusion of liability

		
	(a)
	Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent), the Agent will not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

		
	(i)
	any damages, costs or losses to any Entity, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct;

		
	(ii)
	exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document other than by reason of its gross negligence or wilful misconduct; or

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	(iii)
	without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses to any Entity, any diminution in value or any liability whatsoever arising as a result of:

		
	(A)
	any act, event or circumstance not reasonably within its control; or

		
	(B)
	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.
		
	(b)
	No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Transaction Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.4 (Third party rights) and the provisions of the Third Parties Act.

		
	(c)
	The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

		
	(d)
	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out: 

		
	(i)
	any "know your customer" or other checks in relation to any Entity; or

		
	(ii)
	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender,

on behalf of any Lender and each Lender confirms to the Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Arranger.

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	(e)
	Without prejudice to any provision of any Finance Document excluding or limiting the Agent's liability, any liability of the Agent arising under or in connection with any Finance Document shall be limited to the amount of actual loss which has been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any time which increase the amount of that loss.  In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent has been advised of the possibility of such loss or damages.

		
	24.11
	Lenders' indemnity to the Agent

		
	(a)
	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 27.11 (Disruption to payment systems etc.), notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

		
	(b)
	Subject to paragraph (c) below, the Company shall immediately on demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to paragraph (a) above.

		
	(c)
	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Agent to an Obligor.

		
	24.12
	Resignation of the Agent

		
	(a)
	The Agent may resign and appoint one of its Affiliated Entities acting through an office in the United Kingdom as successor by giving notice to the Lenders and the Company.

		
	(b)
	Alternatively the Agent may resign by giving 30 days' notice to the Lenders and the Company, in which case the Majority Lenders (after consultation with the Company) may appoint a successor Agent.

		
	(c)
	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Company) may appoint a successor Agent (acting through an office in the United Kingdom).

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	(d)
	If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under paragraph (c) above, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 24 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent's normal fee rates and those amendments will bind the Parties.

		
	(e)
	The retiring Agent shall make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.  The Company shall, within three Business Days of demand, reimburse the retiring Agent for the amount of all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing such assistance.

		
	(f)
	The Agent's resignation notice shall only take effect upon the appointment of a successor.

		
	(g)
	Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (e) above), but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 24 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	(h)
	The Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (b) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

		
	(i)
	the Agent fails to respond to a request under Clause 12.8 (FATCA Information) and a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

		
	(ii)
	the information supplied by the Agent pursuant to Clause 12.8 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

		
	(iii)
	the Agent notifies the Company and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

and (in each case) a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.

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	24.13
	Replacement of the Agent

		
	(a)
	After consultation with the Company, the Majority Lenders may, by giving 30 days' notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent by appointing a successor Agent (acting through an office in the United Kingdom).

		
	(b)
	The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

		
	(c)
	The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent.  As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (b) above) but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 24 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

		
	(d)
	Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	24.14
	Confidentiality

		
	(a)
	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

		
	(b)
	If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

		
	24.15
	Relationship with the Lenders

		
	(a)
	Subject to Clause 22.9 (Pro rata interest settlement), the Agent may treat the Entity shown in its records as Lender at the opening of business (in the place of the Agent's principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

		
	(i)
	entitled to or liable for any payment due under any Finance Document on that day; and

		
	(ii)
	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

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unless it has received not less than five Business Days' prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
		
	(b)
	Any Lender may by notice to the Agent appoint an Entity to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 29.6 (Electronic communication)) electronic mail address and/or any other information required to enable the transmission of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address (or such other information), department and officer by that Lender for the purposes of Clause 29.2 (Addresses) and paragraph (a)(ii) of Clause 29.6 (Electronic communication) and the Agent shall be entitled to treat such Entity as the Entity entitled to receive all such notices, communications, information and documents as though that Entity were that Lender.

		
	24.16
	Credit appraisal by the Lenders

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:
		
	(a)
	the financial condition, status and nature of each member of the Group;

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

		
	(c)
	whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

		
	(d)
	the adequacy, accuracy or completeness of any information provided by the Agent, any Party or by any other Entity under or in connection with any Finance Document, the transactions contemplated by any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

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	24.17
	Agent's management time

Any amount payable to the Agent under Clause 14.3 (Indemnity to the Agent), Clause 16 (Costs and Expenses) and Clause 24.11 (Lenders' indemnity to the Agent) shall include any cost of utilising the Agent's management time or other resources but only to the extent that such cost has been approved in advance in writing by the Company and any such cost will be calculated on the basis of such reasonable daily or hourly rates as may be agreed in advance between the Agent and the Company and notified by the Agent to the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11 (Fees). 
		
	24.18
	Deduction from amounts payable by the Agent

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.
		
	24.19
	Role of Reference Banks

		
	(a)
	No Reference Bank is under any obligation to provide a quotation or any other information to the Agent.

		
	(b)
	No Reference Bank will be liable for any action taken by it under or in connection with any Finance Document, or for any Reference Bank Quotation, unless directly caused by its gross negligence or wilful misconduct.

		
	(c)
	No Party (other than the relevant Reference Bank) may take any proceedings against any officer, employee or agent of any Reference Bank in respect of any claim it might have against that Reference Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or agent of each Reference Bank may rely on this Clause 24.19 subject to Clause 1.4 (Third party rights) and the provisions of the Third Parties Act.

		
	24.20
	Third party Reference Banks

A Reference Bank which is not a Party may rely on Clause 24.19 (Role of Reference Banks), Clause 33.3 (Other exceptions) and Clause 35 (Confidentiality of Funding Rates and Reference Bank Quotations), subject to Clause 1.4 (Third party rights) and the provisions of the Third Parties Act.
		
	25.
	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:
		
	(a)
	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

		
	(b)
	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

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	(c)
	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

		
	26.
	SHARING AMONG THE FINANCE PARTIES

		
	26.1
	Payments to Finance Parties

If a Finance Party (a "Recovering Finance Party") receives or recovers any amount from an Obligor other than in accordance with Clause 27 (Payment Mechanics) (a "Recovered Amount") and applies that amount to a payment due under the Finance Documents then:
		
	(a)
	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

		
	(b)
	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 27 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

		
	(c)
	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 27.6 (Partial payments).

		
	26.2
	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the "Sharing Finance Parties") in accordance with Clause 27.6 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.
		
	26.3
	Recovering Finance Party's rights

On a distribution by the Agent under Clause 26.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

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	26.4
	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:
		
	(a)
	each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the "Redistributed Amount"); and

		
	(b)
	as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

		
	26.5
	Exceptions

		
	(a)
	This Clause 26 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

		
	(b)
	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

		
	(i)
	it notified that other Finance Party of the legal or arbitration proceedings; and

		
	(ii)
	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

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SECTION 11
ADMINISTRATION

		
	27.
	PAYMENT MECHANICS

		
	27.1
	Payments to the Agent

		
	(a)
	On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

		
	(b)
	Payment shall be made to such account in the principal financial centre of the country of that currency and with such bank as the Agent, in each case, specifies.

		
	27.2
	Distributions by the Agent

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 27.3 (Distributions to an Obligor), Clause 27.4 (Clawback and pre-funding) and Clause 24.18 (Deduction from amounts payable by the Agent) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days' notice with a bank specified by that Party in the principal financial centre of the country of that currency.
		
	27.3
	Distributions to an Obligor

The Agent may (with the consent of the Obligor or in accordance with Clause 28 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.
		
	27.4
	Clawback and pre-funding

		
	(a)
	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

		
	(b)
	Unless paragraph (c) below applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

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	(c)
	If the Agent is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:

		
	(i)
	the Borrower to whom that sum was made available shall on demand refund it to the Agent; and

		
	(ii)
	the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

		
	27.5
	Impaired Agent

		
	(a)
	If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 27.1 (Payments to the Agent) may instead either:

		
	(i)
	pay that amount direct to the required recipient(s); or 

		
	(ii)
	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Lender making the payment (the "Paying Party") and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the "Recipient Party" or "Recipient Parties").

In each case such payments must be made on the due date for payment under the Finance Documents. 
		
	(b)
	All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

		
	(c)
	A Party which has made a payment in accordance with this Clause 27.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

		
	(d)
	Promptly upon the appointment of a successor Agent in accordance with Clause 24.13 (Replacement of the Agent), each Paying Party shall (other than to the extent that that Party has given an instruction pursuant to paragraph (e) below) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 27.2 (Distributions by the Agent).

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	(e)
	A Paying Party shall, promptly upon request by a Recipient Party and to the extent: 

		
	(i)
	that it has not given an instruction pursuant to paragraph (d) above; and 

		
	(ii)
	that it has been provided with the necessary information by that Recipient Party, 

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party.
		
	27.6
	Partial payments

		
	(a)
	If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

		
	(i)
	first, in or towards payment pro rata of any unpaid amount owing to the Agent or the Arranger under the Finance Documents;

		
	(ii)
	secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement;

		
	(iii)
	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

		
	(iv)
	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

		
	(b)
	The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

		
	(c)
	Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

		
	27.7
	No set-off by Obligors

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.
		
	27.8
	Business Days

		
	(a)
	Any payment under any Finance Document which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

		
	(b)
	During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

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	27.9
	Currency of account

		
	(a)
	Subject to paragraphs (b) and (c) below, sterling is the currency of account and payment for any sum due from an Obligor under any Finance Document.

		
	(b)
	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

		
	(c)
	Any amount expressed to be payable in a currency other than sterling shall be paid in that other currency.

		
	27.10
	Change of currency

		
	(a)
	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

		
	(i)
	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Company); and

		
	(ii)
	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

		
	(b)
	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Company) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Market and otherwise to reflect the change in currency.

		
	27.11
	Disruption to payment systems etc.

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Company that a Disruption Event has occurred:
		
	(a)
	the Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facilities as the Agent may deem necessary in the circumstances;

		
	(b)
	the Agent shall not be obliged to consult with the Company in relation to any changes mentioned in paragraph (a) above, if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

		
	(c)
	the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

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	(d)
	any such changes agreed upon by the Agent and the Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 33 (Amendments and Waivers);

		
	(e)
	the Agent shall not be liable for any damages, costs or losses to any Entity, any diminution in value or any liability whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 27.11; and

		
	(f)
	the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

		
	28.
	SET-OFF

Without prejudice to its rights at law, after the occurrence of an Event of Default and whilst such Event of Default is continuing a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any deposits (general or special, time or demand, including indebtedness evidenced by certificates of deposit, whether matured or unmatured, but excluding payroll accounts) and any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.
		
	29.
	NOTICES

		
	29.1
	Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.
		
	29.2
	Addresses

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:
		
	(a)
	in the case of the Company:

100 Grainger Parkway
Lake Forest, Illinois 60646
USA

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	Attn:
	Treasury Department

		
	Phone:
	1-847-535-1084

		
	Fax:
	1-847-535-9231

		
	e-mail:
	treasury_cash_ops@grainger.com 

with a copy to:
W.W. Grainger, Inc.
100 Grainger Parkway
Lake Forest, Illinois 60646
USA
		
	Attn:
	General Counsel 

		
	Phone:
	1-847-535-4442

		
	Fax:
	1-847-535-4585;

		
	(b)
	in the case of the Original Borrower:

GWW UK Holdings Ltd
c/o W.W. Grainger, Inc.
100 Grainger Parkway
Lake Forest, Illinois 60646
USA
		
	Attn:
	Treasury Department

		
	Phone:
	1-847-535-1084

		
	Fax:
	1-847-535-9231

		
	e-mail:
	treasury_cash_ops@grainger.com

with a copy to:
GWW UK Holdings Ltd
C/O TMF Group
5th Floor
6 St Andrew Street
London
EC4A3AE;
		
	(c)
	in the case of each Lender or any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and 

		
	(d)
	in the case of the Agent, that identified with its name below,

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or any substitute address or fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days' notice.
		
	29.3
	Delivery

		
	(a)
	Any communication or document made or delivered by one Entity to another under or in connection with the Finance Documents will only be effective:

		
	(i)
	if by way of fax, when received in legible form; or

		
	(ii)
	if by way of letter, (A) when it has been left at the relevant address; (B) five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address; or (C) in the case of a letter posted between continents, ten Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under Clause 29.2 (Addresses), if addressed to that department or officer.
		
	(b)
	Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent's signature below (or any substitute department or officer as the Agent shall specify for this purpose).

		
	(c)
	All notices from or to an Obligor shall be sent through the Agent.

		
	(d)
	Any communication or document made or delivered to the Company in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

		
	(e)
	Any communication or document which becomes effective, in accordance with paragraphs (a) to (d)ý above, after 5:00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	29.4
	Notification of address and fax number

Promptly upon changing its address or fax number, the Agent shall notify the other Parties.
		
	29.5
	Communication when Agent is Impaired Agent

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Agent has been appointed.

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	29.6
	Electronic communication

		
	(a)
	Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties:

		
	(i)
	notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and

		
	(ii)
	notify each other of any change to their address or any other such information supplied by them by not less than five Business Days' notice.

		
	(b)
	Any such electronic communication as specified in paragraph (a) above to be made between an Obligor and a Finance Party may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication.

		
	(c)
	Any such electronic communication as specified in paragraph (a) above made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made by a Party to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.

		
	(d)
	Any electronic communication which becomes effective, in accordance with paragraph (c) above, after 5:00 p.m. in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day.

		
	(e)
	Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 29.6.

		
	29.7
	English language

		
	(a)
	Any notice given under or in connection with any Finance Document must be in English.

		
	(b)
	All other documents provided under or in connection with any Finance Document must be:

		
	(i)
	in English; or

		
	(ii)
	if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

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	30.
	CALCULATIONS AND CERTIFICATES

		
	30.1
	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.
		
	30.2
	Certificates and determinations

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.
		
	30.3
	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days or, in any case where the practice in the Relevant Market differs, in accordance with that market practice.
		
	31.
	PARTIAL INVALIDITY

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.
		
	32.
	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents.  No election to affirm any Finance Document on the part of any Finance Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.
		
	33.
	AMENDMENTS AND WAIVERS

		
	33.1
	Required consents

		
	(a)
	Subject to Clause 33.2 (All Lender matters) and Clause 33.3 (Other exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such amendment or waiver will be binding on all Parties.

		
	(b)
	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 33.

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	33.2
	All Lender matters

An amendment or waiver of any term of any Finance Document that has the effect of changing or which relates to:
		
	(a)
	the definition of "Majority Lenders" in Clause 1.1 (Definitions);

		
	(b)
	an extension to the date of payment of any amount under the Finance Documents;

		
	(c)
	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

		
	(d)
	an increase in any Commitment, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably under the relevant Facility;

		
	(e)
	a change to the Borrowers or the Company (other than, for the avoidance of doubt, a change to the Parties pursuant to the operation of Clause 23 (Changes to the Obligors));

		
	(f)
	any provision which expressly requires the consent of all the Lenders;

		
	(g)
	Clause 2.3 (Finance Parties' rights and obligations), Clause 7.7 (Application of prepayments), Clause 22 (Changes to the Lenders), Clause 23 (Changes to the Obligors), Clause 26 (Sharing Among the Finance Parties), this Clause 33, Clause 38 (Governing Law) or Clause 39.1 (Jurisdiction); or

		
	(h)
	the nature or scope of the guarantee and indemnity granted under Clause 17 (Guarantee and Indemnity),

shall not be made without the prior consent of all the Lenders.
		
	33.3
	Other exceptions

An amendment or waiver which relates to the rights or obligations of the Agent, the Arranger or a Reference Bank (each in their capacity as such) may not be effected without the consent of the Agent, the Arranger or that Reference Bank, as the case may be.
		
	33.4
	Disenfranchisement of Defaulting Lenders

		
	(a)
	For so long as a Defaulting Lender has any Available Commitment, in ascertaining:

		
	(i)
	the Majority Lenders; or 

		
	(ii)
	whether:

		
	(A)
	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments under the relevant Facility; or

		
	(B)
	the agreement of any specified group of Lenders,

- 113-

has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, 
that Defaulting Lender's Commitment under the relevant Facility will be reduced by the amount of its Available Commitment under the relevant Facility and to the extent that that reduction results in that Defaulting Lender's Total Commitments being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes of paragraphs (i) and (ii) above.
		
	(b)
	For the purposes of this Clause 33.4, the Agent may assume that the following Lenders are Defaulting Lenders:

		
	(i)
	any Lender which has notified the Agent that it has become a Defaulting Lender;

		
	(ii)
	any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of "Defaulting Lender" has occurred,

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.
		
	33.5
	Excluded Commitments

If any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within 15 Business Days (unless the Company and the Agent agree to a longer time period in relation to any request) of that request being made:
		
	(a)
	its Commitment(s) shall not be included for the purpose of calculating the Total Commitments under the relevant Facility when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments has been obtained to approve that request; and

		
	(b)
	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request.

		
	33.6
	Replacement of a Defaulting Lender

		
	(a)
	The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by giving ten Business Days' prior written notice to the Agent and such Lender:

		
	(i)
	replace such Lender by requiring such Lender to (and to the extent permitted by law, such Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement;

		
	(ii)
	require such Lender to (and to the extent permitted by law, such Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of the undrawn Facility B Commitment of the Lender; or

- 114-

		
	(iii)
	require such Lender to (and to the extent permitted by law, such Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations in respect of Facility B,

to a Lender or other bank, financial institution, trust, fund or other entity (a "Replacement Lender") selected by the Company and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer which is either:
		
	(A)
	in an amount equal to the outstanding principal amount of such Lender's participation in the outstanding Loans and all accrued interest (to the extent that the Agent has not given a notification under Clause 22.9 (Pro rata interest settlement)), Break Costs and other amounts payable in relation thereto under the Finance Documents; or

		
	(B)
	in an amount agreed between that Defaulting Lender, the Replacement Lender and the Company and which does not exceed the amount described in paragraph (A) above.

		
	(b)
	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions:

		
	(i)
	the Company shall have no right to replace the Agent;

		
	(ii)
	neither the Agent nor the Defaulting Lender shall have any obligation to the Company to find a Replacement Lender;

		
	(iii)
	the transfer must take place no later than ten Business Days after the notice referred to in paragraph (a) above; 

		
	(iv)
	in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and

		
	(v)
	the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (a) above once it is satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer to the Replacement Lender.

		
	(c)
	The Defaulting Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Agent and the Company when it is satisfied that it has complied with those checks.

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	34.
	CONFIDENTIAL INFORMATION

		
	34.1
	Confidentiality

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 34.2 (Disclosure of Confidential Information) and Clause 34.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.
		
	34.2
	Disclosure of Confidential Information

Any Finance Party may disclose:
		
	(a)
	to any of its Affiliated Entities and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any Entity to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		
	(b)
	to any Entity:

		
	(i)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Agent and, in each case, to any of that Entity's Affiliated Entities, Related Funds, Representatives and professional advisers;

		
	(ii)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that Entity's Affiliated Entities, Related Funds, Representatives and professional advisers;

		
	(iii)
	appointed by any Finance Party or by an Entity to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any Entity appointed under paragraph (b) of Clause 24.15 (Relationship with the Lenders)); 

- 116-

		
	(iv)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (ii) above;

		
	(v)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		
	(vi)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

		
	(vii)
	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 22.8 (Security over Lenders' rights);

		
	(viii)
	who is a Party; or

		
	(ix)
	with the consent of the Company;

in each case, such Confidential Information as that Finance Party shall consider appropriate if:
		
	(A)
	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the Entity to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(B)
	in relation to paragraph (b)(iv) above, the Entity to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(C)
	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the Entity to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

- 117-

		
	(c)
	to any Entity appointed by that Finance Party or by an Entity to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party; and

		
	(d)
	to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

		
	34.3
	Disclosure to numbering service providers

		
	(a)
	Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facilities and/or one or more Obligors the following information:

		
	(i)
	names of Obligors;

		
	(ii)
	country of domicile of Obligors;

		
	(iii)
	place of incorporation of Obligors;

		
	(iv)
	date of this Agreement;

		
	(v)
	Clause 38 (Governing Law);

		
	(vi)
	the names of the Agent and the Arranger;

		
	(vii)
	date of each amendment and restatement of this Agreement;

		
	(viii)
	amounts of, and names of, the Facilities (and any tranches);

		
	(ix)
	amount of Total Commitments;

		
	(x)
	currency of the Facilities;

		
	(xi)
	type of Facilities;

		
	(xii)
	ranking of Facilities;

- 118-

		
	(xiii)
	Termination Date for Facilities;

		
	(xiv)
	changes to any of the information previously supplied pursuant to paragraphs (i) to (xiii) above; and

		
	(xv)
	such other information agreed between such Finance Party and the Company,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.
		
	(b)
	The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facilities and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

		
	(c)
	Each Obligor represents that none of the information set out in paragraphs (i) to (xv) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

		
	(d)
	The Agent shall notify the Company and the other Finance Parties of:

		
	(i)
	the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facilities and/or one or more Obligors; and

		
	(ii)
	the number or, as the case may be, numbers assigned to this Agreement, the Facilities and/or one or more Obligors by such numbering service provider.

		
	34.4
	Entire agreement

This Clause 34 constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.
		
	34.5
	Inside information

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.
		
	34.6
	Notification of disclosure

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:
		
	(a)
	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 34.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the Entities referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

- 119-

		
	(b)
	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 34.

		
	34.7
	Continuing obligations

The obligations in this Clause 34 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of:
		
	(a)
	the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

		
	(b)
	the date on which such Finance Party otherwise ceases to be a Finance Party.

		
	35.
	CONFIDENTIALITY OF FUNDING RATES AND REFERENCE BANK QUOTATIONS

		
	35.1
	Confidentiality and disclosure

		
	(a)
	The Agent and each Obligor agree to keep each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b), (c) and (d) below.

		
	(b)
	The Agent may disclose:

		
	(i)
	any Funding Rate (but not, for the avoidance of doubt, any Reference Bank Quotation) to the relevant Borrower pursuant to Clause 8.5 (Notification of rates of interest); and

		
	(ii)
	any Funding Rate or any Reference Bank Quotation to any Entity appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Agent and the relevant Lender or Reference Bank, as the case may be.

		
	(c)
	The Agent may disclose any Funding Rate or any Reference Bank Quotation, and each Obligor may disclose any Funding Rate, to:

		
	(i)
	any of its Affiliated Entities and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any Entity to whom that Funding Rate or Reference Bank Quotation is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;

- 120-

		
	(ii)
	any Entity to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the Entity to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

		
	(iii)
	any Entity to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the Entity to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and

		
	(iv)
	any Entity with the consent of the relevant Lender or Reference Bank, as the case may be.

		
	(d)
	The Agent's obligations in this Clause 35 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under Clause 8.5 (Notification of rates of interest) provided that (other than pursuant to paragraph (b)(i) above) the Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification.

		
	35.2
	Related obligations

		
	(a)
	The Agent and each Obligor acknowledge that each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Agent and each Obligor undertake not to use any Funding Rate or, in the case of the Agent, any Reference Bank Quotation for any unlawful purpose.

		
	(b)
	The Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Reference Bank, as the case may be:

		
	(i)
	of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 35.1 (Confidentiality and disclosure) except where such disclosure is made to any of the Entities referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

		
	(ii)
	upon becoming aware that any information has been disclosed in breach of this Clause 35.

- 121-

		
	35.3
	No Event of Default

No Event of Default will occur under Clause 21.7 (Other Defaults) by reason only of an Obligor's failure to comply with this Clause 35.
		
	36.
	COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.
		
	37.
	PATRIOT ACT

Each Lender hereby notifies each Obligor that pursuant to the requirements of the PATRIOT Act, such Lender is required to obtain, verify and record information that identifies such Obligor, which information includes the name and address of such Obligor and other information that will allow such Lender to identify such Obligor in accordance with the PATRIOT Act.

- 122-

SECTION 12
GOVERNING LAW AND ENFORCEMENT

		
	38.
	GOVERNING LAW

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
		
	39.
	ENFORCEMENT

		
	39.1
	Jurisdiction

		
	(a)
	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or the consequences of its nullity or any non-contractual obligations arising out of or in connection with this Agreement) (a "Dispute").

		
	(b)
	Each Obligor agrees that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Obligor will argue to the contrary. 

		
	(c)
	Notwithstanding paragraph (a) above, any Finance Party may take proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

		
	39.2
	Service of process

Each Obligor agrees that the documents which start any proceedings in relation to any Finance Document, and any other documents required to be served in connection with those proceedings, may be served on it by being delivered to the Original Borrower at its registered office, or to such other address in England and Wales as each such Obligor may specify by notice in writing to the Agent.  Nothing in this Clause 39.2 shall affect the right of any Finance Party to serve process in any other manner permitted by law.  This Clause 39.2 applies to proceedings in England and proceedings elsewhere.
This Agreement has been entered into on the date stated at the beginning of this Agreement.

- 123-

SCHEDULE 1
THE ORIGINAL PARTIES

PART I
THE ORIGINAL BORROWER

	
		
	Name of Original Borrower

	Registration number (or equivalent, if any)

	 
	 

	GWW UK Holdings Ltd 
	09639826

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PART II
THE ORIGINAL LENDERS

	
				
	Name of Original Lender
	Facility A Commitment
	Facility B Commitment
	Treaty Passport scheme reference number and jurisdiction of tax residence (if applicable)

	HSBC Bank plc
	£20,000,000
	-
	N/A

	 
	 
	 
	 

	JPMorgan Chase Bank, N.A., London Branch
	£30,000,000
	-
	13/M/0268710/DTTP
United States of America

	 
	 
	 
	 

	Lloyds Bank plc
	£80,000,000
	£20,000,000
	N/A

	 
	 
	 
	 

	Morgan Stanley Bank, N.A.
	£30,000,000
	-
	13/M/307216/DTTP
United States of America

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SCHEDULE 2
CONDITIONS PRECEDENT

PART I
CONDITIONS PRECEDENT TO INITIAL UTILISATION

		
	1.
	Original Obligors

		
	(a)
	A copy of the constitutional documents of each Original Obligor.

		
	(b)
	A copy of a good standing certificate with respect to the Company, issued as of a recent date by the Secretary of State of Illinois.

		
	(c)
	A copy of a resolution of the board of directors of each Original Obligor:

		
	(i)
	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party;

		
	(ii)
	authorising a specified Entity or Entities to execute the Finance Documents to which it is a party on its behalf; and

		
	(iii)
	authorising a specified Entity or Entities, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request and Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party.

		
	(d)
	A specimen of the signature of each Entity authorised by the resolution referred to in paragraph (c) above.

		
	(e)
	A certificate of the Company (signed by an officer, assistant secretary or other authorised signatory) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on any Original Obligor to be exceeded.

		
	(f)
	A certificate of an authorised signatory of the relevant Original Obligor certifying that each copy document relating to it specified in this Part I of this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

		
	2.
	Legal opinions

		
	(a)
	A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Agent in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

		
	(b)
	If an Original Obligor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Company in the relevant jurisdiction, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

- 126-

		
	3.
	Camelot Acquisition

		
	(a)
	A copy of each of the Acquisition Documents executed by the parties to those documents.

		
	(b)
	A certificate of the Company (signed by an officer, assistant secretary or other authorised signatory) certifying that:

		
	(i)
	no Acquisition Document has been amended, varied, novated, supplemented, superseded, waived or terminated except as permitted by Clause 20.21 (Acquisition Documents);

		
	(ii)
	the Company is not aware of any breach of any warranty or any claim under the Acquisition Agreement which would entitle the Original Borrower to terminate the Acquisition Agreement; and

		
	(iii)
	the Original Borrower has sufficient funds available to it to fund the portion of the purchase price for the Camelot Acquisition which will not be funded by way of a Facility A Loan. 

		
	4.
	Other documents and evidence

		
	(a)
	The Original Financial Statements.

		
	(b)
	Evidence that the fees, costs and expenses then due from the Company or the Original Borrower pursuant to Clause 11 (Fees) and Clause 16 (Costs and Expenses) have been paid or will be paid by the first Utilisation Date. 

- 127-

PART II
CONDITIONS PRECEDENT REQUIRED TO BE
DELIVERED BY THE ADDITIONAL BORROWER

		
	1.
	An Accession Letter, duly executed by the Additional Borrower and the Company.

		
	2.
	A copy of the constitutional documents of the Additional Borrower.

		
	3.
	A copy of a resolution of the board of directors of the Additional Borrower:

		
	(a)
	approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter;

		
	(b)
	authorising a specified Entity or Entities to execute the Accession Letter on its behalf; and

		
	(c)
	authorising a specified Entity or Entities, on its behalf, to sign and/or despatch all other documents and notices (including any Utilisation Request or Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents.

		
	4.
	A specimen of the signature of each Entity authorised by the resolution referred to in paragraph 3 above.

		
	5.
	A certificate of the Additional Borrower (signed by a director) confirming that borrowing the Total Commitments would not cause any borrowing or similar limit binding on it to be exceeded.

		
	6.
	A certificate of an authorised signatory of the Additional Borrower certifying that each copy document listed in this Part II of this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.

		
	7.
	If available, the latest audited financial statements of the Additional Borrower.

		
	8.
	A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Agent in England.

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SCHEDULE 3
REQUESTS

PART I
UTILISATION REQUEST

		
	From:
	[name of relevant Borrower]

		
	To:
	[Agent]

Dated:    
Dear Sirs
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

		
	2.
	We wish to borrow a Loan on the following terms:

	
		
	Proposed Utilisation Date:
	[•] (or, if that is not a Business Day, the next Business Day)

	Facility to be utilised:
	[Facility A]/[Facility B]*

	Currency of Loan:
	Sterling

	Amount:
	[•] or, if less, the Available Facility

	Interest Period:
	[•]

		
	3.
	We confirm that each condition specified in paragraph (a) of Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

		
	4.
	[This Loan is to be made in [whole]/[part] for the purpose of refinancing [identify maturing Loan].  [The proceeds of this Loan should be credited to [account].]]** OR

[The proceeds of this Loan should be credited to [account].]***
		
	5.
	This Utilisation Request is irrevocable.

Yours faithfully

authorised signatory for and on behalf of
[name of relevant Borrower]

- 129-

NOTES:
		
	*
	Delete as appropriate 

		
	**
	Delete as appropriate for Facility B Loans 

		
	***
	Use this option for Facility A Loans 

- 130-

PART II
SELECTION NOTICE

Applicable to a Facility A Loan
		
	From:
	[Company on behalf of]/[GWW UK Holdings Ltd]

		
	To:
	[Agent]

Dated:    
Dear Sirs
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is a Selection Notice.  Terms defined in the Agreement have the same meaning in this Selection Notice unless given a different meaning in this Selection Notice.

		
	2.
	We refer to the following Facility A Loan[s] with an Interest Period ending on [•]*.

		
	3.
	[We request that the above Facility A Loan be divided into two Facility A Loans with the following Interest Periods:]**

or
[We request that the next Interest Period for the above Facility A Loan[s] is [•]].**
		
	4.
	This Selection Notice is irrevocable.

Yours faithfully

authorised signatory for and on behalf of
[the Company on behalf of]/
[GWW UK Holdings Ltd]
NOTES:
		
	*
	Insert details of all Facility A Loans which have an Interest Period ending on the same date.

		
	**
	Use this option if division of Facility A Loans is requested.

		
	***
	Use this option if sub-division is not required.

- 131-

SCHEDULE 4
FORM OF TRANSFER CERTIFICATE

		
	To:
	[•] as Agent

		
	From:
	[The Existing Lender] (the "Existing Lender") and [The New Lender] (the "New Lender")

Dated:    
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is a Transfer Certificate.  Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

		
	2.
	We refer to Clause 22.5 (Procedure for transfer):

		
	(a)
	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation, and in accordance with Clause 22.5 (Procedure for transfer), all of the Existing Lender's rights and obligations under the Agreement and other Finance Documents which relate to that portion of the Existing Lender's Commitment(s) and participations in Loans under the Agreement as specified in the Schedule.

		
	(b)
	The proposed Transfer Date is [•].

		
	(c)
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

		
	3.
	The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders).

		
	4.
	The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

		
	(a)
	[a Qualifying Lender (other than a Treaty Lender);]

		
	(b)
	[a Treaty Lender;]

		
	(c)
	[not a Qualifying Lender].*

		
	5.
	[The New Lender confirms that the Entity beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

		
	(a)
	a company resident in the United Kingdom for United Kingdom tax purposes; or

		
	(b)
	a partnership each member of which is:

		
	(i)
	a company so resident in the United Kingdom; or

- 132-

		
	(ii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(c)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]**

		
	6.
	[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [•]), and is tax resident in [•] ***, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Company notify:

		
	(a)
	each Borrower which is a Party as a Borrower as at the Transfer Date; and

		
	(b)
	the Additional Borrower if it becomes Additional Borrower after the Transfer Date

that it wishes that scheme to apply to the Agreement.]****
		
	[5/6].
	This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

		
	[6/7].
	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

		
	[7/8].
	This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate.

- 133-

THE SCHEDULE
Commitment/rights and obligations to be transferred
[insert relevant details]
[Facility Office address, fax number and attention details for notices and account details for payments]
	
			
	For and on behalf of
[Existing Lender]
	 
	For and on behalf of
[New Lender]

	 
	 
	 

	By:
	 
	By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [•].
For and on behalf of
[Agent]
By:

NOTES:
		
	*
	Delete as applicable - each New Lender is required to confirm which of these three categories it falls within.

		
	**
	Include if New Lender comes within paragraph (i)(B) of the definition of "Qualifying Lender" in Clause 12.1 (Definitions).

		
	***
	Insert jurisdiction of tax residence.

		
	****
	Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.

- 134-

SCHEDULE 5
FORM OF ASSIGNMENT AGREEMENT

		
	To:
	[•] as Agent and [•] as Company, for and on behalf of each Obligor

		
	From:
	[the Existing Lender] (the "Existing Lender") and [the New Lender] (the "New Lender")

Dated:
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is an Assignment Agreement.  Terms defined in the Agreement have the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

		
	2.
	We refer to Clause 22.6 (Procedure for assignment):

		
	(a)
	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender's Commitment(s) and participations in Loans under the Agreement as specified in the Schedule.

		
	(b)
	The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender's Commitment(s) and participations in Loans under the Agreement specified in the Schedule.

		
	(c)
	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

		
	3.
	The proposed Transfer Date is [•].

		
	4.
	On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

		
	5.
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

		
	6.
	The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders).

		
	7.
	The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

		
	(a)
	[a Qualifying Lender (other than a Treaty Lender);]

		
	(b)
	[a Treaty Lender;]

		
	(c)
	[not a Qualifying Lender].*

- 135-

		
	8.
	[The New Lender confirms that the Entity beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

		
	(a)
	a company resident in the United Kingdom for United Kingdom tax purposes; or

		
	(b)
	a partnership each member of which is:

		
	(i)
	a company so resident in the United Kingdom; or

		
	(ii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(c)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]**

		
	9.
	[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [•]), and is tax resident in [•]***, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Company notify: 

		
	(a)
	each Borrower which is a Party as a Borrower as at the Transfer Date; and

		
	(b)
	the Additional Borrower if it becomes Additional Borrower after the Transfer Date 

that it wishes that scheme to apply to the Agreement.]****
		
	[8/9].
	This Assignment Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 22.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company), to the Company (on behalf of each Obligor) of the assignment referred to in this Assignment Agreement.

		
	[9/10].
	This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Assignment Agreement.

[10/11].This Assignment Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
[11/12].This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

- 136-

THE SCHEDULE
Rights to be assigned and obligations to be released and undertaken
[insert relevant details]
[Facility office address, fax number and attention details for notices and account details for payments]
	
			
	For and on behalf of
[Existing Lender]
	 
	For and on behalf of
[New Lender]

	 
	 
	 

	By:
	 
	By:

This Assignment Agreement is accepted by the Agent and the Transfer Date is confirmed as [•].
Signature of this Assignment Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to herein, which notice the Agent receives on behalf of each Finance Party.
For and on behalf of
[Agent]
By:

NOTES:
		
	*
	Delete as applicable - each New Lender is required to confirm which of these three categories it falls within.

		
	**
	Include only if New Lender is a UK Non-Bank Lender - i.e. falls within paragraph (i)(B) of the definition of "Qualifying Lender" in Clause 12.1 (Definitions).

		
	***
	Insert jurisdiction of tax residence.

		
	****
	Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.

- 137-

SCHEDULE 6
FORM OF ACCESSION LETTER

		
	To:
	[•] as Agent

		
	From:
	Cromwell Group (Holdings) Limited and W.W. Grainger, Inc. 

Dated:    
Dear Sirs
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is an Accession Letter.  Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter.

		
	2.
	Cromwell Group (Holdings) Limited agrees to become the Additional Borrower and to be bound by the terms of the Agreement as the Additional Borrower pursuant to Clause 23.2 (Additional Borrower) of the Agreement.  Cromwell Group (Holdings) Limited is a company duly incorporated under the laws of England and Wales.

		
	3.
	The Company confirms that no Default is continuing or would occur as a result of Cromwell Group (Holdings) Limited becoming the Additional Borrower.

		
	4.
	Cromwell Group (Holdings) Limited's administrative details are as follows:

Address:
Fax No:
Attention:
		
	5.
	This Accession Letter and any non-contractual obligations arising out of or in connection with it are governed by English law.

This Accession Letter is entered into by deed.
	
			
	For and on behalf of
W.W. Grainger, Inc.
	 
	For and on behalf of
Cromwell Group (Holdings) Limited

	 
	 
	 

	By:
	 
	By:

- 138-

SCHEDULE 7
TIMETABLES

	
		
	 
	Loans in sterling

	Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)) or a Selection Notice (Clause 9.1 (Selection of Interest Periods))
	U-1
10 a.m.

	 
	 

	Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders' participation)
	U-1
3:00 p.m.

	 
	 

	LIBOR is fixed
	Quotation Day 11:00 a.m.

	 
	 

	Reference Bank Rate calculated by reference to available quotations in accordance with Clause 10.2 (Calculation of Reference Bank Rate)
	Noon on the Quotation Day

"U" = date of utilisation or, if applicable, in the case of a Facility A Loan that has already been borrowed, the first day of the relevant Interest Period for that Loan 
"U - X" = Business Days prior to date of utilisation

- 139-

SCHEDULE 8
FORM OF INCREASE CONFIRMATION

		
	To:
	[•] as Agent, and [•] as Company, for and on behalf of each Obligor

		
	From:
	[the Increase Lender] (the "Increase Lender")

Dated:    
GWW UK Holdings Ltd - £180,000,000 Facilities Agreement
dated 26 August 2015 (the "Agreement")

		
	1.
	We refer to the Agreement.  This is an Increase Confirmation.  Terms defined in the Agreement have the same meaning in this Increase Confirmation unless given a different meaning in this Increase Confirmation.

		
	2.
	We refer to Clause 2.2 (Increase) of the Agreement.

		
	3.
	The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the "Relevant Commitment") as if it was an Original Lender under the Agreement.

		
	4.
	The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the "Increase Date") is [•].

		
	5.
	On the Increase Date, the Increase Lender becomes party to the Finance Documents as a Lender.

		
	6.
	The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

		
	7.
	The Increase Lender expressly acknowledges the limitations on the Lenders' obligations referred to in paragraph (g) of Clause 2.2 (Increase).

		
	8.
	The Increase Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

		
	(a)
	[a Qualifying Lender (other than a Treaty Lender);]

		
	(b)
	[a Treaty Lender;]

		
	(c)
	[not a Qualifying Lender].**

		
	9.
	[The Increase Lender confirms that the Entity beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

		
	(a)
	a company resident in the United Kingdom for United Kingdom tax purposes; 

- 140-

		
	(b)
	a partnership each member of which is:

		
	(i)
	a company so resident in the United Kingdom; or

		
	(ii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(c)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]***

		
	10.
	[The Increase Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [•]) and is tax resident in [•]****, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and requests that the Company notify:

		
	(a)
	each Borrower which is a Party as a Borrower as at the Increase Date; and 

		
	(b)
	the Additional Borrower if it becomes Additional Borrower after the Increase Date, 

that it wishes the scheme to apply to the Facilities Agreement.]*****
[10/11.] This Increase Confirmation may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Increase Confirmation.
[11/12.] This Increase Confirmation and any non-contractual obligations arising out of or in connection with it are governed by English law.
[12/13]. This Increase Confirmation has been entered into on the date stated at the beginning of this Increase Confirmation.

NOTES
		
	**
	Delete as applicable - each Increase Lender is required to confirm which of these three categories it falls within.

		
	***
	Include only if the Increase Lender is a UK Non-Bank Lender i.e. falls within paragraph (i)(B) of the definition of "Qualifying Lender" in Clause 12.1 (Definitions).

		
	****
	Insert jurisdiction of tax residence.

		
	*****
	This confirmation must be included if the Increase Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.

- 141-

THE SCHEDULE
Relevant Commitment/rights and obligations to be assumed by the Increase Lender
[insert relevant details]

 [Facility office address, fax number and attention details for notices and account details for payments]
[Increase Lender]
By:
This Increase Confirmation is accepted as an Increase Confirmation for the purposes of the Agreement by the Agent and the Increase Date is confirmed as [•].
Agent
By:

- 142-

SCHEDULE 9
SUBSIDIARIES

	
																									
	W.W. Grainger, Inc. and its Subsidiaries *
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	W.W. Grainger, Inc. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	American Fabory Corporation (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Fabory U.S.A., Ltd. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	MFC I, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Dayton Electric Manufacturing Co. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	E & R Industrial Sales, Inc. (Michigan)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	E & R Office Supply, Inc. (Michigan)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	I S One, Inc. (Michigan)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	E&R Industrial Supplies de Mexico S de RL de CV1 (owned 50% by E & R Industrial Sales, Inc. and 50% by I S One, Inc.) 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	GHC Specialty Brands, LLC (Wisconsin)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Caribe, Inc. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Energy Initiatives, LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger NRCI, LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Pleasant Prairie RC LLC (Delaware) 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	1         This company is in the process of being wound up.
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

- 143-

	
																									
	 
	Grainger International, Inc. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Global Holdings, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Grainger China LLC (People's Republic of China)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Grainger Dominicana SRL (Dominican Republic) (99.9%)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Grainger Global Trading (Shanghai) Company Limited (People's Republic of China)
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Grainger Industrial MRO de Costa Rica, S.R.L. (Costa Rica)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	GWW Investments C.V. (Netherlands) (99%)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	GMMI LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	MRO Soluciones, S.A. de C.V. (Mexico) (2%)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger Panama S.A. (Panama) (1%)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger Panama Services S. de R.L. (Panama) (99%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger Peru S.R.L. (Peru) (0.01%)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger, S.A. de C.V. (Mexico) (0.01% - beneficially owned by GWW Investments C.V.; the owner in title is WWGH LLC)
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	WWG de Mexico, S.A. de C.V. (Mexico) (0.01% - beneficially owned by GWW Investments C.V.; the owner in title is WWGH LLC)

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	WWG International Finance C.V. (Netherlands) (99.9%)
	 
	 
	 
	 
	 

- 144-

	
																									
	 
	 
	 
	 
	 
	Grainger International Holdings B.V. (Netherlands)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	BMFGH Holding B.V. (Netherlands)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Fabory Masters in Fasteners Group B.V. (Netherlands)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	BMF Finance B.V. (Netherlands)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	BMF Management Services B.V. (Netherlands)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Borstlap International B.V. (Netherlands)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	BMF Fundco B.V. (Netherlands) (62.5%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Combori N.V. (Belgium) (0.0027%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Asia B.V. (Netherlands)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Shanghai Co. Ltd. (People's Republic of China)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fixbolt (Suhzou) Co., Ltd. Taicang (People's Republic of China)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Centres Belgium N.V. (Belgium) (0.0041%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory CZ Holding S.R.O. (Czech Republic) (20%)
	 
	 

- 145-

	
																									
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Kötoelem Kereskedelmi KFT (Hungary)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Poland SPZOO (Poland) (99.3737%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Portugal Lda. (Portugal)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Slovakia SRO (Slovakia) (99.946%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Spain S.L.U. (Spain)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory SRL (Romania)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	FFSA S.A. (France) **
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory France S.A. (France) ***
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Combori N.V. (Belgium) (99.9973%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Centres Belgium N.V. (Belgium) (99.9959%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Overseas Holding B.V. (Netherlands)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Inbema N.V. (Curaçao Netherlands Antilles)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Canada Inc. (Canada)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Fabory CZ Holding S.R.O. (Czech Republic) (80%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Nederland B.V. (Netherlands)
	 
	 
	 
	 

- 146-

	
																									
	 
	 
	 
	 
	 
	 
	 
	 
	 
	BMF Fundco B.V. (Netherlands) (37.50%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	CV Noordoever (Netherlands) (85%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Dutch Industrial Fasteners B.V. (Netherlands)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Pimentel Fasteners B.V. (Netherlands)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Poland SPZOO (Poland) (0.6263%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Fabory Slovakia SRO (Slovakia) (0.054%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Fabory UK Holdings Ltd. (United Kingdom)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Fabory UK Ltd. (United Kingdom)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Sterling Fabory India Private Ltd. (India) (50%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Asia Pacific K.K. (Japan)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Brasil Participações Ltda. (Brazil)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	LN Participações Ltda. (Brazil)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Grainger Brasil Comércio e Distribuição Ltda. (Brazil) (88.6% owned by Grainger Brasil Participações Ltda., 11.4% owned by LN Participações Ltda)

- 147-

	
																									
	 
	 
	 
	 
	 
	 
	Grainger Canada Holdings ULC (Alberta)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Acklands - Grainger Inc. (Canada)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	2422626 Ontario Inc. (Ontario)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	971086 Ontario Inc. (Ontario)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	WFS Enterprises Inc. (Ontario)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Blackrock Tools Inc. (Ontario)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	FEC Distribution Specialties Inc. (Ontario)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Krusters 2000 Inc. Ontario)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	WFS Ltd. Ontario)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Colombia Holding Company, LLC (Delaware)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Grainger Colombia S.A.S. (Colombia)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Guam L.L.C. (Guam)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger India Private Limited (India) (0.1%)
	 
	 
	 
	 
	 

- 148-

	
																									
	 
	 
	 
	 
	 
	 
	Grainger Industrial Supply India Private Limited (India) (0.01%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Mexico LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	WWG de Mexico, S.A. de C.V. (Mexico) (99.99%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Grainger, S.A. de C.V. (Mexico) (99.99%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	MRO Soluciones, S.A. de C.V. (Mexico) (98%)
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	WWG Servicios, S.A. de C.V. (Mexico) (99.99%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Panama S.A. (Panama) (99%)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Peru S.R.L. (Peru) (99.99%)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Grainger Singapore Pte., Ltd. (Singapore)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Grainger India Private Limited (India) (99.9%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	India Pacific Brands (Mauritius)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	Grainger Industrial Supply India Private Limited (India) (99.99%)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	GWW UK Holdings Ltd (England and Wales)
	 
	 
	 
	 
	 

- 149-

	
																									
	 
	 
	 
	 
	 
	 
	Razor Occam, Ltd (England and Wales)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Zoro Tools Europe GmbH (Germany)
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	WWG Servicios, S.A. de C.V. (Mexico) (0.01% - beneficially owned by GWW Investments C.V.; the owner in title is WWGH LLC)

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	WWGH LLC
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger Dominicana SRL (Dominican Republic) (0.1%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Grainger Panama Services S. de R.L. (Panama) (1%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	GWW Investments C.V. (Netherlands) (1%)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	WWG International Finance C.V. (Netherlands) (0.1%)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Services International Inc. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	MonotaRO Co., Ltd. (Japan) (45.81%)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	NAVIMRO Co., Ltd. (Republic of Korea)
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Pro Tool Point Supply, Inc. (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Japan Holdings, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Japan, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	MonotaRO Co., Ltd. (Japan) (4.93%)
	 
	 
	 
	 
	 
	 
	 
	 
	 

- 150-

	
																									
	 
	Grainger Latin America Holding Company, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Trinidad, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Management LLC (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Procurement Company LLC (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Registry Services, LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 

	 
	Grainger Service Holding Company, Inc. (d/b/a Grainger Lighting Services) (Delaware)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Services Network, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Grainger Safety Services, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Grainger Tech LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Imperial Supplies Holdings, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Imperial Supplies LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	PSS West, Inc. (California)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Safety Registry Services, LLC (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Safety Solutions, Inc. (Ohio)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Techni-Tool, Inc. (Pennsylvania)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	WFS Holding Company, Inc. (Michigan)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	WFS (USA) Ltd. (South Carolina)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

- 151-

	
																								
	 
	 
	Windsor Factory Supply Inc. (Michigan)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Zoro IP Holdings, LLC (Illinois)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Zoro Tools, Inc. (Delaware)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	*
	All ownership amounts are 100% unless otherwise noted.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	**
	Borstlap International B.V. (97.22203%)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fabory Nederland B.V. (2.77789%)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fabory Masters in Fasteners Group B.V. (0.00003%)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	***
	FFSA S.A. (99.96242%)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fabory Masters in Fasteners Group B.V. (0.00933%)
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Borstlap International B.V. (0.00933%)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fabory Nederland B.V. (0.01866%)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

- 152-

SIGNATURES

THE COMPANY
For and on behalf of
W.W. GRAINGER, INC. 
By:  /s/ Ronald Jadin    
Address:    
Fax:    

[Signature page to the Facilities Agreement]

THE ORIGINAL BORROWER
For and on behalf of
GWW UK HOLDINGS LTD
By:  /s/ Ronald Jadin    
Address:    
Fax:    

[Signature page to the Facilities Agreement]

THE ARRANGER
For and behalf of
LLOYDS BANK PLC
By:  /s/ Nadia Jalal          Nadia Jalal 
Address: Lloyds Bank, Butt Dyke House, 33 Park Row, Nottingham, NG1 6GY
Fax:    
Contact: Matt Vincent 

[Signature page to the Facilities Agreement]

For and behalf of
LLOYDS SECURITIES INC. 
By:  Brian Schneider          /s/ Brian Schneider 
Address: 1095 Avenue of the Americas, 34th Floor, New York, NY 10036
Fax:    
Contact: Craig Meisner / Sean Bali

[Signature page to the Facilities Agreement]

THE AGENT
For and on behalf of 
LLOYDS BANK PLC 
By:  /s/ Nadia Jalal          Nadia Jalal

Documentation Agent
Address: Loans Agency, 3rd Floor, 25 Gresham Street, London EC2V 7HN
Contact: Andrew Moore
Tel: 0207 356 3503
Fax: 0207 158 3198

Operational Agent
Address: Loan Operations, Level 1, Citymark, 150 Fountainbridge, Edinburgh EH3 9PE
Agency Operations general email: LLO1@lloydsbanking.com 
Agency Operations general phone: 0845 366 0023
Agency Operations Fax: 0207 158 3204

[Signature page to the Facilities Agreement]

THE ORIGINAL LENDERS 
For and on behalf of
HSBC BANK PLC
By: /s/ Matthew Ashcroft    
            Matthew Ashcroft, CCO

[Signature page to the Facilities Agreement]

For and on behalf of
JPMorgan Chase Bank, N.A., LONDON BRANCH
By:  /s/ J.D. Birch          J.D. Birch V.P.

[Signature page to the Facilities Agreement]

For and on behalf of
Lloyds Bank plc
By:  /s/ Nadia Jalal

[Signature page to the Facilities Agreement]

For and on behalf of
Morgan Stanley Bank, N.A.
/s/ Michael King
By: Michael King
Title: Authorized Signatory    

[Signature page to the Facilities Agreement]ofix-ex101_23.htm

 

Exhibit 10.1

Execution Version

 

 

 

CREDIT AGREEMENT

Dated as of August 31, 2015

among

ORTHOFIX HOLDINGS, INC.
and
VICTORY MEDICAL LIMITED

as Borrowers

ORTHOFIX INTERNATIONAL N.V.

AND CERTAIN OF ITS SUBSIDIARIES PARTY HERETO

as Guarantors

THE LENDERS FROM TIME TO TIME PARTY HERETO

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

BBVA COMPASS

SUNTRUST BANK

as Syndication Agents

BANK OF AMERICA, N. A.

BANK OF THE WEST

as Documentation Agents

DNB CAPITAL LLC

as Senior Managing Agent

 

J.P. MORGAN SECURITIES LLC

BBVA COMPASS

SUNTRUST ROBINSON HUMPHREY, INC.

Joint Lead Arrangers and Joint Bookrunners

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
 
	
 
	
Page

	
ARTICLE I DEFINITIONS 
	
1

	
 
	
 
	
 

	
SECTION 1.01.
	
Defined Terms
	
1

	
SECTION 1.02.
	
Classification of Loans and Borrowings
	
29

	
SECTION 1.03.
	
Terms Generally
	
29

	
SECTION 1.04.
	
Accounting Terms; GAAP
	
29

	
SECTION 1.05.
	
Pro Forma Adjustments for Acquisitions and Dispositions
	
30

	
SECTION 1.06.
	
Status of Obligations
	
30

	
 
	
 

	
ARTICLE II THE CREDITS
	
30

	
 
	
 
	
 

	
SECTION 2.01.
	
Commitments
	
30

	
SECTION 2.02.
	
Loans and Borrowings
	
30

	
SECTION 2.03.
	
Requests for Borrowings
	
31

	
SECTION 2.04.
	
Swingline Loans
	
31

	
SECTION 2.05.
	
Letters of Credit
	
32

	
SECTION 2.06.
	
Funding of Borrowings
	
36

	
SECTION 2.07.
	
Interest Elections
	
36

	
SECTION 2.08.
	
Termination and Reduction of Commitments; Increase in Commitments
	
37

	
SECTION 2.09.
	
Repayment of Loans; Evidence of Debt
	
39

	
SECTION 2.10.
	
Prepayment of Loans
	
39

	
SECTION 2.11.
	
Fees
	
40

	
SECTION 2.12.
	
Interest
	
41

	
SECTION 2.13.
	
Market Disruption and Alternate Rate of Interest
	
42

	
SECTION 2.14.
	
Increased Costs
	
42

	
SECTION 2.15.
	
Break Funding Payments
	
43

	
SECTION 2.16.
	
Taxes
	
44

	
SECTION 2.17.
	
Payments Generally; Allocation of Proceeds; Sharing of Set‐offs
	
47

	
SECTION 2.18.
	
Mitigation Obligations; Replacement of Lenders
	
49

	
SECTION 2.19.
	
Defaulting Lenders
	
49

	
SECTION 2.20.
	
Returned Payments
	
50

	
SECTION 2.21.
	
Banking Services and Swap Agreements
	
51

	
SECTION 2.22.
	
Determination of Dollar Amounts
	
51

	
SECTION 2.23.
	
Judgment Currency
	
51

	
SECTION 2.24.
	
Illegality
	
51

	
SECTION 2.25.
	
Uncommitted Orthofix-Italy Non-Pro Rata Tranche Sub-Facility
	
52

	
 
	
 

	
ARTICLE III REPRESENTATIONS AND WARRANTIES
	
53

	
 
	
 
	
 

	
SECTION 3.01.
	
Organization; Powers
	
53

	
SECTION 3.02.
	
Authorization; Enforceability
	
53

	
SECTION 3.03.
	
Governmental Approvals; No Conflicts
	
53

	
SECTION 3.04.
	
Financial Condition; No Material Adverse Change
	
53

	
SECTION 3.05.
	
Properties, etc
	
53

	
SECTION 3.06.
	
Litigation and Environmental Matters
	
54

	
SECTION 3.07.
	
Compliance with Laws and Agreements; No Default
	
54

	
SECTION 3.08.
	
Investment Company Status
	
56

	
SECTION 3.09.
	
Taxes
	
56

	
SECTION 3.10.
	
ERISA and Foreign Pension Plans
	
56

	
SECTION 3.11.
	
Disclosure
	
57

	
SECTION 3.12.
	
Other Agreements; Material Agreements
	
57

	
SECTION 3.13.
	
Solvency
	
57

	
SECTION 3.14.
	
Insurance
	
57

	
SECTION 3.15.
	
Capitalization; Subsidiaries; Intercompany Loans
	
58

	
SECTION 3.16.
	
Security Interest in Collateral
	
58

	
SECTION 3.17.
	
Employment Matters
	
58

	
SECTION 3.18.
	
Federal Reserve Regulations
	
58

i

 

	
SECTION 3.19.
	
Use of Proceeds
	
58

	
SECTION 3.20.
	
No Burdensome Restrictions
	
58

	
SECTION 3.21.
	
Anti-Corruption Laws and Sanctions
	
58

	
SECTION 3.22.
	
Fraud and Abuse
	
59

	
SECTION 3.23.
	
Licensing and Accreditation
	
59

	
SECTION 3.24.
	
Other Regulatory Protection
	
59

	
SECTION 3.25.
	
Reimbursement From Third Party Payors
	
60

	
SECTION 3.26.
	
Material Agreements
	
60

	
SECTION 3.27.
	
Affiliate Transactions
	
60

	
SECTION 3.28.
	
Common Enterprise
	
60

	
SECTION 3.29.
	
Foreign Subsidiaries
	
60

	
SECTION 3.30.
	
Classification as Senior Indebtedness
	
61

	
SECTION 3.31.
	
Tax Shelter Regulations
	
61

	
 
	
 

	
ARTICLE IV CONDITIONS
	
61

	
 
	
 
	
 

	
SECTION 4.01.
	
Effective Date
	
61

	
SECTION 4.02.
	
Each Credit Event
	
63

	
 
	
 

	
ARTICLE V AFFIRMATIVE COVENANTS
	
63

	
 
	
 
	
 

	
SECTION 5.01.
	
Financial Statements and Other Information
	
63

	
SECTION 5.02.
	
Notices of Material Events
	
65

	
SECTION 5.03.
	
Existence; Conduct of Business
	
66

	
SECTION 5.04.
	
Payment of Obligations
	
66

	
SECTION 5.05.
	
Maintenance of Properties
	
66

	
SECTION 5.06.
	
Books and Records; Inspection Rights
	
66

	
SECTION 5.07.
	
Compliance with Laws and Material Contractual Obligations
	
66

	
SECTION 5.08.
	
Use of Proceeds
	
67

	
SECTION 5.09.
	
Accuracy of Information
	
67

	
SECTION 5.10.
	
Insurance
	
67

	
SECTION 5.11.
	
Appraisals
	
67

	
SECTION 5.12.
	
Casualty and Condemnation
	
68

	
SECTION 5.13.
	
Additional Collateral; Further Assurances
	
68

	
SECTION 5.14.
	
Environmental Covenant
	
69

	
SECTION 5.15.
	
Post-Closing Matters
	
69

	
 
	
 

	
ARTICLE VI NEGATIVE COVENANTS
	
69

	
 
	
 
	
 

	
SECTION 6.01.
	
Indebtedness
	
69

	
SECTION 6.02.
	
Liens
	
71

	
SECTION 6.03.
	
Fundamental Changes
	
72

	
SECTION 6.04.
	
Investments, Loans, Advances, Guarantees and Acquisitions
	
73

	
SECTION 6.05.
	
Asset Sales
	
75

	
SECTION 6.06.
	
Sale and Leaseback Transactions
	
76

	
SECTION 6.07.
	
Swap Agreements
	
76

	
SECTION 6.08.
	
Restricted Payments; Certain Payments of Indebtedness
	
76

	
SECTION 6.09.
	
Transactions with Affiliates
	
77

	
SECTION 6.10.
	
Restrictive Agreements
	
77

	
SECTION 6.11.
	
Amendment of Material Documents
	
77

	
SECTION 6.12.
	
Financial Covenants
	
77

	
SECTION 6.13.
	
Accounts
	
77

	
SECTION 6.14.
	
Domestic Subsidiaries
	
78

	
 
	
 

	
ARTICLE VII EVENTS OF DEFAULT
	
78

	
 
	
 

	
ARTICLE VIII THE ADMINISTRATIVE AGENT
	
80

	
 
	
 
	
 

	
SECTION 8.01.
	
Appointment
	
80

	
SECTION 8.02.
	
Rights as a Lender
	
81

	
SECTION 8.03.
	
Duties and Obligations
	
81

	
SECTION 8.04.
	
Reliance
	
81

	
SECTION 8.05.
	
Actions through Sub-Agents
	
81

ii

 

	
SECTION 8.06.
	
Resignation
	
81

	
SECTION 8.07.
	
Non-Reliance
	
82

	
SECTION 8.08.
	
Other Agency Titles
	
83

	
SECTION 8.09.
	
Not Partners or Co-Venturers; Administrative Agent as Representative of the Secured Parties
	
83

	
 
	
 

	
ARTICLE IX MISCELLANEOUS
	
83

	
 
	
 
	
 

	
SECTION 9.01.
	
Notices
	
83

	
SECTION 9.02.
	
Waivers; Amendments
	
85

	
SECTION 9.03.
	
Expenses; Indemnity; Damage Waiver
	
88

	
SECTION 9.04.
	
Successors and Assigns
	
89

	
SECTION 9.05.
	
Survival
	
92

	
SECTION 9.06.
	
Counterparts; Integration; Effectiveness; Electronic Execution
	
92

	
SECTION 9.07.
	
Severability
	
92

	
SECTION 9.08.
	
Right of Setoff
	
93

	
SECTION 9.09.
	
Governing Law; Jurisdiction; Consent to Service of Process
	
93

	
SECTION 9.10.
	
WAIVER OF JURY TRIAL
	
93

	
SECTION 9.11.
	
Headings
	
93

	
SECTION 9.12.
	
Confidentiality
	
93

	
SECTION 9.13.
	
Several Obligations; Nonreliance; Violation of Law
	
94

	
SECTION 9.14.
	
USA PATRIOT Act
	
94

	
SECTION 9.15.
	
Disclosure
	
94

	
SECTION 9.16.
	
Appointment for Perfection
	
95

	
SECTION 9.17.
	
Interest Rate Limitation
	
95

	
SECTION 9.18.
	
Marketing Consent
	
95

	
SECTION 9.19.
	
No Advisory or Fiduciary Responsibility
	
95

	
SECTION 9.20.
	
No Other Duties, Etc
	
95

	
SECTION 9.21.
	
Protected Health Information
	
95

	
 
	
 

	
ARTICLE X LOAN GUARANTY
	
96

	
 
	
 
	
 

	
SECTION 10.01.
	
Guaranty
	
96

	
SECTION 10.02.
	
Guaranty of Payment
	
96

	
SECTION 10.03.
	
No Discharge or Diminishment of Loan Guaranty
	
96

	
SECTION 10.04.
	
Defenses Waived
	
96

	
SECTION 10.05.
	
Rights of Subrogation
	
97

	
SECTION 10.06.
	
Reinstatement; Stay of Acceleration
	
97

	
SECTION 10.07.
	
Information
	
97

	
SECTION 10.08.
	
Termination
	
97

	
SECTION 10.09.
	
Taxes
	
97

	
SECTION 10.10.
	
Maximum Liability
	
98

	
SECTION 10.11.
	
Contribution
	
98

	
SECTION 10.12.
	
Liability Cumulative
	
98

	
SECTION 10.13.
	
Keepwell
	
98

	
 
	
 

	
ARTICLE XI THE BORROWER REPRESENTATIVE.
	
99

	
 
	
 
	
 

	
SECTION 11.01.
	
Appointment; Nature of Relationship
	
99

	
SECTION 11.02.
	
Powers
	
99

	
SECTION 11.03.
	
Employment of Agents
	
99

	
SECTION 11.04.
	
Notices
	
99

	
SECTION 11.05.
	
Successor Borrower Representative
	
99

	
SECTION 11.06.
	
Execution of Loan Documents
	
99

	
SECTION 11.07.
	
Reporting
	
99

iii

 

 

SCHEDULES:

Commitment Schedule

Schedule 3.05 – Properties etc. 
Schedule 3.06 – Disclosed Matters
Schedule 3.07 – Compliance with Health Care Laws
Schedule 3.12 – Material Agreements
Schedule 3.14 – Insurance
Schedule 3.15 – Capitalization and Subsidiaries
Schedule 3.21 – Anti-Corruption Laws and Sanctions
Schedule 3.27 – Affiliate Transactions
Schedule 5.15 – Post-Closing Matters
Schedule 6.01 – Existing Indebtedness
Schedule 6.01(a) – Intercompany Loans
Schedule 6.02 – Existing Liens
Schedule 6.04 – Existing Investments
Schedule 6.10 – Existing Restrictions
Schedule 6.13 - Accounts

EXHIBITS:

Exhibit A – Assignment and Assumption

Exhibit B – Compliance Certificate 

Exhibit C – Joinder Agreement

Exhibit D-1 – U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S.   Federal Income Tax Purposes)

Exhibit D-2 – U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For   U.S. Federal Income Tax Purposes)

Exhibit D-3 – U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S.   Federal Income Tax Purposes)

Exhibit D-4 – U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S.   Federal Income Tax Purposes)

 

 

 

iv

 

CREDIT AGREEMENT dated as of August 31, 2015 (as it may be amended or modified from time to time, this “Agreement”), among ORTHOFIX HOLDINGS, INC., a Delaware corporation (“U.S. Borrower”) and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales (“Victory”), as Borrowers, the other Loan Parties party hereto, the Lenders party hereto from time to time, JPMORGAN CHASE BANK, N.A., as Administrative Agent, Swingline Lender and Issuing Bank and J.P. Morgan Securities LLC and BBVA Compass as Joint Lead Arrangers and Joint Bookrunners.

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:

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, is bearing interest at a rate determined by reference to the Alternate Base Rate.

“Acceptable Communication” has the meaning assigned to such term in Section 2.03.

“Account” has the meaning assigned to such term in the Security Agreement.

“Account Debtor” means any Person obligated on an Account.

“Acquisition” means any transaction, or any series of related transactions, consummated on or after the Effective Date, by which any Orthofix Entity (a) acquires any division, line of business or other business unit of any Person or all or substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the Equity Interests of a Person which has ordinary voting power for the election of directors or other similar management personnel of a Person (other than Equity Interests having such power only by reason of the happening of a contingency) or a majority of the outstanding Equity Interests of a Person (such Person or such division, line of business or other business unit of a Person the subject of the Acquisition referred to herein as the “Target”).

“Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing for any Interest Period or for any ABR Borrowing that accrues interest based upon the Adjusted LIBO Rate, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the Eurocurrency Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

“Administrative Agent” means JPMorgan Chase Bank, N.A. (and its subsidiaries and Affiliates), in its capacity as administrative agent for the Lenders hereunder and any successor thereto appointed pursuant to Section 8.06.

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth in Section 9.01, or such other address or account as the Administrative Agent may from time to time notify to the Borrower Representative and the Lenders.

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

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the specified Person.

“Aggregate Revolving Exposure” means, at any time, the aggregate Revolving Exposure of all the Lenders at such time (with the Swingline Exposure and the LC Exposure of each Lender calculated assuming that that all of the Lenders have funded their participations in all Swingline Loans and Letters of Credit outstanding at such time).

“Agreed Currencies” means (a) Dollars and (b) so long as such currency is freely transferable and convertible into Dollars (i) Euro and (ii) Pounds Sterling.

“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 FRBNY Rate in effect on such day plus 1⁄2 of 1%, and (c) the Adjusted LIBO Rate for a one-month Interest Period for Dollars on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, the Adjusted 

Credit Agreement (Orthofix), Page 1

 

LIBO Rate for any day shall be based on the Eurocurrency Rate for Dollars at approximately 11:00 a.m. London time on such day, subject to the interest rate floors set forth herein.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the FRBNY Rate or the Adjusted LIBO Rate for Dollars shall be effective from and including the effective date of such change in the Prime Rate, the FRBNY Rate or the Adjusted LIBO Rate, respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.13 hereof, then the Alternate Base Rate shall be the greater of clause (a) and (b) above and shall be determined without reference to clause (c) above.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Orthofix Entity or any of their Affiliates from time to time concerning or relating to bribery or corruption.

“Applicable Foreign Loan Party Documents” has the meaning assigned to such term in Section 3.29.

“Applicable Percentage” means, at any time with respect to any Lender, a percentage equal to a fraction the numerator of which is such Lender’s Commitment at such time and the denominator of which is the aggregate Commitments at such time (provided that, if the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon such Lender’s share of the Aggregate Revolving Exposure at such time); provided that, in accordance with Section 2.19, so long as any Lender shall be a Defaulting Lender, such Defaulting Lender’s Commitment shall be disregarded in the calculations above.

“Applicable Rate” means, for any day, with respect to any Loan, or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “ABR Spread”, “ Eurocurrency Spread” or “Commitment Fee Rate”, as the case may be, based upon the Company’s Total Leverage Ratio as of the most recent determination date, provided that until the first fiscal quarter ending after the Effective Date, the “Applicable Rate” shall be the applicable rates per annum set forth below in Category 4:

 

				
	
Total Leverage

Ratio
	
ABR Spread
	
Eurocurrency

Spread
	
Commitment Fee Rate

	
Category 1

3 2.50 to 1.00
	
1.50%
	
2.50%
	
0.40%

	
Category 2

< 2.50 to 1.00 but

3 1.75 to 1.00
	
1.25%
	
2.25%
	
0.35%

	
Category 3

< 1.75 to 1.00 but

3 1.00 to 1.00
	
1.00%
	
2.00%
	
0.30%

	
Category 4

< 1.00 to 1.00
	
0.75%
	
1.75%
	
0.25%

 

Notwithstanding the foregoing, if the Company or the Borrowers fail to deliver the annual or quarterly consolidated financial statements required to be delivered by them pursuant to Section 5.01, then the Total Leverage Ratio shall be deemed to be in Category 1 during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.

If at any time the Administrative Agent determines that the financial statements upon which the Applicable Rate was determined were incorrect (whether based on a restatement, fraud or otherwise), the Borrowers shall be required to retroactively pay any additional amount that the Borrowers would have been required to pay if such financial statements had been accurate at the time they were delivered.

“Approved Fund” has the meaning assigned to the term in Section 9.04(b).

“Arrangers” means J.P. Morgan Securities LLC and BBVA Compass.

“Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent.

“Availability” means, at any time, an amount equal to (a) the aggregate Commitments minus (b) the Aggregate Revolving Exposure (calculated, with respect to any Defaulting Lender, as if such Defaulting Lender had funded its Applicable Percentage of all outstanding Borrowings).

Credit Agreement (Orthofix), Page 2

 

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.

“Banking Services” means each and any of the following bank services provided to any of the Orthofix Entities by JPMorgan Chase Bank and/or any Lender and/or any of their Affiliates and/or any Person that at the time of entering into any agreement in respect of such bank services was a Lender or an Affiliate of a Lender: (a) credit cards for commercial customers (including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value cards, (c) merchant processing services, and (d) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement, overdrafts and interstate depository network services).

“Banking Services Obligations” means any and all obligations of the Orthofix Entities, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.

“Bank Levy” means (a) the UK Bank Levy or (b) any bank levy of any jurisdiction other than the UK which does not differ materially from the proposals for the design of levies on financial institutions as set out by the International Monetary Fund in the paper “A fair and substantial contribution by the financial sector” published in June 2010 and which is charged wholly or mainly by reference to the balance sheet (including any consolidated balance sheet of any group of which the Administrative Agent or a Lender forms part) of the Administrative Agent or a Lender and/or any member of a group of which the Administrative Agent or a Lender forms part.

“Bankruptcy Event” means, with respect to any Person, when 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, unless such ownership interest results in or provides such Person with immunity from the jurisdiction of courts within the U.S. 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.

“Beneficial Owner” means, with respect to any U.S. federal withholding Tax, the beneficial owner, for U.S. federal income tax purposes, to whom such Tax relates.

“Board” means the Board of Governors of the Federal Reserve System of the U.S.

“Borrower” or “Borrowers” means, individually or collectively, U.S. Borrower and UK Borrower.

“Borrower DTTP Filing” means an HM Revenue & Customs’ Form DTTP2, duly completed and filed by the relevant Borrower within the applicable time limit, which contains the scheme reference number and jurisdiction of tax residence provided by the Lender to the Borrower and the Administrative Agent.

“Borrower Representative” has the meaning assigned to such term in Section 11.01.

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

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

“Burdensome Restrictions” means any consensual encumbrance or restriction of the type described in clause (a) or (b) of Section 6.10.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, New York City, New York; provided that (a) if such day relates to any Eurocurrency Loan or a Letter of Credit denominated in a Foreign Currency, the term “Business Day” shall also exclude any day on which banks are not open for dealings in the applicable Agreed Currency in the London interbank market or (other than in respect of Borrowings denominated in Dollars or Euro) the principal financial center of such Agreed Currency, and (b) when used in connection with a Eurocurrency Loan or a Letter of Credit denominated in Euro, the term “Business Day” shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payments in Euro.

Credit Agreement (Orthofix), Page 3

 

“Capital Expenditures” means, without duplication, any expenditure or commitment to expend money for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Company and its Subsidiaries prepared in accordance with GAAP.

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

“CFC” means a Subsidiary that is a “controlled foreign corporation” under Section 957 of the Code.

“CF Rate” has the meaning assigned to such term in Section 2.13(a).

“CHAMPVA” means, collectively, the Civilian Health and Medical Program of the Department of Veterans Affairs, and all laws, rules, regulations, manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 30% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Company; or (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 by the board of directors of the Company nor (ii) appointed by directors so nominated or approved; or (c) the acquisition of direct or indirect Control of the Company by any Person or group; or (d) the Company shall cease to own, directly or indirectly, free and clear of all Liens or other encumbrances (other than Liens and encumbrances (x) arising under the Loan Documents or (y) described under clause (a) of the definition of Permitted Encumbrances), 100% of the outstanding voting Equity Interests of the Borrowers on a fully diluted basis; or (e) except as permitted by Section 6.03, the Company shall cease to own, directly or indirectly, free and clear of all Liens or other encumbrances (other than Liens and encumbrances (x) arising under the Loan Documents or (y) described under clause (a) of the definition of Permitted Encumbrances), 100% of the outstanding voting Equity Interests of any of the Initial Subsidiary Guarantors; or (f) the acquisition of direct or indirect Control of the Company, any Borrower or any other Loan Party, or (g) except as specifically permitted by the terms of this Agreement, the acquisition of direct or indirect Control of any of the other direct or indirect Subsidiaries of the Company that are not Initial Subsidiary Guarantors.  Notwithstanding the foregoing, the Permitted Reorganization of the Company will not constitute a Change in Control so long as each of the following remain true: (1) the holders of the Equity Interests in the Company immediately before the Permitted Reorganization are substantially the same as the holders of the Equity Interests of the reorganized Company immediately after the Permitted Reorganization, (2) after giving effect to the Permitted Reorganization, 100% of the outstanding voting and non-voting Equity Interests in each of the Borrowers and each of the Initial Subsidiary Guarantors is owned directly or indirectly, free and clear of all Liens or other encumbrances (other than Liens and encumbrances (x) arising under the Loan Documents or (y) described under clause (a) of the definition of Permitted Encumbrances), by the Company, (3) after giving effect to the Permitted Reorganization, the Company is in Control of each Borrower and each of the Initial Subsidiary Guarantors and (4) the Company owns, directly or indirectly, substantially the same Equity Interests in the Loan Parties immediately after the Permitted Reorganization as it owned immediately prior to the Permitted Reorganization.

“Change in Law” means the occurrence after the date of this Agreement (or, with respect to any Issuing Bank or Lender, such later date on which such Issuing Bank or Lender becomes a party to this Agreement) of any of the following: (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.

“Charges” has the meaning assigned to such term in Section 9.17.

“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

Credit Agreement (Orthofix), Page 4

 

“CMS” means The Centers for Medicare and Medicaid Services of the U.S. Department of Health and Human Services, and any Governmental Authority successor thereto.

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

“Colgate” means Colgate Medical Limited, a company formed under the laws of England and Wales.

“Collateral” means (a) any and all property owned, leased or operated by a Person subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself and the Lenders and other Secured Parties, pursuant to the Collateral Documents and (b) any and all other property of any Orthofix Entity, now existing or hereafter acquired, that may at any time be, become or intended to be, subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself and the Lenders and other Secured Parties, to secure the Secured Obligations but which in no event described in clause (a) or (b) above will include any Excluded Asset.

“Collateral Access Agreement” has the meaning assigned to such term in the Security Agreement.

“Collateral Documents” means, collectively, the Security Agreement and any other agreements, instruments and documents executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including, without limitation, all other security agreements, pledge agreements, collateral assignments, loan agreements, notes, guarantees, subordination agreements, pledges, powers of attorney, consents, assignments, contracts, fee letters, notices, leases, financing statements and all other written matter whether theretofore, now or hereafter executed by any Loan Party or any Subsidiary and delivered to the Administrative Agent.

“Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans in the Agreed Currencies and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate permitted Dollar Amount of such Lender’s Revolving Exposure hereunder, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.08 and (b) assignments by or to such Lender pursuant to Section 9.04.  The initial Dollar Amount of each Lender’s Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.  The initial aggregate amount of the Lenders’ Commitments is $125,000,000.

“Commitment Increase” has the meaning assigned to the term in Section 2.08(e).

“Commitment Schedule” means the Schedule attached hereto identified as such.

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

“Communications” has the meaning assigned to such term in Section 9.01(d).

“Company” means Orthofix International N.V., a Curacao corporation, a public company and indirect parent company of the Borrowers, and any other entity that becomes or replaces Orthofix International N.V. pursuant to the terms of the Permitted Reorganization or as otherwise permitted by the requisite Lenders.

“Compliance Certificate” means a compliance certificate prepared in accordance with Section 5.01(c) in substantially the form of Exhibit B or any other form approved of by the Administrative Agent.

“Compliant Dividends” means dividends made by the direct and indirect Subsidiaries of the Company to their direct equity holders that are also Subsidiaries of the Company so long as (i) the intent and result of the payment of all such dividends by the Subsidiaries of the Company is to reach the Company, and (ii) any direct or indirect Subsidiary of the Company that is not a Guarantor and that receives any such dividend must immediately distribute the full amount of such dividend received by it as a dividend or distribution to its direct equity holders, within one (1) Business Day after, in the case of each transfer, its receipt of such dividend (or such longer period as the Administrative Agent may agree in writing in its discretion).

“Computation Date” has the meaning specified in Section 2.22.

“Confidential Healthcare Information” has the meaning specified in Section 9.21.

Credit Agreement (Orthofix), Page 5

 

“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, 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 Party” means the Administrative Agent, each Issuing Bank, each Swingline Lender or any other Lender; and “Credit Parties” means all or any combination of the foregoing as appropriate in the context used.

“Debtor Relief Laws” means the Bankruptcy Code of the U.S., and all other liquidation, conservatorship, bankruptcy, debtor assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the U.S. or other applicable jurisdiction from time to time in effect.

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

“Defaulting Lender” means any Lender 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 and the Borrower Representative 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 any Borrower 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 or the Borrower Representative, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it 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, or (d) has become the subject of a Bankruptcy Event.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.19(d)) upon delivery of written notice of such determination to the Borrower Representative, each Issuing Bank, the Swingline Lender and each Lender.

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

“Disqualified Equity Interests” means any Equity Interest which, by its terms (or by the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures (excluding any maturity that occurs as the result of an optional redemption or repurchase by the issuer thereof) or is mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Secured Obligations under the Loan Documents that are accrued and payable and the termination of the aggregate Commitments and all outstanding Letters of Credit), (b) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part (except as a result of a change of control or asset sale, so long as in each case any and all rights of the holders thereof upon the occurrence of any such change of control or asset sale event shall be subject to the Payment in Full of all Obligations), (c) provides for the scheduled payments of dividends in cash (other than to the extent such dividends are equal to the amount of Taxes payable that are directly attributable to the operations of the business of such Person), or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the Maturity Date.

“Document” has the meaning assigned to such term in the Security Agreement.

“Dollar Amount” of any currency at any date means (a) if such currency is Dollars, the amount of such currency, or (b) if such currency is a Foreign Currency, the equivalent in such currency of Dollars, calculated on the basis of the Exchange Rate for such currency on or as of the most recent Computation Date provided for in Section 2.22.

“Dollars”, “USD” or “$” means the lawful money of the U.S.

Credit Agreement (Orthofix), Page 6

 

“Domestic Non-Loan Party” means any Non-Loan Party that is organized under the laws of the U.S., or any state or commonwealth thereof or under the laws of the District of Columbia (other than any Subsidiary domiciled in Puerto Rico).

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of the U.S., or any state or commonwealth thereof or under the laws of the District of Columbia (other than any Subsidiary domiciled in Puerto Rico).

“EBITDA” means, for any period, Net Income for such period

plus

(a)  without duplication and to the extent deducted in determining Net Income for such period, the sum of, in each case, for such period:

(i)  Interest Expense,

(ii)  the aggregate amount of all income tax expense on the consolidated statements of income of the Company and its Subsidiaries,

(iii)  all amounts attributable to depreciation and amortization expense,

(iv)  any extraordinary, unusual or non-recurring non-cash charges, expenses or losses,

(v)  non-cash stock option and other equity-based compensation expenses,

(vi)  charges, losses, expenses or lost profits to the extent indemnified, insured or reimbursed by a third party, including expenses covered by indemnification provisions in connection with any Acquisition or disposition permitted by this Agreement and lost profits covered by business interruption insurance, in each case, in an amount not to exceed such amount actually reimbursed for such period,

(vii)  letter of credit fees (except to the extent such amount is included in clause (i) above),

(viii)  transaction expenses and other costs, fees and charges relating to the loan transactions consummated under this Agreement and the Loan Documents on the Effective Date, so long as such amounts are incurred prior to March 31, 2016,

(ix)  any non-cash non-recurring costs or charges associated with any modification or termination of pension and post-retirement employee benefit plans,

(x)  goodwill and other intangible impairment charges,

(xi)  any other non-cash charges, including any non-cash expense relating to the vesting of warrants, the granting of stock appreciation rights, stock options or restricted stock, or resulting from the application of purchase accounting associated with any future acquisitions or dispositions, non-cash losses under hedging agreements, and non-cash losses in such period due solely to fluctuations in currency values and any related tax effects (excluding any such non-cash item to the extent that it represents an accrual or reserve for potential cash items in any future period or amortization of a prepaid cash item that was paid in a prior period),

(xii)  cash charges for Settlement Amounts and non-cash reserve or accrual charges for expected future Settlement Amounts not to exceed $7,500,000 in the aggregate,

(xiii)  amortization or write-off of deferred financing costs,

(xiv)  (A)   non-recurring transaction fees, costs and expenses incurred, or amortization thereof, in connection with, to the extent permitted hereunder, any acquisition or other investment, any disposition, any casualty or condemnation event or any issuance of Equity Interests, in each case, whether or not consummated, including non-recurring non-capitalized cash expenses incurred in connection with the consummation of any Acquisition or any proposed Acquisition that ultimately fails to close or is abandoned,

Credit Agreement (Orthofix), Page 7

 

(B)  restructuring costs, integration costs, retention, recruiting, relocation and signing bonuses and expenses, severance costs, systems establishment costs, costs associated with the establishment of new information technology systems, costs associated with office and facility openings, closings and consolidations, and

(C)  costs and expenses of outside legal counsel, accounting advisors and consultants and other professionals in each case related to (x) the Company’s remediation of internal control weaknesses and deficiencies, (y) the investigation of the Division of Enforcement of the Securities and Exchange Commission into certain Company accounting matters (including the Company’s prior restatement of prior period financial results and a related independent review by the Audit Committee of the Company’s Board of Directors), and (z) the securities class action litigation currently pending in the United States District Court for the Southern District of New York arising out of the foregoing matters,

provided that the aggregate amount of all addbacks pursuant to this clause (xiv) shall not exceed 5.0% of EBITDA in any four fiscal quarter period before giving effect to such addbacks,

(xv)  for any period ending on or prior to December 31, 2017, costs and expenses that are publicly disclosed as a result of Project Bluecore in an amount not to exceed (A) for the fiscal year ended December 31, 2015, the sum of (x) the actual amount of such costs and expenses publicly disclosed for the period beginning January 1, 2015 and ending on the Effective Date, which in no event shall exceed $4,800,000 plus (y) $2,500,000 and (B) for the fiscal years ending December 31, 2016 and December 31, 2017, $2,500,000 for each such year, and

(xvi)  any cash reimbursement payments received during such period in respect of items described in clause (b)(iii) taken in a prior period,

provided that, each of the forgoing clauses shall in each case exclude any non-cash charge in respect of an item that was included in Net Income in a prior period and any non-cash charge that relates to the write-down or write-off of Inventory,

minus

(b)  without duplication and to the extent included in Net Income, in each case for such period:

(i)   the aggregate amount of all income tax benefit on the consolidated statements of income of the Company and its Subsidiaries,

(ii)  any cash payments made during such period in respect of non-cash charges described in clause (a)(xi) taken in a prior period, and

(iii)   any extraordinary, unusual or non-recurring gains and any non-cash items of income (excluding any such non-cash item to the extent it represents the reversal of an accrual or reserve for potential cash item in any prior period), all calculated for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.

“ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.

“Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar®, Debt Domain, Syndtrak and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and the Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

“Environmental Laws” means all foreign and domestic laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in 

Credit Agreement (Orthofix), Page 8

 

any way to the environment, preservation or reclamation of natural resources, the management, Release or threatened Release of any Hazardous Material or to health and safety matters.

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any Orthofix Entity directly or indirectly resulting from or based upon (a) any violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

“Equipment” has the meaning assigned to such term in the Security Agreement.

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing.

“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 or any of its direct or indirect Subsidiaries, 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) the failure to satisfy the “minimum funding standard” (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) the incurrence by any Orthofix Entity or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by any Orthofix Entity or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by any Orthofix Entity or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal of any Orthofix Entity or any ERISA Affiliate from any Plan or Multiemployer Plan; or (g) the receipt by any Orthofix Entity or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Orthofix Entity or any ERISA Affiliate of any notice, concerning the imposition upon any Orthofix Entity or any ERISA Affiliate of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Euro”, “euro” or “€” means the single currency of the participating member states of the European Union.

“Eurocurrency”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bear interest at a rate determined by reference to the Eurocurrency Rate.

“Eurocurrency Rate” means, with respect to any Eurocurrency Borrowing in any Agreed Currency for any applicable Interest Period, the London interbank offered rate administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for such Agreed Currency for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on either of such Reuters pages, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion (the “LIBOR Screen Rate”) as of the Specified Time on the Quotation Day for such Interest Period; provided that if any LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided, that, if a LIBOR Screen Rate shall not be available at the applicable time for the applicable Interest Period (the “Impacted Interest Period”) with respect to the applicable Agreed Currency, then the Eurocurrency Rate shall be the Interpolated Rate; provided, that, if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided, further, that all of the aforesaid shall be subject to Section 2.13.

“Event of Default” has the meaning assigned to such term in Article VII.

“Exchange Rate” means, on any day, with respect to any Foreign Currency, the rate at which such Foreign Currency may be exchanged into Dollars, as set forth at approximately 11:00 a.m., Local Time, on such date on the relevant Reuters World Currency Page for such Foreign Currency (subject to delivery to the Borrower Representative of a “screen shot” of such Reuters World Currency Page). In the event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate with respect to 

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such Foreign Currency shall be determined by reference to such other publicly available service for displaying exchange rates as may be reasonably selected by the Administrative Agent (subject to delivery to the Borrower Representative of a “screen shot” of such other service) or, in the event no such service is selected, such Exchange Rate shall instead be calculated (subject to delivery to the Borrower Representative of a notice setting forth the basis for such calculation) on the basis of the arithmetical average of the spot exchange rates of the Administrative Agent for such Foreign Currency on the London market at 11:00 a.m., London time, on such date for the purchase of Dollars with such Foreign Currency, 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 may use any reasonable method it deems appropriate to determine such rate (subject to delivery to the Borrower Representative of a notice setting forth the basis for such determination), and such determination shall be conclusive absent manifest error.

“Excluded Assets” means, collectively:

(a)  assets as to which the Administrative Agent and the Borrower Representative agree in writing that the cost of creating or perfecting a pledge of, or a security interest in, such assets is excessive in relation to the value of the security to be afforded thereby;

(b)  any fee owned real property and any leasehold rights and interests in real property (other than interests resulting from Collateral Access Agreements);

(c)  any motor vehicles and other assets subject to certificates of title to the extent a Lien thereon cannot be perfected by the filing of a UCC financing statement or equivalent;

(d)  any rights or interest in any lease, contract, license or license agreement covering personal property or real property and/or such assets subject thereto, so long as under the terms of such lease, contract, license or license agreement, or Requirement of Law with respect thereto, the grant of a security interest or Lien therein for the benefit of the Secured Parties (1) is prohibited, (2) would give any other party to such lease, contract, license or license agreement, instrument or indenture the right to terminate its obligations thereunder, or (3) is permitted only with the consent of another party (including, without limitation, any Governmental Authority) (or would render such lease, contract, license or license agreement cancelled, invalid or unenforceable) and such prohibition has not been or is not waived or the consent of the other party to such lease, contract, license or license agreement has not been or is not otherwise obtained; provided, that, this exclusion shall in no way be construed to apply if any such prohibition is unenforceable under the UCC or any other Requirement of Law (including any Debtor Relief Law) or so as to limit, impair or otherwise affect the unconditional continuing security interests in and Liens for the benefit of the Secured Parties upon any rights or interests in or to monies due or to become due under any such lease, contract, license or license agreement (including any receivables) and provided further that, with respect to any lease, contract, license or license agreement entered into after the Effective Date, the Loan Parties shall use commercially reasonable efforts to permit Liens for the benefit of the Secured Parties on each such lease, contract, license or license agreement and avoid prohibitions of the types described in clauses (1) through (3) above;

(e)  any application for registration of a trademark filed in the United States Patent and Trademark Office on an intent to use basis to the extent that the grant of a security interest in any such trademark application would adversely affect the validity or enforceability or result in cancellation or voiding of such trademark application, provided, however, that such trademark applications shall no longer be considered Excluded Assets upon the filing of a Statement of Use or an Amendment to Allege Use has been filed and accepted in the United States Patent and Trademark Office;

(f)  Excluded Deposit Accounts;

(g)  any assets that are subject to a Lien permitted under Section 6.02(d) if the contract or other agreement in which the Lien is granted (or the documentation providing for the Indebtedness secured thereby) prohibits the creation of any other Lien on such assets; provided, that immediately upon the ineffectiveness, lapse or termination of any such Lien permitted under Section 6.02(d), such assets shall no longer be considered Excluded Assets and the Collateral shall include all such rights and interest in such assets as if such Lien permitted under Section 6.02(d) had never been in effect;

(h)  voting Equity Interests in excess of 65% of the total voting Equity Interests in any Subsidiary of the U.S. Borrower that is also (i) a CFC, (ii) a Domestic Subsidiary whose immediate parent is a CFC or (iii) any Subsidiary where all or substantially all of the assets of that Subsidiary (directly or through Subsidiaries) consists of Equity Interests of one or more Foreign Subsidiaries that are CFCs; provided, that the foregoing exclusions shall, with respect to any Foreign Subsidiary (or Domestic Subsidiary of a CFC) that is a CFC at the time of grant of such pledge or hypothecation, automatically cease to apply at any time such Foreign Subsidiary is not a CFC;

(i)  any treasury stock of the Company or other margin stock (within the meaning of Regulation U of the Board), in each case, unless the Lenders have made any necessary filings with the Board in connection therewith; and

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(j)  Equity Interests in partnerships, joint ventures and non-Wholly-Owned Subsidiaries if and for so long as the terms of any applicable organizational document, joint venture agreement, partnership or shareholders’ agreement of such Person existing on the Effective Date prohibit the creation of any other Lien on such Equity Interests (or with respect to any partnership, joint venture or non-Wholly-Owned Subsidiary acquired after the Effective Date, as of the date of such acquisition; provided the terms of any such organizational document, joint venture agreement, partnership or shareholders’ agreement was not entered into in connection with or anticipation of such acquisition).

“Excluded Deposit Accounts” means any deposit account (a) held at any banking institution in a jurisdiction other than the U.S., England or Wales, (b) established solely as a payroll account and other zero-balance disbursement account, (c)  held in a fiduciary capacity and established in connection with employee benefit plans in the ordinary course of business or pursuant to applicable legal requirements or (d) escrow accounts established in connection with Permitted Acquisitions or Investments.

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. Federal and United Kingdom withholding Taxes (excluding (x) the portion of United Kingdom withholding Taxes with respect to which the applicable Lender is a Treaty Lender and (y) United Kingdom withholding Taxes on payments made by any guarantor under any guarantee of the obligations)  imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Commitment (other than pursuant to an assignment request by the Borrowers under Section 2.18(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.16, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.16(f) or (g)(i), (d) any U.S. federal withholding Taxes imposed under FATCA and (e) any Bank Levy.

“FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Code and any law, regulation, rule, promulgation, or official agreement implementing an official government agreement with respect to the foregoing.

“FDA” means the Food and Drug Administration.

“Federal Funds Effective Rate” means, for any day, the rate calculated by the FRBNY based on such day’s federal funds transactions by depository institutions (as determined in such manner as the New York Fed shall set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as the federal funds effective rate.

“Fee Letter” means, collectively, (a) the fee letter, dated August 6, 2015, by and among the Borrowers, JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC, (b) the fee letter, dated August 6, 2015, by and among the Borrowers and Compass Bank dba BBVA Compass and (c) any other fee letter executed by any one or more of the Orthofix Entities from time to time providing for the payment of fees in connection with the Transactions.

“Financial Officer” means the chief financial officer, principal accounting officer, vice president of tax and treasury, or treasurer, in each case of U.S. Borrower, or any other natural person designated and authorized by the Board of Directors of the U.S. Borrower to act as the representative of the Borrower Representative, so long as in each case evidence of such appointment together with a duly completed and executed incumbency certificate with respect to such person, acceptable to the Administrative Agent in its reasonable discretion, is delivered to the Administrative Agent prior to such person’s inclusion in this definition of “Financial Officer”.

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“Financial Statements” has the meaning assigned to such term in Section 5.01.

“Foreign Currencies” means Agreed Currencies other than Dollars.

“Foreign Currency Payment Office” of the Administrative Agent means, for each Foreign Currency, the office, branch, affiliate or correspondent bank of the Administrative Agent for such currency as specified from time to time by it, in the case of the Administrative Agent by notice to the Borrower Representative and each Lender.

“Foreign Lender” means (a) if a Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if a Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which such Borrower is resident for tax purposes.

“Foreign Pension Plan” means any plan, scheme, fund (including any superannuation fund) or other similar program established, sponsored or maintained outside the U.S. by any Orthofix Entity primarily for the benefit of employees of such Orthofix Entity residing outside the U.S., which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code.

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

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

“FRBNY 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; provided that if both such rates are not so published for any day that is a Business Day, the term “FRBNY Rate” means the rate quoted for such day for a federal funds transaction at 11:00 a.m. on such day received by the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

“FTC” means the Federal Trade Commission .

“Funding Account” has the meaning assigned to such term in Section 4.01(h).

“GAAP” means generally accepted accounting principles in the U.S.

“Governmental Authority” means the government of the U.S., any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including, without limitation, any supra national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision) or any successor or similar authority to any of the foregoing.

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation  of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

“Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.

“Guarantors” means all Loan Guarantors and all other entities and Persons, including, without limitation, any Orthofix Entity not already a Loan Party, who have delivered an Obligation Guaranty, and the term “Guarantor” means each or any one of them individually.

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“Hazardous Materials” means:  (a) any substance, material, or waste that is included within the definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic substances,” “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law; (b) those substances listed as hazardous substances by the U.S. Department of Transportation (or any successor agency) (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is petroleum, petroleum-related, or a petroleum by-product, asbestos or asbestos‐containing material, polychlorinated biphenyls, flammable, explosive, radioactive, freon gas, radon, or a pesticide, herbicide, or any other agricultural chemical.

“Health Care Laws” means, collectively, any and all domestic and foreign, federal, state or local laws, rules, regulations, orders, administrative manuals, guidelines and requirements relating to any of the following: (a) fraud and abuse (including the following statutes, as amended, modified or supplemented from time to time and any successor statutes thereto and regulations promulgated from time to time thereunder: the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Stark Law (42 U.S.C. § 1395nn and §1395(q)), the civil False Claims Act (31 U.S.C. § 3729 et seq.), the federal health care program exclusion provisions (42 U.S.C. § 1320a-7), the Civil Monetary Penalties Act (42 U.S.C. § 1320a-7a), and the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Pub. L. No. 108-173)); (b) any Medical Reimbursement Program; (c) the licensure or regulation of healthcare providers, suppliers, professionals, facilities or payors (including the DMEPOS Supplier Standards established by the Health Care Financing Administration and all statutes and regulations administered by the FDA); (d) the provision of, or payment for, health care services, items or supplies; (e) quality, safety certification and accreditation standards and requirements administered by a Governmental Authority; (f) the billing, coding or submission of claims or collection of accounts receivable or refund of overpayments; (g) HIPAA; (h) the practice of medicine and other health care professions or the organization of medical or professional entities; (i) fee-splitting prohibitions; (j) requirements for maintaining domestic or foreign, federal, state and local tax-exempt status of any Orthofix Entity; (k) charitable trusts or charitable solicitation laws; (l) health planning or rate-setting laws, including laws regarding certificates of need and certificates of exemption; and (m) any and all other applicable domestic or foreign, federal, state or local health care laws, rules, codes, regulations, manuals, orders, ordinances, professional or ethical rules, administrative guidance and requirements, as the same may be amended, modified or supplemented from time to time.

“Health Care Permits” means any and all permits, licenses, authorizations, certificates, certificates of need, accreditations and plans of third-party accreditation agencies (such as the Community Health Accreditation Program and the Joint Commission for Accreditation of Healthcare Organizations) that are (a) necessary to enable any Orthofix Entity to provide services, participate in and receive payment under any Medical Reimbursement Program or other Third Party Payor Arrangement, as applicable, or otherwise continue to conduct its business as it is conducted on the Effective Date, or (b) required under any Health Care Law.

“HIPAA” means (a) the Health Insurance Portability and Accountability Act of 1996; (b) the Health Information Technology for Economic and Clinical Health Act (Title XIII of the American Recovery and Reinvestment Act of 2009); and (c) any foreign or domestic, state and local laws regulating the privacy and/or security of individually identifiable information, in each case as the same may be amended, modified or supplemented from time to time, any successor statutes thereto, and any and all rules or regulations promulgated from time to time thereunder.

“HHS” means the U.S. Department of Health and Human Services and any successor thereof.

“HMRC DT Treaty Passport scheme” means the Board of H.M. Revenue and Customs Double Taxation Treaty Passport scheme.

“Immaterial Subsidiary” means each Subsidiary of the Company that has assets with a book value of less than the Dollar Amount of $500,000.

“Impacted Interest Period” has the meaning assigned to such term in the definition of “Eurocurrency Rate”.

“Incremental Amendment” has the meaning assigned to the term in Section 2.08(f).

“Incremental Commitments” has the meaning assigned to the term in Section 2.08(e).

“Incremental Lender” has the meaning assigned to the term in Section 2.08(f).

“Incremental Term A Loan” has the meaning assigned to the term in Section 2.08(e).

“Incremental Term A Loan Commitment” has the meaning assigned to the term in Section 2.08(e).

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“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, including without limitation, intercompany advances, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding (i) current accounts payable incurred in the ordinary course of business, (ii) deferred compensation funded into applicable trust arrangements and (iii) earnouts), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed (the amount of such Indebtedness being the lesser of (i) the principal amount of such Indebtedness and (ii) the book value of all assets subject to such Lien), (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) obligations under any earn‐out in connection with any Acquisition or other Investment permitted hereunder, provided such earnout has been earned and is due to be paid as of the date of determination, (l) any other Off‐Balance Sheet Liability, and (m) obligations, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (i) any and all Swap Agreements, and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction.  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.  For the avoidance of doubt, “Indebtedness” of an Orthofix Entity will include, without duplication, all Intercompany Loans of such Orthofix Entity.

“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 any Loan Party under any Loan Document and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.

“Indemnitee” has the meaning assigned to such term in Section 9.03(b).

“Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).

“Information” has the meaning assigned to such term in Section 9.12.

“Initial Subsidiary Guarantors” means each of Colgate, Swiftsure, UK Ltd., Orthofix Inc., Osteogenics Inc., AMEI Technologies Inc., Neomedics, Inc. and Blackstone Medical, Inc..

“Intercompany Loans” means those Intercompany Loans between any Orthofix Entities existing on the Effective Date and listed on Schedule 6.01(a) and each subsequent Intercompany Loan between any Orthofix Entities permitted to be incurred under the terms of Section 6.01.

“Interest Coverage Ratio” means, for any period, the ratio of (a) EBITDA for such period minus Unfinanced Capital Expenditures (excluding Capital Expenditures representing the purchase price for any Permitted Acquisition or similar Investment permitted by Section 6.04) for such period to (b) cash Interest Expense for such period.

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

“Interest Expense” means, with reference to any period, total interest expense (including that attributable to Capital Lease Obligations) of the Company and its Subsidiaries for such period with respect to all outstanding Indebtedness of the Company and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptances and net costs under Swap Agreements in respect of interest rates, to the extent such net costs are allocable to such period in accordance with GAAP), calculated for the Company and its Subsidiaries on a consolidated basis for such period in accordance with GAAP, but excluding (a) deferred financing fees and (b) amendment fees.

“Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan), the last Business Day of each calendar quarter and the Maturity Date, (b) with respect to any Eurocurrency 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 Eurocurrency 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 

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day of such Interest Period and the Maturity Date, and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid and the Maturity Date.

“Interest Period” means with respect to any Eurocurrency 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 (or, with the consent of each Lender, twelve (12) months) thereafter, as the Borrowers may elect; provided, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurocurrency Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (b) any Interest Period pertaining to a Eurocurrency Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  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.

“Intermediate Level Company” means one or more of (a) Orthofix II B.V., a company formed under the laws of the Netherlands, (b) Orthofix Limited, and (c) Orthofix International B.V., a company formed under the laws of the Netherlands, as applicable in the context used.

“Interpolated Rate” means, at any time, for any Interest Period and any Agreed Currency, the rate per annum (rounded to the same number of decimal places as the LIBOR Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period (for which the LIBOR Screen Rate is available for the applicable Agreed Currency) that is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the LIBOR Screen Rate is available for the applicable Agreed Currency) that exceeds the Impacted Interest Period, in each case, at of the Specified Time on the Quotation Day for such Interest Period.

“Inventory” has the meaning assigned to such term in the Security Agreement.

“Investments” has the meaning assigned to such term in Section 6.04.

“IRS” means the U.S. Internal Revenue Service.

“Issuing Bank” means, individually and collectively, each of JPMorgan Chase Bank, in its capacity as the issuer of Letters of Credit hereunder, and any other Revolving Lender from time to time designated by the Borrower Representative as an Issuing Bank, with the consent of such Revolving Lender and the Administrative Agent, and their respective successors in such capacity as provided in Section 2.05(i).  Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by its Affiliates, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate (it being agreed that such Issuing Bank shall, or shall cause such Affiliate to, comply with the requirements of Section 2.05 with respect to such Letters of Credit).  At any time there is more than one Issuing Bank, all singular references to the Issuing Bank shall mean any Issuing Bank, either Issuing Bank, each Issuing Bank, the Issuing Bank that has issued the applicable Letter of Credit, or both (or all) Issuing Banks, as the context may require.

“Issuing Bank Sublimit” means, as of the Effective Date, the Dollar Amount of $25,000,000 in the case of JPMorgan Chase Bank; provided that any Issuing Bank shall be permitted at any time to increase or reduce its Issuing Bank Sublimit, subject to the consent of the Borrower Representative, upon providing five (5) days’ prior written notice thereof to the Administrative Agent and the Borrowers.

“Italy Sub-Facility Amendment Documentation” has the meaning assigned to such term in Section 2.25(c).

“Italy Sub-Facility Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Italy Sub-Facility Loans in Euros to Orthofix-Italy, expressed as an amount representing the maximum aggregate permitted Dollar Amount of such Lender’s Revolving Italy Sub-Facility Loans, as such commitment may be reduced or increased from time to time in accordance herewith and with the Italy Sub-Facility Amendment Documentation.

“Italy Sub-Facility Lenders” means Lenders with an Italy Sub-Facility Commitment.

“Italy Uncommitted Sub-Facility” has the meaning assigned to such term in Section 2.25(a).

Credit Agreement (Orthofix), Page 15

 

“Joinder Agreement” means a Joinder Agreement in substantially the form of Exhibit C or any other form approved by the Administrative Agent.

“JPMorgan Chase Bank” means JPMorgan Chase Bank, N.A., a national banking association, in its individual capacity, and its successors.

“LC Collateral Account” has the meaning assigned to such term in Section 2.05(j).

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

“LC Exposure” means, at any time, the Dollar Amount of the sum of (a) the aggregate undrawn amount of all Letters of Credit outstanding at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of any Borrower.  The LC Exposure of any Revolving Lender at any time shall be its Applicable Percentage of the aggregate LC Exposure at such time.

“Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall have become a Lender hereunder pursuant to Section 2.08 or an Assignment and Assumption, or an amendment to this Agreement, other than any such Person that ceases to be a Lender hereunder pursuant to an Assignment and Assumption or an amendment to this Agreement.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender and the Issuing Bank.

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower Representative and the Administrative Agent.

“Letters of Credit” means standby letters of credit issued pursuant to this Agreement, and the term “Letter of Credit” means any one of them or each of them singularly, as the context may require.  Letters of Credit may be issued in any Agreed Currency, subject to the Maximum Foreign Currency Amount.

“LIBOR Screen Rate” has the meaning assigned to such term in the definition of “Eurocurrency 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 vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

“Loan Documents” means, collectively, this Agreement, each promissory note issued pursuant to this Agreement, any Letter of Credit application and any agreements between any Borrower and the Issuing Bank regarding the Issuing Bank’s Issuing Bank Sublimit or the respective rights and obligations between such Borrower and the Issuing Bank in connection with the issuance of Letters of Credit, each Collateral Document, the Loan Guaranty, any Obligation Guaranty, that certain Indemnity in respect of Pledged Shares, to JPMorgan Chase Bank, N.A as Administrative Agent, Swingline Lender and Issuing Bank and the Lenders, from Orthofix Limited, Colgate and Swiftsure, dated August 31, 2015, and each other agreement, instrument, document and certificate identified in Section 4.01 executed by or on behalf of any Loan Party or any other Guarantor or any employee of a Loan Party or any employee of another Guarantor in favor of, the Administrative Agent or any Lender and including each other pledge, issued in connection with the other Loan Documents, and any UCC filing, power of attorney, consent, assignment, contract, notice, letter of credit agreement and each other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, any other Guarantor or any employee of any Loan Party or any other Guarantor, and delivered to the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby (other than any Swap Agreement and any agreement entered into in respect of Banking Services).  Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.

“Loan Guarantor” means each Loan Party.

“Loan Guaranty” means Article X of this Agreement.

“Loan Parties” means, collectively, the Company, the Borrowers, the Initial Subsidiary Guarantors and any other Person who becomes a party to this Agreement pursuant to a Joinder Agreement and their successors and assigns, and the term “Loan Party” shall mean any one of them or all of them individually, as the context may require.

Credit Agreement (Orthofix), Page 16

 

“Loans” means the loans and advances made by the Lenders pursuant to this Agreement, including Swingline Loans.

“Local Time” means (a) in the case of a Loan, Borrowing or LC Disbursement denominated in Dollars, New York City time, and (b) in the case of a Loan, Borrowing or LC Disbursement denominated in a Foreign Currency, local time (it being understood that such local time shall mean London, England time unless otherwise notified by the Administrative Agent).

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of the Orthofix Entities taken as a whole, (b) the ability of the Loan Parties (taken as a whole) to perform their obligations under the Loan Documents, (c) any material portion of the Collateral, or the Administrative Agent’s Liens (on behalf of itself and the other Secured Parties) on any material portion of the Collateral or the priority of such Liens, or (d) the validity or enforceability of any of the Loan Documents or the rights or remedies of the Administrative Agent, the Issuing Bank or the Lenders under any of the Loan Documents (except with respect to Liens on Collateral perfected by possession, but only to the extent that the Administrative Agent has not obtained, or does not maintain, possession of such collateral).

“Material Agreement” means any contract or other arrangement, whether written or oral, to which any Loan Party is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect.

“Material Domestic Subsidiary” means a Domestic Subsidiary of the Company that is not an Immaterial Subsidiary.  Upon consummation of any Permitted Acquisition, the Company shall determine whether any Domestic Subsidiaries of the Company formed or acquired in connection with such Permitted Acquisition or the Subsidiary consummating such Permitted Acquisition (if not already a Material Domestic Subsidiary) would qualify as a Material Domestic Subsidiary pursuant to the criteria set forth above.  If any of such Subsidiaries so qualifies as a Material Domestic Subsidiary, it shall be deemed to be a Material Domestic Subsidiary as of the date of consummation of such Permitted Acquisition.

“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Company and its Subsidiaries in an aggregate principal amount exceeding $3,000,000 (or the Dollar Amount thereof in any Foreign Currency).  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Company or any of its Subsidiaries in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Company or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

“Material Intellectual Property” means any trademarks, tradenames, copyrights, patents and other intellectual property with a book value of $100,000 or more.

“Maturity Date” means August 31, 2020 (if the same is a Business Day, or if not then the immediately next succeeding Business Day), or any earlier date on which the Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.

“Maximum Foreign Currency Amount” means $50,000,000.

“Maximum Rate” has the meaning assigned to such term in Section 9.17.

“Medicaid” means that means-tested entitlement program under Title XIX, P.L. 89-87, of the Social Security Act, which provides Federal grants to States for medical assistance based on specific eligibility criteria, as set forth at Section 1396, et seq. of Title 42 of the U.S. Code, as amended, and any statute succeeding thereto.

“Medicaid Certification” means recognition by a state agency or other such entity administering a particular state’s Medicaid program that a health care provider or supplier is in compliance with all the conditions of participation set forth in the appropriate state and federal Medicaid Regulations.

“Medicaid Provider Agreement” means an agreement entered into between a state agency or other such entity administering the Medicaid program and a health care provider or supplier under which the health care provider or supplier agrees to provide services for Medicaid patients in accordance with the terms of the agreement and Medicaid Regulations.

“Medicaid Regulations” means (a) all Federal statutes (whether set forth in Title XIX of the Social Security Act or elsewhere) affecting the medical assistance program established by Title XIX of the Social Security Act and any statues succeeding thereto, (b) all applicable provisions of all Federal rules, regulations, manuals and orders of all Governmental Authorities promulgated pursuant to or in connection with the statues described in clause (a) above and all Federal administrative, reimbursement and other 

Credit Agreement (Orthofix), Page 17

 

guidelines of all Governmental Authorities having the force of law promulgated pursuant to or in connection with the statues described in clause (a) above, (c) all state statutes and plans for medical assistance enacted in connection with the statutes and provisions described in clauses (a) and (b) above, and (d) all applicable provisions of all rules, regulations, manuals and orders of all Governmental Authorities promulgated pursuant to or in connection with the statutes described in clause (c) above and all state administrative, reimbursement and other guidelines of all Governmental Authorities having the force of law promulgated pursuant to or in connection with the statutes described in clause (c) above, in each case as may be amended, supplemented or otherwise modified from time to time.

“Medical Reimbursement Programs” means (a) Medicare, (b) Medicaid, (c) the Federal Employees Health Benefit Program under 5 U.S.C. §§ 8902 et seq., (d) TRICARE, (e) CHAMPVA, (f) any other federal, state or foreign program that provides reimbursement for Medical Services or (g) if applicable within the context of this Agreement, any agent, administrator, administrative contractor, intermediary or carrier for any of the foregoing.

“Medical Services” means medical and health care items, services or supplies provided to a patient, including medical equipment, physician services, nurse and therapist services, dental services, hospital services, skilled nursing facility services, comprehensive outpatient rehabilitation services, home health care services, residential and out-patient behavioral healthcare services, and other medicine or health care equipment or items provided by an Orthofix Entity to a patient, hospital or other medical entity or Person for a valid and proper medical or health purpose.

“Medicare Certification” means recognition by CMS or an entity under contract with CMS that the health care provider or supplier is in compliance with all of the conditions of participation set forth in the Medicare Regulations.

“Medicare Provider Agreement” means an agreement entered into between CMS or other such entity administering the Medicare program on behalf of CMS, and a health care provider or supplier under which the health care provider or supplier agrees to provide services for Medicare patients in accordance with the terms of the agreement and Medicare Regulations.

“Medicare” means that government-sponsored entitlement program under Title XVIII, P.L. 89-87, of the Social Security Act, which provides for a health insurance system for eligible elderly and disabled individuals, as set forth at Section 1395, et seq. of Title 42 of the U.S. Code, as amended, and any statute succeeding thereto.

“Medicare Regulations”  means, collectively, all Federal statutes (whether set forth in Title XVIII of the Social Security Act or elsewhere) affecting the health insurance program for the aged and disabled established by Title XVIII of the Social Security Act and any statutes succeeding thereto; together with all applicable provisions of all rules, regulations, manuals and orders and administrative, reimbursement and other guidelines having the force of law of all Governmental Authorities (including, without limitation, HHS, CMS, the OIG, or any person succeeding to the functions of any of the foregoing) promulgated pursuant to or in connection with any of the foregoing having the force of law, as each may be amended, supplemented or otherwise modified from time to time.

“Moody’s” means Moody’s Investors Service, Inc.

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

“Net Income” means, for any period, the consolidated net income (or loss) from continuing operations determined for the Company and its Subsidiaries, on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) except as provided in Section 1.05, the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Company or any of its Subsidiary, (b) the income (or deficit) of any Person (other than a Subsidiary) in which the Company or any Subsidiary has an ownership interest, except to the extent that any such income is actually received by the Company or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of a Non‐Loan Party, to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary.

“Net Proceeds” means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) in the case of a casualty, insurance proceeds and (ii) in the case of a condemnation or similar event, condemnation awards and similar payments, minus (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made 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) and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such event occurred or 

Credit Agreement (Orthofix), Page 18

 

the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer of the Borrower Representative).

“Newco” has the meaning assigned to such term in the definition of “Permitted Reorganization”.

“Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(i).

“Non-Loan Party” means an Orthofix Entity that is not a Loan Party.

“Non-Loan Party Available Funds” means, on any date of determination, $30,000,000 minus the sum of (a) the aggregate Dollar Amount of all Investments by Loan Parties constituting investments in Equity Interests of Non-Loan Parties made under Section 6.04(c), plus (b) without duplication, the aggregate principal Dollar Amount of all Investments by Loan Parties constituting loans and advances made by one or more Loan Parties to one or more Non-Loan Parties under Section 6.04(d) outstanding on such date of determination, plus (c) without duplication, the aggregate Dollar Amount of all Investments by one or more Loan Parties constituting Guarantees made by one or more Loan Parties of Indebtedness of one or more Non-Loan Parties under Section 6.04(e) outstanding on such date of determination, plus (d) the aggregate Dollar Amount of all sales, transfers and dispositions of assets (i) where a Loan Party is the transferor and the transferee is a Non-Loan Party and/or (ii) where a U.S. Loan Party is the transferor and the transferee is a Loan Party that is a Foreign Subsidiary, in each case made under Section 6.05(b) from the Effective Date through and including such date of determination, plus (e) without duplication, the aggregate Dollar Amount of all Restricted Payments made under Section 6.08(g) by one or more Loan Parties to one or more Non-Loan Parties from the Effective Date through and including such date of determination, plus (f) the aggregate amount of all LC Exposure outstanding on such date of determination as a result of Letters of Credit issued to support the obligations of Non-Loan Parties under Section 2.05, plus (g) without duplication, the aggregate Dollar Amount of Indebtedness constituting Swap Agreement Obligations owed by one or more Loan Parties to one or more Non-Loan Parties incurred under Section 6.01(k) and outstanding on such date of determination.

“Obligated Party” has the meaning assigned to such term in Section 10.02.

“Obligation Guaranty” means any Guarantee of all or any portion of the Secured Obligations executed and delivered to the Administrative Agent for the benefit of the Secured Parties by a guarantor who is not a Loan Party.

“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), obligations and liabilities of any of the Loan Parties, or any of the other Orthofix Entities to any of the Lenders, the Administrative Agent, the Issuing Bank or any indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, in connection with this Agreement or any of the other Loan Documents or in respect of any of the Loans made or reimbursement or other obligations incurred thereunder or any of the Letters of Credit or other instruments at any time evidencing any thereof.

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.

“Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or obligation under any so-called “synthetic lease” transaction entered into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person (other than operating leases).

“OIG” means the Office of Inspector General of HHS and any successor thereof.

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Taxes (other than a connection arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced, any Loan Document), or sold or assigned an interest in any Loan, Letter of Credit, Commitment or any Loan Document.

“Orthofix Entity” means on any date of determination, the Company and each of its direct and indirect domestic and foreign Subsidiaries, including, without limitation, each of the Borrowers and the other Loan Parties.

Credit Agreement (Orthofix), Page 19

 

“Orthofix-Italy” means Orthofix S.r.l., a company formed under the laws of Italy.

“Orthofix Limited” means Orthofix Limited, a company formed under the laws of the United Kingdom.

“OSHA” means the Occupational Safety and Health Administration.

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.18).

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurocurrency borrowings denominated in Dollars by U.S.–managed banking offices of depository institutions (as such composite rate shall be determined by the FRBNY as set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as an overnight bank funding rate (from and after such date as the New York Fed 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 assigned to such term in Section 9.04(c).

“Participant Register” has the meaning assigned to such term in Section 9.04(c).

“Payment in Full of all Obligations” means all Commitments shall have expired or been terminated and the principal of and interest on each Loan and all fees, expenses and other amounts payable under any Loan Document shall have been paid in full (other than contingent obligations with respect to which no claim has been asserted) and all Letters of Credit shall have expired or terminated (other than Letters of Credit as to which other arrangements with respect thereto satisfactory to Administrative Agent and the applicable Issuing Bank in their sole discretion shall have been made), in each case without any pending draw, and all LC Disbursements shall have been reimbursed.

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

“Permitted Acquisition” means any Acquisition or any series of related Acquisitions by the Company, the U.S. Borrower or any Domestic Subsidiary that is a Loan Party, or any Wholly Owned Domestic Subsidiary that will become a Loan Party, in a transaction that satisfies each of the following requirements:

(a)  there shall exist no Default both immediately before, and after giving effect to, such Acquisition;

(b)  such Acquisition is not a hostile or contested acquisition;

(c)  the Target is (i) in the case of any Acquisition of Equity Interests, organized under applicable U.S. and state laws, or applicable laws of England and Wales, and (ii) not engaged, directly or indirectly, in any line of business other than the businesses in which the Company and its Subsidiaries are engaged on the Effective Date and any business activities that are substantially similar, related, or incidental thereto;

(d)  both before and after giving effect to such Acquisition and the Loans (if any) requested to be made in connection therewith, each of the representations and warranties in the Loan Documents is true and correct (except any such representation or warranty which relates to a specified prior date);

(e)  to the extent the total consideration of any Permitted Acquisition is in excess of $10,000,000 or the proceeds of a Revolving Loan will be used to fund such Acquisition, as soon as available, but not less than ten (10) Business Days prior to such Acquisition (or such shorter period as may be agreed to by the Administrative Agent in its discretion), the Borrower Representative has provided the Administrative Agent (i) notice of such Acquisition together with a reasonably detailed description of the material terms of such Permitted Acquisition (including, without limitation, the purchase price and method and structure of payment) and of each Target, (ii) to the extent available, financial statements of the Target for the previous two years and year-to-date financial statements of the Target and (iii) a copy of all other business and financial information reasonably requested by the Administrative Agent including pro forma financial statements, statements of cash flow, and Availability projections;

Credit Agreement (Orthofix), Page 20

 

(f)  if such Acquisition is an acquisition of the Equity Interests of a Person, such Acquisition is structured so that such Target shall become a direct or indirect Wholly Owned Domestic Subsidiary of the U.S. Borrower and a Loan Party;

(g)  if such Acquisition is an acquisition of assets, such Acquisition is structured so that a Borrower or another U.S. Loan Party or a Wholly Owned Domestic Subsidiary that will become a Loan Party upon consummation of the Acquisition shall acquire such assets;

(h)  if such Acquisition is an acquisition of Equity Interests, such Acquisition will not result in any violation of Regulation U of the Board;

(i)  if such Acquisition involves a merger or a consolidation involving (i) a Borrower or the Company, such Borrower or the Company, as applicable, shall be the surviving Person, (ii) an Initial Subsidiary Guarantor, a Wholly Owned Subsidiary that is a Loan Party domiciled in the same country as such Initial Subsidiary Guarantor shall be the surviving Person, or (iii) any other Loan Party (other than a Borrower, the Company or an Initial Subsidiary Guarantor), the surviving Person shall be a Loan Party or become a Loan Party upon consummation of the Acquisition;

(j)  the total consideration (including without limitation, cash, assumed Indebtedness, earnout payments and any other deferred payment but excluding any consideration in the form of Equity Interests of the Company) paid for portions of Acquisitions of a Target involving assets situated outside the U.S., including but not limited to foreign subsidiaries of such Target, together with all outstanding investments made under Section 6.04(m), shall not exceed the Dollar Amount of $15,000,000 in the aggregate over the term of this Agreement.

(k)  in connection with an Acquisition of the Equity Interests of any Person, all Liens on property of such Person shall be terminated unless the Administrative Agent and the Required Lenders in their sole discretion consent otherwise, and in connection with an Acquisition of the assets of any Person, all Liens on such assets shall be terminated, except in each case to the extent permitted to exist under Section 6.02;

(l)  the Borrowers shall certify to the Administrative Agent (and provide the Administrative Agent with a pro forma calculation in form and substance reasonably satisfactory to the Administrative Agent) that, after giving pro-forma effect to the completion of such Acquisition the Total Leverage Ratio shall be less than 2.5 to 1.00 for the most recently completed four fiscal quarter period prior to such Acquisition;

(m)  all actions required to be taken with respect to any newly acquired or formed Wholly Owned Subsidiary of a Borrower or a Loan Party, as applicable, required under Section 5.13 shall have been taken; and

(n)  the Borrower Representative shall have delivered to the Administrative Agent an executed copy of the acquisition agreement (including all schedules and exhibits thereto) and all other material agreements (together with a list, prepared in good faith by the Borrower Representative, of all other executed agreements among an Orthofix Entity, the sellers of a Target, the Target, or an Affiliate of the Target) and material instruments executed by any Orthofix Entity relating to such Acquisition, no later than five (5) Business Days after such Acquisition is consummated.

“Permitted Encumbrances” means:

(a)  Liens imposed by law for Taxes that are not yet due or as to which the period of grace, if any, related thereto has not expired or are being contested in compliance with Section 5.04;

(b)  carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than sixty (60) days or which are being contested in good faith by appropriate proceedings; provided that adequate reserves with respect thereto are maintained on the books of the Company or any of its Subsidiaries, as the case may be, in conformity with GAAP;

(c)  pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;

(d)  deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

Credit Agreement (Orthofix), Page 21

 

(e)  judgment Liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII or Liens securing appeal or other surety bonds related to such judgments; and

(f)  easements, zoning restrictions, rights-of-way, minor defects or irregularities in title and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of any Orthofix Entity;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness, except with respect to clause (e) above.

“Permitted Investments” means:

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

(b)  readily marketable direct obligations issued by any state of the U.S. or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year from the date of acquisition thereof and having, at the time of the acquisition thereof, a rating of at least P-1 from Moody’s or at least A-1 from S&P;

(c)  investments in commercial paper maturing within one year from the date of acquisition thereof and having, at such date of acquisition, a rating of at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P;

(d)  investments in certificates of deposit, bankers’ acceptances and time deposits maturing within one year from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, a Lender or any domestic office of any commercial bank organized under the laws of the U.S. or any state thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000;

(e)  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 (d) above;

(f)  money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and

(g)  with respect to investments made by any Foreign Subsidiary, foreign investments substantially comparable to any of the foregoing in connection with the managing of cash of any such Foreign Subsidiary.

“Permitted Jurisdiction” means the UK and, so long as

(a)  the currency of such jurisdiction is a lawful currency that is readily available, freely transferable and convertible into Dollars,

(b)  such jurisdiction remains a jurisdiction generally accepted by U.S. national banks and other U.S. financial institutions for borrowers and guarantors of secured revolving credit facilities (including guarantors of obligations of U.S. borrowers), and

(c)  the Administrative Agent and each Lender consents in its sole discretion in writing to such jurisdiction prior to any such Permitted Reorganization to such jurisdiction,

any of Luxembourg, Ireland, Switzerland or the Netherlands.

“Permitted Operations” means, with respect to Orthofix Limited only, the purchase, sale and distribution of products, including without limitation the purchase of product from Orthofix-Italy and the sale and distribution of such product in the ordinary course of business in accordance with past practices, and activities incidental thereto.

Credit Agreement (Orthofix), Page 22

 

“Permitted Reorganization” means the re-domicile of the Company to a Permitted Jurisdiction so long as each of the following conditions has been satisfied:

(a)  at the time of such re-domicile and immediately after giving effect thereto, no Default shall have occurred and be continuing or would result therefrom;

(b)  the corporate structure of the Company and its Subsidiaries after giving effect to such re-domicile, and the terms, conditions and documentation necessary to effectuate such re‐domicile shall be reasonably acceptable to the Administrative Agent; it being understood that the changing of the Company’s domicile to a Permitted Jurisdiction may include (i) the creation of Subsidiaries of the Company, (ii) certain mergers and/or dissolutions (including a merger by which the current Company becomes a subsidiary of a new, U.S. publically listed entity (the “Newco”), and by which newly SEC registered shares of common stock of Newco are exchanged for shares of common stock of the Company), (iii) releases of certain Guarantees and/or certain of the Collateral, provided that no Loan Guaranty or Obligation Guaranty or Collateral will be released in connection with such re-domicile unless (A) in the case of Collateral, the Secured Obligations are (substantially concurrently therewith) secured by substantially the same Collateral as immediately prior to the re-domicile and (B) in the case of a release of a Loan Guaranty or Obligation Guaranty, such Guarantor either has no value, is being dissolved with its assets (if any) having been transferred to another Guarantor or such Guarantor is being merged into another (surviving) Guarantor; and

(c)  Newco or such other re-domiciled public company shall (i) immediately prior to, or concurrently with such re-domicile, (A) execute and deliver a Joinder Agreement and shall automatically become a Loan Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents, (B) grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property or assets of such Loan Party of the type which constitutes Collateral and execute and deliver a Security Agreement and each other Collateral Document to substantially the same extent as the Company executed prior to such re domicile and (C) deliver such legal opinions and related documents as the Administrative Agent may reasonably request, and (ii) in all cases after such re-domicile be treated as the Company under this Agreement and the other Loan Documents.

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

“Pounds Sterling”, “GBP” or “£” means the lawful money of the United Kingdom.

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which any Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Platform” means Debt Domain, Intralinks®, Syndtrak or a substantially similar electronic transmission system.

“Prepayment Event” means any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Loan Party or Orthofix-Italy with a fair value immediately prior to such event equal to or greater than the Dollar Amount of $2,000,000.

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank as its prime rate in effect at office located at 270 Park Avenue, New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

“Project Bluecore” means the Company’s previously publicly reported worldwide process and systems improvement initiative designed to improve the reliability and efficiency of the Company’s systems, processes and reporting structures (including but not limited to implementation and/or re-implementation of certain Oracle ERP platforms and the simplification and reorganization of certain Company subsidiaries), as well as to reduce long-term overhead expenses.

“Projections” has the meaning assigned to such term in Section 5.01(e).

“Protected Health Information” means “protected health information” as defined under 45 C.F.R. 160.103, as amended from time to time.

“Public-Sider” means a Lender whose representatives may trade in securities of the Company or its controlling person or any of its Subsidiaries while in possession of the financial statements provided by the Company under the terms of this Agreement.

Credit Agreement (Orthofix), Page 23

 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.

“Quotation Day” means, with respect to any Eurocurrency Borrowing for any Interest Period, (i) if the currency is Pounds Sterling, the first day of such Interest Period, (ii) if the currency is Euro, two TARGET2 Days before the first day of such Interest Period, (iii) for any other currency, two Business Days prior to the commencement of such Interest Period the Business Day, unless, in each case, market practice differs in the relevant market where the Eurocurrency Rate for such currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day will be the last of those days).

“RCP” has the meaning assigned to such term in Section 5.07.

“Real Property” means all real property that was, is now or may hereafter be owned, occupied or otherwise controlled by any Orthofix Entity pursuant to any contract of sale, lease or other conveyance of any legal interest in any real property to any Orthofix Entity.

“Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, or any combination thereof (as the context requires).

“Reference Banks” means, in relation to Loans denominated in any Agreed Currency such banks that have consented to act as a reference bank as may be appointed by the Administrative Agent in consultation with the Borrower Representative.

“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) supplied to the Administrative Agent at its request by the Reference Banks (as the case may be) as of the Specified Time on the Quotation Day for Loans in the applicable currency and the applicable Interest Period:

(a)  in relation to Loans denominated in Euros, as the rate which the relevant Reference Bank in relation to Euros, as the rate which the relevant Reference Bank assesses to be the rate at which Euro interbank term deposits in euros and for the relevant period are offered for spot value (T+2) by one prime bank to another prime bank within the EMU zone; and

(b)  in relation to Loans in any currency other than Euros, as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers in reasonable market size in that currency and for that period.

“Refinance Indebtedness” has the meaning assigned to such term in Section 6.01(f).

“Register” has the meaning assigned to such term in Section 9.04.

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

“Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migrating, disposing, or dumping of any substance into the environment.

“Report” means reports prepared by the Administrative Agent or another Person showing the results of appraisals, field examinations or audits pertaining to the assets of the Company and its Subsidiaries from information furnished by or on behalf of the Borrowers and the Company, after the Administrative Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the Administrative Agent.

“Required Lenders” means, at any time, Lenders (other than Defaulting Lenders) having Revolving Exposure and unused Commitments representing more than 50% of the sum of the Aggregate Revolving Exposure and unused Commitments at such time; provided that, for purposes of declaring the Loans to be due and payable pursuant to Article VII, and for all purposes after the Loans 

Credit Agreement (Orthofix), Page 24

 

become due and payable pursuant to Article VII or the Commitments expire or terminate, then, as to each Lender, clause (a) of the definition of Swingline Exposure shall only be applicable for purposes of determining its Revolving Exposure to the extent such Lender shall have funded its participation in the outstanding Swingline Loans.

“Requirement of Law” means, with respect to any Person, (a) the charter, articles or certificate of organization or incorporation and bylaws or operating, management or partnership agreement, or other organizational or governing documents of such Person and (b) any domestic or foreign statute, law (including common law), treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any arbitrator or court or other Governmental Authority (including Environmental Laws and Health Care Laws), in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

“Responsible Officer” means any executive officer or director of any Loan Party, including without limitation, any Financial Officer.

“Restricted Payment” means any of the following:  (i) any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest in any of the Orthofix Entities, (ii) any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Equity Interests of any of the Orthofix Entities, (iii) any option, warrant or other right to acquire any Equity Interests in any of the Orthofix Entities, (iv) any payment with respect to any earnout obligations or (v) any payment or prepayment of principal of, premium, if any, or interest on, redemption, purchase, retirement, defeasance, sinking fund or similar payment with respect to, any Subordinated Indebtedness, including without limitation, Intercompany Loans owed by any Loan Party.

“Revolving Exposure” means, with respect to any Lender, at any time, the sum of the aggregate outstanding principal Dollar Amount of the sum of such Lender’s Revolving Loans, its LC Exposure and Swingline Exposure at such time.

“Revolving Italy Sub-Facility Loans” means revolving loans made to Orthofix-Italy pursuant to the Italy Sub-Facility Amendment Documentation.

“Revolving Lender” means, as of any date of determination, a Lender with a Commitment or, if the aggregate Commitments have terminated or expired, a Lender with Revolving Exposure.

“Revolving Loan” means a Loan made pursuant to Section 2.01.

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

“Sanctioned Country” means, at any time, a country, region or territory which is the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State or by the United Nations Security Council, the European Union or any European Union member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

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

“SEC” means the Securities and Exchange Commission of the U.S.

“Secured Obligations” means all Obligations, together with all (a) Banking Services Obligations and (b) Swap Agreement Obligations; provided, however, that the definition of “Secured Obligations” shall not create any guarantee by any Guarantor of (or grant of security interest by any Guarantor to support, as applicable) any Excluded Swap Obligations of such Guarantor for purposes of determining any obligations of any Guarantor.

“Secured Parties” means (a) the Administrative Agent, (b) the Lenders, (c) each Issuing Bank, (d) each provider of Banking Services, to the extent the Banking Services Obligations in respect thereof constitute Secured Obligations, (e) each counterparty to any Swap Agreement, to the extent the obligations thereunder constitute Secured Obligations, (f) the beneficiaries of each indemnification 

Credit Agreement (Orthofix), Page 25

 

obligation undertaken by any Loan Party or any other Person under any Loan Document, and (g) the successors and assigns of each of the foregoing.

“Security Agreement” means that certain (a) Pledge and Security Agreement (including any and all supplements thereto), dated as of the date hereof, among certain of the Loan Parties and the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, (b) that certain Debenture, dated as of the date hereof among the UK Borrower and the UK Subsidiaries and the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties and (c) any other pledge or security agreement entered into, after the date of this Agreement by any other Loan Party (as required by this Agreement or any other Loan Document) or any other Person for the benefit of the Administrative Agent and the other Secured Parties, in each case as may be amended, restated, supplemented or otherwise modified from time to time.

“Settlement Amounts” shall mean the amount of any civil or criminal fines, penalties, judgments, damages, forfeitures or other amounts payable (including attorney fees and expenses) in connection with the resolution and settlement of the any legal or regulatory matters by the Borrowers or Guarantors; provided that the resolution of the such matters shall not cause or result in a Material Adverse Effect.

“Specified Time” means as of 11:00 a.m., London time.

“Statement” has the meaning assigned to such term in Section 2.17(g).

“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, liquid asset, fees or similar requirements (including any marginal, special, emergency or supplemental reserves or other requirements) established by any central bank, monetary authority, the Board, the Financial Conduct Authority, the Prudential Regulation Authority, the European Central Bank or other Governmental Authority for any category of deposits or liabilities customarily used to fund loans in the applicable currency, expressed in the case of each such requirement as a decimal.  Such reserve, liquid asset, fees or similar requirements shall include without limitation those imposed pursuant to Regulation D of the Board.  Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset, fee or similar requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under any applicable law, rule or regulation, including without limitation Regulation D of the Board or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve, liquid asset, fee or similar requirement.

“Subordinated Indebtedness” of a Person means any Indebtedness of such Person, the payment of which is subordinated to payment of the Secured Obligations to the written reasonable satisfaction of the Administrative Agent.

“Subordination Provisions” has the meaning assigned to such term in clause (t) of Article VII.

“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity, the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

“Subsidiary” means any direct or indirect subsidiary of the Company, a Borrower or a Loan Party, as applicable.  In this Agreement and in each Loan Document, each reference to a Subsidiary that does not specify the applicable parent company is a reference to a Subsidiary of the Company.

“Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Company or its Subsidiaries shall be a Swap Agreement.

“Swap Agreement Obligations” means any and all obligations of the Orthofix Entities, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any Swap Agreement permitted hereunder with JPMorgan Chase Bank, any Lender or any Affiliate 

Credit Agreement (Orthofix), Page 26

 

of JPMorgan Chase Bank or a Lender or any Person that was a Lender or an Affiliate of a Lender at the time such Swap Agreement was entered into, and (b) any cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction permitted hereunder with JPMorgan Chase Bank, any Lender or any Affiliate of JPMorgan Chase Bank or a Lender or any Person that was a Lender or an Affiliate of a Lender at the time such Swap Agreement was entered into.

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.

“Swiftsure” means Swiftsure Medical Limited, a company formed under the laws of England and Wales.

“Swingline Commitment” means the obligation of the Swingline Lender to make Swingline Loans in an aggregate principal amount not to exceed $25,000,000.

“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Revolving Lender at any time shall be the sum of (a) its Applicable Percentage of the total Swingline Exposure at such time other than with respect to any Swingline Loans made by such Revolving Lender in its capacity as the Swingline Lender and (b) the principal amount of all Swingline Loans made by such Revolving Lender in its capacity as the Swingline Lender outstanding at such time (less the amount of participations funded by the other Lenders in such Swingline Loans).

“Swingline Lender” means JPMorgan Chase Bank, in its capacity as lender of Swingline Loans hereunder.  Any consent required of the Administrative Agent or the Issuing Bank shall be deemed to be required of the Swingline Lender and any consent given by JPMorgan Chase Bank in its capacity as Administrative Agent or Issuing Bank shall be deemed given by JPMorgan Chase Bank in its capacity as Swingline Lender as well.

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

“Target” has the meaning assigned to such term in the definition of “Acquisition”.

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which was launched on November 19, 2007 (or, if such payment system ceases to be operative, such other payment system (if any) reasonably determined by the Administrative Agent to be a suitable replacement) for the settlement of payments in Euro.

“TARGET2 Day” means a day that TARGET2 is open for the settlement of payments in euro.

“Taxes” means any and 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.

“Third Party Payor” means (a) a commercial medical insurance company, health maintenance organization, professional provider organization or other third party payor that reimburses providers for Medical Services provided to individual patients, (b) a nonprofit medical insurance company (such as the Blue Cross, Blue Shield entities), (c) the U.S. government or a political subdivision thereof (including, without limitation, CMS), or any state, county or municipality or department, agency or instrumentality thereof, that is responsible for payment of an Account, chattel paper or general intangible under any Medical Reimbursement Program, or any agent, administrator, intermediary or carrier for the foregoing, making payments under a Medical Reimbursement Program and (d) any other domestic or foreign government or Governmental Authority, a political subdivision thereof or any municipality or department, agency or instrumentality thereof, that is responsible for payment of an Account, chattel paper or general intangible under any Medical Reimbursement Program, or any agent, administrator, intermediary or carrier for the foregoing, making payments under a Medical Reimbursement Program.

“Third Party Payor Arrangement” shall mean a written agreement or arrangement with a Third Party Payor pursuant to which the Third Party Payor pays all or a portion of the charges of any Orthofix Entity for providing Medical Services.

“Total Indebtedness” means, at any date, the aggregate principal amount of all Indebtedness (other than Indebtedness described in clauses (k) and (m) of the definition thereof unless (i) in the case of Indebtedness described in clause (k) thereof, the amount of such earnout has been earned, is due to be paid as of the date of determination and remains due and payable after the applicable date of payment or (ii) in the case of Indebtedness described in clause (m) thereof, such Indebtedness is reflected on the 

Credit Agreement (Orthofix), Page 27

 

balance sheet of the Company as a liability in accordance with GAAP) determined for the Company and its Subsidiaries on a consolidated basis at such date, in accordance with GAAP.

“Total Leverage Ratio” means, on any date, the ratio of (a) Total Indebtedness on such date to (b) EBITDA for the period of four consecutive fiscal quarters ended on or most recently prior to such date.

“Transactions” means the execution, delivery and performance by the Borrowers and the other Loan Parties of this Agreement and the other Loan Documents, as applicable, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.

“Treaty Lender” means a Lender which is entitled under a double taxation agreement with the United Kingdom to claim a reduction in United Kingdom withholding tax.

“TRICARE” means, collectively, the program of medical benefits covering former and active members of the uniformed services and certain of their dependents (including TRICARE Prime, TRICARE Extra and TRICARE Standard), financed and administered by the HHS, and all laws, rules, regulations, manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.

“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 Eurocurrency Rate or the Alternate Base Rate.

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or in any other state, the laws of which are required to be applied in connection with the issue of perfection of security interests.

“UK” and “United Kingdom” mean the United Kingdom of Great Britain and Northern Ireland.

“UK Bank Levy” means the bank levy provided for in Section 73 and Schedule 19 of the English law Finance Act 2011.

“UK Borrower” means (a) Victory and (b) any other Borrower (i) that is organized or formed under the laws of the United Kingdom or (ii) payments from which under this Agreement or any other Loan Document are subject to withholding Taxes imposed by the laws of the United Kingdom.

“UK Subsidiary” means any Subsidiary that is organized under the laws of the United Kingdom; provided, that, in this Agreement and in each Loan Document, each reference to a UK Subsidiary that does not specify the applicable parent company is a reference to a UK Subsidiary of Orthofix Limited.

“UK Ltd” shall mean Orthofix UK Ltd, a company formed under the laws of England and Wales.

“Unfinanced Capital Expenditures” means, for any period, Capital Expenditures made during such period which are not financed from the proceeds of any Indebtedness (other than the Revolving Loans; it being understood and agreed that, to the extent any Capital Expenditures are financed with Revolving Loans, such Capital Expenditures shall be deemed Unfinanced Capital Expenditures) or issuance of Equity Interests; provided that “Unfinanced Capital Expenditures” shall not include (a) expenditures in respect of normal replacements and maintenance which are properly charged to current operations, (b) expenditures made in connection with the replacement, substitution or restoration of assets to the extent financed (i) from insurance proceeds paid on account of the loss of or damage to the assets being replaced or restored, (ii) with awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced or (iii) from the net cash proceeds of dispositions permitted hereunder, or (c) expenditures made as a tenant as leasehold improvements during such period to the extent reimbursed by the landlord during such period.

“Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is:  (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.

“U.S.” means the United States of America.

“U.S. Borrower” has the meaning assigned to such term in the preamble.

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“U.S. Loan Parties” means the U.S. Borrower and each other Loan Party that is a Domestic Subsidiary.

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

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.16(f)(ii)(B)(3).

“USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

“Victory” has the meaning assigned to such term in the preamble.

“Wholly Owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which are owned by such Person and/or by one or more wholly owned Subsidiaries of such Person.

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

SECTION 1.02.  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving 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 context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply) and all judgments, orders and decrees of all Governmental Authorities.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignments set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f) any reference in any definition to the phrase “at any time” or “for any period” shall refer to the same time or period for all calculations or determinations within such definition, and (g) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.04.  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, if after the date hereof there occurs any change in GAAP or in the application thereof on the operation of any provision hereof and the Borrower Representative notifies the Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate the effect of such change in GAAP or in the application thereof (or if the Administrative Agent notifies the Borrower Representative that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.  Notwithstanding 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 (i) without giving effect to any election under Financial Accounting Standards Board Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Company or any Subsidiary at “fair value”, as defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Financial Accounting Standards Board Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

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SECTION 1.05.  Pro Forma Adjustments for Acquisitions and Dispositions.  To the extent a Borrower or any Subsidiary makes any Acquisition permitted pursuant to Section 6.04 or disposition of assets outside the ordinary course of business permitted by Section 6.05 during the period of four fiscal quarters of the Company most recently ended, the Total Leverage Ratio shall be calculated after giving pro forma effect thereto (including pro forma adjustments arising out of events which are directly attributable to the Acquisition or the disposition of assets, are factually supportable and are expected to have a continuing impact, in each case as determined on a basis consistent with Article 11 of Regulation S-X of the Securities Act of 1933, as amended, as interpreted by the SEC, and as certified by a Financial Officer of such Borrower), as if such Acquisition or such disposition (and any related incurrence, repayment or assumption of Indebtedness) had occurred in the first day of such four-quarter period.

SECTION 1.06.  Status of Obligations.  In the event that any Borrower, any other Loan Party or any other Orthofix Entity shall at any time issue or have outstanding any Subordinated Indebtedness, such Borrower shall take or cause such other Loan Party or Orthofix Entity to take all such actions as shall be necessary to cause the Secured Obligations to constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without limiting the foregoing, the Secured Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words of similar import under and in respect of any indenture or other agreement or instrument under which any Subordinated Indebtedness of an Orthofix Entity is outstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.

ARTICLE II

The Credits

SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth herein, each Lender severally (and not jointly) agrees to make Revolving Loans in Agreed Currencies to the Borrowers from time to time during the Availability Period in an aggregate principal amount that will not result (after giving effect to any application of proceeds of such Borrowing pursuant to Section 2.09(a)) in (a) such Lender’s Revolving Exposure exceeding such Lender’s Commitment, (b) the amount of the Aggregate Revolving Exposure denominated in Foreign Currencies exceeding the Maximum Foreign Currency Amount or (c) the Aggregate Revolving Exposure exceeding the aggregate Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.

SECTION 2.02.  Loans and Borrowings.

(a)  Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably in accordance with their respective Commitments of the applicable Class.  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.  ABR Loans may only be borrowed by the U.S. Borrower and must be in Dollars.  Swingline Loans (i) may only be borrowed by the U.S. Borrower, (ii) must be ABR Loans made in Dollars, and (iii) shall be made in accordance with the procedures set forth in Section 2.04.

(b)  Subject to Section 2.13, each Revolving Borrowing shall be comprised entirely of ABR Loans denominated in Dollars or Eurocurrency Loans in the designated Agreed Currency as the Borrower Representative may request in accordance herewith, provided that all Revolving Borrowings made on the Effective Date must be made as ABR Borrowings but may be converted into Eurocurrency Borrowings in accordance with Section 2.07.  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 (and in the case of an Affiliate, the provisions of Sections 2.13, 2.14, 2.15 and 2.16 shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in accordance with the terms of this Agreement.

(c)  At the commencement of each Interest Period for any Eurocurrency Borrowing denominated in Dollars, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000.  At the commencement of each Interest Period for any Eurocurrency Borrowing denominated in Euros, such Borrowing shall be in an aggregate amount that is an integral multiple of €500,000 and not less than €1,000,000.  At the commencement of each Interest Period for any Eurocurrency Borrowing denominated in Pounds Sterling, such Borrowing shall be in an aggregate amount that is an integral multiple of £500,000 and not less than £1,000,000.  At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $1,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the 

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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 $100,000 and not less than $100,000, provided that a Swingline Loan may be in the aggregate amount that is required to finance the reimbursement of an LC Disbursement denominated in Dollars as contemplated by Section 2.05(e).   Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of ten (10) Eurocurrency Borrowings outstanding.

(d)  Notwithstanding any other provision of this Agreement, the Borrowers shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

SECTION 2.03.  Requests for Borrowings.  To request a Borrowing, the Borrower Representative shall notify the Administrative Agent of such request at the appropriate office set forth in Section 9.01, either in writing (delivered by hand, fax or other electronic communication to which the Administrative Agent has agreed to in writing (an “Acceptable Communication”)) in any form approved by the Administrative Agent and signed by the Borrower Representative or, in the case of Borrowings by the U.S. Borrower in Dollars, by telephone (a) in the case of a Eurocurrency Borrowing denominated in Dollars, not later than 12:00 noon Local Time, three Business Days before the date of the proposed Borrowing, (b) in the case of a Eurocurrency Borrowing denominated in a Foreign Currency, not later than 12:00 noon Local Time, four Business Days before the date of the proposed Borrowing or (c) in the case of an ABR Borrowing, not later than noon, Local Time, on the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 10:00 a.m., Local Time, on the date of the proposed Borrowing.  Each such telephonic Borrowing Request for a Borrowing by the U.S. Borrower in Dollars shall be irrevocable and shall be confirmed promptly by hand delivery, fax or Acceptable Communication to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower Representative.  No telephonic request may be made with respect to (x) any Borrowing in a Foreign Currency or (y) the U.K. Borrower.  Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.01:

(i)  the Class of Borrowing, the aggregate amount of the requested Borrowing, and a breakdown of the separate wires comprising such Borrowing;

(ii)  name of the applicable Borrower(s);

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

(iv)  whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

(v)  in the case of a Eurocurrency Borrowing, the Agreed Currency applicable thereto;

(vi)  in the case of a Eurocurrency Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period.”

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing by the U.S. Borrower in Dollars.  If no Interest Period is specified with respect to any requested Eurocurrency Borrowing, then the applicable Borrower(s) shall be deemed to have selected an Interest Period of one month’s duration.  If no Borrower is specified, then the requested Borrowing shall be deemed to be requested by the U.S. Borrower.  Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

SECTION 2.04.  Swingline Loans.

(a)  Subject to the terms and conditions set forth herein, from time to time during the Availability Period, the Swingline Lender agrees to make Swingline Loans denominated in Dollars to the U.S. Borrower, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding the Swingline Lender’s Swingline Commitment, (ii) the Swingline Lender’s Revolving Exposure exceeding its Commitment, or (iii) the Aggregate Revolving Exposures exceeding the aggregate Commitments; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan.  Within the foregoing limits and subject to the terms and conditions set forth herein, the U.S. Borrower may borrow, prepay and reborrow Swingline Loans.  To request a Swingline Loan, the Borrower Representative shall notify the Administrative Agent of such request by telephone (confirmed by fax or Acceptable Communication), not later than 2:00 p.m., Local Time, on the day of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan.  The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower Representative.  The Swingline Lender shall 

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make each Swingline Loan available to the U.S. Borrower by means of (i) a credit to the Funding Account(s), (ii) a wire transfer of funds upon the written instruction of the Borrower Representative and including specific wiring information required by the Swingline Lender with respect to making any such wire, (iii) 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 Issuing Bank, and (iv) in the case of repayment of another Loan or fees or expenses as provided by Section 2.17(c), by remittance to the Administrative Agent to be distributed to the Lenders, on the requested date of such Swingline Loan.

(b)  The Swingline Lender may by written notice given to the Administrative Agent require the Revolving Lenders 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 Revolving Lenders will participate.  Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Revolving Lender hereby absolutely and unconditionally agrees, promptly upon receipt of such notice from the Administrative Agent (and in any event, if such notice is received by 11:00 a.m., Local Time, on a Business Day no later than 4:00 p.m., Local Time on such Business Day and if received after 11:00 a.m., Local Time, “on a Business Day” shall mean no later than 9:00 a.m. Local Time on the immediately succeeding Business Day), to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Revolving 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 Revolving Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 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 Revolving Lenders.  The Administrative Agent shall notify the Borrower Representative 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 the Borrowers (or other party on behalf of the Borrowers) 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 Revolving 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 the U.S. Borrower for any reason.  The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrowers of any default in the payment thereof.

SECTION 2.05.  Letters of Credit.

(a)  General.  Subject to the terms and conditions set forth herein, the Borrower Representative, on behalf of a Borrower, may request the issuance of standby Letters of Credit denominated in an Agreed Currency as the applicant thereof for the support of the obligations of the Company or any Subsidiary thereof, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Availability Period; provided that Letters of Credit issued to support the obligations of Non-Loan Parties may only be issued to the extent of Non-Loan Party Available Funds on the date of issuance.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrowers to, or entered into by the Borrowers with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.  Each Borrower unconditionally and irrevocably agrees that, in connection with any Letter of Credit issued for the support of any Subsidiary’s obligations as provided in the first sentence of this paragraph, such Borrower will be fully responsible for the reimbursement of LC Disbursements in accordance with the terms hereof, the payment of interest thereon and the payment of fees due under Section 2.11(b) to the same extent as if it were the sole account party in respect of such Letter of Credit (each Borrower hereby irrevocably waiving any defenses that might otherwise be available to it as a guarantor or surety of the obligations of such Subsidiary that is an account party in respect of any such Letter of Credit).  Notwithstanding anything herein to the contrary, the Issuing Bank shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit (i) the proceeds of which would be made available to any Person (A) to fund any activity or business of or with any Sanctioned Person, or in any Sanctioned Country, or (B) in any manner that would result in a violation of any Sanctions by any party to this Agreement, (ii) if 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 such Letter of Credit, or any Requirement of Law relating 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 such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing Bank in good faith deems material to it, or (iii) if the issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to 

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letters of credit generally; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed not to be in effect on the Effective Date for purposes of clause (ii) above, regardless of the date enacted, adopted, issued or implemented.

(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 Borrower Representative shall hand deliver or fax (or transmit by other electronic communication to which the Issuing Bank has agreed to in writing) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension, but in any event no less than three Business Days) 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 (which such amount shall not be less than the Dollar Amount of $50,000.00), the Agreed Currency applicable thereto, the name and address of the beneficiary thereof, and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the applicable Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the sum of (x) the Dollar Amount of the aggregate undrawn amount of all outstanding Letters of Credit issued by the Issuing Bank at such time plus (y) the Dollar Amount of the aggregate amount of all LC Disbursements made by the Issuing Bank that have not yet been reimbursed by or on behalf of the applicable Borrower shall not exceed its Issuing Bank Sublimit, (ii) no Revolving Lender’s Revolving Exposure shall exceed its Commitment; (iii) the Aggregate Revolving Exposure shall not exceed the aggregate Commitments and (iv) the aggregate outstanding principal Dollar Amount of the sum of all Eurocurrency Loans in Foreign Currencies plus LC Exposures in Foreign Currencies shall not exceed the Maximum Foreign Currency Amount.  The Borrowers may, at any time and from time to time, reduce the Issuing Bank Sublimit of any Issuing Bank with the consent of such Issuing Bank; provided that the Borrowers shall not reduce the Issuing Bank Sublimit of any Issuing Bank if, after giving effect to such reduction, the conditions set forth in clauses (i) through (iv) above shall not be satisfied.  Notwithstanding the foregoing or anything to the contrary contained herein, no Issuing Bank shall be obligated to issue or modify any Letter of Credit if, immediately after giving effect thereto, the outstanding LC Exposure in respect of all Letters of Credit issued by such Person and its Affiliates would exceed such Issuing Bank’s Issuing Bank Sublimit.

(c)  Expiration Date.  Each Letter of Credit shall expire (or be subject to termination or non-renewal by notice from the Issuing Bank to the beneficiary thereof) 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, including, without limitation, any automatic renewal provision, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date (unless the Borrowers have entered into arrangements satisfactory to the Issuing Bank to cash collateralize any such Letter of Credit).

(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 Issuing Bank or the Revolving Lenders, the Issuing Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrowers for any reason.  Each Revolving 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 or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

(e)  Reimbursement.  If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement in the applicable Agreed Currency not later than 11:00 a.m., Local Time, on (i) the Business Day that the Borrower Representative receives notice of such LC Disbursement, if such notice is received prior to 9:00 a.m., Local time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower Representative receives such notice, if such notice is received after 9:00 a.m., Local time, on the day of receipt; provided that, if such LC Disbursement denominated in U.S. Dollars and is greater than or equal to $100,000, the U.S. 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 Revolving Borrowing or Swingline Loan in the amount of such LC Disbursement 

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and, to the extent so financed, the Borrowers’ obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan.  If the Borrowers fail to make such payment when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment then due from the Borrowers in respect thereof, and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Percentage in the applicable Agreed Currency of the payment then due from the Borrowers, 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 Revolving Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Revolving Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrowers pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank, as their interests may appear.  Any payment made by a Revolving Lender pursuant to this paragraph to reimburse the 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 Borrowers of their obligation to reimburse such LC Disbursement.  If the Borrowers’ reimbursement of, or obligation to reimburse, any amounts in any Foreign Currency would subject a Credit Party to any stamp duty, ad valorem charge or similar tax that would not be payable if such reimbursement were made or required to be made in Dollars, the Borrowers shall, at their option, either (x) pay the amount of any such tax requested by such Credit Party or (y) reimburse each LC Disbursement made in such Foreign Currency in Dollars, in an amount equal to the Dollar Amount of such LC Disbursement on the date such LC Disbursement is made.

(f)  Obligations Absolute.  The Borrowers’ joint and several obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein or herein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrowers’ obligations hereunder.  None of the Administrative Agent, the Revolving Lenders or the Issuing Bank, 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 the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrowers to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by any Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence, bad faith or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

(g)  Disbursement Procedures.  The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  The Issuing Bank shall promptly notify the Administrative Agent and the Borrower Representative by telephone (confirmed by fax or other electronic communication to which the Issuing Bank has agreed to in writing) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrowers of their obligation to reimburse the Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

(h)  Interim Interest.  If the Issuing Bank shall make any LC Disbursement, then, unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans (or if such LC Disbursement is denominated in a Foreign Currency, the rate determined by the Administrative Agent in accordance with banking industry rules and conventions on interbank compensation for such Foreign Currency plus the then effective Applicable Rate with respect to Eurocurrency Loans) and such interest shall be due and payable on the date when such reimbursement is due; provided that, if the Borrowers fail to reimburse such LC 

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Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.12(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.

(i)  Replacement of the Issuing Bank.  The Issuing Bank may be replaced at any time by written agreement among the Borrower Representative, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Revolving Lenders of any such replacement of the 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(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit then outstanding and issued by it prior to such replacement, 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 Borrower Representative receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure representing greater than 50% of the aggregate LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrowers shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Revolving Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of the amount of the LC Exposure as of such date plus accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described in clause (h) or (i) of Article VII.  The Borrowers also shall deposit cash collateral in accordance with this paragraph as and to the extent required by Section 2.10(c) or Section 2.19.  Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Secured Obligations.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over the LC Collateral Account and the Borrowers hereby grant the Administrative Agent a security interest in the LC Collateral Account and all moneys or other assets on deposit therein or credited thereto.  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 Borrowers’ risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of the aggregate LC Exposure), be applied to satisfy other Secured Obligations.  If the Borrowers are required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrowers within three (3) Business Days after all such Events of Default have been cured or waived as confirmed in writing by the Administrative Agent.

(k)  Issuing Bank Reports to the Administrative Agent.  Unless otherwise agreed by the Administrative Agent, each Issuing Bank shall, in addition to its notification obligations set forth elsewhere in this Section, report in writing to the Administrative Agent (i) periodic activity (for such period or recurrent periods as shall be requested by the Administrative Agent) in respect of Letters of Credit issued by such Issuing Bank, including all issuances, extensions, amendments and renewals, all expirations and cancelations and all disbursements and reimbursements, (ii) reasonably prior to the time that such Issuing Bank issues, amends, renews or extends any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the stated amount of the Letters of Credit issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension (and whether the amounts thereof shall have changed), (iii) on each Business Day on which such Issuing Bank makes any LC Disbursement, the date and amount of such LC Disbursement, (iv) 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 amount of such LC Disbursement, and (v) 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.

(l)  LC Exposure Determination.  For all purposes of this Agreement, the amount of a Letter of Credit that, by its terms or the terms of any document related thereto, provides for one or more automatic increases in the stated amount thereof shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at the time of determination.

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SECTION 2.06.  Funding of Borrowings.

(a)  Each Lender shall make each Loan to be made by such Lender hereunder on the proposed date thereof by wire transfer of immediately available funds in the requested Agreed Currency by 1:00 p.m., Local Time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided that and Swingline Loans shall be made as provided in Section 2.04.  The Administrative Agent will make such Loans available to the Borrower Representative by promptly crediting the amounts so received, in like funds, to the Funding Account(s); 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 Issuing Bank.

(b)  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the applicable Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the applicable Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrowers, the interest rate applicable to ABR Revolving Loans.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

SECTION 2.07.  Interest Elections.

(a)  Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower Representative may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower Representative may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  Notwithstanding anything herein to the contrary, Eurocurrency Loans in an Agreed Currency may be converted and/or continued only as Eurocurrency Loans in the same Agreed Currency.  This Section shall not apply to Swingline Borrowings, which may not be converted or continued.

(b)  To make an election pursuant to this Section, the Borrower Representative shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrowers were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery, fax or Acceptable Communication to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower Representative.

(c)  Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:

(i)  the name of the applicable Borrower and the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

(ii)  the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

(iii)  whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing, and if a Eurocurrency Borrowing, the applicable Agreed Currency; and

(iv)  if the resulting Borrowing is a Eurocurrency 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”.

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(v)  If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an Interest Period, then the Borrowers 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 Lender of the applicable Class of the details thereof and of such Lender’s portion of each resulting Borrowing.

(e)  If the Borrower Representative fails to deliver a timely Interest Election Request with respect to a Eurocurrency 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 any such Borrowing (i) denominated in Dollars shall be converted to an ABR Borrowing, and (ii) denominated in a Foreign Currency shall be made as a Eurocurrency Loan in the same Agreed Currency with an interest period of one month.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so long as an Event of Default is continuing (i) no outstanding Borrowing in Dollars may be converted to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

(f)  Notwithstanding anything herein to the contrary, Eurocurrency Loans in an Agreed Currency may be converted and/or continued only as Eurocurrency Loans in the same Agreed Currency.

SECTION 2.08.  Termination and Reduction of Commitments; Increase in Commitments.

(a)  Unless previously terminated, the Commitments shall terminate on the Maturity Date.

(b)  The Borrowers may at any time terminate the Commitments upon (i) the payment in full of all outstanding Revolving Loans and LC Disbursements, together with accrued and unpaid interest thereon, (ii) the cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash deposit (or at the discretion of the Administrative Agent a backup standby letter of credit satisfactory to the Administrative Agent and the Issuing Bank) in an amount equal to 105% of the LC Exposure as of such date), (iii) the payment in full of the accrued and unpaid fees, and (iv) the payment in full of all reimbursable expenses and other Obligations together with accrued and unpaid interest thereon (other than contingent obligations that have not yet been asserted); provided, that the Borrowers shall not terminate or reduce the Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Aggregate Revolving Exposure would exceed the aggregate Commitments.

(c)  The Borrowers may from time to time reduce the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $100,000 and not less than $5,000,000 and (ii) the Borrowers shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section 2.10, the Aggregate Revolving Exposure would exceed the aggregate Commitments.

(d)  The Borrower Representative shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) or (c) of this Section at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower Representative pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower Representative may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower Representative (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

(e)  The Borrowers shall have the right to request (i) one or more increases in the Commitments (each a “Commitment Increase”) and/or (ii) one or more incremental term a loan commitments (each an “Incremental Term A Loan Commitment” and together with any Commitment Increase, the “Incremental Commitments”) to make incremental term a loans (each an “Incremental Term A Loan”) by obtaining (x) additional Commitments or (y) Incremental Term A Loan Commitments, either from one or more of the Lenders or another lending institution, provided that (A) any such request for an Incremental Commitment shall be in a minimum Dollar Amount of $5,000,000, (B) after giving effect thereto, the sum of the total of all such Commitment Increases and Incremental Term A Loan Commitments does not exceed the Dollar Amount of $50,000,000, (C) (x) the Administrative Agent and (y) in the case of any Commitment Increase, each Swingline Lender and each Issuing Bank have approved the identity of any such new Lender and consented to its becoming a Lender, (D) any such new Lender that will be a (x) Revolving Lender has agreed to, and is capable of, funding in each of the Agreed Currencies in accordance with the terms hereof and (y) Lender with an Incremental Term A Loan Commitment has agreed to, and is capable of, funding in the Agreed Currency of such Incremental Term A Loan in accordance 

Credit Agreement (Orthofix), Page 37

 

with the terms of such Incremental Term A Loan, (E) any such new Lender assumes all of the rights and obligations of a Revolving Lender or a Lender with an Incremental Term A Loan Commitment, as applicable, hereunder and (F) the procedures described in Section 2.08(f) have been satisfied.  Each Incremental Commitment shall constitute Obligations of the Borrower and shall be guaranteed and treated the same in all other respects as the other extensions of credit on a pari passu basis.  Nothing contained in this Section 2.08 shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its Commitment or make an Incremental Term A Loan Commitment hereunder at any time.

(f)   Any amendment hereto in connection with or to effectuate such Incremental Commitments (an “Incremental Amendment”) shall be in form and substance satisfactory to the Administrative Agent and shall only require the written signatures of the Administrative Agent, the Borrowers and each Lender with an Incremental Commitment (each, an “Incremental Lender”), subject only to the approval of Required Lenders if any Commitment Increase or addition of an Incremental Term A Loan Commitment would cause the aggregate Commitments and Incremental Term A Loan Commitments to exceed $175,000,000 in the aggregate.  As a condition precedent to the effectiveness of each such Incremental Amendment, the Borrowers shall deliver to the Administrative Agent (i) a certificate of each Loan Party signed by an authorized officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such Incremental Amendment, and (B) in the case of the Borrowers, certifying that, before and after giving effect to such Incremental Amendment (1) the representations and warranties contained in Article III and the other Loan Documents are true and correct in all material respects (provided, that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, (2) no Default exists, and (3) the Borrowers are in compliance (assuming such Incremental Commitment is drawn in full and after giving effect to other pro forma adjustments events) with the covenants contained in Section 6.12 on a pro forma basis as of the end of the most recent four consecutive fiscal quarter period ended on or prior to such date (as if the incurrence of such Incremental Commitment had occurred on the first day of such four fiscal quarter period), (ii) legal opinions and documents and instruments consistent with those delivered on the Effective Date, to the extent requested by the Administrative Agent, and (iii) such other items as reasonably requested by the Administrative Agent and its counsel (including counsel in foreign jurisdictions) in connection with any UK Borrower, any Foreign Currency or otherwise as reasonably deemed necessary or advisable by the Administrative Agent.

(g)  In the case of each Incremental Term A Loan (the terms of which shall be set forth in the relevant Incremental Amendment):

(i)  such Incremental Term A Loan will (x) mature in a manner reasonably acceptable to the Incremental Lenders making such Incremental Term A Loans and the Borrowers, but will not in any event have a maturity date that is earlier than the Maturity Date and (y) amortize in a manner reasonably acceptable to the Incremental Lenders making such Incremental Term A Loans and the Borrowers, provided that the resultant weighted average life of such Incremental Term A Loan shall be not be less than half of the remaining tenor of the revolving facility;

(ii)  the Applicable Rate and pricing grid, if applicable, for such Incremental Term A Loan shall be determined by the applicable Incremental Lenders and the Borrowers and shall be consistent with then current market conditions; provided that in the event that the total all in interest rate margins for any Incremental Term A Loans that are incurred on or prior to the date that is 18 months after the Effective Date are higher than the interest rate margins for the Revolving Loans by more than (in any case) 50 basis points, then the interest rate margins for the Revolving Loans shall be increased to the extent necessary so that such interest rate margins are equal to the interest rate margins for such Incremental Term A Loans;

(iii)  the proceeds of such Incremental Term A Loan shall be used for general corporate purposes (including Permitted Acquisitions and Restricted Payments permitted pursuant to Section 6.08); and

(iv)  except as provided above, all other terms and conditions applicable to any Incremental Term A Loan, to the extent not substantially consistent (taken as a whole) with the terms and conditions of this Agreement prior to giving effect thereto, shall be reasonably satisfactory to the Administrative Agent and the Borrowers (but in no event, except as provided above, shall such terms and conditions be more restrictive, taken as a whole, than those set forth in this Agreement and any other Loan Document);

(h)  On the effective date of any such Incremental Amendment, (i) any Incremental Lender increasing or  (or, in the case of any newly added Incremental Lender, extending) its Commitment shall make available to the Administrative Agent such amounts in immediately available funds in such Agreed Currencies as the Administrative Agent shall determine, for the benefit of the other Lenders, as being required in order to cause, after giving effect to such increase or addition and the use of such amounts to make payments to such other Lenders, each Lender’s portion of the outstanding Revolving Loans in the various Agreed Currencies of all the Lenders to equal its revised Applicable Percentage of such outstanding Revolving Loans in the various Agreed Currencies, and the 

Credit Agreement (Orthofix), Page 38

 

Administrative Agent shall make such other adjustments among the Lenders with respect to the Revolving Loans then outstanding and amounts of principal, interest, commitment fees and other amounts paid or payable with respect thereto as shall be necessary, in the opinion of the Administrative Agent, in order to effect such reallocation and (ii) the Borrowers shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as of the date of any increase (or addition) in the Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if applicable, specified in a notice delivered by the Borrower Representative, in accordance with the requirements of Section 2.03).  The deemed payments made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount prepaid and, in respect of each Eurocurrency Loan, shall be subject to indemnification by the Borrowers pursuant to the provisions of Section 2.15 if the deemed payment occurs other than on the last day of the related Interest Periods.  Within a reasonable time after the effective date of any increase or addition, the Administrative Agent shall, and is hereby authorized and directed to, revise the Commitment Schedule to reflect such increase or addition and shall distribute such revised Commitment Schedule to each of the Lenders and the Borrower Representative, whereupon such revised Commitment Schedule shall replace the old Commitment Schedule and become part of this Agreement.

SECTION 2.09.  Repayment of Loans; Evidence of Debt.

(a)  The Borrowers hereby unconditionally promise to pay (i) to the Administrative Agent for the account of each Revolving Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date, and (ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the fifth Business Day after such Swingline Loan is made; provided that on each date that a Revolving Loan is made in Dollars, the Borrowers shall repay all Swingline Loans then outstanding and the proceeds of any such Revolving Loan shall be applied by the Administrative Agent to repay any Swingline Loans outstanding.  All Borrowings shall be repaid and prepaid in the Agreed Currency in which they were originally denominated.

(b)  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

(c)  The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, if any, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

(d)  The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be conclusive absent manifest error of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the terms of this Agreement.

(e)  Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

SECTION 2.10.  Prepayment of Loans.

(a)  The Borrowers shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (d) of this Section and, if applicable, payment of any break funding expenses under Section 2.15.  All Borrowings shall be repaid and prepaid in the Agreed Currency in which they were originally denominated.

(b)  In the event and on each occasion that any Net Proceeds are received by or on behalf of any Loan Party or Orthofix-Italy in respect of any Prepayment Event, the Borrowers shall, immediately after such Net Proceeds are received by such Person, prepay the Obligations and cash collateralize the LC Exposure as set forth in Section 2.10(c) below in an aggregate amount equal to 100% of such Net Proceeds, provided that, in the case of any event described in the definition of the term “Prepayment Event”, if the Borrower Representative shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that the such Orthofix Entity intends to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 270 days after receipt of such Net Proceeds, to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding inventory) to be used in the business of such Orthofix Entities, and certifying that no Default has occurred and is continuing, then no 

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prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds specified in such certificate, provided that to the extent of any such Net Proceeds that have not been so applied by the end of such 270-day period, a prepayment shall be required at such time in an amount equal to such Net Proceeds that have not been so applied; provided further that the Borrowers shall not be permitted to make elections to use Net Proceeds to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding inventory) with respect to Net Proceeds in any fiscal year in an aggregate amount in excess of the Dollar Amount of $25,000,000.

(c)  If at any time, (i) other than as a result of fluctuations in currency exchange rates, the sum of the aggregate principal amount of the Aggregate Revolving Exposure exceeds the aggregate Commitments, (ii) other than as a result of fluctuations in currency exchange rates, the aggregate Dollar Amount of all Eurocurrency Loans and LC Exposures denominated in Foreign Currencies exceeds the Maximum Foreign Currency Amount, (iii) solely as a result of fluctuations in currency exchange rates, the aggregate principal amount of the Aggregate Revolving Exposure, as of the most recent Computation Date, exceeds one hundred five percent (105%) of the aggregate Commitments, or (iv) solely as a result of fluctuations in currency exchange rates, the aggregate Dollar Amount of all Eurocurrency Loans denominated in Foreign Currencies and LC Exposures denominated in Foreign Currencies exceeds 105% of the Maximum Foreign Currency Amount, the Borrowers shall immediately repay Borrowings or cash collateralize LC Exposure in accordance with the procedures set forth in Section 2.05(j) in an aggregate principal amount sufficient to cause (x) the amount of the Aggregate Revolving Exposure to be less than or equal to the aggregate Commitments and (y) the aggregate Dollar Amount of all Eurocurrency Loans denominated in Foreign Currencies and LC Exposure in Foreign Currencies to be less than or equal to the Maximum Foreign Currency Amount.   In each case proceeding in this clause (c), the Dollar Amount of each such calculation shall be calculated, with respect to Loans and LC Exposure denominated in Foreign Currencies, as of the most recent Computation Date with respect to each such Loans and LC Exposure.

(d)  All prepayments required to be made pursuant to Section 2.10(b) shall be applied, first to prepay the Swingline Loans if such prepayment is made in Dollars, second to repay Revolving Loans in the applicable Agreed Currency with a corresponding Dollar Amount reduction in the aggregate Commitments in connection with the required prepayment of Net Proceeds in any fiscal year in an aggregate amount in excess of the Dollar Amount of $25,000,000 and third to cash collateralize outstanding LC Exposure.

(e)  The Borrower Representative shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by fax) of any prepayment under this Section:  (i) in the case of prepayment of a Eurocurrency Borrowing, not later than 10:00 a.m., Local Time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing, not later than 10:00 a.m., Local Time, on the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 11:00 a.m., Local Time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.08, 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, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type and Agreed Currency as provided in Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment.  Each prepayment of a Borrowing shall be applied ratably to the applicable Loans in the Agreed Currency included in the prepaid Borrowing, or the Dollar Amount thereof shall be applied or converted to a different Agreed Currency and applied ratably among Loans as determined by the Administrative Agent.  Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.12 and (ii) break funding payments to the extent required by Section 2.15.

SECTION 2.11.  Fees.

(a)  The Borrowers agree to pay to the Administrative Agent a commitment fee for the account of each Revolving Lender, which shall accrue at the Applicable Rate on the daily amount of the undrawn portion of the Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which the Lenders’ Commitments terminate; provided that, if such Lender continues to have any Revolving Exposure (excluding Revolving Loans) after its Commitment terminates, then such commitment fee shall continue to accrue on the daily amount of such Lender’s Revolving Exposure from and including the date on which its Commitment terminates to but excluding the date on which such Lender ceases to have any Revolving Exposure; it being understood that the LC Exposure of a Lender shall be included and the Swingline Exposure of a Lender shall be excluded in the drawn portion of the Commitment of such Lender for purposes of calculating the commitment fee.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

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(b)  The Borrowers agree to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Revolving Loans on the average daily Dollar Amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Banks a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily Dollar Amount of the LC Exposure attributable to Letters of Credit issued by such Issuing Bank (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the aggregate Commitments and the date on which there ceases to be any LC Exposure, as well as each Issuing Bank’s standard fees and commissions with respect to the issuance, amendment, cancellation, negotiation, transfer, presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and 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 Effective Date; provided that all such fees shall be payable on the date on which the aggregate Commitments terminate and any such fees accruing after the date on which the aggregate Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Banks pursuant to this paragraph shall be payable within ten (10) days after written demand therefor.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

(c)  The Borrowers agree to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrowers and the Administrative Agent.

(d)  All fees payable hereunder shall be paid on the dates due, in immediately available funds in Dollars, to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders entitled thereto.  Fees paid shall not be refundable under any circumstances.

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 Eurocurrency Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing for such Agreed Currency plus the Applicable Rate.

(c)  Notwithstanding the foregoing, during the occurrence and continuance of an Event of Default, the Administrative Agent or the Required Lenders may, at their option, by notice to the Borrower Representative (which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lender affected thereby” for reductions in interest rates), declare that (i) all Loans shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder, in each case, from and after the date of such declaration until such Event of Default is timely cured or waived in writing by the requisite Lenders hereunder in accordance with Section 9.02.

(d)  Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the aggregate Commitments; provided that (i) interest accrued pursuant to paragraph (c) 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 Eurocurrency 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.

(e)  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 and (ii) computations of interest for Borrowings denominated in Pounds Sterling shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO Rate or Eurocurrency Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

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SECTION 2.13.  Market Disruption and Alternate Rate of Interest.

(a)  If at the time that the Administrative Agent shall seek to determine the LIBOR Screen Rate on the Quotation Day for any Interest Period for a Eurocurrency Borrowing the LIBOR Screen Rate shall not be available for such Interest Period and/or for the applicable Agreed Currency with respect to such Eurocurrency Borrowing for any reason and the Administrative Agent shall determine that it is not possible to determine the Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error), then the applicable Reference Bank Rate shall be the Eurocurrency Rate for such Interest Period for such Eurocurrency Borrowing; provided that if any Reference Bank Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided, further, however, that if less than two Reference Banks shall supply a rate to the Administrative Agent for purposes of determining the Eurocurrency Rate for such Eurocurrency Borrowing, (i) if such Borrowing shall be requested in Dollars, then such Borrowing shall be made as an ABR Borrowing and (ii) if such Borrowing shall be requested in any Foreign Currency, the Eurocurrency Rate shall be equal to an interest rate reasonably determined by the Administrative Agent, after consultation with the Borrower Representative and the applicable Lenders, to compensate the applicable Lenders for such Loan in such currency for the applicable period (from whatever source and using whatever methodologies the Administrative Agent and such Lenders may select in their reasonable discretion) (such rate, the “CF Rate”).

(b)  If prior to the commencement of any Interest Period for a Eurocurrency Borrowing:

(i)  the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining (including, without limitation, by means of an Interpolated Rate) the Adjusted LIBO Rate or the Eurocurrency Rate, as applicable, for a Loan in the applicable Agreed Currency or for the applicable Interest Period; or

(ii)  the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the Eurocurrency Rate, as applicable, for a Loan in the applicable Agreed Currency or for the applicable Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period,

then the Administrative Agent shall give notice thereof to the Borrower Representative and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Interest Election Request that requests the conversion of any Eurocurrency Borrowing to, or continuation of any Eurocurrency Borrowing in the applicable Agreed Currency or for the applicable Interest Period, as the case may be, shall be ineffective, (B) if such Borrowing is requested in Dollars, such Borrowing shall be made as an ABR Borrowing and (C) if such Borrowing is requested in any Foreign Currency, then the Eurocurrency Rate for such Eurocurrency Borrowing shall be at the CF Rate; provided, further that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.

 (c)  Notwithstanding the satisfaction of all conditions referred to in Article II with respect to any Loan in any Foreign Currency, if there shall occur on or prior to the date of such Loan any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which would in the reasonable opinion of the applicable Borrower, the Administrative Agent or the Required Lenders make it impracticable for the Eurocurrency Loans comprising such Loan to be denominated in such Foreign Currency specified by the applicable Borrower, then the Administrative Agent shall forthwith give notice thereof to such Borrower and the Revolving Lenders or such Borrower shall give notice thereof to the Revolving Lenders, as the case may be, and such Eurocurrency Loans shall not be denominated in such Foreign Currency but shall be made on such date in Dollars, in an aggregate principal amount equal to the Dollar Amount of the aggregate principal amount of the Foreign Currency specified in the related Borrowing Request, as ABR Loans, unless the applicable Borrower notifies the Administrative Agent at least one Business Day before such date that (a) it elects not to borrow on such date or (b) it elects to borrow on such date in a different Agreed Currency, as the case may be, in which the denomination of such Eurocurrency Loans would in the opinion of the Administrative Agent and the Required Lenders be practicable and in an aggregate principal amount equal to the Dollar Amount of the aggregate principal amount off the Foreign Currency specified in the related Borrowing Request.

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

(i)  impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

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(ii)  impose on any Lender or the Issuing Bank or the London interbank market or any other applicable market, any other condition, cost or expense (other than Taxes) affecting this Agreement or any of the Loans made by such Lender or any Letter of Credit or participation therein; or

(iii)  subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (e) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, the Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then, upon the request of such Lender, Issuing Bank or other Recipient, the Borrowers will pay to such Lender, the Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

(b)  If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrowers will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered.

(c)  A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower Representative and shall be conclusive absent manifest error; provided, however, notwithstanding anything to the contrary in this Section 2.14, in the case of any Change in Law, it shall be a condition to a Lender’s or Issuing Bank’s exercise of its rights, if any, under this Section 2.14, that such Lender or Issuing Bank shall generally be exercising similar rights with respect to other similarly situated borrowers under similar agreements to the extent contractually permitted to do so and allowed to do so under applicable law.  The Borrowers shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

(d)  Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower Representative of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 2.15.  Break Funding Payments.  In the event of (a) the payment of any principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.10), (b) the conversion of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.08(d) and is revoked in accordance therewith) and in the applicable Agreed Currency, or (d) the assignment of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower Representative pursuant to Section 2.19 or Section 9.02(i), then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and expense (other than lost profits) attributable to such event.  In the case of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Eurocurrency Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Eurocurrency 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 Eurocurrency Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to 

Credit Agreement (Orthofix), Page 43

 

this Section shall be delivered to the Borrower Representative and shall be conclusive absent manifest error.  The Borrowers shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

SECTION 2.16.  Taxes.

(a)  Withholding Taxes; Gross-Up; Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased 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 2.16), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(b)  Payment of Other Taxes by Loan Parties.  The Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.

(c)  Evidence of Payment.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.16, the Borrower Representative shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment, or other evidence of such payment reasonably satisfactory to the Administrative Agent.

(d)  Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower Representative by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(e)  Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) 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 and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

(f)  Status of Lenders.

(i)  Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower Representative and the Administrative Agent, at the time or times reasonably requested by the Borrower Representative or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower Representative or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower Representative or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower Representative or the Administrative Agent as will enable the Borrower Representative 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 in Section 2.16(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

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(ii)  Without limiting the generality of the foregoing, in the event that any Borrower is a U.S. Person,

(A)  any Lender that is a U.S. Person shall deliver to the Borrower Representative and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent), executed originals of IRS Form W‐9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B)  any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower Representative and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent), whichever of the following is applicable:

(1)  in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the U.S. is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

(2)  in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connected income, executed originals of IRS Form W‐8ECI;

(3)  in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of a Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W‐8BEN; or

(4)  to the extent a Foreign Lender is not the Beneficial Owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W‐8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D‐2 or Exhibit D‐3, IRS Form W-9, and/or other certification documents from each Beneficial Owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner;

(C)  any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower Representative and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower Representative or the Administrative Agent to determine the withholding or deduction required to be made; and

(D)  if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower Representative and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower Representative or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower Representative or the Administrative Agent as may be necessary for the Borrower Representative and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Effective Date, the Borrowers and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower Representative and the Administrative Agent in writing of its legal inability to do so.

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(g)  Additional United Kingdom Withholding Tax Matters.

(i)  Subject to clause (ii) below, each Lender and each UK Borrower which makes a payment to such Lender shall cooperate in completing any procedural formalities necessary for such UK Borrower to obtain authorization to make such payment without withholding or deduction for Taxes imposed under the laws of the United Kingdom.

(ii)  (A) A Lender on the Effective Date that (x) holds a passport under the HMRC DT Treaty Passport scheme and (y) wishes such scheme to apply to this Agreement, shall provide its scheme reference number and its jurisdiction of tax residence to each UK Borrower and the Administrative Agent; (B) a Lender which becomes a Lender hereunder after the Effective Date that (x) holds a passport under the HMRC DT Treaty Passport scheme and (y) wishes such scheme to apply to this Agreement, shall provide its scheme reference number and its jurisdiction of tax residence to each UK Borrower and the Administrative Agent, and (C) upon satisfying either clause (A) or (B) above, such Lender shall have satisfied its obligation under paragraph (g)(i) above.

(iii)  If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (g)(ii) above, the UK Borrower shall make a Borrower DTTP filing with respect to such Lender, and shall promptly provide such Lender with a copy of such filing; provided that, if:

(A)  the UK Borrower making a payment to such Lender has not made a Borrower DTTP Filing in respect of such Lender; or

(B)  the UK Borrower making a payment to such Lender has made a Borrower DTTP Filing in respect of such Lender but:

(1)  such Borrower DTTP Filing has been rejected by HM Revenue & Customs; or

(2)  HM Revenue & Customs has not given such UK Borrower authority to make payments to such Lender without a deduction for tax within 60 days of the date of such Borrower DTTP Filing;

and in each case, such UK Borrower has notified that Lender in writing of either (1) or (2) above, then such Lender and such UK Borrower shall co-operate in completing any additional procedural formalities necessary for such UK Borrower to obtain authorization to make that payment without withholding or deduction for Taxes imposed under the laws of the United Kingdom.

(iv)  If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (g)(ii) above, no UK Borrower shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s Commitment or its participation in any Loan or other Revolving Exposure unless the Lender otherwise agrees.

(v)  Each UK Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of such Borrower DTTP Filing to the Administrative Agent for delivery to the relevant Lender.

(vi)  Each Lender shall notify each UK Borrower and the Administrative Agent whether it is (a) a Treaty Lender, (b) a Lender which is entitled to be paid without United Kingdom withholding tax for other reasons or (c) a lender which must be paid subject to United Kingdom withholding tax and will promptly notify each UK Borrower and the Administrative Agent if there is any change in such status (for example  if it determines in its sole discretion that it has ceased to be entitled to claim the benefits of an income tax treaty to which the United Kingdom is a party with respect to payments made by any UK Borrower hereunder).

(h)  Obtaining Certain Refunds.  If a Loan Party makes a deduction or withholds sums in relation to Taxes imposed under the laws of the United Kingdom and Section 2.16(a) applies to increase the amount of the payment to a Treaty Lender from that Loan Party, that Loan Party shall promptly provide that Treaty Lender with an executed original H.M. Revenue & Customs tax deduction certificate evidencing the relevant deduction or withholding of such Taxes. The Treaty Lender shall, within a reasonable period following receipt of such certificate, apply to H.M. Revenue & Customs for a refund of the amount of that tax deduction and, upon receipt by the Treaty Lender of such amount from H.M. Revenue & Customs, Section 2.16(i) below shall apply in relation thereto to the extent that such refund is attributable to the increase in the amount paid by the relevant Loan Party pursuant to Section 2.16(a) above.

(i)  Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.16 (including by the payment of additional amounts pursuant to this Section 2.16), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.16 with respect to the Taxes giving rise to such refund), net of all out-of-

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pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (i) (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 (i), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (i) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph (i) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

(j)  Survival.  Each party’s obligations under this Section 2.16 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

(k)  Defined Terms.  For purposes of this Section 2.16, the term “Lender” includes any Issuing Bank and the term “applicable law” includes FATCA.

SECTION 2.17.  Payments Generally; Allocation of Proceeds; Sharing of Set‐offs.

(a)  The Borrowers shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Sections 2.14, 2.15 or 2.16, or otherwise) (x) in the case of payments denominated in Dollars, at the Administrative Agent’s Office and in immediately available funds, without set-off or counterclaim, not later than 2:00 p.m. Local Time on the date specified herein and (y) in the case of payments denominated in a Foreign Currency, at its Foreign Currency Payment Office for such Foreign Currency, at the Administrative Agent’s Office and in immediately available funds, without set-off or counterclaim, not later than 2:00 p.m. Local Time on the date specified herein; provided, that payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons entitled thereto.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder of principal or interest in respect of any Loan or LC Disbursement shall, except as otherwise expressly provided herein, be made in the currency of such Loan or LC Disbursement, and all other payments hereunder and under each other Loan Document shall be made in Dollars.  Notwithstanding the foregoing provisions of this Section, if, after the making of any Borrowing or LC Disbursement in any Foreign Currency, currency control or exchange regulations are imposed in the country which issues such Foreign Currency with the result that such Foreign Currency no longer exists or the Borrowers are not able to make payment to the Administrative Agent for the account of the Lenders in such Foreign Currency, then all payments to be made by the Borrowers hereunder in such Foreign Currency shall instead be made when due in an equivalent amount of the currency that replaced such Foreign Currency or, if no such replacement currency exists, in Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due, it being the intention of the parties hereto that the Borrowers take all risks of the imposition of any such currency control or exchange regulations.

(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 (in the Dollar Amount of such funds received, if necessary).  Any proceeds of Collateral or payments from any of the Guarantors received by the Administrative Agent (i) not constituting a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrowers) or (ii) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Administrative Agent, the Swingline Lender and the Issuing Bank from the Borrowers (other than in connection with Banking Services Obligations or Swap Agreement Obligations), second, to pay any fees or expense reimbursements then due to the Lenders from the Borrowers (other than in connection with Banking Services Obligations or Swap Agreement Obligations), third, to pay interest then due and payable on the Loans and unreimbursed LC Disbursements ratably, fourth, to pay an amount to the Administrative Agent equal to one hundred five 

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percent (105%) of the aggregate LC Exposure, to be held as cash collateral for such Obligations, fifth to prepay principal on the Loans and unreimbursed LC Disbursements and to pay any amounts owing with respect to Swap Agreement Obligations up to and including the amount most recently provided to the Administrative Agent pursuant to Section 2.21, ratably, sixth to the payment of any amounts owing in respect of Banking Services Obligations up to and including the amount most recently provided to the Administrative Agent pursuant to Section 2.21, and seventh, to the payment of any other Secured Obligation due to the Administrative Agent or any Lender from the Borrowers or any other Orthofix Entity in connection with the Transactions.  Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower Representative, or unless a Default is in existence, neither the Administrative Agent nor any Lender shall apply any payment which it receives to any Eurocurrency Loan of a Class, except (i) on the expiration date of the Interest Period applicable thereto, or (ii) in the event, and only to the extent, that there are no outstanding ABR Loans of the same Class and, in any such event, the Borrowers shall pay the break funding payment required in accordance with Section 2.15.  The Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations.

Notwithstanding the foregoing, (i) Secured Obligations arising under Banking Services Obligations or Swap Agreement Obligations shall be excluded from the application described above and paid in clause seventh if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may have reasonably requested from the applicable provider of such Banking Services or Swap Agreements and (ii) no amounts received by the Administrative Agent or any Lender from any Loan Party that is not a Qualified ECP Guarantor shall be applied in partial or complete satisfaction of any Excluded Swap Obligations.

(c)  At the election of the Administrative Agent, all payments of principal, interest, LC Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees, costs and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder, whether made following a request by the Borrower Representative pursuant to Section 2.03 or 2.04 or a deemed request as provided in this Section.  The Borrowers hereby irrevocably authorize the Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and agree that all such amounts charged shall constitute Loans (including Swingline Loans), and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03 or 2.04, as applicable.  The Borrowers, Lenders, Issuing Banks and Swingline Lenders hereby irrevocably authorize the Administrative Agent, in its sole discretion as of any date from time to time, to convert as of such date any payment received by it in any Agreed Currency or to be made by it in any Agreed Currency into the equivalent amount (using the methodology of the Dollar Amount) of any another Agreed Currency, in each case to effectuate any one or more of the provisions of this Agreement.

(d)  If, except as otherwise expressly provided herein, 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 Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other similarly situated Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by all such Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment or sale of a participation in any of its Loans or participations in LC Disbursements and Swingline Loans to any assignee or participant, other than to the Borrowers 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 such Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation.

(e)  Unless the Administrative Agent shall have received notice from the Borrower Representative prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such payment, the Administrative Agent may assume that the Borrowers have made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrowers have not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but 

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excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

(f)  If any Lender shall fail to make any payment required to be made by it hereunder, then the Administrative Agent may, in its discretion (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 Bank to satisfy such Lender’s obligations hereunder 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 hereunder.  Application of amounts pursuant to clauses (i) and (ii) above shall be made in such order as may be determined by the Administrative Agent in its discretion.

(g)  The Administrative Agent may from time to time provide the Borrowers with account statements or invoices with respect to any of the Secured Obligations (the “Statements”).  The Administrative Agent is under no duty or obligation to provide Statements, which, if provided, will be solely for the Borrowers’ convenience.  Statements may contain estimates of the amounts owed during the relevant billing period, whether of principal, interest, fees or other Secured Obligations.  If the Borrowers pay the full amount indicated on a Statement on or before the due date indicated on such Statement, the Borrowers shall not be in default of payment with respect to the billing period indicated on such Statement; provided, that acceptance by the Administrative Agent, on behalf of the Lenders, of any payment that is less than the total amount actually due at that time (including but not limited to any past due amounts) shall not constitute a waiver of the Administrative Agent’s or the Lenders’ right to receive payment in full at another time.

SECTION 2.18.  Mitigation Obligations; Replacement of Lenders.

(a)  If any Lender requests compensation under Section 2.14, or if the Borrowers are required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Sections 2.14 or 2.16, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrowers hereby agree to pay all reasonable out-of-pocket costs and expenses incurred by any Lender in connection with any such designation or assignment.

(b)  If any Lender requests compensation under Section 2.14, or if the Borrowers are required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, or if any Lender gives a notice pursuant to Section 2.24, or if any Lender becomes a Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.14 or 2.16) and obligations under this Agreement and the other Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrowers shall have received the prior written consent of the Administrative Agent (and in circumstances where its consent would be required under Section 9.04, the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld or delayed, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and funded participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.14 or payments required to be made pursuant to Section 2.16, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply.

SECTION 2.19.  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);

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(b)  such Defaulting Lender shall not have the right to vote on any issue on which voting is required (other than to the extent expressly provided in Section 9.02(b)) and the Commitment and Revolving Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder or under any other Loan Document; provided that, except as otherwise provided in Section 9.02, 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 such Lender or each Lender directly affected thereby;

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

(i)  all or any part of the Swingline Exposure and LC Exposure of such Defaulting Lender (other than the portion of such Swingline Exposure referred to in clause (b) of the definition of such term) shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender’s Revolving Exposure to exceed its Commitment;

(ii)  if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrowers shall within one (1) Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize, for the benefit of the Issuing Bank, 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 the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Sections 2.11(a) and 2.11(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and

(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 Bank 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 Issuing Bank 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 the Issuing Bank shall not be required to issue, amend, renew, extend or increase any Letter of Credit, unless it is satisfied that the related exposure and such Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrowers in accordance with Section 2.19(c), and Swingline Exposure related to any such newly made Swingline Loan or LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among non‐Defaulting Lenders in a manner consistent with Section 2.19(c)(i) (and such Defaulting Lender shall not participate therein).

If (i) a Bankruptcy Event with respect to the 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 the 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 the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless the Swingline Lender or the Issuing Bank, as the case may be, shall have entered into arrangements with the Borrowers or such Lender, satisfactory to the Swingline Lender or the Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender hereunder.

In the event that each of the Administrative Agent, the Borrowers, the Swingline Lender and the Issuing Bank agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on the date of such readjustment such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

SECTION 2.20.  Returned Payments.  If, after receipt of any payment which is applied to the payment of all or any part of the Obligations (including a payment effected through exercise of a right of setoff), the Administrative Agent or any Lender is for any reason compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is 

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invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Administrative Agent or such Lender.  The provisions of this Section 2.20 shall be and remain effective notwithstanding any contrary action which may have been taken by the Administrative Agent or any Lender in reliance upon such payment or application of proceeds.  The provisions of this Section 2.20 shall survive the termination of this Agreement.

SECTION 2.21.  Banking Services and Swap Agreements.  Each Lender or Affiliate thereof providing Banking Services for, or having Swap Agreements with, any Orthofix Entity, shall deliver to the Administrative Agent, promptly after entering into such Banking Services or Swap Agreements, written notice setting forth the aggregate amount of all Banking Services Obligations and Swap Agreement Obligations of such Orthofix Entity or Affiliate thereof to such Lender or Affiliate (whether matured or unmatured, absolute or contingent).  In furtherance of that requirement, each such Lender or Affiliate thereof shall furnish the Administrative Agent, from time to time after a significant change therein or upon a request therefor, a summary of the amounts due or to become due in respect of such Banking Services Obligations and Swap Agreement Obligations.  The most recent information provided to the Administrative Agent shall be used in determining which tier of the waterfall, contained in Section 2.17(b), such Banking Services Obligations and/or Swap Agreement Obligations will be placed.

SECTION 2.22.  Determination of Dollar Amounts.  The Administrative Agent will determine the Dollar Amount of:

(a)  each Eurocurrency Loan in a Foreign Currency as of the date two Business Days prior to the date of such Borrowing or, if applicable, the date of conversion to or any continuation of any Borrowing as a Eurocurrency Loan in a Foreign Currency;

(b)  the LC Exposure as of the date of each request for the issuance of any Letter of Credit in a Foreign Currency;

(c)  all outstanding Loans in a Foreign Currency and the LC Exposure in a Foreign Currency on and as of the last Business Day of each calendar quarter and on any other Business Day elected by the Administrative Agent in its discretion or upon instruction by the Required Lenders; and

(d)  each LC Disbursement made in a Foreign Currency on the date such LC Disbursement is made by the Issuing Bank.

Each day upon or as of which the Administrative Agent determines the Dollar Amounts as described in the preceding clauses (a), (b) and (c) is herein described as a “Computation Date” with respect to each Borrowing, Letter of Credit or LC Exposure for which a Dollar Amount is determined on or as of such day.

SECTION 2.23.  Judgment Currency.  If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due from the Borrowers hereunder in the currency expressed to be payable herein (the “specified currency “) into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which the Administrative Agent could, in accordance with normal banking procedures applicable to arm’s length transactions, purchase the specified currency with such other currency at the Administrative Agent’s main New York City office on the Business Day immediately preceding that on which final, non-appealable judgment is given.  The obligations of the Borrowers in respect of any sum due to any Credit Party hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following receipt by such Credit Party of any sum adjudged to be so due in such other currency such Credit Party may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency.  If the amount of the specified currency so purchased is less than the sum originally due to such Credit Party in the specified currency, the Borrowers agree, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Credit Party against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum originally due to any Credit Party in the specified currency and (b) any amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender under Section 2.17, such Credit Party agrees to remit such excess to the Borrowers.

SECTION 2.24.  Illegality.  If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to (a) perform any of its obligations hereunder or under any other Loan Document, (b) issue, make, maintain or fund Loans or its participation in any Loan (whether denominated in Dollars or a Foreign Currency), or (c) issue, make, maintain, fund, determine interest rates or charge interest with respect to any extension of credit under this Agreement or any of the Loan Documents, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, the applicable Agreed 

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Currency in the London interbank market, then, on notice thereof by such Lender to the Borrower Representative through the Administrative Agent, any obligation of such Lender to make or continue such Loans or to convert to such Type of Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrowers that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all affected Eurocurrency Loans denominated in Dollars of such Lender to it to ABR Loans, and to repay all affected Loans in any Agreed Currency, either on the last day of the Interest Period, therefor, if such Lender may lawfully continue to maintain such Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans.  Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted.  The Borrowers shall have the rights in respect of any such Lender specified in Section 2.18.

SECTION 2.25.  Uncommitted Orthofix-Italy Non-Pro Rata Tranche Sub-Facility.

(a)  The Borrowers may at any time, upon not less than 10 Business Days’ notice from the Borrower Representative to the Administrative Agent (or such shorter period as may be agreed by the Administrative Agent in its sole discretion), request that one or more of the Lenders or another lending institution provide Italy Sub-Facility Commitments to Orthofix-Italy in an maximum aggregate amount of up to the Dollar Amount of $10,000,000 (the “Italy Uncommitted Sub-Facility”); provided that (i) the Commitments will be reduced by the Dollar Amount of the Italy Uncommitted Sub‐Facility and (ii) the Maximum Foreign Currency Amount shall be reduced by the amount of the Italy Sub-Facility Commitments.

(b)  Subject to the approval of the Administrative Agent, the Swingline Lender and the Issuing Bank, the Borrowers may invite additional lending institutions to become Lenders under the Italy Uncommitted Sub-Facility, provided that (i) any such new lender has agreed to, and is capable of, funding to Orthofix-Italy in Euros in accordance with the terms hereof and (ii) any such new lender assumes all of the rights and obligations of a “Lender” hereunder with respect to the Italy Uncommitted Sub-Facility.  Nothing contained in this Section 2.25 shall (x) constitute, or otherwise be deemed to be, a commitment on the part of any Lender to provide an Italy Sub-Facility Commitment hereunder at any time or (y) require any Lender to purchase a participation in the Italy Uncommitted Sub-Facility at any time.

(c)  To effectuate the Italy Uncommitted Sub-Facility, the Borrower Representative, Orthofix-Italy, the Administrative Agent and the Italy Sub-Facility Lenders shall execute and deliver an amendment to this Agreement, and/or an intercreditor agreement, or equivalent documentation in form and substance reasonably satisfactory to the Administrative Agent (the “Italy Sub-Facility Amendment Documentation”).  Notwithstanding anything set forth in Section 9.02 to the contrary, the Italy Sub‐Facility Amendment Documentation and any amendment to any other Loan Documents in connection with or to effectuate the Italy Uncommitted Sub-Facility shall be in form and substance reasonably satisfactory to the Administrative Agent and shall only require the written signatures of the Administrative Agent, the Borrower Representative, Orthofix-Italy and each Italy Sub-Facility Lender.  The Italy Sub-Facility Amendment Documentation shall provide that the obligations under the Italy Uncommitted Sub-Facility will be included in the Obligations and the Secured Obligations, and Guarantors will guaranty, and the Collateral will secure, all Secured Obligations (including all amounts under the Italy Uncommitted Sub-Facility) on a pari passu basis (including equivalent treatment in any proceeds waterfall).  Each of the Lenders hereby authorize and direct the Administrative Agent to enter into, if deemed necessary or desirable by the Administrative Agent, in its discretion, an intercreditor agreement on behalf of all Lenders and the other holders of the Secured Obligations, and bind such Lenders and such holders to such intercreditor agreement providing for the pari passu treatment of the Italy Uncommitted Sub-Facility under the Guarantors’ guaranties and the Collateral Documents.  Except for the terms set forth in this Section 2.25 and mechanics and pricing applicable to the Italy Uncommitted Sub-Facility, provisions of the Revolving Italy Sub-Facility Loans will be substantially the same as the Revolving Loans.

(d)  The parties hereto acknowledge and agree that prior to Orthofix-Italy becoming entitled to utilize the Italy Uncommitted Sub-Facility (i)(A) the Administrative Agent shall have received on behalf of the Italy Sub-Facility Lenders such supporting resolutions, incumbency certificates, opinions of counsel and other documents or information, in form, content and scope reasonably satisfactory to the Administrative Agent, as may be required by the Administrative Agent and the Italy Sub-Facility Lenders in their sole discretion, (B) documentation and information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, to the extent such documentation or information is requested by the Administrative Agent on behalf of such Lenders and (C) notes signed by Orthofix-Italy to the extent any such Lenders so require, and (ii) each such Lender shall have met all necessary regulatory and licensing requirements and internal policy requirements and shall be legally permitted to make Revolving Italy Sub-Facility Loans in the jurisdiction in which Orthofix-Italy is organized.

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ARTICLE III

Representations and Warranties

Each Borrower and each other Loan Party represents and warrants to the Lenders that (and where applicable, agrees):

SECTION 3.01.  Organization; Powers.  Each Orthofix Entity (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, except in connection with the Permitted Reorganization and, except in the case of any Non-Loan Party, where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, (b) has all requisite power and authority to carry on its business as now conducted and (c) is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except, with respect to the Orthofix Entities that are not Borrowers, where the failure to be qualified to do business in, and be in good standing in, every jurisdiction where such qualification is required, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.02.  Authorization; Enforceability.  The Transactions are within each Loan Party’s organizational powers and (a) have been duly authorized by all necessary organizational actions and, if required, actions by equity holders and (b) will not result in a suspension or revocation of, or limitation on, any material certificate of authority, license, permit, authorization or other approval applicable to the business, operations or properties of any Borrower or any other Loan Party or Orthofix Entity to the extent such suspension, revocation or limitation materially adversely affects the business of the Orthofix Entities, taken as a whole, or the ability of the Orthofix Entities, taken as a whole, to participate in, or contract with, any material Medical Reimbursement Program.  Each Loan Document to which each Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, 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, except such as have been obtained or made and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate any Requirement of Law applicable to any Loan Party or any other Orthofix Entity, (c) will not violate or result in a default under any indenture, material agreement or other material instrument binding upon any Loan Party or any other Orthofix Entity or the assets of any Loan Party or other Orthofix Entity, or give rise to a right thereunder to require any payment to be made by any Loan Party or any other Orthofix Entity, and (d) will not result in the creation or imposition of any Lien on any asset of any Loan Party or any other Orthofix Entity, except Liens created pursuant to the Loan Documents.

SECTION 3.04.  Financial Condition; No Material Adverse Change.

(a)  The Company has heretofore furnished to the Lenders (i) its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal year ended December 31, 2014, reported on by Ernst & Young LLP, independent public accountants, and (ii) its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal quarter and the portion of the fiscal year ended June 30, 2015, certified by its Financial Officer.  Such financial statements (including the footnotes thereto) present fairly, in all material respects, the financial position and 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, subject to normal year-end audit adjustments, if applicable, and the absence of footnotes in the case of the statements referred to in clause (ii) above.

(b)  No event, change or condition has occurred that has had, or could reasonably be expected to have, a Material Adverse Effect, since December 31, 2014.

SECTION 3.05.  Properties, etc.

(a)  As of the date of this Agreement, Schedule 3.05 sets forth (i) the address of each parcel of real property that is owned or leased by the Loan Parties and (ii) the location of any tangible personal property of the Loan Parties located in the U.S., England or Wales with a fair market value in excess of the Dollar Amount of $250,000 (other than trade show booths and related assets, tangible personal property in transit or out for repair, held by sales representatives or customers or on consignment with third parties).  On the Effective Date, each of such leases and subleases that is material to the business of such Loan Party is valid and enforceable in accordance with its terms and is in full force and effect, and no default by any party to any such lease or sublease exists.  On each date after the Effective Date, each of such leases and subleases is valid and enforceable in accordance with its terms and is in full force and effect, and no default by any party to any such lease or sublease exists, except where the failure to be valid and enforceable or the existence of such default, individually or in the aggregate, could not reasonably be expected to have a Material 

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Adverse Effect.  Each Orthofix Entity has good and indefeasible title to, or valid leasehold interests in, all of its material real and personal property.  The real and personal property of each Orthofix Entity is free of all Liens other than those permitted by Section 6.02.

(b)  NeoMedics, Inc. owns no tangible or intangible personal or real property.  The UK Borrower and each UK Subsidiary (unless such UK Subsidiary is a Loan Party and its assets are pledged as Collateral) is a holding company, owning no tangible or intangible personal or real property except the Equity Interests described on Schedule 3.15 and cash and assets incidental to conducting and facilitating intercompany lending and investments and activities related to the ownership of its Subsidiaries.

(c)  Each Orthofix Entity owns, or is licensed to use, all material trademarks, tradenames, copyrights, patents and other intellectual property necessary to its business as currently conducted.  A correct and complete list of all registrations and applications of Material Intellectual Property owned by a Loan Party (including the title, counterparty and licensed Material Intellectual Property for any exclusive inbound written licenses to which any Loan Party is a party), as of the date of this Agreement, is set forth on Schedule 3.05.  The use of any Material Intellectual Property by each such Loan Party does not infringe in any material respect upon the rights of any other Person in a manner that could reasonably be expected to materially and adversely affect a material portion of the operations of such Loan Party.  Each Loan Party’s rights to any Material Intellectual Property that is necessary to its business as currently conducted are not subject to any licensing agreement or similar arrangement, except as disclosed on Schedule 3.05.

SECTION 3.06.  Litigation and Environmental Matters.

(a)  As of the Effective Date, there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority (including, but not limited to those regulatory agencies responsible for licensing, accrediting or issuing Medicare or Medicaid certifications) pending against or, to the knowledge of any Loan Party, threatened in writing against or adversely affecting any Orthofix Entity, (x) 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 (y) that purports to affect the legality, validity or enforceability of any Loan Document, any material provision thereof or the consummation of the Transactions, other than the Disclosed Matters set forth on Schedule 3.06.  On each date after the Effective Date, there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority (including, but not limited to those regulatory agencies responsible for licensing, accrediting or issuing Medicare or Medicaid certifications) pending against or, to the knowledge of any Loan Party, threatened against or affecting any Orthofix Entity (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 purports to affect the legality, validity or enforceability of any Loan Document, any material provision thereof or the consummation of the Transactions.

(b)  

(i)  as of the Effective Date, no Orthofix Entity has received notice of any claim with respect to any material Environmental Liability or knows of any basis for any material Environmental Liability, except for the Disclosed Matters, and

(ii)  except with respect to any matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Orthofix Entity (A) 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 or (B) has become subject to any Environmental Liability.

(c)  Since the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

SECTION 3.07.  Compliance with Laws and Agreements; No Default.  Except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, each Orthofix Entity is in compliance with (i) all Requirements of Law applicable to it or its property and (ii) all indentures, agreements and other instruments binding upon it or its property.  No Default has occurred and is continuing.  Without limiting the generality of the foregoing, each of the Loan Parties represents that:

(a)  Each Orthofix Entity is in compliance in all material respects with all Health Care Laws and requirements of Third Party Payor Arrangements applicable to it and its assets, business or operations.

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(b)  Each Orthofix Entity holds in full force and effect (without default, violation or noncompliance) all material Health Care Permits necessary for it to own, lease, sublease or operate its assets and facilities and to conduct its business and operations as presently conducted (including to obtain reimbursement under all Third Party Payor Arrangements in which it participates). No circumstance exists or event has occurred which could reasonably be expected to result in the suspension, revocation, termination, restriction, limitation, modification or non-renewal of any material Health Care Permit.

(c)  Each Orthofix Entity has timely filed or caused to be timely filed all material cost reports and other material reports of every kind whatsoever required by any Medical Reimbursement Program or Third Party Payor Arrangement to have been filed or made with respect to the operations of the Loan Parties. There are no material claims, actions or appeals pending before CMS, any administrative contractor, intermediary or carrier or any other Governmental Authority with respect to any Medical Reimbursement Programs, material cost reports or material claims filed by any Loan Party, or any material disallowance by any Governmental Authority in connection with any audit of such cost reports. No Orthofix Entity (i) has retained an overpayment received from, or failed to refund any amount due to any Medical Reimbursement Program or other Third Party Payor in violation, in any material respect, of any Health Care Law or Third Party Payor Arrangement, or (ii) has received written notice of, or has knowledge of, any material overpayment or material refunds due to any Third Party Payor or Medical Reimbursement Program.

(d)  Each Orthofix Entity is in compliance in all material respects with HIPAA.  Further, in each arrangement that is a business associate arrangement under HIPAA, each Orthofix Entity has: (i) entered into a written business associate agreement (as such term is defined under the HIPAA regulations) that meets the requirements of HIPAA in all material respects, (ii) at all times complied in all material respects with such business associate agreements in respect of the HIPAA privacy or security standards, and (iii) at no time experienced, had or received a report of a material unauthorized use or disclosure of Protected Health Information (as defined in the HIPAA regulations) or material privacy or security breach or other material privacy or security incident within the meaning of HIPAA.

(e)  Except as set forth on Schedule 3.07, no Orthofix Entity, nor any owner, officer, director, partner, agent or managing employee of any Orthofix Entity, is a party to or bound by any individual integrity agreement, corporate integrity agreement, corporate compliance agreement, deferred prosecution agreement, or other formal or informal agreement with any Governmental Authority concerning compliance with any Health Care Laws, any Medical Reimbursement Programs or the requirements of any Health Care Permit.

(f)  (i) To the knowledge of any Responsible Officer, there is no Orthofix Entity or individual employed by any such Orthofix Entity who may reasonably be expected to have criminal culpability or to be excluded or suspended from participation in any Medical Reimbursement Program for their corporate or individual actions or failures to act where such culpability, exclusion and/or suspension has or could be reasonably expected to result in a Material Adverse Effect; and (ii) there is no member of management continuing to be employed by any Orthofix Entity who may reasonably be expected to have individual culpability for matters under investigation by any Governmental Authority where such culpability has or could reasonably be expected to result in a Material Adverse Effect unless such member of management has been, within a reasonable period of time after discovery of such actual or potential culpability, either suspended or removed from positions of responsibility related to those activities under challenge by the Governmental Authority;

(g)  current billing policies, arrangements, protocols and instructions comply with expressly stated requirements of Medical Reimbursement Programs and are administered by properly trained personnel except where any such failure to comply could not reasonably be expected to result in a Material Adverse Effect;

(h)  current medical director compensation arrangements and other arrangements with referring physicians comply with domestic and foreign, federal and state self-referral and anti-kickback laws, including without limitation the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Stark Law (42 U.S.C. § 1395nn and §1395(q)), the civil False Claims Act (31 U.S.C. § 3729 et seq.), except where any such failure to comply could not reasonably be expected to result in a Material Adverse Effect;

(i)  none of the Orthofix Entities is currently, nor has in the past been subject to any domestic or foreign, federal, state, local governmental or private payor civil or criminal inspections, investigations, inquiries or audits involving and/or related to its activities, except for routine inspections, investigations, inquiries or audits in the ordinary course not anticipated to result in a Material Adverse Effect and other inspections, investigations, inquiries or audits that could not reasonably be expected to result in a Material Adverse Effect;

(j)  except as set forth on Schedule 3.07 or in materials previously provided to the Administrative Agent’s counsel, no Orthofix Entity nor any owner, officer, director, partner, agent or managing employee or Person with a “direct or indirect ownership interest” (as that phrase is defined in 42 C.F.R. § 420.201) in any Orthofix Entity, (i) has been excluded from any Medical Reimbursement Program or from participation in a Federal Health Care Program (as that term is defined in 42 U.S.C. §1320a-7b) or 

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had a civil monetary penalty assessed pursuant to 42 U.S.C. § 1320a-7; (ii) has been convicted (as that term is defined in 42 C.F.R. §1001.2) of any of those offenses described in 42 U.S.C. §1320a-7b or 18 U.S.C. §§669, 1035, 1347 or 1518, including, without limitation any of the following categories of offenses: (A) criminal offenses relating to the delivery of an item or service under any federal health care program (as that term is defined in 42 U.S.C. §1320a-7b) or healthcare benefit program (as that term is defined in 18 U.S.C. §24b) or any foreign health care program or foreign health care benefit program, (B) criminal offenses under domestic or foreign, federal or state law relating to patient neglect or abuse in connection with the delivery of a healthcare item or service, (C) criminal offenses under laws relating to fraud and abuse, theft, embezzlement, false statements to third parties, money laundering, kickbacks, breach of fiduciary responsibility or other financial misconduct in connection with the delivery of a healthcare item or service or with respect to any act or omission in a program operated by or financed in whole or in part by any domestic or foreign, federal, state or local governmental agency, (D) laws relating to the interference with or obstruction of any investigations into any criminal offenses described in this clause (e), or (E) criminal offenses under laws relating to the unlawful manufacturing, distribution, prescription or dispensing of a controlled substance; or (iii) is, to the knowledge of any Responsible Officer, involved or named in a U.S. Attorney complaint made or any other action taken pursuant to the False Claims Act under 31 U.S.C. §§3729-3731 or qui tam action brought pursuant to 31 U.S.C. §3729 et seq; and

(k)  each Orthofix Entity is in compliance in all material respects with any applicable laws or regulations of the U.S., the UK, the European Union and, to the extent the laws of which are substantially similar to U.S. law, any other Governmental Authority, in each case relating to money laundering or terrorist financing, including, without limitation, the Bank Secrecy Act, 31 U.S.C. sections 5301 et seq.; the USA Patriot Act; Laundering of Monetary Instruments, 18 U.S.C. section 1956; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. section 1957; the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations, 31 C.F.R. Part 103; and any similar laws or regulations of such Governmental Authorities currently in force or hereafter enacted.

SECTION 3.08.  Investment Company Status.  No Orthofix Entity is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

SECTION 3.09.  Taxes.  Each Orthofix Entity, as applicable, has timely filed or caused to be filed all federal, state, material foreign and other material Tax returns and reports required to have been filed and has paid or caused to be paid all federal, state, material foreign and other material Taxes required to have been paid by it, except such Taxes (i) that are not yet delinquent or (ii) that are being contested in good faith by appropriate proceedings and for which such Orthofix Entity, as applicable, has set aside on its books adequate reserves.  No tax liens have been filed and no claims are being asserted with respect to any such taxes against a material portion of the Collateral, except such tax liens that constitute Permitted Encumbrances.

SECTION 3.10.  ERISA and Foreign Pension Plans.

(a)  On the Effective Date, no ERISA Event has occurred or is reasonably expected to occur.  On each date after the Effective Date, no ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.  As of the Effective Date, the present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan.

(b)  On the Effective Date, each Foreign Pension Plan is in compliance with all Requirements of Law applicable thereto and the respective requirements of the governing documents for such plan.  On each date after the Effective Date, each Foreign Pension Plan is in compliance with all Requirements of Law applicable thereto and the respective requirements of the governing documents for such plan except to the extent such non-compliance could not reasonably be expected to result in a Material Adverse Effect.  With respect to each Foreign Pension Plan, (i) on the Effective Date, no Orthofix Entity, its Affiliates or any of its directors, officers, employees or agents has engaged in a transaction, or other act or omission (including entering into this Agreement or any Loan Document and any act done or to be done in connection with this Agreement or any Loan Document), that has subjected, or could reasonably be expected to subject, such Orthofix Entity, directly or indirectly, to any penalty (including any tax or civil penalty), fine, claim or other liability (including any liability under a contribution notice or financial support direction (as those terms are defined in the United Kingdom Pensions Act 2004), or any liability or amount payable under section 75 or 75A of the United Kingdom Pensions Act 1995) and there are no facts or circumstances which may give rise to any such penalty, fine, claim, or other liability, and (ii) on each date after the Effective Date, no Orthofix Entity, its Affiliates or any of its directors, officers, employees or agents has engaged in a transaction, or other act or omission (including entering into this Agreement or any Loan Document and any act done or to be done in connection with this Agreement or any Loan Document), that has subjected, or could reasonably be expected to subject, such Orthofix Entity, directly or indirectly, to any penalty (including any tax or civil penalty), fine, claim or other liability (including any liability under a contribution notice or financial support direction (as those terms are defined in the United Kingdom Pensions Act 2004), or any liability or amount payable under section 75 or 75A of the United Kingdom Pensions Act 1995) that could 

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reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and there are no facts or circumstances which may give rise to any such penalty, fine, claim, or other liability.  With respect to each Foreign Pension Plan, reserves have been established in the financial statements furnished to the Administrative Agent in respect of any unfunded liabilities in accordance with applicable law or, where required, in accordance with ordinary accounting practices in the jurisdiction in which such Foreign Pension Plan is maintained.  The aggregate unfunded liabilities, with respect to such Foreign Pension Plans could not reasonably be expected to result in a Material Adverse Effect and as of the Effective Date, there are no unfunded liabilities with respect to all such Foreign Pension Plans.  On the Effective Date, there are no actions, suits or claims (other than routine claims for benefits) pending or threatened against any Orthofix Entity or any of its Affiliates with respect to any Foreign Pension Plan.  On the Effective Date, there are no actions, suits or claims (other than routine claims for benefits) pending or threatened against any Orthofix Entity or any of its Affiliates with respect to any Foreign Pension Plan which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

SECTION 3.11.  Disclosure.  The Loan Parties have disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which any Orthofix Entity is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  None of the reports, financial statements, certificates or other written information (other than the projections, other forward looking information and information of a general economic or general industry nature) furnished by or on behalf of any Orthofix Entity to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document (taken as a whole and as modified or supplemented by other information so furnished) contains when furnished any material misstatement of fact or omits to state any material fact necessary to make the statements therein (taken as a whole), in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions believed by the Loan Parties to be reasonable at the time delivered and, if such projected financial information was delivered prior to the Effective Date, as of the Effective Date (it being recognized by the Lenders that any projections as to future events are not to be viewed as facts or factual information and that actual results during the period or periods covered by any such projections may differ from the projected results, and such differences may be material).

SECTION 3.12.  Other Agreements; Material Agreements.

(a)  No Orthofix Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Medicaid Provider Agreement, Medicare Provider Agreement or other agreement or instrument to which such Person is a party, which default has resulted in, or if not remedied within any applicable grace period could result in, the revocation, termination, cancellation or material suspension of Medicaid Certification or Medicare Certification of any such Person.

(b)  All Material Agreements as of the date of this Agreement are listed on Schedule 3.12.  No Orthofix Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (i) any Material Agreement or (ii) any agreement or instrument evidencing or governing Material Indebtedness.

SECTION 3.13.  Solvency.  (a) Immediately after giving effect to the consummation of the Transactions to occur on the Effective Date, (i) the fair value of the assets of the Loan Parties, taken as a whole, at a fair valuation, will exceed their consolidated debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of the Loan Parties, taken as a whole, will be greater than the amount that will be required to pay the probable liability of their consolidated debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) the Loan Parties, taken as a whole, will be able to pay their consolidated debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) the Loan Parties, taken as a whole, will not have unreasonably small capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conducted after the Effective Date.

(b)  The Loan Parties, taken as a whole, do not intend to, nor will they permit any other Orthofix Entity, taken as a whole with all other Orthofix Entities to, and the Loan Parties, taken as a whole, do not believe that they or any other Orthofix Entity, taken as a whole with all other Orthofix Entities, will, incur debts beyond their ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by the Loan Parties or any such Orthofix Entity and the timing of the amounts of cash to be payable on or in respect of their consolidated Indebtedness or the Indebtedness of any such Orthofix Entity.

SECTION 3.14.  Insurance.  Schedule 3.14 sets forth a description of all insurance maintained by or on behalf of each of the Loan Parties as of the Effective Date.  As of the Effective Date, all premiums in respect of such insurance have been paid.  The insurance maintained by or on behalf of the each of the Orthofix Entities is adequate and is customary for companies engaged in the same or similar businesses operating in the same or similar locations.

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SECTION 3.15.  Capitalization; Subsidiaries; Intercompany Loans.

(a)  Schedule 3.15 sets forth as of the Effective Date (i) the type of entity of the Company, (ii) a true and complete listing of each class of the Company’s issued and outstanding Equity Interests, of which all of such Equity Interests are validly issued, fully paid and non-assessable, (iii) a correct and complete list of the name of each Subsidiary, (iv) a true and complete listing of each class of each of the Subsidiaries’ issued and outstanding Equity Interests, of which all of such Equity Interests are owned beneficially and of record by the Persons identified on Schedule 3.15, and (v) the type of entity of each Subsidiary.  All of the issued and outstanding Equity Interests owned by any Orthofix Entity have been (to the extent such concepts are relevant with respect to such ownership interests) duly authorized and validly issued and are fully paid and non-assessable.

(b)  All Intercompany Loans as of the Effective Date (i) are described on Schedule 6.01(a), (ii) in the case of any such Intercompany Loans owed by any Loan Party, constitute Subordinated Indebtedness and (iii) in the case of any such Intercompany Loan owed to any such Loan Party (x) are evidenced by duly completed and executed promissory notes in form reasonably satisfactory to the Administrative Agent, and (y) as of the Effective Date will be delivered to the Administrative Agent together with an executed allonge in form reasonably satisfactory to the Administrative Agent.

SECTION 3.16.  Security Interest in Collateral.  The provisions of the Collateral Documents create legal and valid Liens on all the Collateral in favor of the Administrative Agent, for the benefit of the Secured Parties, and such Liens constitute perfected and continuing Liens on the Collateral, securing the Secured Obligations, enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens on the Collateral except in the case of (a) Liens permitted under Section 6.02 and (b) Liens perfected only by possession (including possession of any certificate of title), to the extent the Administrative Agent has not obtained or does not maintain possession of such Collateral.

SECTION 3.17.  Employment Matters.

(a)  As of the Effective Date, (i) there are no strikes, lockouts or slowdowns against any Orthofix Entity pending or, to the knowledge of any Responsible Officer of any Loan Party, threatened, (ii) the hours worked by and payments made to employees of the Orthofix Entities have not been in violation, in any material respect, of the Fair Labor Standards Act or any other applicable federal, state, local or foreign law dealing with such matters and (iii) all payments due from any Orthofix Entity, or for which any claim may be made against any Orthofix Entity, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books, in all material respects, of such Orthofix Entity.

(b)  After the Effective Date, except as could not reasonably be expected to have a Material Adverse Effect, (i) there are no strikes, lockouts or slowdowns against any Orthofix Entity pending or, to the knowledge of any Responsible Officer of any Loan Party, threatened, (ii) the hours worked by and payments made to employees of the Orthofix Entities have not been in violation of the Fair Labor Standards Act or any other applicable federal, state, local or foreign law dealing with such matters and (iii) all payments due from any Orthofix Entity, or for which any claim may be made against any Orthofix Entity, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of such Orthofix Entity.

SECTION 3.18.  Federal Reserve Regulations.  No part of the proceeds of any Loan or Letter of Credit has been used or will be used, whether directly or indirectly, to purchase or carry any margin stock (within the meaning of Regulation U of the Board), to extend credit to others for purposes of purchasing or carrying any margin stock or for any other purpose that entails a violation of any of Regulations T, U and X of the Board.  No Orthofix Entity is engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock, or extending credit for the purpose of purchasing or carrying margin stock.  Following the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of the Borrowers only or of the Company and its Subsidiaries on a consolidated basis) will be margin stock.

SECTION 3.19.  Use of Proceeds.  The proceeds of the Loans have been used and will be used, whether directly or indirectly as set forth in Section 5.08.

SECTION 3.20.  No Burdensome Restrictions.  No Orthofix Entity is subject to any Burdensome Restrictions except Burdensome Restrictions permitted under Section 6.10.

SECTION 3.21.  Anti-Corruption Laws and Sanctions.  Each Orthofix Entity has implemented and maintains in effect policies and procedures designed to ensure compliance by each such Orthofix Entity and its respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and, except as set forth on Schedule 3.21, each such Orthofix Entity and its respective officers and employees and, to the knowledge of the Loan Parties, each such Orthofix Entity’s directors and agents, are in compliance with Anti‐Corruption Laws and applicable Sanctions and are not knowingly engaged in any activity that would 

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reasonably be expected to result in any Orthofix Entity being designated as a Sanctioned Person.  None of (a) any Orthofix Entity or any of their respective directors, officers or employees, or (b) to the knowledge of any Loan Party or its Subsidiaries, any agent of any Orthofix Entity that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of Credit, use of proceeds, Transaction or other transaction contemplated by this Agreement or the other Loan Documents will violate any Anti-Corruption Law or applicable Sanctions.

SECTION 3.22.  Fraud and Abuse.  To the knowledge of any Responsible Officer, no Orthofix Entity has, nor has any of their officers or directors, engaged in any activities which are prohibited under federal Medicare and Medicaid statutes, 42 U.S.C. § 1320a‐7b, or 42 U.S.C. § 1395nn, any other foreign or domestic statute related to any Medical Reimbursement Program or the regulations promulgated pursuant to such statutes or related domestic or foreign, federal, state or local statutes or regulations, or which are prohibited by binding rules of professional conduct, including but not limited to the following:  (a) knowingly and willfully making or causing to be made a false statement or representation of a material fact in any applications for any benefit or payment; (b) knowingly and willfully making or causing to be made any false statement or representation of a material fact for use in determining rights to any benefit or payment; (c) failing to disclose knowledge by a claimant of the occurrence of any event affecting the initial or continued right to any benefit or payment on its own behalf or on behalf of another with the intent to secure such benefit or payment fraudulently; (d) knowingly and willfully soliciting or receiving any remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash or in kind or offering to pay such remuneration (i) in return for referring an individual to a Person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part by Medicare, Medicaid or other applicable Third Party Payors, or (ii) in return for purchasing, leasing or ordering or arranging for or recommending the purchasing, leasing or ordering of any good, facility, service, or item for which payment may be made in whole or in part by Medicare, Medicaid or other applicable Third Party Payors, except in each case for any such prohibited activity that could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.23.  Licensing and Accreditation.

(a)  On the Effective Date, each of the Orthofix Entities has, to the extent applicable or required in connection with the business of such Orthofix Entity:  (i) obtained and maintains in good standing all material required licenses; (ii) to the extent reasonably determined to be material to the business of such Orthofix Entity in the industry in which it is engaged, obtained and maintains accreditation from all generally recognized accrediting agencies; (iii) obtained and maintains Medicaid Certification and Medicare Certification; and (iv) entered into and maintains in good standing its Medicare Provider Agreement and its Medicaid Provider Agreement, and all such required licenses are in full force and effect on the date hereof and have not been revoked or suspended or otherwise limited, and

(b)  On each date after the Effective Date, each of the Orthofix Entities has, to the extent applicable:  (i) obtained and maintains in good standing all required licenses; (ii) to the extent prudent and customary in the industry in which it is engaged, obtained and maintains accreditation from all generally recognized accrediting agencies; (iii) obtained and maintains Medicaid Certification and Medicare Certification; and (iv) entered into and maintains in good standing its Medicare Provider Agreement and its Medicaid Provider Agreement, except in each case to the extent the absence of such license, accreditation, certification or good standing could not reasonably be expected to have a Material Adverse Effect.  All such required licenses are in full force and effect on the date hereof and have not been revoked or suspended or otherwise limited, except in each case to the extent such revocation, suspension or other limitation could not reasonably be expected to have a Material Adverse Effect.

SECTION 3.24.  Other Regulatory Protection.

(a)  As of the Effective Date,

(i)  none of the Orthofix Entities manufactures pharmaceutical products and each Orthofix Entity is in compliance in all material respects with all applicable rules, regulations and other requirements of the FDA, the FTC, OSHA the Consumer Product Safety Commission, the U.S. Customs Service and the U.S. Postal Service and all other state, federal or foreign regulatory authorities, or jurisdictions in which any of the Orthofix Entities do business or distribute and market products, and

(ii)  neither the FDA, the FTC, OSHA, the Consumer Product Safety Commission, nor any other such regulatory authority has requested (or, to the knowledge of any Responsible Officer, are considering requesting) any product recalls or other enforcement actions.

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(b)  On each date after the Effective Date,

(i)  none of the Orthofix Entities manufactures pharmaceutical products and each Orthofix Entity is in compliance with all applicable rules, regulations and other requirements of the FDA, the FTC, OSHA the Consumer Product Safety Commission, the U.S. Customs Service and the U.S. Postal Service and all other state, federal or foreign regulatory authorities, or jurisdictions in which any of the Orthofix Entities do business or distribute and market products, except to the extent that any such noncompliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, and

(ii)  neither the FDA, the FTC, OSHA, the Consumer Product Safety Commission, nor any other such regulatory authority has requested (or, to the knowledge of any Responsible Officer, are considering requesting) any product recalls or other enforcement actions that (a) if not complied with, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and (b) with which the Orthofix Entities have not complied within the time period allowed.

SECTION 3.25.  Reimbursement From Third Party Payors.  The accounts receivable of the Orthofix Entities have been and will continue to be adjusted to reflect the reimbursement policies (both those most recently published in writing as well as those not in writing which have been verbally communicated) of Third Party Payors in all material respects.  In particular, accounts receivable relating to Third Party Payors do not and shall not exceed amounts any obligee is entered to receive under any capitation arrangement, fee schedule, discount formula, cost‐based reimbursement or other adjustment or limitation to its usual charges in all material respects.

SECTION 3.26.  Material Agreements.  No Orthofix Entity is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (a) except as set forth in clause (b) below, any agreement or instrument to which any such Person is a party, which default, individually or in the aggregate, has, or if not remedied within any applicable grace period could reasonably be expected to have, a Material Adverse Effect or (b) any Medicaid Provider Agreement, Medicare Provider Agreement or other agreement or instrument to which such Person is a party, which default has resulted in, or if not remedied within any applicable grace period could result in, the revocation, termination, cancellation or material suspension of Medicaid Certification or Medicare Certification of any such Person.

SECTION 3.27.  Affiliate Transactions.  Except as set forth on Schedule 3.27, as of the Effective Date, there are no (a) Intercompany Loans or (b) supply agreements or arrangements that involve an obligation of any Loan Party owing to any Non-Loan Party or any other Affiliate of any Orthofix Entity.

SECTION 3.28.  Common Enterprise.  Each Loan Party expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from (a) successful operations of each of the other Loan Parties and (b) the credit extended by the Lenders to the Borrowers hereunder, both in their separate capacities and as members of the group of companies.  Each Loan Party has determined that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by such Loan Party is within its purpose, in furtherance of its direct and/or indirect business interests, will be of direct and indirect benefit to such Loan Party, and is in its best interest.

SECTION 3.29.  Foreign Subsidiaries.

(a)  Each Foreign Subsidiary of the Company is subject to civil and commercial laws, rules and regulations, including without limitation, with respect to its obligations under the Loan Documents to which it is a party (collectively, the “Applicable Foreign Loan Party Documents”), and the execution, delivery and performance by such Foreign Subsidiary of the Company of the Applicable Foreign Loan Party Documents constitute and will constitute private and commercial acts and not public or governmental acts.  No Foreign Subsidiary of the Company nor any of its property has any immunity from suit, execution, attachment or jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which such Foreign Subsidiary of the Company is organized and existing, including but without limitation, with respect to its obligations under the Applicable Foreign Loan Party Documents.

(b)  On the Effective Date, the Applicable Foreign Loan Party Documents are in proper legal form under the laws, rules and regulations of the jurisdiction in which such Foreign Subsidiary of the Company is organized and existing for the enforcement thereof against such Foreign Subsidiary of the Company under the laws, rules and regulations of such jurisdiction, and to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Loan Party Documents, 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.  On the Effective Date, it is not necessary to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Loan Party 

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Documents that the Applicable Foreign Loan Party Documents be filed, registered or recorded with, or executed or notarized before, any court or other authority in the jurisdiction in which any Foreign Subsidiary of the Company is organized and existing or that any registration charge or stamp or similar tax be paid on or in respect of the Applicable Foreign Loan Party Documents or any other document, except for (i) any such filing, registration, recording, execution or notarization as has been made, will be made by the Administrative Agent or counsel acting for the Administrative Agent, or is not required to be made until the Applicable Foreign Loan Party Document or any other document is sought to be enforced and (ii) any charge or tax as has been timely paid.

(c)  On the Effective Date, there is no Tax imposed by any Governmental Authority in or of the jurisdiction in which such Foreign Subsidiary of the Company is organized and existing either (i) on or by virtue of the execution or delivery of the Applicable Foreign Loan Party Documents or (ii) on any payment to be made by such Foreign Subsidiary of the Company pursuant to the Applicable Foreign Loan Party Documents, except as has been disclosed to the Administrative Agent in writing.

(d)  On the Effective Date, the execution, delivery and performance of the Applicable Foreign Loan Party Documents executed by such Foreign Subsidiary of the Company are, under applicable foreign exchange control regulations of the jurisdiction in which such Foreign Subsidiary of the Company is organized and existing, not subject to any notification or authorization except (i) such as have been made or obtained or (ii) such as cannot be made or obtained until a later date (provided that any notification or authorization described in clause (ii) shall be made or obtained as soon as is reasonably practicable).

SECTION 3.30.  Classification as Senior Indebtedness.  The Secured Obligations constitute “Senior Indebtedness” under and as may be defined in any agreement governing any outstanding Subordinated Indebtedness and the subordination provisions set forth in each such agreement are legally valid and enforceable against the parties thereto.

SECTION 3.31.  Tax Shelter Regulations.  No Borrower intends to treat the Transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011 4).  In the event any Borrower determines to take any action inconsistent with such intention, the Borrower Representative will promptly notify the Administrative Agent thereof.  If the Borrower Representative so notifies the Administrative Agent, each Borrower acknowledges that one or more of the Lenders may treat its Loans and/or Letters of Credit as part of a transaction that is subject to Treasury Regulation Section 301.6112 1, and such Lender or Lenders, as applicable, will maintain the lists and other records required by such treasury regulation.

ARTICLE IV

Conditions

SECTION 4.01.  Effective Date.  The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02 or otherwise agreed to be delivered on a post-closing basis as provided in Section 5.15):

(a)  Credit Agreement and Loan Documents.  The Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include fax or other electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement, (ii) certificates representing the Equity Interests of the Borrowers and any other entity pledged pursuant to the Security Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor and (iii) except as set forth on Schedule 5.15, duly executed copies of the Loan Documents and such other certificates, documents, instruments and agreements as the Administrative Agent shall reasonably request in connection with the transactions contemplated by this Agreement and the other Loan Documents, including any promissory notes requested by a Lender pursuant to Section 2.09 payable to the order of each such requesting Lender, and written opinions addressed to the Administrative Agent, the Issuing Bank and the Lenders of the Loan Parties’ U.S. counsel, and Curacao counsel, in each case acceptable to the Administrative Agent.

(b)  Financial Statements and Projections.  The Lenders shall have received (i) audited consolidated financial statements of the Company for the 2013 and 2014 fiscal years, (ii) unaudited consolidating financial statements of the Company for the 2014 fiscal year, (iii) unaudited interim consolidated and consolidating financial statements for each of the Company, for the fiscal quarters ended March 31, 2015 and June 30, 2015, and such financial statements shall not, in the reasonable judgment of the Administrative Agent, reflect any material adverse change in the consolidated financial condition of the Loan Parties, as reflected in the audited, consolidated financial statements described in clause (i) of this paragraph and (iv) satisfactory Projections through August 31, 2019.

(c)  Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Effective Date and executed by any officer, director, manager 

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or member of such Loan Party (or directors in the case of a Loan Party incorporated in England and Wales), which shall (A) certify the resolutions of its Board of Directors, members or other body authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the officers of such Loan Party authorized to sign the Loan Documents to which it is a party and, in the case of a Borrower, its Financial Officers, and (C) contain appropriate attachments, including the charter, articles or certificate of organization or incorporation of each Loan Party certified, where applicable, by the relevant authority of the jurisdiction of organization of such Loan Party and a true and correct copy of its bylaws or operating, management or partnership agreement, or other organizational or governing documents, and (ii) a good standing certificate or comparable instrument for each Loan Party from its jurisdiction of organization.

(d)  No Default Certificate.  The Administrative Agent shall have received a certificate, signed by the a Financial Officer of each Borrower, dated as of the Effective Date (i) stating that no Default has occurred and is continuing, (ii) stating that the representations and warranties contained in the Loan Documents are true and correct as of such date in all material respects as of such date, except that any representation and warranty which by its terms is made as of a specified date shall be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be true and correct in all respects, and (iii) certifying as to any other factual matters as may be reasonably requested by the Administrative Agent.

(e)  Fees.  The Lenders and the Administrative Agent shall have received all fees required to be paid under any Fee Letter, and all other fees and expenses required to be reimbursed for which invoices have been presented (including the reasonable fees and expenses of legal counsel), before the Effective Date.  All such amounts may be paid with proceeds of Loans made on the Effective Date and will be reflected in the funding instructions given by the Borrower Representative to the Administrative Agent on or before the Effective Date.

(f)  Lien Searches.  The Administrative Agent shall have received the results of a recent lien search in the jurisdiction of organization of each Loan Party reasonably requested by the Administrative Agent, and each jurisdiction reasonably requested by the Administrative Agent where assets of the Loan Parties, or such Loan Parties are located, and such search shall reveal no Liens on any of the assets of the Loan Parties except as permitted by Section 6.02.

(g)  Credit Termination.  The Administrative Agent shall have received satisfactory evidence Indebtedness (including contingent Indebtedness) not permitted to exist under Section 6.01 has been repaid in full and all commitments for all such Indebtedness have been terminated.

(h)  Funding Account.  The Administrative Agent shall have received a notice setting forth the deposit account of the Borrowers (the “Funding Account”) to which the Administrative Agent is authorized by the Borrowers to transfer the proceeds of any Borrowings requested or authorized pursuant to this Agreement.

(i)  Solvency.  The Administrative Agent shall have received a solvency certificate signed by a Financial Officer dated the Effective Date in form and substance reasonably satisfactory to the Administrative Agent.

(j)  Insurance.  The Administrative Agent shall have received evidence of insurance coverage for each of the Loan Parties in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of this Agreement and the Security Agreement.

(k)  Priority.  Subject to Section 5.15 and Liens permitted by Section 6.02 and to the extent required by the Collateral Documents, the Administrative Agent shall have received evidence satisfactory to it of a first and prior lien on all Collateral, including without limitation, Intercompany Loans owing to any Loan Party listed on Schedule 6.01(a).

(l)  Legal Due Diligence.  The Administrative Agent and its counsel, including without limitation, U.S. and UK counsel, shall have completed all legal due diligence, the results of which shall be satisfactory to Administrative Agent in its sole discretion.

(m)  USA PATRIOT Act, Etc.  The Administrative Agent and Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including USA PATRIOT Act, and a properly completed and signed IRS Form W-8 or W-9, as applicable, for each Loan Party.

(n)  Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent, the Issuing Bank, any Lender or their respective counsel may have reasonably requested other than those items to be delivered post-closing in accordance with Section 5.15.

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The Administrative Agent shall notify the Borrowers, the Lenders and the Issuing Bank of the Effective Date, and such notice shall be conclusive and binding.  Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 2:00 p.m., Local Time, on September 30, 2015 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

SECTION 4.02.  Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

(a)  The representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with the same effect as though made 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 (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).

(b)  At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing.

(c)  In the case of a Borrowing to be denominated in a Foreign Currency, there shall not have occurred any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which in the reasonable opinion of the Administrative Agent, the Required Lenders (in the case of any Loans to be denominated in a Foreign Currency) or the Issuing Bank  (in the case of any Letter of Credit to be denominated in an Foreign Currency) would make it impracticable for such Borrowing to be denominated in the relevant Foreign Currency.

(d)  After giving effect to any Borrowing or the issuance, amendment, renewal or extension of any Letter of Credit, Availability shall not be less than zero.

(e)  No event shall have occurred and no condition shall exist which has or could be reasonably expected to have a Material Adverse Effect.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the matters specified in paragraphs (a), (b), (d) and (e) of this Section.

ARTICLE V

Affirmative Covenants

Until the Payment in Full of all Obligations, each Loan Party executing this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lenders that:

SECTION 5.01.  Financial Statements and Other Information.  The Borrower Representative will furnish to the Administrative Agent:

(a)  within ninety (90) days after the end of each fiscal year of the Company and the Borrowers:

(i)  (x) the Company’s audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young LLP, any other  independent public accountants of recognized national standing or otherwise acceptable to the Required Lenders (without a “going concern” or like qualification, commentary or exception, and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, accompanied by any management letter prepared by said accountant, and (y) the Company’s unaudited consolidating balance sheet and related statement of operations as of the end of and for such year, and

(ii)  unaudited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows for Victory as of the end of and for such year, setting forth in each case in comparative form the figures for the previous 

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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 a Financial Officer of the Borrower Representative as presenting fairly in all material respects the financial condition and results of operations of Victory and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

(b)  within sixty (60) days after the end of each of the first three fiscal quarters of each fiscal year of the Company, (i) its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of such 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 a Financial Officer of the Borrower Representative 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 consistently applied, subject to normal year-end audit adjustments and if applicable, the absence of footnotes and (ii) its consolidating balance sheet and related statements of operations as of the end of and for such fiscal quarter and the then elapsed portion of such fiscal year;

(c)  concurrently with any delivery of financial statements under clause (a) or (b) above (collectively or individually, as the context requires, the “Financial Statements”), a certificate of a Financial Officer of the Borrower Representative in substantially the form of Exhibit B or any other form approved by the Administrative Agent (i) certifying as presenting fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated and consolidating basis in accordance with GAAP consistently applied, (subject to normal year-end audit adjustments and if applicable, the absence of footnotes except with respect to the audited statements), (ii) 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, (iii) setting forth reasonably detailed calculations demonstrating compliance with Sections 6.12(a) and (b), (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the Financial Statements accompanying such certificate; (v) setting forth either a list that identifies each Domestic Subsidiary of the Company that is an Immaterial Subsidiary as of the date of delivery of such Compliance Certificate or a confirmation that there is no change in such information since the later of the Effective Date or the date of the last such list, (vi) setting forth either a list that identifies each Material Domestic Subsidiary of the Company that is an not Wholly Owned as of the date of delivery of such Compliance Certificate or a confirmation that there is no change in such information since the later of the Effective Date or the date of the last such list and (vii) setting forth reasonably detailed calculations demonstrating (A) the amount of the Non-Loan Party Available Funds on such date of delivery and the amount of other Investments outstanding as permitted by clauses (h), (k), (l) and (m) of Section 6.04, (B) the amount of Indebtedness outstanding permitted by Section 6.01(l) and any Liens securing such Indebtedness permitted by Section 6.02(g), and (C) the amount of assets and properties sold, leased, transferred or disposed for such period and over the term of this Agreement permitted by Section 6.05(f);

(d)  concurrently with any delivery of 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)  as soon as available, but in any event no later than sixty (60) days after the end of each fiscal year of the Company, a copy of the detailed annual budget (including a projected consolidated balance sheet, income statement and cash flow statement and consolidating balance sheet and income statement) of the Company on a quarterly basis of the upcoming fiscal year (the “Projections”), together with a summary of the material assumptions made in preparation of such annual budget or plan and otherwise in form reasonably satisfactory to the Administrative Agent;

(f)  promptly and in any event within ten (10) days after the same become publicly available and without duplication of any documents or information delivered pursuant to another clause of this Section 5.01 or Section 5.02, copies of all periodic and other reports, proxy statements and other material information filed by the Company or any other Orthofix Entity with the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange, as the case may be;

(g)  promptly following any request therefor, copies of any detailed audit reports and final management letters submitted to the board of directors (or the audit committee of the board of directors) of the Company by independent accountants in connection with the accounts or books of any Orthofix Entity or any of their Subsidiaries, or any audit of any of them;

(h)  promptly following any request therefor, such other information regarding the operations, material changes in ownership of Equity Interests of the Company, business affairs and financial condition of any Orthofix Entity, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request, including a detailed listing of all changes to Intercompany Loans and any other intercompany advances or transfers made (i) among the Orthofix Entities, (ii) among the Loan 

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Parties, (iii) between (x) any one or more Loan Parties and (y) any one or more Non-Loan Parties and (iv) between (x) any one or more Orthofix Entities and (y) any one or more Affiliates of any Orthofix Entity; and

(i)  promptly after any request therefor by the Administrative Agent or any Lender, copies of (i) any documents described in Section 101(k)(1) of ERISA that the Company or any ERISA Affiliate may request with respect to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of ERISA that the Company or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided that if the Company or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, the Company or the applicable ERISA Affiliate shall promptly make a request for such documents and notices from such administrator or sponsor and shall provide copies of such documents and notices promptly after receipt thereof.

The Company represents and warrants that it, its controlling Person and any Subsidiary, in each case, if any, files its financial statements with the SEC and/or makes its financial statements available to potential holders of its 144A securities, and, accordingly, the Company hereby (x) authorizes the Administrative Agent to make the financial statements to be provided under Section 5.01(a)(i) and (ii) and Section 5.01(b) above, along with the Loan Documents, available to Public-Siders and (y) agrees that at the time such financial statements are provided hereunder, they shall already have been made available to holders of its securities.  The Company will not request that any other material be posted to Public-Siders without expressly representing and warranting to the Administrative Agent in writing that such materials do not constitute material non-public information within the meaning of the federal securities laws or that the Company has no outstanding publicly traded securities, including 144A securities.  In no event shall the Administrative Agent post compliance certificates or budgets to Public-Siders.

Documents required to be delivered pursuant to Section 5.01(a), (b), (f) and (g) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (x) on which the Company posts such documents, or provides a link thereto on the Company’s website; or (y) on which such documents are posted on the Company’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third party website or whether sponsored by the Administrative Agent); provided that the Borrower Representative shall notify (by facsimile or electronic mail) the Administrative Agent of the posting of any such documents (who shall then give notice of any such posting to the Lenders) and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents or provides a link thereto.

SECTION 5.02.  Notices of Material Events.  The Borrower Representative will furnish to the Administrative Agent prompt (but in any event within any time period that may be specified below)(for distribution to each Lender) written notice upon any Responsible Officer of the Loan Parties becoming aware of the following:

(a)  the occurrence of any Default;

(b)  receipt of any notice of any investigation by a Governmental Authority or any litigation or proceeding commenced or threatened in writing against any Orthofix Entity that (i) alleges criminal misconduct by any Orthofix Entity (except to the extent disclosure of such investigation is prohibited by applicable Law or court order), (ii) alleges the violation of, or seeks to impose remedies against any Orthofix Entity under, any Environmental Law or related Requirement of Law, or seeks to impose Environmental Liability, that could reasonably be expected to have a Material Adverse Effect; (iii) asserts liability on the part of any Orthofix Entity in excess of the Dollar Amount of $2,000,000 in respect of any tax, fee, assessment, or other governmental charge, (iv) involves any material product recall with respect to any Orthofix Entity or (v) could reasonably be expected to have a Material Adverse Effect;

(c)  the occurrence of (i) 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 Orthofix Entities in an aggregate amount exceeding the Dollar Amount of $500,000, (ii) the United Kingdom Pensions Regulator issuing a financial support direction or a contribution notice (as those terms are defined in the United Kingdom Pensions Act 2004) in relation to any Foreign Pension Plan, (iii) any amount being due to any Foreign Pension Plan pursuant to Section 75 or 75A of the United Kingdom Pensions Act 1995, and/or (iv) an amount becoming payable under section 75 or 75A of the United Kingdom Pensions Act of 1995;

(d)  any involvement of any Orthofix Entity in a pending civil or criminal investigation, criminal action or civil proposed debarment, exclusion or other sanctioning action related to any Federal, state or foreign healthcare program;

(e)  the institution of any investigation or proceeding against any Orthofix Entity to suspend, revoke or terminate or which may reasonably be expected to result in the termination of any Medicaid Provider Agreement, Medicaid Certification, Medicare Provider Agreement, Medicare Certification, material Health Care Permit or exclusion from any Medical Reimbursement Program or Third Party Payor Arrangement; and

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

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower Representative 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.  Each Loan Party will, and will cause each other Orthofix Entity to, (a) do or cause to be done all things necessary to preserve, renew and keep in full force and effect its (i) legal existence under the laws of the jurisdiction of its organization and (ii) the rights, qualifications, licenses, permits, franchises, governmental authorizations, intellectual property rights, licenses and permits material to the conduct of its business (including Health Care Permits), (b) maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit (i) the Permitted Reorganization or (ii) any merger, consolidation, liquidation or dissolution permitted under Section 6.03 and (c) carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted and reasonably related or incidental fields of enterprise thereto.

SECTION 5.04.  Payment of Obligations.  Each Loan Party will, and will cause each Orthofix Entity to, pay or discharge (a) all Material Indebtedness and (b) all other material liabilities and obligations, including Taxes, before the same shall become delinquent or in default, except, in the case of clause (b) where (i) the validity or amount thereof is being contested in good faith by appropriate proceedings, (ii) such Orthofix Entity has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (iii) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect; provided, however, that each Loan Party will, and will cause each Orthofix Entity to, remit withholding taxes and other payroll taxes to appropriate government taxing authorities as and when claimed to be due, notwithstanding the foregoing exceptions.

SECTION 5.05.  Maintenance of Properties.  Each Loan Party will, and will cause each Orthofix Entity to, keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear and casualty and condemnation events excepted.

SECTION 5.06.  Books and Records; Inspection Rights.  Each Loan Party will, and will cause each Orthofix Entity to, (a) keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities and (b) permit any representatives designated by the Administrative Agent (including employees of the Administrative Agent, or any consultants, accountants, lawyers, agents and appraisers retained by the Administrative Agent), upon reasonable prior notice, to visit and inspect its properties, conduct at the Orthofix Entities’ premises field examinations of the Orthofix Entity’s assets, liabilities, books and records, including examining and making extracts from its books and records, environmental assessment reports and Phase I or Phase II studies, 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, however, that (i) so long as no Default or Event of Default has occurred and is continuing, the Borrowers shall only be obligated to pay the expenses of the Administrative Agent in connection with one such visit, inspection and discussion per fiscal year and (ii) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice.  The Administrative Agent and the Lenders shall give the Company the opportunity to participate in any discussions with the Company’s independent public accountants; provided that the Administrative Agent and/or the Lenders shall give the Company not less than ten (10) Business Days’ notice prior to initiating discussions with the Company’s independent public accountants.  Notwithstanding the foregoing, no Orthofix Entity shall be required to disclose (a) any materials subject to a confidentiality obligation binding upon such Orthofix Entity to the extent such disclosure would violate such obligation or (b) any communications protected by attorney-client privilege the disclosure or inspection of which would waive such privilege.  The Loan Parties acknowledge that subject to Section 9.12, the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Orthofix Entities’ assets for internal use by the Administrative Agent and the Lenders.

SECTION 5.07.  Compliance with Laws and Material Contractual Obligations.  Each Loan Party will, and will cause each Orthofix Entity to, (a) comply in all material respects with each Requirement of Law applicable to it or its property (including without limitation Environmental Laws, Titles XVIII and XIX of the Social Security Act, Medicare Regulations, Medicaid Regulations, Health Care Laws and the Health Insurance Portability Act of 1996) and requirements of Third Party Payor Arrangements, (b) obtain and maintain all material licenses, permits, certifications and approvals of all applicable Governmental Authorities as are required for the conduct of its business as currently conducted and herein contemplated, including without limitation professional licenses, appropriate Health Care Permits (including, as applicable, Health Care Permits necessary for it to be eligible to receive payment and compensation from and to participate in any Third Party Payor Arrangements), Medicaid Certifications and Medicare Certifications, (c) perform in all material respects its obligations under material agreements to which it is a party, except, in each case, where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect and (d) keep 

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and maintain, in all material respects,  all records required to be maintained by any Governmental Authority or otherwise under, or in compliance with, any Health Care Law.  Specifically, but without limiting the foregoing, and except where any such failure to comply, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:  (x) billing policies, arrangements, protocols and instructions shall comply with reimbursement requirements under Medicare, Medicaid and other Medical Reimbursement Programs and Third Party Payor Arrangements and shall be administered by properly trained personnel; and (y) medical director compensation arrangements and other arrangements with referring physicians shall comply with applicable Health Care Laws.  Each Orthofix Entity will maintain in effect and enforce policies and procedures designed to ensure compliance by such Orthofix Entity and its respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.  Each Orthofix Entity shall maintain a corporate and health care regulatory compliance program (“RCP”) which addresses the requirements of Health Care Laws, including without limitation HIPAA, and includes at least the following components: (i) standards of conduct and procedures that describe compliance policies regarding laws with an emphasis on prevention of fraud and abuse; (ii) a specific officer within high-level personnel identified as having overall responsibility for compliance with such standards and procedures; (iii) training and education programs which effectively communicate the compliance standards and procedures to employees and agents, including fraud and abuse laws and illegal billing practices; (iv) auditing and monitoring systems and reasonable steps for achieving compliance with such standards and procedures including publicizing a reporting system to allow employees and other agents to anonymously report criminal or suspect conduct and potential compliance problems; (v) disciplinary guidelines and consistent enforcement of compliance policies including discipline of individuals responsible for the failure to detect violations of the RCP; and (vi) mechanisms to immediately respond to detected violations of the RCP. Each Orthofix Entity shall modify such RCPs from time to time, as may be reasonably necessary to ensure continuing compliance with all applicable Health Care Laws. Upon reasonable request, the Administrative Agent (and/or their consultants) shall be permitted to review such RCPs.

SECTION 5.08.  Use of Proceeds.

(a)  The proceeds of the Loans and the Letters of Credit will be used only for working capital and other general corporate purposes of the Borrowers (including Permitted Acquisitions and Restricted Payments permitted pursuant to Section 6.08).  No part of the proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.  Letters of Credit will be issued only to support transactions of the Loan Parties entered into in the ordinary course of business.

(b)  The Borrowers will not request any Borrowing or Letter of Credit, and no Borrower shall use, and each Borrower shall procure that each of its Subsidiaries and other Orthofix Entities and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or 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 any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or in a European Union member state, or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

SECTION 5.09.  Accuracy of Information.  The Loan Parties will ensure that any information, including financial statements or other documents (other than Projections, other forward looking information and information of a general economic nature), furnished to the Administrative Agent or the Lenders in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder (taken as a whole and as modified or supplemented by other information so  furnished) contains when furnished no material misstatement of fact or omits to state any material fact necessary to make the statements therein (taken as a whole), in the light of the circumstances under which they were made, not misleading; provided that, with respect to the Projections, the Loan Parties will cause the Projections to be prepared in good faith based upon assumptions believed to be reasonable at the time delivered (it being recognized by the Lenders that any projections as to future events are not to be viewed as facts or factual information and that actual results during the period or periods covered by any such Projections may differ from projected results, and such differences may be material).

SECTION 5.10.  Insurance.  Each Loan Party will, and will cause each Orthofix Entity to, maintain with financially sound and reputable carriers (a) insurance in such amounts and against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny, embezzlement, and other criminal activities; business interruption; and general liability) and such other hazards, as is customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations and (b) all insurance required pursuant to the Collateral Documents.  The Borrowers will furnish to the Lenders, upon request of the Administrative Agent, but no less frequently than annually, information in reasonable detail as to the insurance so maintained.

SECTION 5.11.  Appraisals.  At any time after the occurrence of and during the continuation of an Event of Default that the Administrative Agent requests, each Loan Party will, and will cause each Orthofix Entity to, provide the Administrative Agent with 

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appraisals or updates thereof of their assets as requested by the Administrative Agent, including, without limitation, Inventory, Equipment and Real Property, from an appraiser selected and engaged by the Administrative Agent, and prepared on a basis satisfactory to the Administrative Agent, such appraisals and updates to include, without limitation, information required by any applicable Requirement of Law; provided, however, that no more than one such appraisal per calendar year shall be at the sole expense of the Borrowers.

SECTION 5.12.  Casualty and Condemnation.  The Borrower Representative will

(a)  (i) furnish to the Administrative Agent and the Lenders prompt written notice of any casualty or other insured damage to any material portion of the Collateral or the commencement of any action or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding and (ii) will ensure that, if applicable, the Net Proceeds of any such event (whether in the form of insurance proceeds, condemnation awards or otherwise) are collected and applied in accordance with the applicable provisions of this Agreement and the Collateral Documents; and

(b)  furnish to the Administrative Agent and the Lenders prompt written notice of any casualty or other insured damage to any material portion of the tangible and intangible assets and properties of Subsidiaries (other than Immaterial Subsidiaries) not constituting Collateral, or the commencement of any action or proceeding for the taking of any material portion of such assets or interest therein under power of eminent domain or by condemnation or similar proceeding.

SECTION 5.13.  Additional Collateral; Further Assurances.

(a)  

(i)  Subject to applicable Requirements of Law, within 30 days (or such later period as the Administrative Agent may agree in its reasonable discretion) after the time that any Person becomes a Material Domestic Subsidiary of the Company as a result of the creation of such Subsidiary, the growth of such Subsidiary or a Permitted Acquisition or otherwise, each Loan Party will cause such Material Domestic Subsidiary (other than a Material Domestic Subsidiary of the Company that is not Wholly Owned) to become a Loan Party by executing a Joinder Agreement.  Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents, (ii) will grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property or assets of such Loan Party of the type which constitutes Collateral, in accordance with the requirements of the Collateral Documents, pursuant to joinder agreements to the applicable Collateral Documents in such form reasonably deemed appropriate by the Administrative Agent and (iii) shall execute and deliver to the Administrative Agent legal opinions (consistent in scope and substance as such legal opinions delivered on the Effective Date) and related documents as the Administrative Agent may reasonably request with respect to such property and assets.

(ii)  Subject to applicable Requirements of Law, within 30 days (or such later period as the Administrative Agent may agree in its reasonable discretion) after the time that any UK Subsidiary has tangible or intangible personal or real property with a fair market value in excess of $2,500,000 (other than the Equity Interests described on Schedule 3.15) as a result of the creation of such Subsidiary, the growth of such Subsidiary or a Permitted Acquisition or otherwise, each Loan Party will cause such UK Subsidiary (other than a UK Subsidiary that is not Wholly Owned) to become a Loan Party by executing a Joinder Agreement.  Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents, (ii) will grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property or assets of such Loan Party of the type which constitutes Collateral, in accordance with the requirements of the Collateral Documents, pursuant to joinder agreements to the applicable Collateral Documents in such form reasonably deemed appropriate by the Administrative Agent and (iii) shall execute and deliver to the Administrative Agent legal opinions (consistent in scope and substance as such legal opinions delivered on the Effective Date) and related documents as the Administrative Agent may reasonably request with respect to such property and assets.

(b)  Each Loan Party will cause (i) 100% of the issued and outstanding Equity Interests of (x) each of its Domestic Subsidiaries and (y) each Initial Subsidiary Guarantor that is a Foreign Subsidiary and (ii) 65% of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary (other than any Initial Subsidiary Guarantor that is a Foreign Subsidiary) directly owned by Loan Party to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent for the benefit of the Administrative Agent and the other Secured Parties, pursuant 

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to the terms and conditions of the Loan Documents or other Collateral Documents as the Administrative Agent shall reasonably request.

(c)  Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents, agreements and instruments, and will take or cause to be taken such further actions (including the filing and recording of financing statements, fixture filings and other documents and such other actions or deliveries of the type required by Section 4.01, as applicable), which may be required by any applicable Requirement of Law in the U.S., England or Wales or which the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all at the expense of the Loan Parties (unless such action is excluded by the other terms of this Agreement and/or any of the Collateral Documents, as applicable).

(d)  If any assets with a fair market value in excess of $2,500,000 are acquired by any Loan Party after the Effective Date (other than (x) assets constituting Collateral under any Collateral Document that become subject to the Lien under such Collateral Document upon acquisition thereof and (y) Excluded Assets), the Borrower Representative will (i) notify the Administrative Agent thereof, and, if reasonably requested by the Administrative Agent or the Required Lenders, cause such assets to be subjected to a Lien securing the Secured Obligations and (ii) take, and cause each applicable Loan Party to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (c) of this Section, all at the expense of the Loan Parties.

(e)  Notwithstanding anything to the contrary set forth herein or in any of the other Loan Documents, no Loan Party shall be required (i) to enter into any Collateral Document governed by the laws of a jurisdiction other than the U.S. and England and Wales, (ii) create any Lien in any jurisdiction other than the U.S., Curacao, and England and Wales or (iii) perfect any Lien in any jurisdiction other than the U.S., and England and Wales.

SECTION 5.14.  Environmental Covenant.  No Orthofix Entity shall use nor permit any third party to use, generate, manufacture, produce, store or Release on, under or about any Real Property, or transfer to or from any Real Property, any Hazardous Materials except in each case, as could not reasonably be expected to have a Material Adverse Effect, provided that if any third party, by act or omission, by intent or by accident, allows any foregoing action to occur, the Orthofix Entity shall promptly remedy such condition, at its sole expense and responsibility in accordance with Section 9.03(b)(iii).

SECTION 5.15.  Post-Closing Matters.  Each Loan Party will execute and deliver the documents and complete the tasks set forth on Schedule 5.15, in each case within the time limits specified therefor on such Schedule.

ARTICLE VI

Negative Covenants

Until the Payment in Full of all Obligations, each Loan Party executing this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lenders that:

SECTION 6.01.  Indebtedness.  No Loan Party will, nor will it permit any Orthofix Entity to, create, incur, assume or suffer to exist any Indebtedness or Disqualified Equity Interests, except:

(a)  the Secured Obligations;

(b)  (i) Indebtedness (other than Intercompany Loans) existing on the date hereof and set forth on Schedule 6.01, except Indebtedness incurred by Orthofix-Italy (which must be permitted to exist under clause (j) below), and (ii) Intercompany Loans set forth on Schedule 6.01(a);

(c)  unsecured Indebtedness among the Orthofix Entities, provided that (i) Indebtedness of any Non-Loan Party to a Loan Party shall be subject to (x) compliance with Section 6.04(d) and (y) a first and prior Lien to secure the Secured Obligations and evidenced by a duly completed and executed promissory note in form satisfactory to the Administrative Agent that has been delivered to the Administrative Agent together with an executed allonge thereto satisfactory to the Administrative Agent and (ii) Indebtedness of any Loan Party to any Non-Loan Party shall constitute Subordinated Indebtedness that in each case is fully subordinated to the prior payment in full of the Secured Obligations, permits no principal repayments until Payment in Full of all Obligations and permits interest payments only so long as there exists no Default or Event of Default;

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(d)  unsecured Guarantees by any Orthofix Entity of Indebtedness of any other Orthofix Entity, provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) no such Guarantee is permitted with respect to any Loan Party guaranteeing Indebtedness of a Non-Loan Party, unless such Guarantee is permitted by Section 6.04(d), and (iii) Guarantees permitted under this clause (d) shall be subordinated to the Secured Obligations on the same terms as the Indebtedness so Guaranteed is subordinated to the Secured Obligations;

(e)  (i) Indebtedness of any Orthofix Entity incurred to finance the acquisition, construction or improvement of any fixed or capital assets (whether or not constituting purchase money Indebtedness), including Capital Lease Obligations and (ii) any Indebtedness assumed in connection with a Permitted Acquisition secured by a Lien on any such assets prior to the consummation of such Permitted Acquisition but not incurred by such acquired Person in contemplation of or in connection with such Permitted Acquisition, and extensions, renewals, refinancings, and replacements of any such Indebtedness in accordance with clause (f) below; provided that (A) in the case of any Indebtedness described in clause (i) above, such Indebtedness is incurred prior to or within 180 days after such acquisition or the completion of such construction or improvement and (B) the aggregate principal amount of Indebtedness permitted by this clause (e) together with any Refinance Indebtedness in respect thereof permitted by clause (f) below, shall not exceed the Dollar Amount of $10,000,000 at any time outstanding for all Orthofix Entities;

(f)  Indebtedness which represents extensions, renewals, refinancing or replacements (such Indebtedness being so extended, renewed, refinanced or replaced being referred to herein as the “Refinance Indebtedness”) of any of the Indebtedness described in clauses (b), (e), (j), (k), (l) and (m) hereof (such Indebtedness being referred to herein as the “Original Indebtedness”); provided that (i) such Refinance Indebtedness does not increase the principal amount or substantially increase the interest rate of the Original Indebtedness plus the amount of any premiums and accrued and unpaid interest paid on such Original Indebtedness and reasonable fees and expenses associated with such Refinance Indebtedness, (ii) any Liens securing such Refinance Indebtedness are not extended to any additional property of any Orthofix Entity, (iii) no Orthofix Entity that is not originally obligated with respect to repayment of such Original Indebtedness is required to become obligated with respect to such Refinance Indebtedness, (iv) such Refinance Indebtedness does not result in a shortening of the average weighted maturity of such Original Indebtedness, (v) the terms of such Refinance Indebtedness other than fees and interest are not materially less favorable to the obligor thereunder than the original terms of such Original Indebtedness and (vi) if such Original Indebtedness was subordinated in right of payment to the Obligations or Secured Obligations, then the terms and conditions of such Refinance Indebtedness must include subordination terms and conditions that are at least as favorable to the Administrative Agent and the Lenders as those that were applicable to such Original Indebtedness;

(g)  Indebtedness owed to any Person providing workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in the ordinary course of business;

(h)  Indebtedness of any Orthofix Entity in respect of performance bonds, bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business;

(i)  unsecured Indebtedness constituting earnouts incurred in connection with the acquisition of eNeura, Inc., so long as no additional Orthofix Entities constitute obligors thereunder;

(j)  so long as there exists no Event of Default both before and after giving effect to the incurrence of such Indebtedness after the Effective Date, unsecured Indebtedness incurred by Orthofix‐Italy in Euros, up to an aggregate outstanding amount of €10,000,000 at any one time outstanding, and so long as such Indebtedness is not Guaranteed by any other Loan Party;

(k)  Indebtedness constituting Swap Agreement Obligations of the Orthofix Entities and other obligations under Swap Agreements, but only to the extent such agreement is entered into for non-speculative purposes; provided that, (i) no such Indebtedness owing pursuant to this clause (k) may be owed to a Non-Loan Party, (ii) any amounts owing to a Loan Party pursuant to this clause (k) shall be unsecured Intercompany Loans pledged to secure the Secured Obligations in accordance with the terms of clause (c) preceding and (iii) all such Indebtedness is unsecured unless such Swap Agreements are entered into with JPMorgan Chase Bank, a Lender or any Affiliate of JPMorgan Chase Bank or a Lender or Person that at the time such Swap Agreement was entered into was a Lender or an Affiliate of a Lender, and in each case constitute Secured Obligations;

(l)  so long as there exists no Event of Default both before and after giving effect to the incurrence of such Indebtedness, Indebtedness incurred by the Orthofix Entities up to an aggregate Dollar Amount of $10,000,000 outstanding at any one time, provided that Orthofix‐Italy may not incur Indebtedness under this clause (l);

(m)  so long as at the time such Indebtedness is incurred there exists no Event of Default both before and after giving effect to the incurrence of such Indebtedness, unsecured Indebtedness incurred by a Borrower so long (i) as such Indebtedness 

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is not guaranteed by any other Orthofix Entity and (ii) after giving pro forma effect to the incurrence of such Indebtedness and the repayment of any Indebtedness in connection therewith, the Borrowers are in compliance with Section 6.12; and

(n)  Indebtedness of the Orthofix Entities consisting of the financing of insurance premiums in the ordinary course of business up to an aggregate amount of all such Indebtedness for all Orthofix Entities outstanding at any one time not to exceed the Dollar Amount of $1,000,000.

SECTION 6.02.  Liens.  No Loan Party will, nor will it permit any Orthofix Entity to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including Accounts) or rights in respect of any thereof, except:

(a)  Liens created pursuant to any Loan Document;

(b)  Permitted Encumbrances;

(c)  any Lien on any property or asset of any Orthofix Entity existing on the date hereof and set forth on Schedule 6.02 securing Indebtedness permitted by Section 6.01 as described on Schedule 6.02 (and renewals and extensions of such Indebtedness permitted by Section 6.01); provided that (i) such Lien shall not apply to any other property or asset of such Orthofix Entity or any other Orthofix Entity and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

(d)  Liens on fixed or capital assets acquired, constructed or improved by any Orthofix Entity; provided that (i) such Liens secure Indebtedness permitted by clause (e) or, without duplication, clause (f) of Section 6.01, (ii) in the case of Indebtedness permitted by clause (e)(i) of Section 6.01, such Liens and the Indebtedness secured thereby are incurred prior to or within 180 days after such acquisition or the completion of such construction or improvement and (iii) such Liens shall not apply to any other property or assets of any Orthofix Entity;

(e)  Liens (i) arising solely by virtue of any contractual, statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and (ii) of a collecting bank arising in the ordinary course of business under Section 4-208 or 4-210 of the UCC (or equivalent in a foreign jurisdiction) in effect in the relevant jurisdiction covering only the items being collected upon;

(f)  Liens granted by a Non-Loan Party in favor of a Loan Party in respect of Indebtedness owed by such Non-Loan Party;

(g)  Liens on the assets and properties that are not Collateral of (i) the U.S. Loan Parties to secure Indebtedness permitted under Section 6.01(l) up to an aggregate amount of all such Indebtedness secured by such assets and properties not to exceed the Dollar Amount of $5,000,000 at any time outstanding and (ii) the UK Subsidiaries of the Company (including the UK Borrower), the Company and the Non-Loan Parties to secure Indebtedness permitted under Section 6.01(l) up to an aggregate amount of all such Indebtedness secured by such assets and properties not to exceed the Dollar Amount of $10,000,000 at any time outstanding;

(h)  Liens of the Orthofix Entities on insurance policies and the proceeds thereof securing any financing of the premiums with respect thereto permitted under the terms of this Agreement;

(i)  precautionary UCC filings (or equivalent filings or registrations in foreign jurisdictions) by lessors under operating leases covering solely the property subject to such leases;

(j)  (i) earnest money deposits in respect of any Permitted Acquisition and (ii) deposits to secure indemnification obligations relating to any disposition or Investment permitted by this Agreement;

(k)  Liens of sellers of goods to the any Orthofix Entity arising under Article 2 of the UCC (or equivalent in foreign jurisdictions) in the ordinary course of business, covering only the goods sold and securing only the unpaid purchase price for such goods and related expenses;

(l)  any interest or title of a lessor or licensor under any lease or license entered into by an Orthofix Entity in the ordinary course of its business and covering only the assets so leased or licensed;

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(m)  Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business of the Orthofix Entities; and

(n)  other Liens on the assets and properties that are not Collateral in an aggregate amount not to exceed the Dollar Amount of $500,000 at any time outstanding.

Notwithstanding the foregoing provision or any other provision in this Agreement or in any Loan Document to the contrary, none of the Equity Interests of the Subsidiaries of the Company shall be subject to any Lien at any time except for Liens described in clause (a) of the definition of Permitted Encumbrances.

SECTION 6.03.  Fundamental Changes.

(a)  Except in connection with the Permitted Reorganization, no Loan Party will, nor will it permit any Orthofix Entity to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing,

(i)  any Domestic Subsidiary of the Company may merge into the U.S. Borrower in a transaction in which the U.S. Borrower is the surviving entity,

(ii)  any Domestic Subsidiary of the Company (other than the U.S. Borrower) may merge into a Domestic Subsidiary of the Company that is a Loan Party in a transaction in which such Loan Party is the surviving entity or the resulting merged Person is a Loan Party,

(iii)  any Domestic Non-Loan Party may merge into another Domestic Non-Loan Party,

(iv)  any Subsidiary of the Company organized in the UK may merge into the UK Borrower in a transaction in which the UK Borrower is the surviving entity,

(v)  any UK Subsidiary of the Company (other than the UK Borrower) may merge into any UK Subsidiary of the Company that is a Loan Party in a transaction in which such Loan Party is the surviving entity or the resulting merged Person is a Loan Party,

(vi)  any Foreign Subsidiary of the Company (other than a Borrower) may merge into an Orthofix Entity organized in the same foreign jurisdiction as such Foreign Subsidiary, but only so long as a Loan Party is the surviving entity if either such Foreign Subsidiary is a Loan Party,

(vii)  any Orthofix Entity (other than the Borrowers) may merge with any Person in connection with a Permitted Acquisition or other investment permitted by Section 6.04, but only so long as a Loan Party is the surviving entity if any party to such merger is a Loan Party;

(viii)  any Non-Loan Party may liquidate or dissolve if the Borrowers determine in good faith that such liquidation or dissolution is in the best interests of the Borrowers and is not materially disadvantageous to the Lenders and

(ix)  

(A)  any Domestic Subsidiary of the Company (other than the U.S. Borrower) that has no assets, or that has sold, disposed of or otherwise transferred all of its assets to a U.S. Loan Party may liquidate or dissolve, or

(B)  any UK Subsidiary of the Company (other than the UK Borrower) that is a Loan Party that has no assets or that has sold, disposed of or otherwise transferred all of its assets to a Loan Party may liquidate or dissolve; provided that, notwithstanding the foregoing, no such liquidation or dissolution shall be permitted unless the Administrative Agent shall continue to have, or shall have concurrently therewith received, a first priority, perfected security interest in 100% of the Equity Interests of the U.S. Borrower after giving effect to such liquidation or dissolution, on terms and documentation satisfactory to the Administrative Agent, including, without limitation, if requested by the Administrative Agent, opinions of counsel.

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Notwithstanding the foregoing, in each case of clauses (a)(i) through (a)(ix) above, if any such transaction involves a Borrower or an Initial Subsidiary Guarantor, such transaction shall only be permitted if the resulting Orthofix Entity or Orthofix Entities are all owned 100% directly or indirectly by the Company.

(b)  No Loan Party will, nor will it permit any Orthofix Entity to, engage in any business other than businesses of the type conducted by the Orthofix Entities on the date hereof and businesses reasonably related, ancillary or incidental thereto.

(c)  Except in connection with the Permitted Reorganization and with respect to Orthofix Limited only, the Permitted Operations, no Loan Party will permit any Intermediate Level Company to (A) engage in any business or activity other than the ownership of all of the outstanding Equity Interests of such Intermediate Level Company’s direct Subsidiaries, the making or borrowing of Intercompany Loans and in each case, activities incidental thereto, (B) own or acquire any assets (other than Equity Interests of such Intermediate Level Company’s Subsidiaries, Intercompany Loans permitted hereunder, Compliant Dividends in accordance with the definition thereof and permitted to be paid under Section 6.08(c), and the cash necessary to maintain its existence) or (C) incur any liabilities (other than liabilities under the Loan Documents, Intercompany Loans permitted hereunder, nonconsensual obligations imposed by operation of law and liabilities reasonably incurred in connection with its maintenance of its existence).

(d)  Except as permitted in connection with the Permitted Reorganization, no Loan Party will, nor will it permit any Orthofix Entity to, create, form, acquire or suffer to exist, any Domestic Subsidiaries or UK Subsidiaries, except for

(i)  Domestic Subsidiaries or UK Subsidiaries of the Borrowers which are Wholly Owned directly or indirectly by the Company and joined as Loan Parties in accordance with the terms hereof,

(ii)  Domestic Subsidiaries or UK Subsidiaries of the Borrowers which are Wholly Owned and Immaterial Subsidiaries, and which are Non-Loan Parties only so long as they remain Immaterial Subsidiaries, and

(iii)  Domestic Subsidiaries or UK Subsidiaries of the Borrowers which are not Wholly Owned and permitted to be formed, created or acquired in accordance with the terms of Section 6.04, and which are Non-Loan Parties so long as they remain non-Wholly Owned by the Company.

(e)  No Loan Party will, nor will it permit any Orthofix Entity to sell, transfer, pledge or otherwise dispose of any Equity Interests in any of the Borrowers or any of the Initial Subsidiary Guarantors.

(f)  No Loan Party will, nor will it permit any Orthofix Entity to, change its fiscal year or any fiscal quarter from the basis in effect on the Effective Date without the consent of the Administrative Agent (which consent shall not be unreasonably withheld).

(g)  No Loan Party will, nor will it permit any Orthofix Entity to, change the tax filing elections it has made under the Code.

SECTION 6.04.  Investments, Loans, Advances, Guarantees and Acquisitions.  No Loan Party will, nor will it permit any Orthofix Entity to, form any subsidiary after the Effective Date, or purchase, hold or acquire (including pursuant to any merger) any Equity Interests, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person, or consummate an Acquisition (collectively, “Investments”), except:

(a)  cash and Permitted Investments, but only to the extent that such cash and Permitted Investments of the Loan Parties, except Excluded Deposit Accounts, are subject to control agreements in favor of the Administrative Agent for the benefit of the Secured Parties or otherwise subject to a perfected security interest in favor of the Administrative Agent for the benefit of the Secured Parties;

(b)  Investments in existence on the date hereof and described on Schedule 6.04;

(c)  Investments by the Orthofix Entities in Equity Interests in their respective Subsidiaries, provided that (i)  any such Equity Interests held by a Loan Party shall be pledged pursuant to the Security Agreement (subject to the limitations applicable to Equity Interests of a Foreign Subsidiary referred to in Section 5.13), and (ii) Investments made by Loan Parties in Non-Loan Parties may only be made under this clause (c) to the extent of remaining Non-Loan Party Available Funds on the date of such Investment (in each case determined without regard to any write-downs or write-offs);

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(d)  loans or advances among the Orthofix Entities, provided that (i)  any such loans and advances owing to a Loan Party shall be evidenced by a promissory note in form satisfactory to the Administrative Agent pledged pursuant to the Security Agreement and such note and a duly completed and executed allonge thereto in form satisfactory to the Administrative Agent shall be delivered to the Administrative Agent promptly after execution thereof and (ii) loans and advances made by Loan Parties to Non-Loan Parties may only be made under this clause (d) to the extent of remaining Non-Loan Party Available Funds on the date of such loan or advance (in each case determined without regard to any write-downs or write-offs);

(e)  Guarantees constituting Indebtedness permitted by Section 6.01, provided that Guarantees by Loan Parties of Indebtedness of Non-Loan Parties may only be made under this clause (e) to the extent of remaining Non-Loan Party Available Funds on the date of such Guarantee (in each case determined without regard to any write-downs or write-offs);

(f)  loans or advances made by an Orthofix Entity to its employees in the ordinary course of business for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of the Dollar Amount of $1,000,000 in the aggregate at any one time outstanding for all Orthofix Entities;

(g)  notes payable, or stock or other securities issued by Account Debtors to an Orthofix Entity pursuant to (i) negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course of business or (ii) any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such Account Debtors;

(h)  Investments in the form of Swap Agreements permitted by Section 6.07;

(i)  Investments constituting deposits described in any of clauses (c) and (d) of the definition of the term “Permitted Encumbrances” and Section 6.02(j);

(j)  Investments received in connection with the disposition of assets permitted by Section 6.05;

(k)  Permitted Acquisitions and Investments held by a Person acquired in a Permitted Acquisition to the extent that such Investment was not made in contemplation of such Permitted Acquisition;

(l)  Investments relating to the licensing, commercialization, development, marketing and distribution of orthopedic products (including Investments in joint ventures entered into in connection with the licensing, commercialization, development, marketing and distribution of orthopedic products) to the extent capitalized, in an aggregate amount for the Orthofix Entities not to exceed $7,500,000 in any fiscal year of the Company;

(m)  other Investments (together with the amounts paid pursuant to clause (j) of the definition of Permitted Acquisition) not to exceed the Dollar Amount of $15,000,000 in the aggregate over the term of this Agreement;

(n)  (i) bank deposits in the ordinary course of business, (ii) accounts receivables owing if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary terms, (iii) endorsement of negotiable instruments held for collection in the ordinary course of business and (iv) lease, utility and other similar deposits in the ordinary course of business;

(o)  Investments by any Orthofix Entity to the extent such Investments constitute Capital Expenditures in such Orthofix Entity;

(p)  to the extent constituting Investments, contingent obligations (i) arising with respect to customary indemnification obligations in connection with Permitted Acquisitions or other Investments permitted by this Section 6.04 or in favor of purchasers in connection with dispositions permitted under Section 6.05, (ii) in respect of obligations to make Restricted Payments that are permitted to be made under the terms of Section 6.08;

(q)  Investments not constituting loans or advances (i) among U.S. Loan Parties, (ii) by any Foreign Subsidiary in any U.S. Loan Party, and (iii) by any Non-Loan Party that is not a Subsidiary of the Borrowers in any other Non-Loan Party; and

(r)  Investments as a result of the Permitted Reorganization.

The amount of any Investment outstanding as of any time shall be the Dollar Amount of the original cost of such Investment (which, in the case of any Investment constituting the contribution of asset or property, shall be based on the Borrower Representative’s good faith estimate of the fair market value of such asset or property at the time such Investment is made) without any adjustments for 

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increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment less the fair market value (as determined by the Borrower in good faith) of all amounts received by or cash returned in respect thereof, as disclosed to the Administrative Agent in the quarterly Compliance Certificate.

SECTION 6.05.  Asset Sales.  No Loan Party will, nor will it permit any Orthofix Entity to, sell, transfer, lease or otherwise dispose of any asset, including any Equity Interest owned by it, nor will any Company and the Borrowers permit any Subsidiary of the Company to issue any additional Equity Interest in such Subsidiary (other than to another Borrower or another Subsidiary of the Company in compliance with Section 6.04), except:

(a)  sales, transfers and dispositions of (i) Inventory in the ordinary course of business, (ii) used, obsolete, worn out or surplus Equipment or property in the ordinary course of business and (iii) cash and cash equivalents in connection with a transaction permitted by the terms of this Agreement;

(b)  sales, transfers and dispositions of assets (i) among Loan Parties only, provided that such sales, transfers or dispositions among Loan Parties are permitted only so long as either (A) the transferee Loan Party is in the same country as the transferor Loan Party or (B) the transferee is a U.S. Loan Party, (ii) among Non-Loan Parties only and (iii) among the Orthofix Entities where either (x) the transferor is a Loan Party and the transferee is a Non-Loan Party or (y) the transferor is a U.S. Loan Party and the transferee is a Loan Party that is a Foreign Subsidiary, provided that in each case under this clause (iii), the aggregate book value of such assets sold or transferred on the date of such sale or transfer (in each case determined without regard to any write-downs or write-offs) shall not exceed the Non-Loan Party Available Funds on such date;

(c)  sales, transfers and dispositions of Accounts (excluding sales or dispositions in a factoring arrangement) in connection with the compromise, settlement or collection thereof;

(d)  sales, transfers and dispositions of Permitted Investments;

(e)  dispositions resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Orthofix Entity;

(f)  so long as there exists no Default at the time of any such sale, lease, transfer or disposition, sales, leases, transfers and other dispositions of assets (other than (x) Equity Interests in any of the Borrowers and the Initial Subsidiary Guarantors and (y) Equity Interests in any other Subsidiary unless, in the case of sales under this clause (y), all Equity Interests in such Subsidiary are sold) that are not permitted by any other clause of this Section, provided that (i) the aggregate fair market value of all assets sold, transferred or otherwise disposed of in reliance upon this clause (f) shall not exceed the Dollar Amount of (A) $40,000,000 during any fiscal year of the Company and (B) $60,000,000 in the aggregate over the term of this Agreement and (ii) all sales, transfers, leases and other dispositions permitted under this clause (f) shall be made for fair value and at least 70% cash consideration;

(g)  sales, leases, transfers and other dispositions of assets in connection with the Permitted Reorganization;

(h)  the termination of Swap Agreements permitted by Section 6.07;

(i)  transactions permitted under Section 6.03(a), transactions constituting Restricted Payments made pursuant to and in accordance with the provisions of Section 6.08, and transactions constituting Investments permitted under Section 6.04;

(j)  the factoring or disposition of receivables by Orthofix-Italy in the ordinary course of business;

(k)  non-exclusive licenses, sublicenses, leases or subleases granted to third parties in the ordinary course of business not interfering with the business of the Orthofix Entities;

(l)  forgiveness or discounting, on a non-recourse basis and in the ordinary course of business, of past due accounts in connection with the collection or compromise thereof or the settlement of delinquent accounts or in connection with the bankruptcy or reorganization of suppliers or customers;

(m)  the abandonment of intellectual property rights which, in the reasonable good faith determination of the Borrower Representative, are no longer used or useful to the business of any Orthofix Entity; and

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(n)  sales or disposals of Equity Interests of any Foreign Subsidiary that is not a Borrower or an Initial Subsidiary Guarantor in order to qualify a member of the board of directors (or equivalent governing body) of such Person if and to the extent required by applicable law.

SECTION 6.06.  Sale and Leaseback Transactions.  No Loan Party will, nor will it permit any Orthofix Entity to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property.

SECTION 6.07.  Swap Agreements.  No Loan Party will, nor will it permit any Orthofix Entity to, enter into any Swap Agreement, except Swap Agreements entered into to hedge or mitigate risks to which any Orthofix Entity has actual exposure (other than those in respect of Equity Interests of any Orthofix Entity), and for non-speculative purposes, and only so long as (a) all such agreements are unsecured unless such Swap Agreement is entered into with JPMorgan Chase Bank, a Lender or an Affiliate of JPMorgan Chase Bank or a Lender and constitute Secured Obligations, (b) no Indebtedness under any Swap Agreement may be owed to a Non-Loan Party other than an Intermediate Level Company, and (c) any amounts owing to a Loan Party pursuant to this Section 6.07 shall be unsecured Intercompany Loans pledged to secure the Secured Obligations in accordance with the terms of Section 6.01(c).

SECTION 6.08.  Restricted Payments; Certain Payments of Indebtedness.  No Loan Party will, nor will it permit any Orthofix Entity to, declare or make, or agree to declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except:

(a)  the Company may declare and pay dividends with respect to its common stock payable solely in additional shares of its common stock;

(b)  the Subsidiaries of the Borrowers may declare and make any Restricted Payments described in clauses (i) and (ii) of the definition of Restricted Payments ratably to their direct holders of their Equity Interests;

(c)  so long as there exists no Default at the time of each such Compliant Dividend and immediately after giving effect thereto, the Subsidiaries of the Company may declare and pay Compliant Dividends ratably to their direct holders of their Equity Interests;

(d)   so long as (A) there exists no Default at the time of each Restricted Payment and immediately after giving effect thereto, and (B) after giving pro forma effect to the payment of any such Restricted Payment, (i) the Total Leverage Ratio shall not be more than 2.00 to 1.00, the Company may make any Restricted Payment and (ii) the Total Leverage Ratio shall not be more than 2.50 to 1.00, any Orthofix Entity may pay any earnout permitted by Section 6.01(i);

(e)  Restricted Payments in connection with the Permitted Reorganization;

(f)  payment of regularly scheduled interest and principal payments as and when due in respect of any Subordinated Indebtedness, other than (i) payments in respect of the Subordinated Indebtedness prohibited by the subordination provisions thereof, (ii) principal and interest payments on Subordinated Indebtedness owed to Persons that are not Orthofix Entities after the occurrence and during the continuance of an Event of Default and (iii) after the occurrence and during the continuance of an Event of Default, payments in respect of Intercompany Loans owed by (x) any one or more Loan Parties to any Non-Loan Party and (y) any Orthofix Entity to any non-Wholly Owned Orthofix Entity;

(g)  any Loan Party may make Restricted Payments to a Non-Loan Party to the extent that there are remaining Non-Loan Party Available Funds on the date such Restricted Payment is made;

(h)  any Loan Party may make any Restricted Payment constituting a payment on Intercompany Loans to any other Loan Party;

(i)  any Non-Loan Party may make a Restricted Payment to another Non-Loan Party or a Loan Party; and

(j)  the Company may (i)  issue Equity Interests in the Company, (ii) purchase Equity Interests in the Company from present or former officers or employees of any Orthofix entity upon the death, disability or termination of employment of such officer or employee, provided that no Default or Event of Default then exists or would result therefrom and the aggregate amount of payments made under this clause (j)(ii) shall not exceed $1,000,000 during any fiscal year of the Company.

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SECTION 6.09.  Transactions with Affiliates.  No Loan Party will, nor will it permit any Orthofix Entity to sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates or any Non-Loan Parties, except (a) transactions that are at prices and on terms and conditions not less favorable to such Orthofix Entity or Loan Party, respectively, than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Loan Parties not involving any other Non-Loan Party or other Affiliate, (c) as otherwise specifically permitted by this Agreement, (d) any issuances by the Company of Equity Interests, awards or grants of equity securities, stock options and stock ownership plans approved by the Company’s board of directors, (e) transactions not involving an agreement amount in excess of $1,000,000 in the aggregate for all such transactions outstanding at any time and (f) the payment of reasonable fees to directors of any Orthofix Entity who are not employees of such Orthofix Entity, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Orthofix Entities in the ordinary course of business.

SECTION 6.10.  Restrictive Agreements.  No Loan Party will, nor will it permit any Orthofix Entity directly or indirectly to enter into, incur or permit to exist any agreement or other consensual arrangement that prohibits, restricts or imposes any condition upon (a) the ability of such Orthofix Entity to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary of the Company to pay dividends or other distributions with respect to any Equity Interests or to make or repay loans or advances to any Borrower or any other Orthofix Entity or to Guarantee Indebtedness of any other Orthofix Entity; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by any Requirement of Law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), or at the time any Subsidiary becomes a Subsidiary of the Company, so long as such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary of the Company, (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of any property pending such sale, provided such restrictions and conditions apply only to such property that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in leases, licenses and contracts restricting the assignment thereof, (vi) clause (a) of the foregoing shall not apply with respect to software and other intellectual property licenses pursuant to which an Orthofix Entity is the licensee of the relevant software or intellectual property, as the case may be (in which case, any such prohibition or limitation shall relate only to the assets subject to the applicable licenses), (vii) clause (b) of the foregoing shall not apply to agreements relating to Indebtedness of any Non-Loan Party permitted to be incurred hereunder by such Non-Loan Party (in which case any such prohibit or limitation shall relate only to such Non-Loan Party) and (viii) clauses (a) and (b) of the foregoing shall not apply with respect to provisions contained in joint venture agreements or similar agreements entered into in the ordinary course of business and permitted by the terms of this Agreement, so long as in each case such provisions are applicable only to such joint venture, its assets and any equity interests therein.

SECTION 6.11.  Amendment of Material Documents.  Except in connection with the Permitted Reorganization, no Loan Party will, nor will it permit any Orthofix Entity to, amend, modify or waive any of its rights under (a) (i) any agreement relating to any Subordinated Indebtedness or (ii) any Intercompany Loan, in each case, without the consent of the Administrative Agent to the extent any such amendment, modification or waiver would be adverse to the Lenders or (b) its charter, articles or certificate of organization or incorporation and bylaws or operating, management or partnership agreement, or other organizational or governing documents, without the consent of the Required Lenders, to the extent any such amendment, modification or waiver would be adverse to the Lenders in any material respect.

SECTION 6.12.  Financial Covenants.

(a)  Interest Coverage Ratio.  The Company and the other Loan Parties will not permit the Interest Coverage Ratio, for any period of four consecutive fiscal quarters, to be less than 3.00:1.00 as of the last day of such four fiscal quarter period.

(b)  Total Leverage Ratio.  The Company and the other Loan Parties will not permit the Total Leverage Ratio, on the last day of any fiscal quarter, to be greater than 3.00:1.00.

SECTION 6.13.  Accounts.  Set forth on Schedule 6.13 is a complete and accurate list of all checking, savings or other accounts (including securities accounts) of the Orthofix Entities at any bank or other financial institution, or any other account where money is or may be deposited or maintained with any Person (other than Excluded Deposit Accounts) as of the Effective Date.  At any time on or after the Effective Date, no Loan Party will, nor will it permit any of the (a) Subsidiaries of the Company organized in the U.S. or (b) any UK Subsidiaries, to, open, maintain or otherwise have any checking, savings or other accounts (including securities accounts) at any bank or other financial institution, or any other account where money is or may be deposited or maintained with any Person, other than (i) deposit accounts that are subject to a Deposit Account Control Agreement (as such term is defined in the Security Agreement), (ii) securities accounts that are subject to a Securities Account Control Agreement (as such term is defined in the 

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Security Agreement), (iii) Excluded Deposit Accounts, (iv) cash collateral accounts required by the terms of this Agreement and the other Loan Documents and (v) other deposit accounts, so long as at any time the balance in any such account does not exceed the Dollar Amount of $500,000 and the aggregate balance in all such accounts does not exceed the Dollar Amount of $1,500,000.

SECTION 6.14.  Domestic Subsidiaries.  No Loan Party will, nor will it permit any Orthofix Entity to (i) form or acquire any Domestic Subsidiary that is not also made a direct or indirect Subsidiary of the U.S. Borrower or the UK Borrower or (ii) acquire material assets located in the United States in a Permitted Acquisition other than assets that will be held by a Loan Party other than the Company.

ARTICLE VII

Events of Default

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

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

(b)  the Borrowers shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

(c)  any representation, warranty or certification made or deemed made by or on behalf of any Orthofix Entity in, or in connection with, this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have been incorrect when made or deemed made, provided that (i) if such representation, warranty or certification by its terms is made only as of a specified date it shall prove to be incorrect on such specified date, and (ii) if such representation, warranty or certification is not subject to any materiality qualifier, then such representation, warranty or certification shall prove to have been materially incorrect when made or deemed made;

(d)  any Orthofix Entity shall fail to observe or perform any covenant, condition or agreement contained in Sections 5.02(a), 5.03 (with respect to a Loan Party’s existence and except as provided for in connection with the Permitted Reorganization), 5.08, 5.15 or in Article VI;

(e)  any Orthofix Entity shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clause (a), (b) or (d)), and if such breach or failure to comply is capable of cure, such failure shall continue unremedied for a period of (i) 10 days after the earlier of (x) any Responsible Officer’s knowledge of such breach or failure to comply and (y) notice thereof from the Administrative Agent (which notice will be given at the request of any Lender) if such breach relates to terms or provisions of Section 5.01, 5.02 (other than Section 5.02(a)), 5.03(a)(i), 5.03(b), 5.04, 5.06, 5.07, 5.10, 5.11 or 5.13 of this Agreement or (ii) 30 days after the earlier of (x) any Responsible Officer’s knowledge of such breach or failure to comply and (y) notice thereof from the Administrative Agent (which notice will be given at the request of any Lender) if such breach relates to terms or provisions of any other Section of this Agreement or of any other Loan Document;

(f)  any Orthofix Entity shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness (other than subordinated Intercompany Loans owed by any Loan Party), 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 secured Indebtedness that becomes due as a result of customary non-default mandatory prepayment events, such as asset dispositions, casualty and condemnation events, or issuances of debt or equity, if such transaction is permitted hereunder and under the documents providing for such Indebtedness;

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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 an Orthofix Entity or its debts, or of a substantial part of its assets, under any Debtor Relief Law or federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Orthofix Entity or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed or unstayed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

(i)  any Orthofix Entity shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law or 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 such Orthofix Entity or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

(j)  any Orthofix Entity shall become generally unable, admit in writing its inability, or publicly declare its intention not to, 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 the Dollar Amount of $1,000,000 shall be rendered against any Orthofix Entity or any combination of Orthofix Entities and the same shall remain undischarged for a period of sixty (60) consecutive days during which execution shall not be bonded or effectively stayed, or any writ or warrant of attachment or execution or similar process is issued or levied against any material portion of the assets of any Orthofix Entity to enforce any such judgment and is not released, vacated or fully bonded within thirty (30) days after its issue or levy or any Orthofix Entity shall fail within sixty (60) days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal and being appropriately contested in good faith by proper proceedings diligently pursued;

(l)  (i) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Orthofix Entities in an aggregate amount exceeding $2,500,000 and/or (ii) any Orthofix Entity shall have been notified that any of them has, in relation to a Foreign Pension Plan, incurred a debt or other liability under section 75 or 75A of the United Kingdom Pensions Act 1995, or has been issued with a contribution notice or financial support direction (as those terms are defined in the United Kingdom Pensions Act 2004), or otherwise is liable to pay an amount which, when aggregated with all other amounts required to be paid to Foreign Pension Plans by the Orthofix Entities, exceeds the Dollar Amount of $2,500,000;

(m)  a Change in Control shall occur;

(n)  the Loan Guaranty or any Obligation Guaranty shall fail to remain in full force or effect other than as permitted pursuant to Section 9.02, or any action shall be taken to discontinue or to assert the invalidity or unenforceability of the Loan Guaranty or any Obligation Guaranty, or any Loan Guarantor shall fail to comply with any of the terms or provisions of the Loan Guaranty or any Obligation Guaranty to which it is a party, or any Loan Guarantor shall deny that it has any further liability under the Loan Guaranty or any Obligation Guaranty to which it is a party, or any Orthofix Entity or Affiliate of any Orthofix Entity shall make that assertion, or such Loan Guarantor, Orthofix Entity or Affiliate shall give notice to such effect, including, but not limited to notice of termination delivered pursuant to Section 10.08 or any notice of termination delivered pursuant to the terms of any Obligation Guaranty;

(o)  (i) except as permitted by the terms of any Loan Document, (x) any Collateral Document shall for any reason fail to create a valid security interest in any material portion of the Collateral purported to be covered thereby, or (y) any Lien attached to any material portion of the Collateral securing any Secured Obligation shall cease to be a perfected, first priority Lien except as permitted by Section 6.02, or (ii) any Lien purported to be created under any Collateral Document shall be asserted by any Orthofix Entity or any of their Affiliates not to be, a valid and perfected Lien on any material Collateral, with a priority required hereby,

(p)  any Collateral Document other than as permitted hereunder shall fail to remain in full force or effect or any action shall be taken to discontinue or to assert the invalidity or unenforceability of any Collateral Document;

(q)  any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (or any Orthofix Entity or any of their Affiliates shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction that evidences its assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms);

Credit Agreement (Orthofix), Page 79

 

(r)  (i) any Orthofix Entity loses its CMS Certification Number, National Provider Identifier or other authorizations required to bill Medicaid, Medicare or any other Third Party Payor or shall be temporarily or permanently excluded from, or have payments suspended under (A) any Medicaid Provider Agreement, Medicaid Certification, Medicare Provider Agreement or Medicare Certification or (B) any Medical Reimbursement Program or (C) any other Third Party Payor Arrangement, which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or (ii) any Health Care Permit of any one or more Orthofix Entities shall be revoked suspended or otherwise terminated or fail to be renewed which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;

(s)  any Orthofix Entity is criminally indicted or convicted under any law (excluding misdemeanors) that may reasonably be expected to lead to a forfeiture of any property of  such Orthofix Entity having a fair market value in excess of the Dollar Amount of $1,000,000; or

(t)  (i) the subordination provisions of any Subordinated Indebtedness (the “Subordination Provisions”) of any of the Intercompany Loans owing by any Loan Party or any other Subordinated Indebtedness constituting Material Indebtedness of any Orthofix Entity shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any Orthofix Entity party thereto or any other holder of such Subordinated Indebtedness, or (ii) any Orthofix Entity or any other holder of such Subordinated Indebtedness shall, directly or indirectly, disavow or contest in any manner the effectiveness, validity or enforceability of any of the Subordination Provisions;

then, and in every such event (other than an event with respect to an Orthofix Entity described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower Representative, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, whereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, but ratably as among the Classes of Loans and the Loans of each Class at the time outstanding, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon 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, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers; and in the case of any event with respect to an Orthofix Entity 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, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers.  Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, increase the rate of interest applicable to the Loans and other Obligations as set forth in this Agreement and exercise any rights and remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC.

ARTICLE VIII

The Administrative Agent

SECTION 8.01.  Appointment.

(a)  Each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf, including execution of the other Loan Documents, and to exercise such powers as are delegated to the Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto. In addition, to the extent required under the laws of any jurisdiction other than the U.S., each of the Lenders and the Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute any Collateral Document governed by the laws of such jurisdiction on such Lender’s or Issuing Bank’s behalf.  The provisions of this Article (other than Section 8.06) are solely for the benefit of the Administrative Agent and the Lenders (including the Swingline Lender and the Issuing Bank), and the Loan Parties and other Orthofix Entities shall not have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” as used herein or in any other Loan Documents (or any similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

(b)  The Administrative Agent in its capacity as such shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders (including in its capacities as a potential provider of Banking Services or Swap Agreements) and each Issuing Bank hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and such 

Credit Agreement (Orthofix), Page 80

 

Issuing Bank for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties or any other Person to secure any of the Secured Obligations, together with such powers and discretion as are reasonably incidental thereto.  In this connection, the Administrative Agent, as “collateral agent” and any co agents, sub agents and attorneys in fact appointed by the Administrative Agent pursuant to Section 8.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits of all provisions of this Article VII and Article IX (including Section 9.03(c), as though such co agents, sub agents and attorneys in fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.

SECTION 8.02.  Rights as a Lender.  The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Orthofix Entity or any Affiliate thereof as if it were not the Administrative Agent hereunder.

SECTION 8.03.  Duties and Obligations.  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 as directed 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 9.02), and, (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Orthofix Entity that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct as determined by a final nonappealable judgment of a court of competent jurisdiction.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower Representative or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or in connection with any Loan Document, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the creation, perfection or priority of Liens on the Collateral or the existence of the Collateral, or (vi) 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.

SECTION 8.04.  Reliance.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrowers), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

SECTION 8.05.  Actions through Sub-Agents.  The Administrative Agent may perform any and all of 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 of 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 credit facilities provided for herein as well as activities as the Administrative Agent.

SECTION 8.06.  Resignation.  Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower Representative.  Upon any such resignation, the Required Lenders shall have the right subject to the consent of the Borrowers (except during the existence of an Event of Default), which such consent shall not be unreasonably withheld or delayed, to appoint a successor.  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by its 

Credit Agreement (Orthofix), Page 81

 

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 and under the other Loan Documents.  The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor, unless otherwise agreed by the Borrowers and such successor.  Notwithstanding the foregoing, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of the effectiveness of its resignation to the Lenders, the Issuing Banks and the Borrowers, whereupon, on the date of effectiveness of such resignation stated in such notice, (a) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents, provided that, solely for purposes of maintaining any security interest granted to the Administrative Agent under any Collateral Document for the benefit of the Secured Parties, the retiring Administrative Agent shall continue to be vested with such security interest as collateral agent for the benefit of the Secured Parties and, in the case of any Collateral in the possession of the Administrative Agent, shall continue to hold such Collateral, in each case until such time as a successor Administrative Agent is appointed and accepts such appointment in accordance with this paragraph (it being understood and agreed that the retiring Administrative Agent shall have no duly or obligation to take any further action under any Collateral Document, including any action required to maintain the perfection of any such security interest), and (b) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, provided that (i) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (ii) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall also directly be given or made to each Lender and each Issuing Bank.  Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article, Section 2.16(d) and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in effect for the benefit of such retiring 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 and in respect of the matters referred to in the proviso under clause (a) above.

SECTION 8.07.  Non-Reliance.

(a)  Each Lender acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of credit and not investments in a business enterprise or securities.  Each Lender further represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and 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 as a Lender, and to make, acquire or hold Loans hereunder.  Each Lender shall, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information (which may contain material, non-public information within the meaning of the U.S. securities laws concerning the Borrowers and their Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder and in deciding whether or to the extent to which it will continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder.

(b)  Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or on behalf of the Administrative Agent; (ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be liable for any information contained in any Report; (iii) the Reports are not comprehensive audits or examinations, and that any Person performing any field examination will inspect only specific information regarding the Loan Parties and other Orthofix Entities and will rely significantly upon the Loan Parties’ and the other Orthofix Entities’ books and records, as well as on representations of the Loan Parties’ and the other Orthofix Entities’ personnel and that the Administrative Agent undertakes no obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party, other Orthofix Entity or any other Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any other indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other Person preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any extension of credit that the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it will pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

Credit Agreement (Orthofix), Page 82

 

(c)  Each Lender hereby acknowledges and agrees that outside legal counsel to the Administrative Agent in connection with the preparation, negotiation, execution, delivery and administration (including any amendments, waivers and consents) of this Agreement and the other Loan Documents is acting solely as counsel to the Administrative Agent and is not acting as counsel to any Lender (other than the Administrative Agent and its Affiliates) in connection with this Agreement, the other Loan Documents or any of the transactions contemplated hereby or thereby.

SECTION 8.08.  Other Agency Titles.   No Arranger shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender.  Each Lender hereby makes the same acknowledgments with respect to the relevant Lenders in their respective capacities as Arrangers, as applicable, as it makes with respect to the Administrative Agent in the preceding paragraph.

SECTION 8.09.  Not Partners or Co-Venturers; Administrative Agent as Representative of the Secured Parties.   (a) The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender.  The Administrative Agent shall have the exclusive right on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after the date such principal or interest has become due and payable pursuant to the terms of this Agreement.

(b)  In its capacity, the Administrative Agent is a “representative” of the Secured Parties within the meaning of the term “secured party” as defined in the UCC.  Each Lender authorizes the Administrative Agent to enter into each of the Collateral Documents to which it is a party and to take all action contemplated by such documents.  Each Lender agrees that no Secured Party (other than the Administrative Agent) shall have the right individually to seek to realize upon the security granted by any Collateral Document, it being understood and agreed that such rights and remedies may be exercised solely by the Administrative Agent for the benefit of the Secured Parties upon the terms of the Collateral Documents.  In the event that any Collateral is hereafter pledged by any Person as collateral security for the Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the Secured Parties.

ARTICLE IX

Miscellaneous

SECTION 9.01.  Notices.

(a)  Except in the case of notices and other communications expressly permitted to be given by telephone or Electronic Systems (and subject in each case to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by fax, as follows:

(i)  if to any Loan Party, to it in care of the Borrower Representative at:

3451 Plano Parkway
Lewisville, TX 75056
Attention: Maritza V. Royall

Email: MaritzaRoyal@Orthofix.com

Telecopy No.: (214) 937-2761

with a copy to

3451 Plano Parkway
Lewisville, TX 75056
Attention: General Counsel

Email: jeffschumm@orthofix.com

Telecopy No.: (214) 937-2759

Credit Agreement (Orthofix), Page 83

 

(ii)  if to the Administrative Agent in connection with a Borrowing Request from the U.S. Borrower made in Dollars to JPMorgan Chase Bank at:

10 South Dearborn, Floor L2S

Chicago, IL, 60603-2300, United States

Attention: Nanette Wilson

Phone:    312-385-7084

Facsimile: 888-292-9533

Jpm.agency.cri@jpmorgan.com

(iii)  if to the Administrative Agent in connection with a Borrowing Request for the UK Borrower or Loans made in Foreign Currencies to:

J.P. Morgan Europe Limited

Loans Agency 6th floor

25 Bank Street, Canary Wharf

London E14 5JP

United Kingdom

Attention: Loans Agency

Facsimile:  +44 20 7777 2360

Email: Loan_and_agency_London@jpmorgan.com

with a copy to JPMorgan Chase Bank, N.A. at

10 South Dearborn, Floor L2S

Chicago, IL, 60603-2300, United States

Attention: Nanette Wilson

Phone:    312-385-7084

Facsimile: 888-292-9533

Jpm.agency.cri@jpmorgan.com

(iv)  if to JPMorgan Chase Bank as Issuing Bank, to it at

10 South Dearborn, Floor L2S

Chicago, IL, 60603-2300, United States

Attention: Nanette Wilson

Phone:    312-385-7084

Facsimile: 888-292-9533

Jpm.agency.cri@jpmorgan.com

or, if to any other Issuing Bank, at such contact information provided by such Issuing Bank;

(v)  if to JPMorgan Chase Bank as Swingline Lender, to it at

10 South Dearborn, Floor L2S

Chicago, IL, 60603-2300, United States

Attention: Nanette Wilson

Phone:    312-385-7084

Facsimile: 888-292-9533

Jpm.agency.cri@jpmorgan.com

or, if to any other Swingline Lender, at such contact information provided by such Swingline Lender;

(vi)  if to any other Lender, to it at its address or fax number set forth in its Administrative Questionnaire.

All such notices and other communications (i) sent by hand or overnight courier service, or mailed by certified or registered mail shall be deemed to have been given when received, (ii) sent by fax shall be deemed to have been given when sent, provided that if not given during normal business hours for the recipient, such notice or communication shall be deemed to have been given at the opening of 

Credit Agreement (Orthofix), Page 84

 

business on the next Business Day of the recipient, or (iii) delivered through Electronic Systems to the extent provided in paragraph (b) below shall be effective as provided in such paragraph.

(b)  Notices and other communications to the Lenders hereunder may be delivered or furnished by Electronic Systems pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II or to compliance and no Default certificates delivered pursuant to Section 5.01 unless otherwise agreed by the Administrative Agent and the applicable Lender.  Each of the Administrative Agent and the Borrower Representative (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications to it hereunder by Electronic Systems pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise proscribes, all such notices and other communications (i) sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if not given during the normal business hours of the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient, and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day of the recipient.

(c)  Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

(d)  Electronic Systems.

(i)  Each Loan Party agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debt Domain, Intralinks®, Syndtrak, ClearPar® or a substantially similar Electronic System.

(ii)  Any Electronic System used by the Administrative Agent is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the adequacy of such Electronic Systems and expressly disclaim liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or any Electronic System.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower or the other Loan Parties, any other Orthofix Entity, any Lender, the Issuing Bank or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Borrower’s, any Loan Party’s, any other Orthofix Entity’s, or the Administrative Agent’s transmission of communications through an Electronic System.  “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party and/or any other Orthofix Entity pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through an Electronic System.

SECTION 9.02.  Waivers; Amendments.

(a)  No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any Loan Party or other Orthofix Entity 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 the Issuing Bank may have had notice or knowledge of such Default at the time.

(b)  Subject to the other provisions of this Section 9.02, neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrowers and the Required Lenders or (ii) in the case of any other Loan 

Credit Agreement (Orthofix), Page 85

 

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, with the consent of the Required Lenders; provided that no such agreement shall

(A)  increase the Commitment of any Lender without the written consent of such Lender (including any such Lender that is a Defaulting Lender),

(B)  reduce or forgive the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable hereunder, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby, provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend Section 2.12(c) or to waive any obligation of the Borrowers to pay interest or letter of credit fees at the rate provided for in Section 2.12(c) or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or LC Disbursement or to reduce any fee payable hereunder,

(C)  postpone any scheduled date of payment of the principal amount of any Loan or LC Disbursement (excluding voluntary and mandatory prepayments), or any date for the payment of any interest, fees or other Obligations 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 (including any such Lender that is a Defaulting Lender) directly affected thereby,

(D)  change Section 2.17(b) or (d) in a manner that would alter the manner in which payments are shared, without the written consent of each Lender (other than any Defaulting Lender) directly and adversely affected thereby,

(E)  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 (other than any Defaulting Lender) directly affected thereby,

(F)  amend the definition of “Agreed Currency” set forth in Section 1.01 without the written consent of each Lender directly affected thereby,

(G)  release all or substantially all the Guarantors from their obligations under the Loan Guaranty or Obligation Guaranty (except as otherwise permitted herein or in the other Loan Documents), without the written consent of each Lender directly affected thereby (other than any Defaulting Lender), or

(H)  except as provided in clause (d) of this Section or in any Collateral Document, release all or substantially all of the Collateral without the written consent of each Lender directly affected thereby (other than any Defaulting Lender);

provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, the Swingline Lender or the Issuing Bank hereunder without the prior written consent of the Administrative Agent, the Swingline Lender or the Issuing Bank, as the case may be (it being understood that any amendment to Section 2.19 shall require the consent of the Administrative Agent, the Swingline Lender and the Issuing Bank).  The Administrative Agent may also amend the Commitment Schedule to reflect assignments entered into pursuant to Section 9.04.  Any amendment, waiver or other modification of this Agreement or any other Loan Document that by its terms affects the rights or duties under this Agreement of the Lenders of one or more Classes (but not the Lenders of any other Class), may be effected by an agreement or agreements in writing entered into by the Borrowers and the requisite number or percentage in interest of each affected Class of Lenders that would be required to consent thereto under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time.

(c)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, if the Administrative Agent and the Borrowers acting together identify any omission, mistake, typographical error, inconsistency or other defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Borrowers shall be permitted to amend, modify or supplement such provision to cure such omission, mistake, typographical error, inconsistency or other defect, and such amendment shall become effective without any further action or consent of any other party to this Agreement.

(d)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, the Lenders and the Issuing Bank hereby irrevocably authorize the Administrative Agent to, and the Administrative Agent will, upon the request of the Borrowers, release (or in the case of clause (iv) below, subordinate) any Liens granted to the 

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Administrative Agent by the Loan Parties on any Collateral (i) upon the termination of all of the Commitments, payment and satisfaction in full in cash of all Secured Obligations (other than (x) Unliquidated Obligations and (y) Banking Services Obligations and Swap Obligations as to which arrangements satisfactory to the Administrative Agent, and the relevant Person owed such Banking Services Obligations or Swap Obligations, as applicable, shall have been made), and the cash collateralization of all Unliquidated Obligations in a manner satisfactory to each affected Lender, (ii) constituting property being sold or disposed of if the Loan Party disposing of such property certifies to the Administrative Agent that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further inquiry), and to the extent that the property being sold or disposed of constitutes 100% of the Equity Interests of a Subsidiary, the Administrative Agent is authorized to release any Loan Guaranty or Obligation Guaranty provided by such Subsidiary, (iii) constituting property leased to a Loan Party under a lease which has expired or been terminated in a transaction permitted under this Agreement, (iv) as required to effect any sale or other disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII, (v) in connection with the Permitted Reorganization or (vi) granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02(d).  Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral. Any execution and delivery by the Administrative Agent of documents in connection with any such release shall be without recourse to or warranty by the Administrative Agent.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the applicable Loan Guaranty or Obligation Guaranty pursuant to this Section 9.02(d).  In each case as specified in this Section 9.02(d), the Administrative Agent will, at the Borrower Representative’s expense (and each Lender irrevocably authorizes the Administrative Agent to), (x) deliver to the applicable Loan Party any Collateral in the Administrative Agent’s possession following the release of such Collateral and (y) execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under the Loan Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.02(d).

(e)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, the Administrative Agent, the Borrower Representative and the Company, may, without the input or consent of the Required Lenders or any other Lender, effect amendments to, or waiver of, or release of, this Agreement or any other Loan Document, as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the Permitted Reorganization.

(f)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, the Administrative Agent, the Borrower and each Incremental Lender, may, without the input or consent of the Required Lenders or any other Lender, execute any Incremental Amendment or otherwise effect amendments to this Agreement or any other Loan Document as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect any Incremental Commitments in connection with the provisions of Section 2.08(e) through (h).

(g)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, the Administrative Agent, the Borrower Representative, Orthofix‐Italy and each Italy Sub-Facility Lender, may, without the input or consent of the Required Lenders or any other Lender, effect amendments to this Agreement or any other Loan Document as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of Section 2.25.

(h)  Notwithstanding the foregoing or any other provision in this Agreement or any other Loan Document to the contrary, the Administrative Agent and the Borrower Representative, may, without the input or consent of the Required Lenders or any other Lender, effect amendments to this Agreement or any other Loan Document, as may be necessary or appropriate, in the opinion of the Administrative Agent,  in connection with the addition or replacement of an Issuing Bank  or the addition or replacement of the Swingline Lender.

(i)  If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but has not been obtained being referred to herein as a “Non-Consenting Lender”), then the Borrowers may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrowers, the Administrative Agent and the Issuing Bank shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrowers shall pay to such Non‐Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the 

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Borrowers hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Sections 2.14 and 2.16, and (2) an amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under Section 2.15 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender.

SECTION 9.03.  Expenses; Indemnity; Damage Waiver.

(a)  The Loan Parties, jointly and severally, shall pay all (i) reasonable and invoiced out‐of‐pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of one counsel and one local counsel in each specialty and relevant jurisdiction for the Administrative Agent, in connection with the syndication and distribution (including, without limitation, via the internet or through an Electronic System) of the credit facilities provided for herein, the preparation and administration of the Loan Documents and any amendments, modifications or waivers of the provisions of the Loan Documents (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) reasonable and invoiced out‐of‐pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, the Issuing Bank or the Swingline Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Bank or the Swingline Lender, in connection with the enforcement, collection or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out‐of‐pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit, and (iv) reasonable and invoiced out-of-pocket expenses incurred by any Lender, including the fees, charges and disbursements of one counsel and one local counsel in each specialty and relevant jurisdiction for the Lenders, taken as a whole, and in the case of an actual or perceived conflict of interest, one additional counsel in each specialty and relevant jurisdiction to each group of Lenders similarly situated taken as a whole, in connection with the enforcement, collection or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out‐of‐pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.  Expenses being reimbursed by the Loan Parties under this Section include, without limiting the generality of the foregoing, fees, costs and expenses incurred in connection with:

(A)  appraisals and insurance reviews;

(B)  field examinations and the preparation of Reports based on the fees charged by a third party retained by the Administrative Agent;

(C)  background checks regarding senior management and/or key investors, as deemed necessary or appropriate in the reasonable discretion of the Administrative Agent;

(D)  Taxes, fees and other charges for lien and title searches and other actions to perfect, protect, and continue the Administrative Agent’s Liens;

(E)  sums paid or incurred to take any action required of any Loan Party or other Orthofix Entity under the Loan Documents that such Loan Party or other Orthofix Entity fails to pay or take; and

(F)  forwarding loan proceeds, collecting checks and other items of payment, and establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving and protecting the Collateral.

All of the foregoing fees, costs and expenses may be charged to the Borrowers as Revolving Loans, all as described in Section 2.17(c).

(b)  The Loan Parties, jointly and severally, shall indemnify the Administrative Agent, the Issuing Bank, each Arranger and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, penalties, incremental taxes, liabilities and related expenses, (including, without limitation, reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel and one local counsel in each specialty and in each relevant jurisdiction for the Indemnitees taken as a whole in connection with indemnification claims arising out of the same facts or circumstances, and, solely in the case of an actual or perceived conflict of interest, as reasonably determined by the affected Indemnitee (based upon the advice of counsel to such Indemnitee), one additional counsel in each specialty and relevant jurisdiction to each group of affected Indemnitees similarly situated taken as a whole), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of the Loan Documents or any agreement or instrument contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a 

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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 a Loan Party or any other Orthofix Entity, or any Environmental Liability related in any way to an Orthofix Entity, (iv) the failure of a Loan Party to deliver to the Administrative Agent the required receipts or other required documentary evidence with respect to a payment made by such Loan Party for Taxes pursuant to Section 2.16, (v) the disclosure of Confidential Healthcare Information to the Administrative Agent or any Lender in violation of Section 9.21, or (vi) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not such claim, litigation, investigation or proceeding is brought by any Loan Party, other Orthofix Entity or their respective equity holders, Affiliates, creditors or any other third Person and whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, penalties, liabilities or related expenses are determined by final and nonappealable judgment of a court of competent jurisdiction to (A) have arisen or resulted from (x) the gross negligence, bad faith or willful misconduct of such Indemnitee or (y) a breach in bad faith of a material obligation of such Indemnitee or any of its Affiliates or (B) not have resulted from an act or omission from any of the Borrowers, the Guarantors or any of their Affiliates and have been brought by an Indemnitee against another Indemnitee (other than against the Administrative Agent, the Swingline Lender, the Issuing Bank or the Arrangers in their capacities or fulfilling their respective roles as an arranger or agent or any similar role hereunder). WITHOUT LIMITATION OF THE FOREGOING, IT IS THE INTENTION OF THE BORROWERS AND THE BORROWERS AGREE THAT THE FOREGOING INDEMNITIES SHALL APPLY TO EACH INDEMNITEE WITH RESPECT TO LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFORE IN ACCORDANCE WITH CLAUSES (iii) AND (iv) OF SECTION 9.03(a)) WHICH IN WHOLE OR IN PART ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER) INDEMNITEE. This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.

(c)  To the extent that any Loan Party fails to pay any amount required to be paid by it to the Administrative Agent (or any sub-agent thereof), the Swingline Lender or the Issuing Bank (or any Related Party of any of the foregoing) under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, the Swingline Lender or the Issuing Bank (or any Related Party of any of the foregoing), as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being understood that the Borrowers’ failure to pay any such amount shall not relieve the Borrowers of any default in the payment thereof); provided that the unreimbursed expense or indemnified loss, claim, damage, penalty, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the Swingline Lender or the Issuing Bank in its capacity as such.

(d)  To the extent permitted by applicable law, no Loan Party or other Orthofix Entity shall assert, and each Loan Party hereby waives, on behalf of itself and each other Orthofix Entity any claim against any Indemnitee, (i) for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), except for damages that are determined by final and nonappealable judgment of a court of competent jurisdiction to have arisen or resulted from the bad faith or willful misconduct of such Indemnitee or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this paragraph (d) shall relieve any Loan Party of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.

(e)  All amounts due under this Section shall be payable promptly but not later than five days after written demand therefor.

SECTION 9.04.  Successors and Assigns.

(a)  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by a Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the Arrangers, the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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(b)  (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, participations in Letters of Credit and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:

(A)  the Borrower Representative, provided such consent will not be unreasonably withheld and that the Borrower Representative shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof, and provided further that no consent of the Borrower Representative shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee;

(B)  the Administrative Agent; and

(C)  the Issuing Bank; and

(D)  the Swingline Lender.

(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 the Dollar Amount of $5,000,000 unless each of the Borrower Representative and the Administrative Agent otherwise consent, provided that no such consent of the Borrower Representative shall be required if an Event of Default has occurred and is continuing;

(B)  each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement;

(C)  the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to a Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee of $3,500;

(D)  the assignee must be capable of lending in each of the Agreed Currencies to each of the U.S. Borrower and the UK Borrower; and

(E)  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 Company, the other Orthofix Entities and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including federal and state securities laws.

For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution” have the following meanings:

“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.

“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender and its Parent, (c) company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof; provided that, such company, investment vehicle or trust shall not constitute an Ineligible Institution if it (i) has not been established for the primary purpose of acquiring any Loans or Commitments, (ii) is managed by a professional advisor, who is not such natural person or a relative thereof, having significant experience in the business of making or purchasing commercial loans, and (iii) has assets greater than $25,000,000 and a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary course of its business; provided that upon the occurrence of an Event of Default, any Person (other than a Lender) shall be an Ineligible Institution if after giving effect to any proposed assignment to such Person, such Person would hold more than 25% of the 

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then outstanding Aggregate Revolving Exposure or aggregate Commitments, as the case may be or (d) each of the Borrowers, the other Loan Parties, each other Orthofix Entity and any of Affiliates of each the foregoing.

(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, 2.15, 2.16 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.

(iv)  The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrowers, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrowers, the Administrative Agent, the Issuing Bank and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrowers, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

(v)  Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to a Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in 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; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.04, 2.05(d) or (e), 2.06(b), 2.17(d) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

(c)  Any Lender may, without the consent of the Borrowers, the Administrative Agent, the Swingline Lender or the Issuing Bank, sell participations to one or more banks or other entities (a “Participant”) other than an Ineligible Institution in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged; (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations; and (iii) the Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant.  The Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 (subject to the requirements and limitations therein, including the requirements under Sections 2.16(f) and (h) (it being understood that the documentation required under Section 2.16(f) shall be delivered to the participating Lender and the information and documentation required under Section 2.16(h) will be delivered to the Borrower Representative and the Administrative Agent)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.17 and 2.18 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.14 or 2.16 with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

Each Lender that sells a participation agrees, at the Borrowers’ request and expense, to use reasonable efforts to cooperate with the Borrowers to effectuate the provisions of Section 2.18(b) with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.17(d) as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as an 

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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 or any other Loan Document (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under this Agreement or any other Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the U.S. Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement, notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

(d)  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 9.05.  Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan 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, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.

SECTION 9.06.  Counterparts; Integration; Effectiveness; Electronic Execution.  (a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  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.

(b)  Delivery of an executed counterpart of a signature page of this Agreement by telecopy, emailed pdf. or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby or thereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.  THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SECTION 9.07.  Severability.  Any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

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SECTION 9.08.  Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to 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 Loan Party against any of and all the Secured Obligations held by such Lender, irrespective of whether or not such Lender shall have made any demand under the Loan Documents and although such obligations may be unmatured.  The applicable Lender shall notify the Borrower Representative and the Administrative Agent of such set-off or application, provided that any failure to give or any delay in giving such notice shall not affect the validity of any such set-off or application under this Section.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process.

(a)  The Loan Documents (other than those containing a contrary express choice of law provision) shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of New York, but giving effect to federal laws applicable to national banks.

(b)  Each Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any U.S. federal or New York state court sitting in New York, New York in any action or proceeding arising out of or relating to any Loan Documents, 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 state court 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, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.

(c)  Each Loan Party 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 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.  EACH UK BORROWER AND OTHER FOREIGN SUBSIDIARY OF THE COMPANY HEREBY IRREVOCABLY APPOINTS THE BORROWER REPRESENTATIVE AS ITS AGENT FOR SERVICE OF PROCESS IN ANY PROCEEDING IN CONNECTION WITH THIS AGREEMENT AND THE LOAN DOCUMENTS, AND AGREES THAT SERVICE OF PROCESS IN ANY SUCH PROCEEDING MAY BE MADE BY MAILING OR DELIVERING A COPY THEREOF TO IT CARE OF THE BORROWER REPRESENTATIVE IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.01.

SECTION 9.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 9.11.  Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 9.12.  Confidentiality.  Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of, and not to disclose to any Person, the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being 

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understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and who are either subject to customary confidentiality obligations of employment or professional practice, or who agree to be bound by the terms of this paragraph (or language substantially similar to this Section)), (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by any Requirement of Law or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (x) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Loan Parties, the other Orthofix Entities and their obligations, (g) with the consent of the Borrower Representative, (h) to any Person providing a Guarantee of all or any portion of the Secured Obligations, or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrowers that is not, to the knowledge of the Administrative Agent, the Issuing Bank or any Lender, subject to contractual or fiduciary confidentiality obligations owing to any Orthofix Entity.  For the purposes of this Section, “Information” means all confidential information received from or on behalf of the Orthofix Entities relating to the Orthofix Entities or their business, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrowers from a source other than the Borrowers that is not, to the knowledge of the Administrative Agent, the Issuing Bank or any Lender, subject to contractual or fiduciary confidentiality obligations owing to any Orthofix Entity and other than 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.

EACH LENDER ACKNOWLEDGES THAT INFORMATION (AS DEFINED IN THIS SECTION 9.12) FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWERS, THE OTHER LOAN PARTIES AND ORTHOFIX ENTITIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

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, OTHER THE LOAN PARTIES AND ORTHOFIX ENTITIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

SECTION 9.13.  Several Obligations; Nonreliance; Violation of Law.  The respective obligations of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder.  Each Lender hereby represents that it is not relying on or looking to any margin stock (as defined in Regulation U of the Board) for the repayment of the Borrowings provided for herein.  Anything contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor any Lender shall be obligated to extend credit to the Borrowers in violation of any Requirement of Law.

SECTION 9.14.  USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA PATRIOT Act hereby notifies each Loan Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the USA PATRIOT Act.

SECTION 9.15.  Disclosure.  Each Loan Party, each Lender and the Issuing Bank hereby acknowledges and agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with, any of the Loan Parties, any of the other Orthofix Entities and their respective Affiliates.

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SECTION 9.16.  Appointment for Perfection.  Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent and the Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession or control.  Should any Lender (other than the Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s instructions.

SECTION 9.17.  Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

SECTION 9.18.  Marketing Consent.  The Borrowers hereby authorize JPMorgan Chase Bank, J.P. Morgan Securities LLC, each Lender and each of their respective Affiliates, at their respective sole expense, but without any prior approval by the Borrowers, to publish such tombstones and such other similar and customary marketing materials in respect of this Agreement as each may from time to time determine in its sole discretion.  The foregoing authorization shall remain in effect with respect to any such Person unless the Borrower Representative notifies such Person in writing that such authorization is revoked.

SECTION 9.19.  No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrowers acknowledge and agree that:  (i) (A) the arranging and other services regarding this Agreement provided by the Lenders are arm’s‐length commercial transactions between each Borrower and its Affiliates, on the one hand, and the Arrangers, the Lenders and their Affiliates, on the other hand, (B) each Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Arrangers, the Lenders and their respective Affiliates are and have been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, have not been, are not, and will not be acting as an advisor, agent or fiduciary for the Borrowers or any of their Affiliates, or any other Person and (B) no Arranger or Lender, or any of their respective Affiliates, has any obligation to the Borrowers or any of their Affiliates with respect to the transactions contemplated hereby except, in the case of a Lender, those obligations expressly set forth herein and in the other Loan Documents; and (iii) each of the Arrangers, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrowers and their Affiliates, and no Arranger or Lender, or any of their respective Affiliates has any obligation to disclose any of such interests to the Borrowers or their Affiliates.  To the fullest extent permitted by law, the Borrowers hereby waive and release any claims that they may have against each of the Arrangers, the Lenders and their Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

SECTION 9.20.  No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the Arrangers listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender hereunder. Without limiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender. The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender.

SECTION 9.21.  Protected Health Information.  During the term of this Agreement, the Administrative Agent and the Lenders may be involved in field examinations and other visits, inspections, examinations and discussions with the Borrower Representative, any other Orthofix Entity or  a Subsidiary.  Such involvement  by the Administrative Agent or any Lender shall not be considered a request for the disclosure of any Protected Health Information or other confidential information relating to healthcare patients (collectively, the “Confidential Healthcare Information”), unless (a) the Lenders have made a written request for such information, (b) the Lenders have entered into a business associate agreement to cover the use and disclosure of such Confidential Healthcare Information by, to, or for the benefit of the Lenders and (c) the Lenders and the Borrower Representative have determined that such use and disclosure will not violate any laws, regulations or ordinances intended to protect the privacy rights of healthcare patients, including, without limitation, HIPAA.  Each of the Borrower Representative, Borrowers and Subsidiaries hereby acknowledge the foregoing and represent that they will not disclose Confidential Healthcare Information to the Administrative Agent or any Lender except to the extent permitted under this Section and by applicable law.

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ARTICLE X

Loan Guaranty

SECTION 10.01.  Guaranty.  Each Loan Guarantor (other than those that have delivered a separate Obligation Guaranty) hereby agrees that it is jointly and severally liable for, and, as a primary obligor and not merely as surety, absolutely, unconditionally and irrevocably guarantees to the Secured Parties, the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Secured Obligations and all costs and expenses, including, without limitation, all court costs and reasonable attorneys’ and paralegals’ fees and expenses paid or incurred by the Administrative Agent, the Issuing Bank and the Lenders in endeavoring to collect all or any part of the Secured Obligations from, or in prosecuting any action against, any Borrower, any Loan Guarantor or any other guarantor of all or any part of the Secured Obligations (such costs and expenses, together with the Secured Obligations, collectively the “Guaranteed Obligations”; provided, however, that the definition of “Guaranteed Obligations” shall not create any guarantee by any Loan Guarantor of (or grant of security interest by any Loan Guarantor to support, as applicable) any Excluded Swap Obligations of such Loan Guarantor for purposes of determining any obligations of any Loan Guarantor).  Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.  All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations.

SECTION 10.02.  Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and not of collection.  Each Loan Guarantor waives any right to require the Administrative Agent, the Issuing Bank or any Lender to sue any Borrower or any Loan Guarantor, or any other guarantor of, or any other Person obligated for, all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.

SECTION 10.03.  No Discharge or Diminishment of Loan Guaranty.  (a) Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of any Borrower or any other Obligated Party liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated Party or their assets, or any resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time against any Obligated Party, the Administrative Agent, the Issuing Bank, any Lender or any other Person, whether in connection herewith or in any unrelated transactions.

(a)  The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any part thereof.

(b)  Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection or invalidity of any indirect or direct security for the obligations of any Borrower for all or any part of the Guaranteed Obligations or any obligations of any other Obligated Party liable for any of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, the Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Loan Guarantor or that would otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of the Guaranteed Obligations).

SECTION 10.04.  Defenses Waived.  To the fullest extent permitted by applicable law, each Loan Guarantor hereby waives any defense based on or arising out of any defense of any Borrower or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation from any cause of the liability of any Borrower, any Loan Guarantor or any other Obligated Party, other than the indefeasible payment in full in cash of the Guaranteed Obligations. Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any Obligated Party or any other Person.  Each Loan Guarantor confirms that it is not a surety under any state law and shall not raise any such law as a defense to its obligations hereunder.  The Administrative Agent may, at its election, foreclose on 

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any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise any other right or remedy available to it against any Obligated Party, without affecting or impairing in any way the liability of such Loan Guarantor under this Loan Guaranty, except to the extent the Guaranteed Obligations have been fully and indefeasibly paid in cash.  To the fullest extent permitted by applicable law, each Loan Guarantor waives any defense arising out of any such election even though that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Loan Guarantor against any Obligated Party or any security.

SECTION 10.05.  Rights of Subrogation.  No Loan Guarantor will assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or indemnification, that it has against any Obligated Party or any collateral, until the Loan Parties and the Loan Guarantors have fully performed all their obligations to the Administrative Agent, the Issuing Bank and the Lenders.

SECTION 10.06.  Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of the Guaranteed Obligations (including a payment effected through exercise of a right of setoff) is rescinded, or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of any Borrower or otherwise (including pursuant to any settlement entered into by a Secured Party in its discretion), each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though the payment had not been made and whether or not the Administrative Agent, the Issuing Bank and the Lenders are in possession of this Loan Guaranty. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Administrative Agent.

SECTION 10.07.  Information.  Each Loan Guarantor assumes all responsibility for being and keeping itself informed of the Borrowers’ financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that each Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that none of the Administrative Agent, the Issuing Bank or any Lender shall have any duty to advise any Loan Guarantor of information known to it regarding those circumstances or risks.

SECTION 10.08.  Termination.  Each of the Lenders and the Issuing Bank may continue to make loans or extend credit to the Borrowers based on this Loan Guaranty until five (5) days after it receives written notice of termination from any Loan Guarantor.  Notwithstanding receipt of any such notice, each Loan Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations created, assumed or committed to prior to the fifth day after receipt of the notice, and all subsequent renewals, extensions, modifications and amendments with respect to, or substitutions for, all or any part of such Guaranteed Obligations.  Nothing in this Section 10.08 shall be deemed to constitute a waiver of, or eliminate, limit, reduce or otherwise impair any rights or remedies the Administrative Agent or any Lender may have in respect of, any Default or Event of Default that shall exist under Article VII hereof as a result of any such notice of termination.

SECTION 10.09.  Taxes.

(a)  Withholding Taxes; Gross-Up; Payments Free of Taxes.  Each payment of the Guaranteed Obligations will be made by each Loan Guarantor without withholding for any Taxes, unless such withholding is required by law.  If any Loan Guarantor determines, in its sole discretion exercised in good faith, that it is so required to withhold Taxes, then such Loan Guarantor may so withhold and shall timely pay the full amount of withheld Taxes to the relevant Governmental Authority in accordance with applicable law.  If such Taxes are Indemnified Taxes, then the amount payable by such Loan Guarantor shall be increased (without duplication as to any additional amounts paid under Section 2.16) as necessary so that, net of such withholding (including such withholding applicable to additional amounts payable under this Section), the Administrative Agent, Lender or Issuing Bank (as the case may be) receives the amount it would have received had no such withholding been made.

(b)  Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been paid additional amounts by a Loan Guarantor pursuant to this Section 10.09, it shall pay to such Loan Guarantor an amount equal to such refund (but only to the extent of payments made under this Section 10.09 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such Loan Guarantor, upon the request of such party, shall repay to such party the amount paid over pursuant to this paragraph (b) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (b), in no event will the party be required to pay any amount to a Loan Guarantor pursuant to this paragraph (b) the payment of which would place the party in a less favorable net 

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after-Tax position than the party would have been in if the Tax giving rise to such refund had not been deducted, withheld or otherwise imposed and the additional amounts giving rise to such refund had never been paid.  This paragraph (b) shall not be construed to require any party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Loan Guarantor or any other Person.

SECTION 10.10.  Maximum Liability.  Notwithstanding any other provision of this Loan Guaranty, the amount guaranteed by each Loan Guarantor hereunder shall be limited to the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.  In determining the limitations, if any, on the amount of any Loan Guarantor’s obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification or contribution which such Loan Guarantor may have under this Loan Guaranty, any other agreement or applicable law shall be taken into account.

SECTION 10.11.  Contribution.

(a)  To the extent that any Loan Guarantor shall make a payment under this Loan Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously or concurrently made by any other Loan Guarantor, exceeds the amount which otherwise would have been paid by or attributable to such Loan Guarantor if each Loan Guarantor had paid the aggregate Guaranteed Obligations satisfied by such Guarantor Payment in the same proportion as such Loan Guarantor’s “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Loan Guarantors as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guarantor Payment and the Guaranteed Obligations (other than Unliquidated Obligations that have not yet arisen), and all Commitments and Letters of Credit have terminated or expired or, in the case of all Letters of Credit, are fully collateralized on terms reasonably acceptable to the Administrative Agent and the Issuing Bank, and this Agreement, the Swap Agreement Obligations and the Banking Services Obligations have terminated, such Loan Guarantor shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Loan Guarantor for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

(b)  As of any date of determination, the “Allocable Amount” of any Loan Guarantor shall be equal to the excess of the fair saleable value of the property of such Loan Guarantor over the total liabilities of such Loan Guarantor (including the maximum amount reasonably expected to become due in respect of contingent liabilities, calculated, without duplication, assuming each other Loan Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving effect to all payments made by other Loan Guarantors as of such date in a manner to maximize the amount of such contributions.

(c)  This Section 10.11 is intended only to define the relative rights of the Loan Guarantors, and nothing set forth in this Section 10.11 is intended to or shall impair the obligations of the Loan Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Loan Guaranty.

(d)  The parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of the Loan Guarantor or Loan Guarantors to which such contribution and indemnification is owing.

(e)  The rights of the indemnifying Loan Guarantors against other Loan Guarantors under this Section 10.11 shall be exercisable upon the full and indefeasible payment of the Guaranteed Obligations in cash (other than Unliquidated Obligations that have not yet arisen) and the termination or expiry (or, in the case of all Letters of Credit, full cash collateralization), on terms reasonably acceptable to the Administrative Agent and the Issuing Bank, of the Commitments and all Letters of Credit issued hereunder and the termination of this Agreement, the Swap Agreement Obligations and the Banking Services Obligations.

SECTION 10.12.  Liability Cumulative.  The liability of each Loan Party as a Loan Guarantor under this Article X is in addition to and shall be cumulative with all liabilities of each Loan Party to the Administrative Agent, the Issuing Bank and the Lenders under this Agreement and the other Loan Documents to which such Loan Party is a party or in respect of any obligations or liabilities of the other Loan Parties, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.

SECTION 10.13.  Keepwell.   Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under this Guarantee in respect of a Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 10.13 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 10.13 or otherwise under this Loan Guaranty voidable under applicable law relating to fraudulent 

Credit Agreement (Orthofix), Page 98

 

conveyance or fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section 10.13 shall remain in full force and effect until the termination of all Swap Obligations.  Each Qualified ECP Guarantor intends that this Section 10.13 constitute, and this Section 10.13 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

ARTICLE XI

The Borrower Representative.

SECTION 11.01.    Appointment; Nature of Relationship.   Orthofix Holdings, Inc. is hereby appointed by each of the Borrowers as its contractual representative (herein referred to as the “Borrower Representative”) hereunder and under each other Loan Document, and each of the Borrowers irrevocably authorizes the Borrower Representative to act as the contractual representative of such Borrower with the rights and duties expressly set forth herein and in the other Loan Documents.  The Borrower Representative agrees to act as such contractual representative upon the express conditions contained in this Article XI.  Additionally, the Borrowers hereby appoint the Borrower Representative as their agent to receive all of the proceeds of the Loans in the Funding Account, at which time the Borrower Representative shall promptly disburse such Loans to the appropriate Borrower, provided that, in the case of a Revolving Loan, such amount shall not exceed the Availability.  The Administrative Agent and the Lenders, and their respective officers, directors, agents or employees, shall not be liable to the Borrower Representative or any Borrower for any action taken or omitted to be taken by the Borrower Representative or the Borrowers pursuant to this Section 11.01.

SECTION 11.02.  Powers.   The Borrower Representative shall have and may exercise such powers under the Loan Documents as are specifically delegated to the Borrower Representative by the terms of each thereof, together with such powers as are reasonably incidental thereto.  The Borrower Representative shall have no implied duties to the Borrowers, or any obligation to the Lenders to take any action thereunder except any action specifically provided by the Loan Documents to be taken by the Borrower Representative.

SECTION 11.03.  Employment of Agents.   The Borrower Representative may execute any of its duties as the Borrower Representative hereunder and under any other Loan Document by or through authorized officers.

SECTION 11.04.  Notices.  Each Borrower shall immediately notify the Borrower Representative of the occurrence of any Default or Event of Default hereunder, refer to this Agreement, describe such Default or Event of Default, and state that such notice is a “notice of default”.  In the event that the Borrower Representative receives such a notice, the Borrower Representative shall give prompt notice thereof to the Administrative Agent and the Lenders.  Any notice provided to the Borrower Representative hereunder shall constitute notice to each Borrower on the date received by the Borrower Representative.

SECTION 11.05.  Successor Borrower Representative.  Upon the prior written consent of the Administrative Agent, the Borrower Representative may resign at any time, such resignation to be effective upon the appointment of a successor Borrower Representative.  The Administrative Agent shall give prompt written notice of such resignation to the Lenders.

SECTION 11.06.  Execution of Loan Documents.  The Borrowers hereby empower and authorize the Borrower Representative, on behalf of the Borrowers, to execute and deliver to the Administrative Agent and the Lenders the Loan Documents and all related agreements, certificates, documents, or instruments as shall be necessary or appropriate to effect the purposes of the Loan Documents, including, without limitation, the Compliance Certificates.  Each Borrower agrees that any action taken by the Borrower Representative or the Borrowers in accordance with the terms of this Agreement or the other Loan Documents, and the exercise by the Borrower Representative of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Borrowers.

SECTION 11.07.  Reporting.  Each Borrower hereby agrees that such Borrower shall furnish promptly after each fiscal month to the Borrower Representative a copy of any certificate or report required hereunder or requested by the Borrower Representative on which the Borrower Representative shall rely to prepare the Compliance Certificate required pursuant to the provisions of this Agreement.

[Signature Page Follows]

 

 

 

Credit Agreement (Orthofix), Page 99

 

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

 

BORROWERS:

ORTHOFIX HOLDINGS, INC.

 

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

VICTORY MEDICAL LIMITED

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  Director                                              

GUARANTORS:

ORTHOFIX INTERNATIONAL N.V.

By:  /s/ Douglas C. Rice                              
Name:  Douglas C. Rice                              
Title:  Chief Financial Officer                     

COLGATE MEDICAL LIMITED

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  Director                                              

Credit Agreement (Orthofix), Signature Page

 

 

SWIFTSURE MEDICAL LIMITED

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  Director                                              

ORTHOFIX UK LTD

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  Director                                              

ORTHOFIX INC.

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

BLACKSTONE MEDICAL, INC.

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

OSTEOGENICS INC.

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

AMEI TECHNOLOGIES INC.

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

Credit Agreement (Orthofix), Signature Page

 

 

NEOMEDICS, INC.

By:  /s/ Maritza V. Royall                            
Name:  Maritza V. Royall                            
Title:  VP, Tax & Treasury                          

Credit Agreement (Orthofix), Signature Page

 

 

JPMORGAN CHASE BANK, N.A., individually, and as Administrative Agent, Swingline Lender and Issuing Bank 

By:  /s/ Gregory T. Martin                            
Name:  Gregory T. Martin                            
Title:  Executive Director                             

Credit Agreement (Orthofix), Signature Page

 

 

COMPASS BANK dba BBVA COMPASS, as a Lender

By:  /s/ Gerardo Garza                                          
Name:  Gerardo Garza                                         
Title:  Senior Vice President                         

Credit Agreement (Orthofix), Signature Page

 

 

SunTrust Bank, as a Lender

By:  /s/ Michael Monk                                    
Name:  Michael Monk                                   
Title:  Director                                              

Credit Agreement (Orthofix), Signature Page

 

 

BANK OF AMERICA, N.A., as a Lender

By:  /s/ Heath Lipson                                    
Name:  Heath Lipson                                   
Title:  SVP                                                   

Credit Agreement (Orthofix), Signature Page

 

 

BANK OF THE WEST, as a Lender

By:  /s/ William A. Burzynski                      
Name:  William A. Burzynski                       
Title:  Vice President                                     

Credit Agreement (Orthofix), Signature Page

 

 

DNB Capital LLC,

with DNB Bank ASA Grand Canyon as designated

funder for loans to a UK Borrower, as a Lender

		
	
By:
	
/s/ Nikolai A. Nachamkin  

	
Name:
	
Nikolai A. Nachamkin  

	
Title:
	
Senior Vice President 

	
 
	
 

	
By: 
	
/s/ Cathleen Buckley  

	
Name:
	
Cathleen Buckley  

	
Title:
	
Senior Vice President  

 

 

 

Credit Agreement (Orthofix), Signature Page

 

COMMITMENT SCHEDULE

 

		
	
Lender
	
Commitment

	
JPMorgan Chase Bank, N.A.
	
$25,000,000

	
Compass Bank d/b/a 

BBVA Compass
	
$25,000,000

	
SunTrust Bank
	
$25,000,000

	
Bank of America, N.A.
	
$20,000,000

	
Bank of the West
	
$20,000,000

	
DNB Capital LLC
	
$10,000,000

	
Total
	
$125,000,000

 

 

 

Commitment Schedule

 

 

SCHEDULE 3.05

1.Leased Properties

 

	
 
	
a)
	
Lessee:

Street Address:
	
Orthofix, Inc. 

3451 Plano Parkway, Lewisville, TX 75056

	
 
	
 
	
State:
	
Texas

	
 
	
 
	
County:
	
Denton

2.Location of Tangible Personal Property

 

	
 
	
a)
	
Loan Parties:

Street Address:
	
Company and all U.S. Loan Parties

3451 Plano Parkway, Lewisville, TX 75056

	
 
	
 
	
State:
	
Texas

	
 
	
 
	
County:
	
Denton

	
 
	
 
	
 
	
 

	
 
	
b)
	
Loan Parties:

Street Address:
	
All UK Loan Parties (property is leased by Orthofix Limited)

5 Burney Court, Cordwallis Park, Maidenhead, Berkshire, England, SL6 7BU

	
 
	
 
	
Region:
	
South East

	
 
	
 
	
County:
	
Berkshire

	
 
	
 
	
District:
	
Windsor and Maidenhead

3.Intellectual Property

a)Patents

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
933409
	
933409
	
AMEI Technologies Inc.
	
Design #1 - AMEI - IMPLANTABLE GROWTH STIMULATOR 
Design #2 - AMEI - HAND-HELD PROGRAMMER/MONITOR
	
France
	
29-Jun-93
	
29-Jun-93
	
Granted

	
08/742512
	
5743844
	
AMEI Technologies Inc.
	
AMEI - HIGH EFFICIENCY PULSED ELECTROMAGNETIC FIELD (PEMF) STIMULATION THERAPY METHOD AND SYSTEM
	
United States
	
1-Nov-96
	
28-Apr-98
	
Granted

	
09/033045
	
6261221
	
AMEI Technologies Inc.
	
AMEI - FLEXIBLE COIL PULSED ELECTROMAGNETIC FIELD (PEMF) STIMULATION THERAPY SYSTEM
	
United States
	
2-Mar-98
	
17-Jul-01
	
Granted

	
09/033032
	
6132362
	
AMEI Technologies Inc.
	
AMEI - PULSED ELECTROMAGNETIC FIELD (PEMF) STIMULATION THERAPY SYSTEM WITH BI-PHASIC COIL
	
United States
	
2-Mar-98
	
17-Oct-00
	
Granted

	
04107778.9
	
HK1065496
	
AMEI Technologies Inc.
	
AMEI - PULSED ELECTROMAGNETIC FIELD (PEMF) STIMULATION THERAPY SYSTEM WITH BI-PHASIC COIL
	
Hong Kong
	
8-Oct-04
	
1-Apr-10
	
Granted

	
08/846649
	
6117575
	
AMEI Technologies Inc.
	
AMEI - BATTERY COMPARTMENT
	
United States
	
1-May-97
	
12-Sep-00
	
Granted

	
09/084525
	
6024691
	
AMEI Technologies Inc.
	
AMEI - CERVICAL COLLAR WITH INTEGRATED ELECTRICAL CIRCUITRY FOR ELECTROMAGNETIC FIELD THERAPY
	
United States
	
26-May-98
	
15-Feb-00
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
10/135662
	
6839595
	
AMEI Technologies Inc.
	
AMEI - PEMF STIMULATOR FOR TREATING OSTEOPOROSIS AND STIMULATING TISSUE GROWTH
	
United States
	
29-Apr-02
	
4-Jan-05
	
Granted

	
2339285
	
2339285
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Canada
	
30-Jul-99
	
10-Mar-09
	
Granted

	
99937623.9
	
1100582
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Great Britain
	
30-Jul-99
	
15-Jun-05
	
Granted

	
99937623.9
	
E297786
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Austria
	
30-Jul-99
	
15-Jun-05
	
Granted

	
99937623.9
	
1100582
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
France
	
30-Jul-99
	
15-Jun-05
	
Granted

	
99937623.9
	
69925839.1
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Germany
	
30-Jul-99
	
15-Jun-05
	
Granted

	
99937623.9
	
1100582
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Italy
	
30-Jul-99
	
15-Jun-05
	
Granted

	
99937623.9
	
1100582
	
AMEI Technologies Inc.
	
AMEI - PEMF TREATMENT FOR OSTEOPOROSIS AND TISSUE GROWTH STIMULATION
	
Spain
	
30-Jul-99
	
15-Jun-05
	
Granted

	
09/526136
	
6678562
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
United States
	
14-Mar-00
	
13-Jan-04
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Denmark
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Germany
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Greece
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Portugal
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Spain
	
27-Dec-00
	
26-Apr-06
	
Granted

	
2009/05629
	
2009/05629
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
South Africa
	
13-Mar-08
	
27-Oct-10
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Austria
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Netherlands
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Sweden
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Italy
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
France
	
27-Dec-00
	
26-Apr-06
	
Granted

	
00990389.9
	
1248659
	
AMEI Technologies Inc.
	
AMEI - COMBINED TISSUE/BONE GROWTH STIMULATOR AND EXTERNAL FIXATION DEVICE
	
Great Britain
	
27-Dec-00
	
26-Apr-06
	
Granted

	
12/047588
	
 
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
United States
	
13-Mar-08
	
 
	
Filed

	
08743826.3
	
 
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
European Patent Convention
	
13-Mar-08
	
 
	
Filed

	
2008225057
	
2008225057
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
Australia
	
13-Mar-08
	
8-Jun-12
	
Granted

	
2009-553767
	
5450104
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
Japan
	
13-Mar-08
	
10-Jan-14
	
Granted

	
10-2009-7018434
	
1514851
	
AMEI Technologies Inc.
	
AMEI - ENCOMPASSING EXTERNAL FIXATION DEVICE WITH INCORPORATED PEMF COIL
	
Republic of Korea
	
13-Mar-08
	
17-Apr-15
	
Granted

	
10/080642
	
7089060
	
AMEI Technologies Inc.
	
AMEI - METHODS OF STIMULATING CELL RECEPTOR ACTIVITY USING ELECTROMAGNETIC FIELDS
	
United States
	
22-Feb-02
	
8-Aug-06
	
Granted

	
09/015715
	
5950628
	
AMEI Technologies Inc.
	
AMEI - INFLATABLE WEARABLE TRACTION DEVICE
	
United States
	
29-Jan-98
	
14-Sep-99
	
Granted

	
09/875315
	
6635025
	
AMEI Technologies Inc.
	
AMEI - TRACTION DEVICE ADJUSTMENT MECHANISM AND METHOD
	
United States
	
5-Jun-01
	
21-Oct-03
	
Granted

	
10/453835
	
6974432
	
AMEI Technologies Inc.
	
AMEI - TRACTION DEVICE ADJUSTMENT MECHANISM AND METHOD
	
United States
	
3-Jun-03
	
13-Dec-05
	
Granted

	
09/875332
	
6533740
	
AMEI Technologies Inc.
	
AMEI - LIFTING MECHANISM FOR A TRACTION DEVICE
	
United States
	
5-Jun-01
	
18-Mar-03
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
10/335694
	
6776767
	
AMEI Technologies Inc.
	
AMEI - TRACTION DEVICE AND ASSOCIATED LIFTING MECHANISMS
	
United States
	
2-Jan-03
	
17-Aug-04
	
Granted

	
10/453305
	
6746413
	
AMEI Technologies Inc.
	
AMEI - CANTING MECHANISM FOR AN AMBULATORY SUPPORT DEVICE
	
United States
	
3-Jun-03
	
8-Jun-04
	
Granted

	
10/154695
	
7074201
	
AMEI Technologies Inc.
	
AMEI - MEASUREMENT DEVICE FOR FITTING A BRACING DEVICE
	
United States
	
23-May-02
	
11-Jul-06
	
Granted

	
11/408617
	
8409202
	
AMEI Technologies Inc.
	
AMEI - DRIVE SYSTEMS AND DEVICES INCORPORATING DRIVE SYSTEMS
	
United States
	
21-Apr-06
	
2-Apr-13
	
Granted

	
12/047677
	
8167880
	
AMEI Technologies Inc.
	
AMEI - ADJUSTABLE FIXATION DEVICES INCORPORATING DRIVE SYSTEMS
	
United States
	
13-Mar-08
	
1-May-12
	
Granted

	
10/370823
	
6997892
	
AMEI Technologies Inc.
	
AMEI - AMBULATORY CYCLIC TRACTION DEVICE
	
United States
	
20-Feb-03
	
14-Feb-06
	
Granted

	
10/713880
	
7001351
	
AMEI Technologies Inc.
	
AMEI - BRACE WITH INTEGRATED LUMBAR SUPPORT SYSTEM
	
United States
	
13-Nov-03
	
21-Feb-06
	
Granted

	
10/407052
	
7070572
	
AMEI Technologies Inc.
	
AMEI - DYNAMICALLY ADJUSTABLE STABILIZATION BRACE
	
United States
	
3-Apr-03
	
4-Jul-06
	
Granted

	
10/393541
	
7276038
	
AMEI Technologies Inc.
	
AMEI - FIELD ADJUSTABLE TRACTION DEVICE
	
United States
	
20-Mar-03
	
2-Oct-07
	
Granted

	
11/115009
	
7582093
	
AMEI Technologies Inc.
	
AMEI - SCREW EXTRACTION AND INSERTION DEVICE
	
United States
	
26-Apr-05
	
1-Sep-09
	
Granted

	
11/567661
	
8398687
	
AMEI Technologies Inc.
	
AMEI - VOLAR PLATE FIXATION DEVICE
	
United States
	
6-Dec-06
	
19-Mar-13
	
Granted

	
12/618498
	
8377060
	
AMEI Technologies Inc.
	
AMEI - FIXATION DEVICE AND MULTIPLE-AXIS JOINT FOR A FIXATION DEVICE
	
United States
	
13-Nov-09
	
19-Feb-13
	
Granted

	
13/566758
	
8425512
	
AMEI Technologies Inc.
	
AMEI - FIXATION DEVICE AND MULTIPLE-AXIS JOINT FOR A FIXATION DEVICE
	
United States
	
3-Aug-12
	
23-Apr-13
	
Granted

	
12/618514
	
8430878
	
AMEI Technologies Inc.
	
AMEI - ADJUSTABLE ORTHOPEDIC FIXATION SYSTEM
	
United States
	
13-Nov-09
	
30-Apr-13
	
Granted

	
12/274199
	
8828063
	
AMEI Technologies Inc.
	
AMEI - FIXATION PLATE FOR USE IN THE LAPIDUS APPROACH
	
United States
	
19-Nov-08
	
9-Sep-14
	
Granted

	
14/480309
	
9107715
	
AMEI Technologies Inc.
	
AMEI - FIXATION PLATE FOR USE IN THE LAPIDUS APPROACH
	
United States
	
8-Sep-14
	
18-Aug-15
	
Granted

	
13/586619
	
 
	
AMEI Technologies Inc.
	
AMEI - TARGETING ASSEMBLY FOR A COMPRESSION NAIL SYSTEM
	
United States
	
15-Aug-12
	
 
	
Filed

	
13/830387
	
 
	
AMEI Technologies Inc.
	
AMEI - VARIABLE ANGLE SCREWS, PLATES AND SYSTEMS
	
United States
	
14-Mar-13
	
 
	
Filed

	
PCT/US14/25952
	
 
	
AMEI Technologies Inc.
	
AMEI - VARIABLE ANGLE SCREWS, PLATES AND SYSTEMS
	
Patent Cooperation Treaty
	
13-Mar-14
	
 
	
Filed

	
13/817778
	
 
	
AMEI Technologies Inc. & Texas Scottish Rite Hospital for Children
	
AMEI - METHOD AND SYSTEM FOR ROENTGENOGRAPHY-BASED MODELING
	
United States
	
20-Aug-10
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
BR112013003955-8
	
 
	
AMEI Technologies Inc. & Texas Scottish 

Rite Hospital for Children
	
AMEI - METHODS AND SYSTEMS FOR ROENTGENOGRAPHY-BASED MODELING
	
Brazil
	
20-Aug-10
	
 
	
Filed

	
2809002
	
 
	
AMEI Technologies Inc. & Texas Scottish Rite Hospital for Children
	
AMEI - METHODS AND SYSTEMS FOR ROENTGENOGRAPHY-BASED MODELING
	
Canada
	
20-Aug-10
	
 
	
Filed

	
PCT/RU2013/000203
	
 
	
AMEI Technologies Inc. & Texas Scottish Rite Hospital for Children
	
METHOD OF DETERMINING THE POSITION OF AN OBJECT USING PROJECTIONS OF MARKERS OR STRUTS
	
Patent Cooperation Treaty
	
15-Mar-13
	
 
	
Filed

	
12/190423
	
8287571
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
United States
	
12-Aug-08
	
16-Oct-12
	
Granted

	
2009281979
	
2009281979
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
Australia
	
12-Aug-09
	
15-Jan-15
	
Granted

	
09807249.9
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
European Patent Convention
	
12-Aug-09
	
 
	
Filed

	
2011-523147
	
5612577
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
Japan
	
12-Aug-09
	
12-Sep-14
	
Granted

	
13/651640
	
9050140
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
United States
	
15-Oct-12
	
9-Jun-15
	
Granted

	
14/733609
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
United States
	
8-Jun-15
	
 
	
Filed

	
2014-180239
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
Japan
	
4-Sep-14
	
 
	
Filed

	
2014277810
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - APPARATUS FOR STABILIZING VERTEBRAL BODIES
	
Australia
	
19-Dec-14
	
 
	
Filed

	
12/707382
	
8828006
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
United States
	
17-Feb-10
	
9-Sep-14
	
Granted

	
2011200513
	
2011200513
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Australia
	
8-Feb-11
	
21-May-15
	
Granted

	
PI1100264-6
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Brazil
	
10-Feb-11
	
 
	
Filed

	
11154063.9
	
2356944
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
France
	
10-Feb-11
	
29-Apr-15
	
Granted

	
11154063.9
	
2356944
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Italy
	
10-Feb-11
	
29-Apr-15
	
Granted

	
11154063.9
	
2356944
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Germany
	
10-Feb-11
	
29-Apr-15
	
Granted

	
11154063.9
	
2356944
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Spain
	
10-Feb-11
	
29-Apr-15
	
Granted

	
11154063.9
	
2356944
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Great Britain
	
10-Feb-11
	
29-Apr-15
	
Granted

	
2011-031227
	
5752950
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Japan
	
16-Feb-11
	
29-May-15
	
Granted

	
14/309613
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
United States
	
19-Jun-14
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
13/196635
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - BAYONET COUNTER-TORQUE WRENCH
	
United States
	
2-Aug-11
	
 
	
Filed

	
14/092154
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MINIMALLY INVASIVE COUNTER-TORQUE WRENCH SYSTEM
	
United States
	
27-Nov-13
	
 
	
Filed

	
13/341599
	
8936605
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
United States
	
30-Dec-11
	
20-Jan-15
	
Granted

	
2012362196
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
Australia
	
28-Dec-12
	
 
	
Filed

	
BR112014016288-3
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
Brazil
	
28-Dec-12
	
 
	
Filed

	
2861877
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
Canada
	
28-Dec-12
	
 
	
Filed

	
12862408.7
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
European Patent Convention
	
28-Dec-12
	
 
	
Filed

	
2014-550515
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - DIRECT VERTEBRAL ROTATION TOOL AND METHOD OF USING SAME
	
Japan
	
28-Dec-12
	
 
	
Filed

	
13/026204
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL PEDICLE FIXATION ASSEMBLY AND METHOD FOR USE
	
United States
	
11-Feb-11
	
 
	
Filed

	
BR112013013756-8
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL PEDICLE FIXATION ASSEMBLY AND METHOD FOR USE
	
Brazil
	
31-Jan-12
	
 
	
Filed

	
2818916
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL PEDICLE FIXATION ASSEMBLY AND METHOD FOR USE
	
Canada
	
31-Jan-12
	
 
	
Filed

	
12744640.9
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL PEDICLE FIXATION ASSEMBLY AND METHOD FOR USE
	
European Patent Convention
	
31-Jan-12
	
 
	
Filed

	
13/341587
	
8556942
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
United States
	
30-Dec-11
	
15-Oct-13
	
Granted

	
14/053390
	
8876872
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
United States
	
14-Oct-13
	
4-Nov-14
	
Granted

	
2012362197
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
Australia
	
28-Dec-12
	
 
	
Filed

	
BR112014016292-1
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
Brazil
	
28-Dec-12
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
2862118
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
Canada
	
28-Dec-12
	
 
	
Filed

	
12862930.0
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
European Patent Convention
	
28-Dec-12
	
 
	
Filed

	
2014-550516
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - OCCIPITO-CERVICAL FIXATION ASSEMBLY AND METHOD FOR CONSTRUCTING SAME
	
Japan
	
28-Dec-12
	
 
	
Filed

	
13/341636
	
8945186
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
United States
	
30-Dec-11
	
3-Feb-15
	
Granted

	
2012362199
	
 
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
Australia
	
28-Dec-12
	
 
	
Filed

	
BR112014016280-8
	
 
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
Brazil
	
28-Dec-12
	
 
	
Filed

	
2861880
	
 
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
Canada
	
28-Dec-12
	
 
	
Filed

	
12863954.9
	
 
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
European Patent Convention
	
28-Dec-12
	
 
	
Filed

	
2014-550517
	
 
	
Blackstone Medical, Inc.
	
Blackstone - MULTI-AXIAL SPINAL CROSS CONNECTING DEVICE
	
Japan
	
28-Dec-12
	
 
	
Filed

	
13/793114
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PERCUTANEOUS BREAK OFF ROD
	
United States
	
11-Mar-13
	
 
	
Filed

	
PCT/US14/23438
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PERCUTANEOUS BREAK OFF ROD
	
Patent Cooperation Treaty
	
11-Mar-14
	
 
	
Filed

	
13/586727
	
 
	
Blackstone Medical, Inc.
	
PIVOTING SPINAL FIXATION DEVICES
	
United States
	
15-Aug-12
	
 
	
Filed

	
2013303115
	
 
	
Blackstone Medical, Inc.
	
PIVOTING SPINAL FIXATION DEVICES
	
Australia
	
26-Jul-13
	
 
	
Filed

	
BR112015003433-0
	
 
	
Blackstone Medical, Inc.
	
PIVOTING SPINAL FIXATION DEVICES
	
Brazil
	
26-Jul-13
	
 
	
Filed

	
2882155
	
 
	
Blackstone Medical, Inc.
	
PIVOTING SPINAL FIXATION DEVICES
	
Canada
	
26-Jul-13
	
 
	
Filed

	
13829995.3
	
 
	
Blackstone Medical, Inc.
	
PIVOTING SPINAL FIXATION DEVICES
	
European Patent Convention
	
26-Jul-13
	
 
	
Filed

	
13/489222
	
 
	
Blackstone Medical, Inc.
	
ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
United States
	
5-Jun-12
	
 
	
Filed

	
2013272002
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
Australia
	
29-May-13
	
 
	
Filed

	
BR112014018026-1
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
Brazil
	
29-May-13
	
 
	
Filed

	
2863048
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
Canada
	
29-May-13
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
13800586.3
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
European Patent Convention
	
29-May-13
	
 
	
Filed

	
2015-516066
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC DEVICES WITH A LOCKING MECHANISM
	
Japan
	
29-May-13
	
 
	
Filed

	
13/442762
	
8870922
	
Blackstone Medical, Inc.
	
Blackstone Medical - CLAMP FOR SPINAL CROSS CONNECTING DEVICE
	
United States
	
9-Apr-12
	
28-Oct-14
	
Granted

	
2012239873
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CLAMP FOR SPINAL CROSS CONNECTING DEVICE
	
Australia
	
9-Apr-12
	
 
	
Filed

	
BR112013025138-7
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CLAMP FOR SPINAL CROSS CONNECTING DEVICE
	
Brazil
	
9-Apr-12
	
 
	
Filed

	
2831081
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CLAMP FOR SPINAL CROSS CONNECTING DEVICE
	
Canada
	
9-Apr-12
	
 
	
Filed

	
12768267.2
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CLAMP FOR SPINAL CROSS CONNECTING DEVICE
	
European Patent Convention
	
9-Apr-12
	
 
	
Filed

	
13/474553
	
 
	
Blackstone Medical, Inc.
	
ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
United States
	
17-May-12
	
 
	
Filed

	
2013262722
	
 
	
Blackstone Medical, Inc.
	
ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
Australia
	
16-May-13
	
 
	
Filed

	
BR112014018015-6
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
Brazil
	
16-May-13
	
 
	
Filed

	
2862902
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
Canada
	
16-May-13
	
 
	
Filed

	
13790977.6
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
European Patent Convention
	
16-May-13
	
 
	
Filed

	
2015-512851
	
 
	
Blackstone Medical, Inc.
	
ANTI-BACKOUT MECHANISM FOR ORTHOPEDIC DEVICES
	
Japan
	
16-May-13
	
 
	
Filed

	
13/362932
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
United States
	
31-Jan-12
	
 
	
Filed

	
2013215075
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
Australia
	
31-Jan-13
	
 
	
Filed

	
BR112014018017-2
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
Brazil
	
31-Jan-13
	
 
	
Filed

	
2863081
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
Canada
	
31-Jan-13
	
 
	
Filed

	
13743564.0
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
European Patent Convention
	
31-Jan-13
	
 
	
Filed

	
2014-554985
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
Japan
	
31-Jan-13
	
 
	
Filed

	
13/341729
	
8998963
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
United States
	
30-Dec-11
	
7-Apr-15
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
2012362200
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
Australia
	
28-Dec-12
	
 
	
Filed

	
BR112014016284-0
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
Brazil
	
28-Dec-12
	
 
	
Filed

	
2861884
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
Canada
	
28-Dec-12
	
 
	
Filed

	
12862697.5
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
European Patent Convention
	
28-Dec-12
	
 
	
Filed

	
2014-550518
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
Japan
	
28-Dec-12
	
 
	
Filed

	
13/174731
	
8690886
	
Blackstone Medical, Inc.
	
Blackstone - POSTERIOR INSERTION INSTRUMENT FOR AN EXPANDABLE SUPPORT DEVICE
	
United States
	
30-Jun-11
	
8-Apr-14
	
Granted

	
12805195.0
	
 
	
Blackstone Medical, Inc.
	
Blackstone - POSTERIOR INSERTION INSTRUMENT FOR AN EXPANDABLE SUPPORT DEVICE
	
European Patent Convention
	
29-Jun-12
	
 
	
Filed

	
13/174701
	
8585763
	
Blackstone Medical, Inc.
	
Blackstone - SPRING DEVICE FOR LOCKING AN EXPANDABLE SUPPORT DEVICE
	
United States
	
30-Jun-11
	
19-Nov-13
	
Granted

	
12803627.4
	
 
	
Blackstone Medical, Inc.
	
Blackstone - SPRING DEVICE FOR LOCKING AN EXPANDABLE SUPPORT DEVICE
	
European Patent Convention
	
29-Jun-12
	
 
	
Filed

	
13/826040
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - SURGICAL CROSS CONNECTOR
	
United States
	
14-Mar-13
	
 
	
Filed

	
PCT/US14/24737
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - SURGICAL CROSS CONNECTOR
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
13/797227
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC PLATE AND SCREW APPARATUS
	
United States
	
12-Mar-13
	
 
	
Filed

	
PCT/US14/24703
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ORTHOPEDIC PLATE AND SCREW APPARATUS
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
13/839811
	
8800113
	
Blackstone Medical, Inc.
	
Blackstone Medical - RIGID MODULAR CONNECTOR
	
United States
	
15-Mar-13
	
12-Aug-14
	
Granted

	
13/659673
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - RETRACTOR DEVICE AND METHOD
	
United States
	
24-Oct-12
	
 
	
Filed

	
14/030546
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - RETRACTOR DEVICE AND METHOD
	
United States
	
18-Sep-13
	
 
	
Filed

	
PCT/US14/55681
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - RETRACTOR DEVICE AND METHOD
	
Patent Cooperation Treaty
	
15-Sep-14
	
 
	
Filed

	
13/767403
	
 
	
Blackstone Medical, Inc.
	
ROD ATTACHMENT ASSEMBLY FOR OCCIPITAL PLATE
	
United States
	
14-Feb-13
	
 
	
Filed

	
PCT/US14/16378
	
 
	
Blackstone Medical, Inc.
	
ROD ATTACHMENT ASSEMBLY FOR OCCIPITAL PLATE
	
Patent Cooperation Treaty
	
14-Feb-14
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
14/532688
	
 
	
Blackstone Medical, Inc.
	
ROD ATTACHMENT ASSEMBLY FOR OCCIPITAL PLATE
	
United States
	
4-Nov-14
	
 
	
Filed

	
13/802115
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PEDICLE SCREW WITH REVERSE SPIRAL CUT AND METHODS THEREOF
	
United States
	
13-Mar-13
	
 
	
Filed

	
PCT/US14/24720
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PEDICLE SCREW WITH REVERSE SPIRAL CUT AND METHODS THEREOF
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
13/842743
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - COMPOSITE SPINAL INTERBODY DEVICE AND METHOD
	
United States
	
15-Mar-13
	
 
	
Filed

	
PCT/US14/24771
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - COMPOSITE SPINAL INTERBODY DEVICE AND METHOD
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
13/843719
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - LOCKING ASSEMBLY FOR A SURGICAL DRILL BIT GUIDE
	
United States
	
15-Mar-13
	
 
	
Filed

	
13/836504
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CROSS-BRACED BILATERAL SPINAL ROD CONNECTOR
	
United States
	
15-Mar-13
	
 
	
Filed

	
PCT/US14/24794
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - CROSS-BRACED BILATERAL SPINAL ROD CONNECTOR
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
13/839946
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - HOOK WITH ROTATING SADDLE AND ROTATABLE MONO AXIAL PEDICLE SCREW
	
United States
	
15-Mar-13
	
 
	
Filed

	
PCT/US14/24810
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - HOOK WITH ROTATING SADDLE AND ROTATABLE MONO AXIAL PEDICLE SCREW
	
Patent Cooperation Treaty
	
12-Mar-14
	
 
	
Filed

	
14/145003
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - TRANSLATIONAL PEDICLE SCREW SYSTEMS
	
United States
	
31-Dec-13
	
 
	
Filed

	
13/839106
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ADJUSTABLE ROD CONNECTOR
	
United States
	
15-Mar-13
	
 
	
Filed

	
14/037011
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE SCREW SYSTEMS WITH PRESSURE CAPS HAVING BIASING MEMBERS
	
United States
	
25-Sep-13
	
 
	
Filed

	
14/059203
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MODULAR PEDICLE SCREW
	
United States
	
21-Oct-13
	
 
	
Filed

	
PCT/US14/61293
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MODULAR PEDICLE SCREW
	
Patent Cooperation Treaty
	
20-Oct-14
	
 
	
Filed

	
14/075795
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - LOCKABLE PEDICLE FASTENER
	
United States
	
8-Nov-13
	
 
	
Filed

	
PCT/US14/64316
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - LOCKABLE PEDICLE FASTENER
	
Patent Cooperation Treaty
	
6-Nov-14
	
 
	
Filed

	
14/593384
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - LOCKABLE PEDICLE FASTENER
	
United States
	
9-Jan-15
	
 
	
Filed

	
14/267753
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTEGRATED RETRACTOR-DISTRACTOR SYSTEM FOR USE WITH MODULAR BONE SCREWS
	
United States
	
1-May-14
	
 
	
Filed

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
09/641211
	
6524310
	
Blackstone Medical, Inc.
	
Blackstone Medical - SURGICAL CROSS-CONNECTING APPARATUS HAVING LOCKING LEVER 
	
United States
	
18-Aug-00
	
25-Feb-03
	
Granted

	
2001285096
	
2001285096
	
Blackstone Medical, Inc.
	
Blackstone Medical - SURGICAL CROSS-CONNECTING APPARATUS HAVING LOCKING LEVER 
	
Australia
	
20-Aug-01
	
22-Jul-05
	
Granted

	
01964217.2
	
1311199
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL CROSS-CONNECTING APPARATUS
	
France
	
20-Aug-01
	
21-Jul-10
	
Granted

	
01964217.2
	
60142622.3
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL CROSS-CONNECTING APPARATUS
	
Germany
	
20-Aug-01
	
21-Jul-10
	
Granted

	
01964217.2
	
1311199
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL CROSS-CONNECTING APPARATUS
	
Great Britain
	
20-Aug-01
	
21-Jul-10
	
Granted

	
01964217.2
	
1311199
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL CROSS-CONNECTING APPARATUS
	
Italy
	
20-Aug-01
	
21-Jul-10
	
Granted

	
01964217.2
	
1311199
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL CROSS-CONNECTING APPARATUS
	
Spain
	
20-Aug-01
	
21-Jul-10
	
Granted

	
10/676062
	
7273481
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE ASSEMBLY PROVIDED WITH SCREW LOCKING MECHANISMS
	
United States
	
1-Oct-03
	
25-Sep-07
	
Granted

	
11/901006
	
8075602
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE ASSEMBLY PROVIDED WITH SCREW LOCKING MECHANISMS
	
United States
	
14-Sep-07
	
13-Dec-11
	
Granted

	
13/316224
	
8439957
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE ASSEMBLY PROVIDED WITH SCREW LOCKING MECHANISMS
	
United States
	
9-Dec-11
	
14-May-13
	
Granted

	
13/893161
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE ASSEMBLY PROVIDED WITH SCREW LOCKING MECHANISMS
	
United States
	
13-May-13
	
 
	
Filed

	
10/891635
	
8696749
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
United States
	
15-Jul-04
	
15-Apr-14
	
Granted

	
10/423414
	
6960232
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
United States
	
25-Apr-03
	
1-Nov-05
	
Granted

	
2003228697
	
2003228697
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Australia
	
25-Apr-03
	
16-Jul-09
	
Granted

	
03726462.9
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
European Patent Convention
	
25-Apr-03
	
 
	
Filed

	
2003-587291
	
4315816
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Japan
	
25-Apr-03
	
29-May-09
	
Granted

	
09/736928
	
6413259
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE ASSEMBLY INCLUDING A SCREW RETAINING MEMBER 
	
United States
	
14-Dec-00
	
2-Jul-02
	
Granted

	
09/837624
	
6648893
	
Blackstone Medical, Inc.
	
Blackstone Medical - FACET FIXATION DEVICES
	
United States
	
18-Apr-01
	
18-Nov-03
	
Granted

	
09/414357
	
6238396
	
Blackstone Medical, Inc.
	
Blackstone Medical - SURGICAL CROSS-CONNECTING APPARATUS AND RELATED METHODS
	
United States
	
7-Oct-99
	
29-May-01
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
09/751099
	
6540748
	
Blackstone Medical, Inc.
	
Blackstone Medical - A SURGICAL SCREW SYSTEM AND METHOD OF USE
	
United States
	
28-Dec-00
	
1-Apr-03
	
Granted

	
10/968586
	
7776093
	
Blackstone Medical, Inc.
	
Blackstone Medical - VERTEBRAL BODY REPLACEMENT APPARATUS AND METHOD
	
United States
	
19-Oct-04
	
17-Aug-10
	
Granted

	
2006-536772
	
5175049
	
Blackstone Medical, Inc.
	
Blackstone Medical - VERTEBRAL BODY REPLACEMENT APPARATUS AND METHOD
	
Japan
	
19-Oct-04
	
11-Jan-13
	
Granted

	
11/092273
	
8246660
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
United States
	
29-Mar-05
	
21-Aug-12
	
Granted

	
2005330020
	
2005330020
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Australia
	
29-Mar-05
	
14-May-09
	
Granted

	
2008-503999
	
4819871
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Japan
	
29-Mar-05
	
9-Sep-11
	
Granted

	
05730243.2
	
1868517
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
France
	
29-Mar-05
	
2-Jan-13
	
Granted

	
05730243.2
	
602005037710.7
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Germany
	
29-Mar-05
	
2-Jan-13
	
Granted

	
05730243.2
	
1868517
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Great Britain
	
29-Mar-05
	
2-Jan-13
	
Granted

	
05730243.2
	
1868517
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Italy
	
29-Mar-05
	
2-Jan-13
	
Granted

	
05730243.2
	
1868517
	
Blackstone Medical, Inc.
	
Blackstone Medical - BONE PLATE AND METHOD FOR USING BONE PLATE
	
Spain
	
29-Mar-05
	
2-Jan-13
	
Granted

	
2005280286
	
2005280286
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Australia
	
24-Aug-05
	
7-Jan-10
	
Granted

	
05789259.8
	
1799135
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Great Britain
	
24-Aug-05
	
4-Mar-15
	
Granted

	
05789259.8
	
1799135
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
France
	
24-Aug-05
	
4-Mar-15
	
Granted

	
05789259.8
	
602005045975.8
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Germany
	
24-Aug-05
	
4-Mar-15
	
Granted

	
05789259.8
	
1799135
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Spain
	
24-Aug-05
	
4-Mar-15
	
Granted

	
05789259.8
	
502015000014708
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Italy
	
24-Aug-05
	
4-Mar-15
	
Granted

	
12/752635
	
8709051
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
United States
	
1-Apr-10
	
29-Apr-14
	
Granted

	
14/263757
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
United States
	
28-Apr-14
	
 
	
Filed

	
11/388666
	
8062339
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
United States
	
24-Mar-06
	
22-Nov-11
	
Granted

	
2006229952
	
2006229952
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Australia
	
24-Mar-06
	
6-Aug-09
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
06739490.8
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
European Patent Convention
	
24-Mar-06
	
 
	
Filed

	
2008-503216
	
4976371
	
Blackstone Medical, Inc.
	
Blackstone Medical - MULTI-AXIAL CONNECTION SYSTEM
	
Japan
	
24-Mar-06
	
20-Apr-12
	
Granted

	
11/228117
	
7662154
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
United States
	
16-Sep-05
	
16-Feb-10
	
Granted

	
2006213976
	
2006213976
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Australia
	
14-Sep-06
	
6-Dec-12
	
Granted

	
06120789.0
	
1764049
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
France
	
15-Sep-06
	
28-Oct-09
	
Granted

	
06120789.0
	
1764049
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Germany
	
15-Sep-06
	
28-Oct-09
	
Granted

	
06120789.0
	
1764049
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Great Britain
	
15-Sep-06
	
28-Oct-09
	
Granted

	
06120789.0
	
1764049
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Italy
	
15-Sep-06
	
28-Oct-09
	
Granted

	
2006-251104
	
4976088
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Japan
	
15-Sep-06
	
20-Apr-12
	
Granted

	
06120789.0
	
1764049
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTERIOR CERVICAL PLATING SYSTEM 
	
Spain
	
15-Sep-06
	
28-Oct-09
	
Granted

	
11/534313
	
8388685
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
United States
	
22-Sep-06
	
5-Mar-13
	
Granted

	
2006295462
	
2006295462
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Australia
	
22-Sep-06
	
24-Nov-11
	
Granted

	
06815243.8
	
2051668
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
France
	
22-Sep-06
	
29-Oct-14
	
Granted

	
06815243.8
	
2051668
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Spain
	
22-Sep-06
	
29-Oct-14
	
Granted

	
06815243.8
	
602006043528.2
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Germany
	
22-Sep-06
	
29-Oct-14
	
Granted

	
06815243.8
	
2051668
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Great Britain
	
22-Sep-06
	
29-Oct-14
	
Granted

	
06815243.8
	
2051668
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Switzerland
	
22-Sep-06
	
29-Oct-14
	
Granted

	
2008-532443
	
4740337
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
Japan
	
22-Sep-06
	
13-May-11
	
Granted

	
13/559131
	
8518116
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
United States
	
26-Jul-12
	
27-Aug-13
	
Granted

	
14/010190
	
8734518
	
Blackstone Medical, Inc.
	
Blackstone Medical - ARTIFICIAL INTERVERTEBRAL DISC
	
United States
	
26-Aug-13
	
27-May-14
	
Granted

	
11/608156
	
7575581
	
Blackstone Medical, Inc.
	
Blackstone Medical - DEVICE FOR HOLDING AND INSERTING ONE OR MORE COMPONENTS OF A PEDICLE SCREW ASSEMBLY
	
United States
	
7-Dec-06
	
18-Aug-09
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
2007223928
	
2007223928
	
Blackstone Medical, Inc.
	
Blackstone Medical - SYSTEM AND METHOD FOR DYNAMIC STABILIZATION OF THE SPINE
	
Australia
	
8-Mar-07
	
12-Jan-12
	
Granted

	
2008-558367
	
4933567
	
Blackstone Medical, Inc.
	
Blackstone Medical - SYSTEM AND METHOD FOR DYNAMIC STABILIZATION OF THE SPINE
	
Japan
	
8-Mar-07
	
24-Feb-12
	
Granted

	
2007238578
	
2007238578
	
Blackstone Medical, Inc.
	
Blackstone Medical - PERCUTANEOUS FACET FUSION DEVICE AND METHOD
	
Australia
	
16-Apr-07
	
27-Oct-11
	
Granted

	
07755573.8
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PERCUTANEOUS FACET FUSION DEVICE AND METHOD
	
European Patent Convention
	
16-Apr-07
	
 
	
Filed

	
2009-505518
	
5139418
	
Blackstone Medical, Inc.
	
Blackstone Medical - PERCUTANEOUS FACET FUSION DEVICE AND METHOD
	
Japan
	
16-Apr-07
	
22-Nov-12
	
Granted

	
11/992206
	
8241332
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
United States
	
1-Sep-06
	
14-Aug-12
	
Granted

	
13/467914
	
8403960
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
United States
	
9-May-12
	
26-Mar-13
	
Granted

	
13/850290
	
8979899
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
United States
	
25-Mar-13
	
17-Mar-15
	
Granted

	
14/589661
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - INTERVERTEBRAL DISC PROSTHESIS AND METHOD
	
United States
	
5-Jan-15
	
 
	
Filed

	
14/663651
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PEDICLE SCREW WITH REVERSE SPIRAL CUT AND METHODS THEREOF
	
United States
	
20-Mar-15
	
 
	
Filed

	
14/679827
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - PLATE/SCREW LOCKING MECHANISM DEVICES, SYSTEMS AND METHODS
	
United States
	
6-Apr-15
	
 
	
Filed

	
2015202222
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ANTI-SPLAY APPARATUS
	
Australia
	
8-Feb-11
	
 
	
Filed

	
14/685273
	
 
	
Blackstone Medical, Inc.
	
Blackstone Medical - ADJUSTABLE ROD CONNECTOR
	
United States
	
13-Apr-15
	
 
	
Filed

	
09/438749
	
6364824
	
Orthofix, Inc.
	
AMEI - STIMULATING CELL RECEPTOR ACTIVITY USING ELECTROMAGNETIC FIELDS
	
United States
	
11-Nov-99
	
2-Apr-02
	
Granted

 

	
2010257367
	
2010257367
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Australia
	
1-Sep-06
	
24-May-12
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Belgium
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Denmark
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Finland
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
France
	
1-Sep-06
	
9-Nov-11
	
Granted

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Patent 
No.
	
Current Owner
	
Title
	
Country
	
Application Date
	
Grant Date
	
Status

	
06784041.3
	
602006025741.4
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Germany
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Great Britain
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Greece
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Ireland
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Italy
	
1-Sep-06
	
9-Nov-11
	
Granted

	
2008-531043
	
4849694
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Japan
	
1-Sep-06
	
28-Oct-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Liechtenstein
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Netherlands
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Poland
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Portugal
	
1-Sep-06
	
9-Nov-11
	
Granted

	
06784041.3
	
1940305
	
Blackstone Medical, Inc.
	
Blackstone Medical - DISTANCE-KEEPING INTER-PROCESS IMPLANT 
	
Spain
	
1-Sep-06
	
9-Nov-11
	
Granted

b)Licensed Patents :

None.

c)Trademarks

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
74701365
	
1981113
	
AMEI Technologies Inc.
	
1-800-BONEFIX
	
United States of America
	
14-Jul-95
	
18-Jun-96
	
Registered

	
750590
	
TMA449580
	
AMEI Technologies Inc.
	
AME & Design
	
Canada
	
23-Mar-94
	
3-Nov-95
	
Registered

	
886637
	
TMA535437
	
AMEI Technologies Inc.
	
CERVICAL-STIM
	
Canada
	
6-Aug-98
	
23-Oct-00
	
Registered

	
884122
	
884122
	
AMEI Technologies Inc.
	
CERVICAL-STIM
	
CTM
	
22-Jul-98
	
17-Nov-99
	
Registered

	
H10-63487
	
4399290
	
AMEI Technologies Inc.
	
CERVICAL-STIM
	
Japan
	
28-Jul-98
	
14-Jul-00
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
75438792
	
2265742
	
AMEI Technologies Inc.
	
CERVICAL-STIM
	
United States of America
	
23-Feb-98
	
27-Jul-99
	
Registered

	
78531522
	
3103333
	
AMEI Technologies Inc.
	
CONTOURS VPS
	
United States of America
	
13-Dec-04
	
13-Jun-06
	
Registered

	
78507012
	
3094296
	
AMEI Technologies Inc.
	
EIGHT-PLATE GUIDED GROWTH SYSTEM & Design
	
United States of America
	
27-Oct-04
	
16-May-06
	
Registered

	
75639824
	
2592020
	
AMEI Technologies Inc.
	
EZBRACE
	
United States of America
	
12-Feb-99
	
9-Jul-02
	
Registered

	
78629383
	
3090036
	
AMEI Technologies Inc.
	
GOTFRIED PC.C.P & Design
	
United States of America
	
13-May-05
	
9-May-06
	
Registered

	
76559664
	
2991110
	
AMEI Technologies Inc.
	
I ISKD & Design
	
United States of America
	
31-Oct-03
	
6-Sep-05
	
Registered

	
76539759
	
3029777
	
AMEI Technologies Inc.
	
M2 MULTIPLANAR MINIRAIL & Design
	
United States of America
	
25-Aug-03
	
13-Dec-05
	
Registered

	
78607031
	
3202786
	
AMEI Technologies Inc.
	
OSTEOMAX
	
United States of America
	
12-Apr-05
	
23-Jan-07
	
Registered

	
75430442
	
2269876
	
AMEI Technologies Inc.
	
OSTEO-TITE
	
United States of America
	
6-Feb-98
	
10-Aug-99
	
Registered

	
77967103
	
4365029
	
AMEI Technologies Inc.
	
PHOENIX
	
United States of America
	
24-Mar-10
	
9-Jul-13
	
Registered

	
2646432
	
2256630
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Argentina
	
20-Jan-06
	
6-Nov-08
	
Registered

	
619612
	
619612
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Australia
	
31-Dec-93
	
31-Dec-93
	
Registered

	
820362
	
544186
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Benelux
	
17-Jan-94
	
1-Oct-94
	
Registered

	
1072273
	
770936
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Benelux
	
22-Feb-05
	
10-Aug-05
	
Registered

	
828089400
	
828089400
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Brazil
	
18-Jan-06
	
1-Apr-08
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
1015519
	
TMA542417
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Canada
	
13-May-99
	
15-Mar-01
	
Registered

	
94502900
	
94502900
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
France
	
24-Jan-94
	
24-Jan-94
	
Registered

	
A56142/10WZ
	
2092183
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Germany
	
11-Jan-94
	
23-Feb-95
	
Registered

	
H10-10059
	
4411424
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
Japan
	
9-Feb-98
	
25-Aug-00
	
Registered

	
1557493
	
1557943
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
United Kingdom
	
31-Dec-93
	
3-Nov-95
	
Registered

	
74209479
	
1701625
	
AMEI Technologies Inc.
	
PHYSIO-STIM
	
United States of America
	
4-Oct-91
	
21-Jul-92
	
Registered

	
619614
	
619614
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
Australia
	
31-Dec-93
	
31-Dec-93
	
Registered

	
820361
	
544185
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
Benelux
	
17-Jan-94
	
1-Oct-94
	
Registered

	
1072274
	
770937
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
Benelux
	
22-Feb-05
	
10-Aug-05
	
Registered

	
750589
	
TMA446011
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
Canada
	
23-Mar-94
	
11-Aug-95
	
Registered

	
94502901
	
94502901
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
France
	
24-Jan-94
	
24-Jan-94
	
Registered

	
A56143/10WZ
	
2092184
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
Germany
	
11-Jan-94
	
23-Feb-95
	
Registered

	
1557944
	
1557944
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
United Kingdom
	
31-Dec-93
	
31-Dec-93
	
Registered

	
73552537
	
1384143
	
AMEI Technologies Inc.
	
SPINAL-STIM
	
United States of America
	
8-Aug-85
	
25-Feb-86
	
Registered

	
2000-124890
	
4513042
	
AMEI Technologies Inc.
	
THE HEALING ADVANTAGE
	
Japan
	
17-Nov-00
	
12-Oct-01
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
76058155
	
2789136
	
AMEI Technologies Inc.
	
THE HEALING ADVANTAGE
	
United States of America
	
26-May-00
	
2-Dec-03
	
Registered

	
5795281
	
5795281
	
Blackstone Medical, Inc.
	
ADVENT
	
CTM
	
29-Mar-07
	
7-Aug-08
	
Registered

	
54627/2007
	
566293
	
Blackstone Medical, Inc.
	
ADVENT
	
Switzerland
	
2-May-07
	
4-Jan-08
	
Registered

	
1246459
	
TMA789981
	
Blackstone Medical, Inc.
	
ALLOQUENT
	
Canada
	
8-Feb-05
	
8-Feb-11
	
Registered

	
78415750
	
3091181
	
Blackstone Medical, Inc.
	
ALLOQUENT
	
United States of America
	
10-May-04
	
9-May-06
	
Registered

	
76552455
	
3101182
	
Blackstone Medical, Inc.
	
ASCENT
	
United States of America
	
26-Sep-03
	
6-Jun-06
	
Registered

	
85609862
	
4617942
	
Blackstone Medical, Inc.
	
AZURE
	
United States of America
	
26-Apr-12
	
7-Oct-14
	
Registered

	
75233941
	
2347454
	
Blackstone Medical, Inc.
	
BLACKSTONE
	
United States of America
	
30-Jan-97
	
2-May-00
	
Registered

	
85239444
	
4617817
	
Blackstone Medical, Inc.
	
CENTURION
	
United States of America
	
10-Feb-11
	
7-Oct-14
	
Registered

	
85261533
	
4518075
	
Blackstone Medical, Inc.
	
COLLAGE
	
United States of America
	
8-Mar-11
	
22-Apr-14
	
Registered

	
1246461
	
TMA789978
	
Blackstone Medical, Inc.
	
CONSTRUX
	
Canada
	
8-Feb-05
	
8-Feb-11
	
Registered

	
78415732
	
3177831
	
Blackstone Medical, Inc.
	
CONSTRUX
	
United States of America
	
10-May-04
	
28-Nov-06
	
Registered

	
1530659
	
1530659
	
Blackstone Medical, Inc.
	
CONSTRUX MINI PTC PEEK-TI COMPOSITE SPACER SYSTEM
	
Australia
	
11-Dec-12
	
29-May-13
	
Registered

	
11416567
	
11416567
	
Blackstone Medical, Inc.
	
CONSTRUX MINI PTC PEEK-TI COMPOSITE SPACER SYSTEM
	
CTM
	
11-Dec-12
	
9-May-13
	
Registered

	
2921969
	
2358910
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Argentina
	
12-Jun-09
	
16-Apr-10
	
Registered

	
1303819
	
1303819
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Australia
	
12-Jun-09
	
19-Oct-09
	
Registered

	
901720046
	
901720046
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Brazil
	
12-Jun-09
	
8-May-12
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
1504564
	
TMA890308
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Canada
	
19-Nov-10
	
19-Nov-14
	
Registered

	
61363
	
394764
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Colombia
	
12-Jun-09
	
29-Jan-10
	
Registered

	
8359622
	
8359622
	
Blackstone Medical, Inc.
	
FIREBIRD
	
CTM
	
12-Jun-09
	
1-Mar-10
	
Registered

	
2009-044278
	
5269179
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Japan
	
12-Jun-09
	
2-Oct-09
	
Registered

	
1012701
	
1136677
	
Blackstone Medical, Inc.
	
FIREBIRD
	
Mexico
	
12-Jun-09
	
21-Dec-09
	
Registered

	
77632207
	
3948229
	
Blackstone Medical, Inc.
	
FIREBIRD
	
United States of America
	
12-Dec-08
	
19-Apr-11
	
Registered

	
3048424
	
2517738
	
Blackstone Medical, Inc.
	
FORZA
	
Argentina
	
24-Nov-10
	
10-Aug-12
	
Registered

	
1395916
	
1395916
	
Blackstone Medical, Inc.
	
FORZA
	
Australia
	
23-Nov-10
	
11-Jan-12
	
Registered

	
903214091
	
 
	
Blackstone Medical, Inc.
	
FORZA
	
Brazil
	
13-Dec-10
	
 
	
Pending

	
1504974
	
 
	
Blackstone Medical, Inc.
	
FORZA
	
Canada
	
23-Nov-10
	
 
	
Pending

	
9155697
	
9155697
	
Blackstone Medical, Inc.
	
FORZA
	
China
	
28-Feb-11
	
7-May-12
	
Registered

	
147850
	
432028
	
Blackstone Medical, Inc.
	
FORZA
	
Colombia
	
24-Nov-10
	
24-Aug-11
	
Registered

	
9545311
	
9545311
	
Blackstone Medical, Inc.
	
FORZA
	
CTM
	
23-Nov-10
	
10-May-11
	
Registered

	
2010-091156
	
5639625
	
Blackstone Medical, Inc.
	
FORZA
	
Japan
	
24-Nov-10
	
27-Dec-13
	
Registered

	
2010-060331
	
938824
	
Blackstone Medical, Inc.
	
FORZA
	
Korea - Republic of (South)
	
23-Nov-10
	
26-Oct-12
	
Registered

	
1138239
	
1211656
	
Blackstone Medical, Inc.
	
FORZA
	
Mexico
	
29-Nov-10
	
13-Apr-11
	
Registered

	
85182848
	
4584703
	
Blackstone Medical, Inc.
	
FORZA
	
United States of America
	
22-Nov-10
	
12-Aug-14
	
Registered

	
76626832
	
3294440
	
Blackstone Medical, Inc.
	
HALLMARK
	
United States of America
	
4-Jan-05
	
18-Sep-07
	
Registered

	
3015182
	
2446922
	
Blackstone Medical, Inc.
	
INSWING
	
Argentina
	
8-Jul-10
	
24-Jun-11
	
Registered

	
830681841
	
830681841
	
Blackstone Medical, Inc.
	
INSWING
	
Brazil
	
13-Jul-10
	
9-Apr-13
	
Registered

	
9228818
	
9228818
	
Blackstone Medical, Inc.
	
INSWING
	
CTM
	
7-Jul-10
	
24-Dec-10
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
1580681
	
1580681
	
Blackstone Medical, Inc.
	
LONE STAR
	
Australia
	
17-Sep-13
	
14-Apr-14
	
Registered

	
840647956
	
 
	
Blackstone Medical, Inc.
	
LONE STAR
	
Brazil
	
19-Sep-13
	
 
	
Pending

	
12144036
	
12144036
	
Blackstone Medical, Inc.
	
LONE STAR
	
CTM
	
16-Sep-13
	
7-Feb-14
	
Registered

	
61228/2013
	
654342
	
Blackstone Medical, Inc.
	
LONE STAR
	
Switzerland
	
16-Sep-13
	
5-Feb-14
	
Registered

	
86064135
	
4672668
	
Blackstone Medical, Inc.
	
LONESTAR
	
United States of America
	
13-Sep-13
	
13-Jan-15
	
Registered

	
86552235
	
 
	
Blackstone Medical, Inc.
	
MISCELLANEOUS DESIGN (Triangular Logo)
	
United States of America
	
3-Mar-15
	
 
	
Pending

	
76627654
	
3163236
	
Blackstone Medical, Inc.
	
NEWBRIDGE
	
United States of America
	
12-Jan-05
	
24-Oct-06
	
Registered

	
78415714
	
3283488
	
Blackstone Medical, Inc.
	
NGAGE
	
United States of America
	
10-May-04
	
21-Aug-07
	
Registered

	
78932408
	
3865997
	
Blackstone Medical, Inc.
	
ORIGEN DBM
	
United States of America
	
18-Jul-06
	
19-Oct-10
	
Registered

	
78880509
	
3888138
	
Blackstone Medical, Inc.
	
PILLAR
	
United States of America
	
10-May-06
	
7-Dec-10
	
Registered

	
78880515
	
3905799
	
Blackstone Medical, Inc.
	
PROVIEW
	
United States of America
	
10-May-06
	
11-Jan-11
	
Registered

	
1576203
	
1576203
	
Blackstone Medical, Inc.
	
QUADRX
	
Australia
	
22-Aug-13
	
29-Jan-14
	
Registered

	
840618670
	
 
	
Blackstone Medical, Inc.
	
QUADRX
	
Brazil
	
22-Aug-13
	
 
	
Pending

	
12084216
	
12084216
	
Blackstone Medical, Inc.
	
QUADRX
	
CTM
	
22-Aug-13
	
7-Sep-14
	
Registered

	
60243/2013
	
654478
	
Blackstone Medical, Inc.
	
QUADRX
	
Switzerland
	
22-Aug-13
	
16-Jan-14
	
Registered

	
85971040
	
4685448
	
Blackstone Medical, Inc.
	
QUADRX
	
United States of America
	
26-Jun-13
	
10-Feb-15
	
Registered

	
78935508
	
4088522
	
Blackstone Medical, Inc.
	
RELIANT
	
United States of America
	
23-Jul-06
	
17-Jan-12
	
Registered

	
1580677
	
1580677
	
Blackstone Medical, Inc.
	
SKYHAWK
	
Australia
	
17-Sep-13
	
14-Apr-14
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
840647972
	
 
	
Blackstone Medical, Inc.
	
SKYHAWK
	
Brazil
	
19-Sep-13
	
 
	
Pending

	
12143889
	
12143889
	
Blackstone Medical, Inc.
	
SKYHAWK
	
CTM
	
16-Sep-13
	
7-Feb-14
	
Registered

	
61227/2013
	
654341
	
Blackstone Medical, Inc.
	
SKYHAWK
	
Switzerland
	
13-Sep-13
	
5-Feb-14
	
Registered

	
86064122
	
4685560
	
Blackstone Medical, Inc.
	
SKYHAWK
	
United States of America
	
13-Sep-13
	
10-Feb-15
	
Registered

	
78752413
	
3162338
	
Blackstone Medical, Inc.
	
TRINITY
	
United States of America
	
11-Nov-05
	
24-Oct-06
	
Registered

	
78751479
	
3162329
	
Blackstone Medical, Inc.
	
TRINITY & Design
	
United States of America
	
10-Nov-05
	
24-Oct-06
	
Registered

	
905241398
	
 
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
Brazil
	
5-Sep-12
	
 
	
Pending

	
905241673
	
 
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
Brazil
	
5-Sep-12
	
 
	
Pending

	
1592359
	
 
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
Canada
	
31-Aug-12
	
 
	
Pending

	
1305176
	
1338525
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
Mexico
	
31-Aug-12
	
13-Dec-12
	
Registered

	
1305175
	
1334219
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
Mexico
	
31-Aug-12
	
29-Nov-12
	
Registered

	
85717101
	
4589285
	
Blackstone Medical, Inc.
	
TRINITY ELITE
	
United States of America
	
30-Aug-12
	
19-Aug-14
	
Registered

	
77981853
	
4214388
	
Blackstone Medical, Inc.
	
TRINITY EVOLUTION
	
United States of America
	
12-Dec-08
	
25-Sep-12
	
Registered

	
77981854
	
4214389
	
Blackstone Medical, Inc.
	
TRINITY EVOLUTION & Design
	
United States of America
	
12-Dec-08
	
25-Sep-12
	
Registered

	
76625481
	
3242795
	
Blackstone Medical, Inc.
	
UNITY
	
United States of America
	
23-Dec-04
	
15-May-07
	
Registered

	
76635940
	
3261640
	
Blackstone Medical, Inc.
	
UNITY 51
	
United States of America
	
13-Apr-05
	
10-Jul-07
	
Registered

	
77025991
	
3278822
	
Blackstone Medical, Inc.
	
UNITY LX
	
United States of America
	
20-Oct-06
	
14-Aug-07
	
Registered

	
85652295
	
4656639
	
Blackstone Medical, Inc.
	
VERSASHIELD & Design
	
United States of America
	
14-Jun-12
	
16-Dec-14
	
Registered

Schedule 3.05

4810-9421-6998v.3 58437-4

 

	
Application No.
	
Registration No.
	
Owner
	
Trademark
	
Country
	
Application Date
	
Registration Date
	
Status

	
86/552540
	
 
	
Blackstone Medical, Inc.
	
JANUS
	
United States of America
	
4-March-15
	
 
	
Pending

	
86/011745
	
 
	
Blackstone Medical, Inc.
	
QUADRX L
	
United States of America
	
16-July-13
	
 
	
Pending

	
86/011695
	
 
	
Blackstone Medical, Inc.
	
QLIF- QUADRX LATERAL INTERBODY FUSION SYSTEM
	
United States of America
	
16-July-13
	
 
	
Pending

d)Copyrights

None.

 

 

 

Schedule 3.05

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.06

Disclosed Matters

None.

 

 

 

Schedule 3.06

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.07

Compliance with Health Care Laws

Exhibits to Form 8-K/A filed June 7, 20121:

	
 
	
·
	
Corporate Integrity Agreement, entered into on June 6, 2012, between the Office of Inspector General of the Department of Health and Human Services and Orthofix International N.V.

	
 
	
·
	
Settlement Agreement, entered into on June 6, 2012, among the United States of America, acting through the United States Department of Justice and on behalf of the Office of Inspector General of the Department of Health and Human Services, the TRICARE Management Activity, through its General Counsel, the Office of Personnel Management , in its capacity as administrator of the Federal Employees Health Benefits Program, the United States Department of Veteran Affairs, Orthofix International N.V. and relator Jeffrey J. Bierman.

Exhibit to Form 8-K filed October 30, 20122:

	
 
	
·
	
Settlement Agreement, entered into on October 29, 2012, among the United States of America, acting through the U.S. Department of Justice and on behalf of the Office of Inspector General of the Department of Health and Human Services; the TRICARE Management Activity, through its General Counsel; the Office of Personnel Management, in its capacity as administrator of the Federal Employees Health Benefits Program; the United States Department of Veteran Affairs; Blackstone Medical, Inc.; and Relator Susan Hutcheson and former co-Relator Philip Brown.

Exhibit to Form 8-K filed December 19, 20123:

	
 
	
·
	
Amended Plea Agreement entered into on December 14, 2012, among the United States Attorney for the District of Massachusetts, the Department of Justice and Orthofix Inc.

 

1 See http://www.sec.gov/Archives/edgar/data/884624/000110465912042374/0001104659-12-042374-index.htm 

2 See http://www.sec.gov/Archives/edgar/data/884624/000119312512441706/0001193125-12-441706-index.htm 

3 See http://www.sec.gov/Archives/edgar/data/884624/000119312512508575/0001193125-12-508575-index.htm

 

 

Schedule 3.07

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.12

Material Agreements

	
 
	
1.
	
Matrix Commercialization Collaboration Agreement, entered into July 24, 2008, as amended by Amendment No. 1 to Matrix Commercialization Collaboration Agreement, dated as of December 15, 2010, Amendment No. 2 to Matrix Commercialization Collaboration Agreement, dated as of January 9, 2012, Amendment No. 3 to Matrix Commercialization Collaboration Agreement, dated as of July 1, 2013, and Amendment No. 4 to Matrix Commercialization Collaboration Agreement, dated as of April 1, 2014, by and between Orthofix Holdings, Inc. and Musculoskeletal Transplant Foundation, Inc.

	
 
	
2.
	
Amended Plea Agreement entered into on December 14, 2012, among the United States Attorney for the District of Massachusetts, the Department of Justice and Orthofix Inc.

	
 
	
3.
	
Corporate Integrity Agreement, entered into on June 6, 2012, between the Office of Inspector General of the Department of Health and Human Services and Orthofix International N.V.

 

 

Schedule 3.12

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.14

Insurance

 

Insurance Coverages of the Company and U.S. Loan Parties (* denotes coverages with Victory Medical Limited as additional insured)

 

	
Policy
	
Policy Period
	
Company

	
Commercial Property
	
9/7/2014 – 9/7/2015
	
Affiliated FM Insurance Company

	
Commercial General Liability*
	
9/7/2014 – 9/7/2015
	
Continental Casualty Company

	
Automobile Liability*
	
9/7/2014 – 9/7/2015
	
Pennsylvania Manufacturers Association Insurance Company

	
Workers Compensation and Employers’ Liability
	
9/7/2014 – 9/7/2015
	
Pennsylvania Manufacturers Association Insurance Company

	
Commercial General Liability Umbrella
	
9/7/2014 – 9/7/2015
	
Continental Casualty Company

	
Cargo
	
9/7/2014 – 9/7/2015
	
Falvey Cargo Underwriting, Ltd.

	
Products Liability
	
9/7/2014 – 9/7/2015
	
Columbia Casualty Company

	
First Layer Excess Product Liability
	
9/7/2014 – 9/7/2015
	
North American Capacity Insurance Co.

	
Second Layer Excess Product Liability
	
9/7/2014 – 9/7/2015
	
Federal Insurance Company

	
Crime
	
9/7/2014 – 9/7/2015
	
Travelers Casualty and Surety Company of America

	
Employment Practices Liability
	
9/7/2014 – 9/7/2015
	
Lloyds of London Syndicate 1919

	
Kidnap & Ransom
	
9/7/2014 – 9/7/2015
	
Travelers Casualty and Surety Company of America

	
Cyber/Privacy Liability
	
9/7/2014 – 9/7/2015
	
Lloyds of London Syndicate 1919

	
Employed Lawyer’s Liability
	
9/7/2014 – 9/7/2015
	
Executive Risk Indemnity Inc.

	
Fiduciary Liability
	
9/7/2014 – 9/7/2015
	
Travelers Casualty and Surety Company of America

Schedule 3.14

4810-9421-6998v.3 58437-4

 

	
Errors & Omissions
	
9/7/2014 – 9/7/2015
	
Lloyds of London Syndicate 1919

	
Directors & Officers Liability
	
9/7/2014 – 9/7/2015
	
Travelers Casualty and Surety Company of America

	
First Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
Allied World National Assurance Company

	
Second Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
Hudson Insurance Company

	
Third Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
Federal Insurance Company

	
Fourth Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
Twin City Fire Insurance Company

	
Fifth Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
Illinois National Insurance Company

	
Sixth Layer Excess Directors & Officers
	
9/7/2014 – 9/7/2015
	
XL Specialty Insurance Company

	
Seventh Layer Directors & Officers Liability (Side A)
	
9/7/2014 – 9/7/2015
	
Lloyd’s of London

	
Directors & Officers Liability (Europe)
	
9/7/2014 – 9/7/2015
	
Travelers Insurance Company Ltd.

	
 
	
 
	
 

	
Insurance Coverages of the UK Loan Parties: None. To be provided to the Administrative Agent after the Effective Date. 

 

 

Schedule 3.14

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.15

Capitalization and Subsidiaries

 

	
Entity Name
	
Jurisdiction of Organization
	
Entity Type
	
Issued and Outstanding Equity Interests
	
Shareholder (or Equivalent)

	
Orthofix Australia Pty Limited
	
Australia
	
Proprietary Company, Limited by Shares
	
10 ordinary shares of Aus $1 each
	
Orthofix International N.V. (100%)

	
Orthofix do Brasil Ltda.
	
Brazil
	
Sociedade Limitada
	
187,290 shares at R$100.00 unit price
	
Orthofix International N.V. (99.97%);

Orthofix International B.V. (0.03%)

	
Novamedix Distribution Limited
	
Cyprus
	
Private Limited Company
	
Common Stock: 4,000 shares
	
Orthofix International N.V. (100%)

	
Orthofix S.A.
	
France
	
Société Anonyme
	
Common Stock: 879,986 shares
	
Orthofix International B.V. (100%)

	
Orthofix GmbH
	
Germany
	
Gesellschaft mit beschränkter Haftung
	
3 shares of membership interests
	
Orthofix International B.V. (100%)

	
Orthofix Spine GmbH
	
Germany
	
Gesellschaft mit beschränkter Haftung
	
1 share of membership interests
	
Blackstone Medical, Inc. (100%)

 

	
Orthofix S.r.l.
	
Italy
	
Società a Responsabilità Limitata
	
100 quotas

 

 
	
Orthofix International B.V. (99%);

Orthofix International N.V. (1%)

	
Promeca, S.A. de C.V. (in liquidation)
	
Mexico
	
Sociedad Anónima de Capital Variable
	
Fixed Capital Series

100,000 shares
	
Orthofix International N.V. (99.99%);

Orthofix International B.V. (1 share)

	
Orthofix II B.V.
	
Netherlands
	
Besloten Vennootschap met Beperkte Aansprakelijkheid
	
18,000 ordinary shares
	
Orthofix International B.V. (100%)

	
Orthofix International B.V.
	
Netherlands
	
Besloten Vennootschap met Beperkte Aansprakelijkheid
	
3,118,860 ordinary shares
	
Orthofix International N.V. (100%)

	
Implantes y Sistemas Medicos, Inc.
	
Puerto Rico
	
Corporation
	
Class A Voting Common Stock: 100 shares
	
Orthofix Inc. (100%)

 

	
Inter Medical Supplies Limited (Seychelles)
	
Seychelles
	
Private Limited Company
	
5,000 ordinary shares
	
Orthofix International N.V. (100%)

	
Orthofix AG
	
Switzerland
	
Aktiengesellschaft
	
100 registered shares
	
Orthofix International B.V. (100%)

	
Axipac Limited
	
United Kingdom
	
Private Limited Company
	
2 ordinary shares of £1.00
	
Orthofix Limited (100%)

	
Colgate Medical Limited
	
United Kingdom
	
Private Limited Company
	
487,881 ordinary shares of £1.00

 

100,000 ordinary A shares of £0.100
	
Orthofix Limited (100%)

	
D J Colgate Medical Limited
	
United Kingdom
	
Private Limited Company
	
2 ordinary shares of £1.00
	
Orthofix Limited (100%)

	
Orthofix Limited 
	
United Kingdom
	
Private Limited Company
	
Common Stock: 10,000 shares 
	
Orthofix II B.V. (100%)

	
Novamedix Services Limited
	
United Kingdom
	
Private Limited Company
	
27,201 ordinary-A Shares of 1.00
	
Orthofix International N.V. (100%)

Schedule 3.15

4810-9421-6998v.3 58437-4

 

	
Entity Name
	
Jurisdiction of Organization
	
Entity Type
	
Issued and Outstanding Equity Interests
	
Shareholder (or Equivalent)

	
Orthofix (GB) Limited 
	
United Kingdom
	
Private Limited Company
	
880,000 ordinary shares of £1.00
	
Orthofix International B.V. (100%)

	
Orthofix UK Limited
	
United Kingdom
	
Private Limited Company
	
3 Ordinary shares of $1.00
	
Swiftsure Medical Limited (100%)

	
Orthosonics Limited
	
United Kingdom
	
Private Limited Company
	
Common Stock:

120 shares
	
Orthofix International N.V. (100%)

	
Swiftsure Medical Limited
	
United Kingdom
	
Private Limited Company
	
Common Stock:

35,867,016 ordinary shares of $1.00
	
Orthofix Holdings, Inc. (100%)

	
Victory Medical Limited
	
United Kingdom
	
Private Limited Company
	
4,000,001 ordinary shares of $1.00
	
Colgate Medical Limited (100%)

 

	
AMEI Technologies Inc.
	
United States (Delaware)
	
Corporation
	
Common Stock: 1,000 shares
	
Orthofix Inc. (100%)

	
Blackstone Medical, Inc. 
	
United States (Massachusetts)
	
Corporation
	
Class A Voting Common Stock: 8,000,000 shares

Class B Nonvoting Common Stock: 19,000,000 shares
	
Orthofix UK Limited (100%)

	
Neomedics, Inc.
	
United States (New Jersey)
	
Corporation
	
Common Stock: 1,428,000 shares
	
AMEI Technologies, Inc. (100%)

	
Orthofix Holdings, Inc.
	
United States (Delaware)
	
Corporation
	
Common Stock: 100 shares
	
Victory Medical Limited (100%)

	
Orthofix Inc.
	
United States (Minnesota)
	
Corporation
	
Common Stock: 100 shares
	
Orthofix UK Limited (100%)

	
Osteogenics Inc.
	
United States (Delaware)
	
Corporation
	
Common Stock: 1,000 shares
	
Orthofix Inc. (100%)

 

 

Schedule 3.15

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.21

The following is an excerpt from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015. The matters below related to Orthofix do Brasil were first publicly disclosed in Amendment No. 1 to the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2012, which was filed with the SEC on March 24, 2014.4  The matters below related to Promeca were first disclosed in a Current Report on Form 8-K filed by the Company on June 23, 20105 and in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010.6 The DPA and Consent referenced below were filed as exhibits to the Company’s Current Report on Form 8-K filed on July 10, 2012.7

Review of Potential Improper Payments Involving Brazil Subsidiary

In August 2013, the Company’s internal legal department was notified of certain allegations involving potential improper payments with respect to its Brazilian subsidiary, Orthofix do Brasil. The Company engaged outside counsel to assist in the review of these matters, focusing on compliance with applicable anti-bribery laws, including the Foreign Corrupt Practices Act (the “FCPA”). This review remains ongoing. The FCPA and related provisions of law provide for potential criminal and civil sanctions in connection with anti-bribery violations, including criminal fines, civil penalties, disgorgement of past profits and other kinds of remedies. The Company currently cannot reasonably estimate a possible loss, or range of loss, in connection with this review.

In 2012, the Company entered into definitive agreements with the U.S. Department of Justice (the “DOJ”) and the SEC agreeing to settle a self-initiated and self-reported internal investigation of our Mexican subsidiary, Promeca S.A. de C.V. (“Promeca”), regarding non-compliance by Promeca with the FCPA. As part of the settlement, we entered into a three-year deferred prosecution agreement (“DPA”) with the DOJ and a consent to final judgment (the “Consent”) with the SEC. Consistent with the provisions of these agreements, the Company contacted the DOJ and the SEC in August 2013 to voluntarily self-report the Brazil-related allegations, and the Company and its counsel remain in contact with both agencies regarding the status of the review. On June 15, 2015, the Company and the DOJ agreed to extend the term of the DPA for two months (through September 17, 2015) to permit the DOJ additional time to evaluate and investigate the Brazil-related allegations. The DOJ has informed the Company and the court that it intends to complete its evaluation and further investigation in August 2015, and that it will notify the Company and the court of its proposed course of action shortly thereafter. In the event that the DOJ and the SEC find that the matters related to the Company’s Brazilian subsidiary conflict with the Company’s obligations under the terms of these agreements, the Company currently cannot reasonably estimate a possible loss, or range of loss, in connection with that review, including any effects it may have with respect to these agreements (including any potential future amendments thereto).

 

4 See http://www.sec.gov/Archives/edgar/data/884624/000119312514112500/d635050d10ka.htm

5 See http://www.sec.gov/Archives/edgar/data/884624/000114036110026642/form8k.htm

6 See http://www.sec.gov/Archives/edgar/data/884624/000119312510170201/d10q.htm 

7 See http://www.sec.gov/Archives/edgar/data/884624/000110465912048124/0001104659-12-048124-index.htm 

 

 

Schedule 3.21

4810-9421-6998v.3 58437-4

 

SCHEDULE 3.27

Affiliate Transactions

	
 
	
1.
	
The Intercompany Loans described in Schedule 6.01(a).

	
 
	
2.
	
Services Agreement dated January 1, 2008 between Orthofix Inc. and Orthofix-Italy, where Orthofix-Italy provides consulting services to Orthofix Inc. for the distribution by Orthofix Inc. of orthopedic products manufactured by Orthofix-Italy. Currently and within the past 12 months, no services have been provided or payments made under this agreement, nor expected in the near future.

	
 
	
3.
	
Services Agreement dated January 1, 2012 between Orthofix Inc. and Orthofix-Italy, where Orthofix Inc. provides organizational and human resource consultancy services to Orthofix-Italy in return for services fees plus costs.

	
 
	
4.
	
Services Agreement dated January 1, 2007 between Orthofix Inc. and Orthofix-Italy, where Orthofix Inc. provides IT support services to Orthofix-Italy.

	
 
	
5.
	
Services Agreement dated January 1, 2008 between Orthofix Inc. and Orthofix-Italy regarding American Association of Orthopedic Surgeons organizational activities.

 

 

Schedule 3.27

4810-9421-6998v.3 58437-4

 

SCHEDULE 5.15

Post-Closing Matters

As applicable, each Loan Party agrees to take the following actions described below to cause the applicable Orthofix Entity to, in each case in the manner and by the dates set forth below, or such later dates as may be agreed by the Administrative Agent in its sole discretion (it being understood that until the expiration of such date, the existence of any such post-closing actions that would otherwise cause any representation, warranty, covenant, default or event of default in this Agreement or any other Loan Document to be in breach, shall not constitute a breach of such representation, warranty, covenant, default or event of default):

1.Within 30 days of the Effective Date, the Borrower Representative shall deliver the following items (each in form and substance reasonably satisfactory to the Administrative Agent):

	
 
	
a.
	
a description of all insurance maintained by or on behalf of Orthofix-Italy; and

	
 
	
b.
	
Equity Interests of the Subsidiaries directly owned by each of the Loan Parties (other than the certificates evidencing the U.S. Loan Parties, the UK Borrower and Orthofix UK Limited, each of which certificates shall be delivered on the Effective Date) and pledged pursuant to the Security Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor.

2.By September 11, 2015, the Borrower Representative shall deliver following items (each in form and substance reasonably satisfactory to the Administrative Agent):

	
 
	
a.
	
evidence of insurance coverage required by Section 5.10 of the Credit Agreement for each of the U.K. Subsidiaries, together with (upon the request of the Administrative Agent) a copy of each such insurance policy, all endorsements and all certificates related thereto showing JPMorgan Chase Bank, as the Administrative Agent, as additional insured and loss payee, as applicable, each in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of the Credit Agreement and the Security Agreement; provided, that evidence of liability coverage for the U.K. Borrower shall be delivered on the Effective Date; and

	
 
	
b.
	
upon the request of the Administrative Agent, a copy of each insurance policy of the U.S. Loan Parties, all endorsements and all certificates related thereto showing JPMorgan Chase Bank, as the Administrative Agent, as additional insured and loss payee, as applicable, each in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of the Credit Agreement and the Security Agreement.

3.Within 60 days of the Effective Date, the Borrower Representative shall deliver the following items (each in form and substance reasonably satisfactory to the Administrative Agent):

	
 
	
a.
	
all Deposit Account Control Agreements (as such term is defined in the Security Agreement) required to be delivered pursuant to Section 4.14 of the Security Agreement (other than Deposit Account Control Agreements for the Operating Accounts specifically referred to in Paragraph 5 below);

	
 
	
b.
	
all Securities Account Control Agreements (as such term is defined in the Security Agreement) required to be delivered pursuant to Section 4.14 of the Security Agreement;

	
 
	
c.
	
all Collateral Access Agreements (as such term is defined in the Security Agreement) required to be delivered pursuant to Section 4.13 of the Security Agreement;

	
 
	
d.
	
all UK security documentation perfecting the Administrative Agent’s lien in the Material Intellectual Property;

	
 
	
e.
	
a listing of all locations where consigned Inventory of the Loan Parties with a value exceeding $1,000,000 is located;

	
 
	
f.
	
the originals of all certificated Securities (other than Pledged Equity Interests issued by a Loan Party or a Subsidiary which are required to be delivered on the Effective Date or are otherwise specifically referred to in Paragraph 1.b above), Instruments, Promissory Notes (other than the Intercompany Notes that are specifically referred to in Paragraph 3.h below) and Chattel Paper required to be delivered pursuant to Section 4.4 of the Security Agreement;

Schedule 5.15

4810-9421-6998v.3 58437-4

 

	
 
	
g.
	
the original Convertible Promissory Note issued by eNeura, Inc. in favor of Orthofix Inc. in the principal amount of USD $15,000,000, dated as of March 4, 2015, together with a duly-executed allonge thereto;

	
 
	
h.
	
(i) to the extent not previously delivered to the Administrative Agent, the original of each Intercompany Note owing to a Loan Party, together with a duly-executed allonge, (ii) amendments and restatements of Intercompany Notes previously delivered to the Administrative Agent necessary to cure any inaccuracies or inconsistencies in such Intercompany Notes, together with a duly-executed allonge and (iii) evidence that each Intercompany Note issued by a Loan Party to a Non-Loan Party shall be subject to full subordination terms satisfactory to the Administrative Agent in its sole discretion; and

	
 
	
i.
	
to the extent requested by the Administrative Agent, all documentation necessary to grant and perfect a Lien on the Cross-Currency Swap Agreements listed on Schedule 6.01 of the Credit Agreement.

4.As soon as available and in any event no later than ninety (90) days of the Effective Date, the Borrower Representative shall deliver a written disclosure and/or plan outlining the steps the U.S. Loan Parties will take to ensure that payments received in respect of Medicaid and Medicare receivables are not commingled upon receipt with the U.S. Loan Parties operating accounts.

5.As soon as available and in any event no later than six (6) months of the Effective Date, the Borrower Representative shall deliver evidence that (i) the U.S. Loan Parties have isolated deposit accounts solely for the receipt of payments in respect of Medicare and Medicaid receivables (the “Medicare and Medicaid Deposit Accounts”), (ii) the funds on deposit in such Medicare and Medicaid Deposit Accounts are swept daily to a separate operating account of the U.S. Loan Parties (the “Operating Accounts”) pursuant to irrevocable standing instructions to the depository institution holding such Medicare and Medicaid Deposit Accounts and (iii) such Operating Accounts are subject to a Deposit Account Control Agreement in form and substance satisfactory to the Administrative Agent.

 

Schedule 5.15

4810-9421-6998v.3 58437-4

 

SCHEDULE 6.01

Existing Indebtedness

	
 
	
1.
	
Cross-Currency Swap Agreement, entered into on September 30, 2010, among Orthofix Holdings Inc., JPMorgan Chase Bank, and Royal Bank of Scotland PLC.

	
 
	
2.
	
Cross-Currency Swap, effective December 15, 2006, among Orthofix Holdings Inc. and Orthofix International B.V.

 

Schedule 6.01

4810-9421-6998v.3 58437-4

 

SCHEDULE 6.01(a)

Intercompany Loans

1.Orthofix Holdings. Inc.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the principal amount of USD $35,561,349, dated as of December 29, 2003, as amended on December 29, 2014.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the principal amount of USD $6,400,000, dated as of December 22, 2004.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the principal amount of USD $3,300,000, dated as of June 16, 2005.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the principal amount of USD $5,500,000, dated as of September 22, 2005.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the principal amount of USD $3,500,000, dated as of March 16, 2006.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $20,000,000, dated as of December 31, 2006.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $9,500,000, dated as of March 31, 2007.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $5,900,000, dated as of May 23, 2007.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $2,725,000, dated as of June 15, 2007.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $5,500,000, dated as of November 16, 2007.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $3,500,000, dated as of December 27, 2007.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $500,000, dated as of February 29, 2008.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $2,400,000, dated as of June 17, 2008.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $1,000,000, dated as of June 20, 2008.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $500,000, dated as of July 15, 2008.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $4,000,000, dated as of July 24, 2008.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $3,000,000, dated as of March 23, 2009.

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited (originally in favor of Orthofix International N.V.) in the amount of USD $1,500,000, dated as of March 27, 2009.

Schedule 6.01(a)

4810-9421-6998v.3 58437-4

 

Note issued by Orthofix Holdings, Inc. in favor of Victory Medical Limited in the amount of USD $94,517,116.78, dated as of December 26, 2014.

2.Orthofix UK Limited

Note issued by Orthofix UK Limited in favor of Orthofix Holdings, Inc. in the amount of $94,517,116 million, dated as of December 26, 2014.

Note issued by Orthofix UK Limited in favor of Orthofix Holdings, Inc. in the amount of $165,017,291 million, dated as of December 26, 2014.

3.Colgate Medical Ltd

Note issued by Colgate Medical Ltd in favor of Orthofix Holdings, Inc. in the principal amount of USD $11,779,217.08, dated as of December 27, 2004.

Note issued by Colgate Medical Ltd in favor of Victory Medical Limited in the principal amount of USD $35,837,015, dated as of January 1, 2005.

Note issued by Colgate Medical Ltd in favor of Orthofix International N.V. in the principal amount of USD $4,725,000, dated as of June 16, 2005.

Note issued by Colgate Medical Ltd in favor of Intavent Orthofix Limited (now known as Orthofix Limited) in the principal amount of USD $23,000,000, dated as of March 23, 2010.

4.Inter Medical Supplies Limited

Note issued by Inter Medical Supplies Limited in favor of Orthofix International B.V. in the principal amount of USD $500,000, dated as of January 29, 2010.

5.Orthofix Australia Pty Limited

Note issued by Orthofix Australia Pty Limited in favor of Orthofix International N.V. in the principal amount of USD $3,000,000, dated as of July 10, 2013.

Note issued by Orthofix Australia Pty Limited in favor of Orthofix International N.V. in the principal amount of USD $200,000, dated as of February 5, 2015.

6.Orthofix GmbH

Note issued by Orthofix GmbH in favor of Orthofix International B.V. in the principal amount of EUR €900,000, dated as of February 16, 2006.

Note issued by Orthofix GmbH in favor of Orthofix International B.V. in the principal amount of EUR €900,000, dated as of March 16, 2008

7.Orthofix International B.V.

Note issued by Orthofix International B.V. in favor of Inter Medical Supplies Limited in the principal amount of EUR €56,584,284.85, dated as of December 15, 2006.

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $168,000,000, dated as of December 29, 2003.

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $12,000,000, dated as of December 17, 2004.

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $30,000,000, dated as of December 22, 2005.

Schedule 6.01(a)

4810-9421-6998v.3 58437-4

 

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $3,000,000, dated as of April 1, 2008.

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $19,000,000, dated as of March 23, 2010.

Note issued by Orthofix International B.V. in favor of Orthofix International N.V. in the principal amount of USD $450,000, dated as of October 10, 2010.

8.Orthofix II B.V.

Note issued by Orthofix II B.V. in favor of Orthofix International B.V. in the principal amount of USD $30,000,000, dated as of December 23, 2005.

Note issued by Orthofix II B.V. in favor of Orthofix International B.V. in the principal amount of USD $19,000,000, dated as of March 23, 2010.

9.Orthofix International N.V.

Note issued by Orthofix International N.V. in favor of Orthofix Inc. in the principal amount of USD $50,000,000, dated as of May 30, 2013.

10.Orthofix Limited

Note issued by Orthofix Limited (formerly known as Intavent Orthofix Limited) in favor of Orthofix II B.V. in the principal amount of USD $19,000,000, dated as of March 23, 2010.

11.Orthofix S.r.l.

Note issued by Orthofix S.r.l. in favor of Orthofix International B.V. in the principal amount of USD $4,000,000, dated as of April 30, 2008.

Note issued by Orthofix S.r.l. in favor of Orthofix International B.V. in the principal amount of EUR €47,887,770, dated as of August 1, 2006.

12.Promeca, S.A. de C.V.

Note issued by Promeca, S.A. de C.V. in favor of Orthofix International N.V. in the principal amount of MXN $1,100,000, dated as of May 20, 2013.

13.AMEI Technologies, Inc.

Note issued by AMEI Technologies, Inc. favor of Osteogenics Inc. in the principal amount of USD $20,000,000, dated as of May 6, 1998.

14.Orthofix Inc.

Note issued by Orthofix Inc. in favor of AMEI Technologies, Inc. in the principal amount of USD $5,000,000, dated as of April 30, 1996.

Note issued by Orthofix Inc. in favor of AMEI Technologies, Inc. in the principal amount of USD $5,000,000, dated as of September 30, 1997.

Note issued by Orthofix Inc. in favor of AMEI Technologies, Inc. in the principal amount of USD $150,000,000, dated as of October 31, 1997.

Note issued by Orthofix Inc. in favor of Osteogenics Inc. in the principal amount of USD $1,000,000, dated as of January 21, 2000.

 

 

Schedule 6.01(a)

4810-9421-6998v.3 58437-4

 

SCHEDULE 6.02

Existing Liens

 

	
Loan Party
	
 State
	
Secured Party

 
	
Filing Information
	
Collateral

	
Blackstone Medical, Inc.
	
MA
	
Dell Financial Services, L.P.
	
Original

200538080130

04/11/2005

 

Continued

201078949130

03/15/2010

 

Amendment

201084004100

11/15/2010

 

Continued 

201518071690

03/02/2015

 
	
Leased Computer Equipment

 

	
Orthofix, Inc.
	
MN
	
General Electric Capital Corporation
	
Original 

201332890335

06/26/2013

 
	
Specific Medical Equipment 

 

 

Schedule 6.02

4810-9421-6998v.3 58437-4

 

SCHEDULE 6.04

Existing Investments

	
 
	
1.
	
The intercompany notes described in Schedule 6.01(a).

	
 
	
2.
	
1,451,574 shares of common stock of Bone Biologics Inc.

	
 
	
3.
	
Warrants issued by Bone Biologics Inc. in favor of Orthofix Holdings Inc. to purchase 125,000 shares of Bone Biologics Inc., at an exercise price of $1.00 per share.

	
 
	
4.
	
Warrants issued by Bone Biologics Inc. in favor of Orthofix Holdings Inc. to purchase 333,334 shares of Bone Biologics Inc., at an exercise price of $1.50 per share.

	
 
	
5.
	
Convertible Promissory Note issued by eNeura, Inc. in favor of Orthofix Inc. in the principal amount of USD $15,000,000, dated as of March 4, 2015.

	
 
	
6.
	
Option Agreement, entered into on March 4, 2015, between Orthofix Inc. and eNeura, Inc., granting Orthofix Inc. an option to acquire eNeura, Inc.

 

 

Schedule 6.04

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SCHEDULE 6.10

Restrictive Agreements

None.

 

 

Schedule 6.10

4810-9421-6998v.3 58437-4

 

SCHEDULE 6.13

Accounts A

 

	
Account Holder
	
Bank
	
Bank Address
	
Account Type

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
A.
	
Due to the sensitive nature, account information has been redacted from this filing.

 

 

Schedule 6.13

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EXHIBIT A

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this "Assignment and Assumption") is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the "Assignor") and [Insert name of Assignee] (the "Assignee"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and other rights of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the "Assigned Interest"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	
1.  Assignor:
	
 
	
 

	
2.  Assignee:
	
 
	
 

	
[and is an Affiliate/Approved Fund of [identify Lender]1]

	
3.  Borrowers:
	
Orthofix Holdings, Inc. and Victory Medical Limited

	
4.  Administrative Agent:
	
JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement

	
5.  Credit Agreement:
	
The Credit Agreement dated as of August 31, 2015 among Orthofix Holdings, Inc. and Victory Medical Limited, as Borrowers, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto

	
6.  Assigned Interest:
	
 

 

	
Facility Assigned2
	
Aggregate Amount of Commitment/Loans for all Lenders
	
Amount of Commitment/Loans Assigned
	
Percentage Assigned of Commitment/Loans3

	
 
	
$
	
$
	
%

	
 
	
$
	
$
	
%

	
 
	
$
	
$
	
%

Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

1 Select as applicable. 

2 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. "Commitment," "Term Loan Commitment," etc.)

3 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

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The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Company, the Loan Parties and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including federal and state securities laws.

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

		
	
ASSIGNOR

	
 
	
 

	
[NAME OF ASSIGNOR]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

2

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ASSIGNEE

	
 
	
 

	
[NAME OF ASSIGNEE]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

3

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[Consented to and]4 Accepted:

[NAME OF ADMINISTRATIVE AGENT], as 

Administrative Agent[, Swingline Lender] and

Issuing Bank 

 

		
	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

[Consented to:]5 

 

[NAME OF RELEVANT PARTY]

		
	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

4 To be added only if the consent of the Administrative Agent, Issuing Bank and/or Swingline Lender, as applicable, is required by the terms of the Credit Agreement.

5 To be added only if the consent of the Borrower Representative and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of the Credit Agreement.

 

 

 

4

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ANNEX 1 to ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION

1.Representations and Warranties.

1.1Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of any Borrower, any Subsidiary or Affiliate or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by any Borrower, any Subsidiary or Affiliate, or any other Person of any of their respective obligations under any Loan Document.

1.2Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.10(a) and (b) thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

2.Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

3.General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.

Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor by Electronic Signature (as defined in the Credit Agreement) or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Electronic System (as defined in the Credit Agreement) shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

 

 

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EXHIBIT B

COMPLIANCE CERTIFICATE

	
To:
	
The Lenders party to the
Credit Agreement described below

This Compliance Certificate ("Certificate"), for the period ended _______ __, 201_, is furnished pursuant to that certain Credit Agreement dated as of August 31, 2015 (as amended, modified, renewed or extended from time to time, the "Agreement") among Orthofix Holdings, Inc. and Victory Medical Limited (collectively, the "Borrowers"), the other Loan Parties, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders and as the Issuing Bank and Swingline Lender. Unless otherwise defined herein, capitalized terms used in this Certificate have the meanings ascribed thereto in the Agreement.

THE UNDERSIGNED HEREBY CERTIFIES ON ITS BEHALF AND ON BEHALF OF THE BORROWERS THAT:

1.I am the [_________________]of the Borrower Representative and I am authorized to deliver this Certificate on behalf of the Borrowers and their Subsidiaries;

2.I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a reasonably detailed review of the compliance of the Borrowers and their Subsidiaries with the Agreement during the accounting period covered by the attached financial statements (the "Relevant Period");

3.The attached financial statements of the Company and, as applicable, its Subsidiaries and/or Affiliates for the Relevant Period: (a) have been prepared on an accounting basis (the "Accounting Method") consistent with the requirements of the Agreement and, except as may have been otherwise expressly agreed to in the Agreement, in accordance with GAAP consistently applied, and (b) to the extent that the attached are not the Company’s annual fiscal year end statements, are subject to normal year-end audit adjustments and the absence of footnotes;

4. The examinations described in paragraph 2 did not disclose and I have no knowledge of, except as set forth below, (a) the existence of any condition or event which constitutes a Default or an Event of Default under the Agreement or any other Loan Document during or at the end of the Relevant Period or as of the date of this Certificate or (b) any change in the Accounting Method or in the application thereof that has occurred since the date of the annual financial statements delivered to the Administrative Agent in connection with the closing of the Agreement or subsequently delivered as required in the Agreement;

5.I hereby certify that, except as set forth below, no Loan Party has changed (i) its name, (ii) its chief executive office, (iii) its principal place of business, (iv) the type of entity it is or (v) its state of incorporation or organization without having given the Administrative Agent the notice required by Section 4.15 of the Security Agreement;

6.Schedule I attached hereto sets forth financial data and computations evidencing the Borrowers’ compliance with Sections 6.12(a) and (b) of the Agreement, all of which data and computations are true, complete and correct; and

7.Schedule II hereto sets forth the computations necessary to determine the Applicable Rate commencing on the Business Day this Certificate is delivered.

8.Schedule III hereto sets forth either a list that identifies each Domestic Subsidiary of the Company that is an Immaterial Subsidiary as of the date hereof or a confirmation that there is no change in such information since the later of the Effective Date or the date of the last such list.

9.Schedule IV hereto sets forth either a list that identifies each Material Domestic Subsidiary of the Company that is an not Wholly Owned as of the date of delivery of such Compliance Certificate or a confirmation that there is no change in such information since the later of the Effective Date or the date of the last such list.

10.Schedule V hereto sets forth the calculations demonstrating (A) the amount of the Non-Loan Party Available Funds on the Business Day this Certificate is delivered and the amount of other Investments outstanding as permitted by clauses (h), (k), (l) and (m) of Section 6.04, (B) the amount of Indebtedness outstanding permitted by Section 6.01(l) and any Liens securing such 

1

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Indebtedness permitted by Section 6.02(g), and (C) the amount of assets and properties sold, leased, transferred or disposed for such period and other the term of the Credit Agreement permitted by Section 6.05(f).

Described below are the exceptions, if any, referred to in paragraph 4 hereof by listing, in detail, the (i) nature of the condition or event, the period during which it has existed and the action which the Borrowers have taken, are taking, or propose to take with respect to each such condition or event or (ii) change in the Accounting Method or the application thereof and the effect of such change on the attached financial statements:

 

	
	
 

	
 

	
 

 

The foregoing certifications, together with (i) the computations set forth in Schedule I and Schedule II hereto, (ii) the information set forth in Schedule III and IV and (iii) the financial statements delivered with this Certificate in support hereof, are made and delivered this _____ day of ______________, 20__.

 

			
	
 
	
 

	
as the Borrower Representative

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

2

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Schedule I to Compliance Certificate

Compliance as of _________, ____ with

Sections 6.12(a) and (b) of the Agreement

 

 

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Schedule II to Compliance Certificate

Borrowers’ Applicable Rate Calculation

 

 

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Schedule III to Compliance Certificate

Domestic Subsidiaries that are Immaterial Subsidiaries

 

 

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Schedule IV to Compliance Certificate 

Material Domestic Subsidiaries that are Not Wholly Owned

 

 

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Schedule V to Compliance Certificate

Calculations demonstrating (A) the amount of the Non-Loan Party Available Funds on the Business Day this Certificate is delivered and the amount of other Investments outstanding as permitted by clauses (h), (k), (l) and (m) of Section 6.04, (B) the amount of Indebtedness outstanding permitted by Section 6.01(l) and any Liens securing such Indebtedness permitted by Section 6.02(g), and (C) the amount of assets and properties sold, leased, transferred or disposed for such period and other the term of the Credit Agreement permitted by Section 6.05(f).

 

 

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EXHIBIT C

JOINDER AGREEMENT

THIS JOINDER AGREEMENT (this "Agreement"), dated as of [ ], is entered into between ________________________________, a _________________ (the "New Subsidiary") and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "Administrative Agent") under that certain Credit Agreement dated as of August 31, 2015 (as the same may be amended, modified, extended or restated from time to time, the "Credit Agreement") among ORTHOFIX HOLDINGS, INC., a Delaware corporation ("U.S. Borrower") and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales ("Victory" and together with the U.S Borrower, the "Borrowers"), the other Loan Parties party thereto, the Lenders party thereto and the Administrative Agent for the Lenders. All capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

The New Subsidiary and the Administrative Agent, for the benefit of the Secured Parties, hereby agree as follows:

1.The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a "Loan Guarantor" for all purposes of the Credit Agreement and shall have all of the obligations of a Loan Party and a Loan Guarantor thereunder as if it had executed the Credit Agreement. The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Credit Agreement, including without limitation (a) all of the representations and warranties of the Loan Parties set forth in Article III of the Credit Agreement,*[and]* (b) all of the covenants set forth in Articles V and VI of the Credit Agreement *[and (c) all of the guaranty obligations set forth in Article X of the Credit Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the New Subsidiary, subject to the limitations set forth in Sections 10.10 and 10.13 of the Credit Agreement, hereby guarantees, jointly and severally with the other Loan Guarantors, to the Administrative Agent and the Lenders, as provided in Article X of the Credit Agreement, the prompt payment and performance of the Guaranteed Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof and agrees that if any of the Guaranteed Obligations are not paid or performed in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise), the New Subsidiary will, jointly and severally together with the other Loan Guarantors, promptly pay and perform the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the terms of such extension or renewal.]* *[The New Subsidiary has delivered to the Administrative Agent an executed Obligation Guaranty.]*

2.If required, the New Subsidiary is, simultaneously with the execution of this Agreement (or by such later date as agreed by the Administrative Agent in its sole discretion), executing and delivering such Collateral Documents (and such other documents and instruments) as requested by the Administrative Agent in accordance with the Credit Agreement.

3.The address of the New Subsidiary for purposes of Section 9.01 of the Credit Agreement is as follows:

 

	
	
 

	
 

	
 

4.The New Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of the guaranty by the New Subsidiary upon the execution of this Agreement by the New Subsidiary.

5.This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which together shall constitute one and the same instrument.

6.THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

1

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IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its authorized officer, and the Administrative Agent, for the benefit of the Secured Parties, has caused the same to be accepted by its authorized officer, as of the day and year first above written.

 

		
	
[NEW SUBSIDIARY]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

		
	
Acknowledged and accepted:

	
 
	
 

	
JPMORGAN CHASE BANK, N.A., as

	
Administrative Agent

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

2

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EXHIBIT D-1

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of August 31, 2015 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among ORTHOFIX HOLDINGS, INC., a Delaware corporation ("U.S. Borrower") and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales ("Victory" and together with the U.S Borrower, the "Borrowers"), JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "Administrative Agent"), and each lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and Beneficial Owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower Representative with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower Representative and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower Representative and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

		
	
[NAME OF LENDER]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

Date: ________ __, 20[  ]

 

 

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EXHIBIT D-2

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of August 31, 2015 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among ORTHOFIX HOLDINGS, INC., a Delaware corporation ("U.S. Borrower") and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales ("Victory" and together with the U.S Borrower, the "Borrowers"), JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "Administrative Agent"), and each lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and Beneficial Owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

		
	
[NAME OF PARTICIPANT]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

Date: ________ __, 20[  ]

 

 

4810-9421-6998v.9 

58437-4 8/31/2015

 

EXHIBIT D-3

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of August 31, 2015 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among ORTHOFIX HOLDINGS, INC., a Delaware corporation ("U.S. Borrower") and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales ("Victory" and together with the U.S Borrower, the "Borrowers"), JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "Administrative Agent"), and each lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole Beneficial Owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by an IRS Form W‐8BEN or W-8BEN-E, as applicable, from each of such partner’s/member’s Beneficial Owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

		
	
[NAME OF PARTICIPANT]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

Date: ________ __, 20[ ]

 

 

4810-9421-6998v.9 

58437-4 8/31/2015

 

EXHIBIT D-4

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of August 31, 2015 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among ORTHOFIX HOLDINGS, INC., a Delaware corporation ("U.S. Borrower") and VICTORY MEDICAL LIMITED, a company formed under the laws of England and Wales ("Victory" and together with the U.S Borrower, the "Borrowers"), JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "Administrative Agent"), and each lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole Beneficial Owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower Representative with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E, as applicable, or (ii) an IRS Form W‐8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E, as applicable, from each of such partner’s/member’s Beneficial Owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower Representative and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower Representative and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

		
	
[NAME OF LENDER]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

Date: ________ __, 20[ ]

 

 

4810-9421-6998v.9 

58437-4 8/31/2015

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