Document:

Exhibit 10.2

 

[Execution Version]

 

FIRST AMENDMENT TO

LOAN AND SECURITY AGREEMENT, FIRST
TIER PURCHASE AND SALE 

AGREEMENT AND SECOND TIER PURCHASE AND SALE AGREEMENT

 

THIS FIRST AMENDMENT
TO LOAN AND SECURITY AGREEMENT, FIRST TIER PURCHASE AND SALE AGREEMENT AND SECOND TIER PURCHASE AND SALE AGREEMENT (this “Amendment”),
dated as of March 16, 2020 (the “Effective Date”), is entered into by and among Exela Receivables 1, LLC,
a Delaware limited liability company (“Borrower”), Exela Technologies, Inc., a Delaware corporation,
as servicer (“Initial Servicer”), Exela Receivables Holdco, LLC, a Delaware limited liability company
(“Pledgor”), each of the parties identied on the signature page hereto as Originators (the “Originators”),
the persons from time to time party thereto as lenders (“Lenders”), TPG Specialty Lending, Inc., a Delaware
corporation (“TSL”), as administrative agent for the Lenders (in such capacity, “Administrative Agent”).
This Amendment shall be deemed one of the Transaction Documents referenced in the Loan Agreement.

 

RECITALS

 

WHEREAS, Borrower,
Initial Servicer, Lenders, Administrative Agent and PNC Bank, National Association are parties to that certain Loan and Security
Agreement, dated as of January 10, 2020 (as amended, modified or supplemented from time to time, the “Loan Agreement”).

 

WHEREAS, Originators,
Pledgor and Initial Servicer are parties to that certain First Tier Purchase and Sale Agreement, dated as of January 10, 2020 (as
amended, modified or supplemented from time to time, the “First Tier PSA”).

 

WHEREAS, Pledgor, Borrower
and Initial Servicer are parties to that certain Second Tier Purchase and Sale Agreement, dated as of January 10, 2020 (as amended,
modified or supplemented from time to time, the “Second Tier PSA”).

 

WHEREAS, Borrower,
Initial Servicer, Pledgor and Originators have requested that Administrative Agent and Lenders amend the Loan Agreement, First
Tier PSA and Second Tier PSA in certain respects as set forth below; and

 

WHEREAS, Administrative
Agent and Lenders have agreed to amend the Loan Agreement, First Tier PSA and Second Tier PSA on the terms and subject to the conditions
set forth in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

 

     

     

    

 

[Execution Version]

 

Article
I

 

Definitions

 

Capitalized terms used
in this Amendment are defined in the Loan Agreement unless otherwise stated.

 

ARTICLE II

 

Amendments

 

2.1       The
following defined terms are hereby added to Section 1.01 of the Loan Agreement as follows:

 

““First
Amendment Closing Date” means March 16, 2020.”

 

““Periodic
Report” means the report substantially in the form of Exhibit A hereto. Each Periodic Report (other than the first Periodic
Report delivered hereunder) shall include a comparison of the actual cash flow (shown by line item for each week) since the date
of the preceding Periodic Report to that predicted in such preceding Periodic Report.”

 

““Periodic
Report Delivery Date” means, for any Periodic Report Delivery Period, initially, the last Business Day of the calendar
week following the week in which such Periodic Report Delivery Period began and, thereafter, the last Business Day of every fourth
calendar week following the previous Periodic Report Delivery Date; provided that the Periodic Report Delivery Date for
the initial Periodic Report Delivery Period shall be March 31, 2020.”

 

““Periodic
Report Delivery Period” means a period beginning on each date, if any, that Liquidity does not equal or exceed $60,000,000
(and a Periodic Report Delivery Period is not already then continuing) and ending on the date, if any, that Liquidity (x) exceeds
$60,000,000 and (y) is projected to exceed $60,000,000 at the end of each of the following 13 calendar weeks in the most recently
delivered Periodic Report; provided that the initial Periodic Report Delivery Period shall be deemed to begin on March 31,
2020.”

 

“Specified
Initial Servicer Default” means any Initial Servicer Default (or any Unmatured Initial Servicer Default) arising or
continuing solely from Liquidity failing to exceed $60,000,000; provided that such Initial Servicer Default (or Unmatured
Initial Servicer Default) shall cease to be a Specified Initial Servicer Default at any time Liquidity fails to exceed $40,000,000.

 

     

     

    

 

[Execution Version]

 

2.2       The
defined term “Liquidity” in Section 1.01 of the Loan Agreement is hereby amended and restated as follows:

 

““Liquidity”
means, at any time, the sum of (a) the domestic Unrestricted Cash held by the Parent and its Subsidiaries at such time
(provided, that all amounts in any Collection Account shall be considered “restricted” for such purposes; provided,
further that if an Interim Report has been delivered not more than seven (7) days prior to the date of calculation, the
following amounts in a Continuing Collection Account shall be deemed “unrestricted” (and may be included in
 “Liquidity”): the positive excess, if any, of amounts in a Continuing Collection Account over the sum of (i) all
accrued and unpaid Servicing Fees, Interest, Fees and Breakage Amounts, in each case, through such date of determination,
(ii) the amount of the “Required Reduction/LC Cash Collateralization” specified in the most recent Interim Report
(conforming in form and substance to Exhibit H to this Agreement), and (iii) the amount of all other unpaid Borrower
Obligations then due and owing through such date of determination), plus (b) the aggregate amount of cash then available to
be borrowed (but which has not been borrowed) by the Parent and its Subsidiaries under their respective committed credit
facilities (excluding, for the avoidance of doubt, the transactions contemplated by this Agreement) and which may be drawn
within not more than three (3) Business Days subject only to satisfaction of customary conditions precedent (such as delivery
of a borrowing request) that do not include (i) the counterparty thereunder having any discretion to approve such borrowing
or having to waive any conditions precedent to such borrowing or (ii) the satisfaction of any borrowing base or similar
collateral tests that are not then satisfied, plus (c) the excess of (i) lesser of (A) the Facility Limit and (B) the
Borrowing Base over (ii) the Aggregate Loan Amount plus the Revolving A LC Participation Amount; provided, that at any time
on or after the Revolving Commitment Termination Date, the amount determined pursuant this clause (c) shall be zero ($0),
minus (d) the aggregate amount of accounts payable owing by Parent and its Subsidiaries that are outstanding more than 90
days past the stated due date thereof.”

 

2.3       Section
6.02(e)(ii) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(ii) no Unmatured Initial
Servicer Default, Initial Servicer Default, Event of Default or Unmatured Event of Default would result from such Credit Extension
unless (solely in the case of an Unmatured Initial Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer
Default or Initial Servicer Default is a Specified Initial Servicer Default.”

 

2.4       Section
7.01(ii) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(ii)    No
Default. No event has occurred and is continuing and no condition exists, or would result from any Loan or Release or
from the application of proceeds therefrom, that constitutes or may reasonably be expected to constitute an Unmatured Initial
Servicer Default, Initial Servicer Default, Event of Default or Unmatured Event of Default unless (solely in the case of an
Unmatured Initial Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer Default or Initial Servicer
Default is a Specified Initial Servicer Default.”

 

     

     

    

 

[Execution Version]

 

2.5       Section
7.02(y) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(y)    No Default.
No event has occurred and is continuing and no condition exists, or would result from any Loan or Release or from the application
of proceeds therefrom, that constitutes or may reasonably be expected to constitute an Unmatured Initial Servicer Default, Initial
Servicer Default, Event of Default or Unmatured Event of Default unless (solely in the case of an Unmatured Initial Servicer Default
or Initial Servicer Default) such Unmatured Initial Servicer Default or Initial Servicer Default is a Specified Initial Servicer
Default.”

 

2.6       Section
8.02(b) of the Loan Agreement is hereby amended to add the following clause (iii) at the end thereof:

 

“and (iii) on each Periodic
Report Delivery Date, a Periodic Report.”

 

2.7       Section
8.05(c) of the Loan Agreement is hereby amended to add the following clause (iii) at the end thereof:

 

“and (iii) on each Periodic
Report Delivery Date, a Periodic Report.”

 

2.8       Section
8.08(b)(vii) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(vii)  it shall not
make, declare or otherwise commence or become obligated in respect of, any dividend, stock or other security redemption or purchase,
distribution or other payment to, or for the account or benefit of, any owner of any Capital Stock or other equity interest, security
interest or equity interest in it to any such owner or any Affiliate of any such owner other than from funds received by it under
Article IV and so long as, in any case, before or after giving effect thereto, no Unmatured Initial Servicer Default, Initial
Servicer Default, Event of Default or Unmatured Event of Default shall have occurred that remains continuing, unless (solely in
the case of an Unmatured Initial Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer Default or Initial
Servicer Default is a Specified Initial Servicer Default;

 

     

     

    

 

[Execution Version]

 

2.9       Section
9.03(c) of the Loan Agreement is hereby amended to amend and restate the third sentence thereof as follows:

 

In the event that the
Administrative Agent reasonably determines that such Information Package or Interim Report constitutes a Qualifying Release
Report, so long as no Unmatured Initial Servicer Default, Initial Servicer Default, Event of Default or Unmatured Event of
Default has occurred and is continuing (unless (solely in the case of an Unmatured Initial Servicer Default or Initial
Servicer Default) such Unmatured Initial Servicer Default or Initial Servicer Default is a Specified Initial Servicer
Default), the Administrative Agent shall promptly remit to the Borrower from the Continuing Collection Account the amount
requested on such Qualifying Release Report so long as the remaining Collections on deposit in the Continuing Collection
Account (after giving effect to such release) exceed the amount necessary to pay the sum of (x) all accrued and unpaid
Servicing Fees, Interest, Fees and Breakage Amounts, in each case, through such date (as reasonably estimated by the
Administrative Agent), (y) the amount of any Borrowing Base Deficit and (z) the amount of all other unpaid Borrower
Obligations then due and owing through such date (as reasonably estimated by the Administrative Agent).

 

2.10     Section
9.08(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

“(a)    Within two weeks
of the First Amendment Closing Date, the Initial Servicer shall be delivering reporting reasonably satisfactory to the Backup Servicer
and the Administrative Agent for the Backup Servicer to perform the role of backup servicer with respect to the servicing, administration
and collection of the Receivables. The Backup Servicer shall perform such roles and responsibilities set forth in the Backup Servicing
Agreement. Each of the Initial Servicer and the Borrower hereby covenant and agree to perform each of the roles and responsibilities
set forth therein to be performed by the Borrower and/or Initial Servicer.”

 

2.11     Section
4.02(q) of the First Tier PSA is hereby amended and restated in its entirety as follows:

 

“(q)    No Default.
No event has occurred and is continuing and no condition exists, or would result from the sale, transfer and assignment or contribution
of the Receivables originated by such Originator, that constitutes or may reasonably be expected to constitute an Unmatured Initial
Servicer Default, Initial Servicer Default, Event of Default or Unmatured Event of Default unless (solely in the case of an Unmatured
Initial Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer Default or Initial Servicer Default is a
Specified Initial Servicer Default.”

 

     

     

    

 

[Execution Version]

 

2.12       Section
4.02(q) of the Second Tier PSA is hereby amended and restated in its entirety as follows:

 

“(q)    No Default.
No event has occurred and is continuing and no condition exists, or would result from the sale, transfer and assignment or contribution
of the Receivables acquired by the Seller, that constitutes or may reasonably be expected to constitute an Unmatured Initial Servicer
Default, Initial Servicer Default, Event of Default or Unmatured Event of Default unless (solely in the case of an Unmatured Initial
Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer Default or Initial Servicer Default is a Specified
Initial Servicer Default.”

 

ARTICLE III

 

Conditions Precedent

 

The effectiveness of
this Amendment is subject to (I) the Borrower, the Initial Servicer, the Administrative Agent and each Lender having executed prior
to or contemporaneously with this Amendment that certain Limited Waiver to Loan and Security Agreement (the “Limited Waiver”)
with respect to Existing Defaults (as defined pursuant to the Limited Waiver) and (II) the satisfaction of the following conditions
precedent in a manner satisfactory to Administrative Agent, unless specifically waived in writing by Administrative Agent:

 

1.       Administrative
Agent shall have received this Amendment duly executed by Borrower, the Initial Servicer, the Originators and Pledgor;

 

2.       No
Unmatured Initial Servicer Default, Initial Servicer Default, Unmatured Event of Default or Event of Default is then continuing
unless (solely in the case of an Unmatured Initial Servicer Default or Initial Servicer Default) such Unmatured Initial Servicer
Default or Initial Servicer Default is a Specified Initial Servicer Default;

 

3.       Borrower’s,
Initial Servicer’s, Originators’ and Pledgor’s representations and warranties set forth herein and in the applicable
Transaction Agreement shall be true and correct in all material respects; and

 

4.       All
corporate proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and
other legal matters incident thereto shall be satisfactory to Administrative Agent.

 

ARTICLE
IV

 

No Waiver

 

Nothing contained
in this Amendment or any other communication between Administrative Agent (except with respect to the Limited Waiver to Loan
and Security Agreement), Borrower, Initial Servicer, Originators and Pledgor and/or any Lender shall be a consent or waiver
of any past, present or future condition, violation, Unmatured Initial Servicer Default, Initial Servicer Default, Unmatured
Event of Default or Event of Default of Borrower, Initial Servicer, Originators or Pledgor under the Loan Agreement or any
Transaction Document. Administrative Agent and the Lenders hereby expressly reserve any rights, privileges and remedies under
the Loan Agreement and each Transaction Document that Administrative Agent or the Lenders may have with respect to any
condition, violation, Unmatured Initial Servicer Default, Initial Servicer Default, Unmatured Event of Default or Event of
Default, and any failure by Administrative Agent or the Lenders to exercise any right, privilege or remedy as a result of any
such condition, violation, Unmatured Initial Servicer Default, Initial Servicer Default, Unmatured Event of Default or Event
of Default shall not directly or indirectly in any way whatsoever either (i) impair, prejudice or otherwise adversely
affect the rights of Administrative Agent or the Lenders at any time to exercise any right, privilege or remedy in connection
with the Loan Agreement or any Transaction Document, (ii) amend or alter any provision of the Loan Agreement or any
Transaction Document or any other contract or instrument, or (iii) constitute any course of dealing or other basis for
altering any obligation of Borrower, Initial Servicer, Originators or Pledgor, or any rights, privilege or remedy of
Administrative Agent or the Lenders under the Loan Agreement or any Transaction Document or any other contract or
instrument.

 

     

     

    

 

[Execution Version]

 

Borrower, Initial Servicer,
Originators and Pledgor are hereby notified that irrespective of any waivers or consents previously granted by Administrative Agent
or Lenders regarding the Loan Agreement and the Transaction Documents, Borrower, Initial Servicer, Originators and Pledgor will
be expected to comply strictly with their duties, obligations and agreements under the Loan Agreement and the Transaction Documents.

 

Article
v

 

Ratifications, Representations
and Warranties

 

5.1       Ratifications.
The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth
in the Loan Agreement and the other Transaction Documents, and, except as expressly modified and superseded by this Amendment,
the terms and provisions of the Loan Agreement and the other Transaction Documents are ratified and confirmed and shall continue
in full force and effect. Borrower, Initial Servicer, Originators, Pledgor, Lenders and Administrative Agent agree that the Loan
Agreement and the other Transaction Documents shall continue to be legal, valid, binding and enforceable in accordance with their
respective terms. Each such party agrees that this Amendment is not intended to and shall not cause a novation with respect to
any or all of the obligations under the Loan Agreement.

 

5.2       Representations
and Warranties. Each of Borrower, Initial Servicer, Originators and Pledgor hereby represents and warrants to
Administrative Agent that (a) the execution, delivery and performance of this Amendment and any and all other Transaction
Documents executed and/or delivered in connection herewith have been authorized by all requisite action (as applicable) on
the part of such Person and will not violate the organizational documents of such Person; (b) the execution, delivery and
performance of this Amendment and any and all other Transaction Documents executed and/or delivered in connection herewith
has been fully and validly authorized by such Person; (c) other than the Existing Initial Servicer Default and Existing
Defaults (each as defined in the Limited Waiver), no Default or Event of Default under the Loan Agreement has occurred and is
continuing; (d) other than the Existing Initial Servicer Default and Existing Defaults (each as defined in the Limited
Waiver), each of Borrower, Initial Servicer, Originator and Pledgor is in full compliance in all material respects with all
covenants and agreements contained in the Loan Agreement and the other Transaction Documents; (e) except as disclosed to
Administrative Agent, none of Borrower, Initial Servicer, Originators or Pledgor has amended any of its organizational
documents since the date of the Loan Agreement; (f) prior to the date of this Amendment (i) the transactions contemplated by
the Membership Interest Purchase Agreement, dated as of March 16, 2020, by and among SourceHov Tax, LLC, Merco Holding, LLC,
Exela Technologies, Inc. and Gainline Intermediate Holdings LLC (the “Sale Transaction”) have been
consummated, and (ii) the Exela Parties received not less than $38,000,000 in cash in connection with the Sale Transaction
and (g) as of the date of this Amendment, Liquidity (as defined in this Amendment) exceeds $115,000,000.

 

     

     

    

 

 

[Execution Version]

 

Article
vI

 

Miscellaneous Provisions

 

6.1       Severability.
Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate
the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

6.2       Counterparts.
This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but
all of which when taken together shall constitute one and the same instrument. This Amendment may be executed by facsimile transmission,
which facsimile signatures shall be considered original executed counterparts for purposes of this Section 6.2, and each party
to this Amendment agrees that it will be bound by its own facsimile signature and that it accepts the facsimile signature of each
other party to this Amendment.

 

6.3       Headings.
The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

 

6.4       Applicable
Law. THIS AMENDMENT AND ALL OTHER TRANSACTION DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND
TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

6.5       Effectiveness.
This Amendment shall become effective upon the execution thereof by all parties and satisfaction of the conditions precedent set
forth in Article III, and shall cease to be effective (and the provisions of the Loan Agreement and each other Transaction
Document amended hereby shall revert to those in existence prior to the execution of this Amendment) at the close of business on
March 20, 2020 if the Borrower has not paid in full by March 20, 2020 all costs and expenses of the Administrative Agent (including
fees of legal counsel to the Administrative Agent) invoiced on or before March 18, 2020.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

     

     

    

 

IN WITNESS WHEREOF, this Amendment has
been executed and is effective as of the date first above-written.

 

	 	BORROWER:
	 	 
	 	EXELA RECEIVABLES 1, LLC
	 	 
	 	By:	 /s/ James Reynolds
	 	 	Name:	James Reynolds
	 	 	Title:	Chief Financial Officer
	 	 
	 	INITIAL SERVICER:
	 	 
	 	EXELA TECHNOLOGIES, INC.
	 	 
	 	By:	/s/ James Reynolds
	 	 	Name:	James G. Reynolds
	 	 	Title:	Chief Financial Officer

 

First Amendment to Loan and Security Agreement, First Tier
Purchase and Sale Agreement and Second Tier Purchase and Sale Agreement

 

     

     

    

 

	 	PLEDGOR:
	 	 
	 	EXELA RECEIVABLES HOLDCO, LLC,
	 	 
	 	By:	/s/ James Reynolds
	 	Name: James Reynolds
	 	Title:   Chief Financial Officer
	 	 
	 	ORIGINATORS:
	 	 
	 	BANCTEC, INC.,
	 	DELIVEREX, LLC
	 	ECONOMIC RESEARCH SERVICES, INC.
	 	EXELA ENTERPRISE SOLUTIONS, INC.,
	 	SOURCEHOV HEALTHCARE, INC.
	 	UNITED INFORMATION SERVICES, INC.,
	 	HOV ENTERPRISE SERVICES, INC.,
	 	HOV SERVICES, INC.,
	 	HOV SERVICES, LLC,
	 	J&B SOFTWARE, INC.,
	 	REGULUS GROUP II LLC,
	 	REGULUS GROUP LLC,
	 	REGULUS INTEGRATED SOLUTIONS LLC,
	 	SOURCECORP BPS INC.,
	 	SOURCECORP MANAGEMENT, INC.,
	 	NOVITEX GOVERNMENT SOLUTIONS, LLC,
	 	 
	 	By:	/s/ James Reynolds
	 	Name: James Reynolds
	 	Title:   Chief Financial Officer

 

First Amendment to Loan and Security Agreement, First Tier
Purchase and Sale Agreement and Second Tier Purchase and Sale Agreement

 

     

     

    

 

	 	ADMINISTRATIVE AGENT:
	 	 
	 	TPG SPECIALTY LENDING, INC.
	 	 
	 	By:	 /s/ Robert Stanley
	 	Name: Robert (Bo) Stanley
	 	Title:   President
	 	 
	 	 
	 	LENDERS:
	 	 
	 	TPG SPECIALTY LENDING, INC.
	 	 
	 	 
	 	By:	 /s/ Robert Stanley
	 	Name: Robert (Bo) Stanley
	 	Title:   President
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	 
	 	By:	/s/ Michael Brown
	 	Name: Michael Brown
	 	Title:   Senior Vice President

 

First Amendment to Loan and Security Agreement, First Tier
Purchase and Sale Agreement and Second Tier Purchase and Sale Agreement

 

     

     

    

 

Exhibit A

 

Form of Periodic
Report

 

First Amendment to Loan and Security Agreement, First Tier
Purchase and Sale Agreement and Second Tier Purchase and Sale Agreementmik_Ex4.5

		
			Exhibit 4.5
		

		
			 
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
		

		
			EXCHANGE ACT OF 1934
		

		
			 
		

		
			The following summary of the terms of our common stock is based upon our second amended and restated certificate of incorporation, as amended (our “Certificate of Incorporation”), and our amended and restated bylaws (our “Bylaws”). The summary is not complete, and is qualified by reference to our Certificate of Incorporation and our Bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. We encourage you to read our Certificate of Incorporation, our Bylaws, and the applicable provisions of the Delaware General Corporation Law for additional information.
		

		
			 
		

		
			The Michaels Companies, Inc. (“Michaels,” “we,” “our,” or “us”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, $0.06775 par value per share.
		

		
			 
		

		
			Authorized Shares of Capital Stock
		

		
			 
		

		
			Our total amount of our authorized capital stock consists of 350,000,000 shares of our common stock, par value $0.06775 per share, and 50,000,000 shares of preferred stock, par value $0.10 per share.
		

		
			 
		

		
			Listing
		

		
			 
		

		
			Our common stock is listed on The Nasdaq Global Select Market under the symbol “MIK.”
		

		
			 
		

		
			Voting Rights
		

		
			 
		

		
			Except as required by law or matters relating solely to the terms of preferred stock, each outstanding share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of shares of our common stock have no cumulative voting rights.
		

		
			 
		

		
			Preferences
		

		
			 
		

		
			Our board of directors (the “Board”) may, without further action by our stockholders, from time to time, direct the issuance of shares of preferred stock in series and may, at the time of issuance, determine the designations, powers, preferences, privileges, and relative participating, optional or special rights as well as the qualifications, limitations or restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights of the common stock. Satisfaction of any dividend preferences of outstanding shares of preferred stock would reduce the amount of funds available for the payment of dividends on shares of our common stock. Holders of shares of preferred stock may be entitled to receive a preference payment in the event of our liquidation before any payment is made to the holders of shares of our common stock. Under specified circumstances, the issuance of shares of preferred stock may render more difficult or tend to discourage a merger, tender offer or proxy contest, the assumption of control by a holder of a large block of our securities or the removal of incumbent management. Our Board, without stockholder approval, may issue shares of preferred stock with voting and conversion rights, which could adversely affect the holders of shares of our common stock and the market value of our common stock. Subject to the rights of the holders of shares of preferred stock, the number of authorized shares of preferred stock may be increased or decreased (but not below the number of shares thereof
		

		
			
		

		
			

		 

		

		
			then outstanding) by the affirmative vote of the holders of a majority of the voting power of the outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class. There are no shares of preferred stock currently outstanding.
		

		
			 
		

		
			Anti-takeover effects of our Certificate of Incorporation and Bylaws
		

		
			 
		

		
			Our Certificate of Incorporation and our Bylaws contain additional provisions that may delay, defer or discourage another party from acquiring control of us. We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with the Board, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders; however, these provisions also give the Board the power to discourage acquisitions that some stockholders may favor.
		

		
			 
		

		
			Authorized but unissued capital stock.  The General Corporation Law of the State of Delaware (the “DGCL”) does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of The Nasdaq Stock Market, which would apply as long as our common stock is listed on The Nasdaq Global Select Market, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or then outstanding number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.
		

		
			 
		

		
			One of the effects of the existence of authorized but unissued common stock or preferred stock may be to enable our Board to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive the stockholder of opportunities to sell their shares of common stock at prices higher than prevailing market prices.
		

		
			 
		

		
			Board of Directors. Our Certificate of Incorporation provides that the authorized number of directors may be changed only by resolution of the Board. Our Certificate of Incorporation also states that a director may be removed only for cause by the affirmative vote of the holders of at least 75% of our voting stock. Any vacancy on our Board, including a vacancy resulting from an enlargement of our Board, may be filled only by vote of a majority of our directors then in office.
		

		
			 
		

		
			Action by written consent.  Any action required or permitted to be taken by our stockholders may be effected only at a duly called annual or special meeting of our stockholders and may not be effected by any consent in writing by our stockholders.
		

		
			 
		

		
			Special meeting of stockholders and advance notice requirements for stockholder proposals. Our Certificate of Incorporation provides that, except as otherwise required by law and subject to any rights of the holders of preferred stock, special meetings of the stockholders can only be called by (a) our chairman or any vice chairman of the Board or (b) the Board pursuant to a written resolution adopted by a majority of the total number of directors that our Board would have if there were no vacancies.
		

		
			 
		

		
			In addition, our Bylaws require advance notice procedures for stockholder proposals to be brought before an annual meeting of the stockholders, including the nomination of directors. Stockholders at an annual meeting may only consider the proposals specified in the notice of
		

		
			
		

		
			

		 

		

			-2-

		

		

			 

		

		

		
			 
		

		
			meeting or brought before the meeting by or at the direction of the Board, or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting, who has delivered a timely written notice in proper form to our secretary of the stockholder’s intention to bring such business before the meeting, who attends (or has a qualified representative attend) the stockholder meeting and who has otherwise complied with the provisions of our Bylaws and applicable law.
		

		
			 
		

		
			These provisions could have the effect of delaying any stockholder actions until the next stockholder meeting, even if they are favored by the holders of a majority of our outstanding voting stock.
		

		
			 
		

		
			Amendment to Certificate of Incorporation and Bylaws. The DGCL provides generally that the affirmative vote of a majority of the outstanding stock entitled to vote on amendments to a corporation’s certificate of incorporation or bylaws is required to approve such amendment, unless a corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our Bylaws may be altered, amended or repealed by a majority vote of our Board or, in addition to any other vote otherwise required by law, the affirmative vote of at least 75% of our outstanding common stock. Additionally, the affirmative vote of at least 75% of the voting power of our outstanding shares of common stock entitled to vote on the adoption, alteration, amendment or repeal of our Certificate of Incorporation, voting as a single class, is required to amend or repeal or to adopt any provision inconsistent with the “Board of Directors”, “Director Liability”, “Action by Written Consent”, “Special Meetings of Stockholders”, “Amendments to the Certificate of Incorporation and Bylaws”, “Business Combinations”, “Renouncement of Corporate Opportunity” and “Exclusive Jurisdiction of Certain Actions” provisions described in our Certificate of Incorporation. These provisions may have the effect of deferring, delaying or discouraging the removal of any anti-takeover defenses provided for in our Certificate of Incorporation and our Bylaws.
		

		
			 
		

		
			Business combinations.  We have elected in our Certificate of Incorporation not to be subject to Section 203 of the DGCL, an antitakeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination, such as a merger, with a person or group owning 15% or more of the corporation’s voting stock for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Accordingly, we are not subject to any anti-takeover effects of Section 203. However, our Certificate of Incorporation contains provisions that have the same effect as Section 203, except that they provide that investment funds affiliated with Bain Capital Partners, LLC and The Blackstone Group L.P., and their respective successors and affiliates (collectively, the “Sponsors”), will not be deemed to be “interested stockholders”, regardless of the percentage of our voting stock owned by them and accordingly will not be subject to such restrictions.
		

		
			 
		

		
			Renouncement of corporate opportunity
		

		
			 
		

		
			Our Certificate of Incorporation provides that we renounce any interest or expectancy in, or in being offered an opportunity to participate in, any business opportunity that may from time to time be presented to the Sponsors or any of their respective officers, directors, agents, stockholders, members, partners, affiliates and subsidiaries (other than us and our subsidiaries) and that may be a business opportunity for the Sponsors, even if the opportunity is one that we might reasonably have pursued or had the ability or desire to pursue if granted the opportunity to do so. No such person will be liable to us for breach of any fiduciary or other duty, as a director or officer or otherwise, by reason of the fact that such
		

		
			
		

		
			

		 

		

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			person, acting in good faith, pursues or acquires any such business opportunity, directs any such business opportunity to another person or fails to present any such business opportunity, or information regarding any such business opportunity, to us unless, in the case of any such person who is our director or officer, any such business opportunity is expressly offered to such director or officer solely in his or her capacity as our director or officer. None of the Sponsors, any of the investment funds associated with the Sponsors or any of their respective representatives has any duty to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as us or any of our subsidiaries.
		

		
			 
		

		
			Exclusive jurisdiction of certain actions
		

		
			 
		

		
			Our Certificate of Incorporation requires, to the fullest extent permitted by law, that (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or our stockholders, (iii) any action asserting a claim against the Company arising pursuant to any provision of the DGCL or our Certificate of Incorporation or our Bylaws or (iv) any action asserting a claim against the Company governed by the internal affairs doctrine will have to be brought only in the Court of Chancery in the State of Delaware. Although we believe this provision benefits the Company by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.
		

		
			 
		

		
			Limitations on liability and indemnification of officers and directors
		

		
			 
		

		
			Our Certificate of Incorporation and our Bylaws limit the liability of our directors to the fullest extent permitted by applicable law and provide that we will indemnify them to the fullest extent permitted by such law. We have entered into indemnification agreements with our current directors and executive officers and expect to enter into a similar agreement with any new directors or executive officers.
		

		
			 
		

		
			Transfer Agent and Registrar
		

		
			 
		

		
			The transfer agent and registrar for our common stock is Computershare Trust Company, N.A. Its address is P.O. Box 30170, College Station, TX 77842-3170.
		

		
			 
		

		 

		

			-4-

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