Document:

tpc_EX_10_4

		

			EXHIBIT 10.4

		

		

			 

		

		

			Execution Version

		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			ASSET PURCHASE AGREEMENT
		

		
			between
		

		
			ROCKPILE ENERGY SERVICES, LLC
		

		
			and
		

		
			ROCKPILE NEWCO, LLC
		

		
			dated as of
		

		
			September 8, 2016
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article I DEFINITIONS

					
1 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article II PURCHASE AND SALE

					
11 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 2.01

					
					
						Purchase and Sale of Assets

					
11 
				
	
					
						 

					
					
						Section 2.02

					
					
						Excluded Assets

					
13 
				
	
					
						 

					
					
						Section 2.03

					
					
						Assumed Liabilities

					
14 
				
	
					
						 

					
					
						Section 2.04

					
					
						Excluded Liabilities

					
14 
				
	
					
						 

					
					
						Section 2.05

					
					
						Base Purchase Price

					
15 
				
	
					
						 

					
					
						Section 2.06

					
					
						Purchase Price Adjustment

					
15 
				
	
					
						 

					
					
						Section 2.07

					
					
						Allocation of Purchase Price

					
17 
				
	
					
						 

					
					
						Section 2.08

					
					
						Non-assignable Assets

					
17 
				
	
					
						 

					
					
						Section 2.09

					
					
						Indemnification Escrow

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article III CLOSING

					
18 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 3.01

					
					
						Closing

					
18 
				
	
					
						 

					
					
						Section 3.02

					
					
						Closing Deliverables

					
18 
				
	
					
						 

					
					
						Section 3.03

					
					
						Explosives Assets; Radio Assets; Radioactive Assets

					
20 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article IV REPRESENTATIONS AND WARRANTIES OF SELLER

					
20 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 4.01

					
					
						Organization and Qualification of Seller

					
20 
				
	
					
						 

					
					
						Section 4.02

					
					
						Authority of Seller

					
21 
				
	
					
						 

					
					
						Section 4.03

					
					
						No Conflicts; Consents

					
21 
				
	
					
						 

					
					
						Section 4.04

					
					
						Financial Statements

					
21 
				
	
					
						 

					
					
						Section 4.05

					
					
						Absence of Certain Changes, Events and Conditions

					
22 
				
	
					
						 

					
					
						Section 4.06

					
					
						Material Contracts

					
22 
				
	
					
						 

					
					
						Section 4.07

					
					
						Title to Tangible Personal Property

					
23 
				
	
					
						 

					
					
						Section 4.08

					
					
						Sufficiency of Assets

					
23 
				
	
					
						 

					
					
						Section 4.09

					
					
						Real Property

					
23 
				
	
					
						 

					
					
						Section 4.10

					
					
						Intellectual Property

					
24 
				
	
					
						 

					
					
						Section 4.11

					
					
						Legal Proceedings; Governmental Orders

					
25 
				
	
					
						 

					
					
						Section 4.12

					
					
						Permits

					
25 
				
	
					
						 

					
					
						Section 4.13

					
					
						Environmental Matters

					
25 
				
	
					
						 

					
					
						Section 4.14

					
					
						Employee Matters

					
26 
				
	
					
						 

					
					
						Section 4.15

					
					
						Taxes

					
28 
				
	
					
						 

					
					
						Section 4.16

					
					
						Compliance with Laws

					
28 
				
	
					
						 

					
					
						Section 4.17

					
					
						Absence of Undisclosed Liabilities

					
28 
				
	
					
						 

					
					
						Section 4.18

					
					
						No Affiliate Transactions

					
28 
				
	
					
						 

					
					
						Section 4.19

					
					
						Brokers

					
28 
				
	
					
						 

					
					
						Section 4.20

					
					
						Reasonably Equivalent Value

					
29 
				
	
					
						 

					
					
						Section 4.21

					
					
						DISCLAIMERS

					
29 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		 

		

			i

		

 

	
					
						

					
						Article V REPRESENTATIONS AND WARRANTIES OF BUYER

					
29 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 5.01

					
					
						Organization and Qualification of Buyer

					
30 
				
	
					
						 

					
					
						Section 5.02

					
					
						Authority of Buyer

					
30 
				
	
					
						 

					
					
						Section 5.03

					
					
						No Conflicts; Consents

					
30 
				
	
					
						 

					
					
						Section 5.04

					
					
						Brokers

					
30 
				
	
					
						 

					
					
						Section 5.05

					
					
						Sufficiency of Funds

					
30 
				
	
					
						 

					
					
						Section 5.06

					
					
						Solvency

					
31 
				
	
					
						 

					
					
						Section 5.07

					
					
						Legal Proceedings

					
31 
				
	
					
						 

					
					
						Section 5.08

					
					
						Independent Investigation

					
31 
				
	
					
						 

					
					
						Section 5.09

					
					
						Representation and Warranty Insurance

					
31 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article VI COVENANTS

					
32 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 6.01

					
					
						Certain Employee Matters

					
32 
				
	
					
						 

					
					
						Section 6.02

					
					
						Confidentiality

					
35 
				
	
					
						 

					
					
						Section 6.03

					
					
						Public Announcements

					
36 
				
	
					
						 

					
					
						Section 6.04

					
					
						Bulk Sales Laws

					
36 
				
	
					
						 

					
					
						Section 6.05

					
					
						Taxes

					
36 
				
	
					
						 

					
					
						Section 6.06

					
					
						Further Assurances

					
36 
				
	
					
						 

					
					
						Section 6.07

					
					
						Mail

					
37 
				
	
					
						 

					
					
						Section 6.08

					
					
						Intracompany Arrangements

					
37 
				
	
					
						 

					
					
						Section 6.09

					
					
						Release of Seller Guarantees

					
37 
				
	
					
						 

					
					
						Section 6.10

					
					
						Insurance

					
37 
				
	
					
						 

					
					
						Section 6.11

					
					
						Surveys and Title Policy

					
37 
				
	
					
						 

					
					
						Section 6.12

					
					
						Use of Business Name

					
38 
				
	
					
						 

					
					
						Section 6.13

					
					
						No Acts of Bankruptcy

					
38 
				
	
					
						 

					
					
						Section 6.14

					
					
						Permit Coordination and Related Activities

					
38 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article VII INDEMNIFICATION

					
39 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 7.01

					
					
						Indemnification by Seller

					
39 
				
	
					
						 

					
					
						Section 7.02

					
					
						Indemnification by Buyer

					
40 
				
	
					
						 

					
					
						Section 7.03

					
					
						Limitations

					
40 
				
	
					
						 

					
					
						Section 7.04

					
					
						Notice and Defense of Third-Party Claims

					
42 
				
	
					
						 

					
					
						Section 7.05

					
					
						Insurance Proceeds

					
43 
				
	
					
						 

					
					
						Section 7.06

					
					
						Express Negligence; Limitations on Defense to the Claims of Buyer

					
43 
				
	
					
						 

					
					
						Section 7.07

					
					
						Qualifications

					
43 
				
	
					
						 

					
					
						Section 7.08

					
					
						Representation and Warranty Insurance

					
43 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article VIII MISCELLANEOUS

					
44 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Section 8.01

					
					
						Expenses

					
44 
				
	
					
						 

					
					
						Section 8.02

					
					
						Notices

					
44 
				
	
					
						 

					
					
						Section 8.03

					
					
						Interpretation

					
45 
				
	
					
						 

					
					
						Section 8.04

					
					
						Headings

					
45 
				
	
					
						 

					
					
						Section 8.05

					
					
						Severability

					
45 
				
	
					
						 

					
					
						Section 8.06

					
					
						Entire Agreement

					
45 
				

		 

		

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						Section 8.07

					
					
						Successors and Assigns

					
45 
				
	
					
						 

					
					
						Section 8.08

					
					
						No Third Party Beneficiaries

					
46 
				
	
					
						 

					
					
						Section 8.09

					
					
						Amendment and Modification; Waiver

					
46 
				
	
					
						 

					
					
						Section 8.10

					
					
						Governing Law; Submission to Jurisdiction; Waiver of Jury Trial

					
46 
				
	
					
						 

					
					
						Section 8.11

					
					
						Specific Performance

					
47 
				
	
					
						 

					
					
						Section 8.12

					
					
						Counterparts

					
47 
				
	
					
						 

					
					
						Section 8.13

					
					
						Non-recourse

					
47 
				
	
					
						 

					
					
						Section 8.14

					
					
						NO SPECIAL DAMAGES

					
48 
				

		
			 
		

			
					
						 

					
					
						 

				

		 

		

			iii

		

 

	
					
						EXHIBITS

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Exhibit A

					
					
						Sample Closing Statement

				
	
					
						 

					
					
						 

				
	
					
						SCHEDULES

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Schedule 1.01(a)

					
					
						Permitted Encumbrances

				
	
					
						Schedule 1.01(b)

					
					
						Retained Employees

				
	
					
						Schedule 1.01(c)

					
					
						Seller's Knowledge

				
	
					
						Schedule 2.01(d)

					
					
						Vehicles

				
	
					
						Schedule 2.01(e)

					
					
						Owned Equipment

				
	
					
						Schedule 2.01(f)

					
					
						Leased Equipment

				
	
					
						Schedule 2.01(l)

					
					
						Assigned Contracts

				
	
					
						Schedule 2.02(i)

					
					
						Related Party Agreements

				
	
					
						Schedule 2.02(n)

					
					
						Excluded Assets

				
	
					
						Schedule 2.03

					
					
						Assumed Liabilities

				
	
					
						Schedule 4.01

					
					
						Organization and Qualification of Seller

				
	
					
						Schedule 4.02

					
					
						Authority

				
	
					
						Schedule 4.03

					
					
						No Conflicts; Consents of Seller

				
	
					
						Schedule 4.04

					
					
						Financial Statements

				
	
					
						Schedule 4.05

					
					
						Absence of Changes

				
	
					
						Schedule 4.06

					
					
						Material Contracts

				
	
					
						Schedule 4.07

					
					
						Encumbrances

				
	
					
						Schedule 4.08

					
					
						Sufficiency of the Assets

				
	
					
						Schedule 4.09

					
					
						Real Property

				
	
					
						Schedule 4.10

					
					
						Intellectual Property

				
	
					
						Schedule 4.11

					
					
						Legal Proceedings

				
	
					
						Schedule 4.12

					
					
						Permits

				
	
					
						Schedule 4.13

					
					
						Environmental Matters

				
	
					
						Schedule 4.14

					
					
						Employee Matters

				
	
					
						Schedule 4.15

					
					
						Taxes

				
	
					
						Schedule 4.16

					
					
						Compliance with Laws

				
	
					
						Schedule 4.18

					
					
						Affiliate Transactions

				
	
					
						Schedule 4.19

					
					
						Brokers

				
	
					
						Schedule 5.01

					
					
						Organization and Qualification of Buyer

				
	
					
						Schedule 5.02

					
					
						Authority of Buyer

				
	
					
						Schedule 5.03

					
					
						No Conflicts; Consents of Buyer

				
	
					
						Schedule 5.04

					
					
						Brokers

				
	
					
						Schedule 5.05

					
					
						Sufficiency of Funds

				
	
					
						Schedule 5.06

					
					
						Solvency

				
	
					
						Schedule 5.07

					
					
						Legal Proceedings

				
	
					
						Schedule 5.08

					
					
						Independent Investigation

				
	
					
						Schedule 5.09

					
					
						Representation and Warranty Insurance

				
	
					
						Schedule 6.01(l)

					
					
						Warn Act

				
	
					
						Schedule 6.08

					
					
						Intracompany Arrangements

				
	
					
						Schedule 6.09

					
					
						Guarantees

				

		
			 
		

		
			 
		

		
			

		 

		

			iv

		

 

		

			 

		

		

		
			ASSET PURCHASE AGREEMENT
		

		
			 
		

		
			This Asset Purchase Agreement (this "Agreement"), dated as of September 8, 2016, is entered into between RockPile Energy Services, LLC, a Delaware limited liability company ("Seller"), and RockPile Newco, LLC, a Colorado limited liability company ("Buyer").  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in Article I.
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, Seller and its Subsidiaries are in the business of providing completion services to oil and natural gas exploration and production companies (the "Business"); and
		

		
			 
		

		
			WHEREAS, Seller wishes to (and to cause its Subsidiaries to) sell and assign to Buyer, and Buyer wishes to purchase and acquire from Seller and its Subsidiaries, all of Seller's and its Subsidiaries' rights, title and interest in and to, the Purchased Assets of the Business, and in connection therewith Buyer shall assume all of the Assumed Liabilities, in each case subject to the terms and conditions set forth herein.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		

		
			 
		

		
			ARTICLE I
		

		
			 
		

		
			DEFINITIONS
		

		
			 
		

		
			The following terms have the meanings specified or referred to in this Article I:
		

		
			 
		

		
			"Accountant" has the meaning set forth in Section 2.06(d).
		

		
			 
		

		
			"Act of Bankruptcy" by a party hereto shall consist of such Party filing a voluntary petition or otherwise commencing an action seeking reorganization, arrangement, composition, readjustment, liquidation, or similar relief under either Chapter 7, 11, 12 or 13 of Title 11 of the United States Code or any other federal or state bankruptcy or insolvency law or statute.
		

		
			 
		

		
			"Adjustment Amount" means the positive or negative amount, expressed in dollars, of (a) the aggregate amount of all accounts receivable transferred to Buyer pursuant to Section 2.01(a),  plus (b) the aggregate amount of all Inventory transferred to Buyer pursuant to Section 2.01(h),  plus (c) the aggregate amount of all credits, deposits and prepaid expenses transferred to Buyer pursuant to Section 2.01(i),  plus (d) the aggregate amount of all other current assets transferred to Buyer pursuant to Section 2.01,  minus (e) the aggregate amount of all accounts payable, accrued expenses (including accrued Property Taxes (pursuant to Section 6.05(a))), accrued payroll and deferred revenue assumed by Buyer pursuant to Section 2.03; provided that, in the case of each of (a), (b), (c), (d) and (e), all such amounts are determined on a dollar-for-dollar basis, without applying any discount.
		

		
			 
		

		
			"Adjustment Amount Escrow Agreement" has the meaning set forth in Section 2.06(e).
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			"Adjustment Amount Escrow Account" has the meaning set forth in Section 2.06(e).
		

		
			 
		

		
			"Adjustment Escrow Amount" means One Million Dollars ($1,000,000).
		

		
			 
		

		
			"Affiliate" means, with respect to any Person, any other Person directly or indirectly controlled by, controlling, or under common control with such Person; and for purposes of this definition, "control" (including the concept of "control" when used in the terms "controlled by" and "controlled") means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of such other Person, whether through the ownership of voting securities, by agreement or otherwise.
		

		
			 
		

		
			"Agreement" has the meaning set forth in the preamble.
		

		
			 
		

		
			"Allocation Schedule" has the meaning set forth in Section 2.07.
		

		
			 
		

		
			"Assigned Contracts" has the meaning set forth in Section 2.01(l).
		

		
			 
		

		
			"Assumed Liabilities" has the meaning set forth in Section 2.03.
		

		
			 
		

		
			"Audited Financial Statements" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Balance Sheet" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Balance Sheet Date" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Base Purchase Price" has the meaning set forth in Section 2.05.
		

		
			 
		

		
			"Books and Records" has the meaning set forth in Section 2.01(m).
		

		
			 
		

		
			"Business" has the meaning set forth in the preamble.
		

		
			 
		

		
			"Business Day" means any day except for Saturday, Sunday or any day on which banks located in Houston, Texas are authorized or obligated to close.
		

		
			 
		

		
			"Business Employee" has the meaning set forth in Section 4.14(a).
		

		
			 
		

		
			"Business Name" means Seller's name "RockPile Energy Services, LLC," each of Seller's Subsidiaries' names, including "RockPile Energy Real Estate, LLC," "RockPile Logistics Services, LLC," "RockPile Chemical Services, LLC," "RockPile Rig Services, LLC," "Pinnacle Testing Services, LLC," "RockPile Wireline Services, LLC," "RockPile Pump Rental Services, LLC," "RockPile Management, LLC" and "RockPile Management Holdings, LLC," and any and all variants and derivations of such names.
		

		
			 
		

		
			"Business Permits" has the meaning set forth in Section 2.01(j).
		

		
			 
		

		
			"Buyer" has the meaning set forth in the preamble.
		

		
			 
		

		
			"Buyer 401(k) Plan" has the meaning set forth in Section 6.01(g).
		

		
			 
		

		
			

		 

		

			2

		

 

		

			 

		

		

		
			"Buyer Disclosure Schedules" means the disclosure schedules delivered by Buyer concurrently with the execution and delivery of this Agreement.
		

		
			 
		

		
			"Buyer Indemnified Persons" has the meaning set forth in Section 7.01.
		

		
			 
		

		
			"Closing" has the meaning set forth in Section 3.01.
		

		
			 
		

		
			"Closing Date" has the meaning set forth in Section 3.01.
		

		
			 
		

		
			"Closing Employee" means each Business Employee who is not a Retained Employee.
		

		
			 
		

		
			"Closing Purchase Price" means (a) the Base Purchase Price plus (b) the amount by which the Estimated Adjustment Amount is greater than the Target Amount minus (c) the amount by which the Estimated Adjustment Amount is less than the Target Amount.
		

		
			 
		

		
			"Closing Statement" has the meaning set forth in Section 2.06(a).
		

		
			 
		

		
			"Closing Transferee" has the meaning set forth in Section 6.01(a).
		

		
			 
		

		
			"Code" means the Internal Revenue Code of 1986, as amended.
		

		
			 
		

		
			"Conclusive Adjustment Amount" has the meaning set forth in Section 2.06(d).
		

		
			 
		

		
			"Confidential Information" has the meaning set forth in Section 6.02.
		

		
			 
		

		
			"Contracts" means all legally binding written contracts, purchase orders, leases, mortgages, licenses, instruments, notes, commitments, undertakings, indentures and other agreements.
		

		
			 
		

		
			"Deductible" has the meaning set forth in Section 7.03(b)(i).
		

		
			 
		

		
			"Disclosure Schedules" means the Buyer Disclosure Schedules and the Seller Disclosure Schedules.
		

		
			 
		

		
			"Disputed Items" has the meaning set forth in Section 2.06(d).
		

		
			 
		

		
			"Dollar" or "$" means the lawful currency of the United States.
		

		
			 
		

		
			"Employee Plan" has the meaning set forth in Section 4.14(b).
		

		
			 
		

		
			"Employment Transfer Date" has the meaning set forth in Section 6.01(a).
		

		
			 
		

		
			"Encumbrance" means any lien, pledge, mortgage, deed of trust, security interest, charge, claim, easement, encroachment or other similar encumbrance.
		

		
			 
		

		
			"Environmental Claim" means any Governmental Order, action, suit, or claim by any Person alleging liability arising out of, based on or resulting from: (a) the actual or alleged Release, use, or presence of, or exposure to, any Hazardous Materials; or (b) any actual or 

		 

		

			3

		

 

		

			 

		

alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.
		

		
			 
		

		
			"Environmental Law" means any applicable Law: (a) relating to pollution (or the cleanup thereof) or the protection of natural resources, the protection of  human health or safety (as relates to exposure to Hazardous Materials), or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b) concerning the manufacture, use, recycling, reclamation, reuse, treatment, generation, discharge, transportation,  disposal or remediation of any Hazardous Materials. The term "Environmental Law" includes the following (including their implementing regulations and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §§ 651 et seq.
		

		
			 
		

		
			"Environmental Permit" means any Permit required for the ownership, use or operation of the Purchased Assets or the conduct of the Business as of the Closing under applicable Environmental Laws.
		

		
			 
		

		
			"ERISA" has the meaning set forth in Section 4.14(b)(i).
		

		
			 
		

		
			"ERISA Affiliate" has the meaning set forth in Section 4.14(b)(iii).
		

		
			 
		

		
			"Escrow Agent" means JPMorgan Chase Bank, N.A.
		

		
			 
		

		
			"Escrow Agreements" means the Indemnification Escrow Agreement and the Adjustment Amount Escrow Agreement.
		

		
			 
		

		
			"Escrow Amount" means the Adjustment Escrow Amount and the Indemnity Escrow Amount.
		

		
			 
		

		
			"Estimated Adjustment Amount" has the meaning set forth in Section 2.06(a).
		

		
			 
		

		
			"Excluded Assets" has the meaning set forth in Section 2.02.
		

		
			 
		

		
			"Excluded Liabilities" has the meaning set forth in Section 2.04.
		

		
			 
		

		
			"Explosives Assets" means explosive magazines, well perforating explosives and explosive jet cutters.
		

		
			 
		

		
			"Explosives Permit" means a Federal Explosives License issued by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, relating to the Explosives Assets.
		

		
			 
		

		
			

		 

		

			4

		

 

		

			 

		

		

		
			"Financial Statements" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Fundamental Representation" means any representation or warranty of (a) Seller set forth in Sections 4.01 (Organization and Qualification of Seller), 4.02 (Authority of Seller), 4.07 (Title to Tangible Personal Property), 4.09(a)(i) (Title to Owned Real Property), 4.19 (Brokers) and 4.20 (Purchased Equity), or (b) Buyer set forth in Sections 5.01 (Organization and Qualification of Buyer), 5.02 (Authority of Buyer) and 5.04 (Brokers).
		

		
			 
		

		
			"Fundamental Survival Date" mean the date that is the eighteen (18) month anniversary following the Closing Date.
		

		
			 
		

		
			"Funded Debt" of Seller as of any date means (i) all obligations of Seller and its Subsidiaries for borrowed money (including capitalized leases but excluding any inter-company obligations for borrowed money, any trade payables, accounts payable and any other current Liabilities reflected in the calculation of Conclusive Adjustment Amount); (ii) all obligations of Seller and its Subsidiaries evidenced by bonds, debentures, notes or other similar instruments (including, without limitation, any seller notes, deferred purchase price obligations or earn-out obligations issued or entered into in connection with any acquisition undertaken by Seller and its Subsidiaries); (iii) all obligations in respect of letters of credit, solely to the extent drawn prior to Closing, and bankers' acceptances issued for the account of Seller and its Subsidiaries; and (iv) any accrued interest, prepayment premiums or penalties related to any of the foregoing.
		

		
			 
		

		
			"GAAP" means United States generally accepted accounting principles consistently applied from period to period and throughout any period in accordance with the past practices of Seller.
		

		
			 
		

		
			"General Survival Date" means the date that is the six (6) month anniversary following the Closing Date.
		

		
			 
		

		
			"Governmental Authority" means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.
		

		
			 
		

		
			"Governmental Order" means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.
		

		
			 
		

		
			"Hazardous Materials" means any chemicals, materials or substances defined as or included in the definition of "hazardous substances", "hazardous wastes", "hazardous materials", "hazardous constituents", "restricted hazardous materials", "extremely hazardous substances", "toxic substances", "contaminants", "pollutants", "toxic pollutants", or words of similar meaning and regulatory effect under any applicable Environmental Law, including petroleum and asbestos.
		

		
			 
		

		
			"Hired Employees" has the meaning set forth in Section 6.01(a).
		

		
			 
		

		
			

		 

		

			5

		

 

		

			 

		

		

		
			"Indemnification Escrow Agreement" has the meaning set forth in Section 2.09.
		

		
			 
		

		
			"Indemnified Person" has the meaning set forth in Section 7.04.
		

		
			 
		

		
			"Indemnifying Person" has the meaning set forth in Section 7.04.
		

		
			 
		

		
			"Indemnity Cap" has the meaning set forth in Section 7.03(b).
		

		
			 
		

		
			"Indemnity Escrow Account" has the meaning set forth in Section 2.09.
		

		
			 
		

		
			"Indemnity Escrow Amount" has the meaning set forth in Section 2.09.
		

		
			 
		

		
			"Instrument of Transfer" has the meaning set forth in Section 3.02(a)(i).
		

		
			 
		

		
			"Intellectual Property" means all intellectual property and industrial property rights in any jurisdiction throughout the world, including the following: (a) trademarks, trade names, logos, service marks, internet domain name registrations and other similar designations of source or origin, including all applications and registrations therefor and the goodwill connected with the use of and symbolized by the foregoing; (b) copyrights, including all applications and registrations therefor; (c) trade secrets and other confidential know-how, information, ideas, inventions, proprietary processes, formulae, models, and methodologies; (d) patents and patent applications, and all continuations, continuations-in-part, divisionals, reissues, re-examinations, substitutions, and extensions thereof; and (e) all rights and remedies against past, present, and future infringement, misappropriation, or other violation thereof.
		

		
			 
		

		
			"Intellectual Property Agreements" means all written licenses, sublicenses and other written agreements by or through which other Persons grant Seller (or any of its Subsidiaries) or Seller (or any of its Subsidiaries) grants any other Persons any exclusive or non-exclusive rights or interests in or to any Intellectual Property.
		

		
			 
		

		
			"Intellectual Property Assets" means all Intellectual Property that is owned by Seller or any of its Subsidiaries.
		

		
			 
		

		
			"Intellectual Property Registrations" has the meaning set forth in Section 4.10(a).
		

		
			 
		

		
			"Interim Balance Sheet" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Interim Balance Sheet Date" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Interim Financial Statements" has the meaning set forth in Section 4.04.
		

		
			 
		

		
			"Inventory" has the meaning set forth in Section 2.01(h).
		

		
			 
		

		
			"Landlord Estoppel Certificate" has the meaning set forth in Section 3.02(a)(vi).
		

		
			 
		

		
			"Law" means each applicable provision of any constitution, statute, law, ordinance, code, rule, regulation, judgment, release, license or other official legally binding pronouncement of any Governmental Authority.
		

		
			

		 

		

			6

		

 

		

			 

		

		

		
			"Lease Agreement" means that certain Lease Agreement dated as of the date hereof by and between Buyer and Seller.
		

		
			 
		

		
			"Leased Equipment" has the meaning set forth in Section 2.01(f).
		

		
			 
		

		
			"Leased Real Property" has the meaning set forth in Section 4.09(b).
		

		
			 
		

		
			"Liabilities" means any debt, obligation, duty or liability of any nature (including any unknown, undisclosed, unfixed, unliquidated, unsecured, unmatured, unaccrued, unasserted, contingent, conditional, inchoate, implied, vicarious, joint, several or secondary liability), STRICT LIABILITY (INCLUDING, WITHOUT LIMITATION, STRICT LIABILITY ARISING UNDER ENVIRONMENTAL LAW).
		

		
			 
		

		
			"Losses" means, except as may be limited by Section 8.14, actual out-of-pocket losses, damages, Liabilities, costs or expenses, including reasonable attorneys' fees, after taking into account any insurance recoveries with respect to such losses, damages, Liabilities, costs and expenses.
		

		
			 
		

		
			"Material Adverse Effect" means any event, occurrence, fact, condition or change that is materially adverse to the results of operations of Seller and its Subsidiaries, taken as a whole; provided, however, that none of the following shall be deemed, either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there has been, will be, would or could be, or could or would reasonably be expected to have or result in, a "Material Adverse Effect": (a) general economic, market or political conditions; (b) any adverse change, effect, event, occurrence, state of facts or development attributable to conditions affecting (i) the industries in which Seller and its Subsidiaries operate (including fluctuating conditions resulting from cyclicality, seasonality or weather patterns affecting Seller and its Subsidiaries or the Business, including their customers and suppliers) or (ii) national, regional or local economies or the global economy; (c) any changes in financial, banking or securities markets in general, including any disruption thereof and any decline in the price of any security or any market index or any change in prevailing interest rates; (d) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the written consent of or at the written request of Buyer; (e) any matter set forth in the Disclosure Schedules; (f) any changes in applicable Laws or accounting rules (including GAAP) or the enforcement, implementation or interpretation thereof; (g) the execution or announcement of this Agreement or the announcement, pendency or completion of the transactions contemplated by this Agreement, including any cancellations or threatened cancellations of, or delays in, customer orders, any reduction in sales, or any losses or threatened losses of employees, customers, suppliers, distributors or others having relationships with Seller, any of its Subsidiaries or the Business, or any adverse change with respect to any of the foregoing; (h) natural disasters or acts of nature, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war (whether or not declared), sabotage or terrorism or military actions existing or underway as of the date hereof; (i) any downgrade (actual, announced or contemplated) by any rating agencies with respect to any indebtedness of any of Seller or its Affiliates; (j) any adverse change, effect, event, occurrence, state of facts or development arising from or relating to actions required to be taken under applicable Laws or Contracts in effect on the date hereof; (k) any Permitted Encumbrance; or (l) any failure by any 
		

		
			

		 

		

			7

		

 

		

			 

		

of Seller and its Subsidiaries or the Business to meet any internal or published projections, forecasts or revenue or earnings predictions (provided that the underlying causes of such failures (subject to the other provisions of this definition) shall not be excluded); provided, that in the case of (a), (b) or (c), such change, event, development, or effect does not disproportionately affect in any material respect the Business or Purchased Assets as compared to other similar assets in the industry in which the Business operates.
		

		
			 
		

		
			"Material Contracts" has the meaning set forth in Section 4.06(a).
		

		
			 
		

		
			"North Dakota Audit" means that certain sales and use tax audit of Seller conducted by the State of North Dakota for the period beginning June 2012 through May 2015.
		

		
			 
		

		
			"Objections Statement" has the meaning set forth in Section 2.06(d).
		

		
			 
		

		
			"Owned Equipment" has the meaning set forth in Section 2.01(e).
		

		
			 
		

		
			"Owned Real Property" has the meaning set forth in Section 4.09(a).
		

		
			 
		

		
			"Permits" means all permits, licenses, franchises, approvals, authorizations and consents required to be obtained from Governmental Authorities, and relevant applications for the same.
		

		
			 
		

		
			"Permitted Encumbrances" means: (a) Encumbrances for Taxes, assessments or other governmental charges or levies that are not yet due and payable or due but not delinquent or that are being contested in good faith by appropriate Proceedings and for which adequate reserves have been maintained in accordance with GAAP; (b) statutory Encumbrances of landlords and Encumbrances of carriers, warehousemen, mechanics, materialmen, repairmen and other Encumbrances imposed by Law for amounts not yet due or due but not delinquent or being contested in good faith by appropriate Proceedings; (c) Encumbrances incurred or deposits made to a Governmental Authority in connection with a Permit; (d) Encumbrances incurred or deposits made in the ordinary course of business in connection with workers' compensation, unemployment insurance or other types of social security; (e) easements, rights-of-way, covenants, conditions, restrictions, licenses, reservations, subdivisions, encroachments and rights of others for rights-of-way, utilities and other similar purposes which do not, individually or in the aggregate, materially interfere with the present use of the Real Property; (f) Encumbrances not created by Seller that affect the underlying fee interest of any Leased Real Property; (g) Encumbrances incurred in the ordinary conduct of the Business securing Liabilities that are not individually or in the aggregate material to the relevant asset or property; (h) minor defects of title which do not, individually or in the aggregate, have a material adverse effect on the present use of the Real Property; (i) all licenses, covenants not to assert and other grants of rights with respect to Intellectual Property; (j) zoning, building, subdivision, land use, environmental regulations and other similar restrictions or requirements; (k) Encumbrances resulting from any facts or circumstances caused by Buyer or its Affiliates; (l) any set of facts an accurate up-to-date survey would show; (m) the terms of the Real Property Leases; and (n) the Encumbrances set forth in Section 1.01(a) of the Seller Disclosure Schedules.
		

		
			 
		

		
			"Person" means any individual, sole proprietorship, partnership, joint venture, corporation, estate, trust, unincorporated organization, association, limited liability company, institution or other entity, including any Governmental Authority.
		

		
			 
		

		
			

		 

		

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			"Post-Closing Statement" has the meaning set forth in Section 2.06(b).
		

		
			 
		

		
			"Proceeding" means any action, suit, claim, investigation or other legal proceeding conducted by or pending before any Governmental Authority.
		

		
			 
		

		
			"Property Taxes" has the meaning set forth in Section 6.05(b).
		

		
			 
		

		
			"Purchased Assets" has the meaning set forth in Section 2.01.
		

		
			 
		

		
			"Radio Assets" means handheld radio devices operated under the Radio Permit.
		

		
			 
		

		
			"Radio Permit" means a Radio Station Authorization issued by the United States Federal Communications Commission, relating to the Radio Assets.
		

		
			 
		

		
			"Radioactive Assets" means densitometers.
		

		
			 
		

		
			"Radioactive Permits" means a North Dakota Radioactive Materials License issued by the North Dakota State Department of Health and a Texas Radioactive Materials License issued by the Texas Department of State Health Services, each relating to the Radioactive Assets.
		

		
			 
		

		
			"Real Property" means, collectively, the Owned Real Property and the Leased Real Property.
		

		
			 
		

		
			"Real Property Leases" has the meaning set forth in Section 4.09(b).
		

		
			 
		

		
			"Release" means any actual release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment.
		

		
			 
		

		
			"Representation and Warranty Policy" has the meaning set forth in Section 5.09.
		

		
			 
		

		
			"Representative" means, with respect to any Person, any and all directors, managers, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.
		

		
			 
		

		
			"Retained Assets" means the Explosives Assets, the Radio Assets and the Radioactive Assets.
		

		
			 
		

		
			"Retained Employee" means each Business Employee identified on Section 1.01(b) of the Seller Disclosure Schedules.
		

		
			 
		

		
			"Retained Permits" means the Explosives Permit, the Radio Permit and the Radioactive Permits.
		

		
			 
		

		
			"Sandbox Agreement" means that certain Master License and Services Agreement, dated March 11, 2015, by and between Seller and Sandbox Logistics, LLC, dated December 8, 2015, and all other correspondence, matters and Liabilities related thereto, including, but not limited to that certain letter sent by an attorney representing Sandbox Logistics, LLC, on behalf of Sandbox Logistics, LLC, to Seller.
		

		
			

		 

		

			9

		

 

		

			 

		

		

		
			 
		

		
			"Security Agreement" means that certain Security Agreement dated as of the date hereof by and between Buyer and Seller.
		

		
			 
		

		
			"Seller" has the meaning set forth in the preamble.
		

		
			 
		

		
			"Seller 401(k) Plan" means the Triangle Petroleum Corporation 401(K) Plan.
		

		
			 
		

		
			"Seller Disclosure Schedules" means the disclosure schedules delivered by Seller concurrently with the execution and delivery of this Agreement.
		

		
			 
		

		
			"Seller Guarantees" has the meaning set forth in Section 6.09.
		

		
			 
		

		
			"Seller Indemnified Persons" has the meaning set forth in Section 7.02.
		

		
			 
		

		
			"Seller's Knowledge" and variations of it refer to all matters (a) actually known to any of the Persons set forth on Section 1.01(c) of Seller Disclosure Schedules or (b) that any of such Persons would have known had he or she exercised reasonable due inquiry (and Buyer agrees that the inclusion of those individuals in this definition does not result in any of them having any personal liability to Buyer or any Affiliate under this Agreement or otherwise).
		

		
			 
		

		
			"Subsidiary" means, with respect to a Person, any other Person of which all of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of directors or other body performing similar functions are owned (directly or indirectly through another Person, nominee arrangement or otherwise) by such Person.
		

		
			 
		

		
			"Tangible Personal Property" has the meaning set forth in Section 2.01(g).
		

		
			 
		

		
			"Target Amount" means $10,000,000.
		

		
			 
		

		
			"Taxes" means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, motor vehicle transfer, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.
		

		
			 
		

		
			"Tax Return" means any return, declaration, report, claim for refund, information return or statement or other document required to be filed with respect to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
		

		
			 
		

		
			"Title Policy" has the meaning set forth in Section 6.11.
		

		
			 
		

		
			"Transaction Documents" means this Agreement, the Escrow Agreements, the Transition Services Agreement, the Security Agreement, the Lease Agreement, each Instrument of Transfer, each Landlord Estoppel Certificate and any other agreements, instruments and documents required to be delivered at the Closing.
		

		
			 
		

		
			

		 

		

			10

		

 

		

			 

		

		

		
			"Transfer Taxes" has the meaning set forth in Section 6.05(a).
		

		
			 
		

		
			"Transition Services Agreement" means that certain Transition Services Agreement dated as of the date hereof by and between Buyer and Seller.
		

		
			 
		

		
			"TSA Transfer Date" has the meaning set forth in Section 6.01(a).
		

		
			 
		

		
			"TSA Transferee" has the meaning set forth in Section 6.01(a).
		

		
			 
		

		
			"Vehicles" has the meaning set forth in Section 2.01(d).
		

		
			 
		

		
			"WARN Act" means the federal Worker Adjustment and Retraining Notification Act of 1988, and similar state, local and foreign laws related to plant closings, relocations, mass layoffs and employment losses.
		

		
			 
		

		
			ARTICLE II
		

		
			 
		

		
			PURCHASE AND SALE
		

		
			 
		

		
			Section 2.01     Purchase and Sale of Assets.  Subject to the terms and conditions set forth herein, at the Closing, Seller shall (or shall cause its Subsidiaries to) sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller (or its Subsidiary), free and clear of all Encumbrances other than Permitted Encumbrances, all right, title and interest in, to and under all of Seller's and its Subsidiaries' assets, including but not limited to the following assets, properties and rights of Seller and its Subsidiaries (collectively, the "Purchased Assets"), but excluding the Excluded Assets:
		

		
			 
		

		
			(a)     all accounts receivable;
		

		
			 
		

		
			(b)     the Owned Real Property, as set forth on Section 4.09(a) of the Seller Disclosure Schedules;
		

		
			 
		

		
			(c)     the Leased Real Property, as set forth on Section 4.09(b) of the Seller Disclosure Schedules;
		

		
			 
		

		
			(d)     the on and off road mobile equipment, trucks, tractors, and trailers and other vehicles owned by Seller (or its Subsidiary) set forth in Section 2.01(d) of the Seller Disclosure Schedules (the "Vehicles");
		

		
			 
		

		
			(e)     all machinery and other equipment owned by Seller (or its Subsidiary) (other than the Vehicles and the Tangible Personal Property), including the machinery and other equipment set forth on Section 2.01(e) of the Seller Disclosure Schedules (the "Owned Equipment");
		

		
			 
		

		
			(f)     all machinery and other equipment leased by Seller (or its Subsidiary) that is set forth on Section 2.01(f) of the Seller Disclosure Schedules (the "Leased Equipment");
		

		
			 
		

		
			

		 

		

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			(g)     all office equipment, furniture and fixtures located on the Real Property or otherwise used in the Business (either owned or leased by Seller (or its Subsidiary)) (the "Tangible Personal Property");
		

		
			 
		

		
			(h)     all inventories of raw materials, work in process, finished goods, supplies, fuel and other items treated as inventory by Seller (or its Subsidiary) at the Closing Date ("Inventory");
		

		
			 
		

		
			(i)     all credits, deposits and prepaid expenses at the Closing Date (to the extent assumable and collectible);
		

		
			 
		

		
			(j)     Subject to Section 6.14, all Permits required for the ownership, use and operation of the other Purchased Assets or the conduct of the Business, in each case as currently conducted, but only to the extent such Permits may be transferred under applicable Law (the "Business Permits");
		

		
			 
		

		
			(k)     the Intellectual Property Agreements and all Intellectual Property Assets;
		

		
			 
		

		
			(l)     all customer agreements set forth on Section 2.01(l) of the Seller Disclosure Schedules, master service agreements, supply agreements, purchase orders and all other Contracts to which Seller or its Subsidiary are party that are required to operate the Business (collectively, the "Assigned Contracts");
		

		
			 
		

		
			(m)     copies of all books and records exclusively related to the ownership or post-Closing operation of the Purchased Assets, including books of account, ledgers and general, financial and accounting records, machinery and equipment maintenance files, customer lists, customer purchasing histories, price lists, distribution lists, supplier lists, production data, quality control records and procedures, customer complaints and inquiry files, records and data (including all correspondence with any Governmental Authority), sales material and records, internal financial statements, material and research, other than books and records set forth in Section 2.02(b) ("Books and Records");
		

		
			 
		

		
			(n)     the Business Name, together with the goodwill associated therewith
		

		
			 
		

		
			(o)     each of the retention agreements set forth on Section 4.14(c) of the Seller Disclosure Schedules, including any repayment, recoupment or similar rights under such agreements; and
		

		
			 
		

		
			(p)     subject to Section 2.02, all other or additional privileges, rights, interests, properties and assets of every kind and description and wherever located that are used or intended for use in connection with, or that are necessary to the continued conduct of, the Business as presently conducted.
		

		
			 
		

		
			Seller and Buyer acknowledge and agree that a single asset may fall within more than one of Section 2.01(a) through Section 2.01(p); such fact does not imply that (i) such asset shall be transferred more than once or (ii) any duplication of such asset is required.  Seller and Buyer further acknowledge and agree that any single asset that falls within any of Section 2.01(a) 
		

		
			

		 

		

			12

		

 

		

			 

		

through Section 2.01(p) may be transferred through a separate asset transfer listed in this Section 2.01; such fact does not imply that (A) such asset shall be transferred more than once or (B) any duplication of such asset is required.
		

		
			 
		

		
			Section 2.02     Excluded Assets.  Buyer expressly understands and agrees that it is not purchasing or acquiring, and neither Seller nor any of its Subsidiaries is selling or assigning, any of the following assets or properties, and all such other assets and properties shall be excluded from the Purchased Assets (the "Excluded Assets"):
		

		
			 
		

		
			(a)     all cash and cash equivalents, bank accounts and securities of Seller and its Subsidiaries;
		

		
			 
		

		
			(b)     the organizational documents, minute books, stock books, Tax Returns, books of account or other records having to do with the corporate organization of Seller and its Subsidiaries, all employee-related or employee benefit-related files or records of Business Employees who do not become Hired Employees, and any other books and records which Seller or any of its Subsidiaries is prohibited from disclosing or transferring to Buyer under applicable Law or Contract and is required by applicable Law to retain or do not exclusively relate to the Purchased Assets;
		

		
			 
		

		
			(c)     all Contracts that are not Assigned Contracts and any and all rights thereunder;
		

		
			 
		

		
			(d)     all insurance policies and all rights to applicable claims and proceeds thereunder;
		

		
			 
		

		
			(e)     all  assets and rights attributable to any benefit plans or related trusts or funding arrangements;
		

		
			 
		

		
			(f)     all Tax assets including refunds, rebates or prepayments of Taxes (or rights thereto);
		

		
			 
		

		
			(g)     all rights to any action, suit, demand or claim of any nature available to or being pursued by Seller or any of its Affiliates, whether arising by way of counterclaim or otherwise, in each case whether or not related to the Business, the Purchased Assets, or the Assumed Liabilities;
		

		
			 
		

		
			(h)     all rights which accrue or will accrue to Seller or any of its Affiliates under the Transaction Documents;
		

		
			 
		

		
			(i)     all intercompany receivables and, except for any Contract set forth on Section 2.02(i) of the Seller Disclosure Schedules, other rights pursuant to any Contract between Seller, or any of its Affiliates, on the one hand, and any of their respective Affiliates, on the other hand;
		

		
			 
		

		
			(j)     the shares of stock or other ownership interests in any Subsidiaries of Seller;
		

		
			 
		

		
			

		 

		

			13

		

 

		

			 

		

		

		
			(k)     all correspondence and documents prepared by Seller or any of its Affiliates for its internal evaluation purposes or related to any third party bid to purchase any of the assets of the Business;
		

		
			 
		

		
			(l)     any (i) personnel records with respect to the Hired Employees that Seller or any of its Affiliates is required by Law to maintain in its possession and (ii) Books and Records relating to any Purchased Asset or Assumed Liability that Seller or any of its Affiliates is required by Law to maintain in its possession;
		

		
			 
		

		
			(m)     any and all guarantees, warranties, indemnities and similar rights (i) in respect of the Business or a Purchased Asset for the period prior to the Closing Date and (ii) in respect of any other Excluded Asset, arising on or after the Closing Date; and
		

		
			 
		

		
			(n)     the assets, properties and rights specifically set forth on Section 2.02(n) of the Seller Disclosure Schedules.
		

		
			 
		

		
			Section 2.03     Assumed Liabilities.  Subject to the terms and conditions set forth herein, at the Closing, Buyer shall assume, pursuant to the Instruments of Transfer, and shall pay, perform and discharge when due only the Liabilities that are specifically listed in Section 2.03 of the Buyer Disclosure Schedules (collectively, the "Assumed Liabilities").
		

		
			 
		

		
			Section 2.04     Excluded Liabilities.  Other than the Assumed Liabilities, Buyer shall not assume and shall not be responsible to pay, perform or discharge, and Seller shall remain solely responsible for, any Liabilities of Seller or its Subsidiaries or Affiliates whatsoever, or relating to the Business or the Purchased Assets prior to the Closing Date (collectively, the "Excluded Liabilities"), including but not limited to the following:
		

		
			 
		

		
			(a)     any Liabilities relating to or arising out of the Excluded Assets;
		

		
			 
		

		
			(b)     any Liabilities arising under Environmental Laws with respect to the Purchased Assets or the Business that arise prior to the Closing Date, including but not limited to abandoned and unusable waste, materials and debris;
		

		
			 
		

		
			(c)     all indebtedness for borrowed money, including principal and interest, that relates to the Business or Purchased Assets and is incurred prior to Closing;
		

		
			 
		

		
			(d)     any Liabilities for Taxes (including Property Taxes as prorated in accordance with Section 6.05(b)) of the Seller and its Subsidiaries;
		

		
			 
		

		
			(e)     except as provided in Section 6.01, any Liabilities of Seller or any of its Affiliates relating to or arising out of the employment, or termination of employment, of any Business Employee; and
		

		
			 
		

		
			(f)     any Liabilities of Seller arising or incurred in connection with the negotiation, preparation, investigation and performance of this Agreement, the other Transaction Documents and the transactions contemplated hereby and thereby, including fees and expenses of counsel, accountants, consultants, advisers and others.
		

		
			 
		

		
			

		 

		

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			Section 2.05     Base Purchase Price. The aggregate purchase price for the Purchased Assets shall be $58,000,000 (the "Base Purchase Price"), plus the assumption of all of the Assumed Liabilities.    
		

		
			 
		

		
			Section 2.06     Purchase Price Adjustment.
		

		
			 
		

		
			(a)     Prior to the Closing, Seller shall have caused to be prepared and delivered to Buyer a closing statement (the "Closing Statement") setting forth a good faith estimate of the Adjustment Amount as of the Closing (such estimate, the "Estimated Adjustment Amount") and the calculation of such Estimated Adjustment Amount.  The Closing Statement shall be prepared in a manner consistent with the definitions of the term Adjustment Amount, in the manner and using the line items set forth on Exhibit A hereto and except as noted otherwise on Exhibit A hereto, in accordance with GAAP, consistently applied and following the policies, procedures, principles and methods employed in preparing the Balance Sheet.
		

		
			 
		

		
			(b)     Within thirty (30) days after the Closing Date, Buyer shall cause to be prepared and delivered to Seller a post-closing statement (the "Post-Closing Statement"), setting forth the Adjustment Amount, calculated as of the Closing, and the calculation of the Adjustment Amount, including each line item thereof (in each case, calculated as of the Closing).  The Post-Closing Statement shall be prepared in a manner consistent with the definitions of the term Adjustment Amount, in the manner and using the line items set forth on Exhibit A hereto and except as noted otherwise on Exhibit A hereto, in accordance with GAAP, consistently applied and following the policies, procedures, principles and methods employed in preparing the Balance Sheet, and shall clearly identify any differences between the Estimated Adjustment Amount and the Adjustment Amount set forth therein and state Buyer's reasons for such differences.
		

		
			 
		

		
			(c)     Each of Seller and Buyer agrees (i) to reasonably assist the other in the preparation or review of the Closing Statement and the Post-Closing Statement and the related determination of the Estimated Adjustment Amount, the Adjustment Amount and the Closing Purchase Price; (ii) that Seller shall after the Closing, and Buyer shall after the delivery to Seller of the Post-Closing Statement until the earlier of (x) the date Seller delivers an Objections Statement or (y) thirty (30) days after delivery of the Post-Closing Statement to Seller, provide the other and its Representatives, upon the reasonable request of Buyer or Seller, as applicable, with reasonable access during normal business hours to its books, records (including work papers, schedules, memoranda and other documents), supporting data, facilities and management for purposes of the review of the Closing Statement or the Post-Closing Statement, as applicable, and the related determinations of the Estimated Adjustment Amount, the Adjustment Amount and the Closing Purchase Price, and (iii) to reasonably cooperate with the other in connection with such reviews and determinations.
		

		
			 
		

		
			(d)     If Seller has any objections to any amounts reflected in the Post-Closing Statement, Seller will deliver to Buyer a statement setting forth its objections thereto (an "Objections Statement"), which statement will identify in reasonable detail those items and amounts to which Seller objects and set forth, in reasonable detail, the basis for such objection (the "Disputed Items"), and Buyer and Seller will attempt to resolve and finally determine and agree upon the Disputed Items as promptly as practicable.  If an Objections Statement is not 
		

		
			

		 

		

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delivered to Buyer within thirty (30) days after delivery of the Post-Closing Statement to Seller, the Post-Closing Statement as prepared by Buyer will be final, binding and non-appealable by the parties hereto.  Seller and Buyer will negotiate in good faith to resolve the Disputed Items, but if they do not reach a final resolution within thirty (30) days after the delivery of the Objections Statement to Buyer (as such thirty (30)-day period may be extended to the extent agreed by Seller and Buyer in writing), Seller and Buyer will submit any unresolved Disputed Items to an impartial nationally recognized firm of independent certified public accountants mutually appointed by Buyer and Seller (the "Accountant") for resolution. The fees, costs and expenses of the Accountant will be paid by the party whose positions generally did not prevail in the Accountant's resolution of the dispute, or if the Accountant determines that no party could be fairly found to be the prevailing party, then such fees, costs and expenses will be borne by Seller and Buyer in equal shares. The decision of the Accountant shall be final and binding on the parties hereto absent manifest error caused by the Accountant.  The final, binding and conclusive Adjustment Amount based either upon agreement by the parties hereto or deemed agreement by Buyer and Seller or determination of the Accountant in accordance with this Section 2.06(d) will be the "Conclusive Adjustment Amount." The Accountant shall act as an expert, not as an arbitrator, and shall decide only the specific unresolved Disputed Items submitted by Seller and Buyer pursuant to this Section 2.06(d).  
		

		
			 
		

		
			(e)     On the Closing Date, a portion of the Base Purchase Price equal to the Adjustment Escrow Amount shall be paid by Buyer to the Escrow Agent, in immediately available United States funds by certified wire transfer to an account (the "Adjustment Amount Escrow Account") designated by the Escrow Agent to be held in escrow pending determination of the Conclusive Adjustment Amount.  The Adjustment Escrow Amount shall be held by the Escrow Agent pursuant to an Adjustment Amount Escrow Agreement to be entered into on the Closing Date by Buyer, Seller and the Escrow Agent (the "Adjustment Amount Escrow Agreement").  The Adjustment Escrow Amount shall be held and invested by the Escrow Agent in accordance with the terms of the Adjustment Amount Escrow Agreement. If the Conclusive Adjustment Amount is less than the Estimated Adjustment Amount, then the Closing Purchase Price shall be adjusted downward by the amount of such shortfall, and (i) Buyer and Seller shall immediately deliver a joint written instruction to the Escrow Agent instructing the Escrow Agent to disburse to Buyer from the Adjustment Amount Escrow Account an amount in cash equal to such shortfall by wire transfer of immediately available funds to an account or accounts designated in writing by Buyer (with any remaining amounts in the Adjustment Amount Escrow Account to be distributed to Seller), and (ii) if such amount exceeds the Adjustment Amount Escrow Account, Seller shall pay or cause to be paid an amount in cash equal to such excess shortfall to Buyer by wire transfer of immediately available funds to an account or accounts designated in writing by Buyer to Seller.  If the Conclusive Adjustment Amount is greater than the Estimated Adjustment Amount, then the Closing Purchase Price will be adjusted upward by the amount of such excess, and (i) Buyer and Seller shall immediately deliver a joint written instruction to the Escrow Agent instructing the Escrow Agent to disburse to Seller or its designee from the Adjustment Amount Escrow Account the balance of the Adjustment Amount Escrow Account, together with any interest earned, and (ii) Buyer shall pay or cause to be paid an amount in cash equal to such excess to Seller or its designee by wire transfer of immediately available funds to an account or accounts designated in writing by Seller to Buyer; provided,  however, Buyer may, in its sole discretion, elect to collect such excess amount from the Indemnity Escrow Account.  Any payment under this Section 2.06(e) is to be made within five 
		

		
			

		 

		

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(5) Business Days of the date on which the Conclusive Adjustment Amount is finally determined pursuant to this Section 2.06.
		

		
			 
		

		
			Section 2.07     Allocation of Purchase Price. Within 180 days of the Closing Date, Buyer shall deliver to Seller a schedule allocating the Closing Purchase Price (including any Assumed Liabilities treated as consideration for the Purchased Assets for Tax purposes) (the "Allocation Schedule"). The Allocation Schedule shall be prepared in accordance with Section 1060 of the Code. The Allocation Schedule shall be deemed final unless Seller notifies Buyer in writing that Seller objects to one or more items reflected in the Allocation Schedule within thirty (30) days after delivery of the Allocation Schedule to Seller. In the event of any such objection, Seller and Buyer shall negotiate in good faith to resolve such dispute; provided, however, that if Seller and Buyer are unable to resolve any dispute with respect to the Allocation Schedule within thirty (30) days after Seller delivered to Buyer Seller's objection to the Allocation Schedule, such dispute shall be resolved by an impartial nationally recognized firm of independent certified public accountants mutually appointed by Buyer and Seller. The fees and expenses of such accounting firm shall be borne by Seller and Buyer in equal shares. Seller and Buyer agree to file their respective IRS Forms 8594 and all federal, state and local Tax Returns in accordance with the Allocation Schedule.
		

		
			 
		

		
			Section 2.08     Non-assignable Assets.
		

		
			 
		

		
			(a)     Notwithstanding anything to the contrary in this Agreement, and subject to the provisions of this Section 2.08, to the extent that the sale, assignment, transfer, conveyance or delivery, or attempted sale, assignment, transfer, conveyance or delivery, to Buyer of any Purchased Asset would result in a violation of applicable Law, or would require the consent, authorization, approval or waiver of a Person who is not a party to this Agreement or a Subsidiary of a party to this Agreement (including any Governmental Authority), and such consent, authorization, approval or waiver shall not have been obtained prior to the Closing, this Agreement shall not constitute a sale, assignment, transfer, conveyance or delivery, or an attempted sale, assignment, transfer, conveyance or delivery, of such Purchased Asset; provided, however, that, the Closing shall occur notwithstanding the foregoing without any adjustment to the Closing Purchase Price on account thereof. Following the Closing, Seller and Buyer shall, and Seller shall cause its Subsidiaries to, use commercially reasonable efforts, and shall cooperate with each other, to obtain any such required consent, authorization, approval or waiver, or any release, substitution or amendment required to novate all Liabilities under any and all Assigned Contracts or other Liabilities that constitute Assumed Liabilities; provided, however, that neither Seller (nor any of its Subsidiaries) nor Buyer shall be required to pay any consideration therefor. Once such consent, authorization, approval, waiver, release, substitution or amendment is obtained, Seller or its applicable Subsidiary shall sell, assign, transfer, convey and deliver to Buyer the relevant Purchased Asset to which such consent, authorization, approval, waiver, release, substitution or amendment relates for no additional consideration. Applicable sales, transfer and other similar Taxes in connection with such sale, assignment, transfer, conveyance or license shall be paid by Buyer in accordance with Section 6.05.
		

		
			 
		

		
			(b)     To the extent that any Purchased Asset or Assumed Liability cannot be transferred to Buyer following the Closing pursuant to this Section 2.08, Buyer and Seller shall use commercially reasonable efforts, and Seller shall cause its Subsidiaries to use their 
		

		
			

		 

		

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commercially reasonable efforts, to enter into such arrangements (such as subleasing, sublicensing or subcontracting) to provide to the parties the economic and, to the extent permitted under applicable Law, operational equivalent of the transfer of such Purchased Asset or Assumed Liability to Buyer as of the Closing and the performance by Buyer of its obligations with respect thereto. Buyer shall, as agent or subcontractor for Seller (or its applicable Subsidiary), pay, perform and discharge fully the Liabilities of Seller (or its applicable Subsidiary) thereunder. To the extent permitted under applicable Law, Seller shall, at Buyer's expense, hold in trust for and pay to Buyer promptly upon receipt thereof, such Purchased Asset and all income, proceeds and other monies received by Seller to the extent related to such Purchased Asset in connection with the arrangements under this Section 2.08. Seller shall be permitted to set off against such amounts all direct costs associated with the retention and maintenance of such Purchased Assets.
		

		
			 
		

		
			Section 2.09     Indemnification Escrow.  Buyer will pay to the Escrow Agent the amount of five percent (5%) of the Base Purchase Price (the "Indemnification Escrow Amount"), in immediately available United States funds by certified wire transfer to an account (the "Indemnity Escrow Account") designated by the Escrow Agent.  Subject to Section 7.07, the Indemnification Escrow Amount shall be used to fund the amount of any indemnification obligations of Seller pursuant to Article VII.  The Indemnification Escrow Amount shall be held by the Escrow Agent pursuant to an Indemnification Escrow Agreement to be entered into on the Closing Date by Buyer, Seller and the Escrow Agent (the "Indemnification Escrow Agreement"). On the General Survival Date, the Parties shall execute and deliver to the Escrow Agent joint written instructions (in accordance with the Escrow Agreement) to pay to Seller or its designee any funds remaining in the Indemnity Escrow Account as of such date, other than any amounts (estimated by Buyer in good faith) that are set forth in a notice delivered by Buyer to Seller prior to the General Survival Date setting forth a claim for indemnification to which Buyer reasonably believes it is entitled under Section 7.01 and setting forth in reasonable detail the factual basis of the claim.
		

		
			 
		

		
			ARTICLE III
		

		
			 
		

		
			CLOSING
		

		
			 
		

		
			Section 3.01     Closing.  Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by this Agreement (the "Closing") shall take place at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, 1000 Louisiana Street, Suite 6800, Houston, Texas 77002 on the date hereof (the "Closing Date").  The Closing shall be effective as of at 12:01 a.m., local time, on the Closing Date.
		

		
			 
		

		
			Section 3.02     Closing Deliverables.
		

		
			 
		

		
			(a)     At the Closing, Seller shall, and shall cause its applicable Subsidiaries to, deliver to Buyer the following:
		

		
			 
		

		
			(i)     counterparts to customary instruments of transfer, assumption, filings or documents, each in form and substance reasonably acceptable to Seller and Buyer, as Seller and Buyer mutually agree are reasonably necessary or 
		

		
			

		 

		

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appropriate to effect the transfer of the Purchased Assets (other than the Explosives Assets, the Radio Assets and the Radioactive Assets) or the assumption of the Assumed Liabilities pursuant to this Agreement (each an "Instrument of Transfer"), in each case duly executed by Seller and any applicable Subsidiary;
		

		
			 
		

		
			(ii)     all consents, authorizations, orders and approvals from the Governmental Authorities and other Persons referred to in Section 4.03, each in form and substance reasonably satisfactory to Buyer;
		

		
			 
		

		
			(iii)     duly executed counterparts to each of the Transaction Documents (other than this Agreement);
		

		
			 
		

		
			(iv)     a certificate, duly executed by Seller and its applicable Subsidiaries, that complies with Treasury Regulation Section 1.1445-2(b)(2) of the Code;
		

		
			 
		

		
			(v)     the Texas Statement of Occasional Sale (Form 01-917) executed by Seller and its applicable Subsidiaries, each as more fully described in Section 6.05(a) herein;
		

		
			 
		

		
			(vi)     a landlord estoppel certificate with respect to each of the Real Property Leases, each in form and substance reasonably satisfactory to Buyer, dated as of the Closing Date, and evidencing that there are no material claims by such landlord against Seller or its Subsidiary, as applicable (each a "Landlord Estoppel Certificate"), in each case duly executed by such landlord;
		

		
			 
		

		
			(vii)     the new surveys or updates of existing surveys described in Section 6.11 herein; and
		

		
			 
		

		
			(viii)     a certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Seller certifying that attached thereto are true and complete copies of all resolutions adopted by the board of managers of the Managing Member of Seller authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all of the resolutions adopted in connection with the transactions contemplated hereby and thereby.
		

		
			 
		

		
			(b)     At the Closing, Buyer shall deliver to Seller the following:
		

		
			 
		

		
			(i)     the Closing Purchase Price (less the Funded Debt to be paid directly to the lender(s) to release the Encumbrances (other than Permitted Encumbrances) on the Purchased Assets and the Escrow Amount) by wire transfer of immediately available funds to an account(s) designated by Seller;
		

		
			 
		

		
			(ii)     evidence that the Escrow Amount has been delivered to the Escrow Agent in accordance with Sections 2.06(e) and 2.09;
		

		
			 
		

		
			

		 

		

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			(iii)     all consents, authorizations, orders and approvals from the Governmental Authorities and other Persons referred to in Section 5.03, each in form and substance reasonably satisfactory to Seller;
		

		
			 
		

		
			(iv)     duly executed counterparts to each of the Transaction Documents (other than this Agreement); and
		

		
			 
		

		
			(v)     a certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Buyer certifying that attached thereto are true and complete copies of all resolutions adopted by the board of managers of Buyer authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all of the resolutions adopted in connection with the transactions contemplated hereby and thereby.
		

		
			 
		

		
			Section 3.03     Explosives Assets; Radio Assets; Radioactive Assets.
		

		
			 
		

		
			(a)     As soon as practicable after Buyer's receipt of the Explosives Permit, Seller shall deliver to Buyer (at no cost to Buyer) all Instruments of Transfer as Seller and Buyer mutually agree are reasonably necessary or appropriate to effect the transfer of the Explosives Assets to Buyer, in each case duly executed by Seller and any applicable Subsidiary.
		

		
			 
		

		
			(b)     As soon as practicable after Buyer's receipt of the Radio Permit, Seller shall deliver to Buyer (at no cost to Buyer) all Instruments of Transfer as Seller and Buyer mutually agree are reasonably necessary or appropriate to effect the transfer of the Radio Assets to Buyer, in each case duly executed by Seller and any applicable Subsidiary.
		

		
			 
		

		
			(c)     As soon as practicable after Buyer's receipt of the Radioactive Permits, Seller shall deliver to Buyer  (at no cost to Buyer) all Instruments of Transfer as Seller and Buyer mutually agree are reasonably necessary or appropriate to effect the transfer of the Radioactive Assets to Buyer, in each case duly executed by Seller and any applicable Subsidiary.
		

		
			 
		

		
			ARTICLE IV
		

		
			 
		

		
			REPRESENTATIONS AND WARRANTIES OF SELLER
		

		
			 
		

		
			Except as set forth in the Seller Disclosure Schedules, Seller represents and warrants to Buyer as follows:
		

		
			 
		

		
			Section 4.01     Organization and Qualification of Seller.  Seller is a limited liability company duly organized, validly existing and in good standing under the Laws of the state of Delaware and has all necessary entity power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on the Business as currently conducted. Seller and each of its Subsidiaries is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the ownership of the Purchased Assets or the operation of the Business as currently conducted makes such licensing or qualification necessary.
		

		
			 
		

		
			

		 

		

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			Section 4.02     Authority of Seller.  Seller has all necessary limited liability company power and authority to enter into this Agreement and the other Transaction Documents to which Seller is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby (including the power and authority to cause its Subsidiaries to take the actions contemplated under this Agreement). The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite entity action on the part of Seller. This Agreement has been duly executed and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a Proceeding at law or in equity). When each other Transaction Document to which Seller is or will be a party has been duly executed and delivered by Seller (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Seller enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a Proceeding at law or in equity).
		

		
			 
		

		
			Section 4.03     No Conflicts; Consents.  The execution, delivery and performance by Seller of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) result in a violation or breach of any provision of the certificate of formation, operating agreement or any other organizational document of Seller; (b) result in a material violation or breach of any provision of any Law or Governmental Order applicable to Seller or any of its Subsidiaries or the Business; or (c) conflict with, result in a violation or breach of, constitute a default under or result in the acceleration of any Material Contract in any material respects. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority or other Person is required by or with respect to Seller or any of its Subsidiaries in connection with the execution and delivery of this Agreement or any of the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, except for any such consent, approval, Permit, Governmental Order, declaration, filing or notice that has been obtained or made or is not material to the operation of the Business.
		

		
			 
		

		
			Section 4.04    Financial Statements.  Copies of the audited balance sheet of Seller and its Subsidiaries (on a consolidated basis) as of January 31, 2016 and the related statements of income and retained earnings, stockholders' equity and cash flow for the year then ended (the "Audited Financial Statements"), and the unaudited balance sheet of Seller and its Subsidiaries (on a consolidated basis) as of April 30, 2016 and the related statements of income and retained earnings, stockholders' equity and cash flow for the three-month period then ended (the "Interim Financial Statements" and together with the Audited Financial Statements, the "Financial Statements") have been delivered or made available to Buyer. The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved, subject, in the case of the Interim Financial Statements, to normal and recurring year-
		

		
			

		 

		

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end adjustments and the absence of notes. The Financial Statements fairly present in all material respects the financial condition of Seller and its Subsidiaries (on a consolidated basis) as of the respective dates they were prepared and the results of the operations of Seller and its Subsidiaries (on a consolidated basis) for the periods indicated. The balance sheet of Seller and its Subsidiaries (on a consolidated basis) as of January 31, 2016 is referred to herein as the "Balance Sheet" and the date thereof as the "Balance Sheet Date" and the balance sheet of Seller and its Subsidiaries (on a consolidated basis) as of April 30, 2016 is referred to herein as the "Interim Balance Sheet" and the date thereof as the "Interim Balance Sheet Date".
		

		
			 
		

		
			Section 4.05     Absence of Certain Changes, Events and Conditions.  Except as expressly contemplated by this Agreement, from the Balance Sheet Date until the date of this Agreement, (a) Seller and its Subsidiaries have operated the Business in the ordinary course of business in all material respects and (b) there has not been, with respect to the Business, any event, occurrence or development that has had a Material Adverse Effect.
		

		
			 
		

		
			Section 4.06     Material Contracts.
		

		
			 
		

		
			(a)     Section 4.06(a) of the Seller Disclosure Schedules sets forth, by applicable subsection, a correct and complete list of the following Contracts to which Seller or any of its Subsidiaries is a party, or by which Seller or any of its Subsidiaries, or any of the Purchased Assets is bound, as of the date of this Agreement (together with all Real Property Leases listed in Section 4.09(b) of the Seller Disclosure Schedules collectively, the "Material Contracts"): (i) Contracts evidencing or governing indebtedness; (ii) Contracts creating an Encumbrance (other than a Permitted Encumbrance) on any Purchased Asset; (iii) guarantees, letters of credit and surety arrangements, including the Seller Guarantees; (iv) Contracts that materially restrict Seller or any of its Subsidiaries from conducting the Business; (v) Contracts with customers and suppliers of the Business under which aggregate consideration in excess of $750,000 has been paid to or by Seller or any of its Subsidiaries during the twelve months prior to the date hereof; (vi) Contracts that grant any Person an option, right of first refusal or preferential right to purchase any of the Purchased Assets; (vii) Contracts constituting Intellectual Property Agreements (other than readily commercially available hardware or software program licenses and Contracts in which the grant of rights to Intellectual Property is merely incidental); (viii) Contracts that require the payment of royalties, commissions or finder's fees; (ix) Contracts with Governmental Authorities; and (x) Contracts which (whether or not required to be disclosed under any of the other clauses of this Section 4.06(a)) are material to Seller or the Business and provide for aggregate payments during the twelve months prior to the date hereof in excess of $750,000.
		

		
			 
		

		
			(b)     True, correct and complete copies of such Material Contracts have been delivered to or made available for inspection by Buyer.  All such Material Contracts (i) were duly and validly executed and delivered by Seller or its Subsidiaries, as applicable, and the other parties thereto; and (ii) are valid and in full force and effect. No event of default or event that, but for the giving of notice or the lapse of time or both, would constitute an event of default exists or, upon the consummation by Seller of the transactions contemplated by this Agreement, will exist under any Material Contract.
		

		
			 
		

		
			

		 

		

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Section 4.07     Title to Tangible Personal Property.  Seller or one or more of its Subsidiaries has good and valid title to, or a valid leasehold interest in, the Purchased Assets (other than (a) the Real Property, which representations and warranties are set forth in Section 4.09 below), free and clear of Encumbrances except for Permitted Encumbrances.
		

		
			 
		

		
			Section 4.08     Sufficiency of Assets.  The Purchased Assets and the Excluded Assets constitute all of the material rights, property and assets used by Seller and its Subsidiaries to conduct the Business as currently conducted.
		

		
			 
		

		
			Section 4.09     Real Property.
		

		
			 
		

		
			(a)     Section 4.09(a) of the Seller Disclosure Schedules sets forth a true and complete list, as of the date of this Agreement, of all real property owned by Seller or any of its Subsidiaries (collectively, the "Owned Real Property").  With respect to the Owned Real Property:
		

		
			(i)     Seller or one or more of its Subsidiaries has good, marketable and valid fee simple title to the Owned Real Property, free and clear of all Encumbrances, except Permitted Encumbrances;
		

		
			 
		

		
			(ii)     Seller has, prior to the date hereof, delivered to Buyer copies of all deeds vesting title to the Owned Real Property into Seller or its Subsidiaries and any existing title policies, title commitments, title reports and surveys currently in Seller's possession or control with respect to the Owned Real Property;
		

		
			 
		

		
			(iii)     There are no outstanding rights, options, rights of first refusal, rights of first offer, conditional sales or similar rights or agreements to purchase or otherwise acquire any of the Owned Real Property, or any portion thereof or interest therein;
		

		
			 
		

		
			(iv)     Such Owned Real Property is in compliance with the terms of any restrictive covenants and easements to which such Owned Real Property is subject; and
		

		
			 
		

		
			(v)     Neither Seller nor, to Seller's Knowledge, any of its Subsidiaries has received any written notice of any condemnation Proceeding or any pending Proceeding to change or redefine the zoning classification of all of any portion of such Owned Real Property.
		

		
			 
		

		
			(b)     Section 4.09(b) of the Seller Disclosure Schedules sets forth a true and complete list, as of the date of this Agreement, of each lease to which Seller or any of its Subsidiaries is a party as a lessee for real property (each, a "Real Property Lease" and such real property the "Leased Real Property"). Seller has, prior to the date hereof, made available to Buyer complete and accurate copies of each Real Property Lease (including all amendments, modifications and supplements thereto). With respect to each Real Property Lease, except as set forth in Section 4.09(b) of the Seller Disclosure Schedules, as of the date of this Agreement:
		

		
			 
		

		
			

		 

		

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(i)     Seller or its Subsidiary that is a party to such Real Property Lease holds a valid, subsisting and enforceable leasehold interest under such Real Property Lease, and such Real Property Lease is legal, valid and binding on Seller or its Subsidiary that is a party to such Real Property Lease, in all cases subject to bankruptcy, insolvency, reorganization, moratoria, or similar laws now or hereafter in effect relating to creditor's rights generally or to general principles of equity;
		

		
			 
		

		
			(ii)     Such Real Property Lease is in full force and effect, without any material default thereof by Seller or any of its Subsidiaries or, to Seller's Knowledge, any other party thereto, and no termination, condition or other event by Seller or any of its Subsidiaries or, to Seller's Knowledge, any other party thereto, has occurred which (whether with or without notice, lapse of time or the happening or occurrence of any other event) would constitute a material default thereunder; and
		

		
			 
		

		
			(iii)     Neither Seller nor, to Seller's Knowledge, any of its Subsidiaries has received any written notice of any condemnation Proceedings relating to the Leased Real Property.
		

		
			 
		

		
			(c)     Neither Seller nor any of its Subsidiaries leases, subleases or otherwise permits the occupancy by any third party of all or any portion of the Real Property, and there are no Persons in possession of any of the Real Property other than Seller and its Subsidiaries.
		

		
			 
		

		
			(d)     The Real Property constitutes all of the land, buildings, structures, improvements, fixtures or other interests and rights in real property that are used or occupied by Seller and its Subsidiaries in connection with the Business.
		

		
			 
		

		
			(e)     Each parcel of Real Property abuts on and has direct vehicular access to a public road or has access to a public road via a permanent, irrevocable, appurtenant easement benefiting such Real Property, is supplied with public or quasi-public utilities appropriate for the operation of the Business.
		

		
			 
		

		
			(f)     To Seller's Knowledge, no part of any building, structure, fixture or other improvement located on the Real Property encroaches on any other real property and there are no buildings, structures, fixtures or other improvements primarily situated on any adjoining property which encroach on the Real Property.
		

		
			 
		

		
			Section 4.10     Intellectual Property.
		

		
			 
		

		
			(a)     Section 4.10(a) of the Seller Disclosure Schedules lists all of the following included in the Intellectual Property Assets: (i) issued patents and patent applications, (ii) trademark registrations and applications, (iii) copyright registrations and applications and (iv) internet domain name registrations (collectively, "Intellectual Property Registrations").
		

		
			 
		

		
			(b)     (i) The conduct of the Business as currently conducted does not infringe, misappropriate or otherwise violate the Intellectual Property of any Person in any material respect and, as of the date hereof, there is no such claim pending or, to Seller's Knowledge, threatened in writing against Seller or any of its Subsidiaries; and (ii) to Seller's 
		

		
			

		 

		

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Knowledge no Person is infringing, misappropriating or otherwise violating any Intellectual Property Assets in any material respect, and no such claims are pending or threatened in writing against any Person by Seller or any of its Subsidiaries. Notwithstanding anything to the contrary in this Agreement, this Section 4.10(b) constitutes the sole representation and warranty of Seller under this Agreement with respect to any actual or alleged infringement, misappropriation or other violation by Seller of any Intellectual Property of any other Person.
		

		
			 
		

		
			Section 4.11     Legal Proceedings; Governmental Orders.
		

		
			 
		

		
			(a)     There are no Proceedings pending or, to Seller's Knowledge, threatened against or by Seller or any of its Subsidiaries relating to or affecting the Business, the Purchased Assets or the Assumed Liabilities.
		

		
			 
		

		
			(b)     To Seller's Knowledge, there are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Business or the Purchased Assets.
		

		
			 
		

		
			Section 4.12     Permits.  Section 4.12 of the Seller Disclosure Schedules sets forth a list of all material Permits (other than Environmental Permits) currently held by Seller or any of its Subsidiaries in connection with the ownership and operation of the Business, each of which is valid and in full force and effect.  Seller currently holds all Permits necessary to carry on the Business.
		

		
			 
		

		
			Section 4.13     Environmental Matters.
		

		
			 
		

		
			(a)     The operations of Seller with respect to the Business and the Purchased Assets are and have been for the preceding four (4) years in compliance with all Environmental Laws in all material respects and, neither Seller nor any of its Subsidiaries has received from any Governmental Authority or other Person, with respect to the Business or the Purchased Assets, any written notice of an Environmental Claim which, in each case, either remains pending or unresolved, or is the source of ongoing material Liabilities or requirements as of the Closing Date.
		

		
			 
		

		
			(b)     Seller or one or more of its Subsidiaries, as required, possesses and is in compliance in all material respects with the terms of all Environmental Permits, all of which are in full force and effect and none of which is the subject of any termination, revocation, or materially adverse amendment or modification processes.
		

		
			 
		

		
			(c)     To the Seller's Knowledge there has been no Release or presence of Hazardous Materials in violation of or that would form the basis of Liability under Environmental Law with respect to the Business or the Purchased Assets which would reasonably be expected to result in a material Environmental Claim against, or a violation of Environmental Law or term of any Environmental Permit by, Seller or any of its Subsidiaries, or in connection with the Business.
		

		
			 
		

		
			(d)     Seller has made available to Buyer prior to the date of this Agreement all Phase I and Phase II reports, material environmental audits, and other material environmental information in the possession or control of Seller or any of its Subsidiaries with 
		

		
			

		 

		

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respect to the Real Property or the Business; provided that Seller makes no representation or warranty with respect to the completeness or accuracy of such documents.
		

		
			 
		

		
			(e)     To Seller's Knowledge, there is no presently existing Environmental Law that will require future compliance or capital costs in connection with the Business in excess of $100,000 above costs currently expended by Seller in the ordinary course of business on an annual basis.
		

		
			 
		

		
			(f)     The representations and warranties set forth in this Section 4.13 are Seller's sole and exclusive representations and warranties regarding environmental matters.
		

		
			 
		

		
			Section 4.14     Employee Matters.
		

		
			 
		

		
			(a)     Certain Employee Information.   Section 4.14(a) of the Seller Disclosure Schedules lists as to each Person employed by Seller or its Subsidiaries ("Business Employees") as of the date of this Agreement: name, date of hire/rehire, current job title, compensation, sick time accrual, personal day accrual and vacation accrual.
		

		
			 
		

		
			(b)     Employee Plans.  Section 4.14(b) of the Seller Disclosure Schedules lists each material Employee Plan maintained or contributed to by Seller with respect to the Business Employees, or otherwise participated in by the Business Employees.  "Employee Plan" means:
		

		
			 
		

		
			(i)     each employee pension benefit plan (as such term is defined in section 3(2) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")), including any pension, profit-sharing, retirement, thrift, or stock purchase plan;
		

		
			 
		

		
			(ii)     each employee welfare benefit plan (as such term is defined in ERISA §3(3)); and
		

		
			 
		

		
			(iii)     each material bonus, incentive compensation, stock purchase, stock option, severance or other employee benefit plan or agreement (including each employment, severance and retention agreement), sponsored, maintained, or contributed to with respect to any employee of Seller or any of its Subsidiaries by or on behalf of Seller or any ERISA Affiliate or with respect to which Seller or any ERISA Affiliate is a party or has any liability, but only to the extent that such plan covers or provides compensation or benefits with respect to any Business Employees.  "ERISA Affiliate" means each trade or business (whether or not incorporated) that together with Seller is treated as a single employer pursuant to §§414(b), (c), (m) or (o) of the Code.
		

		
			 
		

		
			(c)     Cessation of Participation.  Except as set forth in Section 4.14(c) of the Seller Disclosure Schedules, the Hired Employees will cease to participate in the Employee Plans effective as of the close of business on the Closing Date, and on or after the Closing Date neither Buyer nor any of its Affiliates has any Liability with respect to any Employee Plan as a result of the transactions contemplated by this Agreement.
		

		
			 
		

		
			

		 

		

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(d)     Other Employment Related Matters.  Neither Seller nor any of its Subsidiaries is a party to or bound by, any collective bargaining agreement.  Solely with respect to the Business Employees, except as set forth in Section 4.14(d) of the Seller Disclosure Schedules: (i) there is no labor strike, walkout or lockout pending or, to Seller's Knowledge, threatened in writing against Seller or any of its Subsidiaries; (ii) to Seller's Knowledge, there is no pending union organizing campaign and no labor union has made a pending written demand for recognition or certification; and (iii) Seller and its Subsidiaries are in compliance in all material respects with all applicable Laws that relate to employment, equal employment opportunity, wages, hours, leaves, workers' compensation, disability, immigration, collective bargaining, contractors and temporary employees, other employment terms and conditions and plant closings and layoffs.
		

		
			 
		

		
			(e)     Neither the Seller nor any ERISA Affiliate that is a Subsidiary of Seller currently has, or has during the preceding six (6) years had, any Liability (including any contingent liability under Section 4204 of ERISA) with respect to (i) any defined benefit plan, as described in Section 3(35) of ERISA, (ii) any multiemployer plan, as defined in Section 3(37) of ERISA, or (iii) any Employee Plan subject to Section 412 of the Code.
		

		
			 
		

		
			(f)     Neither the execution of this Agreement nor the Closing will: (i) entitle any Person to any payment, forgiveness of indebtedness, vesting, distribution, or increase in benefits under or with respect to any Employee Plan, or (ii) otherwise trigger any acceleration of vesting or payment of benefits under or with respect to any Employee Plan.
		

		
			 
		

		
			(g)     No Employee Plan that is an employee welfare benefit plan (within the meaning of Section 3(1) of ERISA) provides for continuing benefits or coverage for any participant or beneficiary of a participant after such participant's termination of employment, except to the extent required by Law; and there has been no violation of Section 4980B of the Code or Sections 601-608 of ERISA by Seller with respect to any such Employee Plan.
		

		
			 
		

		
			(h)     With respect to the Seller 401(k) Plan:
		

		
			 
		

		
			(i)     The Seller has provided or made available to Buyer correct and complete copies of the following documents relating to the Seller 401(k) Plan: (i) the plan document, (ii) all amendments thereto, (iii) any trust instruments or insurance contracts, if any, forming a part thereof, (iv) the most recent determination letter (or opinion letter for any prototype plan) issued by the IRS with respect to such plan, and (v) the most recent annual report on Form 5500 (including all exhibits and attachments thereto).
		

		
			 
		

		
			(ii)     The Seller 401(k) Plan has been timely amended to comply with changes in applicable law and regulatory guidance and the Seller (or one of its Affiliates) has obtained a favorable determination letter from the IRS to such effect or the plan is maintained pursuant to a prototype plan document that has a favorable opinion letter from the IRS, and such determination letter or opinion letter, as applicable, has not been revoked by the IRS, nor has the IRS given any indication to the Seller (or any of its Affiliates) that it intends to revoke any such determination letter or opinion letter or that could not give rise to Liability of Buyer or its Affiliates. 
		

		
			 
		

		
			

		 

		

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			(iii)     The Seller 401(k) Plan has been maintained in all material respects in accordance with its terms, and conforms to, and its administration is in compliance in all material respects with, all applicable laws and regulations, including but not limited to, ERISA and the Code.  There have been no "prohibited transactions" (within the meaning of Section 406 of ERISA or Code Section 4975) with respect to the Seller 401(k) Plan, other than any such transactions that are covered by a statutory or administrative exemption.
		

		
			 
		

		
			(iv)     All contributions to, and payments from, the Seller 401(k) Plan required to have been made by the Seller or its Affiliates with respect to any period ending on or before the Closing Date, have been timely made or, to the extent applicable, are properly accrued on the Financial Statements.
		

		
			 
		

		
			Section 4.15     Taxes.
		

		
			 
		

		
			(a)     Seller and its Subsidiaries have filed (taking into account any valid extensions) all material Tax Returns with respect to the Business or the Purchased Assets required to be filed by Seller and all such Tax Returns are correct and complete in all material respects. Seller and its Subsidiaries have paid material all Taxes with respect to the Business  due and owing, except for Taxes that are being contested by Seller or any of its Subsidiaries in good faith by appropriate Proceedings and for which adequate reserves have been made. None of the Purchased Assets is subject to any Encumbrances arising in connection with any failure or alleged failure to pay any Taxes, except Permitted Encumbrances.  Neither Seller nor any of its Subsidiaries is currently the beneficiary of any extension of time within which to file any Tax Return other than extensions of time to file Tax Returns obtained in the ordinary course of business.  Seller and its Subsidiaries have withheld and paid all material Taxes required to have been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party. 
		

		
			 
		

		
			(b)     Except for certain representations related to Taxes in Section 4.14(d), the representations and warranties set forth in this Section 4.15 are Seller's sole and exclusive representations and warranties regarding Tax matters.
		

		
			 
		

		
			Section 4.16     Compliance with Laws.  Seller is not in default in any material respects under any applicable Laws (excluding Environmental Laws). Each of the Purchased Assets complies in all material respects with all Laws and Permits applicable thereto.
		

		
			 
		

		
			Section 4.17     Absence of Undisclosed Liabilities.  Seller has not incurred any Liabilities (whether absolute, accrued, contingent or otherwise) of any nature, except Liabilities (a) which are accrued on or reserved against the Financial Statements or reflected in the notes thereto, or (b) which were incurred after the Balance Sheet Date and were incurred in the ordinary course of business and consistent with past practices.  
		

		
			 
		

		
			Section 4.18     No Affiliate Transactions.  There are no Contracts between Seller or its Subsidiaries, on the one hand, and any Affiliate of Seller, on the other hand.
		

		
			 
		

		
			Section 4.19     Brokers.  Neither Seller nor any of its Affiliates has entered into any Contract with any Person that would require the payment by Buyer or any of its Affiliates of 

		 

		

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any brokerage fee, finder's fee, or other commission or similar fee in connection with the transactions contemplated by this Agreement or any of the other Transaction Documents.
		

		
			 
		

		
			Section 4.20     Reasonably Equivalent Value.  The transfers and/or conveyances of property effected under this Agreement have not been made or incurred with any actual intent to hinder, delay, or defraud any Person to whom Seller currently owes any obligation of any kind or character or to whom Seller is currently indebted or, alternatively, any Person to whom Seller may in the future become indebted or obligated in any way. The transfers in this Agreement are in exchange for the receipt by Seller of a reasonably equivalent value.
		

		
			 
		

		
			Section 4.21     DISCLAIMERS.  EXCEPT AS EXPRESSLY SET FORTH IN THE FOREGOING REPRESENTATIONS AND WARRANTIES IN THIS ARTICLE IV (WHICH ARE SUBJECT TO THE DISCLOSURES SET FORTH IN THE SELLER DISCLOSURE SCHEDULES), NEITHER SELLER NOR ANY OF ITS AFFILIATES NOR ANY REPRESENTATIVE OF ANY OF THEM HAS MADE ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE PURCHASED ASSETS, THE ASSUMED LIABILITIES, OR ANY ASPECT OF THE BUSINESS, OR THE LIABILITIES, OBLIGATIONS, BUSINESS, RESULTS OF OPERATIONS OR ANY OTHER ASPECT OF OR RELATED TO THE PURCHASED ASSETS, THE ASSUMED LIABILITIES, OR ANY ASPECT OF THE BUSINESS.  WITHOUT LIMITING THE FOREGOING, EXCEPT AS TO THOSE MATTERS EXPRESSLY COVERED BY THE REPRESENTATIONS AND WARRANTIES IN THE FOREGOING SECTIONS OF THIS ARTICLE IV:  (a) SELLER DISCLAIMS ALL OTHER REPRESENTATIONS, WARRANTIES AND GUARANTEES, WHETHER EXPRESS OR IMPLIED, INCLUDING IN THIS DISCLAIMER ANY STATEMENT, MATERIALS, PROJECTION OR OTHER INFORMATION WHATSOEVER RELATING TO ANY ASPECT OF THE PURCHASED ASSETS, THE ASSUMED LIABILITIES OR ANY ASPECT OF THE BUSINESS, OR THAT WAS MADE OR PROVIDED BY OR OTHERWISE OBTAINED FROM (WHETHER THROUGH A DATA ROOM, A MANAGEMENT PRESENTATION, EMPLOYEE INTERVIEWS OR OTHERWISE) SELLER, OR ANY OF ITS AFFILIATES OR ANY REPRESENTATIVE OF ANY OF THEM TO OR BY BUYER OR ANY OF ITS AFFILIATES OR ANY REPRESENTATIVE OF ANY OF THEM OR ANY OTHER PERSON; AND (b) THE PURCHASED ASSETS, ASSUMED LIABILITIES AND ALL PROPERTY CONVEYED PURSUANT TO THIS AGREEMENT (WHETHER DIRECTLY OR INDIRECTLY) OR THE TRANSFER DOCUMENTS DELIVERED AT CLOSING BY SELLER AND ITS AFFILIATES ARE CONVEYED ON AN "AS IS" AND "WHERE IS/WHERE AS" AND "WITH ALL FAULTS" BASIS AND WITHOUT ANY OTHER REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WHATSOEVER, INCLUDING IN THIS EXCLUSION ALL REPRESENTATIONS AND WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OPERABILITY, CAPACITY OR CONDITION.
		

		
			 
		

		
			ARTICLE V
		

		
			 
		

		
			REPRESENTATIONS AND WARRANTIES OF BUYER
		

		
			 
		

		
			Except as set forth in the Buyer Disclosure Schedules, Buyer represents and warrants as of the date hereof as follows:
		

		
			 
		

		
			

		 

		

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			Section 5.01     Organization and Qualification of Buyer.  Buyer is a limited liability company duly organized, validly existing and in good standing under the Laws of the state of Delaware.
		

		
			 
		

		
			Section 5.02     Authority of Buyer.  Buyer has all necessary limited liability company power and authority to enter into this Agreement and the other Transaction Documents to which Buyer is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite limited liability company action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller) this Agreement constitutes a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a Proceeding at law or in equity). When each other Transaction Document to which Buyer is or will be a party has been duly executed and delivered by Buyer (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Buyer enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a Proceeding at law or in equity).
		

		
			 
		

		
			Section 5.03     No Conflicts; Consents.  The execution, delivery and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) result in a violation or breach of any provision of the organizational documents of Buyer; (b) result in a material violation or breach of any provision of any Law or Governmental Order applicable to Buyer; or (c) conflict with, result in a violation or breach of, constitute a default under or result in the acceleration of any agreement to which Buyer is a party in any material respects. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority or any other Person is required by or with respect to Buyer in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, except for any such consent, approval, Permit, Governmental Order, declaration, filing or notice that has been obtained or made or would not have a material adverse effect on Buyer's ability to consummate the transactions contemplated hereby and thereby.
		

		
			 
		

		
			Section 5.04     Brokers.  Neither Buyer nor any of its Affiliates has entered into any Contract with any Person that would require the payment by Seller or any of its Affiliates of any brokerage fee, finder's fee, or other commission or similar fee in connection with the transactions contemplated by this Agreement or any of the other Transaction Documents.
		

		
			 
		

		
			Section 5.05     Sufficiency of Funds.  Buyer has available sufficient funds to enable Buyer to pay the Closing Purchase Price (and any upward adjustments thereto) and meet 
		

		
			

		 

		

			30

		

 

		

			 

		

all of its financial obligations contemplated by this Agreement and the other Transaction Documents.
		

		
			 
		

		
			Section 5.06     Solvency.  Immediately after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall: (a) be able to pay its debts as they become due; (b) own property that has a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent liabilities) as they become due; and (c) have adequate capital to carry on its business.  No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated hereby with the intent to hinder, delay or defraud either present or future creditors of Buyer. In connection with the transactions contemplated hereby, Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.
		

		
			 
		

		
			Section 5.07     Legal Proceedings.  There are no Proceedings pending or, to Buyer's knowledge, threatened against or by Buyer or any Affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.
		

		
			 
		

		
			Section 5.08     Independent Investigation.  Buyer acknowledges and agrees that it (a) has made its own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning the Purchased Assets, the Assumed Liabilities and the Business and (b) has been furnished with or given adequate access to such information about the Purchased Assets, the Assumed Liabilities and the Business as it has requested.  Buyer further acknowledges and agrees that (i) the only representations, warranties, covenants and agreements made by Seller or any of its Affiliates or Representatives are the representations, warranties, covenants and agreements made in this Agreement, (ii) except as set forth in Article IV, none of Seller, Seller's Affiliates nor any of their respective Representatives makes any other representation or warranty of any kind or nature whatsoever, oral or written, express or implied, with respect to Seller, the Purchased Assets, the Assumed Liabilities, the Business, this Agreement or the other Transaction Documents (or the transactions contemplated hereby or thereby), including representations, warranties, covenants and agreements relating to the financial condition, results of operations, assets or liabilities of any of the foregoing entities and (iii) none of Seller, Seller's Affiliates nor any of their respective Representatives makes any representation or warranty as to (A) the operation of the Business by Buyer after the Closing in any manner or (B) the probable success or profitability of the Business (whether before or after the Closing).  Except for the representations and warranties contained in Article IV, neither Buyer nor any of its Affiliates has relied upon any other representations or warranties or any other information made or supplied by or on behalf of Seller or any of its Affiliates or Representatives, and Buyer acknowledges and agrees that none of Seller or its Affiliates or Representatives has any liability or responsibility for any other representation, warranty, opinion, projection, forecast, advice, statement or information made, communicated or furnished (orally or in writing) to Buyer, its Affiliates or their respective Representatives (including any opinion, projection, forecast, advice, statement or information that may have been or may be provided to Buyer by any Affiliate or Representative of Buyer).
		

		
			 
		

		
			Section 5.09     Representation and Warranty Insurance. Buyer has purchased an insurance policy insuring the representations and warranties of Seller contained in Article IV 
		

		
			

		 

		

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hereof (the "Representation and Warranty Policy"), a true, correct and complete copy of which is attached hereto as Schedule 5.09.
		

		
			 
		

		
			ARTICLE VI
		

		
			 
		

		
			COVENANTS
		

		
			 
		

		
			Section 6.01     Certain Employee Matters.
		

		
			 
		

		
			(a)     Continued Employment.  On the date hereof, Buyer will (subject to satisfaction of Buyer's standard hiring policies) make a written offer to employ, in compliance with the requirements of this Section 6.01, (i) for a period commencing on the Closing, each Closing Employee identified to Seller in writing no less than two (2) Business Days prior to the date hereof and (ii) for a period commencing on the expiration or termination of the Transition Services Agreement with respect to the Contract Services (as defined in the Transition Services Agreement) (such date, the "TSA Transfer Date"), each Retained Employee identified to Seller in writing no less than two (2) Business Days prior to the date hereof (each Closing Employee and Retained Employee who accepts such an offer, respectively, a "Closing Transferee" or "TSA Transferee" and, collectively, the "Hired Employees" and the date of commencement of employment with Buyer of each Hired Employee, respectively the "Employment Transfer Date"); provided that Buyer shall make offers of employment to a sufficient number of Closing Employees and Retained Employees so as not to trigger notice obligations or Liabilities under the WARN Act. The Closing Employees and Retained Employees shall have not less than four (4) Business Days to accept or reject such offers in writing.    
		

		
			 
		

		
			(b)     Except for those items set forth on Section 2.03 of the Buyer Disclosure Schedules or as otherwise included in the Adjustment Amount, Seller and its Subsidiaries shall be solely responsible, and Buyer shall have no obligations whatsoever for, any compensation, severance or other amounts payable to any Business Employee, including, without limitation, hourly pay, commission, bonus, salary, fringe, pension or profit sharing benefits or severance pay for any period relating to the service with Seller or its Subsidiaries at any time on or prior to the Closing Date, in the case of Closing Employees, or the TSA Transfer Date, in the case of Retained Employees, and, to the extent not reflected in the Adjustment Amount, Seller shall pay all such amounts to all entitled persons on or prior to the Closing Date or the TSA Transfer Date, as the case may be.
		

		
			 
		

		
			(c)     Except with respect to claims for health flexible spending accounts and dependent flexible spending accounts that have been transferred to Buyer as described in (h) below, Seller and its Subsidiaries shall remain solely responsible for the satisfaction of all claims for medical, dental, life insurance, health accident or disability benefits brought by or in respect of the Business Employees or the spouses, dependents or beneficiaries thereof, which claims relate to events occurring on or prior to the Closing Date, in the case of Closing Employees, or the TSA Transfer Date, in the case of Retained Employees. Seller also shall remain solely responsible for all workers' compensation claims of the Business Employees which relate to events occurring on or prior to the Closing Date, in the case of Closing Employees, or the TSA Transfer Date, in the case of Retained Employees.
		

		
			 
		

		
			

		 

		

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(d)     [Intentionally omitted.]
		

		
			 
		

		
			(e)     Service Credit.  Buyer will give each Hired Employee full credit for such Hired Employee's service with Seller and its Subsidiaries for purposes of eligibility, vesting, and determination of the amount and level of benefits (except for purposes of benefit accruals under defined benefit pension plans) pursuant to any benefit plans made generally available to employees or officers or any class or level of employees or officers maintained by Buyer or any of its Affiliates in which a Hired Employee participates to the same extent recognized by Seller immediately before the applicable Employment Transfer Date; provided, however, that such service is not to be recognized to the extent that such recognition would result in a duplication of benefits with respect to the same period of service.
		

		
			 
		

		
			(f)     Welfare Benefits.  Buyer will use reasonable best efforts to (i) waive any preexisting condition limitations otherwise applicable to Hired Employees, their spouses and their eligible dependents under any plan of Buyer or any Affiliate of Buyer that provides health and welfare benefits in which Hired Employees, their spouses and their eligible dependents may be eligible to participate on or after the applicable Employment Transfer Date, except for any limitations that were in effect with respect to such employees as of the applicable Employment Transfer Date under the analogous plan of Seller and its Subsidiaries, (ii) credit any deductible, co-payment and out-of-pocket maximums incurred by the Hired Employees and their eligible dependents under the health and other plans in which they participated immediately before the applicable Employment Transfer Date during the portion of the calendar year before the applicable Employment Transfer Date in satisfying any deductibles, co-payments or out-of-pocket maximums under health plans of Buyer or any of its Affiliates in which they are eligible to participate on or after the applicable Employment Transfer Date in the same plan year in which such deductibles, co-payments or out-of-pocket maximums were incurred, and (iii) waive any waiting period limitation or evidence of insurability requirement that would otherwise be applicable to a Hired Employee and his or her eligible dependents on or after the applicable Employment Transfer Date to the extent such Hired Employee or eligible dependent had satisfied any similar limitation or requirement under an analogous plan of Seller before the applicable Employment Transfer Date.  No later than thirty (30) days following the Closing Date, Seller shall provide or cause to be provided to Buyer a report that provides each Closing Transferee's co-payments, deductibles and out-of-pocket expenses paid under the Employee Plans through the Closing Date, and no later than thirty (30) days following the TSA Transfer Date, Seller shall provide or cause to be provided to Buyer a report that provides each TSA Transferee's co-payments, deductibles and out-of-pocket expenses paid under the Employee Plans through the TSA Transfer Date.
		

		
			 
		

		
			(g)     401(k) Plan.  Effective not later than the Closing Date, Buyer shall maintain or designate a defined contribution plan and related trust intended to be qualified under Sections 401(a), 401(k) and 501(a) of the Code (the "Buyer 401(k) Plan").  Effective as of the applicable Employment Transfer Date, each Hired Employee shall cease participation in the Seller 401(k) Plan and, subject to the provisions of Section 6.01(e), be eligible to participate in the Buyer 401(k) Plan.  As soon as practicable following the applicable Employment Transfer Date, Seller shall cause any and all accounts of Hired Employees under the Seller 401(k) Plan, and the value of the assets attributable to such accounts, to be transferred to the Buyer 401(k) Plan in accordance with Section 414(l) of the Code.  The assets to be transferred shall be in the 
		

		
			

		 

		

			33

		

 

		

			 

		

form of cash and, to the extent of plan loans, promissory notes.  The Buyer shall cause the administrator of, and the trustee of the trust established under, the Buyer 401(k) Plan to accept such transfer.  Prior to the transfer, Seller and Buyer or their respective Affiliates shall notify the Internal Revenue Service of the transfer by timely filing Forms 5310-A, to the extent such filings are required.  Upon such transfer, the Buyer 401(k) Plan shall assume all liabilities and obligations whatsoever with respect to all accounts transferred from the Seller 401(k) Plan to the Buyer 401(k) Plan in respect of each respective Hired Employee and each of Seller and its Affiliates and the Seller 401(k) Plan shall be relieved of all such liabilities and obligations.  Following an applicable Employment Transfer Date and before the transfer of respective plan account assets and liabilities as provided in this subsection (g), Buyer shall cooperate with Seller to ensure the continued servicing of any plan loan of a Hired Employee under the Seller 401(k) Plan through continued payroll deductions or direct loan payments to the Seller 401(k) Plan, as applicable.  Notwithstanding the preceding, if there are more than two Employment Transfer Dates, the Buyer and the Buyer 401(k) Plan shall only be obligated to accept two (2) transfers of assets pursuant to this Section 6.01(g).  
		

		
			 
		

		
			(h)     Health and Dependent Flex Account Transfer.  Effective as of the applicable Employment Transfer Date, Buyer will have in effect flexible spending reimbursement accounts for Hired Employees for medical and dependent care expenses under a cafeteria plan qualified under Section 125 of the Code and will credit such accounts with the amount credited as of the applicable Employment Transfer Date under comparable accounts maintained with Seller from the beginning of the plan year to the applicable Employment Transfer Date.  As soon as practical after the Closing Date, (i) Seller will pay to Buyer in cash the amount, if any, by which aggregate contributions made by Closing Transferees to Seller's flexible spending accounts for such plan year exceeded the aggregate benefits provided to Closing Transferees for such plan year as of the Closing Date or (ii) Buyer will pay to Seller in cash the amount, if any, by which aggregate benefits provided to Closing Transferees under Seller's flexible spending accounts exceeded the aggregate contributions made by Closing Transferees for such plan year as of the Closing Date.  As soon as practical after the TSA Transfer Date, (i) Seller will pay to Buyer in cash the amount, if any, by which aggregate contributions made by TSA Transferees to Seller's flexible spending accounts for such plan year exceeded the aggregate benefits provided to TSA Transferees for such plan year as of the TSA Transfer Date or (ii) Buyer will pay to Seller in cash the amount, if any, by which aggregate benefits provided to TSA Transferees under Seller's flexible spending accounts exceeded the aggregate contributions made by TSA Transferees for such plan year as of the TSA Transfer Date.  No later than thirty (30) days following the Closing Date  and TSA Transfer Date, respectively, Seller shall provide or cause to be provided to Buyer a report of the foregoing calculations.
		

		
			 
		

		
			(i)     COBRA Coverage.  Buyer will provide any required continuation coverage pursuant to Section 4980B of the Code for the Hired Employees and their qualified beneficiaries with respect to "qualifying events" (as defined in Section 4980B(f)(i) of the Code) occurring on or after the applicable Employment Transfer Date.
		

		
			 
		

		
			(j)     Actions by Affiliates.  All obligations undertaken by Buyer or Seller under this Section may be satisfied in whole or in part by an Affiliate of such person.
		

		
			 
		

		
			

		 

		

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(k)     Cooperation; Employee and Plan Information.  Seller and Buyer each will, and each will cause its Affiliates as necessary to, cooperate (i) in carrying out the provisions of this Section 6.01 (Certain Employee Matters) (including working with third-party administrators and insurance carriers and making available to the other such records and other information as the other may reasonably request to facilitate the determination of the period of service and salary of any Hired Employee with Seller or an Affiliate) and (ii) in the preparation, execution and filing of documents required by the transfer of assets and Liabilities pursuant to this Section 6.01.
		

		
			 
		

		
			(l)     WARN Act.  Schedule 6.01(l) of the Seller Disclosure Schedules sets forth a list of the name and site of employment of any and all Business Employees who have experienced, or will experience, an employment loss or layoff – as defined by the WARN Act – within ninety (90) days prior to the Closing Date.  Seller shall update this list as of the date immediately prior to the Closing Date.  For a period of ninety (90) days from and after the Closing Date, Buyer shall not engage in any conduct which would result in an employment loss or layoff for a sufficient number of employees of Buyer which, if aggregated with any such conduct on the part of Seller prior to the Closing Date, would trigger the WARN Act.  Buyer will be responsible for and assume all Liabilities arising from any action occurring at or after Closing at the request or direction of Buyer or its Affiliates that results in a "mass layoff or "plant closing" under the WARN Act.  
		

		
			 
		

		
			(m)     Third Party Beneficiaries.  The parties hereto do not intend for this Section 6.01 or any other term or provision of this Agreement to create any rights or obligations as between Buyer and Seller, and no past, present, or future employee (or their family members) of Buyer or Seller will be treated as a third party beneficiary of this Agreement. Nothing contained in this Agreement, whether express or implied, shall be treated as an amendment or other modification of any Employee Plan or any other employee benefit plan or limit the right of Seller or Buyer or their respective Affiliates, as applicable, to amend, terminate or otherwise modify any Employee Plan or any other employee benefit plan.
		

		
			 
		

		
			Section 6.02     Confidentiality.  From and after the date of this Agreement, each of Buyer and Seller shall, and shall cause each of their respective Affiliates and Representatives to, keep confidential the terms of this Agreement and the Transaction Documents and the negotiations relating thereto and all documents and information obtained by a party hereto (or any of such party's Affiliates or Representatives) from another party (or any of such party's Affiliates or Representatives) in connection with the transactions contemplated hereby and thereby (collectively, the "Confidential Information") except (i) to the extent that any Confidential Information must be disclosed to obtain any approvals of a Governmental Authority or consents relating to the transactions contemplated by this Agreement or any other Transaction Document, (ii) for disclosures otherwise made in satisfaction of any of the obligations under this Agreement or any other Transaction Document, (iii) to the extent required by applicable Law, (iv) as made public prior to the date of this Agreement by either party hereto not in violation of this Agreement or any other Transaction Document, (v) each of Buyer and Seller may disclose such information to such Person's equityholders or Affiliates, and their respective Representatives, in each case to the extent necessary to perform a specific function in connection with this Agreement or any other Transaction Document or the transactions contemplated hereby 
		

		
			

		 

		

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or thereby and (vi) Seller may disclose the terms of this Agreement and the Transaction Documents to Seller's secured lenders.
		

		
			 
		

		
			Section 6.03     Public Announcements.  Unless otherwise required by applicable Law or stock exchange requirements (based upon the reasonable advice of counsel), each of the parties hereto will cooperate with each other in the development and distribution of all news releases and other public information disclosures with respect to this Agreement or the other Transaction Documents or any of the transactions contemplated hereby or thereby, and no party hereto shall make any such news release or public disclosure without first consulting with the other party hereto.  Notwithstanding the foregoing, nothing set forth in this Section 6.03 shall limit or prohibit any private equity fund associated with Buyer from disclosing the financial terms and conditions, or any other terms and conditions, of this Agreement or any other Transaction Document and the transactions contemplated hereby or thereby to its limited partners and Affiliates.
		

		
			 
		

		
			Section 6.04     Bulk Sales Laws.  Without admitting the applicability of the bulk transfer Laws of any jurisdiction, the parties hereto hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.
		

		
			 
		

		
			Section 6.05     Taxes.
		

		
			 
		

		
			(a)     All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents (including any real property transfer Tax and any other similar Tax) ("Transfer Taxes") shall be borne and paid by Buyer when due. Buyer shall, at its own expense, timely file any Tax Return or other document with respect to such Transfer Taxes (and Seller shall cooperate with respect thereto as necessary). Seller or its Subsidiary, as applicable, shall provide Buyer with a completed and signed Texas Statement of Occasional Sale (Form 01-917) and any such other applicable exemption statement for any other State, dated as of the Closing Date, at or prior to the Closing Date.
		

		
			 
		

		
			(b)     Real and personal property Taxes and ad valorem Taxes ("Property Taxes") on the Purchased Assets shall be prorated between Buyer and Seller effective as of the Closing Date, with Seller being responsible for amounts relating to the period on or prior to the Closing Date and Buyer being responsible for amounts relating to the period after the Closing Date.  If the final Property Tax rate or final assessed value for the current tax year is not yet established by the date of the Conclusive Adjustment Amount, the proration shall be made on the basis of the rate or assessed value in effect for the preceding tax year.  After the Closing, upon receipt of bills for the period including the Closing, adjustments to the apportionment shall be made by Seller and Buyer so that if either Seller or Buyer paid more than its proper share as determined at the date of the Conclusive Adjustment Amount, the other party shall promptly reimburse such party for the excess amount paid by it.
		

		
			 
		

		
			Section 6.06     Further Assurances.  Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be 
		

		
			

		 

		

			36

		

 

		

			 

		

reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.
		

		
			 
		

		
			Section 6.07     Mail.  If Buyer receives any mail or other communication that does not relate to (a) Buyer's active vendors or suppliers for the Purchased Assets or the Business or (b) the Purchased Assets or post-Closing aspects of the Business, then Buyer shall forward it to Seller within five (5) Business Days after receipt.  If Seller receives any mail or other communication that relates to the Purchased Assets or post-Closing aspects of the Business, then Seller shall undertake to forward it to Buyer within five (5) Business Days after receipt.
		

		
			 
		

		
			Section 6.08     Intracompany Arrangements.  Except for those arrangements set forth on Section 6.08 of the Seller Disclosure Schedules, as of the Closing, all services, commitments or other arrangements provided by Seller or its Affiliates that existed pre-Closing for the benefit of the Business shall cease.
		

		
			 
		

		
			Section 6.09     Release of Seller Guarantees.  Buyer agrees to cause Seller and its Affiliates to be absolutely and unconditionally relieved at the Closing of all Losses arising out of the letters of credit, corporate guarantees and other similar items issued and outstanding in connection with the Business listed on Schedule 6.09 of the Seller Disclosure Schedules (together the "Seller Guarantees").  Without limiting the foregoing, Buyer will (a) pay any increased rate, make other financial accommodation, provide such security required by the issuer, and agree to any additional requirements of the issuer as a condition to obtaining such replacement and release of Seller Guarantees and (b) pay all of the issuer's assessments, fees, penalties and other costs and expenses relating to the foregoing.  Buyer will pay and otherwise be responsible for any Losses incurred or suffered by Seller or any of its Affiliates as a result of any Seller Guarantee not having been replaced and released as set forth above.  Buyer shall indemnify Seller and its Affiliates for any cost incurred by Seller or any of its Affiliates in connection with any Seller Guarantee that is not released or replaced in accordance with this Section 6.09.
		

		
			 
		

		
			Section 6.10     Insurance.  Effective as of the Closing, Buyer will become solely responsible for all insurance coverage and related risk of loss with respect to the Purchased Assets and the Business.  Buyer acknowledges that all insurance coverage for the Purchased Assets and the Assumed Liabilities under policies of Seller and its Affiliates shall terminate as of the Closing and, following the Closing, no claims may be brought against any policy of Seller, or any of its Affiliates in respect of the Purchased Assets or the Assumed Liabilities regardless of whether the events underlying such claim arose prior to or after the Closing. Without limiting or being limited by any other provision of this Agreement, Buyer does not have any right to make any claim under any insurance policy maintained or formerly maintained by Seller or any of its Affiliates with respect to the Purchased Assets or the Business.
		

		
			 
		

		
			Section 6.11     Surveys and Title Policy.  Prior to the Closing Date, Seller has, at its expense, provided Buyer with either a new survey or an update of an existing survey for any tract of Owned Real Property where there is not an existing survey or the existing survey is more than three (3) years old.  Buyer may elect to revise, modify or re-certify any other existing survey at its expense.  At the Closing, Buyer may, at its expense, elect to obtain an owner's policy of title insurance in an amount determined by Buyer covering some or all of the Owned 
		

		
			

		 

		

			37

		

 

		

			 

		

Real Property (the "Title Policy").  Seller agrees to execute such documents and provide such assistance as may be reasonably required to enable Buyer to obtain the Title Policy.
		

		
			 
		

		
			Section 6.12     Use of Business Name.  Promptly after the Closing, but no later than thirty (30) Business Days following the Closing Date, Seller shall amend its organizational documents and take all such other actions necessary to change its name to one sufficiently dissimilar to the Business Name, in Buyer's reasonable judgment, to avoid confusion and to cease conducting business under or using the Business Name.  Seller shall provide written evidence of such name change to Buyer and take all actions reasonably requested by Buyer to enable Buyer to use the Business Name after the Closing.  After the expiration of such thirty (30) Business Day period, Seller and its Affiliates (a) shall not use the Business Name (or any variant or derivation thereof) in any commercial manner (for the avoidance of doubt, excluding references to the historical business or for legitimate tax or other regulatory or reporting obligations) and (b) shall remove, strike over or otherwise obliterate the Business Name from any buildings, signs, equipment or other structures (including on uniforms and motor vehicles) owned, possessed or used by Seller and its Affiliates, and Seller and its Affiliates shall thereafter not use the Business Name on any new stationery, business forms, packaging, containers and other similar personal property.
		

		
			 
		

		
			Section 6.13     No Acts of Bankruptcy.  Seller covenants that it will not under any circumstances commit and/or commence an Act of Bankruptcy within any time during the later of (i) the next ninety (90) days following the Closing Date, or (ii) such period of time that equals ninety (90) days after the date on which all the transfers and/or conveyances of property to Buyer contemplated under this Agreement have become final and/or legally effective in all respects.
		

		
			 
		

		
			Section 6.14     Permit Coordination and Related Activities.
		

		
			 
		

		
			(a)     Until Buyer is able to obtain transfer, issuance or reissuance of the Retained Permits held by Seller and any other regulatory approvals that relate to the Business and required for the conduct of the Business as currently conducted by Seller, Seller shall continue as permittee and shall remain subject to all of the obligations and responsibilities associated with the Retained Permits. Seller shall reasonably cooperate with Buyer to facilitate Buyer's obtainment of the Retained Permits.  Except as required by Law or Permit, Seller agrees that, except in coordination with Buyer, it shall not file any Permit application or take or cause any other act or omission, direct or indirect, that would cause a reduction in the Business's operational capacity, increase the Business's cost of operation in a material way (either based upon an individual act or omission, or in the aggregate), or otherwise materially and unreasonably impede the operation of the Business (either based upon an individual act or omission or in the aggregate).
		

		
			 
		

		
			(b)     Until transfer, issuance or reissuance of the Retained Permits to Buyer, Seller shall coordinate all compliance matters related to the Retained Permits or Laws relating to the Retained Permits with Buyer and, unless required or prohibited by Law, will not submit any written communication related to the Retained Permits or operations regulated thereunder to Governmental Authorities with jurisdiction without Buyer's consent.
		

		
			 
		

		
			

		 

		

			38

		

 

		

			 

		

(c)     Buyer, in coordination with Seller, shall file all applications for transfer, issuance or re-issuance of the Retained Permits and any other regulatory approvals as soon as practicable after the Closing Date and use all commercially reasonable and necessary corporate resources to diligently pursue and obtain such Retained Permits and approvals.
		

		
			 
		

		
			(d)     If Seller receives any notice or inquiry from a Governmental Authority with jurisdiction over the Retained Permits or Laws relating to the Retained Permits, or if any filing is required in connection with a Retained Permit, Seller shall have a duty to notify and consult with Buyer. If Buyer receives any notice or inquiry from, or is inspected by, any Governmental Authority with jurisdiction over the Retained Permits or Laws relating to the Retained Permits, or if Buyer desires any Retained Permit modification, it shall have a duty to notify and consult with Seller.  
		

		
			 
		

		
			(e)     Prior to the transfer, issuance or re-issuance to Buyer of a given Retained Permit, Seller shall, if so requested by Buyer, continue to fulfill the reporting obligations to any Governmental Authority pursuant to such Retained Permit and requirements of Laws relating to such Retained Permit; provided, however, that Buyer shall give the Seller access to all information required to complete such reports. Any such reports and responses shall be reviewed jointly by Buyer and Seller prior to filing. Each Party is mutually obligated to promptly notify the other upon gaining knowledge of or receiving any notice relating to such Retained Permit or operations regulated thereunder from any Authority.
		

		
			 
		

		
			(f)     If required by applicable Laws with respect to a given Retained Permit or operations regulated thereunder, Seller will provide notice to applicable Governmental Authorities that Seller has engaged Buyer to manage the day-to-day activities of the Business and that Seller continues to be ultimately responsible as the permittee until such time as Buyer obtains the transfer or reissuance of the relevant Retained Permit. If, however, such arrangement is deemed to not be in compliance with Laws, Buyer and Seller shall cooperate in good faith to formulate a mutually agreeable alternative arrangement whereby the Business as relevant to such Retained Permit or operations regulated thereunder can continue to operate in compliance with Law.
		

		
			 
		

		
			ARTICLE VII
		

		
			 
		

		
			INDEMNIFICATION
		

		
			 
		

		
			Section 7.01     Indemnification by Seller.  Subject to Section 7.07, Seller hereby unconditionally, absolutely, and irrevocably agrees to and shall defend (in accordance with this Article VII) and indemnify Buyer and each of Buyer's members, Affiliates, managers, officers, directors, employees, counsel, successors, assigns, and legal and personal representatives (Buyer and such Persons are collectively referred to as the "Buyer Indemnified Persons") from and against, and shall reimburse the Buyer Indemnified Persons for, each and every Loss, paid, imposed on, or incurred by the Buyer Indemnified Persons, directly or indirectly, relating to, resulting from or arising out of, or any allegation by any third party of, any of the following:  (a) any inaccuracy in any representation or warranty of Seller contained in Article IV hereof, (b) any breach, default, or nonfulfillment of any covenant, agreement, or other obligation of Seller under 
		

		
			

		 

		

			39

		

 

		

			 

		

this Agreement, (c) any intellectual property infringement relating to the Sandbox Agreement and (d) the North Dakota Audit.
		

		
			 
		

		
			Section 7.02     Indemnification by Buyer.  Buyer unconditionally, absolutely, and irrevocably agrees to and shall defend, indemnify, and hold harmless Seller and its members, Affiliates, managers, officers, directors, employees, counsel, agents, contractors, successors, assigns, and legal and personal representatives (Seller and such Persons are collectively referred to as the "Seller Indemnified Persons") from and against, and shall reimburse the Seller Indemnified Persons for, each and every Loss paid, imposed on, or incurred by the Seller Indemnified Persons, directly or indirectly, relating to, resulting from or arising out of, or any allegation by any third party of, any of the following:  (a) any inaccuracy in any representation or warranty of Buyer contained in Article V hereof, (b) any breach, default, or nonfulfillment of any covenant, agreement or other obligation of Buyer under this Agreement and (c) any Retained Asset, Retained Employee or Retained Permit first arising after Closing that are not a breach of a Seller representation or warranty or covenant in this Agreement.
		

		
			 
		

		
			Section 7.03     Limitations.
		

		
			 
		

		
			(a)     Notwithstanding anything to the contrary in this Article VII, Seller shall not be liable under Section 7.01(a) for any inaccuracy of (i) any representation or warranty (other than with respect to a Fundamental Representation) unless written notice of a possible claim for indemnification is given by the claiming Buyer Indemnified Person to Seller on or before the General Survival Date or (ii) any Fundamental Representation unless written notice of a possible claim for indemnification is given by the claiming Buyer Indemnified Person to Seller on or before the Fundamental Survival Date.  The covenants, agreements and other obligations of Seller that are contained in this Agreement shall survive the Closing in accordance with their respective terms.
		

		
			 
		

		
			(b)     Notwithstanding anything to the contrary, with respect to any claim for indemnification pursuant to Section 7.01, the Buyer Indemnified Persons shall be entitled to indemnification:
		

		
			 
		

		
			(i)     Only if the aggregate Losses to all Buyer Indemnified Persons with respect to such claims exceeds Five Hundred Thousand Dollars ($500,000) (the "Deductible"), whereupon, subject to clause (ii) below, Seller shall be obligated to pay in full all such amounts, but only to the extent such aggregate Losses are in excess of the Deductible; and
		

		
			 
		

		
			(ii)     Only with respect to individual items where the Losses relating thereto are in excess of Thirty Five Thousand Dollars ($35,000) (and any items less than such threshold shall not be aggregated for the purposes of the immediately preceding clause (i)).
		

		
			 
		

		
			(c)     Notwithstanding anything herein to the contrary, in no event shall Seller's aggregate indemnification obligations pursuant to Section 7.01 exceed the Indemnity Escrow Amount (the "Indemnity Cap"); provided, however, that the Indemnity Cap shall not apply to Losses relating to, resulting from or arising out of, or any allegation by any third party 
		

		
			

		 

		

			40

		

 

		

			 

		

of, (i) any inaccuracy in any Fundamental Representation, (ii) any fraud committed by Seller or its Affiliates, (iii) any intellectual property infringement relating to the Sandbox Agreement, and (iv) the North Dakota Audit, in each case for which the Buyer Indemnified Persons have used best efforts to recover such Loss under the Representation and Warranty Policy for any amounts above the Indemnity Cap.  Notwithstanding the foregoing, in no event shall Seller's aggregate indemnification obligations pursuant to Section 7.01 (including, without limitation, any Losses relating to, resulting from or arising out of, or any allegation by any third party of, any inaccuracy in any Fundamental Representation, intellectual property infringement relating to the Sandbox Agreement or the North Dakota Audit) exceed the Base Purchase Price, except to the extent that any such Losses relate to, result from or arise out of any fraud committed by Seller or its Affiliates.
		

		
			 
		

		
			(d)     Buyer acknowledges that, subject to Section 7.08, its sole and exclusive remedy against Seller for Losses with respect to (i) all claims relating to the representations, warranties, covenants and agreements contained in this Agreement, (ii) other claims pursuant to or in connection with this Agreement, or (iii) other claims relating to the Purchased Assets will be pursuant to the indemnification provisions set forth in this Article VII.  Notwithstanding anything herein to the contrary, no breach of any representation, warranty, covenant or agreement contained herein or in the other Transaction Documents will give any right on the part of Buyer after the consummation of the transaction contemplated by this Agreement to rescind this Agreement or any of the transactions contemplated hereby.
		

		
			 
		

		
			(e)     Notwithstanding anything to the contrary in this Article VII, Buyer shall not be liable under Section 7.02(a) for any inaccuracy of (i) any representation or warranty (other than with respect to a Fundamental Representation) unless written notice of a possible claim for indemnification is given by the claiming Seller Indemnified Person to Buyer on or before the General Survival Date or (ii) any Fundamental Representation unless written notice of a possible claim for indemnification is given by the claiming Seller Indemnified Person to Buyer on or before the Fundamental Survival Date.  The covenants, agreements and other obligations of Buyer that are contained in this Agreement shall survive the Closing in accordance with their respective terms.
		

		
			 
		

		
			(f)     Notwithstanding anything to the contrary, with respect to any claim for indemnification pursuant to clause (a) or (b) of Section 7.02, the Seller Indemnified Persons shall be entitled to indemnification:
		

		
			 
		

		
			(i)     Only if the aggregate Losses to all Seller Indemnified Persons with respect to such claims exceeds the Deductible, whereupon, subject to clause (ii) below, Buyer shall be obligated to pay in full all such amounts, but only to the extent such aggregate Losses are in excess of the Deductible; and
		

		
			 
		

		
			(ii)     Only with respect to individual items where the Losses relating thereto are in excess of Twenty Thousand Dollars ($20,000) (and any items less than such threshold shall not be aggregated for the purposes of the immediately preceding clause (i)).
		

		
			 
		

		
			

		 

		

			41

		

 

		

			 

		

(g)     Seller acknowledges that its sole and exclusive remedy against Buyer for Losses with respect to (i) all claims relating to the representations, warranties, covenants and agreements contained in this Agreement, (ii) other claims pursuant to or in connection with this Agreement, or (iii) other claims relating to the Purchased Assets will be pursuant to the indemnification provisions set forth in this Article VII.  Notwithstanding anything herein to the contrary, no breach of any representation, warranty, covenant or agreement contained herein or in the other Transaction Documents will give any right on the part of Seller after the consummation of the transaction contemplated by this Agreement to rescind this Agreement or any of the transactions contemplated hereby.
		

		
			 
		

		
			(h)     Each Party agrees to use commercially reasonable efforts to mitigate any Losses which form the basis of any claim for indemnification under this Article VII. With respect to a particular claim for indemnification, to the extent the Indemnifying Person has paid in full the claim to the Indemnified Person pursuant to this Article VII, each Party agrees to use commercially reasonable efforts to cause such Indemnified Person to reimburse the Indemnifying Person to the extent of any subsequent insurance or other recoveries for such Losses received by the Indemnified Person.
		

		
			 
		

		
			Section 7.04     Notice and Defense of Third-Party Claims.  If any Proceeding shall be brought or asserted by a third party against an indemnified party or any successor thereto (the "Indemnified Person") in respect of which indemnity may be sought under this Article VII from an indemnifying person or any successor thereto (the "Indemnifying Person") pursuant to a Proceeding, the Indemnified Person shall give prompt written notice (in no event to exceed twenty (20) days) of such Proceeding to the Indemnifying Person, who shall be entitled to assume the defense thereof, including the employment of counsel selected by the Indemnifying Person and the payment of all expenses. If the Indemnifying Person undertakes to defend any Proceeding, it shall promptly notify the Indemnified Person of its intention to do so and the Indemnified Person shall cooperate with the Indemnifying Person and its counsel in the defense thereof.  Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Person with any books, records or information reasonably requested by the Indemnifying Person that are in the Indemnified Person's possession or control. After the Indemnifying Person has notified the Indemnified Person of its intention to defend any such Proceeding, the Indemnifying Person shall not be liable for any additional legal or other expenses incurred by the Indemnified Person in connection with any defense or settlement of such Proceeding.  An Indemnified Person shall have the right to participate in the defense of any Proceeding at its own expense; provided that the Indemnifying Party shall control the defense of any Proceeding after it undertakes the defense.  In the event that the Indemnifying Person, within twenty (20) days after notice of any such Proceeding, fails to assume the defense thereof, the Indemnified Person shall have the right to undertake the defense, compromise or settlement of such Proceeding for the account of and at the expense of the Indemnifying Person, subject to the right of the Indemnifying Person to assume the defense of such Proceeding at any time prior to the settlement, compromise or final determination thereof.  Anything in this Article VII to the contrary notwithstanding, the Indemnifying Person shall not, without the Indemnified Person's prior written consent, settle or compromise any Proceeding or consent to the entry of any judgment with respect to any Proceeding for anything other than money damages paid by the Indemnifying Person.  The Indemnifying Person may, without the Indemnified Person's prior written consent, settle or compromise any such Proceeding or consent to entry of any judgment with respect to any such 
		

		
			

		 

		

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Proceeding that requires solely the payment of money damages by the Indemnifying Person and that includes, as an unconditional term thereof, the release by the claimant or the plaintiff of the Indemnified Person from all liability in respect of such Proceeding.
		

		
			 
		

		
			Section 7.05     Insurance Proceeds.  Buyer shall be entitled to any insurance proceeds received by any Seller Indemnified Person in connection with any claim for which Buyer is entitled to indemnification pursuant to this Article VII, except to the extent such claim has already been satisfied by Seller.
		

		
			 
		

		
			Section 7.06     Express Negligence; Limitations on Defense to the Claims of Buyer.
		

		
			 
		

		
			(a)     THE FOREGOING INDEMNITIES ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES HERETO IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF, NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE, DOCTRINE RELATING TO INDEMNIFICATION FOR STRICT LIABILITY, OR ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF THE NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PERSONS.
		

		
			 
		

		
			(b)     TO THE EXTENT THAT BUYER MAKES ANY CLAIMS AGAINST SELLER UNDER THE PROVISIONS OF THIS Article VII, SELLER MAY NOT ASSERT, AND HEREBY EXPRESSLY WAIVES AS A DEFENSE, COUNTERCLAIM, OR OTHERWISE THAT BUYER HAS BEEN NEGLIGENT IN CONDUCTING ITS DUE DILIGENCE OF ANY ASPECT OF SELLER, THE PURCHASED ASSETS OR THE BUSINESS OR HAS FAILED TO CONDUCT ITS DUE DILIGENCE IN A PROPER OR ADEQUATE MANNER.
		

		
			 
		

		
			Section 7.07     Qualifications.  For purposes of determining Losses under this Article VII but not the accuracy of any particular representation or warranty in Article IV or Article V, each representation or warranty for which a breach has occurred and that contains any qualification shall be read as though there were no "Material Adverse Effect," "in all material respects" or other materiality (or correlative meaning) qualification.
		

		
			 
		

		
			Section 7.08     Representation and Warranty Insurance.  In the event that a Buyer Indemnified Person incurs a Loss for which such Buyer Indemnified Person would be entitled to indemnification or reimbursement pursuant to Section 7.01(a) above, such Buyer Indemnified Person must first use commercially reasonable efforts to recover such Loss through the Representation and Warranty Policy.  In the event that any amounts related to such Loss are not fully recovered through the Representation and Warranty Policy, then such Buyer Indemnified Person shall be entitled to make a claim for indemnification and/or reimbursement with respect to such amounts pursuant to Section 7.01(a) above, subject to the limitations set forth in Section 7.03 above. 
		

		
			 
		

		
			

		 

		

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ARTICLE VIII
		

		
			 
		

		
			MISCELLANEOUS
		

		
			 
		

		
			Section 8.01     Expenses.  Except as otherwise expressly provided herein (including Section 6.05 hereof), all costs and expenses, including, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.
		

		
			 
		

		
			Section 8.02     Notices.  Any and all notices or other communications required or permitted to be given under any of the provisions of this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery if personally delivered, (b) on the date sent by facsimile (with confirmation of transmission) if sent during normal business hours of the recipient during a Business Day, and otherwise on the next Business Day, if sent after normal business hours of the recipient, (c) if sent by a nationally recognized overnight courier service (delivery receipt requested) with charges paid by the dispatching party, on the later of (i) the first Business Day following the date of dispatch or (ii) the scheduled date of delivery by such service, or (d) four (4) Business Days after mailing if mailed by first class registered mail, return receipt requested, in each case addressed to the parties hereto at the addressees set forth below (or at such other address as any party may specify by notice to all other parties hereto given as aforesaid):
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						If to Seller:

					
					
						RockPile Energy Services, LLC

					
						1200 17th Street, Suite 2700

					
						Denver, Colorado 80202

					
						Attention: General Counsel

					
						Fax: 303-825-1389

				
	
					
						 

					
					
						 

				
	
					
						with a copy to:

					
					
						Skadden, Arps, Slate, Meagher & Flom LLP

					
						525 University Avenue

					
						Palo Alto, California  94301

					
						Attention:  Leif King

					
						Fax: 650-798-6530

				
	
					
						 

					
					
						 

				
	
					
						If to Buyer:

					
					
						RockPile Newco, LLC

					
						c/o White Deer Energy L.P.

					
						Bank of America Building, 47th Floor

					
						700 Louisiana

					
						Houston, Texas 77002

					
						Attention:  James K. Meneely III;

					
						Varun Babbili

					
						Fax: (713) 581-6900

				
	
					
						 

					
					
						 

				
	
					
						with a copy to:

					
					
						Locke Lord LLP

					
						600 Travis Street

					
						Suite 2800

				

		
			 
		

		

		 

		

			44

		

 

		

			 

		

	
					
						

					
						 

					
					
						Houston, Texas 77002

					
						Attention:  Joe Perillo

					
						Fax: 713-229-2610

				

		
			 
		

		
			Section 8.03     Interpretation.  For purposes of this Agreement: (a) the words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation"; (b) terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa; (c) references to Dollar amount thresholds shall not be deemed to be evidence of a Material Adverse Effect or materiality; and (d) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole. Unless otherwise specified or the context otherwise requires, references herein: (i) to Articles, Sections, and Disclosure Schedules mean the Articles and Sections of, and Disclosure Schedules attached to, this Agreement; (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
		

		
			 
		

		
			Section 8.04     Headings.  The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
		

		
			 
		

		
			Section 8.05     Severability.  If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
		

		
			 
		

		
			Section 8.06     Entire Agreement.  This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous representations, warranties, understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction Documents and Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.
		

		
			 
		

		
			Section 8.07     Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party hereto may assign its rights or obligations hereunder without the prior 
		

		
			

		 

		

			45

		

 

		

			 

		

written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.
		

		
			 
		

		
			Section 8.08     No Third Party Beneficiaries.  Except as otherwise expressly set forth in this Agreement, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
		

		
			 
		

		
			Section 8.09     Amendment and Modification; Waiver.  This Agreement may only be amended, modified or supplemented by an agreement in writing signed and delivered by each party hereto. No waiver by any party hereto of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party hereto shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
		

		
			 
		

		
			Section 8.10     Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.
		

		
			 
		

		
			(a)     This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).
		

		
			 
		

		
			(b)     ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN A STATE OR FEDERAL COURTS LOCATED IN THE STATE OF DELAWARE, AND EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURT AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
		

		
			 
		

		
			(c)     EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND 
		

		
			

		 

		

			46

		

 

		

			 

		

UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 8.10(c).
		

		
			 
		

		
			Section 8.11     Specific Performance.  The parties hereto acknowledge that, in view of the uniqueness of the Business and the transactions contemplated by this Agreement, each of Seller and Buyer would not have an adequate remedy at law for money damages in the event that this Agreement has not been performed in accordance with its terms, and therefore agrees that, in addition to all other remedies available at law or in equity, the other party hereto shall be entitled to an injunction or injunctions to prevent or restrain breaches or threatened breaches of this Agreement by the other (as applicable), and to specifically enforce the terms and provisions of this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of the other (as applicable).  Each of Seller and Buyer agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that the other party has an adequate remedy at law or that any award of specific performance is not an appropriate remedy for any reason at law or in equity.  Any party hereto seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.
		

		
			 
		

		
			Section 8.12     Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
		

		
			 
		

		
			Section 8.13     Non-recourse.  This Agreement may only be enforced against, and any Proceeding based upon, arising out of, or related to this Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against the entities that are expressly named as parties hereto and then only with respect to the specific obligations set forth herein with respect to such party. No past, present or future director, officer, employee, incorporator, manager, member, partner, stockholder, Affiliate, agent, attorney or other Representative of any party hereto or of any Affiliate of any party hereto, or any of their successors or permitted assigns, shall have any liability for any Liabilities of any party hereto under this Agreement or for any Proceeding based on, in respect of or by reason of the transactions contemplated hereby.
		

		
			 
		

		
			

		 

		

			47

		

 

		

			 

		

Section 8.14     NO SPECIAL DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREIN, IN NO EVENT SHALL EITHER PARTY HERETO BE LIABLE TO THE OTHER PARTY HERETO FOR ANY PUNITIVE, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES, INCLUDING LOSS OF FUTURE REVENUE OR PROFITS, LOSS OF BUSINESS REPUTATION OR OPPORTUNITY RELATING TO THE BREACH OR ALLEGED BREACH OF THIS AGREEMENT, OR DIMINUTION OF VALUE OR ANY DAMAGES BASED ON ANY TYPE OF MULTIPLE.
		

		
			 
		

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			

		 

		

			48

		

 

		

			 

		

		

		
			IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by an authorized officer of each of the parties hereto as of the date first written above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SELLER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ROCKPILE ENERGY SERVICES, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
						 

					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dustin Nygard

				
	
					
						 

					
					
						Name:

					
					
						Dustin Nygard

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				

		
			 
		

		
			 
		

		
			 
		

		

		 

		

			Asset Purchase Agreement

		

		

			Signature Page

		

		

			 

		

 

		

			 

		

	
					
						UY

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BUYER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ROCKPILE NEWCO, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						RockPile Energy Holdings, LLC

					
						Its managing member

				
	
					
						 

					
					
						 

					
					
						 

					
						 

					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ James K. Meneely III

				
	
					
						 

					
					
						Name:

					
					
						James K. Meneely III

				
	
					
						 

					
					
						Title:

					
					
						Manager

				

		
			 
		

		
			 
		

		
			 
		

		 

		

			Asset Purchase Agreement

		

		

			Signature PageExhibit 10.1

 

CREDIT AGREEMENT

 

dated as of December 6, 2016

 

among

 

PHARMACEUTICAL RESEARCH ASSOCIATES, INC.,
 as the Borrower,

 

PRA HEALTH SCIENCES, INC.,
 as Holdings,

 

The Several Lenders
 from Time to Time Parties Hereto,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent, Collateral Agent, 
 Letter of Credit Issuer, Swingline Lender and a Lender,

 

and

 

WELL FARGO SECURITIES, LLC, 
 CITIZENS BANK, N.A.,
 PNC CAPITAL MARKETS LLC and

SUNTRUST ROBINSON HUMPHREY, INC.

 

as Joint Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 1.
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
Defined Terms
    	
1
    
	
1.2
    	
Other Interpretive   Provisions
    	
67
    
	
1.3
    	
Accounting Terms
    	
68
    
	
1.4
    	
Rounding
    	
68
    
	
1.5
    	
References to   Agreements, Laws, Etc.
    	
68
    
	
1.6
    	
Exchange Rates
    	
68
    
	
1.7
    	
Rates
    	
69
    
	
1.8
    	
Times of Day
    	
69
    
	
1.9
    	
Timing of Payment or   Performance
    	
69
    
	
1.10
    	
Certifications
    	
69
    
	
1.11
    	
Compliance with Certain   Sections
    	
69
    
	
1.12
    	
Pro Forma and Other Calculations
    	
69
    
	
 
    	
 
    	
 
    
	
Section 2.
    	
Amount and Terms of   Credit
    	
72
    
	
 
    	
 
    	
 
    
	
2.1
    	
Commitments
    	
72
    
	
2.2
    	
Minimum Amount of Each   Borrowing; Maximum Number of Borrowings
    	
74
    
	
2.3
    	
Notice of Borrowing
    	
74
    
	
2.4
    	
Disbursement of Funds
    	
75
    
	
2.5
    	
Repayment of Loans;   Evidence of Debt
    	
76
    
	
2.6
    	
Conversions and   Continuations
    	
78
    
	
2.7
    	
Pro Rata Borrowings
    	
79
    
	
2.8
    	
Interest
    	
79
    
	
2.9
    	
Interest Periods
    	
80
    
	
2.10
    	
Increased   Costs, Illegality, Etc.
    	
80
    
	
2.11
    	
Compensation
    	
82
    
	
2.12
    	
Change of Lending   Office
    	
83
    
	
2.13
    	
Notice of Certain Costs
    	
83
    
	
2.14
    	
Incremental Facilities
    	
83
    
	
2.15
    	
Permitted Debt   Exchanges
    	
90
    
	
2.16
    	
Defaulting Lenders
    	
91
    
	
 
    	
 
    	
 
    
	
Section 3.
    	
Letters of Credit
    	
93
    
	
 
    	
 
    	
 
    
	
3.1
    	
Letters of Credit
    	
93
    
	
3.2
    	
Letter of Credit   Requests
    	
95
    
	
3.3
    	
Letter of Credit   Participations
    	
96
    
	
3.4
    	
Agreement to Repay Letter   of Credit Drawings
    	
98
    
	
3.5
    	
Increased Costs
    	
99
    
	
3.6
    	
New or Successor Letter   of Credit Issuer
    	
100
    
	
3.7
    	
Role of Letter of   Credit Issuer
    	
101
    
	
3.8
    	
Cash Collateral
    	
102
    
	
3.9
    	
Applicability of ISP   and UCP
    	
102
    
	
3.10
    	
Conflict with Issuer   Documents
    	
102
    
	
3.11
    	
Letters of Credit   Issued for Restricted Subsidiaries
    	
102
    
	
3.12
    	
Provisions Related to   Extended and Additional Revolving Credit
    	
 
    

 

i

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
Commitments
    	
102
    
	
 
    	
 
    	
 
    
	
Section 4.
    	
Fees
    	
103
    
	
 
    	
 
    	
 
    
	
4.1
    	
Fees
    	
103
    
	
4.2
    	
Voluntary Reduction of   Revolving Credit Commitments
    	
104
    
	
4.3
    	
Mandatory Termination   of Commitments
    	
104
    
	
 
    	
 
    	
 
    
	
Section 5.
    	
Payments
    	
104
    
	
 
    	
 
    	
 
    
	
5.1
    	
Voluntary Prepayments
    	
104
    
	
5.2
    	
Mandatory Prepayments
    	
105
    
	
5.3
    	
Method and Place of   Payment
    	
108
    
	
5.4
    	
Net Payments
    	
109
    
	
5.5
    	
Computations of   Interest and Fees
    	
112
    
	
5.6
    	
Limit on Rate of   Interest
    	
113
    
	
 
    	
 
    	
 
    
	
Section 6.
    	
Conditions Precedent to   Initial Borrowing
    	
113
    
	
 
    	
 
    	
 
    
	
6.1
    	
Credit Documents
    	
113
    
	
6.2
    	
Collateral
    	
114
    
	
6.3
    	
Legal Opinions
    	
114
    
	
6.4
    	
Closing Certificates
    	
114
    
	
6.5
    	
Authorization of   Proceedings of Holdings, the Borrower and the Guarantors; Corporate Documents
    	
114
    
	
6.6
    	
Fees
    	
114
    
	
6.7
    	
Solvency Certificate
    	
115
    
	
6.8
    	
PATRIOT Act
    	
115
    
	
6.9
    	
Financial Statements
    	
115
    
	
6.10
    	
Refinancing
    	
115
    
	
 
    	
 
    	
 
    
	
Section 7.
    	
Conditions Precedent to   All Credit Events
    	
115
    
	
 
    	
 
    	
 
    
	
7.1
    	
No Default;   Representations and Warranties
    	
115
    
	
7.2
    	
Notice of Borrowing;   Letter of Credit Request
    	
116
    
	
 
    	
 
    	
 
    
	
Section 8.
    	
Representations and   Warranties
    	
116
    
	
 
    	
 
    	
 
    
	
8.1
    	
Corporate Status
    	
116
    
	
8.2
    	
Corporate Power and   Authority
    	
116
    
	
8.3
    	
No Violation
    	
116
    
	
8.4
    	
Litigation
    	
117
    
	
8.5
    	
Margin Regulations
    	
117
    
	
8.6
    	
Governmental Approvals
    	
117
    
	
8.7
    	
Investment Company Act
    	
117
    
	
8.8
    	
True and Complete   Disclosure
    	
117
    
	
8.9
    	
Financial Condition;   Financial Statements; No Material Adverse Effect
    	
118
    
	
8.10
    	
Compliance with Laws;   No Default
    	
118
    
	
8.11
    	
Tax Matters
    	
118
    
	
8.12
    	
Compliance with ERISA
    	
118
    
	
8.13
    	
Subsidiaries
    	
118
    

 

ii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
8.14
    	
Intellectual Property
    	
119
    
	
8.15
    	
Environmental Laws
    	
119
    
	
8.16
    	
Properties
    	
119
    
	
8.17
    	
Solvency
    	
119
    
	
8.18
    	
Sanctions and   Anti-Terrorism Laws; FCPA
    	
119
    
	
8.19
    	
Security Interest in   Collateral
    	
120
    
	
 
    	
 
    	
 
    
	
Section 9.
    	
Affirmative Covenants
    	
120
    
	
 
    	
 
    	
 
    
	
9.1
    	
Information Covenants
    	
120
    
	
9.2
    	
Books, Records and   Inspections
    	
123
    
	
9.3
    	
Maintenance of   Insurance
    	
124
    
	
9.4
    	
Payment of Taxes
    	
124
    
	
9.5
    	
Preservation of   Existence; Consolidated Corporate Franchises
    	
124
    
	
9.6
    	
Compliance with   Statutes, Regulations, Etc.
    	
124
    
	
9.7
    	
ERISA
    	
125
    
	
9.8
    	
Maintenance of   Properties
    	
125
    
	
9.9
    	
Transactions with   Affiliates
    	
125
    
	
9.10
    	
End of Fiscal Years
    	
126
    
	
9.11
    	
Additional Guarantors   and Grantors; Additional Borrower
    	
126
    
	
9.12
    	
Pledge of Additional   Stock and Evidence of Indebtedness
    	
127
    
	
9.13
    	
Use of Proceeds
    	
128
    
	
9.14
    	
Further Assurances
    	
128
    
	
9.15
    	
Maintenance of Ratings
    	
129
    
	
9.16
    	
Lines of Business
    	
129
    
	
 
    	
 
    	
 
    
	
Section 10.
    	
Negative Covenants
    	
129
    
	
 
    	
 
    	
 
    
	
10.1
    	
Limitation on   Indebtedness
    	
129
    
	
10.2
    	
Limitation on Liens
    	
135
    
	
10.3
    	
Limitation on   Fundamental Changes
    	
135
    
	
10.4
    	
Limitation on Sale of   Assets
    	
137
    
	
10.5
    	
Limitation on   Restricted Payments
    	
138
    
	
10.6
    	
Limitation on   Subsidiary Distributions
    	
145
    
	
10.7
    	
Consolidated Total Debt   to Consolidated EBITDA Ratio
    	
147
    
	
10.8
    	
Fixed Charge Coverage   Ratio
    	
147
    
	
 
    	
 
    	
 
    
	
Section 11.
    	
Events of Default
    	
147
    
	
 
    	
 
    	
 
    
	
11.1
    	
Events of Default
    	
147
    
	
11.2
    	
Remedies Upon Event of   Default
    	
150
    
	
11.3
    	
Application of Proceeds
    	
150
    
	
11.4
    	
Equity Cure
    	
151
    
	
 
    	
 
    	
 
    
	
Section 12.
    	
The Agents
    	
152
    
	
 
    	
 
    	
 
    
	
12.1
    	
Appointment
    	
152
    
	
12.2
    	
Delegation of Duties
    	
152
    
	
12.3
    	
Exculpatory Provisions
    	
153
    
	
12.4
    	
Reliance by Agents
    	
153
    
	
12.5
    	
Notice of Default
    	
154
    

 

iii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
12.6
    	
Non-Reliance on   Administrative Agent, Collateral Agent and Other Lenders
    	
154
    
	
12.7
    	
Indemnification
    	
154
    
	
12.8
    	
Agents in Their Individual   Capacities
    	
155
    
	
12.9
    	
Successor Agents
    	
155
    
	
12.10
    	
Withholding Tax
    	
156
    
	
12.11
    	
Agents Under Security   Documents and Guarantee
    	
157
    
	
12.12
    	
Right to Realize on   Collateral and Enforce Guarantee
    	
157
    
	
12.13
    	
Administrative Agent   May File Proofs of Claim
    	
158
    
	
 
    	
 
    	
 
    
	
Section 13.
    	
Miscellaneous
    	
158
    
	
 
    	
 
    	
 
    
	
13.1
    	
Amendments, Waivers and   Releases
    	
158
    
	
13.2
    	
Notices
    	
162
    
	
13.3
    	
No Waiver; Cumulative   Remedies
    	
163
    
	
13.4
    	
Survival of   Representations and Warranties
    	
163
    
	
13.5
    	
Payment of Expenses;   Indemnification
    	
163
    
	
13.6
    	
Successors and Assigns;   Participations and Assignments
    	
164
    
	
13.7
    	
Replacements of Lenders   Under Certain Circumstances
    	
171
    
	
13.8
    	
Adjustments; Set-off
    	
172
    
	
13.9
    	
Counterparts
    	
172
    
	
13.10
    	
Severability
    	
172
    
	
13.11
    	
Integration
    	
172
    
	
13.12
    	
GOVERNING LAW
    	
173
    
	
13.13
    	
Submission to   Jurisdiction; Waivers
    	
173
    
	
13.14
    	
Acknowledgments
    	
173
    
	
13.15
    	
WAIVERS OF JURY TRIAL
    	
174
    
	
13.16
    	
Confidentiality
    	
174
    
	
13.17
    	
Direct Website   Communications
    	
175
    
	
13.18
    	
USA PATRIOT Act
    	
177
    
	
13.19
    	
Judgment Currency
    	
177
    
	
13.20
    	
Payments Set Aside
    	
177
    
	
13.21
    	
Euro
    	
177
    
	
13.22
    	
Special Provisions   Relating to Currencies Other Than Dollars
    	
178
    
	
13.23
    	
Acknowledgement and   Consent to Bail-In of EEA Financial Institutions
    	
178
    

 

iv

 

	
SCHEDULES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule 1.1(b)
    	
 
    	
Mortgaged Properties
    
	
Schedule 1.1(c)
    	
 
    	
Commitments of Lenders
    
	
Schedule 1.1(d)
    	
 
    	
Hedge Banks
    
	
Schedule 8.13
    	
 
    	
Subsidiaries
    
	
Schedule 9.14(d)
    	
 
    	
Post-Closing Actions
    
	
Schedule 10.1
    	
 
    	
Closing Date Indebtedness
    
	
Schedule 10.2
    	
 
    	
Closing Date Liens
    
	
Schedule 10.5
    	
 
    	
Closing Date Investments
    
	
Schedule 13.2
    	
 
    	
Notice Addresses
    
	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
 
    	
Form of Joinder Agreement
    
	
Exhibit B
    	
 
    	
Form of Guarantee
    
	
Exhibit C
    	
 
    	
Form of Pledge Agreement
    
	
Exhibit D
    	
 
    	
Form of Security Agreement
    
	
Exhibit E
    	
 
    	
Form of Letter of Credit Request
    
	
Exhibit F
    	
 
    	
Form of Credit Party Closing Certificate
    
	
Exhibit G
    	
 
    	
Form of Assignment and Acceptance
    
	
Exhibit H-1
    	
 
    	
Form of Promissory Note (Term Loans)
    
	
Exhibit H-2
    	
 
    	
Form of Promissory Note (Revolving Loans)
    
	
Exhibit I-1
    	
 
    	
Form of First Lien Intercreditor Agreement
    
	
Exhibit I-2
    	
 
    	
Form of Second Lien Intercreditor Agreement
    
	
Exhibit J-1
    	
 
    	
Form of U.S. Tax Compliance Certificate
    
	
 
    	
 
    	
(For Non-U.S. Lenders That Are Not Partnerships For   U.S. Federal Income Tax Purposes)
    
	
Exhibit J-2
    	
 
    	
Form of U.S. Tax Compliance Certificate
    
	
 
    	
 
    	
(For Non-U.S. Participants That Are Not Partnerships   For U.S. Federal Income Tax Purposes)
    
	
Exhibit J-3
    	
 
    	
Form of U.S. Tax Compliance Certificate
    
	
 
    	
 
    	
(For Non-U.S. Participants That Are Partnerships For   U.S. Federal Income Tax Purposes)
    
	
Exhibit J-4
    	
 
    	
Form of U.S. Tax Compliance Certificate
    
	
 
    	
 
    	
(For Non-U.S. Lenders That Are Partnerships For U.S.   Federal Income Tax Purposes)
    
	
Exhibit K
    	
 
    	
Form of Notice of Borrowing or Continuation or   Conversion
    
	
Exhibit L
    	
 
    	
Form of Borrower Designation Agreement
    

 

v

 

CREDIT AGREEMENT

 

CREDIT AGREEMENT, dated as of December 6, 2016, as amended, restated, supplemented or otherwise modified from time to time, among PRA HEALTH SCIENCES, INC., a Delaware corporation (“Holdings”), PHARMACEUTICAL RESEARCH ASSOCIATES, INC., a Virginia corporation and the wholly-owned subsidiary of Holdings (“Borrower”), the lending institutions from time to time parties hereto holding Loans or Commitments (each a “Lender” and, collectively, the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent, Letter of Credit Issuer and Swingline Lender (such terms and each other capitalized term used but not defined in this preamble having the meaning provided in Section 1).

 

WHEREAS, PRA Holdings, Inc. and certain of the Borrower’s Affiliates entered into the Credit Agreement, dated as of September 23, 2013 (as amended to the date hereof, the “Existing Credit Agreement”), among PRA Holdings, Inc., the Borrower’s Affiliates party thereto, the lenders from time to time party thereto and UBS AG, Stamford Branch, as agent;

 

WHEREAS, the Borrower is entering into this Agreement in order to refinance the Existing Credit Agreement; and

 

WHEREAS, the Lenders and Letter of Credit Issuer are willing to make available to the Borrower such term loans and revolving credit and letter of credit facilities upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, the parties hereto hereby agree as follows:

 

Section 1.                                           Definitions

 

1.1                               Defined Terms.  As used herein, the following terms shall have the meanings specified in this Section 1.1 unless the context otherwise requires (it being understood that defined terms in this Agreement shall include in the singular number the plural and in the plural the singular):

 

“ABR” shall mean for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as announced from time to time by the Administrative Agent as its “prime rate” and (c) the LIBOR Rate for an interest period of one (1) month, determined on the second full Business Day prior to such day, plus 1%; provided that, notwithstanding the foregoing, in no event shall the ABR applicable to the Initial Term Loans at any time be less than 1.00% per annum.  Any change in the ABR due to a change in such rate announced by the Administrative Agent or in the Federal Funds Effective Rate shall take effect at the opening of business on the day specified in the announcement of such change.

 

“ABR Loan” shall mean each Loan (other than Loans made in Euros or an Alternative Currency) bearing interest based on the ABR.

 

“Acquired EBITDA” shall mean, with respect to any Acquired Entity or Business or any Converted Restricted Subsidiary (any of the foregoing, a “Pro Forma Entity”) for any period, the amount for such period of Consolidated EBITDA of such Pro Forma Entity (determined using such definitions as if references to Holdings and its Restricted Subsidiaries therein were to such Pro Forma Entity and its Restricted Subsidiaries), all as determined on a consolidated basis for such Pro Forma Entity in accordance with GAAP.

 

 

“Acquired Entity or Business” shall have the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Acquired Indebtedness” shall mean, with respect to any specified Person, (1) Indebtedness of any other Person existing at the time such other Person is merged, consolidated, or amalgamated with or into or became a Restricted Subsidiary of such specified Person, including Indebtedness incurred in connection with, or in contemplation of, such other Person merging, consolidating, or amalgamating with or into or becoming a Restricted Subsidiary of such specified Person, and (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

 

“Additional Borrower” shall mean any Person, organized under the laws of any jurisdiction that is acceptable to the Administrative Agent and the Revolving Credit Lenders providing Revolving Credit Commitments to such Additional Borrower, who may become a party hereto as a “Borrower” hereunder, subject to compliance with the terms of Section 9.11(b) hereof, upon the execution and delivery of a customary joinder agreement reasonably satisfactory to the Administrative Agent.

 

“Additional Revolving Credit Commitment” shall have the meaning provided in Section 2.14(a).

 

“Additional Revolving Credit Loan” shall have the meaning provided in Section 2.14(b).

 

“Additional Revolving Loan Lender” shall have the meaning provided in Section 2.14(b).

 

“Adjusted LIBOR Rate” shall mean, with respect to any LIBOR Rate Borrowing for any Interest Period, an interest rate per annum equal to the product of (i) the LIBOR Rate in effect for such Interest Period and (ii) Statutory Reserves.

 

“Adjusted Total Initial Term Loan Commitment” shall mean at any time the Total Initial Term Loan Commitment less the Initial Term Loan Commitments of all Defaulting Lenders.

 

“Adjusted Total Revolving Credit Commitment” shall mean at any time the Total Revolving Credit Commitment less the aggregate Revolving Credit Commitments of all Defaulting Lenders.

 

“Adjusted Total Term Loan Commitment” shall mean at any time the Total Term Loan Commitment less the Term Loan Commitments of all Defaulting Lenders.

 

“Administrative Agent” shall mean Wells Fargo Bank, National Association, as the administrative agent for the Lenders under this Agreement and the other Credit Documents, or any successor administrative agent pursuant to Section 12.9.

 

“Administrative Agent’s Office” shall mean the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 13.2 or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

 

“Administrative Questionnaire” shall have the meaning provided in Section 13.6(b)(ii)(D).

 

“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with such Person.  A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or

 

2

 

cause the direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Affiliated Institutional Lender” shall mean (i) any Affiliate of the Sponsor that is either a bona fide debt fund or such Affiliate extends credit or buys loans in the ordinary course of business, (ii) KKR Corporate Lending LLC and KKR Capital Markets LLC and (iii) MCS Corporate Lending LLC and MCS Capital Markets LLC.

 

“Affiliated Lender” shall mean a Lender that is the Sponsor or any Affiliate thereof (other than Holdings, any Subsidiary of Holdings, the Borrower or any Affiliated Institutional Lender).

 

“Agent Party” shall have the meaning provided in Section 13.17(b).

 

“Agents” shall mean the Administrative Agent, the Collateral Agent, each Managing Agent, each Syndication Agent, the Letter of Credit Issuer, each Joint Lead Arranger and Bookrunner and the Co-Documentation Agents.

 

“Aggregate Revolving Credit Outstandings” shall have the meaning provided in Section 5.2(b).

 

“Agreement” shall mean this Credit Agreement, as the same may be amended, supplemented, amended and restated or otherwise modified from time to time.

 

“Agreement Currency” shall have the meaning provided in Section 13.19.

 

“Alternative Currency” shall mean Pounds Sterling (and in the case of Letters of Credit, Australian dollars and New Zealand dollars) and any other currency reasonably acceptable to the Administrative Agent and each applicable Revolving Credit Lender and applicable Letter of Credit Issuer that is freely convertible into Dollars and readily available in the London interbank market.

 

“Applicable Margin” shall mean a percentage per annum equal to:

 

(i)                                     until delivery of financial statements and a related Compliance Certificate for the first full fiscal quarter commencing on or after the Closing Date pursuant to Section 9.1, (x) for LIBOR Loans that are Initial Term Loans, 1.75% and (y) for ABR Loans that are Initial Term Loans, 0.75%;

 

(ii)                                  until delivery of financial statements and a related Compliance Certificate for the first full fiscal quarter commencing on or after the Closing Date pursuant to Section 9.1, (x) for LIBOR Loans that are Initial Revolving Credit Loans, 1.75%, (y) for ABR Loans that are Initial Revolving Credit Loans, 0.75% and (z) for Letter of Credit Fees, 1.75% per annum;

 

in each case, thereafter, in connection with Initial Term Loans, Initial Revolving Credit Loans and Letter of Credit Fees, the percentages per annum set forth in the table below, based upon the Consolidated Total Debt to Consolidated EBITDA Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 9.1(d):

 

3

 

	
Pricing
   Level
    	
 
    	
Consolidated Total
   Debt to Consolidated
   EBITDA Ratio
    	
 
    	
Letter of
   Credit Fees
    	
 
    	
ABR Rate Initial
   Revolving Credit
   Loans and Initial
   Term Loans
    	
 
    	
Adjusted LIBOR Rate
   Initial Revolving Credit
   Loans and Initial Term
   Loans
    	
 
    
	
I
    	
 
    	
>   3.75x
    	
 
    	
2.25
    	
%
    	
1.25
    	
%
    	
2.25
    	
%
    
	
II
    	
 
    	
< 3.75x but >   3.00x
    	
 
    	
2.00
    	
%
    	
1.00
    	
%
    	
2.00
    	
%
    
	
III
    	
 
    	
< 3.00x but >   2.25x
    	
 
    	
1.75
    	
%
    	
0.75
    	
%
    	
1.75
    	
%
    
	
IV
    	
 
    	
< 2.25x but >   1.50x
    	
 
    	
1.50
    	
%
    	
0.50
    	
%
    	
1.50
    	
%
    
	
V
    	
 
    	
< 1.50x
    	
 
    	
1.25
    	
%
    	
0.25
    	
%
    	
1.25
    	
%
    

 

Any increase or decrease in the Applicable Margin for Initial Revolving Credit Loans or Initial Term Loans resulting from a change in the Consolidated Total Debt to Consolidated EBITDA Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 9.1(d).

 

Notwithstanding the foregoing, (a) the Applicable Margin in respect of any Class of Extended Revolving Credit Commitments or any Extended Term Loans or Revolving Loans made pursuant to any Extended Revolving Credit Commitments shall be the applicable percentages per annum set forth in the relevant Extension Amendment, (b) the Applicable Margin in respect of any Class of Additional Revolving Credit Commitments, any Class of Incremental Loans or any Class of Loans in respect of Additional Revolving Credit Commitments shall be the applicable percentages per annum set forth in the relevant Joinder Agreement, (c) the Applicable Margin in respect of any Class of Replacement Term Loans shall be the applicable percentages per annum set forth in the relevant agreement, and (d) in the case of the Term Loans and any Class of Incremental Loans, the Applicable Margin shall be increased as, and to the extent, necessary to comply with the provisions of Section 2.14.

 

Notwithstanding anything to the contrary contained above in this definition or elsewhere in this Agreement, if it is subsequently determined that the Consolidated Total Debt to Consolidated EBITDA Ratio set forth in any Compliance Certificate delivered to the Administrative Agent is inaccurate for any reason and the result thereof is that the Lenders received interest or fees for any period based on an Applicable Margin that is less than that which would have been applicable had the Consolidated Total Debt to Consolidated EBITDA Ratio been accurately determined, then, for all purposes of this Agreement, the “Applicable Margin” for any day occurring within the period covered by such Compliance Certificate shall retroactively be deemed to be the relevant percentage as based upon the accurately determined Consolidated Total Debt to Consolidated EBITDA Ratio for such period, and any shortfall in the interest or fees theretofore paid by the Borrower for the relevant period as a result of the miscalculation of the Consolidated Total Debt to Consolidated EBITDA Ratio shall be deemed to be (and shall be) due and payable, at the time the interest or fees for such period were required to be paid; provided that, notwithstanding the foregoing, so long as an Event of Default described in Section 11.1(e) has not occurred with respect to the Borrower, such shortfall shall be due and payable within five Business Days following the written demand thereof by the Administrative Agent and no Default shall be deemed to have occurred as a result of such non-payment until the expiration of such five Business Day period.  In addition, at the option of the Required Lenders, at any time during which an Event of Default shall have occurred and be continuing or the Borrower shall have failed to deliver the Section 9.1 Financials by the date required under Section 9.1, then the Consolidated Total Debt to Consolidated EBITDA Ratio shall be deemed to be in Pricing Level I for the purposes of determining the Applicable Margin (but only for so long as such failure or Event of Default continues, after which the Pricing Level shall be otherwise as determined as set forth above).

 

“Approved Fund” shall mean any Fund 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, advises or manages a Lender.

 

4

 

“Asset Sale” shall mean:

 

(1)                                 the sale, conveyance, transfer or other disposition, whether in a single transaction or a series of related transactions, of property or assets (including by way of a Sale Leaseback) of Holdings or any Restricted Subsidiary (each, a “Disposition”) or

 

(2)                                 the issuance or sale of Equity Interests of any Restricted Subsidiary (other than preferred stock of Restricted Subsidiaries subject to and issued in compliance with Section 10.1), whether in a single transaction or a series of related transactions, in each case, other than:

 

(a)                                 any Disposition of Cash Equivalents or Investment Grade Securities or obsolete, worn out or surplus property or property (including leasehold property interests) that is no longer economically practical in its business or commercially desirable to maintain or no longer used or useful equipment in the ordinary course of business or any disposition of inventory, immaterial assets or goods (or other assets) in the ordinary course of business;

 

(b)                                 the Disposition of all or substantially all of the assets of Holdings, the Borrower or a Subsidiary in a manner permitted pursuant to Section 10.3;

 

(c)                                  the incurrence of Liens that are permitted to be incurred pursuant to Section 10.2 or the making of any Restricted Payment or Permitted Investment that is permitted to be made, and is made, pursuant to Section 10.5;

 

(d)                                 any Disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary in any transaction or series of transactions with an aggregate Fair Market Value of less than the greater of (a) $30,000,000 and (b) 10% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Disposition;

 

(e)                                  any Disposition of property or assets or issuance of securities by (1) a Restricted Subsidiary to any Credit Party or (2) by a Credit Party to a Restricted Subsidiary that is not a Credit Party in an aggregate amount, together with all amounts constituting Permitted Investments pursuant to clause (b) of the definition thereof and the aggregate outstanding principal amount of all Indebtedness incurred pursuant to Section 10.1(r), not to exceed the sum of (a) greater of $55,000,000 and 20% of Consolidated EBITDA for the most recently ended Test Period and (b) unlimited additional amounts, provided that, after giving effect to the incurrence of such amount (1) the Fixed Charge Coverage Ratio is equal to or less than 3.00:1.00 and (2) the Consolidated Total Debt to Consolidated EBITDA Ratio is no greater than 3.75:1.00;

 

(f)                                   to the extent allowable under Section 1031 of the Code, or any comparable or successor provision, any exchange of like property (excluding any boot thereon) for use in a Similar Business;

 

(g)                                  any issuance, sale or pledge of Equity Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary;

 

(h)                                 foreclosures, condemnation, casualty or any similar action on assets;

 

(i)                                     sales of accounts receivable, or participations therein, and related assets in connection with any Receivables Facility;

 

5

 

(j)                                    any financing transaction with respect to property built or acquired by Holdings or any Restricted Subsidiary after the Closing Date, including Sale Leasebacks and asset securitizations permitted by this Agreement;

 

(k)                                 (1) any surrender or waiver of contractual rights or the settlement, release or surrender of contractual rights or other litigation claims or (2) the settlement, discount, write off, forgiveness or cancellation of any Indebtedness owing by any present or former consultants, directors, officers or employees of Holdings (or any direct or indirect parent company of Holdings) or any Subsidiary or any of their successors or assigns;

 

(l)                                     the Disposition or discount of inventory, accounts receivable, or notes receivable in the ordinary course of business or the conversion of accounts receivable to notes receivable;

 

(m)                             the licensing, cross licensing or sub licensing of Intellectual Property or other general intangibles (whether pursuant to franchise agreements or otherwise) in the ordinary course of business;

 

(n)                                 the unwinding of any Hedging Obligations or obligations in respect of Cash Management Services;

 

(o)                                 sales, transfers and other Dispositions of Investments in joint ventures to the extent required by, or made pursuant to, customary buy/sell arrangements between the joint venture parties set forth in joint venture arrangements and similar binding arrangements;

 

(p)                                 the lapse or abandonment of Intellectual Property rights in the ordinary course of business, which in the reasonable good faith determination of the Borrower are not material to the conduct of the business of Holdings and its Restricted Subsidiaries taken as a whole;

 

(q)                                 the issuance of directors’ qualifying shares and shares issued to foreign nationals as required by applicable law;

 

(r)                                    Dispositions of property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property that is promptly purchased or (ii) the proceeds of such Asset Sale are promptly applied to the purchase price of such replacement property (which replacement property is actually promptly purchased);

 

(s)                                   leases, assignments, subleases, licenses or sublicenses, in each case in the ordinary course of business and which do not materially interfere with the business of Holdings, the Borrower and its Restricted Subsidiaries, taken as a whole; and

 

(t)                                    Dispositions of non-core assets acquired in connection with any Permitted Acquisition or Investment permitted hereunder.

 

“Asset Sale Prepayment Event” shall mean any Asset Sale subject to the Reinvestment Period allowed in Section 10.4; provided, that with respect to any Asset Sale Prepayment Event, the Borrower shall not be obligated to make any prepayment otherwise required by Section 5.2 unless and until the aggregate amount of Net Cash Proceeds from all such Asset Sale Prepayment Events, after giving effect to the reinvestment rights set forth herein, exceeds $5,000,000 (the “Prepayment Trigger”) in any fiscal year of Holdings, but then from all such Net Cash Proceeds (excluding amounts below the Prepayment Trigger).

 

6

 

“Assignment and Acceptance” shall mean (a) an assignment and acceptance substantially in the form of Exhibit G, or such other form as may be approved by the Administrative Agent and (b) in the case of any assignment of Term Loans in connection with a Permitted Debt Exchange conducted in accordance with Section 2.15, such form of assignment (if any) as may be agreed by the Administrative Agent and the Borrower in accordance with Section 2.15(a).

 

“Assignment Taxes” shall have the meaning provided in the definition of the term “Other Taxes”.

 

“Auction Agent” shall mean (i) the Administrative Agent or (ii) any other financial institution or advisor employed by Holdings, the Borrower or any Subsidiary (whether or not an Affiliate of the Administrative Agent) to act as an arranger in connection with any Permitted Debt Exchange pursuant to Section 2.15 or Dutch auction pursuant to Section 13.6(h); provided that none of Holdings or the Borrower shall designate the Administrative Agent as the Auction Agent without the written consent of the Administrative Agent (it being understood that the Administrative Agent shall be under no obligation to agree to act as the Auction Agent); provided, further, that neither Holdings nor any of its Subsidiaries may act as the Auction Agent.

 

“Authorized Officer” shall mean, with respect to any Person, the Chief Executive Officer, President, the Chief Financial Officer, the Treasurer, the Controller, the Vice President-Finance, a Director, a Manager or any other senior officer of such Person designated as such in writing to the Administrative Agent by such Person.

 

“Auto-Extension Letter of Credit” shall have the meaning provided in Section 3.2(d).

 

“Available Amount” shall have the meaning provided in Section 10.5.

 

“Available Commitment” shall mean an amount equal to the excess, if any, of (a) the amount of the Total Revolving Credit Commitment over (b) the sum of the aggregate Dollar Equivalent principal amount of, without duplication, (i) all Revolving Loans (but not Swingline Loans) then outstanding and (ii) the aggregate Letters of Credit Outstanding at such time.

 

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

 

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

 

“Bankruptcy Code” shall have the meaning provided in Section 11.1(e).

 

“Benefited Lender” shall have the meaning provided in Section 13.8(a).

 

“Board” shall mean the Board of Governors of the Federal Reserve System of the United States (or any successor).

 

“Borrower” shall have the meaning provided in the preamble to this Agreement.

 

7

 

“Borrower Designation Agreement” means, with respect to any proposed Additional Borrower, an agreement in the form of Exhibit L hereto signed by such Additional Borrower and the Borrower.

 

“Borrowing” shall mean and include (a) the incurrence of Swingline Loans from the Swingline Lender on a given date, (b) the incurrence of one Type of Term Loan on a given date (or resulting from conversions on a given date) having, in the case of LIBOR Term Loans, the same Interest Period (provided that ABR Loans incurred pursuant to Section 2.10(b) shall be considered part of any related Borrowing of LIBOR Term Loans) and (c) the incurrence of one Type of Revolving Loan of the same Class and currency on a given date (or resulting from conversions on a given date) having, in the case of LIBOR Loans that are Revolving Loans, the same Interest Period (provided that ABR Loans incurred pursuant to Section 2.10(b) shall be considered part of any related Borrowing of LIBOR Loans).

 

“Business Day” shall mean any day excluding Saturday, Sunday and any other day on which banking institutions in New York City are authorized by law or other governmental actions to close, and,

 

(a)                                 if such day relates to any interest rate settings as to a LIBOR Loan denominated in Dollars or any Alternative Currency (other than Pounds Sterling), any fundings, disbursements, settlements and payments in Dollars or any Alternative Currency (other than Pounds Sterling) in respect of any such LIBOR Loan, or any other dealings in Dollars or any Alternative Currency (other than Pounds Sterling) to be carried out pursuant to this Agreement in respect of any such LIBOR Loan, such day shall be a day on which dealings in deposits in Dollars or such Alternative Currency are conducted by and between banks in the applicable London interbank market;

 

(b)                                 if such day relates to any interest rate settings as to a LIBOR Loan denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of any such LIBOR Loan, or any other dealings in Euro to be carried out pursuant to this Agreement in respect of any such LIBOR Loan, such day shall be a TARGET Day;

 

(c)                                  if such day relates to any interest rate settings as to a LIBOR Loan denominated in Pounds Sterling, such day shall be a day on which dealings in deposits in Pounds Sterling, as applicable, are conducted by and between banks in the London interbank market; and

 

(d)                                 if such day relates to any fundings, disbursements, settlements and payments in Pounds Sterling in respect of a LIBOR Loan denominated in Pounds Sterling, or any other dealings in Pounds Sterling to be carried out pursuant to this Agreement in respect of any such LIBOR Loan (other than any interest rate settings), such day shall be a day on which banks are open for foreign exchange business in London.

 

“Capital Lease” shall mean, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is, or is required to be, accounted for as a capital lease on the balance sheet of that Person, subject to Section 1.12(f).

 

“Capital Stock” shall mean (1) in the case of a corporation, corporate stock, (2) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, (3) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (4) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person (it being understood and agreed, for the avoidance of doubt, that “cash-settled phantom appreciation programs” in connection with employee benefits that do not require a dividend or distribution shall not constitute Capital Stock).

 

8

 

“Capitalized Lease Obligation” shall mean, at the time any determination thereof is to be made, the amount of the liability in respect of a Capital Lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP, subject to Section 1.12(f).

 

“Capitalized Software Expenditures” shall mean, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities) by Holdings and the Restricted Subsidiaries during such period in respect of purchased software or internally developed software and software enhancements that, in conformity with GAAP, are or are required to be reflected as capitalized costs on the consolidated balance sheet of Holdings and the Restricted Subsidiaries.

 

“Cash Collateral” shall mean cash or deposit account balances or, if the Administrative Agent and the applicable Letter of Credit Issuer shall agree in their sole discretion, other credit support and shall include the proceeds of such cash, deposit account balances and other credit support.

 

“Cash Collateralize” shall mean to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more of the Letter of Credit Issuers or the Lenders (including the Swingline Lender), as collateral for L/C Obligations or obligations of the Lenders to fund participations in respect of L/C Obligations, Cash Collateral in the currency in which the L/C Obligations are denominated in an amount equal to the Minimum Collateral Amount pursuant to customary documentation.

 

“Cash Equivalents” shall mean:

 

(1)                                 United States Dollars,

 

(2)                                 Canadian Dollars

 

(3)                                 (a) Euro, Pounds Sterling, Yen, Swiss Francs or any national currency of any Participating Member State in the European Union or (b) local currencies held from time to time in the ordinary course of business,

 

(4)                                 securities issued or directly and fully and unconditionally guaranteed or insured by the United States government or any country that is a member state of the European Union or any agency or instrumentality thereof the securities of which are unconditionally guaranteed as a full faith and credit obligation of such government with maturities of 24 months or less from the date of acquisition,

 

(5)                                 certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank having capital and surplus of not less than $250,000,000 in the case of U.S. banks and $100,000,000 (or the Dollar Equivalent as of the date of determination) in the case of foreign banks,

 

(6)                                 repurchase obligations for underlying securities of the types described in clauses (4), (5) and (10) entered into with any financial institution meeting the qualifications specified in clause (5) above,

 

(7)                                 commercial paper rated at least P-2 by Moody’s or at least A-2 by S&P and in each case maturing within 24 months after the date of creation thereof,

 

9

 

(8)                                 marketable short-term money market and similar securities having a rating of at least P-2 or A-2 from either Moody’s or S&P, respectively (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized ratings agency) and in each case maturing within 24 months after the date of creation or acquisition thereof,

 

(9)                                 readily marketable direct obligations issued by any state, commonwealth or territory of the United States of America or any political subdivision or taxing authority thereof having one of the two highest rating categories obtainable from either Moody’s or S&P with maturities of 24 months or less from the date of acquisition,

 

(10)                          Indebtedness or preferred stock issued by Persons with a rating of “A” or higher from S&P or “A2” or higher from Moody’s with maturities of 24 months or less from the date of acquisition,

 

(11)                          solely with respect to any Foreign Subsidiary:  (a) obligations of the national government of the country in which such Foreign Subsidiary maintains its chief executive office and principal place of business provided such country is a member of the Organization for Economic Cooperation and Development, in each case maturing within one year after the date of investment therein, (b) certificates of deposit of, bankers acceptances of, or time deposits with, any commercial bank which is organized and existing under the laws of the country in which such Foreign Subsidiary maintains its chief executive office and principal place of business provided such country is a member of the Organization for Economic Cooperation and Development, and whose short-term commercial paper rating from S&P is at least “A-2” or the equivalent thereof or from Moody’s is at least “P-2” or the equivalent thereof (any such bank being an “Approved Foreign Bank”), and in each case with maturities of not more than 24 months from the date of acquisition, and (c) the equivalent of demand deposit accounts which are maintained with an Approved Foreign Bank, in each case, customarily used by corporations for cash management purposes in any jurisdiction outside the United States to the extent reasonably required in connection with any business conducted by such Foreign Subsidiary organized in such jurisdiction,

 

(12)                          in the case of investments by any Foreign Subsidiary or investments made in a country outside the United States of America, Cash Equivalents shall also include investments of the type and maturity described in clauses (1) through (10) above of foreign obligors, which investments have ratings, described in such clauses or equivalent ratings from comparable foreign rating agencies, and

 

(13)                          investment funds investing 90% of their assets in securities of the types described in clauses (1) through (10) above.

 

Notwithstanding the foregoing, Cash Equivalents shall include amounts denominated in currencies other than those set forth in clauses (1) through (3) above; provided that such amounts are converted into any currency listed in clauses (1) through (3) as promptly as practicable and in any event within ten Business Days following the receipt of such amounts.

 

For the avoidance of doubt, any items identified as Cash Equivalents under this definition will be deemed to be Cash Equivalents for all purposes under the Credit Documents regardless of the treatment of such items under GAAP.

 

10

 

“Cash Management Agreement” shall mean any agreement or arrangement to provide Cash Management Services.

 

“Cash Management Bank” shall mean (a) any Person that, at the time it enters into a Cash Management Agreement, is an Agent or a Lender or an Affiliate of an Agent or a Lender or (b) with respect to any Cash Management Agreement entered into prior to the Closing Date, any person that is a Lender or an Affiliate of a Lender on the Closing Date.

 

“Cash Management Services” shall mean any one or more of the following types of services or facilities:  (a) commercial credit cards, merchant card services, purchase or debit cards, including non-card e-payables services or electronic funds transfer services, (b) treasury management services (including controlled disbursement, overdraft automatic clearing house fund transfer services, return items and interstate depository network services), (c) any other demand deposit or operating account relationships or other cash management services and (d)  other services related, ancillary or complementary to the foregoing.

 

“Casualty Event” shall mean, with respect to any property of any Person, any loss of or damage to, or any condemnation or other taking by a Governmental Authority of, such property for which such Person or any of its Restricted Subsidiaries receives insurance proceeds or proceeds of a condemnation award in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace or repair such equipment, fixed assets or real property; provided, that with respect to any Casualty Event, the Borrower shall not be obligated to make any prepayment otherwise required by Section 5.2 unless and until the aggregate amount of Net Cash Proceeds from all such Casualty Events, after giving effect to the reinvestment rights set forth herein, exceeds $5,000,000 (the “Casualty Prepayment Trigger”) in any fiscal year of Holdings, but then from all such Net Cash Proceeds (excluding amounts below the Casualty Prepayment Trigger).

 

“CFC” shall mean a “controlled foreign corporation” within the meaning of Section 957 of the Code.

 

“Change in Law” shall mean (a) the adoption of any law, treaty, order, policy, rule or regulation after the Closing Date, (b) any change in any law, treaty, order, policy, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Closing Date or (c) compliance by any Lender or Letter of Credit Issuer or L/C Participant with any guideline, request, directive or order issued or made after the Closing Date by any central bank or other governmental or quasi-governmental authority (whether or not having the force of law).  For purposes of this definition, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith 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 United States or foreign regulatory authorities pursuant to Basel III, shall in each case described in clauses (x) and (y) above be deemed to be a Change in Law and have gone into effect after the date hereof, regardless of the date enacted, adopted, issued or implemented.

 

“Change of Control” shall mean and be deemed to have occurred if (a) any Person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act), other than the Permitted Holders, shall at any time have acquired direct or indirect beneficial ownership of a percentage of the voting power of the outstanding Voting Stock of Holdings that exceeds 35% thereof, unless, in the case of clause (a) above, the Permitted Holders have, at such time, the right or the ability by voting power, contract or otherwise to elect or designate for election at least a majority of the board of directors

 

11

 

of Holdings; or (b) Holdings shall cease to beneficially own and control, directly or indirectly, 100% of the issued and outstanding Equity Interests of the Borrower; or (c) at any time, a Change of Control (as defined in the Senior Notes Indenture) shall have occurred.  For the purpose of clause (a), at any time when a majority of the outstanding Voting Stock of Holdings is directly or indirectly owned by a Parent Entity or, if applicable, a Parent Entity acts as the manager, managing member or general partner of Holdings, references in this definition to “Holdings” shall be deemed to refer to the ultimate Parent Entity that directly or indirectly owns such Voting Stock or acts as (or, if applicable, is a Parent Entity that directly or indirectly owns a majority of the outstanding Voting Stock of) such manager, managing member or general partner.  For purposes of this definition, (i) “beneficial ownership” shall be as defined in Rules 13(d)-3 and 13(d)-5 under the Securities Exchange Act and (ii) the phrase Person or “group” is within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act, but excluding any employee benefit plan of such Person or “group” and its subsidiaries and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan.

 

“Claims” shall have the meaning provided in the definition of the term “Environmental Claims”.

 

“Class” (a) when used in reference to any Loan or Borrowing, shall refer to whether such Loan, or the Loans comprising such Borrowing, are Initial Revolving Credit Loans, Additional Revolving Credit Loans, New Revolving Credit Loans, Initial Term Loans, New Term Loans (of the same Series), Extended Term Loans (of the same Extension Series), Replacement Term Loans (of the same Series), Extended Revolving Credit Loans (of the same Extension Series) or Swingline Loans and (b) when used in reference to any Commitment, refers to whether such Commitment is an Initial Revolving Credit Commitment, an Additional Revolving Credit Commitment, a New Revolving Credit Commitment, an Extended Revolving Credit Commitment (of the same Extension Series), an Initial Term Loan Commitment or a New Term Loan Commitment.

 

“Closing Date” shall mean December 6, 2016.

 

“Closing Date Refinancing” means the repayment of the Indebtedness under the Existing Credit Agreement and all interest, fees and other amounts in respect thereof and termination and/or release of any security interests and guarantees in connection therewith.

 

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

 

“Co-Documentation Agents” shall mean The Bank of Tokyo-Mitsubishi UFJ, Ltd.. and TD Bank, N.A.

 

“Collateral” shall mean all property pledged or purported to be pledged pursuant to the Security Documents, excluding in all events Excluded Property.

 

“Collateral Agent” shall mean Wells Fargo Bank, National Association, as collateral agent under the Credit Documents, or any successor collateral agent pursuant to Section 12.9, and any Affiliate or designee of Wells Fargo Bank, National Association that may act as Collateral Agent under any Credit Document.

 

“Commitment Fee” shall have the meaning provided in Section 4.1(a).

 

“Commitment Fee Rate” shall mean, with respect to the Available Commitment on any day, a rate per annum set forth below opposite the Status in effect on such day:

 

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Status
    	
 
    	
Commitment Fee Rate
    	
 
    
	
Level I Status
    	
 
    	
0.40
    	
%
    
	
Level II Status
    	
 
    	
0.35
    	
%
    
	
Level III Status
    	
 
    	
0.30
    	
%
    
	
Level IV Status
    	
 
    	
0.25
    	
%
    
	
Level V Status
    	
 
    	
0.20
    	
%
    

 

Notwithstanding the foregoing, (i) the term “Commitment Fee Rate” shall mean 0.30% during the period from and including the Closing Date to but excluding the Trigger Date, (ii) the Commitment Fee Rate with respect to any Extended Revolving Commitment shall be as set forth in the applicable Extension Amendment and (iii) the Commitment Fee Rate with respect to any Additional Revolving Credit Commitment shall be as set forth in the applicable Joinder Agreement.

 

“Commitments” shall mean, with respect to each Lender (to the extent applicable), such Lender’s Initial Term Loan Commitment, New Term Loan Commitment, Revolving Credit Commitment, New Revolving Credit Commitment, Extended Revolving Credit Commitment, Additional Revolving Credit Commitment or Incremental Revolving Credit Commitment.

 

“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” shall have the meaning provided in Section 13.17.

 

“Compliance Certificate” shall mean a certificate of a financial or accounting Authorized Officer of the Borrower delivered pursuant to Section 9.1(d) for the applicable Test Period.

 

“Confidential Information” shall have the meaning provided in Section 13.16.

 

“Consolidated Depreciation and Amortization Expense” shall mean with respect to any Person for any period, the total amount of depreciation and amortization expense, including the amortization of deferred financing fees or costs, debt issuance costs, commissions, fees and expenses, capitalized expenditures (including Capitalized Software Expenditures), customer acquisition costs, the amortization of original issue discount resulting from the issuance of Indebtedness at less than par and incentive payments, conversion costs and contract acquisition costs of such Person and its Restricted Subsidiaries for such period on a consolidated basis and otherwise determined in accordance with GAAP.

 

“Consolidated EBITDA” shall mean, with respect to any Person and its Restricted Subsidiaries on a consolidated basis for any period, the Consolidated Net Income of such Person and such Restricted Subsidiaries for such period:

 

(1)                               increased (without duplication) by:

 

(a)                                 provision for taxes based on income or profits or capital, including, without limitation, U.S. federal, state, non-U.S., franchise, excise, value added and

 

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similar taxes and foreign withholding taxes of such Person paid or accrued during such period, including any penalties and interest related to such taxes or arising from any tax examinations, deducted (and not added back) in computing Consolidated Net Income, plus

 

(b)                                 Fixed Charges of such Person for such period (including (x) net losses on Hedging Obligations or other derivative instruments entered into for the purpose of hedging interest rate risk and (y) costs of surety bonds in connection with financing activities, in each case, to the extent included in Fixed Charges), together with items excluded from the definition of “Consolidated Interest Expense” and any non-cash interest expense, to the extent the same were deducted (and not added back) in calculating such Consolidated Net Income, plus

 

(c)                                  Consolidated Depreciation and Amortization Expense of such Person for such period to the extent the same were deducted (and not added back) in computing Consolidated Net Income, plus

 

(d)                                 any expenses, fees, charges or losses (other than depreciation or amortization expense) related to any Equity Offering, Permitted Investment, Restricted Payment, acquisition, disposition, recapitalization or the incurrence of Indebtedness permitted to be incurred by this Agreement (including a refinancing thereof) (whether or not successful and including any such transaction consummated prior to the Closing Date), including (i) such fees, expenses or charges related to the incurrence of the Loans hereunder and all Transaction Expenses, (ii) such fees, expenses or charges related to the offering of the Credit Documents and any other credit facilities and (iii) any amendment or other modification of the Senior Notes, the Loans hereunder or other Indebtedness and, in each case, deducted (and not added back) in computing Consolidated Net Income, plus

 

(e)                                  any other non-cash charges, including any write offs, write downs, expenses, losses, any effects of adjustments resulting from the application of purchase accounting, purchase price accounting (including any step-up in inventory and loss of profit on the acquired inventory) or other items to the extent the same were deducted (and not added back) in computing Consolidated Net Income (provided that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be deducted from Consolidated EBITDA to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), plus

 

(f)                                   the amount of any minority interest expense consisting of Subsidiary income attributable to minority equity interests of third parties in any non-Wholly Owned Subsidiary deducted (and not added back) in such period in calculating Consolidated Net Income, plus

 

(g)                                  the amount of “run-rate” cost savings, operating expense reductions and other synergies that are projected by Holdings in good faith to be realized within 12 months of the determination to take such action, net of the amount of actual benefits realized prior to or during such period from such actions (which cost savings, operating expense reductions and synergies shall be calculated on a Pro Forma Basis as though such cost savings, operating expense reductions or synergies had been realized on the first day of such period); provided that (1) the aggregate amount added back pursuant to

 

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this clause (g) shall not cumulatively exceed 15% of Consolidated EBITDA for any period (with such calculation being made before giving effect to any increase pursuant to this clause (g) and, for the avoidance of doubt, after giving effect to the final paragraph of this definition) and (2) a Responsible Officer of the Borrower shall have certified to the Administrative Agent that such cost savings, operating expense reductions or synergies are reasonably identifiable and factually supportable, plus

 

(h)                                 the amount of loss or discount on sales of receivables and related assets to a Receivables Subsidiary in connection with a Receivables Facility, plus

 

(i)                                     any costs or expense incurred by Holdings or a Restricted Subsidiary pursuant to any management equity plan or stock option or phantom equity plan or any other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, to the extent that such cost or expenses are funded with cash proceeds contributed to the capital of Holdings or net cash proceeds of an issuance of Equity Interests of Holdings (other than Disqualified Stock) solely to the extent that such net cash proceeds are excluded from the calculation set forth in clause (3) of Section 10.5(a) and have not been relied on for purposes of any incurrence of Indebtedness pursuant to clause (i) of Section 10.1(l), plus

 

(j)                                    the amount of expenses relating to payments made to option, phantom equity or profits interest holders of Holdings or any of its direct or indirect Subsidiaries or parent companies in connection with, or as a result of, any distribution being made to equity holders of such Person or its direct or indirect parent companies, which payments are being made to compensate such option, phantom equity or profits interest holders as though they were equity holders at the time of, and entitled to share in, such distribution, in each case to the extent permitted under this Agreement and expenses relating to distributions made to equity holders of such Person or its direct or indirect parent companies resulting from the application of Financial Accounting Standards Codification Topic 718— Compensation — Stock Compensation (formerly Financial Accounting Standards Board Statement No. 123 (Revised 2004)), plus

 

(k)                                 to the extent deducted (and not added back) in calculating the Consolidated Net Income, (i) any expenses and charges that are reimbursed by indemnification or other similar provisions in connection with any investment or any sale, conveyance, transfer or other Asset Sale of assets permitted hereunder and (ii) to the extent covered by insurance and actually reimbursed, or, so long as the Borrower has made a determination that there exists reasonable evidence that such amount will in fact be reimbursed by the insurer and only to the extent that such amount is (A) not denied by the applicable carrier in writing within 180 days and (B) in fact reimbursed within 365 days of the date of the determination by the Borrower that there exists such evidence (with a deduction for any amount so added back to the extent not so reimbursed within such 365 days), expenses with respect to liability or casualty events or business interruption, plus

 

(l)                                     any net pension or other post-employment benefit costs representing amortization of unrecognized prior service costs, actuarial losses, including amortization of such amounts arising in prior periods, amortization of the unrecognized net obligation (and loss or cost) existing at the date of initial application of FASB Accounting Standards Codification Topic 715—Compensation—Retirement Benefits and any other items of a

 

15

 

similar nature to the extent deducted (and not added back) in calculating the Consolidated Net Income,

 

(2)                               decreased by (without duplication) (y) net gains on Hedging Obligations or other derivative instruments entered into for the purpose of hedging interest rate risks and (z)  non-cash gains increasing Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, excluding any non-cash gains which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges that reduced Consolidated EBITDA in any prior period; provided that, to the extent non-cash gains are deducted pursuant to this clause (2) for any previous period and not otherwise added back to Consolidated EBITDA, Consolidated EBITDA shall be increased by the amount of any cash receipts (or any netting arrangements resulting in reduced cash expenses) in respect of such non-cash gains received in subsequent periods to the extent not already included therein, and

 

(3)                               increased or decreased (as applicable) by (without duplication):

 

(a)                                 any net gain or loss resulting in such period from currency gains or losses related to Indebtedness, intercompany balances and other balance sheet items, plus or minus, as the case may be, and

 

(b)                              any net gain or loss resulting in such period from Hedging Obligations, and the application of Financial Accounting Standards Codification Topic 815—Derivatives and Hedging (ASC 815) (formerly Financing Accounting Standards Board Statement No. 133), and its related pronouncements and interpretations, or the equivalent accounting standard under GAAP or an alternative basis of accounting applied in lieu of GAAP.

 

For the avoidance of doubt:

 

(i)                                to the extent included in Consolidated Net Income, there shall be excluded in determining Consolidated EBITDA for any period any adjustments resulting from the application of ASC 815 and its related pronouncements and interpretations, or the equivalent accounting standard under GAAP or an alternative basis of accounting applied in lieu of GAAP,

 

(ii)                                there shall be included in determining Consolidated EBITDA for any period, without duplication, (A) the Acquired EBITDA of any Person or business, or attributable to any property or asset acquired by Holdings or any Restricted Subsidiary during such period (but not the Acquired EBITDA of any related Person or business or any Acquired EBITDA attributable to any assets or property, in each case to the extent not so acquired) to the extent not subsequently sold, transferred, abandoned or otherwise disposed by Holdings or such Restricted Subsidiary during such period (each such Person, business, property or asset acquired and not subsequently so disposed of, an “Acquired Entity or Business”) and the Acquired EBITDA of any Unrestricted Subsidiary that is converted into a Restricted Subsidiary during such period (each, a “Converted Restricted Subsidiary”), based on the actual Acquired EBITDA of such Acquired Entity or Business or Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion) and (B) an adjustment in respect of each Acquired Entity or Business equal to the amount of the Pro Forma Adjustment with respect to such Acquired Entity or Business for such period (including the portion thereof occurring prior to such acquisition) as specified in a Pro Forma Adjustment Certificate and delivered to the Administrative Agent; and

 

16

 

(iii)                                 to the extent included in Consolidated Net Income, there shall be excluded in determining Consolidated EBITDA for any period the Disposed EBITDA of any Person, property, business or asset sold, transferred, abandoned or otherwise disposed of, closed or classified as discontinued operations by Holdings or any Restricted Subsidiary during such period (each such Person, property, business or asset so sold or disposed of, a “Sold Entity or Business”) and the Disposed EBITDA of any Restricted Subsidiary that is converted into an Unrestricted Subsidiary during such period (each, a “Converted Unrestricted Subsidiary”) based on the actual Disposed EBITDA of such Sold Entity or Business or Converted Unrestricted Subsidiary for such period (including the portion thereof occurring prior to such sale, transfer or disposition or conversion); provided that for the avoidance of doubt, notwithstanding any classification under GAAP of any Person or business in respect of which a definitive agreement for the Disposition thereof has been entered into as discontinued operations, the Disposed EBITDA of such Person or business shall not be excluded pursuant to this paragraph until such Disposition shall have been consummated.

 

“Consolidated First Lien Secured Debt” shall mean the Obligations and all Consolidated Total Debt (other than Junior Lien Debt) as of such date secured by a Lien on any property or assets of Holdings or any of its Restricted Subsidiary (including, for the avoidance of doubt the aggregate amount of all outstanding Indebtedness in respect of Receivables Facilities).

 

“Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio” shall mean, as of any date of determination, the ratio of (i) Consolidated First Lien Secured Debt as of such date of determination, minus cash and Cash Equivalents (in each case, free and clear of all Liens other than Permitted Liens) of Holdings and the Restricted Subsidiaries in an aggregate amount not to exceed $75,000,000 (of which not more than $25,000,000 may be cash and Cash Equivalents held outside of the United States) to (ii) Consolidated EBITDA of Holdings for the Test Period most recently ended on or prior to such date of determination.

 

“Consolidated Interest Expense” shall mean the sum of (1) cash interest expense (including that attributable to Capitalized Lease Obligations), net of cash interest income of such Person and its Restricted Subsidiaries with respect to all outstanding Indebtedness of such Person and its Restricted Subsidiaries, including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under hedging agreements, plus (2) non-cash interest expense resulting solely from the net amortization of original issue discount and original issuance premium from the issuance of Indebtedness of such Person and its Restricted Subsidiaries (including any Indebtedness borrowed under this Agreement in connection with the Transactions and any permitted Refinancing thereof) but excluding, for the avoidance of doubt, (a) amortization of deferred financing costs, debt issuance costs, commissions, fees and expenses and any other amounts of non-cash interest other than referred to in clause (2) above (including as a result of the effects of acquisition method accounting or pushdown accounting), (b) non-cash interest expense attributable to the movement of the mark-to-market valuation of Indebtedness or obligations under Hedging Obligations or other derivative instruments pursuant to FASB Accounting Standards Codification Topic 815—Derivatives and Hedging, (c) any one-time cash costs associated with breakage in respect of hedging agreements for interest rates, (d) any “additional interest” owing pursuant to a registration rights agreement with respect to any securities, (e) any payments with respect to make-whole premiums or other breakage costs of any Indebtedness, including, without limitation, any Indebtedness issued in connection with the Transactions, (f) penalties and interest relating to taxes, (g) accretion or accrual of discounted liabilities not constituting Indebtedness, (h) interest expense attributable to a direct or indirect parent entity resulting from push-down accounting, (i) any expense resulting from the discounting of Indebtedness in connection with the application of recapitalization or purchase accounting and (j) any interest expense attributable to the

 

17

 

exercise of appraisal rights and the settlement of any claims or actions (whether actual, contingent or potential) with respect thereto and with respect to any acquisition or Investment permitted hereunder, all as calculated on a consolidated basis.

 

For purposes of this definition, interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.

 

“Consolidated Net Income” shall mean, with respect to any Person for any period, the aggregate of the Net Income, of such Person and its Restricted Subsidiaries for such period, on a consolidated basis, and otherwise determined in accordance with GAAP; provided that, without duplication,

 

(1)                               any after-tax effect of extraordinary, non-recurring or unusual gains or losses (less all fees and expenses relating thereto) or expenses (including relating to the Transactions), severance, relocation costs, curtailments or modifications to pension and post-retirement employee benefits plans, start-up, transition, integration and other restructuring and business optimization costs, charges, reserves or expenses (including related to acquisitions after the Closing Date and to the start-up, closure and/or consolidation of facilities), new product introductions, and one-time compensation charges shall be excluded,

 

(2)                               the Net Income for such period shall not include the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies during such period, shall be excluded,

 

(3)                               any net after-tax gains or losses (less all fees and expenses relating thereto) on asset sales, disposals or abandonments (other than asset sales, disposals or abandonments in the ordinary course of business) or discontinued operations (but if such operations are classified as discontinued due to the fact that they are subject to an agreement to dispose of such operations, only when and to the extent such operations are actually disposed of), shall be excluded,

 

(4)                               the Net Income for such period of any Person that is not Holdings, the Borrower or a Subsidiary, or is an Unrestricted Subsidiary, or that is accounted for by the equity method of accounting, shall be excluded; provided that Consolidated Net Income of Holdings shall be increased by the amount of dividends or distributions or other payments that are actually paid in cash (or to the extent converted into cash or Cash Equivalents) by the referent Person or Unrestricted Subsidiary to Holdings or a Restricted Subsidiary thereof in respect of such period,

 

(5)                               solely for the purpose of determining the amount available for Restricted Payments under clause (3)(A) of Section 10.5(a) the Net Income for such period of any Restricted Subsidiary (other than any Guarantor) shall be excluded to the extent the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of its Net Income is not at the date of determination permitted without any prior governmental approval (which has not been obtained) or, directly or indirectly, by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted Subsidiary or its stockholders, unless such restriction with respect to the payment of dividends or similar distributions (a) has been legally waived or otherwise released, (b) is imposed pursuant to this Agreement and other Credit Documents or definitive documentation with respect to Permitted Debt Exchange Notes or Permitted Other Indebtedness or (c) arises pursuant to an agreement or instrument if the encumbrances and restrictions contained in any such agreement or instrument taken as a whole are not materially less favorable to the Secured

 

18

 

Parties than the encumbrances and restrictions contained in the Credit Documents (as determined by the Borrower in good faith); provided that Consolidated Net Income of the referent Person will be increased by the amount of dividends or other distributions or other payments actually paid in cash (or to the extent converted into cash) or Cash Equivalents to such Person or a Restricted Subsidiary thereof in respect of such period, to the extent not already included therein,

 

(6)                               effects of adjustments (including the effects of such adjustments pushed down to Holdings and its Restricted Subsidiaries) in any line item in such Person’s consolidated financial statements required or permitted by Financial Accounting Standards Codification Topic 805 — Business Combinations and Topic 350 — Intangibles-Goodwill and Other (ASC 805 and ASC 350) (formerly Financial Accounting Standards Board Statement Nos. 141 and 142, respectively) resulting from the application of purchase accounting, including in relation to the Transactions and any acquisition that is consummated after the Closing Date or the amortization or write-off of any amounts thereof, net of taxes, shall be excluded,

 

(7)                               (i) any after-tax effect of income (loss) from the early extinguishment of Indebtedness or Hedging Obligations or other derivative instruments (including deferred financing costs written off and premiums paid), (ii) any non-cash income (or loss) related to currency gains or losses related to Indebtedness, intercompany balances and other balance sheet items and to Hedging Obligations pursuant to ASC 815 (or such successor provision) and (iii) any non-cash expense, income or loss attributable to the movement in mark-to-market valuation of foreign currencies, Indebtedness or derivative instruments pursuant to GAAP, shall be excluded,

 

(8)                               any impairment charge, asset write-off or write-down pursuant to ASC 350 and Financial Accounting Standards Codification Topic 360 — Impairment and Disposal of Long-Lived Assets (ASC 360) (formerly Financial Accounting Standards Board Statement No. 144) and the amortization of intangibles arising pursuant to ASC 805 shall be excluded,

 

(9)                               (i) any non-cash compensation expense recorded from or in connection with any equity share-based compensation arrangements including stock appreciation or similar rights, phantom equity, stock options, restricted stock, capital or profits interests or other rights to officers, directors, managers or employees and (ii) non-cash income (loss) attributable to deferred compensation plans or trusts, shall be excluded,

 

(10)                              any fees and expenses incurred during such period, or any amortization thereof for such period, in connection with any acquisition, Investment, recapitalization, Asset Sale, issuance or repayment of Indebtedness, issuance of Equity Interests, refinancing transaction or amendment or modification of any debt instrument (in each case, including any such transaction consummated prior to the Closing Date and any such transaction undertaken but not completed) and any charges or non-recurring merger costs incurred during such period as a result of any such transaction shall be excluded,

 

(11)                              accruals and reserves (including contingent liabilities) that are established or adjusted within twelve months after the Closing Date that are so required to be established as a result of the Transactions in accordance with GAAP, or changes as a result of adoption or modification of accounting policies, shall be excluded, and

 

(12)                              any deferred tax expense associated with tax deductions or net operating losses arising as a result of the Transactions, or the release of any valuation allowance related to such items, shall be excluded.

 

19

 

“Consolidated Total Assets” shall mean, as of any date of determination, the amount that would, in conformity with GAAP, be set forth opposite the caption “total assets” (or any like caption) on the most recent consolidated balance sheet of Holdings and the Restricted Subsidiaries at such date.

 

“Consolidated Total Debt” shall mean, as at any date of determination, an amount equal to the sum of the aggregate amount of all outstanding Indebtedness of Holdings and the Restricted Subsidiaries on a consolidated basis consisting of Indebtedness for borrowed money, Capitalized Lease Obligations and debt obligations evidenced by promissory notes and similar instruments (and excluding, for the avoidance of doubt, Hedging Obligations) (including, for the avoidance of doubt, the aggregate amount of all outstanding Indebtedness in respect of Receivables Facilities); provided that Consolidated Total Debt shall not include Letters of Credit, except to the extent of Unpaid Drawings thereunder.

 

“Consolidated Total Debt to Consolidated EBITDA Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Total Debt as of such date, minus the aggregate cash and Cash Equivalents (in each case, free and clear of all Liens (other than Permitted Liens)) of Holdings and the Restricted Subsidiaries in an aggregate amount not to exceed $75,000,000 (of which not more than $25,000,000 may be cash and Cash Equivalents held outside of the United States) to (b) Consolidated EBITDA of Holdings for the Test Period most recently ended on or prior to such date of determination.

 

“Consummation Date” shall mean (a) with respect to a single acquisition, the date on which such acquisition is consummated and (b) with respect to a series or group of acquisitions, the date on which the last acquisition in such series or group of acquisitions is consummated.

 

“Contingent Obligations” shall mean, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other payment obligations that do not constitute Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (1) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (2) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor or (3) 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 against loss in respect thereof.

 

“Contractual Requirement” shall have the meaning provided in Section 8.3.

 

“Converted Restricted Subsidiary” shall have the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Converted Unrestricted Subsidiary” shall have the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Credit Documents” shall mean this Agreement, the Guarantees, the Security Documents and any promissory notes issued by the Borrower hereunder.

 

“Credit Event” shall mean and include the making (but not the conversion or continuation) of a Loan and the issuance of a Letter of Credit.

 

“Credit Facilities” shall mean, collectively, each category of Commitments and each extension of credit hereunder.

 

20

 

“Credit Facility” shall mean a category of Commitments and extensions of credit thereunder.

 

“Credit Party” shall mean Holdings, the Borrower and the other Guarantors.

 

“Cure Amount” shall have the meaning provided in Section 11.4.

 

“Cure Right” shall have the meaning provided in Section 11.4.

 

“Debt Incurrence Prepayment Event” shall mean any issuance or incurrence by Holdings or any of the Restricted Subsidiaries of any Indebtedness (excluding any Indebtedness permitted to be issued or incurred under Section 10.1 other than Section 10.1(x)(i)).

 

“Declined Proceeds” shall have the meaning provided in Section 5.2(f).

 

“Default” shall mean any event, act or condition that is, or with notice or lapse of time, or both, would constitute, an Event of Default.

 

“Default Rate” shall have the meaning provided in Section 2.8(c).

 

“Defaulting Lender” shall mean any Lender whose acts or failure to act, whether directly or indirectly, cause it to meet any part of the definition of “Lender Default”.

 

“Deferred Net Cash Proceeds” shall have the meaning provided in the definition of “Net Cash Proceeds”.

 

“Deferred Net Cash Proceeds Payment Date” shall have the meaning provided in the definition of “Net Cash Proceeds”.

 

“Designated Jurisdiction” shall mean any country or territory to the extent that such country or territory itself is the subject of any Sanction.

 

“Designated Non-Cash Consideration” shall mean the Fair Market Value of non-cash consideration received by Holdings or a Restricted Subsidiary in connection with an Asset Sale that is so designated as Designated Non-Cash Consideration pursuant to a certificate of an Authorized Officer of Holdings or the Borrower, setting forth the basis of such valuation, executed by either a senior vice president or the principal financial officer of Holdings or the Borrower, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of or collection on or other disposition of such Designated Non-Cash Consideration.  A particular item of Designated Non-Cash Consideration will no longer be considered to be outstanding when and to the extent it has been paid, redeemed or otherwise retired or sold or otherwise disposed of (in each case for cash) in compliance with Section 10.4.

 

“Designated Preferred Stock” shall mean preferred stock of Holdings or any direct or indirect parent company of Holdings (in each case other than Disqualified Stock) that is issued for cash (other than to Holdings or a Restricted Subsidiary or an employee stock ownership plan or trust established by Holdings or any of its Subsidiaries) and is so designated as Designated Preferred Stock, pursuant to an officer’s certificate executed by the principal financial officer of Holdings or the parent company thereof, as the case may be, on the issuance date thereof, the cash proceeds of which are excluded from the calculation set forth in clause (3) of Section 10.5(a).

 

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“Disposed EBITDA” shall mean, with respect to any Sold Entity or Business or any Converted Unrestricted Subsidiary for any period, the amount for such period of Consolidated EBITDA of such Sold Entity or Business or Converted Unrestricted Subsidiary (determined as if references to Holdings and the Restricted Subsidiaries in the definition of Consolidated EBITDA were references to such Sold Entity or Business or Converted Unrestricted Subsidiary and its respective Subsidiaries), all as determined on a consolidated basis for such Sold Entity or Business or Converted Unrestricted Subsidiary, as the case may be.

 

“Disposition” shall have the meaning assigned such term in clause (i) of the definition of Asset Sale.

 

“Disqualified Lenders” shall mean such Persons (i) that have been specified in writing to the Administrative Agent and the Joint Lead Arrangers and Bookrunners prior to the commencement of “primary syndication” of the Initial Term Loans as being Disqualified Lenders, (ii) who are competitors of Holdings and their respective Subsidiaries that are separately identified in writing by the Borrower to the Administrative Agent from time to time and, (iii) in the case of each of clauses (i) and (ii), any of their Affiliates (other than any such Affiliate that is, or is affiliated with, a financial investor in such Person and that is not itself an operating company or otherwise an Affiliate of an operating company or is a bona fide Fund) that are either (a) identified in writing by the Borrower to the Administrative Agent from time to time or (b) clearly identifiable on the basis of such Affiliate’s name.  Notwithstanding the foregoing, each Credit Party and the Lenders acknowledge and agree that the Administrative Agent shall not have any responsibility or obligation to determine whether any Lender or potential Lender is a Disqualified Lender and the Administrative Agent shall have no liability with respect to any assignment made to a Disqualified Lender.

 

“Disqualified Stock” shall mean, with respect to any Person, any Capital Stock of such Person which, by its terms, or by the terms of any security into which it is convertible or for which it is puttable or exchangeable, or upon the happening of any event, matures or is mandatorily redeemable (other than solely for Qualified Stock), other than as a result of a change of control, asset sale, condemnation event or similar event, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (other than solely for Qualified Stock), other than as a result of a change of control, asset sale, condemnation event or similar event, in whole or in part, in each case, prior to the date that is 91 days after the Latest Term Loan Maturity Date hereunder; provided that if such Capital Stock is issued to any plan for the benefit of employees of Holdings or its Subsidiaries or by any such plan to such employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be required to be repurchased by Holdings or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.

 

“Distressed Person” shall have the meaning provided in the definition of “Lender-Related Distress Event”.

 

“Dollar Equivalent” shall mean, at any time, (a) with respect to any amount denominated in Dollars, such amount and (b) with respect to any amount denominated in any currency other than Dollars, the equivalent amount thereof in Dollars as determined by the Administrative Agent or the Letter of Credit Issuer, as the case may be, on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date or other relevant date of determination) for the purchase of Dollars with such currency.

 

“Dollars” and “$” shall mean dollars in lawful currency of the United States of America.

 

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“Domestic Subsidiary” shall mean each Subsidiary of Holdings that is organized under the laws of the United States, any state thereof, or the District of Columbia.

 

“Drawing” shall have the meaning provided in Section 3.4(b).

 

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

 

“EEA Member Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein and Norway.

 

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

 

“Effective Yield” shall mean, as to any Indebtedness, the effective yield on such Indebtedness in the reasonable determination of the Administrative Agent in consultation with the Borrower and consistent with generally accepted financial practices, taking into account the applicable interest rate margins, any interest rate floors (the effect of which floors shall be determined in a manner set forth in the proviso below) or similar devices and all fees, including upfront or similar fees or original issue discount (amortized over the shorter of (a) the remaining weighted average life to maturity of such Indebtedness and (b) the four years following the date of incurrence thereof) payable generally to Lenders or other institutions providing such Indebtedness in connection with the initial primary syndication thereof, but excluding any arrangement, structuring, ticking or other similar fees payable in connection therewith that are not generally shared with the relevant Lenders and, if applicable, consent fees for an amendment paid generally to consenting Lenders; provided that with respect to any Indebtedness that includes a “LIBOR floor” or “ABR floor,” (i) to the extent that the Adjusted LIBOR Rate (with an Interest Period of three months) or ABR (without giving effect to any floors in such definitions), as applicable, on the date that the Effective Yield is being calculated is less than such floor, the amount of such difference shall be deemed added to the interest rate margin for such Indebtedness for the purpose of calculating the Effective Yield and (ii) to the extent that the Adjusted LIBOR Rate (with an Interest Period of three months) or ABR (without giving effect to any floors in such definitions), as applicable, on the date that the Effective Yield is being calculated is greater than such floor, then the floor shall be disregarded in calculating the Effective Yield.

 

“Environmental Claim” shall mean any and all actions, suits, orders, decrees, demand letters, claims, notices of noncompliance or potential responsibility or violation or proceedings pursuant to any Environmental Law or any permit issued, or any approval given, under any such Environmental Law (hereinafter, “Claims”), including, without limitation, (i) any and all Claims by governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any Environmental Law and (ii) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief relating to the presence, Release or threatened Release of Hazardous Materials or arising from alleged injury or threat of injury to health or safety (to the extent relating to human exposure to Hazardous Materials), or the environment including, without limitation, ambient air, indoor air, surface water, groundwater, soil, land surface and subsurface strata and natural resources such as wetlands.

 

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“Environmental Law” shall mean any applicable Federal, state, foreign or local statute, law, rule, regulation, ordinance, code and rule of common law now or hereafter in effect and in each case as amended, and any binding judicial or administrative interpretation thereof, including any binding judicial or administrative order, consent decree or judgment, relating to pollution or protection of the environment, including, without limitation, ambient air, indoor air, surface water, groundwater, soil, land surface and subsurface strata and natural resources such as flora, fauna or wetlands, or protection of human health or safety (to the extent relating to human exposure to Hazardous Materials) and including those relating to the generation, storage, treatment, transport, Release or threat of Release of Hazardous Materials.

 

“Equity Interest” shall mean Capital Stock and all warrants, options or other rights to acquire Capital Stock, but excluding any debt security that is convertible into, or exchangeable for, Capital Stock.

 

“Equity Offering” shall mean any public or private sale of common stock or preferred stock of the Borrower, Holdings or any direct or indirect parent company of Holdings (excluding Disqualified Stock), other than:  (a) public offerings with respect to the Borrower or any of its direct or indirect parent company’s common stock registered on Form S-8, (b) issuances to any Subsidiary of Holdings or the Borrower, (c) any such public or private sale that constitutes an Excluded Contribution and (d) any Cure Amount.

 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that, together with any Credit Party, is treated as a single employer under Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

“ERISA Event” shall mean (a) the failure of any Plan to comply with any provisions of ERISA and/or the Code (and applicable regulations under either) or with the terms of such Plan; (b) the existence with respect to any Plan of a non-exempt Prohibited Transaction; (c) any Reportable Event; (d) the failure of any Credit Party or ERISA Affiliate to make by its due date a required installment under Section 430(j) of the Code with respect to any Pension Plan or any failure by any Pension Plan to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Pension Plan, whether or not waived; (e) a determination that any Pension Plan is in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA); (f) 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 Pension Plan; (g) the occurrence of any event or condition which would reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan under Section 4042 of ERISA or the incurrence by any Credit Party or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Pension Plan (other than for PBGC premiums due but not delinquent under Section 4007 of ERISA), including but not limited to the imposition of any Lien in favor of the PBGC or any Pension Plan; (h) the receipt by any Credit Party or any of its ERISA Affiliates from the PBGC or a plan administrator of any notice to terminate any Pension Plan under Section 4041 of ERISA or to appoint a trustee to administer any Pension Plan under Section 4042 of ERISA; (i) the failure by any Credit Party or any of its ERISA Affiliates to make any required contribution to a Multiemployer Plan; (j) the incurrence by any Credit Party or any of its ERISA Affiliates of any liability with respect to the withdrawal from any Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a “substantial employer” (within the meaning of Section 4001(a)(2) of ERISA), or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, or the complete or partial

 

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withdrawal (within the meaning of Section 4203 or 4205 of ERISA) from any Multiemployer Plan; (k) the receipt by any Credit Party or any of its ERISA Affiliates of any notice concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, Insolvent, in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA), or terminated (within the meaning of Section 4041A of ERISA); or (l) the failure by any Credit Party or any of its ERISA Affiliates to pay when due (after expiration of any applicable grace period) any installment payment with respect to Withdrawal Liability under Section 4201 of ERISA.

 

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

 

“Event of Default” shall have the meaning provided in Section 11.

 

“Excluded Contribution” shall mean net cash proceeds, the Fair Market Value of marketable securities or the Fair Market Value of Qualified Proceeds received by Holdings from, without duplication, (a) contributions to its common equity capital and (b) the sale (other than to a Subsidiary of Holdings or to any management equity plan or stock option plan or any other management or employee benefit plan or agreement of Holdings) of Capital Stock (other than Disqualified Stock and Designated Preferred Stock) of Holdings, in each case designated as Excluded Contributions pursuant to an officer’s certificate executed by either a senior vice president or the principal financial officer of the Borrower on the date such capital contributions are made or the date such Equity Interests are sold, as the case may be, which are excluded from the calculation set forth in clause (3) of Section 10.5(a); provided that (i) any non-cash assets shall qualify only if acquired by a parent of Holdings in an arm’s-length transaction within the six months prior to such contribution and (ii) no Cure Amount shall constitute an Excluded Contribution.

 

“Excluded Property” shall have the meaning set forth in the Security Agreement.

 

“Excluded Stock and Stock Equivalents” shall mean (i) any Capital Stock or Stock Equivalents with respect to which, in the reasonable judgment of the Administrative Agent and Holdings (as agreed to in writing), the cost or other consequences of pledging such Capital Stock or Stock Equivalents in favor of the Secured Parties under the Security Documents shall be excessive in view of the benefits to be obtained by the Lenders therefrom, (ii) solely in the case of any pledge of Capital Stock and Stock Equivalents of any FSHCO or Foreign Subsidiary, any Voting Stock or Voting Stock Equivalents of any class of such FSHCO or Foreign Subsidiary in excess of 66% of the outstanding Voting Stock of such class (such percentage to be adjusted upon any Change in Law in the percentage that may be required to avoid adverse U.S. federal income tax consequences to the Borrower or any Guarantor that is a Domestic Subsidiary), (iii) any Capital Stock or Stock Equivalents to the extent the pledge thereof would violate any applicable Requirement of Law (including any legally effective requirement to obtain the consent of any Governmental Authority unless such consent has been obtained), (iv) in the case of (A) any Capital Stock or Stock Equivalents of any Subsidiary to the extent such Capital Stock or Stock Equivalents are subject to a Lien permitted by clause (9) of the definition of “Permitted Lien” or (B) any Capital Stock or Stock Equivalents of any Subsidiary that is not wholly-owned by Holdings and its Subsidiaries at the time such Subsidiary becomes a Subsidiary (for so long as such Subsidiary remains a non-Wholly-Owned Restricted Subsidiary), any Capital Stock or Stock Equivalents of each such Subsidiary described in clause (A) or (B) to the extent (1) that a pledge thereof to secure the Obligations is prohibited by any applicable Contractual Requirement (other than non-assignment provisions which are ineffective under the Uniform Commercial Code or other applicable law), (2) any Contractual Requirement prohibits such a pledge without the consent of any other party (other than non-assignment provisions which are ineffective under the Uniform Commercial Code or other applicable law); provided that this clause (2) shall not apply if (x) such other party is a Credit Party or Wholly-Owned Subsidiary or (y) consent has been

 

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obtained to consummate such pledge (it being understood that the foregoing shall not be deemed to obligate Holdings or any Subsidiary to obtain any such consent) and for so long as such Contractual Requirement or replacement or renewal thereof is in effect or (3) a pledge thereof to secure the Obligations would give any other party (other than a Credit Party or Wholly-Owned Subsidiary) to any contract, agreement, instrument or indenture governing such Capital Stock or Stock Equivalents the right to terminate its obligations thereunder (other than customary non-assignment provisions which are ineffective under the Uniform Commercial Code or other applicable law), (v) any Capital Stock or Stock Equivalents of any Subsidiary to the extent that (A) the pledge of such Capital Stock or Stock Equivalents would result in adverse tax consequences to Holdings or any Subsidiary as reasonably determined by Holdings and the Administrative Agent and (B) such Capital Stock or Stock Equivalents have been identified in writing to the Collateral Agent by an Authorized Officer of Holdings, (vi) any Capital Stock or Stock Equivalents that are margin stock and (vii) any Capital Stock and Stock Equivalents of any Subsidiary that is not a Material Subsidiary or is an Unrestricted Subsidiary or a captive insurance Subsidiary.

 

“Excluded Subsidiary” shall mean (a) each Subsidiary, in each case, for so long as any such Subsidiary does not (on (x) a consolidated basis with its Restricted Subsidiaries, if determined on the Closing Date by reference to the latest Historical Financial Statements or (y) a consolidated basis with its Restricted Subsidiaries, if determined after the Closing Date by reference to the financial statements delivered to the Administrative Agent pursuant to Section 9.1(a) and 9.1(b) constitute a Material Subsidiary, (b) each Subsidiary that is not a Wholly-Owned Subsidiary on any date such Subsidiary would otherwise be required to become a Guarantor pursuant to the requirements of Section 9.11 (for so long as such Subsidiary remains a non-Wholly-Owned Restricted Subsidiary), (c) any Domestic Subsidiary (such Domestic Subsidiary defined under this clause (c), a “FSHCO”) substantially all of the assets of which consist of (x) Capital Stock and/or Stock Equivalents of Foreign Subsidiaries that are CFCs and/or (y) other Domestic Subsidiaries substantially all of the assets of which consist of Capital Stock and/or Stock Equivalents of Foreign Subsidiaries that are CFCs or FSHCOs, (d)(x) any Domestic Subsidiary that is a Subsidiary of a Foreign Subsidiary that is a CFC and (y) any Foreign Subsidiary that is a CFC, (e) each Subsidiary that is prohibited by any applicable Contractual Requirement or Requirement of Law from guaranteeing the Obligations at the time such Subsidiary becomes a Restricted Subsidiary (and for so long as such restriction or any replacement or renewal thereof is in effect) in the case of a Contractual Requirement, to the extent not entered into in contemplation of such Subsidiary becoming a Restricted Subsidiary or in order for such Subsidiary to constitute an Excluded Subsidiary, (f) each Subsidiary with respect to which, as reasonably determined by Holdings, the consequence of providing a Guarantee of the Obligations would adversely affect the ability of Holdings and its Subsidiaries to satisfy applicable Requirements of Law, (g) any other Subsidiary with respect to which, (x) in the reasonable judgment of the Administrative Agent and Holdings, as agreed in writing, the cost or other consequences of providing a Guarantee of the Obligations shall be excessive in view of the benefits to be obtained by the Lenders therefrom or (y) providing such a Guarantee would result in adverse tax consequences to Holdings or any Subsidiary as reasonably determined by Holdings in consultation with the Administrative Agent, (h) each Unrestricted Subsidiary, (i) any Receivables Subsidiary, (j) each other Subsidiary acquired pursuant to a Permitted Acquisition or other Investment permitted hereunder and financed with assumed secured Indebtedness permitted hereunder, and each Restricted Subsidiary acquired in such Permitted Acquisition or other Investment permitted hereunder that guarantees such Indebtedness, in each case to the extent that, and for so long as, the documentation relating to such Indebtedness to which such Subsidiary is a party prohibits such Subsidiary from guaranteeing the Obligations and such prohibition was not created in contemplation of such Permitted Acquisition or other Investment permitted hereunder or in order for such Subsidiary to constitute an Excluded Subsidiary and (k) each not-for-profit Subsidiary.

 

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“Excluded Swap Obligation” shall mean, with respect to any Credit Party, (a) any Swap Obligation if, and to the extent that, all or a portion of the Obligations of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any obligations in respect thereof) is or becomes illegal or unlawful 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) or (b) any other Swap Obligation designated as an “Excluded Swap Obligation” of such Guarantor as specified in any agreement between the relevant Credit Parties and Hedge Bank applicable 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 Obligation or security interest is or becomes illegal or unlawful or is so designated.

 

“Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of any Credit Party hereunder or under any other Credit Document, (i) Taxes imposed on or measured by its overall net income, net profits or branch profits (however denominated, and including (for the avoidance of doubt) any backup withholding in respect thereof under Section 3406 of the Code or any similar provision of state, local or foreign law), and franchise (and similar) Taxes imposed on it (in lieu of net income Taxes), in each case by a jurisdiction (including any political subdivision thereof) as a result of such recipient being organized in, having its principal office in, or in the case of any Lender, having its applicable lending office in, such jurisdiction, or as a result of any other present or former connection with such jurisdiction (other than any such connection arising solely 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 Credit Documents, or sold or assigned an interest in any Credit Document), (ii) any U.S. federal withholding Tax imposed on any payment by or on account of any obligation of any Credit Party hereunder or under any other Credit Document that is required to be imposed on amounts payable to or for the account of a Lender with respect to an applicable interest in a Loan or Commitment pursuant to laws in force at the time such Lender acquires such interest in the Loan or Commitment (or designates a new lending office), other than in the case of a Lender that is an assignee pursuant to a request by the Borrower or Holdings under Section 13.7 (or that designates a new lending office pursuant to a request by the Borrower), except to the extent that such Lender (or its assignor, if any) was entitled, immediately prior to the designation of a new lending office (or assignment), to receive additional amounts from the Credit Parties with respect to such withholding Tax pursuant to Section 5.4(a) (iii) any Taxes attributable to a recipient’s failure to comply with Section 5.4(e) or (iv) any withholding Tax imposed under FATCA.

 

“Existing Class” shall mean any Existing Term Loan Class and any Existing Revolving Credit Class.

 

“Existing Credit Agreement” shall have the meaning provided in the recitals to this Agreement.

 

“Existing Revolving Credit Class” shall have the meaning provided in Section 2.14(g)(ii).

 

“Existing Revolving Credit Commitment” shall have the meaning provided in Section 2.14(g)(ii).

 

“Existing Revolving Credit Loans” shall have the meaning provided in Section 2.14(g)(ii).

 

“Existing Term Loan Class” shall have the meaning provided in Section 2.14(g)(i).

 

“Extended Repayment Date” shall have the meaning provided in Section 2.5(c).

 

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“Extended Revolving Credit Commitments” shall have the meaning provided in Section 2.14(g)(ii).

 

“Extended Revolving Credit Loans” shall have the meaning provided in Section 2.14(g)(ii).

 

“Extended Revolving Loan Maturity Date” shall mean the date on which any tranche of Extended Revolving Credit Loans matures.

 

“Extended Term Loan Repayment Amount” shall have the meaning provided in Section 2.5(c).

 

“Extended Term Loans” shall have the meaning provided in Section 2.14(g)(i).

 

“Extending Lender” shall have the meaning provided in Section 2.14(g)(iii).

 

“Extension Amendment” shall have the meaning provided in Section 2.14(g)(iv).

 

“Extension Date” shall have the meaning provided in Section 2.14(g)(v).

 

“Extension Election” shall have the meaning provided in Section 2.14(g)(iii).

 

“Extension Request” shall have the meaning provided in Section 2.14(g)(i).

 

“Extension Series” shall mean all Extended Term Loans or Extended Revolving Credit Commitments that are established pursuant to the same Extension Amendment (or any subsequent Extension Amendment to the extent such Extension Amendment expressly provides that the Extended Term Loans or Extended Revolving Credit Commitments, as applicable, provided for therein are intended to be a part of any previously established Extension Series) and that provide for the same interest margins, extension fees and amortization schedule.

 

“Fair Market Value” means with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a sale of such asset at such date of determination assuming a sale by a willing seller to a willing purchaser dealing at arm’s length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset, as determined in good faith by the Borrower.

 

“Fair Value” shall mean the amount at which the assets (both tangible and intangible), in their entirety, of the Borrower and its Restricted Subsidiaries taken as a whole would change hands between a willing buyer and a willing seller, within a commercially reasonable period of time, each having reasonable knowledge of the relevant facts, with neither being under any compulsion to act.

 

“FATCA” shall mean 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 agreements 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.

 

“FCPA” shall mean the Foreign Corrupt Practices Act of 1977, as amended.

 

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“Federal Funds Effective Rate” shall mean, for any day, the weighted average of the per annum rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York; provided that (a) if such day is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be the average rate charged to the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

 

“Fees” shall mean all amounts payable pursuant to, or referred to in, Section 4.1.

 

“First Lien Intercreditor Agreement” shall mean an Intercreditor Agreement substantially in the form of Exhibit I-1 (with such changes to such form as may be reasonably acceptable to the Administrative Agent and the Borrower) among the Administrative Agent, the Collateral Agent and the representatives for purposes thereof of holders of one or more classes of First Lien Obligations (other than the Obligations).

 

“First Lien Obligations” shall mean the Obligations and the Permitted Other Indebtedness Obligations that are secured by the Collateral on an equal priority basis (but without regard to the control of remedies) with Liens on the Collateral securing the Obligations.

 

“First Lien Secured Leverage Test” shall mean, as of any date of determination, with respect to the last day of the most recently ended Test Period, the Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio shall be no greater than 3.00 to 1.00.

 

“Fixed Charge Coverage Ratio” shall mean, as of any date of determination, the ratio of (i) Consolidated EBITDA for the Test Period most recently ended on or prior to such date of determination to (ii) the Fixed Charges for such Test Period.

 

“Fixed Charges” shall mean, with respect to any Person and its Restricted Subsidiaries for any period, the sum of:

 

(a)                              Consolidated Interest Expense of such Person and its Restricted Subsidiaries on a consolidated basis for such period,

 

(b)                               all cash dividend payments (excluding items eliminated in consolidation) on any series of preferred stock (including any Designated Preferred Stock) or any Refunding Capital Stock of such Person and its Restricted Subsidiaries made during such period, and

 

(c)                               all cash dividend payments (excluding items eliminated in consolidation) on any series of Disqualified Stock of such Person and its Restricted Subsidiaries made during such period.

 

“Foreign Benefit Arrangement” shall mean any employee benefit arrangement mandated by non-US law that is maintained or contributed to by any Credit Party or any of its Subsidiaries.

 

“Foreign Plan” shall mean each employee benefit plan (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to US law and is maintained or contributed to by any Credit Party or any of its Subsidiaries.

 

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“Foreign Plan Event” shall mean, with respect to any Foreign Plan or Foreign Benefit Arrangement, (A) the failure to make or, if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by applicable law or by the terms of such Foreign Plan or Foreign Benefit Arrangement; (B) the failure to register or loss of good standing with applicable regulatory authorities of any such Foreign Plan or Foreign Benefit Arrangement required to be registered; or (C) the failure of any Foreign Plan or Foreign Benefit Arrangement to comply with any provisions of applicable law and regulations or with the material terms of such Foreign Plan or Foreign Benefit Arrangement.

 

“Foreign Subsidiary” shall mean each Subsidiary of Holdings that is not a Domestic Subsidiary.

 

“Fronting Exposure” shall mean, at any time there is a Defaulting Lender, (a) with respect to the Letter of Credit Issuer, such Defaulting Lender’s Revolving Credit Commitment Percentage of the outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof and (b) with respect to the Swingline Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders in accordance with the terms hereof.

 

“Fronting Fee” shall have the meaning provided in Section 4.1(d).

 

“FSHCO” shall have the meaning provided in the definition of the term “Excluded Subsidiary”.

 

“Fund” shall mean any Person (other than a natural Person) that is engaged or advises funds or other investment vehicles that are engaged in making, purchasing, holding or investing in loans and similar extensions of credit in the ordinary course.

 

“GAAP” shall mean generally accepted accounting principles in the United States of America, as in effect from time to time; provided, however, that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the application thereof on the operation of such provision, 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.  Furthermore, at any time after the Closing Date, Holdings may elect to apply International Financial Reporting Standards (“IFRS”) accounting principles in lieu of GAAP and, upon any such election (and notification thereof to the Administrative Agent), references herein to GAAP and GAAP concepts shall thereafter be construed to refer to IFRS and corresponding IFRS concepts (except as otherwise provided in this Agreement); provided that any such election, once made, shall be irrevocable; provided, further, that any calculation or determination in this Agreement that requires the application of GAAP for periods that include fiscal quarters ended prior to Holdings’ election to apply IFRS shall remain as previously calculated or determined in accordance with GAAP.  Notwithstanding any other provision contained herein, the amount of any Indebtedness under GAAP with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of Capitalized Lease Obligations.

 

“Governmental Authority” shall mean any nation, sovereign or government, any state, province, territory or other political subdivision thereof, and any entity or authority exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government,

 

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including a central bank or stock exchange (including any supranational body exercising such powers or functions, such as the European Union or the European Central Bank).

 

“Granting Lender” shall have the meaning provided in Section 13.6(g).

 

“Guarantee” shall mean (a) the Guarantee made by Holdings, the Borrower and each other Guarantor in favor of the Collateral Agent for the benefit of the Secured Parties, substantially in the form of Exhibit B and (b) any other guarantee of the Obligations made by a Restricted Subsidiary in form and substance reasonably acceptable to the Administrative Agent, in each case as the same may be amended, supplemented or otherwise modified from time to time.

 

“guarantee obligations” shall mean, as to any Person, any obligation of such Person guaranteeing or intended to guarantee any Indebtedness of any primary obligor in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent, (a) to purchase any such Indebtedness or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such Indebtedness or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such Indebtedness of the ability of the primary obligor to make payment of such Indebtedness or (d) otherwise to assure or hold harmless the owner of such Indebtedness against loss in respect thereof; provided, however, that the term “guarantee obligations” shall not include endorsements of instruments for deposit or collection in the ordinary course of business or customary and reasonable indemnity obligations or product warranties in effect on the Closing Date or entered into in connection with any acquisition or disposition of assets permitted under this Agreement (other than such obligations with respect to Indebtedness).  The amount of any guarantee obligation shall be deemed to be an amount equal to the stated or determinable amount of the Indebtedness in respect of which such guarantee obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.

 

“Guarantors” shall mean (a) each Subsidiary that is party to the Guarantee on the Closing Date, (b) each Subsidiary that becomes a party to the Guarantee after the Closing Date pursuant to Section 9.11 or otherwise, (c) Holdings and (d) the Borrower; provided that in no event shall any Excluded Subsidiary be required to be a Guarantor (unless such Subsidiary is no longer an Excluded Subsidiary).

 

“Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive materials, asbestos and asbestos containing material, polychlorinated biphenyls, and radon gas; (b) any chemicals, materials or substances defined as or included in the definition of “hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous waste,” “restricted hazardous waste,” “toxic substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words of similar import, under any Environmental Law; and (c) any other chemical, material or substance, which is prohibited, limited, or regulated by any Environmental Law.

 

“Hedge Agreements” shall mean (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement and

 

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(b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“Hedge Bank” shall mean (a) (i) any Person that, at the time it enters into a Hedge Agreement, is a Lender, an Agent or an Affiliate of a Lender or an Agent and (ii) with respect to any Hedge Agreement entered into prior to the Closing Date, any person that is a Lender or an Affiliate of a Lender on the Closing Date or (b) any Person listed on Schedule 1.1(d); provided that, in the case of this clause (b), such Person executes and delivers to the Administrative Agent a letter agreement in form and substance reasonably acceptable to the Administrative Agent pursuant to which such person (i) appoints the Administrative Agent as its agent under the applicable Credit Documents and (ii) agrees to be bound by the provisions of Sections 12, 13, 14 and 26 of the Pledge Agreement and Sections 5.4, 5.5, 5.7, 6.5, 7 and 8.1 of the Security Agreement, in each case, as if it were a Lender.

 

“Hedging Obligations” shall mean, with respect to any Person, the obligations of such Person under any Hedge Agreements.

 

“Historical Financial Statements” shall mean (i) the audited consolidated balance sheets of Holdings and its consolidated Subsidiaries as at December 31, 2013, December 31, 2014 and December 31, 2015 and the related audited consolidated statements of income and cash flows of Holdings and its consolidated Subsidiaries for the years ended December 31, 2013, December 31, 2014 and December 31, 2015 and (ii) the unaudited interim consolidated balance sheets of Holdings and its consolidated Subsidiaries for the fiscal quarter ending September 30, 2016 and the related unaudited consolidated statements of income and cash flow of Holdings and its Subsidiaries for the fiscal quarter ending September 30, 2016.

 

“Holdings” shall mean (i) Holdings (as defined in the preamble to this Agreement) or (ii) after the Closing Date any other Person or Persons (the “New Holdings”) that is a Subsidiary of (or are Subsidiaries of) Holdings or of any Parent Entity of Holdings (or the previous New Holdings, as the case may be) but not the Borrower (the “Previous Holdings”); provided that (a) such New Holdings directly owns 100% of the Equity Interests of the Borrower, (b) the New Holdings shall expressly assume all the obligations of the Previous Holdings under this Agreement and the other Credit Documents pursuant to a supplement hereto or thereto in form and substance reasonably satisfactory to the Administrative Agent, (c) if reasonably requested by the Administrative Agent, an opinion of counsel shall be delivered by the Borrower to the Administrative Agent to the effect that without limitation such substitution does not violate this Agreement or any other Credit Document, (d) all Capital Stock of the Borrower and substantially all of the other assets of the Previous Holdings are contributed or otherwise transferred to such New Holdings and pledged to secure the Obligations, (f) no Event of Default has occurred and is continuing at the time of such substitution and such substitution does not result in any Default or Event of Default or adverse tax consequences and (g) no Change of Control shall occur; provided, further, that if each of the foregoing is satisfied, the Previous Holdings shall be automatically released of all its obligations under the Credit Documents and any reference to “Holdings” in the Credit Documents shall be meant to refer to the “New Holdings”.

 

“Identified Contingent Liabilities” shall mean the maximum estimated amount of liabilities reasonably likely to result from pending litigation, asserted claims and assessments, guaranties, uninsured risks and other contingent liabilities of the Borrower and its Restricted Subsidiaries taken as a whole after giving effect to the Transactions (including all fees and expenses related thereto but exclusive of such

 

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contingent liabilities to the extent reflected in Stated Liabilities), as identified and explained in terms of their nature and estimated magnitude by responsible officers of the Borrower.

 

“IFRS” shall have the meaning provided in the definition of GAAP.

 

“Increased Amount Date” shall have the meaning provided in Section 2.14(a).

 

“Incremental Loans” shall have the meaning provided in Section 2.14(c).

 

“Incremental Revolving Credit Commitments” shall have the meaning provided in Section 2.14(a).

 

“Incremental Revolving Credit Loan” shall have the meaning provided in Section 2.14(b).

 

“Incremental Revolving Credit Maturity Date” shall mean the date on which any tranche of Revolving Credit Loans made pursuant to a given tranche of Incremental Revolving Credit Commitments matures.

 

“Incremental Revolving Loan Lender” shall have the meaning provided in Section 2.14(b).

 

“incur” and “incurrence” shall have the meaning provided in Section 10.1.

 

“Indebtedness” shall mean, with respect to any Person, (1) any indebtedness (including principal and premium) of such Person, whether or not contingent (a) in respect of borrowed money, (b) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’ acceptances (or, without double counting, reimbursement agreements in respect thereof), (c) representing the balance deferred and unpaid of the purchase price of any property (including Capitalized Lease Obligations) or (d) representing any Hedging Obligations, if and to the extent that any of the foregoing Indebtedness (other than letters of credit and Hedging Obligations) would appear as a net liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP; provided that Indebtedness of any direct or indirect parent company appearing upon the balance sheet of Holdings solely by reason of push down accounting under GAAP shall be excluded, (2) to the extent not otherwise included, any obligation by such Person to be liable for, or to pay, as obligor, guarantor or otherwise, on the obligations of the type referred to in clause (1) of another Person (whether or not such items would appear upon the balance sheet of such obligor or guarantor), other than by endorsement of negotiable instruments for collection in the ordinary course of business, (3) to the extent not otherwise included, the obligations of the type referred to in clause (1) of another Person secured by a Lien on any asset owned by such Person, whether or not such Indebtedness is assumed by such Person and (4) to the extent not otherwise included, obligations under or in respect of Receivables Facilities; provided that notwithstanding the foregoing, Indebtedness shall be deemed not to include (A) Contingent Obligations incurred in the ordinary course of business, (B) prepaid or deferred revenue arising in the ordinary course of business, (C) purchase price holdbacks arising in the ordinary course of business in respect of a portion of the purchase price of an asset to satisfy warrants or other unperformed obligations of the seller of such asset, (D) any balance that constitutes a trade payable or similar obligation to a trade creditor, accrued in the ordinary course of business, (E) any earn-out obligation until such obligation, within 60 days of becoming due and payable, has not been paid and such obligation is reflected as a liability on the balance sheet of such Person in accordance with GAAP, (F) any obligations attributable to the exercise of appraisal rights and the settlement of any claims or actions (whether actual, contingent or potential) with respect thereto, (G) accrued expenses and royalties or (H) asset retirement obligations and obligations in respect of workers’ compensation (including pensions and retiree medical care) that are not overdue by more than

 

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60 days.  The amount of Indebtedness of any Person for purposes of clause (3) above shall (unless such Indebtedness has been assumed by such Person) be deemed to be equal to the lesser of (x) the aggregate unpaid amount of such Indebtedness and (y) the Fair Market Value of the property encumbered thereby as determined by such Person in good faith.

 

For all purposes hereof, the Indebtedness of Holdings, the Borrower and the other Restricted Subsidiaries, shall exclude all intercompany Indebtedness having a term not exceeding 364 (inclusive of any roll-over or extensions of terms) and made in the ordinary course of business consistent with past practice.

 

“indemnified liabilities” shall have the meaning provided in Section 13.5.

 

“Indemnified Taxes” shall mean (a) all Taxes imposed on or with respect to any payment by or on account of any obligation of any Credit Party hereunder or under any other Credit Document, other than Excluded Taxes and (b) to the extent not otherwise described in clause (a) above, Other Taxes.

 

“Initial Investors” shall mean Kohlberg Kravis Roberts & Co. L.P. and its Affiliates other than any portfolio company of the foregoing.

 

“Initial Revolving Credit Commitments” shall mean, with respect to the revolving credit facility established on the date hereof, the amount of such commitments set forth opposite each Lender’s name on Schedule 1.1(c) as such Lender’s Revolving Credit Commitment or in any Assignment and Acceptance pursuant to which such Lender assumed a portion of such commitment.

 

“Initial Revolving Credit Loan” shall mean any loan made under Section 2.1(b) utilizing the Initial Revolving Credit Commitments.

 

“Initial Term Loan” shall have the meaning provided in Section 2.1(a).

 

“Initial Term Loan Commitment” shall mean, in the case of each Lender that is a Lender on the Closing Date, the amount set forth opposite such Lender’s name on Schedule 1.1 (c) as such Lender’s Initial Term Loan Commitment.  The aggregate amount of the Initial Term Loan Commitments as of the Closing Date is $625,000,000.

 

“Initial Term Loan Lender” shall mean a Lender with an Initial Term Loan Commitment or an outstanding Initial Term Loan.

 

“Initial Term Loan Maturity Date” shall mean December 6, 2021 or, if such date is not a Business Day, the first Business Day thereafter.

 

“Initial Term Loan Repayment Amount” shall have the meaning provided in Section 2.5(b).

 

“Initial Term Loan Repayment Date” shall have the meaning provided in Section 2.5(b).

 

“Insolvent” shall mean, with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

 

“Intellectual Property” shall mean U.S. and foreign intellectual property, including all (i) (a) patents, inventions, processes, developments, technology and know-how; (b) copyrights and works of authorship in any media, including graphics, advertising materials, labels, package designs and

 

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photographs; (c) trademarks, service marks, trade names, brand names, corporate names, domain names, logos, trade dress and other source indicators, and the goodwill of any business symbolized thereby; and (d) trade secrets, confidential, proprietary or non-public information and (ii) all registrations, applications renewals, extensions, substitutions, continuations, continuations-in-part, divisions, re-issues, re-examinations, foreign counterparts or similar legal protections related thereto.

 

“Interest Period” shall mean, with respect to any Loan, the interest period applicable thereto, as determined pursuant to Section 2.9.

 

“Investment” shall mean, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the form of loans (including guarantees), advances or capital contributions (excluding accounts receivable, trade credit, advances to customers, commission, travel and similar advances to officers and employees, in each case made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any other Person and investments that are required by GAAP to be classified on the balance sheet (excluding the footnotes) of such Person in the same manner as the other investments included in this definition to the extent such transactions involve the transfer of cash or other property; provided that Investments shall not include, in the case of Holdings, the Borrower and its Restricted Subsidiaries, intercompany loans (including guarantees), advances, or Indebtedness having a term not exceeding 364 days (inclusive of any roll-over or extensions of terms) and made in the ordinary course of business.

 

For purposes of the definition of “Unrestricted Subsidiary” and Section 10.5,

 

(1)          “Investments” shall include the portion (proportionate to Holdings’ equity interest in such Subsidiary) of the Fair Market Value of the net assets of a Subsidiary of Holdings at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided that upon a redesignation of such Subsidiary as a Restricted Subsidiary, Holdings shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to (x) Holdings’ aggregate “Investment” in such Subsidiary during the time it constituted an Unrestricted Subsidiary less (y) the portion (proportionate to Holdings’ equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation; and

 

(2)          any property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer.

 

The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced by any dividend, distribution, interest payment, return of capital, repayment or other amount received  in cash by Holdings or a Restricted Subsidiary in respect of such Investment.

 

“Investment Grade Rating” shall mean a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P or an equivalent rating by any other nationally recognized rating agency.

 

“Investment Grade Securities” shall mean:

 

(1)          securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (other than Cash Equivalents),

 

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(2)          debt securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments constituting loans or advances among Holdings and its Subsidiaries,

 

(3)          investments in any fund that invests at least 90% in investments of the type described in clauses (1) and (2), which fund may also hold immaterial amounts of cash pending investment or distribution, and

 

(4)          corresponding instruments in countries other than the United States customarily utilized for high-quality investments.

 

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

 

“Issuer Documents” shall mean, with respect to any Letter of Credit, the Letter of Credit Request and any other document, agreement or instrument entered into by the Letter of Credit Issuer and the Borrower (or any other Restricted Subsidiary or Holdings) or in favor of the Letter of Credit Issuer and relating to such Letter of Credit.

 

“Issuing Country” shall have the meaning provided in Section 13.21.

 

“Joinder Agreement” shall mean an agreement substantially in the form of Exhibit A.

 

“Joint Lead Arrangers and Bookrunners” shall mean Wells Fargo Securities, LLC, Citizens Bank, N.A., PNC Capital Markets LLC, National Association and SunTrust Robinson Humphrey, Inc.

 

“Judgment Currency” shall have the meaning provided in Section 13.19.

 

“Junior Debt” shall mean any (i) unsecured Indebtedness, (ii) Subordinated Indebtedness and (iii) Indebtedness secured by Liens on any or all of the Collateral that are junior to the Liens securing the Obligations (the Indebtedness referred to in this clause (iii) being referred to herein as “Junior Lien Debt”); provided that, for purposes of Section 10.5, Junior Debt shall exclude any permitted intercompany debt.

 

“Junior Lien Debt” shall have the meaning provided in the definition of Junior Debt.

 

“KKR” shall mean any of Kohlberg Kravis Roberts & Co. L.P. and KKR North America Fund XI L.P. and their respective Affiliates but excluding portfolio companies of any of the foregoing.

 

“Latest Term Loan Maturity Date” shall mean, at any date of determination, the latest maturity or expiration date applicable to any Term Loan hereunder at such time, including the latest maturity or expiration date of any New Term Loan or any Extended Term Loan, in each case as extended in accordance with this Agreement from time to time.

 

“L/C Borrowing” shall mean an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing. All L/C Borrowings shall be denominated in Dollars, Euro or any Alternative Currency in each case, as such currency shall correspond to the currency in which the applicable drawing was made, but subject to Section 3.4(a)(A).

 

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“L/C Facility Maturity Date” shall mean the date that is three Business Days prior to the Revolving Credit Maturity Date; provided that the L/C Facility Maturity Date may be extended beyond such date with the consent of the applicable Letter of Credit Issuer.

 

“L/C Obligations” shall mean, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unpaid Drawings, including all L/C Borrowings.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the International Standby Practices (ISP98), such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Stated Amount of such Letter of Credit in effect at such time.

 

“L/C Participant” shall have the meaning provided in Section 3.3(a).

 

“L/C Participation” shall have the meaning provided in Section 3.3(a).

 

“LCA Election” shall have the meaning provided in Section 1.12(b).

 

“LCA Test Date” shall have the meaning provided in Section 1.12(b).

 

“Lender” shall have the meaning provided in the preamble to this Agreement.

 

“Lender Default” shall mean (i) the refusal (which may be given verbally or in writing and has not been retracted) or failure of any Lender to make available its portion of any incurrence of Loans, which refusal or failure is not cured within one business day after the date of such refusal or failure (and unless the refusal or failure is due to the Lender believing that a condition precedent to the making of a Loan has not been satisfied), (ii) the failure of any Lender to pay over to the Administrative Agent, any Swingline Lender, any Letter of Credit Issuer or any other Lender any other amount required to be paid by it hereunder within one business day of the date when due, unless the subject of a good faith dispute, (iii) a Lender has notified the Borrower or the Administrative Agent that it does not intend to comply with its funding obligations under this Agreement (and unless such notice is due to the Lender believing that a condition precedent to such funding obligations has not been or will not be satisfied), or has stated publicly that it will generally not comply with its funding obligations under loan agreements, credit agreements and other similar agreements, (iv) a Lender has failed, within three Business Days after request by the Administrative Agent, to confirm that it will comply with its funding obligations under this Agreement or (v) a Lender has admitted in writing that it is insolvent or such Lender becomes subject to a Lender-Related Distress Event.

 

“Lender Presentation” shall mean the Lender Presentation of the Borrower dated November 2016.

 

“Lender-Related Distress Event” shall mean, with respect to any Lender (each, a “Distressed Person”), a voluntary or involuntary case with respect to such Distressed Person under any debt relief law, or a custodian, conservator, receiver or similar official is appointed for such Distressed Person or any substantial part of such Distressed Person’s assets, or such Distressed Person makes a general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any governmental authority having regulatory authority over such Distressed Person to be, insolvent or bankrupt or becomes the subject of a Bail-In Action; provided that a Lender-Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interests in any Lender or any

 

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person that directly or indirectly controls such Lender by a governmental authority or an instrumentality thereof.

 

“Letter of Credit” shall mean each letter of credit issued pursuant to Section 3.1.

 

“Letter of Credit Commitment” shall mean $25,000,000, as the same may be reduced from time to time pursuant to Section 3.1.

 

“Letter of Credit Expiration Date” shall mean the day that is three Business Days prior to the Revolving Credit Maturity Date set forth in clause (i) of the definition thereof, as such date may be extended by each Letter of Credit Issuer.

 

“Letter of Credit Exposure” shall mean, with respect to any Lender, at any time, the sum of (a) the Dollar Equivalent amount of the principal amount of any Unpaid Drawings in respect of which such Lender has made (or is required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.3(c) or 3.4(a) at such time and (b) such Lender’s Revolving Credit Commitment Percentage of the Letters of Credit Outstanding at such time (excluding the portion thereof consisting of Unpaid Drawings in respect of which the Lenders have made (or are required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.3(c) or 3.4(a)).

 

“Letter of Credit Fee” shall have the meaning provided in Section 4.1(b).

 

“Letter of Credit Issuer” shall mean (i) Wells Fargo Bank, National Association, (ii) any of its Affiliates or branches, (iii) Citizens Bank, N.A., (iv) PNC Bank, National Association, (v) SunTrust Bank and (vi) any replacement, additional issuer or successor pursuant to Section 3.6, provided that the aggregate principal amount of Letters of Credit (calculated on the face amount thereof) issued by SunTrust Bank shall not exceed 25% of the Letter of Credit Commitment.  Any Letter of Credit Issuer may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Letter of Credit Issuer, and in each such case the term “Letter of Credit Issuer” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. In the event that there is more than one Letter of Credit Issuer at any time, references herein and in the other Credit Documents to the Letter of Credit Issuer shall be deemed to refer to the Letter of Credit Issuer in respect of the applicable Letter of Credit or to all Letter of Credit Issuers, as the context requires.

 

“Letter of Credit Request” shall mean a notice executed and delivered by the Borrower pursuant to Section 3.2 and substantially in the form of Exhibit E or another form which is acceptable to the Letter of Credit Issuer in its reasonable discretion.

 

“Letters of Credit Outstanding” shall mean, at any time the sum of, without duplication, (a) the aggregate Stated Amount of all outstanding Letters of Credit and (b) the aggregate Dollar Equivalent amount of the principal amount of all Unpaid Drawings.

 

“Level I Status” shall mean, on any date, the circumstance that the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to 3.75 to 1.00 as of such date.

 

“Level II Status” shall mean, on any date, the circumstance that (i) Level I Status does not exist and (ii) the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to 3.00 to 1.00 as of such date.

 

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“Level III Status” shall mean, on any date, the circumstance that (i) neither Level I Status nor Level II Status exists and (ii) the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to 2.25 to 1.00 as of such date.

 

“Level IV Status” shall mean, on any date, the circumstance that (i) none of Level I Status, Level II Status or Level III Status exists and (ii) the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to 1.50 to 1.00 as of such date.

 

“Level V Status” shall mean, on any date, the circumstance that the Consolidated Total Debt to Consolidated EBITDA Ratio is less than 1.50 to 1.00 as of such date.

 

“LIBOR Loan” shall mean any Loan bearing interest at a rate determined by reference to the Adjusted LIBOR Rate.

 

“LIBOR Rate” shall mean, for any Interest Period with respect to a LIBOR Loan of any currency, the rate per annum equal to the London interbank offered rate as administered by ICE Benchmark Association (or the successor thereto if the ICE Benchmark Association is no longer administering such rate), as published by Bloomberg (or other commercially available source providing quotations of LIBOR Rate as designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in such currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, provided that notwithstanding the foregoing, in no event shall the LIBOR Rate at any time be less than 0.00% per annum.  If such rate is not available at such time for any reason, then the “LIBOR Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in such currency for delivery on the first day of such Interest Period in same day funds in the approximate amount of the LIBOR Loan being made, continued or converted by the Administrative Agent and with a term equivalent to such Interest Period would be offered by the Administrative Agent’s London Branch to major banks in the applicable London interbank eurocurrency market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period.

 

“Lien” shall mean with respect to any asset, any mortgage, lien, pledge, hypothecation, charge, security interest, preference, priority or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in, and any filing of, or agreement to give, any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction; provided that in no event shall an operating lease or a license, sub-license or cross-license to Intellectual Property be deemed to constitute a Lien.

 

“Limited Condition Acquisition” shall mean any acquisition by one or more of Holdings, the Borrower and their respective Restricted Subsidiaries of any assets, business or Person permitted to be acquired by this Agreement, in each case, whose consummation is not conditioned on the availability of, or on obtaining, third party financing.

 

“Loan” shall mean any Revolving Loan, Swingline Loan, Term Loan or any other loan made by any Lender pursuant to this Agreement.

 

“Managing Agents” shall mean Fifth Third Bank and Sumitomo Mitsui Banking Corporation.

 

“Mandatory Borrowing” shall have the meaning provided in Section 2.1(d).

 

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“Master Agreement” shall have the meaning provided in the definition of the term “Hedge Agreements”.

 

“Material Adverse Effect” shall mean a circumstance or condition affecting the business, assets, operations, properties or financial condition of Holdings and its Subsidiaries, taken as a whole, that would, individually or in the aggregate, materially adversely affect (a) the ability of Holdings and the other Credit Parties, taken as a whole, to perform their payment obligations under this Agreement or any of the other Credit Documents or (b) the rights and remedies of the Administrative Agent and the Lenders under this Agreement or any of the other Credit Documents.

 

“Material Subsidiary” shall mean, at any date of determination each Restricted Subsidiary of Holdings (a) whose total assets at the last day of the Test Period ending on the last day of the most recent fiscal period for which Section 9.1 Financials have been delivered were equal to or greater than 5.0% of the Consolidated Total Assets of Holdings and the Restricted Subsidiaries at such date or (b) whose revenues during such Test Period were equal to or greater than 5.0% of the consolidated revenues of Holdings and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP; provided that if, at any time and from time to time after the Closing Date, Restricted Subsidiaries that are not Material Subsidiaries have, in the aggregate, (x) total assets at the last day of such Test Period equal to or greater than 7.5% of the Consolidated Total Assets of Holdings and the Restricted Subsidiaries at such date or (y) revenues during such Test Period equal to or greater than 7.5% of the consolidated revenues of Holdings and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP, then Holdings shall, on the date on which financial statements for such quarter are delivered pursuant to this Agreement, designate in writing to the Administrative Agent one or more of such Restricted Subsidiaries as “Material Subsidiaries” for each fiscal period until this proviso is no longer applicable.

 

“Maturity Date” shall mean the Revolving Credit Maturity Date, any Extended Revolving Loan Maturity Date, any Incremental Revolving Credit Maturity Date, the Initial Term Loan Maturity Date, any New Term Loan Maturity Date or the maturity date of an Extended Term Loan, as applicable.

 

“Maximum Incremental Facilities Amount” shall mean, at any date of determination, (a) the sum of (i) $275,000,000 and (ii) the aggregate amount of voluntary prepayments of Term Loans and, to the extent accompanied by permanent reductions of Revolving Credit Commitments, Revolving Loans (including purchases of the Loans by Holdings and its Subsidiaries at or below par, in which case the amount of voluntary prepayments of Loans shall be deemed not to exceed the actual purchase price of such Loans below par) in each case, other than from proceeds of the incurrence of long-term Indebtedness, plus (b) an amount such that, after giving effect to the incurrence of such amount, Holdings would be in compliance on a Pro Forma Basis (including any adjustments required by such definition as a result of a contemplated Permitted Acquisition, but excluding any concurrent incurrence of Indebtedness pursuant to clause (a) above or the Revolving Credit Facility) with the First Lien Secured Leverage Test (assuming that all Indebtedness incurred pursuant to Section 2.14(a) or Section 10.1(w)(i) on such date of determination would be included in the definition of Consolidated First Lien Secured Debt, whether or not such Indebtedness would otherwise be so included and including in Consolidated First Lien Secured Debt the full amount of any Additional Revolving Credit Commitments and New Revolving Credit Commitments being extended, whether or not drawn), minus (c) the sum of (i) the aggregate principal amount of New Loan Commitments incurred pursuant to Section 2.14(a) in reliance on clause (a) of this definition prior to such date (or, for purposes of calculating any amounts referred to clause (ii), on or prior to such date) and (ii) the aggregate principal amount of Permitted Other Indebtedness issued or incurred (including any unused commitments obtained) pursuant to Section 10.1(w)(i) in reliance on clause (a) of this definition prior to such date (or, for purposes of calculating any amounts referred to in clause (i), on

 

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or prior to such date) and (without duplication) any Refinancing of any such amount issued or incurred (including any unused commitments obtained) pursuant to Section 10.1(w)(i) in reliance on clause (a) of this definition pursuant to Section  10.1(w)(ii).

 

“Minimum Borrowing Amount” shall mean with respect to a Borrowing, $2,500,000.

 

“Minimum Collateral Amount” shall mean, at any time, (a) with respect to Cash Collateral provided to reduce or eliminate Fronting Exposure during the existence of a Lender Default, an amount equal to 101% of the Fronting Exposure of the Letter of Credit Issuer with respect to Letters of Credit issued and outstanding at such time and (b) with respect to Cash Collateral provided in accordance with the provisions of Section 3.8 an amount equal to 101% of the outstanding amount of all L/C Obligations.

 

“Minimum Tender Condition” shall have the meaning provided in Section 2.15(b).

 

“Moody’s” shall mean Moody’s Investors Service, Inc. or any successor by merger or consolidation to its business.

 

“Mortgage” shall mean a mortgage, deed of trust, deed to secure debt, trust deed or other security document entered into by the owner of a Mortgaged Property and the Collateral Agent for the benefit of the Secured Parties in respect of that Mortgaged Property to secure the Obligations, in form and substance reasonably acceptable to the Collateral Agent and the Borrower, together with such terms and provisions as may be required by local laws.

 

“Mortgaged Property” shall mean, initially, each parcel of real estate and the improvements thereto owned in fee by a Credit Party and identified on Schedule 1.1(b) and each other parcel of real property and improvements thereto with respect to which a Mortgage is granted pursuant to Section 9.14.

 

“Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Credit Party or ERISA Affiliate makes or is obligated to make contributions, or during the five preceding calendar years, has made or been obligated to make contributions.

 

“Net Cash Proceeds” shall mean, with respect to any Prepayment Event and any incurrence of Permitted Other Indebtedness, (a) the gross cash proceeds (including payments from time to time in respect of installment obligations, if applicable, but only as and when received) received by or on behalf of Holdings or any of the Restricted Subsidiaries in respect of such Prepayment Event or incurrence of Permitted Other Indebtedness, as the case may be, less (b) the sum of (without duplication):

 

(i)                                     the amount, if any, of all taxes (including in connection with any repatriation of funds) paid or estimated to be payable by Holdings or any of the Restricted Subsidiaries in connection with such Prepayment Event or incurrence of Permitted Other Indebtedness,

 

(ii)                                  in the case of any Asset Sale Prepayment Event, Permitted Sale Leaseback or Casualty Event, the amount of any reasonable reserve established in accordance with GAAP against any liabilities (other than any taxes deducted pursuant to clause (i) above) (x) associated with the assets that are the subject of such Prepayment Event and (y) retained by Holdings or any of the Restricted Subsidiaries; provided that the amount of any subsequent reduction of such reserve (other than in connection with a payment in respect of any such liability) shall be deemed to be Net Cash Proceeds of such a Prepayment Event occurring on the date of such reduction,

 

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(iii)                               in the case of any Asset Sale Prepayment Event, Casualty Event or Permitted Sale Leaseback, the amount of any Indebtedness (other than the Loans and Permitted Other Indebtedness) secured by a Lien on the assets that are the subject of such Prepayment Event to the extent that the instrument creating or evidencing such Indebtedness requires that such Indebtedness be repaid upon consummation of such Prepayment Event,

 

(iv)                              in the case of any Asset Sale Prepayment Event or Casualty Event or Permitted Sale Leaseback, the amount of any proceeds of such Prepayment Event that Holdings or any Restricted Subsidiary has reinvested (or intends to reinvest within the Reinvestment Period or has entered into a binding commitment prior to the last day of the Reinvestment Period to reinvest) in the business of Holdings or any of the Restricted Subsidiaries; provided that any portion of such proceeds that has not been so reinvested within such Reinvestment Period (with respect to such Prepayment Event, the “Deferred Net Cash Proceeds”) shall, unless Holdings or a Restricted Subsidiary has entered into a binding commitment prior to the last day of such Reinvestment Period to reinvest such proceeds no later than 180 days following the last day of such Reinvestment Period, (x) be deemed to be Net Cash Proceeds of an Asset Sale Prepayment Event, Casualty Event or Permitted Sale Leaseback occurring on the last day of such Reinvestment Period or, if later, 180 days after the date Holdings or such Restricted Subsidiary has entered into such binding commitment, as applicable (such last day or 180th day, as applicable, the “Deferred Net Cash Proceeds Payment Date”) and (y) be applied to the repayment of Term Loans in accordance with Section 5.2(a)(i);

 

(v)                                 in the case of any Asset Sale Prepayment Event, Casualty Event or Permitted Sale Leaseback by a non-Wholly-Owned Restricted Subsidiary, the pro rata portion of the Net Cash Proceeds thereof (calculated without regard to this clause (v)) attributable to non-controlling interests and not available for distribution to or for the account of Holdings or a Wholly-Owned Restricted Subsidiary as a result thereof;

 

(vi)                              in the case of any Asset Sale Prepayment Event or Permitted Sale Leaseback, any funded escrow established pursuant to the documents evidencing any such sale or disposition to secure any indemnification obligations or adjustments to the purchase price associated with any such sale or disposition; provided that the amount of any subsequent reduction of such escrow (other than in connection with a payment in respect of any such liability) shall be deemed to be Net Cash Proceeds of such a Prepayment Event occurring on the date of such reduction solely to the extent that Holdings and/or any Restricted Subsidiaries receives cash in an amount equal to the amount of such reduction; and

 

(vii)                           all fees and out-of-pocket expenses paid by Holdings or a Restricted Subsidiary in connection with any of the foregoing (for the avoidance of doubt, including, (i) in the case of the issuance of Permitted Other Indebtedness, any fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such issuance and (ii) attorney’s fees, investment banking fees, survey costs, title insurance premiums and related search and recording charges, transfer taxes, deed or mortgage recording taxes, underwriting discounts and commissions, other customary expenses and brokerage, consultant, accountant and other customary fees),

 

in each case, only to the extent not already deducted in arriving at the amount referred to in clause (a) above.

 

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“Net Income” shall mean, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction in respect of preferred stock dividends.

 

“New Loan Commitments” shall have the meaning provided in Section 2.14(a).

 

“New Revolving Credit Commitments” shall have the meaning provided in Section 2.14(a).

 

“New Revolving Credit Loan” shall have the meaning provided in Section 2.14(b).

 

“New Revolving Loan Lender” shall have the meaning provided in Section 2.14(b).

 

“New Revolving Loan Repayment Amount” shall have the meaning provided in Section 2.5(c).

 

“New Revolving Loan Repayment Date” shall have the meaning provided in Section 2.5(c).

 

“New Term Loan” shall have the meaning provided in Section 2.14(c).

 

“New Term Loan Commitments” shall have the meaning provided in Section 2.14(a).

 

“New Term Loan Lender” shall have the meaning provided in Section 2.14(c).

 

“New Term Loan Maturity Date” shall mean the date on which a New Term Loan matures.

 

“New Term Loan Repayment Amount” shall have the meaning provided in Section 2.5(c).

 

“New Term Loan Repayment Date” shall have the meaning provided in Section 2.5(c).

 

“Non-Consenting Lender” shall have the meaning provided in Section 13.7(b).

 

“Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting Lender.

 

“Non-Defaulting Revolving Credit Lender” shall mean and include each Revolving Credit Lender other than a Defaulting Lender.

 

“Non-Extension Notice Date” shall have the meaning provided in Section 3.2(d).

 

“Non-U.S. Lender” shall mean any Lender that is not a “United States person” as defined by Section 7701(a)(30) of the Code.

 

“Notice of Borrowing” shall have the meaning provided in Section 2.3(a).

 

“Notice of Conversion or Continuation” shall have the meaning provided in Section 2.6(a).

 

“Obligations” shall mean all advances to, and debts, liabilities, obligations, covenants and duties of, any Credit Party arising under any Credit Document or otherwise with respect to any Revolving Credit Commitment, Loan or Letter of Credit or under any Secured Cash Management Agreement or Secured Hedge Agreement (other than with respect to any Credit Party’s obligations that constitute Excluded Swap Obligations solely with respect to such Credit Party), in each case, entered into with Holdings or any of its Restricted Subsidiaries, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Credit Party or any Affiliate thereof of any

 

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proceeding under any bankruptcy or insolvency law naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.  Without limiting the generality of the foregoing, the Obligations of the Credit Parties under the Credit Documents (and any of their Subsidiaries to the extent they have obligations under the Credit Documents) include the obligation (including guarantee obligations) to pay principal, interest, charges, expenses, fees, attorney costs, indemnities and other amounts payable by any Credit Party under any Credit Document.

 

“OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Assets Control.

 

“Other Taxes” shall mean all present or future stamp, registration or documentary Taxes or any other similar excise, property, intangible, or mortgage recording Taxes, charges or levies arising from any payment made hereunder or under any other Credit Document or from the execution, delivery, or enforcement of, or otherwise with respect to, this Agreement or any other Credit Document; provided that such term shall not include (i) any Taxes that result from an assignment, grant of a participation pursuant to Section 13.6(c) or transfer or assignment to or designation of a new lending office or other office for receiving payments under any Credit Document (“Assignment Taxes”) to the extent such Assignment Taxes are imposed as a result of a connection between the assignor/participating Lender and/or the assignee/Participant and the taxing jurisdiction (other than a connection arising from 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 Credit Document, or sold or assigned an interest in any Loan or Credit Document), except to the extent that any such action described in this proviso is requested or required by the Borrower or Holdings or (ii) Excluded Taxes.

 

“Overnight Rate” shall mean, for any day, (a) with respect to any amount denominated in Dollars, the greater of (i) the Federal Funds Effective Rate and (ii) an overnight rate determined by the Administrative Agent, the Letter of Credit Issuer or the Swingline Lender, as the case may be, in accordance with banking industry rules on interbank compensation and (b) with respect to any amount denominated in Euro or any Alternative Currency, the rate of interest per annum at which overnight deposits in Euro or such Alternative Currency, as applicable, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of the Administrative Agent in the applicable offshore interbank market for Euro or such Alternative Currency to major banks in such interbank market.

 

“Parent Entity” shall mean any Person that is a direct or indirect parent company (which may be organized as, among other things, a partnership), including any managing member, of Holdings and/or the Borrower.

 

“Participant” shall have the meaning provided in Section 13.6(c)(i).

 

“Participant Register” shall have the meaning provided in Section 13.6(c)(ii).

 

“Participating Member State” shall mean any member state of the European Union that adopts or has adopted the Euro as its lawful currency in accordance with legislation of the European Union relating to economic and monetary union.

 

“PATRIOT Act” shall have the meaning provided in Section 13.18.

 

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

 

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“Pension Plan” shall mean any “employee pension benefit plan” (as defined in Section 3(2) of ERISA, but excluding any Multiemployer Plan) that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code, in respect of which any Credit Party or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4062 or Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Permitted Acquisition” shall have the meaning provided in clause (d) of the definition of the term “Permitted Investments”.

 

“Permitted Asset Swap” shall mean the concurrent purchase and sale or exchange of Related Business Assets or a combination of Related Business Assets and cash or Cash Equivalents between Holdings or a Restricted Subsidiary and another Person; provided that any cash or Cash Equivalents received must be applied in accordance with Section 10.4.

 

“Permitted Debt Exchange” shall have the meaning provided in Section 2.15(a).

 

“Permitted Debt Exchange Notes” shall have the meaning provided in Section 2.15(a)..

 

“Permitted Debt Exchange Offer” shall have the meaning provided in Section 2.15(a).

 

“Permitted Holders” shall mean each of the Initial Investors and their respective Affiliates (other than any portfolio company of an Initial Investor) and members of management of Holdings or the Borrower (or their respective direct or indirect parent or management investment vehicle) who are holders of Equity Interests of Holdings (or its direct or indirect parent company or management investment vehicle) on the Closing Date and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act or any successor provision) of which any of the foregoing are members; provided that, in the case of such group and without giving effect to the existence of such group or any other group, such Initial Investors, their respective Affiliates and members of management, collectively, have beneficial ownership of more than 50% of the total voting power of the Voting Stock of Holdings or any other direct or indirect Parent Entity.

 

“Permitted Investments” shall mean:

 

(a)                                 any Investment in any Credit Party;

 

(b)                                 any Investment by any Credit Party in Restricted Subsidiaries that, after giving effect to such Investments, are not Credit Parties (including, without limitation, guarantee obligations in respect of obligations of any such Restricted Subsidiary, loans made to such Restricted Subsidiary and Investments resulting from mergers with or sales or other dispositions of assets to any such Restricted Subsidiary) in an aggregate amount, together with all dispositions not constituting Asset Sales pursuant to clause (e)(2) of the definition thereof and the aggregate outstanding principal amount of all Indebtedness incurred pursuant to Section 10.1(r), equal to the sum of (a) an aggregate amount not to exceed the greater of $55,000,000 and 20% of Consolidated EBITDA for the most recently ended Test Period plus (b) unlimited additional amounts, provided that, after giving effect to thereto (1) the Fixed Charge Coverage Ratio is equal to or greater than 3.00:1.00 and (2) the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than 3.75:1.00.

 

(c)                               any Investment in cash, Cash Equivalents or Investment Grade Securities at the time such Investment is made;

 

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(d)                               any Investment by Holdings or any Restricted Subsidiary in a Person that is engaged in a Similar Business if, as a result of such Investment (a “Permitted Acquisition”), (a) (1) such Person becomes a Restricted Subsidiary or (2) such Person, in one transaction or a series of related transactions, is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, Holdings or a Restricted Subsidiary and, in each case, any Investment held by such Person; provided that such Investment was not acquired by such Person in contemplation of such acquisition, merger, consolidation or transfer and (b) after giving Pro Forma Effect to such Investment, (x) the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than the Consolidated Total Debt to Consolidated EBITDA Ratio that is 0.25:1.00 lower than the maximum Consolidated Total Debt to Consolidated EBITDA Ratio permitted under Section 10.7 and (y) the Fixed Charge Coverage Ratio would be equal to or greater than 3.00:1.00; provided that any Permitted Acquisitions in Persons that are not Credit Parties after giving Pro Forma Effect to such Permitted Acquisition shall not exceed the sum of (1) an aggregate amount not to exceed the greater of $55,000,000 and 20% of Consolidated EBITDA and (2) unlimited additional amounts, provided that, after giving Pro Forma Effect to such Permitted Acquisition, (x) the Fixed Charge Coverage Ratio would be equal to or greater than 3.00:1.00 and (y) the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than 3.75:1.00;

 

(e)                               any Investment in securities or other assets not constituting cash, Cash Equivalents or Investment Grade Securities and received in connection with an Asset Sale made pursuant to Section 10.4 or any other disposition of assets not constituting an Asset Sale;

 

(f)                              (a) any Investment existing or contemplated on the Closing Date and, in each case, listed on Schedule 10.5 and (b) Investments consisting of any modification, replacement, renewal, reinvestment or extension of any such Investment; provided that the amount of any such Investment is not increased from the amount of such Investment on the Closing Date except pursuant to the terms of such Investment (including in respect of any unused commitment);

 

(g)                                any Investment acquired by Holdings or any Restricted Subsidiary (a) in exchange for any other Investment or accounts receivable held by Holdings or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of Holdings of such other Investment or accounts receivable or (b) as a result of a foreclosure by Holdings or any Restricted Subsidiary with respect to any secured Investment or other transfer of title with respect to any secured Investment in default;

 

(h)                               Hedging Obligations permitted under Section 10.1(j) and Cash Management Services;

 

(i)                                any Investment in a Similar Business having an aggregate Fair Market Value, taken together with all other Investments made pursuant to this clause (i) that are at that time outstanding, not to exceed the greater of (x) $55,000,000 and (y) 20% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Investment (with the Fair Market Value of each Investment being measured at the time made and without giving effect to subsequent changes in value); provided, however, that if any Investment pursuant to this clause (i) is made in any Person that is not a Restricted Subsidiary of Holdings at the date of the making of such Investment and such Person becomes a Restricted Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (a) or (b) above (as applicable) (but subject, in the case of clause (b), to the cap  set forth therein) and

 

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shall cease to have been made pursuant to this clause (i) for so long as such Person continues to be a Restricted Subsidiary;

 

(j)                               Investments the payment for which consists of Equity Interests of Holdings or any direct or indirect parent company of Holdings (exclusive of Disqualified Stock); provided that such Equity Interests will not increase the amount available for Restricted Payments under clause (3) of Section 10.5(a);

 

(k)                               guarantees of Indebtedness permitted under Section 10.1;

 

(l)                                Investments consisting of purchases and acquisitions of inventory, supplies, material, equipment or other similar assets in the ordinary course of business;

 

(m)                              additional Investments having an aggregate Fair Market Value, taken together with all other Investments made pursuant to this clause (m) that are at that time outstanding (without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of cash or marketable securities), not to exceed the greater of (x) $90,000,000 and (y) 30% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Investment (with the Fair Market Value of each Investment being measured at the time made and without giving effect to subsequent changes in value); provided, however, that if any Investment pursuant to this clause (m) is made in any Person that is not a Restricted Subsidiary at the date of the making of such Investment and such Person becomes a Restricted Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (a) or clause (b) above (as applicable) (but subject, in the case of clause (b), to any applicable cap  set forth therein) and shall cease to have been made pursuant to this clause (m) for so long as such Person continues to be a Restricted Subsidiary;

 

(n)                               Investments relating to any Receivables Subsidiary that, in the good faith determination of the board of directors of Holdings, are necessary or advisable to effect a Receivables Facility or any repurchases in connection therewith;

 

(o)                               advances to, or guarantees of Indebtedness of, employees not in excess of the greater of (x) $10,000,000 and (y) 3.5% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Investment;

 

(p)                               (x) loans and advances to officers, directors, managers and employees for business-related travel expenses, moving expenses and other similar expenses, in each case, incurred in the ordinary course of business or consistent with past practices or to fund such Person’s purchase of Equity Interests of Holdings or any direct or indirect parent company thereof and (y) promissory notes received from stockholders of Holdings, any direct or indirect parent company of Holdings or any Subsidiary in connection with the exercise of stock options in respect of the Equity Interests of Holdings, any direct or indirect parent company of Holdings and the Subsidiaries;

 

(q)                               Investments consisting of extensions of trade credit in the ordinary course of business;

 

(r)                               Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection or deposit and Uniform Commercial Code Article 4 customary trade arrangements with customers consistent with past practices;

 

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(s)                               non-cash Investments in connection with tax planning and reorganization activities; provided that after giving effect to any such activities, the security interests of the Lenders in the Collateral, taken as a whole, would not be materially impaired;

 

(t)                               the licensing and contribution of Intellectual Property pursuant to joint development, venture or marketing arrangements with other Persons, in the ordinary course of business;

 

(u)                               contributions to a “rabbi” trust for the benefit of employees, directors, consultants, independent contractors or other service providers or other grantor trust subject to claims of creditors in the case of a bankruptcy of the Borrower; and

 

(v)                               Investments by an Unrestricted Subsidiary entered into prior to the day such Unrestricted Subsidiary is redesignated as a Restricted Subsidiary pursuant to the definition of “Unrestricted Subsidiary”.

 

“Permitted Liens” shall mean, with respect to any Person:

 

(1)                                 pledges or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or U.S. government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment of rent, in each case incurred in the ordinary course of business;

 

(2)                                 Liens imposed by law, such as carriers’, warehousemen’s, materialmen’s, repairmen’s and mechanics’ Liens, in each case for sums not yet overdue for a period of more than 30 days or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review if adequate reserves with respect thereto are maintained on the books of such Person in accordance with GAAP;

 

(3)                                 Liens for taxes, assessments or other governmental charges not yet overdue for a period of more than 30 days or which are being contested in good faith by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of such Person in accordance with GAAP, or for property taxes on property Holdings or one of its Subsidiaries has determined to abandon if the sole recourse for such tax, assessment, charge, levy or claim is to such property;

 

(4)                               Liens in favor of issuers of performance, surety, bid, indemnity, warranty, release, appeal or similar bonds or with respect to other regulatory requirements or letters of credit or bankers’ acceptances issued, and completion guarantees provided for, in each case pursuant to the request of and for the account of such Person in the ordinary course of its business;

 

(5)                               minor survey exceptions, minor encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights-of-way, servitudes, sewers, electric lines, drains, telegraph and telephone and cable television lines, gas and oil pipelines and other similar purposes, or zoning, building codes or other restrictions (including, without limitation, minor

 

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defects or irregularities in title and similar encumbrances) as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which were not incurred in connection with Indebtedness and which do not, in the aggregate, materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

 

(6)                               Liens securing Indebtedness permitted to be outstanding pursuant to Section 10.1(d), (r), (w) or (x); provided that, (i) in the case of Section 10.1(d) such Lien may not extend to any property or equipment (or assets affixed or appurtenant thereto) other than the property or equipment being financed or refinanced under Section 10.1(d), replacements of such property, equipment or assets and additions and accessions and in the case of multiple financings of equipment provided by any lender, other equipment financed by such lender; (ii) in the case of Section 10.1(r), such Lien may not extend to any assets other than the assets owned by non-Credit Parties; (iii) in the case of Liens securing Permitted Other Indebtedness Obligations or Permitted Debt Exchange Notes that constitute First Lien Obligations, the applicable Permitted Other Indebtedness Secured Parties (or a representative thereof on behalf of such holders) shall enter into security documents with terms and conditions not materially more restrictive to the Credit Parties, taken as a whole, than the terms and conditions of the Security Documents and (x) in the case of the first such issuance of Permitted Other Indebtedness constituting First Lien Obligations, the Collateral Agent, the Administrative Agent and the representative for the holders of such Permitted Other Indebtedness Obligations shall have entered into the First Lien Intercreditor Agreement (and, if then in effect, shall have become a party to the Second Lien Intercreditor Agreement in accordance with the terms thereof) and (y) in the case of subsequent issuances of Permitted Other Indebtedness constituting First Lien Obligations, the representative for the holders of such Permitted Other Indebtedness Obligations shall have become a party to the First Lien Intercreditor Agreement in accordance with the terms thereof  (and, if then in effect, shall have become a party to the Second Lien Intercreditor Agreement in accordance with the terms thereof); and (iv) in the case of Liens securing Permitted Other Indebtedness Obligations or Permitted Debt Exchange Notes that do not constitute First Lien Obligations, the applicable Permitted Other Indebtedness Secured Parties (or a representative thereof on behalf of such holders) shall enter into security documents with terms and conditions not materially more restrictive to the Credit Parties, taken as a whole, than the terms and conditions of the Security Documents and shall (x) in the case of the first such issuance of Permitted Other Indebtedness that do not constitute First Lien Obligations, the Collateral Agent, the Administrative Agent and the representative of the holders of such Permitted Other Indebtedness Obligations shall have entered into the Second Lien Intercreditor Agreement and (y) in the case of subsequent issuances of Permitted Other Indebtedness that do not constitute First Lien Obligations, the representative for the holders of such Permitted Other Indebtedness shall have become a party to the Second Lien Intercreditor Agreement in accordance with the terms thereof (it being understood that without any further consent of the Lenders, the Administrative Agent and the Collateral Agent shall be authorized to execute and deliver on behalf of the Secured Parties the First Lien Intercreditor Agreement and the Second Lien Intercreditor Agreement contemplated by this clause (6));

 

(7)                               Liens existing on the Closing Date; provided that any Lien securing Indebtedness or other obligations in excess of (A) $5,000,000 individually or (B) $15,000,000 in the aggregate (when taken together with all other Liens securing obligations outstanding in reliance on this clause (7) that are not listed on Schedule 10.2) shall only be permitted if set forth on Schedule 10.2 and, in each case, any modifications, replacements, renewals or extensions thereof;

 

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(8)                               Liens on property or shares of stock of a Person at the time such Person becomes a Subsidiary; provided such Liens are not created or incurred in connection with, or in contemplation of, such Person becoming a Subsidiary; provided, further, however, that such Liens may not extend to any other property owned by Holdings or any Restricted Subsidiary (other than, with respect to such Person, any replacements of such property or assets and additions and accessions thereto, after-acquired property subject to a Lien securing Indebtedness and other obligations incurred prior to such time and which Indebtedness and other obligations are permitted hereunder that require, pursuant to their terms at such time, a pledge of after-acquired property of such Person and the proceeds and the products thereof, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition, and in the case of multiple financings of equipment provided by any lender, other equipment financed by such lender);

 

(9)                               Liens on property at the time Holdings or a Restricted Subsidiary acquired the property, including any acquisition by means of a merger or consolidation with or into Holdings or any Restricted Subsidiary or, other than with respect to Liens securing Indebtedness, the designation of an Unrestricted Subsidiary as a Restricted Subsidiary; provided that such Liens are not created or incurred in connection with, or in contemplation of, such acquisition, merger or consolidation or designation; provided, further, however, that such Liens may not extend to any other property owned by Holdings or any Restricted Subsidiary (other than, with respect to such property, any replacements of such property or assets and additions and accessions thereto, after-acquired property subject to a Lien securing Indebtedness and other obligations incurred prior to such time and which Indebtedness and other obligations are permitted hereunder that require, pursuant to their terms at such time, a pledge of after-acquired property and the proceeds and the products thereof, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition, and in the case of multiple financings of equipment provided by any lender, other equipment financed by such lender);

 

(10)                          Liens on property of any Restricted Subsidiary that is not a Credit Party, which Liens secure Indebtedness of such Restricted Subsidiary or another Restricted Subsidiary that is not a Credit Party, in each case, to the extent permitted under Section 10.1;

 

(11)                              Liens on cash and Cash Equivalents securing Hedging Obligations permitted by Section 10.1(j) and Cash Management Services so long as the related Indebtedness is, and is permitted hereunder to be, secured by a Lien on the same property securing such Hedging Obligations and Cash Management Services; provided that the aggregate obligations secured by Liens pursuant to this clause (11) shall not exceed $5,000,000;

 

(12)                              Liens on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 

(13)                              leases, subleases, licenses or sublicenses (including of Intellectual Property) granted to others in the ordinary course of business which do not materially interfere with the ordinary conduct of the business of Holdings and its Restricted Subsidiaries taken as a whole and do not secure any Indebtedness;

 

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(14)                              Liens arising from Uniform Commercial Code financing statement filings regarding operating leases or consignments entered into by Holdings or any Restricted Subsidiary in the ordinary course of business;

 

(15)                              Liens granted by any Restricted Subsidiary that is not a Credit Party in favor of Holdings, the Borrower or any other Guarantor;

 

(16)                              Liens on equipment of Holdings or any Restricted Subsidiary granted in the ordinary course of business to Holdings’ or such Restricted Subsidiary’s client at which such equipment is located;

 

(17)                              Liens on accounts receivable and related assets incurred in connection with a Receivables Facility;

 

(18)                              Liens to secure any refinancing, refunding, extension, renewal or replacement (or successive refinancing, refunding, extensions, renewals or replacements) as a whole, or in part, of any Indebtedness secured by any Lien referred to in clauses (6), (7), (8) or (9) of this definition of Permitted Liens; provided that (x) such new Lien shall be limited to all or part of the same property that secured the original Indebtedness (plus improvements on such property) and (y) the Indebtedness secured by such Lien at such time is not increased to any amount greater than the sum of (A) the outstanding principal amount or, if greater, the committed amount of the Indebtedness described under clauses (6), (7), (8) or (9) at the time the original Lien became a Permitted Lien under this Agreement and (B) an amount necessary to pay any fees and expenses, including premiums and accrued and unpaid interest, related to such refinancing, refunding, extension, renewal or replacement;

 

(19)                              deposits made or other security provided to secure liabilities to insurance carriers under insurance or self-insurance arrangements in the ordinary course of business;

 

(20)                              other Liens securing obligations (including Capitalized Lease Obligations) which do not exceed the greater of (x) $75,000,000 and (y) 25% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of the incurrence of such Lien, provided that, at the election of the Borrower with respect to Liens securing Indebtedness for borrowed money, such Liens on any or all of the Collateral are subject to the First Lien Intercreditor Agreement (and, if then in effect, the Second Lien Intercreditor Agreement);

 

(21)                              Liens securing judgments for the payment of money not constituting an Event of Default under Section 11.1(k);

 

(22)                              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;

 

(23)                              Liens (i) of a collection bank arising under Section 4-208 of the Uniform Commercial Code or any comparable or successor provision on items in the course of collection, (ii) attaching to commodity trading accounts or other commodity brokerage accounts incurred in the ordinary course of business and (iii) in favor of banking or other financial institutions or other electronic payment service providers arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking or finance industry;

 

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(24)                              Liens deemed to exist in connection with Investments in repurchase agreements permitted under Section 10.1; provided that such Liens do not extend to any assets other than those that are the subject of such repurchase agreement;

 

(25)                              Liens encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business and not for speculative purposes;

 

(26)                              Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with banks not given in connection with the issuance or incurrence of Indebtedness, (ii) relating to pooled deposit or sweep accounts of Holdings or any of its Restricted Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of Holdings and its Restricted Subsidiaries or (iii) relating to purchase orders and other agreements entered into with customers of Holdings or any of its Restricted Subsidiaries in the ordinary course of business;

 

(27)                              Liens (i) solely on any cash earnest money deposits made by Holdings or any of the Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted under this Agreement or (ii) consisting of an agreement to dispose of any property pursuant to a Disposition permitted hereunder;

 

(28)                              the rights reserved or vested in any Person by the terms of any lease, license, franchise, grant or permit held by Holdings or any of its Restricted Subsidiaries or by a statutory provision, to terminate any such lease, license, franchise, grant or permit or to require annual or periodic payments as a condition to the continuance thereof;

 

(29)                              restrictive covenants affecting the use to which real property may be put, provided that the covenants are complied with;

 

(30)                              security given to a public utility or any municipality or governmental authority when required by such utility or authority in connection with the operations of that Person in the ordinary course of business;

 

(31)                              zoning by-laws and other land use restrictions, including, without limitation, site plan agreements, development agreements and contract zoning agreements;

 

(32)                              Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by Holdings or any Restricted Subsidiary in the ordinary course of business;

 

(33)                              any Lien granted pursuant to a security agreement between Holdings or any Restricted Subsidiary and a licensee of their Intellectual Property to secure the damages, if any, of such licensee resulting from the rejection by Holdings or such Restricted Subsidiary of such licensee in a bankruptcy, reorganization or similar proceeding with respect to Holdings or such Restricted Subsidiary; provided that such Liens, in the aggregate, do not encumber any assets of Holdings or any Restricted Subsidiary other than the assets subject to such license;

 

(34)                              Liens on goods purchased in the ordinary course of business, the purchase price of which is financed by a documentary letter of credit issued for the account of Holdings or any of its Subsidiaries, in favor of the provider of such letter of credit;

 

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(35)                              (a) Liens on Equity Interests in joint ventures; provided that any such Lien is in favor of a creditor of such joint venture and such creditor is not an Affiliate of any partner to such joint venture and (b) purchase options, calls and similar rights of, and restrictions for the benefit of, a third party with respect to Equity Interests held by Holdings or any Restricted Subsidiary in joint ventures;

 

(36)                              Liens on cash and Cash Equivalents that are earmarked to be used to satisfy or discharge Indebtedness; provided (x) such cash and/or Cash Equivalents are deposited into an account from which payment is to be made, directly or indirectly, to the Person or Persons holding the Indebtedness that is to be satisfied or discharged, (y) such Liens extend solely to the account in which such cash and/or Cash Equivalents are deposited and are solely in favor of the Person or Persons holding the Indebtedness (or any agent or trustee for such Person or Persons) that is to be satisfied or discharged and (z) the satisfaction or discharge of such Indebtedness is expressly permitted hereunder;

 

(37)                              with respect to any Foreign Subsidiary, other Liens arising mandatorily by any Requirements of Law applicable thereto;

 

(38)                              to the extent required pursuant to a Requirement of Law, Liens on cash or Cash Equivalents securing Swap Obligations in the ordinary course of business and constituting Hedging Obligations permitted by Section 10.1(j); and

 

(39)                              Liens arising under the Credit Documents.

 

For purposes of this definition, the term “Indebtedness” shall be deemed to include interest on, and fees, expenses and other obligations payable with respect to, such Indebtedness.

 

“Permitted Other Indebtedness” shall mean subordinated or senior Indebtedness (which Indebtedness may (x) be unsecured, (y) if consisting of debt securities, have the same lien priority as the First Lien Obligations (without regard to control of remedies) or (z) be secured by a Lien ranking junior to the Lien securing the First Lien Obligations), in each case issued or incurred by the Borrower or a Guarantor, (a) the terms of which do not provide for any scheduled repayment, mandatory repayment or redemption or sinking fund obligations prior to the Latest Term Loan Maturity Date at the time of incurrence of such Indebtedness (other than, in each case, customary offers or obligations to repurchase upon a change of control, asset sale or casualty or condemnation event and customary acceleration rights after an event of default), (b) the covenants, events of default, guarantees, collateral and other terms of which (excluding pricing, interest rate margins, rate floors, discounts, fees, premiums and prepayment or redemption provisions (which shall not permit more than pro rata payment with the Term Loans)), taken as a whole, are not materially more restrictive to the Borrower and the Restricted Subsidiaries than those herein (taken as a whole) (except for covenants or other provisions applicable only to periods after the Latest Term Loan Maturity Date at the time of incurrence of such Indebtedness) (it being understood that, to the extent that any financial maintenance covenant is added for the benefit of any such Indebtedness, no consent shall be required by the Administrative Agent or any of the Lenders if such financial maintenance covenant is either (i) also added for the benefit of any Loans remaining outstanding after the issuance or incurrence of such Indebtedness or (ii) only applicable after the Latest Term Loan Maturity Date at the time of incurrence of such Indebtedness); provided that a certificate of an Authorized Officer of the Borrower delivered to the Administrative Agent at least five Business Days (or such shorter period as the Administrative Agent may reasonably agree) prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower has determined in good faith that such

 

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terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement unless the Administrative Agent notifies the Borrower within two Business Days after receipt of such certificate that it disagrees with such determination (including a reasonable description of the basis upon which it disagrees), (c) of which no Subsidiary of Holdings (other than the Borrower or a Guarantor) is an obligor and (d) that, if secured, is not secured by any assets other than the Collateral.

 

“Permitted Other Indebtedness Documents” shall mean any document or instrument (including any guarantee, security agreement or mortgage) issued or executed and delivered with respect to any Permitted Other Indebtedness by any Credit Party.

 

“Permitted Other Indebtedness Obligations” shall mean, if any Permitted Other Indebtedness is issued or incurred, all advances to, and debts, liabilities, obligations, covenants and duties of, any Credit Party arising under any Permitted Other Indebtedness Document, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising, and including interest and fees that accrue after the commencement by or against any Credit Party or any Affiliate thereof of any proceeding under any bankruptcy or insolvency law naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.  Without limiting the generality of the foregoing, the Permitted Other Indebtedness Obligations of the applicable Credit Parties under the Permitted Other Indebtedness Documents (and any of their Restricted Subsidiaries to the extent they have obligations under the Permitted Other Indebtedness Documents) include the obligation (including guarantee obligations) to pay principal, interest, charges, expenses, fees, attorney costs, indemnities and other amounts payable by any such Credit Party under any Permitted Other Indebtedness Document.

 

“Permitted Other Indebtedness Secured Parties” shall mean the holders from time to time of secured Permitted Other Indebtedness Obligations (and any representative on their behalf).

 

“Permitted Other Provision” shall have the meaning provided in Section 2.14(g)(i).

 

“Permitted Sale Leaseback” shall mean any Sale Leaseback consummated by Holdings or any of the Restricted Subsidiaries after the Closing Date; provided that any such Sale Leaseback not between Holdings and a Restricted Subsidiary is consummated for fair value as determined at the time of consummation in good faith by (i) Holdings or such Restricted Subsidiary or (ii) in the case of any Sale Leaseback (or series of related Sales Leasebacks) the aggregate proceeds of which exceed the greater of (x) $50,000,000 and (y) 17.5% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of the incurrence of such Sale Leaseback, the board of directors (or analogous governing body) of Holdings or such Restricted Subsidiary (which such determination may take into account any retained interest or other Investment of Holdings or such Restricted Subsidiary in connection with, and any other material economic terms of, such Sale Leaseback).

 

“Person” shall mean any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust or other enterprise or any Governmental Authority.

 

“Plan” shall mean, other than any Multiemployer Plan, any employee benefit plan (as defined in Section 3(3) of ERISA), including any employee welfare benefit plan (as defined in Section 3(1) of ERISA), any employee pension benefit plan (as defined in Section 3(2) of ERISA) and any plan which is both an employee welfare benefit plan and an employee pension benefit plan and in respect of which any Credit Party or, with respect to any such plan that is that is subject to Title IV of ERISA, Section 302 of

 

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ERISA or Section 412 of the Code, any ERISA Affiliate is (or, if such Plan were terminated, would under Section 4062 or Section 4069 of ERISA be reasonably likely to be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pounds Sterling” shall mean British Pounds Sterling or any successor currency in the United Kingdom.

 

“Platform” shall have the meaning provided in Section 13.17(a).

 

“Pledge Agreement” shall mean the Pledge Agreement, entered into by the Credit Parties party thereto and the Collateral Agent for the benefit of the Secured Parties, substantially in the form of Exhibit C, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Post-Acquisition Period” shall mean, with respect to any Permitted Acquisition, the period beginning on the date such Permitted Acquisition is consummated and ending on the last day of the fourth full consecutive fiscal quarter immediately following the date on which such Permitted Acquisition is consummated.

 

“Prepayment Event” shall mean any Asset Sale Prepayment Event, Debt Incurrence Prepayment Event, Casualty Event or any Permitted Sale Leaseback.

 

“Present Fair Salable Value” shall mean the amount that could be obtained by an independent willing seller from an independent willing buyer if the assets (both tangible and intangible) of the Borrower and its Restricted Subsidiaries taken as a whole are sold on a going concern basis with reasonable promptness in an arm’s length transaction under present conditions for the sale of comparable business enterprises insofar as such conditions can be reasonably evaluated.

 

“Previous Holdings” shall have the meaning provided in the definition of “Holdings”.

 

“primary obligation” shall have the meaning provided in the definition of “Contingent Obligations”.

 

“primary obligor” shall have the meaning provided in the definition of “Contingent Obligations”.

 

“Pro Forma Adjustment” shall mean, for any Test Period that includes all or any part of a fiscal quarter included in any Post-Acquisition Period, with respect to the Acquired EBITDA of the applicable Acquired Entity or Business or Converted Restricted Subsidiary or the Consolidated EBITDA of Holdings, the pro forma increase or decrease in such Acquired EBITDA or such Consolidated EBITDA, as the case may be, projected by Holdings in good faith as a result of (a) actions taken during such Post-Acquisition Period for the purposes of realizing reasonably identifiable and factually supportable cost savings that are projected by Holdings in good faith to be realized within 12 months of the determination to take such action or (b) any additional costs incurred during such Post-Acquisition Period, in each case in connection with the combination of the operations of such Acquired Entity or Business or Converted Restricted Subsidiary with the operations of Holdings and the Restricted Subsidiaries; provided that, (x) at the election of Holdings, such Pro Forma Adjustment shall not be required to be determined for any Acquired Entity or Business or Converted Restricted Subsidiary to the extent the aggregate consideration paid in connection with such acquisition was less than $7,500,000 and (y) so long as such actions are expected to be realized during such Post-Acquisition Period or such costs are incurred during such Post-Acquisition Period, as applicable, it may be assumed, for purposes of projecting such pro forma increase

 

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or decrease to such Acquired EBITDA or such Consolidated EBITDA, as the case may be, that the applicable amount of such cost savings will be realizable during the entirety of such Test Period, or the applicable amount of such additional costs, as applicable, will be incurred during the entirety of such Test Period; provided, further, that any such pro forma increase or decrease to such Acquired EBITDA or such Consolidated EBITDA, as the case may be, shall be without duplication for cost savings or additional costs already included in such Acquired EBITDA or such Consolidated EBITDA (whether in accordance with Section 1.12(b) or otherwise), as the case may be, for such Test Period and shall be subject to the cap set forth in clause (g) of the definition of Consolidated EBITDA in respect of items covered thereby.

 

“Pro Forma Adjustment Certificate” shall mean any certificate of an Authorized Officer of Holdings delivered pursuant to Section 9.1(d).

 

“Pro Forma Basis”, “Pro Forma Compliance” and “Pro Forma Effect” shall mean, with respect to compliance with any test, financial ratio or covenant hereunder, that (A) to the extent applicable, the Pro Forma Adjustment shall have been made and (B) all Specified Transactions and the following transactions in connection therewith shall be deemed to have occurred as of the first day of the applicable period of measurement in such test or covenant:  (a) income statement items (whether positive or negative) attributable to the property or Person subject to such Specified Transaction, (i) in the case of a sale, transfer or other Disposition of all or substantially all Capital Stock of any Subsidiary of Holdings or any division, product line, or facility used for operations of Holdings or any of its Subsidiaries, shall be excluded and (ii) in the case of a Permitted Acquisition or Investment described in the definition of “Specified Transaction,” shall be included, (b) any retirement of Indebtedness and (c) any incurrence or assumption of Indebtedness by Holdings or any of the Restricted Subsidiaries in connection therewith (it being agreed that if such Indebtedness has a floating or formula rate, such Indebtedness shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate that is or would be in effect with respect to such Indebtedness as at the relevant date of determination); provided that the foregoing pro forma adjustments may be applied to any such test or covenant (including the cap set forth in clause (g) of the definition of Consolidated EBITDA) solely to the extent that such adjustments are consistent with the definition of Consolidated EBITDA and give effect to operating expense reductions that are (i) (x) directly attributable to such transaction, (y) expected to have a continuing impact on Holdings, the Borrower or any of its Restricted Subsidiaries and (z) factually supportable or (ii) otherwise consistent with the definition of Pro Forma Adjustment.

 

“Pro Forma Entity” shall have the meaning provided in the definition of the term “Acquired EBITDA”.

 

“Prohibited Transaction” shall have the meaning assigned to such term in Section 406 of ERISA and Section 4975(c) of the Code.

 

“Projections” shall have the meaning provided in Section 9.1(c).

 

“QMA Notice” shall have the meaning provided in the definition of “Qualifying Material Acquisition”.

 

“QMA Notice Date” shall mean, with respect to any QMA Notice, the date on which such QMA Notice is delivered to the Administrative Agent.

 

“Qualified Proceeds” shall mean assets that are used or useful in, or Capital Stock of any Person engaged in, a Similar Business.

 

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“Qualified Stock” of any Person shall mean Capital Stock of such Person other than Disqualified Stock of such Person.

 

“Qualifying Material Acquisition” shall mean any Permitted Acquisition or Investment, or the last to occur of a group of no greater than three Permitted Acquisitions and/or Investments (whether or not related to each other) consummated within a period of one year, if the aggregate amount of consideration paid in respect of, and liabilities incurred or assumed to finance, such Permitted Acquisition and/or Investment (or, if applicable, such group of Permitted Acquisitions and/or Investments) is in the aggregate at least $250,000,000 and the Borrower has designated such Permitted Acquisitions and/or Investments as a “Qualifying Material Acquisition” by written notice (a “QMA Notice”) to the Administrative Agent.

 

“Real Estate” shall have the meaning provided in Section 9.1(f).

 

“Receivables Facility” shall mean any of one or more receivables financing facilities (and any guarantee of any such financing facility), as amended, supplemented, modified, extended, renewed, restated or refunded from time to time, the obligations in respect of which are non-recourse (except for customary representations, warranties, covenants and indemnities made in connection with such facilities) to Holdings and the Restricted Subsidiaries (other than a Receivables Subsidiary) pursuant to which Holdings or any Restricted Subsidiary sells, directly or indirectly, grants a security interest in or otherwise transfers its accounts receivable to either (a) a Person that is not a Restricted Subsidiary or (b) a Receivables Subsidiary that in turn funds such purchase by purporting to sell its accounts receivable to a Person that is not a Restricted Subsidiary or by borrowing from such a Person or from another Receivables Subsidiary that in turn funds itself by borrowing from such a Person.

 

“Receivables Fees” shall mean distributions or payments made directly or by means of discounts with respect to any accounts receivable or participation interest issued or sold in connection with, and other customary fees paid to a Person that is not a Restricted Subsidiary in connection with, any Receivables Facility.

 

“Receivables Subsidiary” shall mean any Subsidiary or other Person formed for the purpose of facilitating or entering into one or more Receivables Facilities, which in each case engages only in activities reasonably related or incidental thereto and in which Holdings or any Subsidiary makes an Investment and to which Holdings or any Subsidiary transfers accounts receivables and related assets.

 

“Refinance” shall have the meaning provided in Section 10.1(m).

 

“Refinanced Term Loans” shall have the meaning provided in Section 13.1.

 

“Refinancing Indebtedness” shall have the meaning provided in Section 10.1(m).

 

“Refunding Capital Stock” shall have the meaning provided in Section 10.5(b)(ii).

 

“Register” shall have the meaning provided in Section 13.6(b)(iv).

 

“Regulation T” shall mean Regulation T of the Board as from time to time in effect and any successor to all or a portion thereof establishing margin requirements.

 

“Regulation U” shall mean Regulation U of the Board as from time to time in effect and any successor to all or a portion thereof establishing margin requirements.

 

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“Regulation X” shall mean Regulation X of the Board as from time to time in effect and any successor to all or a portion thereof establishing margin requirements.

 

“Reimbursement Date” shall have the meaning provided in Section 3.4(a).

 

“Reimbursement Obligations” shall mean the Borrower’s obligations to reimburse Unpaid Drawings pursuant to Section 3.4(a).

 

“Reinvestment Period” shall mean 450 days following the date of receipt of Net Cash Proceeds of an Asset Sale Prepayment Event, Casualty Event or Permitted Sale Leaseback.

 

“Rejection Notice” shall have the meaning provided in Section 5.2(f).

 

“Related Business Assets” shall mean assets (other than cash or Cash Equivalents) used or useful in a Similar Business; provided that any assets received by Holdings or the Restricted Subsidiaries in exchange for assets transferred by Holdings or a Restricted Subsidiary shall not be deemed to be Related Business Assets if they consist of securities of a Person, unless upon receipt of the securities of such Person such Person would become a Restricted Subsidiary.

 

“Related Fund” shall mean, with respect to any Lender that is a Fund, any other Fund that is advised or managed by (a) such Lender, (b) an Affiliate of such Lender or (c) an entity or an Affiliate of such entity that administers, advises or manages such Lender.

 

“Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates and the directors, officers, employees, agents, trustees and advisors of such Person and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

 

“Release” shall mean any release, spill, emission, discharge, disposal, escaping, leaking, pumping, pouring, dumping, emptying, injection, leaching, or migration into or through the environment.

 

“Repayment Amount” shall mean the Initial Term Loan Repayment Amount, a New Term Loan Repayment Amount with respect to any Series, or an Extended Term Loan Repayment Amount with respect to any Extension Series, as applicable.

 

“Replacement Term Loan Commitment” shall mean the commitments of the Lenders to make Replacement Term Loans.

 

“Replacement Term Loans” shall have the meaning provided in Section 13.1.

 

“Reportable Event” shall mean any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder, with respect to a Pension Plan (other than a Pension Plan maintained by an ERISA Affiliate that is considered an ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the Code), other than those events as to which notice is waived pursuant to DOL Reg. § 4043.

 

“Required Initial Term Loan Lenders” shall mean, at any date, Non-Defaulting Lenders having or holding a majority of the sum of (a) the Adjusted Total Initial Term Loan Commitment at such date and (b) the aggregate outstanding principal amount of the Initial Term Loans (excluding Initial Term Loans held by Defaulting Lenders) at such date.

 

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“Required Lenders” shall mean, at any date, (a) Non-Defaulting Lenders having or holding a majority of the Dollar Equivalent of the sum of (i) the Adjusted Total Revolving Credit Commitment at such date, (ii) the Adjusted Total Term Loan Commitment at such date and (iii) the aggregate outstanding principal amount of the Term Loans (excluding Term Loans held by Defaulting Lenders) at such date or (b) if the Total Revolving Credit Commitment and the Total Term Loan Commitment have been terminated or for the purposes of acceleration pursuant to Section 11, Non-Defaulting Lenders having or holding a majority of the Dollar Equivalent of the outstanding principal amount of the Loans and Letter of Credit Exposure (excluding the Loans and Letter of Credit Exposure of Defaulting Lenders) in the aggregate at such date.

 

“Required Revolving Credit Lenders” shall mean, at any date, Non-Defaulting Lenders holding a majority of the Adjusted Total Revolving Credit Commitment at such date (or, if the Total Revolving Credit Commitment has been terminated, a majority of the Revolving Credit Exposure (excluding Revolving Credit Exposure of Defaulting Lenders) at such time).

 

“Required Term Loan Lenders” shall mean, at any date, Non-Defaulting Lenders having or holding a majority of the sum of (a) the Adjusted Total Term Loan Commitment at such date and (b) the aggregate outstanding principal amount of the Term Loans (excluding Term Loans held by Defaulting Lenders) at such date.

 

“Requirement of Law” shall mean, as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or assets or to which such Person or any of its property or assets is subject.

 

“Restricted Investment” shall mean an Investment other than a Permitted Investment.

 

“Restricted Payments” shall have the meaning provided in Section 10.5(a).

 

“Restricted Subsidiary” shall mean any Subsidiary of Holdings (including the Borrower) other than an Unrestricted Subsidiary.

 

“Retained Declined Proceeds” shall have the meaning provided in Section 5.2(f).

 

“Retired Capital Stock” shall have the meaning provided in Section 10.5(b)(ii).

 

“Revaluation Date” shall mean (a) with respect to any Revolving Loan or Swingline Loan, each of the following:  (i) each date of a Borrowing of a Revolving Loan or Swingline Loan, (ii) each date of a continuation of a Revolving Loan pursuant to Section 2.6 and (iii) such additional dates as the Administrative Agent shall determine or the Required Revolving Credit Lenders or Swingline Lender shall require; provided that this clause (iii) shall not be exercised more than once per calendar month; and (b) with respect to any Letter of Credit, each of the following:  (i) each date of issuance of any such Letter of Credit, (ii) each date of an amendment of any such Letter of Credit having the effect of increasing the amount thereof, (iii) each date of any payment by the applicable Letter of Credit Issuer under any Letter of Credit and (iv) such additional dates as the Administrative Agent or the Letter of Credit Issuer shall determine or the Required Revolving Credit Lenders shall require; provided that this clause (iv) shall not be exercised more than once per calendar month.

 

“Revolving Credit Commitment” shall mean, (a) with respect to each Person that is a Lender on

 

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the date hereof, the Initial Revolving Credit Commitment of such Person and (b) in the case of any Person that becomes a Lender after the date hereof, the amount specified as such Lender’s Revolving Credit Commitment in the Assignment and Acceptance pursuant to which such Lender assumed a portion of the Total Revolving Credit Commitment, in each case as the same may be changed from time to time pursuant to terms hereof or in the applicable Joinder Agreement or Extension Amendment. The aggregate Revolving Credit Commitments of all Revolving Credit Lenders shall be $125,000,000 on the Closing Date, as such amount may be adjusted from time to time in accordance with the terms of this Agreement.  Unless the context shall otherwise require, “Revolving Credit Commitment” shall include any Initial Revolving Credit Commitment, Additional Revolving Credit Commitment, New Revolving Credit Commitment and Extended Revolving Credit Commitment.

 

“Revolving Credit Commitment Percentage” shall mean at any time, for each Lender, the percentage obtained by dividing (i) such Lender’s Revolving Credit Commitment at such time by (ii) the amount of the Total Revolving Credit Commitment at such time; provided that at any time when the Total Revolving Credit Commitment shall have been terminated, each Lender’s Revolving Credit Commitment Percentage shall be the percentage obtained by dividing (a) such Lender’s Revolving Credit Exposure at such time by (b) the Revolving Credit Exposure of all Lenders at such time.

 

“Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the sum of (a) the aggregate Dollar Equivalent amount of the principal amount of Revolving Loans of such Lender then outstanding, (b) such Lender’s Letter of Credit Exposure at such time and (c) such Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of all outstanding Swingline Loans at such time.

 

“Revolving Credit Facility” shall mean, at any time, the aggregate amount of the Revolving Credit Lenders’ Revolving Credit Commitments at such time.

 

“Revolving Credit Lender” shall mean, at any time, any Lender that has a Revolving Credit Commitment (including any Incremental Revolving Credit Commitment or Extended Revolving Credit Commitment) at such time.

 

“Revolving Credit Maturity Date” shall mean (i) except as set forth in clause (ii) or (iii) below, December 6, 2021, or, if such date is not a Business Day, the immediately preceding Business Day, (ii) with respect to Extended Revolving Credit Loans or Extended Revolving Credit Commitments, the applicable Extended Revolving Credit Maturity Date and (iii) with respect to Additional Revolving Credit Loans or Additional Revolving Credit Commitments, the date specified in the applicable Joinder Agreement, provided that clauses (ii) and (iii) shall in no event apply to Letters of Credit or Swingline Loans unless agreed to by the Letter of Credit Issuers and the Swingline Lender.

 

“Revolving Credit Termination Date” shall mean the date on which the Revolving Credit Commitments shall have terminated, no Revolving Loans or Swingline Loans shall be outstanding and the Letters of Credit Outstanding shall have been reduced to zero or Cash Collateralized.

 

“Revolving Loan” shall mean, collectively or individually as the context may require, any (i) Initial Revolving Credit Loan, (ii) Extended Revolving Credit Loan, (iii) New Revolving Credit Loan and (iv) Additional Revolving Credit Loan, in each case made pursuant to and in accordance with the terms and conditions of this Agreement.

 

“S&P” shall mean Standard & Poor’s Ratings Services or any successor by merger or consolidation to its business.

 

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“Sale Leaseback” shall mean any arrangement with any Person providing for the leasing by Holdings or any Restricted Subsidiary of any real or tangible personal property, which property has been or is to be sold or transferred by Holdings or such Restricted Subsidiary to such Person in contemplation of such leasing.

 

“Sanctions and Anti-Terrorism Laws” shall mean any laws, regulations, resolutions, orders, or other rules administered or enforced by the United States government, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant authorities relating to trade and economic sanctions or anti-terrorist activity, including, without limitation, the Trading With the Enemy Act, as amended, the International Economic Powers Act, as amended, each of OFAC’s foreign assets control regulations (31 CFR Subtitle B, Chapter V, as amended), and the PATRIOT Act.

 

“SEC” shall mean the Securities and Exchange Commission or any successor thereto.

 

“Second Lien Intercreditor Agreement” shall mean a First Lien/Second Lien Intercreditor Agreement substantially in the form of Exhibit I-2 (with such changes to such form as may be reasonably acceptable to the Administrative Agent and the Borrower) among the Administrative Agent, the Collateral Agent and the representatives for purposes thereof of any Permitted Other Indebtedness Secured Parties that are holders of Permitted Other Indebtedness Obligations having a Lien on the Collateral.

 

“Section 2.14 Additional Amendment” shall have the meaning provided in Section 2.14(g)(iv).

 

“Section 9.1 Financials” shall mean the financial statements delivered, or required to be delivered, pursuant to Section 9.1(a) or 9.1(b) together with the accompanying officer’s certificate delivered, or required to be delivered, pursuant to Section 9.1(d).

 

“Secured Cash Management Agreement” shall mean any Cash Management Agreement that is entered into by and between Holdings or any of its Restricted Subsidiaries and any Cash Management Bank.

 

“Secured Cash Management Obligations” shall mean Obligations under Secured Cash Management Agreements.

 

“Secured Hedge Agreement” shall mean any Hedge Agreement that is entered into by and between Holdings or any Restricted Subsidiary and any Hedge Bank.

 

“Secured Hedge Obligations” shall mean Obligations under Secured Hedge Agreements.

 

“Secured Parties” shall mean the Administrative Agent, the Collateral Agent, the Letter of Credit Issuers and each Lender, in each case with respect to the Credit Facilities, each Hedge Bank that is party to any Secured Hedge Agreement with Holdings or any Restricted Subsidiary, each Cash Management Bank that is party to a Secured Cash Management Agreement with Holdings or any Restricted Subsidiary and each sub-agent pursuant to Section 12 appointed by the Administrative Agent with respect to matters relating to the Credit Facilities or the Collateral Agent with respect to matters relating to any Security Document or Guarantee.

 

“Securities Exchange Act” shall mean Securities Exchange Act of 1934, as amended.

 

“Security Agreement” shall mean the Security Agreement entered into by Holdings, the Borrower, the other grantors party thereto and the Collateral Agent for the benefit of the Secured Parties,

 

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substantially in the form of Exhibit D, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Security Documents” shall mean, collectively, the Pledge Agreement, the Security Agreement, the Mortgages, if executed, the First Lien Intercreditor Agreement and the Second Lien Intercreditor Agreement, and each other security agreement or other instrument or document executed and delivered pursuant to Sections 9.11, 9.12 or 9.14 or pursuant to any other such Security Documents to secure the Obligations or to govern the lien priorities of the holders of Liens on the Collateral.

 

“Senior Notes” shall mean the $91,441,000 in aggregate principal amount of senior unsecured notes issued and outstanding under the Senior Notes Indenture on the date hereof.

 

“Senior Notes Indenture” shall mean the Indenture, dated as September 23, 2013, among PRA Holdings, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, pursuant to which the Senior Notes were issued, as the same may be amended, supplemented or otherwise modified from time to time in accordance therewith.

 

“Series” shall have the meaning provided in Section 2.14(a).

 

“Similar Business” shall mean any business conducted or proposed to be conducted by Holdings and the Restricted Subsidiaries on the Closing Date or any business that is similar, reasonably related, incidental or ancillary thereto.

 

“Sold Entity or Business” shall have the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Solvent” shall mean, after giving effect to the consummation of the Transactions, that (i) the Fair Value of the assets of the Borrower and its Restricted Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; (ii) the Present Fair Salable Value of the assets of the Borrower and its Restricted Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; (iii) the Borrower and its Restricted Subsidiaries taken as a whole do not have Unreasonably Small Capital; and (iv) the Borrower and its Restricted Subsidiaries taken as a whole will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature.

 

“Specified Existing Revolving Credit Commitment” shall have the meaning provided in Section 2.14(g)(ii).

 

“Specified Transaction” shall mean, with respect to any period, any Investment (including a Permitted Acquisition), any asset sale, incurrence or repayment of Indebtedness, Restricted Payment, Subsidiary designation, New Term Loan, Incremental Revolving Credit Commitment or other event or action that in each case by the terms of this Agreement requires Pro Forma Compliance with a test or covenant hereunder or requires such test or covenant to be calculated on a “Pro Forma Basis”.

 

“Sponsor” shall mean any of KKR and its Affiliates but excluding portfolio companies of any of the foregoing.

 

“Spot Rate” for a currency shall mean the rate determined by the Administrative Agent to be the rate quoted by the Administrative Agent as the spot rate for the purchase by the Administrative Agent of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign

 

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exchange computation is made; provided that the Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative Agent if it does not have as of the date of determination a spot buying rate for any such currency.

 

“SPV” shall have the meaning provided in Section 13.6(g).

 

“Stated Amount” of any Letter of Credit shall mean the Dollar Equivalent of the maximum amount from time to time available to be drawn thereunder, determined without regard to whether any conditions to drawing could then be met; provided, however, that with respect to any Letter of Credit that by its terms or the terms of any Issuer Document provides for one or more automatic increases in the stated amount thereof, the Stated Amount shall be deemed to be the Dollar Equivalent of 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 such time.

 

“Stated Liabilities” shall mean the recorded liabilities (including contingent liabilities that would be recorded in accordance with GAAP) of the Borrower and its Restricted Subsidiaries taken as a whole, as of the date hereof  after giving effect to the consummation of the Transactions (including the execution and delivery of this Agreement, the making of the Loans and the use of proceeds of such Loans on the date hereof), determined in accordance with GAAP consistently applied.

 

“Status” shall mean the existence of Level I Status, Level II Status, Level III Status, Level IV Status or Level V Status, as the case may be, on such date. Changes in Status resulting from changes in the Consolidated Total Debt to Consolidated EBITDA Ratio shall become effective as of the first day following each date that (a) Section 9.1 Financials for the first full fiscal quarter ended after the Closing Date are delivered to the Administrative Agent under Section 9.1 and (b) an officer’s certificate is delivered by Holdings to the Administrative Agent setting forth, with respect to such Section 9.1 Financials, the then-applicable Status, and shall remain in effect until the next change to be effected pursuant to this definition; provided that each determination of the Consolidated Total Debt to Consolidated EBITDA Ratio pursuant to this definition shall be made as of the end of the Test Period ending at the end of the fiscal period covered by the relevant Section 9.1 Financials. In addition, at the option of the Required Lenders, at any time during which an Event of Default shall have occurred and be continuing or the Borrower shall have failed to deliver the Section 9.1 Financials by the date required under Section 9.1, then the Consolidated Total Debt to Consolidated EBITDA Ratio shall be deemed to be in Level I Status for the purposes of determining the Status (but only for so long as such failure or Event of Default continues, after which the Status shall be otherwise as determined as set forth above).

 

“Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) established by the Board and any other banking authority, domestic or foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate or other fronting office making or holding a Loan) is subject to Eurocurrency Liabilities (as defined in Regulation D of the Board). LIBOR Loans shall be deemed to constitute Eurocurrency Liabilities and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D. Statutory Reserves shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Stock Equivalents” shall mean all securities convertible into or exchangeable for Capital Stock and all warrants, options or other rights to purchase or subscribe for any Capital Stock, whether or not presently convertible, exchangeable or exercisable.

 

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“Subject Lien” shall have the meaning provided in Section 10.2(a)

 

“Subordinated Indebtedness” shall mean Indebtedness of Holdings, the Borrower or any other Guarantor that is by its terms subordinated in right of payment to the obligations of Holdings, the Borrower or such Guarantor, as applicable, under this Agreement or the Guarantee, as applicable.

 

“Subsidiary” of any Person shall mean and include (a) any corporation more than 50% of whose Capital Stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time Capital Stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries or (b) any limited liability company, partnership, association, joint venture or other entity of which such Person directly or indirectly through Subsidiaries has more than a 50% equity interest at the time.  Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a Subsidiary of Holdings.

 

“Successor Borrower” shall have the meaning provided in Section 10.3(a).

 

“Swap Obligation” shall mean, with respect to any Credit Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1(a)(47) of the Commodity Exchange Act.

 

“Swingline Commitment” shall mean $20,000,000.  Swingline Commitment is part of and not in addition to the Revolving Credit Commitment.

 

“Swingline Exposure” shall mean at any time, as to all Revolving Credit Lenders, the aggregate principal amount at such time of all outstanding Swingline Loans.  The Swingline Exposure of any Revolving Credit Lender at any time shall equal its Revolving Credit Commitment Percentage of the aggregate Swingline Exposure at such time.

 

“Swingline Lender” shall mean Wells Fargo Bank, National Association, in its capacity as lender of Swingline Loans hereunder or any replacement or successor thereto.

 

“Swingline Loans” shall have the meaning provided in Section 2.1(c).

 

“Swingline Maturity Date” shall mean, with respect to any Swingline Loan, the Revolving Credit Maturity Date.

 

“Syndication Agents” shall mean Citizens Bank, N.A., PNC Capital Markets LLC and SunTrust Bank.

 

“TARGET Day” shall mean any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be operative, such other payment system (if any) determined by the Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euro.

 

“Taxes” shall mean any and all present or future taxes, duties, levies, imposts, assessments, deductions, withholdings (including backup withholding), fees or other similar charges imposed by any Governmental Authority and any interest, fines, penalties or additions to tax with respect to the foregoing.

 

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“Term Loan Commitment” shall mean, with respect to each Lender, such Lender’s Initial Term Loan Commitment, and, if applicable, New Term Loan Commitment with respect to any Series and Replacement Term Loan Commitment with respect to any Series.

 

“Term Loan Lender” shall mean, at any time, any Lender that has a Term Loan Commitment or an outstanding Term Loan.

 

“Term Loans” shall mean the Initial Term Loans, any New Term Loans, any Replacement Term Loans and any Extended Term Loans, collectively.

 

“Test Period” shall mean, for any determination under this Agreement, the four consecutive fiscal quarters of Holdings most recently ended on or prior to such date of determination and for which Section 9.1 Financials shall have been delivered (or were required to be delivered) to the Administrative Agent (or, before the first delivery of Section 9.1 Financials, the most recent period of four fiscal quarters at the end of which financial statements are available).

 

“Title Policy” shall have the meaning provided in Section 9.14(c).

 

“Total Credit Exposure” shall mean, at any date, the sum, without duplication, of (a) the Total Revolving Credit Commitment at such date (or, if the Total Revolving Credit Commitment shall have terminated on such date, the aggregate Revolving Credit Exposure of all Lenders at such date), (b) the Total Term Loan Commitment at such date, and (c) without duplication of clause (b), the Dollar Equivalent of the aggregate outstanding principal amount of all Term Loans at such date.

 

“Total Initial Term Loan Commitment” shall mean the sum of the Initial Term Loan Commitments of all Lenders.

 

“Total Revolving Credit Commitment” shall mean the sum of the Revolving Credit Commitments of all the Lenders.

 

“Total Term Loan Commitment” shall mean the sum of (i) the Initial Term Loan Commitments of all the Lenders, (ii) the New Term Loan Commitments, if applicable, of all the Lenders and (iii) the Replacement Term Loan Commitments, if applicable, of all the Lenders.

 

“Transaction Expenses” shall mean any fees, costs or expenses incurred or paid by Holdings, the Borrower or any of their Affiliates in connection with the Transactions, this Agreement and the other Credit Documents and the transactions contemplated hereby and thereby.

 

“Transactions” shall mean, collectively, the transactions contemplated by this Agreement, the Closing Date Refinancing and the consummation of any other transactions in connection with the foregoing.

 

“Transferee” shall have the meaning provided in Section 13.6(e).

 

“Trigger Date” shall mean the day following the date on which Section 9.1 Financials are delivered to the Administrative Agent for the fiscal quarter ending on December 31, 2016.

 

“Type” shall mean as to any Loan, its nature as an ABR Loan or a LIBOR Loan.

 

“Unpaid Drawing” shall have the meaning provided in Section 3.4(a).

 

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“Unreasonably Small Capital” shall mean for the period from the date hereof through the Maturity Date, the Borrower and its Restricted Subsidiaries taken as a whole after consummation of the Transactions (including the execution and delivery of this Agreement, the making of the Loans and the use of proceeds of such Loans on the date hereof) is a going concern and has sufficient capital to reasonably ensure that it will continue to be a going concern for such period.

 

“Unrestricted Subsidiary” shall mean (1) any Subsidiary of Holdings which at the time of determination is an Unrestricted Subsidiary (as designated by the board of directors of Holdings, as provided below) and (2) any Subsidiary of an Unrestricted Subsidiary.

 

Subject to clause (y) below, the board of directors of Holdings may designate any Subsidiary of Holdings (including any existing Subsidiary and any newly acquired or newly formed Subsidiary) other than the Borrower or a Subsidiary of Holdings that is a direct or indirect parent of the Borrower to be an Unrestricted Subsidiary, unless such Subsidiary or any of its Subsidiaries owns any Equity Interests or Indebtedness of, or owns or holds any Lien on, or on any property of, Holdings or any Subsidiary of Holdings (other than any Subsidiary of the Subsidiary to be so designated or an Unrestricted Subsidiary); provided that:

 

(a)                                 such designation complies with Section 10.5;

 

(b)                                 each of (1) the Subsidiary to be so designated and (2) its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of Holdings or any Restricted Subsidiary,

 

(c)                                  immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing, and

 

(d)                                 immediately after giving effect to such designation, Holdings shall be in compliance with the financial covenants set forth in Section 10.7 calculated as of the most recent period of four (4) consecutive fiscal quarters for which Section 9.1 Financials have been delivered.

 

The board of directors of Holdings may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that, (x) immediately after giving effect to such designation, no Event of Default shall have occurred and be continuing and (y) any Unrestricted Subsidiary that has been re-designated as a Restricted Subsidiary may not be subsequently re-designated as an Unrestricted Subsidiary..

 

Any such designation by the board of directors of Holdings shall be notified by Holdings to the Administrative Agent by promptly delivering to the Administrative Agent a copy of the Board Resolution giving effect to such designation and a certificate of an Authorized Officer of Holdings certifying that such designation complied with the foregoing provisions.

 

“U.S.” and “United States” shall mean the United States of America.

 

“U.S. Lender” shall have the meaning provided in Section 5.4(e)(ii)(A).

 

“U.S. Tax Compliance Certificate” shall have the meaning provided in Section 5.4(e)(ii)(B)(3).

 

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“Voting Stock” shall mean, with respect to any Person as of any date, the Capital Stock of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

 

“Wells Fargo” shall mean Wells Fargo Bank, National Association and its successors.

 

“Wholly-Owned Restricted Subsidiary” of any Person shall mean a Restricted Subsidiary of such Person, 100% of the outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person.

 

“Wholly-Owned Subsidiary” of any Person shall mean a Subsidiary of such Person, 100% of the outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person. Wholly-Owned Subsidiary shall also include any Subsidiary of any Guarantor 100% of the outstanding Capital Stock of which is owned by one or more Guarantors.

 

“Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Title IV of ERISA.

 

“Withholding Agent” shall mean any Credit Party and the Administrative Agent, as applicable.

 

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

 

1.2                               Other Interpretive Provisions.  With reference to this Agreement and each other Credit Document, unless otherwise specified herein or in such other Credit Document:

 

(a)                                 The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b)                                 The words “herein”, “hereto”, “hereof” and “hereunder” and words of similar import when used in any Credit Document shall refer to such Credit Document as a whole and not to any particular provision thereof.

 

(c)                                  Article, Section, Exhibit and Schedule references are to the Credit Document in which such reference appears.

 

(d)                                 The term “including” is by way of example and not limitation.

 

(e)                                  The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

 

(f)                                   In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”; and the word “through” means “to and including”.

 

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(g)                                  Section headings herein and in the other Credit Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Credit Document.

 

(h)                                 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.

 

(i)                                     All references to “knowledge” or “awareness” of any Credit Party or any Restricted Subsidiary thereof means the actual knowledge of an Authorized Officer of such Credit Party or such Restricted Subsidiary.

 

1.3                               Accounting Terms.

 

(a)                                 Except as expressly provided herein, all accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, applied in a consistent manner.

 

(b)                                 Notwithstanding anything to the contrary herein, for purposes of determining compliance with any test or covenant contained in this Agreement with respect to any period during which any Specified Transaction occurs, the Consolidated Total Debt to Consolidated EBITDA Ratio, the Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio and the First Lien Secured Leverage Test shall each be calculated with respect to such period and such Specified Transaction on a Pro Forma Basis.

 

(c)                                  Where reference is made to “Holdings and its Restricted Subsidiaries on a consolidated basis” or similar language, such consolidation shall not include any Subsidiaries of Holdings other than Restricted Subsidiaries.

 

1.4                               Rounding.  Any financial ratios required to be maintained by Holdings pursuant to this Agreement (or required to be satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number.

 

1.5                               References to Agreements, Laws, Etc.  Unless otherwise expressly provided herein, (a) references to organizational documents, agreements (including the Credit Documents) and other Contractual Requirements shall be deemed to include all subsequent amendments, restatements, amendment and restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, amendment and restatements, extensions, supplements and other modifications are permitted by any Credit Document; and (b) references to any Requirement of Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Requirement of Law.

 

1.6                               Exchange Rates.  Notwithstanding the foregoing, for purposes of any determination under Section 9, Section 10 or Section 11 or any determination under any other provision of this Agreement expressly requiring the use of a current exchange rate, all amounts incurred, outstanding or proposed to be incurred or outstanding in currencies other than Dollars shall be translated into Dollars at the Spot Rate; provided, however, that for purposes of determining compliance with Section 10 with

 

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respect to the amount of any Indebtedness, Restricted Investment, Lien, Asset Sale or Restricted Payment in a currency other than Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of changes in rates of exchange occurring after the time such Indebtedness or Lien is incurred or after such Asset Sale, Restricted Investment or Restricted Payment is made; provided that, for the avoidance of doubt, the foregoing provisions of this Section 1.6 shall otherwise apply to such Sections, including with respect to determining whether any Indebtedness or Lien may be incurred or Asset Sale, Investment or Restricted Payment made at any time under such Sections.  For purposes of any determination of Consolidated Total Debt or Consolidated First Lien Secured Debt, amounts in currencies other than Dollars shall be translated into Dollars at the currency exchange rates used in preparing the most recently delivered Section 9.1 Financial Statements.

 

1.7                               Rates.  The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission, or any other matter related to the rates in the definition of LIBOR Rate or with respect to any comparable or successor rate thereto.

 

1.8                               Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

1.9                               Timing of Payment or Performance.  Except as otherwise provided herein (including Section 2.9), when the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on (or before) a day which is not a Business Day, the date of such payment or performance shall extend to the immediately succeeding Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

1.10                        Certifications.  All certifications to be made hereunder by an officer or representative of a Credit Party shall be made by such a Person in his or her capacity solely as an officer or a representative of such Credit Party, on such Credit Party’s behalf and not in such Person’s individual capacity.

 

1.11                        Compliance with Certain Sections.  In the event that any Lien, Investment, Indebtedness, Disposition, Restricted Payment, Affiliate transaction, Contractual Requirement or prepayment of Indebtedness meets the criteria of one or more than one of the categories of transactions then permitted pursuant to any clause or subsection of Section 9.9 (other than Section 9.9(a)) or any clause or subsection of Sections 10.1 (but subject to the fifth to last paragraph thereof), 10.2 (other than clause (39) of the definition of Permitted Lien), 10.3, 10.4, 10.5 (but subject to the to last paragraph of Section 10.5(b)) or 10.6, then such transaction (or portion thereof) may be allocated to one or more of such clauses or subsections within the relevant sections as determined by the Borrower in its sole discretion at the time such Lien, Investment, Indebtedness, Disposition, Restricted Payment, Affiliate Transaction, Contractual Requirement or prepayment of Indebtedness is incurred or consummated.

 

1.12                        Pro Forma and Other Calculations.

 

(a)                                 For purposes of calculating the Fixed Charge Coverage Ratio, Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio, Consolidated Total Debt to Consolidated EBITDA Ratio, Investments, acquisitions, Dispositions, mergers, consolidations and disposed operations (as determined in accordance with GAAP) that have been made by Holdings or any Restricted Subsidiary during the Test Period or subsequent to such Test Period and on or prior to or simultaneously with the date of determination shall be calculated on a Pro Forma Basis assuming that all such Investments, acquisitions, Dispositions, mergers, consolidations and disposed operations (and the change in any associated fixed charge obligations and the change in Consolidated EBITDA resulting therefrom) had occurred on the first

 

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day of the Test Period.  If, since the beginning of such period, any Person that subsequently became a Restricted Subsidiary or was merged with or into Holdings or any Restricted Subsidiary since the beginning of such period shall have made any Investment, acquisition, Disposition, merger, consolidation or disposed operation that would have required adjustment pursuant to this definition, then the Fixed Charge Coverage Ratio, Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio and Consolidated Total Debt to Consolidated EBITDA Ratio shall be calculated giving Pro Forma Effect thereto for such Test Period as if such Investment, acquisition, Disposition, merger, consolidation or disposed operation had occurred at the beginning of the Test Period.

 

(b)                                 Whenever Pro Forma Effect is to be given to a transaction, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower (and may include, for the avoidance of doubt and without duplication, cost savings and operating expense reductions resulting from such Investment, acquisition, merger or consolidation which is being given Pro Forma Effect that have been or are expected to be realized; provided that such costs savings and operating expense reductions are made in compliance with the definition of Pro Forma Adjustment).  If any Indebtedness bears a floating rate of interest and is being given Pro Forma Effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account for such entire period any Hedging Obligation applicable to such Indebtedness with a remaining term of 12 months or longer, and in the case of any Hedging Obligation applicable to such Indebtedness with a remaining term of less than 12 months, taking into account such Hedging Obligation to the extent of its remaining term).  Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of the Borrower to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.  For purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a Pro Forma Basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period (or, if lower, the maximum commitments under such revolving credit facility as of the date of determination). Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

In connection with any action being taken solely in connection with a Limited Condition Acquisition, for purposes of:

 

(i)                                     determining compliance with any provision of this Agreement which requires the calculation of the Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio, the Consolidated Total Debt to Consolidated EBITDA Ratio or the Fixed Charge Coverage Ratio;

 

(ii)                                  determining the accuracy of representations and warranties in Section 8 and/or whether a Default or Event of Default shall have occurred and be continuing under Section 11; or

 

(iii)                               testing availability under baskets set forth in this Agreement (including baskets measured as a percentage of Consolidated EBITDA or Consolidated Total Assets);

 

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Acquisition, an “LCA Election”), the date of determination of whether any such action is permitted hereunder shall be deemed to be the date the definitive agreements for such

 

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Limited Condition Acquisition are entered into (the “LCA Test Date”), and if, after giving Pro Forma Effect to the Limited Condition Acquisition and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) as if they had occurred at the beginning of the most recent Test Period ending prior to the LCA Test Date, the Borrower could have taken such action on the relevant LCA Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied with.  For the avoidance of doubt, if the Borrower has made an LCA Election and any of the ratios or baskets for which compliance was determined or tested as of the LCA Test Date are exceeded as a result of fluctuations in any such ratio or basket, including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such Limited Condition Acquisition, at or prior to the consummation of the relevant transaction or action, such baskets or ratios will not be deemed to have been exceeded as a result of such fluctuations.  If the Borrower has made an LCA Election for any Limited Condition Acquisition, then in connection with any subsequent calculation of any ratio or basket availability with respect to the incurrence of Indebtedness or Liens, or the making of Restricted Payments, mergers, the conveyance, lease or other transfer of all or substantially all of the assets of the Borrower, the prepayment, redemption, purchase, defeasance or other satisfaction of Indebtedness, or the designation of an Unrestricted Subsidiary on or following the relevant LCA Test Date and prior to the earlier of (i) the date on which such Limited Condition Acquisition is consummated or (ii) the date that the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, any such ratio or basket shall be calculated (x) for purposes of any calculation in connection with any Restricted Payment, both (I) on a Pro Forma Basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) had not been consummated and (II) on a Pro Forma Basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) had been consummated and (y) for all other purposes, on a Pro Forma Basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated.

 

(c)                                  Notwithstanding anything to the contrary in this Section 1.12 or in any classification under GAAP of any Person, business, assets or operations in respect of which a definitive agreement for the disposition thereof has been entered into as discontinued operations, no Pro Forma Effect shall be given thereto (and the EBITDA attributable to any such Person, business, assets or operations shall not be excluded for any purposes hereunder) until such disposition shall have been consummated.

 

(d)                                 Any determination of Consolidated Total Assets shall be made by reference to the last day of the Test Period most recently ended on or prior to the relevant date of determination for which Section 9.1 Financials have been delivered.

 

(e)                                  Except as otherwise specifically provided herein, all computations of Consolidated Total Assets, Available Amount, Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio, Consolidated Total Debt to Consolidated EBITDA Ratio, the Fixed Charge Coverage Ratio and other financial ratios and financial calculations (and all definitions (including accounting terms) used in determining any of the foregoing) and all computations and all definitions (including accounting terms) used in determining compliance with Section 10.7 shall be calculated, in each case, with respect to Holdings and the Restricted Subsidiaries on a consolidated basis.

 

(f)                                   All leases of any Person that are or would be characterized as operating leases in accordance with GAAP immediately prior to December 31, 2015 (whether or not such operating leases were in effect on such date) shall continue to be accounted for as operating leases (and not as Capital

 

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Leases) for purposes of this Agreement regardless of any change in GAAP following such date that would otherwise require such leases to be recharacterized as Capital Leases.

 

Section 2.                                           Amount and Terms of Credit.

 

2.1                               Commitments.

 

(a)                                 Subject to and upon the terms and conditions herein set forth, (i) each Lender having an Initial Term Loan Commitment severally agrees to make a loan or loans (each, an “Initial Term Loan”) to the Borrower on the Closing Date, which Initial Term Loans shall not exceed for any such Lender the Initial Term Loan Commitment of such Lender and in the aggregate shall not exceed $625,000,000.  Such Term Loans (i) may at the option of the Borrower be incurred and maintained as, and/or converted into, ABR Loans or LIBOR Loans; provided that all Term Loans made by each of the Lenders pursuant to the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of Term Loans of the same Type, (ii) may be repaid or prepaid in accordance with the provisions hereof, but once repaid or prepaid, may not be reborrowed, and (iii) shall not exceed in the aggregate the Total Initial Term Loan Commitments.  On the Initial Term Loan Maturity Date, all then unpaid Initial Term Loans shall be repaid in full in Dollars.

 

(b)

 

(i)                                     Subject to and upon the terms and conditions herein set forth, each Revolving Credit Lender severally agrees to make Revolving Loans denominated in Dollars, Euros or an Alternative Currency to the Borrower as elected by the Borrower pursuant to Section 2.2 from its applicable lending office in an aggregate Dollar Equivalent principal amount not to exceed at any time outstanding the amount of such Lender’s Revolving Credit Commitment; provided that any of the foregoing such Revolving Loans:

 

(A)                               shall be made at any time and from time to time on and after the Closing Date and prior to the Revolving Credit Maturity Date,

 

(B)                               may, at the option of the Borrower be incurred and maintained as, and/or converted into, ABR Loans (solely in the case of Revolving Loans denominated in Dollars) or LIBOR Loans; provided that all Revolving Loans made by each of the Lenders pursuant to the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of Revolving Loans of the same Type,

 

(C)                               may be repaid and reborrowed in accordance with the provisions hereof (for this purpose using the Dollar Equivalent of all Revolving Loans),

 

(D)                               shall not, for any Lender at any time, after giving effect thereto and to the application of the proceeds thereof, result in such Lender’s Revolving Credit Exposure in respect of any Class at such time exceeding such Lender’s Revolving Credit Commitment in respect of such Class at such time and

 

(E)                                shall not, after giving effect thereto and to the application of the proceeds thereof, result at any time in the aggregate amount of the Lenders’ Revolving Credit Exposures at such time exceeding the Total Revolving Credit Commitment then in effect or the aggregate amount of the Lenders’ Revolving Credit Exposures of any Class

 

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at such time exceeding the aggregate Revolving Credit Commitment with respect to such Class.

 

(ii)                                  Each Lender may, at its option, make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that, (A) any exercise of such option shall not affect the obligation of the Borrower to repay such Loan and (B) in exercising such option, such Lender shall use its reasonable efforts to minimize any increased costs to the Borrower resulting therefrom (which obligation of the Lender shall not require it to take, or refrain from taking, actions that it determines would result in increased costs for which it will not be compensated hereunder or that it determines would be otherwise disadvantageous to it and in the event of such request for costs for which compensation is provided under this Agreement, the provisions of Section 2.10 shall apply).  On the Revolving Credit Maturity Date with respect to a given Class of Commitments, all Revolving Loans with respect to such Class shall be repaid in full.

 

(c)                            Subject to and upon the terms and conditions herein set forth, the Swingline Lender in its individual capacity agrees, at any time and from time to time on and after the Closing Date and prior to the Swingline Maturity Date, to make a loan or loans (each a “Swingline Loan” and, collectively the “Swingline Loans”) to the Borrower in Dollars, which Swingline Loans (i) shall be ABR Loans, (ii) shall have the benefit of the provisions of Section 2.1(d) (iii) shall not exceed at any time outstanding the Swingline Commitment, (iv) shall not, after giving effect thereto and to the application of the proceeds thereof, result at any time in the aggregate amount of the Lenders’ Revolving Credit Exposures at such time exceeding the Revolving Credit Commitment then in effect and (v) may be repaid and reborrowed in accordance with the provisions hereof.  On the Swingline Maturity Date, all Swingline Loans shall be repaid in full.  The Swingline Lender shall not make any Swingline Loan after receiving a written notice from Holdings, the Borrower, the Administrative Agent or the Required Revolving Credit Lenders stating that a Default or Event of Default exists and is continuing until such time as the Swingline Lender shall have received written notice of (i) rescission of all such notices from the party or parties originally delivering such notice or (ii) the waiver of such Default or Event of Default in accordance with the provisions of Section 13.1.

 

(d)                                 On any Business Day, the Swingline Lender may, in its sole discretion, give notice to each Revolving Credit Lender that all then-outstanding Swingline Loans shall be funded with a Borrowing of Revolving Loans denominated in Dollars, in which case Revolving Loans denominated in Dollars constituting ABR Loans (each such Borrowing, a “Mandatory Borrowing”) shall be made on the immediately succeeding Business Day by each Revolving Credit Lender pro rata based on each Lender’s Revolving Credit Commitment Percentage, and the proceeds thereof shall be applied directly to the Swingline Lender to repay the Swingline Lender for such outstanding Swingline Loans.  Each Revolving Credit Lender hereby irrevocably agrees to make such Revolving Loans upon one Business Day’s notice pursuant to each Mandatory Borrowing in the amount and in the manner specified in the preceding sentence and on the date specified to it in writing by the Swingline Lender notwithstanding (i) that the amount of the Mandatory Borrowing may not comply with the minimum amount for each Borrowing specified in Section 2.2, (ii) whether any conditions specified in Section 7 are then satisfied, (iii) whether a Default or an Event of Default has occurred and is continuing, (iv) the date of such Mandatory Borrowing or (v) any reduction in the Total Revolving Credit Commitment after any such Swingline Loans were made.  In the event that, in the sole judgment of the Swingline Lender, any Mandatory Borrowing cannot for any reason be made on the date otherwise required above (including as a result of the commencement of a proceeding under the Bankruptcy Code in respect of Holdings or the Borrower), each Revolving Credit Lender hereby agrees that it shall forthwith purchase from the Swingline Lender (without recourse or warranty) such participation of the outstanding Swingline Loans

 

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as shall be necessary to cause the Lenders to share in such Swingline Loans ratably based upon their respective Revolving Credit Commitment Percentages; provided that all principal and interest payable on such Swingline Loans shall be for the account of the Swingline Lender until the date the respective participation is purchased and, to the extent attributable to the purchased participation, shall be payable to such Revolving Credit Lender purchasing the same from and after such date of purchase.

 

2.2                               Minimum Amount of Each Borrowing; Maximum Number of Borrowings.  The aggregate principal amount of each Borrowing of Term Loans or Revolving Loans shall be in a minimum amount of at least the Minimum Borrowing Amount for such Type of Loans and in a multiple of $100,000 (or the Dollar Equivalent thereof) in excess thereof and Swingline Loans shall be in a minimum amount of $500,000 and in a multiple of $100,000 in excess thereof (except that Mandatory Borrowings shall be made in the amounts required by Section 2.1(d)) and Revolving Loans to reimburse the Letter of Credit Issuer with respect to any Unpaid Drawing shall be made in the amounts required by Section 3.3 or Section 3.4, as applicable).  More than one Borrowing may be incurred on any date; provided that at no time shall there be outstanding more than ten Borrowings of LIBOR Loans under this Agreement.

 

2.3                               Notice of Borrowing.

 

(a)                           The Borrower shall give the Administrative Agent at the Administrative Agent’s Office (A) prior to 11:00 a.m. (New York City time) at least three Business Days’ prior written notice in the case of a Borrowing of Initial Term Loans to be made on the Closing Date if such Initial Term Loans are to be LIBOR Loans and (B) prior to 11:00 a.m. (New York City time) on the date of such Borrowing written notice in the case of a Borrowing of Initial Term Loans made on the Closing Date if such Initial Term Loans are to be ABR Loans.  Such notice (a “Notice of Borrowing”) shall specify (A) the aggregate principal amount of the Term Loans to be made, (B) the date of the Borrowing (which shall be the Closing Date) and (C) whether the Term Loans shall consist of ABR Loans and/or LIBOR Loans and, if the Term Loans are to include LIBOR Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall promptly give each Lender written notice of the proposed Borrowing of Term Loans, of such Lender’s proportionate share thereof and of the other matters covered by the related Notice of Borrowing.

 

(b)                           Whenever the Borrower desires to incur Revolving Loans (other than Mandatory Borrowings or borrowings to repay Unpaid Drawings), it shall give the Administrative Agent at the Administrative Agent’s Office, (i) prior to 11:00 a.m. (New York City Time) at least three Business Days’ prior written notice of each Borrowing of LIBOR Loans that are Revolving Loans denominated in Dollars, (ii) prior to 11:00 a.m. (New York City Time) at least four Business Days’ prior written notice of each Borrowing of Revolving Loans denominated in Euros or an Alternative Currency and (iii) prior to 10:00 a.m. (New York City time) on the date of such Borrowing prior written notice of each Borrowing of Revolving Loans that are ABR Loans.  Each such Notice of Borrowing, except as otherwise expressly provided in Section 2.10, shall specify (i) the aggregate principal amount of the Revolving Loans to be made pursuant to such Borrowing, (ii) the date of Borrowing (which shall be a Business Day) and (iii) whether the respective Borrowing shall consist of ABR Loans (in the case of Revolving Loans denominated in Dollars) or LIBOR Loans and, if LIBOR Loans, (A) the Interest Period to be initially applicable thereto and (B) whether such LIBOR Loans are to be made in Dollars, Euro or an Alternative Currency (if no currency is specified the Revolving Loans shall be deemed to have been requested in Dollars).  The Administrative Agent shall promptly give each Revolving Credit Lender written notice of each proposed Borrowing of Revolving Loans, of such Lender’s Revolving Credit Commitment Percentage thereof, of the identity of the Borrower, and of the other matters covered by the related Notice of Borrowing.

 

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(c)                            Whenever the Borrower desires to incur Swingline Loans hereunder, it shall give the applicable Swingline Lender for Swingline Loans denominated in Dollars written notice with a copy to the Administrative Agent of each Borrowing of Swingline Loans prior to in the case of Swingline Loans denominated in Dollars, 1:30 p.m. (New York City time) on the date of such Borrowing.  Each such notice shall specify (i) the aggregate principal amount of the Swingline Loans to be made pursuant to such Borrowing and (ii) the date of Borrowing (which shall be a Business Day).

 

(d)                           Mandatory Borrowings shall be made upon the notice specified in Section 2.1(d) with the Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of Mandatory Borrowings as set forth in such Section.

 

(e)                            Borrowings to reimburse Unpaid Drawings shall be made upon the notice specified in Section 3.4(a).

 

(f)                             Without in any way limiting the obligation of the Borrower to confirm in writing any notice it shall give hereunder by telephone (which such obligation is absolute), the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be from an Authorized Officer of Holdings or the Borrower.

 

2.4                               Disbursement of Funds.

 

(a)                           No later than 2:00 p.m. (New York City time) on the date specified in each Notice of Borrowing (including Mandatory Borrowings), each Lender shall make available its pro rata portion, if any, of each Borrowing requested to be made on such date in the manner provided below; provided that on the Closing Date, such funds may be made available at such earlier time as may be agreed among the Lenders, Holdings and the Administrative Agent for the purpose of consummating the Transactions; provided, further, that all Swingline Loans shall be made available to the Borrower in the full amount thereof by the Swingline Lender no later than 4:00 p.m. (New York City time), on the date requested.

 

(b)                           Each Lender shall make available all amounts it is to fund to the Borrower under any Borrowing for its applicable Commitments, and in immediately available funds, to the Administrative Agent at the Administrative Agent’s Office and the Administrative Agent will (except in the case of Mandatory Borrowings and Borrowings to repay Unpaid Drawings) make available to the Borrower, by depositing to an account designated by Holdings or the Borrower to the Administrative Agent the aggregate of the amounts so made available in the applicable currency.  Unless the Administrative Agent shall have been notified by any Lender prior to the date of any such Borrowing that such Lender does not intend to make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole discretion and without any obligation to do so) make available to the Borrower a corresponding amount.  If such corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent has made available such amount to the Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such Lender.  If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor the Administrative Agent shall promptly notify the Borrower and the Borrower shall immediately pay such corresponding amount to the Administrative Agent in the applicable currency.  The Administrative Agent shall also be entitled to recover from such Lender or the Borrower interest on such corresponding amount in respect of each day

 

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from the date such corresponding amount was made available by the Administrative Agent to the Borrower to the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if paid by such Lender, the Overnight Rate or (ii) if paid by the Borrower, the then-applicable rate of interest or fees, calculated in accordance with Section 2.8, for the respective Loans.

 

(c)                                  Nothing in this Section 2.4 shall be deemed to relieve any Lender from its obligation to fulfill its commitments hereunder or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender to fulfill its commitments hereunder).

 

2.5                               Repayment of Loans; Evidence of Debt.

 

(a)                                 The Borrower shall repay to the Administrative Agent, for the benefit of the Initial Term Loan Lenders, on the Initial Term Loan Maturity Date, the then outstanding Initial Term Loans made to the Borrower, in Dollars.  The Borrower shall repay to the Administrative Agent for the benefit of the Revolving Credit Lenders, on the Revolving Credit Maturity Date with respect to a given Class of Commitments, the then outstanding Revolving Loans with respect to such Class, in the currency in which such Revolving Loans are denominated.  The Borrower shall repay to the Administrative Agent, for the benefit of the applicable Extending Lenders, on the applicable maturity date for Extended Term Loans, the then outstanding Extended Term Loans made to the Borrower, in Dollars.  The Borrower shall repay to the Administrative Agent, for the benefit of the New Term Loan Lenders, on the New Term Loan Maturity Date, the then outstanding New Term Loans made to the Borrower, in Dollars.  The Borrower shall repay to the Administrative Agent, for the benefit of Lenders holding any Replacement Term Loans, on the applicable maturity date for such Replacement Term Loans, the then outstanding Replacement Term Loans made to the Borrower, in Dollars.  The Borrower shall repay to the Administrative Agent for the benefit of the Revolving Credit Lenders with Extended Revolving Credit Loans, on each Extended Revolving Loan Maturity Date, the then outstanding amount of Extended Revolving Credit Loans in the currency in which such Revolving Loans are denominated.  The Borrower shall repay to the Administrative Agent for the benefit of the Incremental Revolving Loan Lenders, on each Incremental Revolving Credit Maturity Date, the then outstanding amount of Incremental Revolving Credit Loans in the currency in which such Revolving Loans are denominated.  The Borrower shall repay to the Swingline Lender, on the Swingline Maturity Date, the then outstanding Swingline Loans in Dollars.

 

(b)                                 The Borrower shall repay to the Administrative Agent, for the benefit of the Initial Term Loan Lenders, on each date set forth below (or, if not a Business Day, the immediately preceding Business Day) (each, an “Initial Term Loan Repayment Date”), a principal amount in respect of the Initial Term Loans equal to the applicable amount set forth below opposite such Initial Term Loan Repayment Date (each, an “Initial Term Loan Repayment Amount”):

 

	
Initial Term Loan
   Repayment Date
    	
 
    	
Initial Term Loan
   Repayment Amount
    	
 
    
	
March 31, 2017
    	
 
    	
$7,812,500.00
    	
 
    
	
June 30, 2017
    	
 
    	
$7,812,500.00
    	
 
    
	
September 30, 2017
    	
 
    	
$7,812,500.00
    	
 
    
	
December 31, 2017
    	
 
    	
$7,812,500.00
    	
 
    
	
March 31, 2018
    	
 
    	
$11,718,750.00
    	
 
    
	
June 30, 2018
    	
 
    	
$11,718,750.00
    	
 
    
	
September 30, 2018
    	
 
    	
$11,718,750.00
    	
 
    
	
December 31, 2018
    	
 
    	
$11,718,750.00
    	
 
    

 

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Initial Term Loan
   Repayment Date
    	
 
    	
Initial Term Loan
   Repayment Amount
    	
 
    
	
March 31, 2019
    	
 
    	
$11,718,750.00
    	
 
    
	
June 30, 2019
    	
 
    	
$11,718,750.00
    	
 
    
	
September 30, 2019
    	
 
    	
$11,718,750.00
    	
 
    
	
December 31, 2019
    	
 
    	
$11,718,750.00
    	
 
    
	
March 31, 2020
    	
 
    	
$15,625,000.00
    	
 
    
	
June 30, 2020
    	
 
    	
$15,625,000.00
    	
 
    
	
September 30, 2020
    	
 
    	
$15,625,000.00
    	
 
    
	
December 31, 2020
    	
 
    	
$15,625,000.00
    	
 
    
	
March 31, 2021
    	
 
    	
$19,531,250.00
    	
 
    
	
June 30, 2021
    	
 
    	
$19,531,250.00
    	
 
    
	
September 30, 2021
    	
 
    	
$19,531,250.00
    	
 
    
	
Initial Term Loan Maturity Date
    	
 
    	
Remaining outstanding   amounts
    	
 
    

 

(c)                                  In the event that any New Term Loans are made, such New Term Loans shall, subject to Section 2.14(d), be repaid by the Borrower in the amounts (each, a “New Term Loan Repayment Amount”) and on the dates (each, a “New Term Loan Repayment Date”) set forth in the applicable Joinder Agreement.  In the event that any Incremental Revolving Credit Loans are made, such Incremental Revolving Credit Loans shall, subject to Section 2.14(e), be repaid by the Borrower in the amounts (each, a “New Revolving Loan Repayment Amount”) and on the dates (each a “New Revolving Loan Repayment Date”) set forth in the applicable Joinder Agreement.  In the event that any Extended Term Loans are established, such Extended Term Loans shall, subject to Section 2.14(g), be repaid by the Borrower in the amounts (each such amount with respect to any Extended Repayment Date, an “Extended Term Loan Repayment Amount”) and on the dates (each, an “Extended Repayment Date”) set forth in the applicable Extension Amendment.  In the event that any Replacement Term Loans are established, such Replacement Term Loans shall be repaid by the Borrower in the amount and on the dates set forth in the applicable amendment or other definitive documentation pursuant to which such Replacement Term Loans are established.  In the event that any Extended Revolving Credit Loans are made, such Extended Revolving Credit Loans shall, subject to Section 2.14(g), be repaid by the Borrower in the amounts and on the dates set forth in the applicable Extension Amendment.

 

(d)                                 Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to the appropriate lending office of such Lender resulting from each Loan made by such lending office of such Lender from time to time, including the amounts of principal and interest payable and paid to such lending office of such Lender from time to time under this Agreement.

 

(e)                                  The Administrative Agent shall maintain the Register pursuant to Section 13.6(b), and a subaccount for each Lender, in which Register and subaccounts (taken together) shall be recorded (i) the amount of each Loan made hereunder, whether such Loan is an Initial Term Loan, New Term Loan, Initial Revolving Credit Loan, New Revolving Credit Loan, Additional Revolving Credit Loan, Incremental Revolving Credit Loan,  Extended Revolving Credit Loan, Extended Term Loan, Replacement Term Loan or Swingline Loan, as applicable, the Type of each Loan made, the currency in which made, the name of the Borrower and the Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof.

 

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(f)                                   The entries made in the Register and accounts and subaccounts maintained pursuant to Section 2.5(d) and 2.5(e) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that, in the event of any inconsistency between the Register and any such account or subaccount, the Register shall govern; provided, further, that the failure of any Lender, the Administrative Agent or the Swingline Lender to maintain such account, such Register or subaccount, as applicable, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in accordance with the terms of this Agreement.

 

(g)                                  The Borrower hereby agrees that, upon request of any Lender at any time and from time to time after the Borrower has made an initial borrowing hereunder, the Borrower shall provide to such Lender, at the Borrower’s own expense, a promissory note, substantially in the form of Exhibit H-1 or Exhibit H-2, as applicable, evidencing the Initial Term Loans, New Term Loans, Extended Term Loans, Replacement Term Loans, Revolving Loans and Swingline Loans owing to such Lender.  Thereafter, unless otherwise agreed to by the applicable Lender, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 13.6) be represented by one or more promissory notes in such form payable to the payee named therein (or, if requested by such payee, to such payee and its registered assigns).

 

2.6                               Conversions and Continuations.

 

(a)                           Subject to the penultimate sentence of this clause (a), (x) the Borrower shall have the option on any Business Day to convert all or a portion equal to at least $5,000,000 (or the Dollar Equivalent thereof) of the outstanding principal amount of Term Loans of one Type or Revolving Loans of one Type into a Borrowing or Borrowings of another Type and (y) the Borrower shall have the option on any Business Day to continue the outstanding principal amount of any LIBOR Loans as LIBOR Loans for an additional Interest Period; provided that (i) no partial conversion of LIBOR Loans shall reduce the outstanding principal amount of LIBOR Loans made pursuant to a single Borrowing to less than the Minimum Borrowing Amount, (ii) ABR Loans may not be converted into LIBOR Loans if a Default or Event of Default is in existence on the date of the conversion and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such conversion, (iii) LIBOR Loans may not be continued as LIBOR Loans for an additional Interest Period if a Default or Event of Default is in existence on the date of the proposed continuation and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such continuation and (iv) Borrowings resulting from conversions pursuant to this Section 2.6 shall be limited in number as provided in Section 2.2.  Each such conversion or continuation shall be effected by the Borrower by giving the Administrative Agent at the Administrative Agent’s Office prior to 1:00 p.m. (New York City time) at least (i) three Business Days’ notice, in the case of a continuation of or conversion to LIBOR Loans or (ii) one Business Day’s notice in the case of a conversion into ABR Loans prior written notice (each, a “Notice of Conversion or Continuation”) specifying the Loans to be so converted or continued, the Type of Loans to be converted or continued into and, if such Loans are to be converted into or continued as LIBOR Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall give each applicable Lender notice as promptly as practicable of any such proposed conversion or continuation affecting any of its Loans.

 

(b)                           If any Default or Event of Default is in existence at the time of any proposed continuation of any LIBOR Loans denominated in Dollars and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such continuation, such LIBOR Loans shall be automatically converted on the last day of the current Interest Period into ABR Loans.  If, upon the expiration of any Interest Period in respect of LIBOR Loans (other than Borrowings 

 

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of LIBOR Loans denominated in Euro or Alternative Currencies), the Borrower has failed to elect a new Interest Period to be applicable thereto as provided in clause (a), the Borrower shall be deemed to have elected to convert such Borrowing of LIBOR Loans into a Borrowing of ABR Loans, effective as of the expiration date of such current Interest Period.  Notwithstanding the foregoing, with respect to the Borrowings of LIBOR Loans denominated in Euro or Alternative Currencies, in connection with the occurrence of any of the events described in the preceding two sentences, at the expiration of the then current Interest Period each such Borrowing shall be automatically continued as a Borrowing of LIBOR Loans with an Interest Period of one month.

 

(c)                            No Loan may be converted into or continued as a Loan denominated in a different currency.

 

2.7                               Pro Rata Borrowings.  Each Borrowing of Initial Term Loans under this Agreement shall be made by the Initial Term Loan Lenders pro rata on the basis of their then-applicable Initial Term Loan Commitments. Each Borrowing of Revolving Loans under this Agreement shall be made by the Revolving Credit Lenders and shall be allocated pro rata relative to the Commitments across the Revolving Credit Facility.  Each Borrowing of New Term Loans and Replacement Term Loans under this Agreement shall be made by the Lenders pro rata on the basis of their then-applicable New Term Loan Commitments or Replacement Term Loan Commitments, as applicable. It is understood that (a) no Lender shall be responsible for any default by any other Lender in its obligation to make Loans hereunder and that each Lender severally but not jointly shall be obligated to make the Loans provided to be made by it hereunder, regardless of the failure of any other Lender to fulfill its commitments hereunder and (b) other than as expressly provided herein with respect to a Defaulting Lender, failure by a Lender to perform any of its obligations under any of the Credit Documents shall not release any Person from performance of its obligation under any Credit Document.

 

2.8                               Interest.

 

(a)                                 The unpaid principal amount of each ABR Loan shall bear interest from the date of the Borrowing thereof until maturity (whether by acceleration or otherwise) thereof at a rate per annum that shall at all times be the Applicable Margin for ABR Loans plus the ABR, in each case, in effect from time to time.

 

(b)                                 The unpaid principal amount of each LIBOR Loan shall bear interest from the date of the Borrowing thereof until maturity (whether by acceleration or otherwise) at a rate per annum that shall at all times be the Applicable Margin for LIBOR Loans plus the relevant Adjusted LIBOR Rate.

 

(c)                                  If an Event of Default has occurred and is continuing, if all or a portion of (i) the principal amount of any Loan or (ii) any interest payable thereon or any other amount payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum (the “Default Rate”) that is (x) in the case of overdue principal, the rate that would otherwise be applicable thereto plus 2.00% or (y) in the case of any other overdue amount, including overdue interest, to the extent permitted by applicable law, the rate described in Section 2.8(a) for the applicable Class plus 2.00% from the date of such non-payment to the date on which such amount is paid in full (after as well as before judgment).

 

(d)                                 Interest on each Loan shall accrue from and including the date of any Borrowing to but excluding the date of any repayment thereof and shall be payable in the same currency in which the Loan is denominated; provided that any Loan that is repaid on the same date on which it is made shall bear interest for one day.  Except as provided below, interest shall be payable (i) in respect of each ABR Loan, 

 

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quarterly in arrears on the last Business Day of each March, June, September and December, (ii) in respect of each LIBOR Loan, on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on each date occurring at three-month intervals after the first day of such Interest Period and (iii) in respect of each Loan, (A) on any prepayment in respect of LIBOR Loans, (B) at maturity (whether by acceleration or otherwise) and (C) after such maturity, on demand.

 

(e)                                  All computations of interest hereunder shall be made in accordance with Section 5.5.

 

(f)                                   The Administrative Agent, upon determining the interest rate for any Borrowing of LIBOR Loans, shall promptly notify the Borrower and the relevant Lenders thereof.  Each such determination shall, absent clearly demonstrable error, be final and conclusive and binding on all parties hereto.

 

2.9                               Interest Periods.  At the time Holdings or the Borrower gives a Notice of Borrowing or Notice of Conversion or Continuation in respect of the making of, or conversion into or continuation as, a Borrowing of LIBOR Loans in accordance with Section 2.6(a) Holdings or the Borrower shall give the Administrative Agent written notice of the Interest Period applicable to such Borrowing, which Interest Period shall, at the option of Holdings or the Borrower be a one, two, three or six month period (or if available to all the Lenders making such LIBOR Loans as determined by such Lenders in good faith based on prevailing market conditions, a twelve month or shorter period).

 

Notwithstanding anything to the contrary contained above:

 

(a)                           the initial Interest Period for any Borrowing of LIBOR Loans shall commence on the date of such Borrowing (including the date of any conversion from a Borrowing of ABR Loans) and each Interest Period occurring thereafter in respect of such Borrowing shall commence on the day on which the next preceding Interest Period expires;

 

(b)                           if any Interest Period relating to a Borrowing of LIBOR Loans begins on the last Business Day of a calendar month or begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of the calendar month at the end of such Interest Period;

 

(c)                            if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided that if any Interest Period in respect of a LIBOR Loan would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day; and

 

(d)                           no Borrower shall be entitled to elect any Interest Period in respect of any LIBOR Loan if such Interest Period would extend beyond the Maturity Date of such Loan.

 

2.10                        Increased Costs, Illegality, Etc.

 

(a)                           In the event that (x) in the case of clause (i) below, the Administrative Agent and (y) in the case of clauses (ii) and (iii) below, the Required Term Loan Lenders (with respect to Term Loans) or the Required Revolving Credit Lenders (with respect to Revolving Credit Commitments) shall have reasonably determined (which determination shall, absent clearly demonstrable error, be final and conclusive and binding upon all parties hereto):

 

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(i)                                     on any date for determining the LIBOR Rate for any Interest Period that (x) deposits in the principal amounts and currencies of the Loans comprising such LIBOR Borrowing are not generally available in the relevant market or (y) by reason of any changes arising on or after the Closing Date affecting the interbank LIBOR market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of LIBOR Rate; or

 

(ii)                                  at any time, that such Lenders shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any LIBOR Loans (including any increased costs or reductions attributable to Taxes, other than any increase or reduction attributable to Taxes described in Sections 2.10(d)(i) and (ii) because of (x) any change since the Closing Date in any applicable law, governmental rule, regulation, guideline or order (or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, guideline or order), such as, for example, without limitation, a change in official reserve requirements, and/or (y) other circumstances affecting the interbank LIBOR market or the position of such Lenders in such market; or

 

(iii)                               at any time, that the making or continuance of any LIBOR Loan has become unlawful by compliance by such Lenders in good faith with any law, governmental rule, regulation, guideline or order (or would conflict with any such governmental rule, regulation, guideline or order not having the force of law even though the failure to comply therewith would not be unlawful), or has become impracticable as a result of a contingency occurring after the Closing Date that materially and adversely affects the interbank LIBOR market;

 

then, and in any such event, such Required Term Loan Lenders or Required Revolving Credit Lenders, as applicable (or the Administrative Agent, in the case of clause (i) above) shall within a reasonable time thereafter give notice (if by telephone, confirmed in writing) to the Borrower and to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause (i) above, LIBOR Loans shall no longer be available until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist (which notice the Administrative Agent agrees to give at such time when such circumstances no longer exist), and any Notice of Borrowing or Notice of Conversion given by Holdings or the Borrower with respect to LIBOR Loans that have not yet been incurred shall be deemed rescinded by Holdings or the Borrower, (y) in the case of clause (ii) above, the Borrower shall pay to such Lenders, promptly after receipt of written demand therefor such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Required Term Loan Lenders or Required Revolving Credit Lenders, as applicable, in their reasonable discretion shall determine) as shall be required to compensate such Lenders for such actual increased costs or reductions in amounts receivable hereunder (it being agreed that a written notice as to the additional amounts owed to such Lenders, showing in reasonable detail the basis for the calculation thereof, submitted to the Borrower by such Lenders shall, absent clearly demonstrable error, be final and conclusive and binding upon all parties hereto) and (z) in the case of subclause (iii) above, the Borrower shall take one of the actions specified in subclause (x) or (y), as applicable, of Section 2.10(b) promptly and, in any event, within the time period required by law.

 

(b)                           At any time that any LIBOR Loan is affected by the circumstances described in Section 2.10(a)(ii) or 2.10(a)(iii) the Borrower may (and in the case of a LIBOR Loan affected pursuant to Section 2.10(a)(iii) shall) either (x) if the affected LIBOR Loan is then being made pursuant to a Borrowing, cancel such Borrowing by giving the Administrative Agent written notice thereof on the same date that the Borrower was notified by Lenders pursuant to Section 2.10(a)(ii) or 2.10(a)(iii) or (y) 

 

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if the affected LIBOR Loan is then outstanding, upon at least three Business Days’ notice to the Administrative Agent, require the affected Lender to convert each such Dollar LIBOR Loan into an ABR Loan (and, if any LIBOR Loan is outstanding in a currency other than Dollars, promptly repay such Loan); provided that if more than one Lender is affected at any time, then all affected Lenders must be treated in the same manner pursuant to this Section 2.10(b).

 

(c)                            If, after the Closing Date, any Change in Law relating to capital adequacy or liquidity of any Lender or compliance by any Lender or its parent with any Change in Law relating to capital adequacy or liquidity occurring after the Closing Date, has or would have the effect of reducing the actual rate of return on such Lender’s or its parent’s or its Affiliate’s capital or assets as a consequence of such Lender’s commitments or obligations hereunder to a level below that which such Lender or its parent or its Affiliate could have achieved but for such Change in Law (taking into consideration such Lender’s or its parent’s policies with respect to capital adequacy or liquidity), then from time to time, promptly after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such actual additional amount or amounts as will compensate such Lender or its parent for such actual reduction, it being understood and agreed, however, that a Lender shall not be entitled to such compensation (i) as a result of such Lender’s compliance with, or pursuant to any request or directive to comply with, any law, rule or regulation as in effect on the Closing Date (provided that, for purposes of this Section 2.10(c), (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith 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 United States or foreign regulatory authorities pursuant to Basel III, shall in each case described in clauses (x) and (y) above be deemed to have gone into effect after the Closing Date, regardless of the date enacted, adopted, issued or implemented) or (ii) to the extent such Lender is not imposing such charges on or requesting such compensation from borrowers (similarly situated to the Borrower hereunder) under comparable syndicated credit facilities similar to the Credit Facilities. Each Lender, upon determining in good faith that any additional amounts will be payable pursuant to this Section 2.10(c) will give prompt written notice thereof to the Borrower, which notice shall set forth in reasonable detail the basis of the calculation of such additional amounts, although the failure to give any such notice shall not, subject to Section 2.13, release or diminish the Borrower’s obligations to pay additional amounts pursuant to this Section 2.10(c) upon receipt of such notice.

 

(d)                           It is understood that this Section 2.10 shall not apply to (i) Taxes indemnifiable under Section 5.4 or (ii) Excluded Taxes.

 

2.11                        Compensation.  If (a) any payment of principal of any LIBOR Loan is made by the Borrower to or for the account of a Lender other than on the last day of the Interest Period for such LIBOR Loan as a result of a payment or conversion pursuant to Section 2.5, 2.6, 2.10, 5.1,  5.2 or 13.7, as a result of acceleration of the maturity of the Loans pursuant to Section 11 or for any other reason, (b) any Borrowing of LIBOR Loans is not made as a result of a withdrawn Notice of Borrowing or a failure to satisfy borrowing conditions, (c) any ABR Loan is not converted into a LIBOR Loan as a result of a withdrawn Notice of Conversion or Continuation, (d) any LIBOR Loan is not continued as a LIBOR Loan as a result of a withdrawn Notice of Conversion or Continuation or (e) any prepayment of principal of any LIBOR Loan is not made as a result of a withdrawn notice of prepayment pursuant to Section 5.1 or 5.2, the Borrower shall, after receipt of a written request by such Lender (which request shall set forth in reasonable detail the basis for requesting such amount), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that such Lender may reasonably incur as a result of such payment, failure to convert, failure to borrow, failure to continue or failure to prepay, including any loss, cost or expense (excluding loss of

 

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anticipated profits) actually incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such LIBOR Loan.

 

2.12                        Change of Lending Office.  Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b), 3.5 or 5.4 with respect to such Lender, it will, if requested by the Borrower use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event; provided that such designation is made on such terms that such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving rise to the operation of any such Section.  Nothing in this Section 2.12 shall affect or postpone any of the obligations of the Borrower or the right of any Lender provided in Section 2.10, 3.5 or 5.4.

 

2.13                        Notice of Certain Costs.  Notwithstanding anything in this Agreement to the contrary, to the extent any notice required by Section 2.10, 2.11 or 3.5 is given by any Lender more than 120 days after such Lender has knowledge (or should have had knowledge) of the occurrence of the event giving rise to the additional cost, reduction in amounts, loss or other additional amounts described in such Sections, such Lender shall not be entitled to compensation under Section 2.10, 2.11 or 3.5, as the case may be, for any such amounts incurred or accruing prior to the 121st day prior to the giving of such notice to the Borrower (except that if the Change in Law or other event giving rise giving rise to the additional cost, reduction in amounts, loss or other additional amounts described in such Sections is retroactive, then the 120-day period referred to above shall be extended to include the period of retroactive effect thereof).

 

2.14                        Incremental Facilities.

 

(a)                                 The Borrower may, by written notice to the Administrative Agent, elect to request the establishment of one or more (x) additional tranches of term loans or increases in Term Loans of any Class (the commitments thereto, the “New Term Loan Commitments”), (y) increases in Revolving Credit Commitments of any Class (the “New Revolving Credit Commitments”) and/or (z) additional tranches of Revolving Credit Commitments (the “Additional Revolving Credit Commitments” and, together with the New Revolving Credit Commitments, the “Incremental Revolving Credit Commitments”; together with the New Term Loan Commitments and the New Revolving Credit Commitments, the “New Loan Commitments”), by an aggregate amount not in excess of the Maximum Incremental Facilities Amount in the aggregate and not less than $25,000,000 individually (or such lesser amount as (x) may be approved by the Administrative Agent or (y) shall constitute the difference between the Maximum Incremental Facilities Amount and all such New Loan Commitments obtained on or prior to such date).  Each such notice shall specify the date (each, an “Increased Amount Date”) on which the Borrower proposes that the New Loan Commitments shall be effective. In connection with the incurrence of any Indebtedness under this Section 2.14, at the request of the Administrative Agent, the Borrower shall provide to the Administrative Agent a certificate certifying that the New Loan Commitments do not exceed the Maximum Incremental Facilities Amount, which certificate shall be in reasonable detail and shall provide the calculations and basis therefor.  The Borrower may approach any Lender or any Person (other than a natural Person) to provide all or a portion of the New Loan Commitments, subject, if applicable, to the proviso to Section 2.14(b); provided that (x) any Lender offered or approached to provide all or a portion of the New Loan Commitments may elect or decline, in its sole discretion, to provide a New Loan Commitment, (y) if any Affiliated Lender provides any New Term Loan Commitments or Loans thereunder, such Loans and Affiliated Lender shall be subject to Section 13.6(h) and shall be treated for such purpose as if it had purchased its Loan by assignment and (z) no Affiliated Lender may provide any Incremental Revolving Credit Commitment.  In each case, such New Loan Commitments shall become effective as of the applicable Increased Amount Date; provided that (i) no Event of Default (except in connection with an acquisition or investment (including any Permitted 

 

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Acquisition or Investment), no Event of Default under Section 11.1(a) or Section 11.1(e)) shall exist on such Increased Amount Date before or after giving effect to such New Loan Commitments, as applicable, and subject in each case to Section 1.12, (ii) all representations and warranties made by any Credit Party contained herein or in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the applicable Increased Amount Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date,(provided that any such representation and warranty which is qualified by materiality, Material Adverse Effect or similar language shall be true and correct in all respects) (provided that, in the case of any New Term Loan Commitments incurred in connection with a Limited Condition Acquisition, such representations and warranties shall be limited to certain specified representations and warranties consistent with customary “SunGard” limitations), (iii) Holdings is in compliance, after giving Pro Forma Effect to the incurrence of any such New Loan Commitments (and assuming that any Incremental Revolving Credit Commitments are fully drawn and without netting any cash proceeds of any Loans made under such New Loan Commitments), with the financial covenants set forth in Sections 10.7 and 10.8 calculated as of the most recent period of four (4) consecutive fiscal quarters for which Section 9.1 Financial Statements have been delivered, (iv) the New Loan Commitments shall be effected pursuant to one or more Joinder Agreements executed and delivered by the Borrower and Administrative Agent, and each of which shall be recorded in the Register and shall be subject to the requirements set forth in Section 5.4(e) and (v) the Borrower shall make any payments required pursuant to Section 2.11 in connection with the New Loan Commitments, as applicable.  No Lender shall have any obligation to provide any Commitments pursuant to this Section 2.14.  Any New Term Loans made on an Increased Amount Date shall, at the election of the Borrower and agreed to by Lenders providing such New Term Loan Commitments, be designated as (a) a separate series (a “Series”) of New Term Loans for all purposes of this Agreement or (b) as part of a Series of existing Term Loans (as long as such New Term Loans are fungible with such existing Term Loans) for all purposes of this Agreement.  On and after the Increased Amount Date, Loans shall be designated a separate Class of Additional Revolving Credit Loans for all purposes of this Agreement.

 

(b)                                 On any Increased Amount Date on which Incremental Revolving Credit Commitments are effected, subject to the satisfaction of the foregoing terms and conditions, (a) with respect to New Revolving Credit Commitments, each of the Lenders with Revolving Credit Commitments of such Class shall assign to each Lender with a New Revolving Credit Commitment (each, a “New Revolving Loan Lender”) and each of the New Revolving Loan Lenders shall purchase from each of the Lenders with Revolving Credit Commitments of such Class, at the principal amount thereof, such interests in the Revolving Loans outstanding on such Increased Amount Date as shall be necessary in order that, after giving effect to all such assignments and purchases, the Revolving Loans of such Class will be held by existing Revolving Credit Lenders and New Revolving Loan Lenders ratably in accordance with their Revolving Credit Commitments of such Class after giving effect to the addition of such New Revolving Credit Commitments to the Revolving Credit Commitments of such Class and (b) (i) each Incremental Revolving Credit Commitment shall be deemed for all purposes a Revolving Credit Commitment and each Loan made under a New Revolving Credit Commitment (a “New Revolving Credit Loan”) and each Loan made under an Additional Revolving Credit Commitment (an “Additional Revolving Credit Loan” and, together with New Revolving Credit Loans, “Incremental Revolving Credit Loans”) shall be deemed, for all purposes, Revolving Loans and (ii) each New Revolving Loan Lender and each Lender with an Additional Revolving Credit Commitment (each an “Additional Revolving Loan Lender” and, together with the New Revolving Loan Lenders, the “Incremental Revolving Loan Lenders”) shall become a Lender with respect to the applicable Incremental Revolving Credit Commitment and all matters relating thereto; provided that the Administrative Agent and the Letter of Credit Issuers shall have consented (not to be unreasonably withheld or delayed) to such Lender’s or Incremental Revolving Loan 

 

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Lender’s providing such applicable Incremental Revolving Credit Commitment to the extent such consent, if any, would be required under Section 13.6(b) for an assignment of Revolving Loans or Revolving Credit Commitments, as applicable, to such Lender or Incremental Revolving Loan Lender.

 

(c)                                  On any Increased Amount Date on which any New Term Loan Commitments of any Series are effective, subject to the satisfaction of the foregoing terms and conditions, (i) each Lender with a New Term Loan Commitment (each, a “New Term Loan Lender”) of any Series shall make a Loan to the Borrower (a “New Term Loan” and, together with the Incremental Revolving Credit Loans, the “Incremental Loans”) in an amount equal to its New Term Loan Commitment of such Series and (ii) each New Term Loan Lender of any Series shall become a Lender hereunder with respect to the New Term Loan Commitment of such Series and the New Term Loans of such Series made pursuant thereto.

 

(d)                                 The terms and provisions of the New Term Loans and New Term Loan Commitments of any Series shall be on terms and documentation set forth in the Joinder Agreement as determined by the Borrower and the applicable New Term Loan Lenders; provided that (i) the applicable New Term Loan Maturity Date of each Series shall be no earlier than the Initial Term Loan Maturity Date; (ii) the weighted average life to maturity of all New Term Loans shall be no shorter than the weighted average life to maturity of the then existing Initial Term Loans; (iii) the pricing, interest rate margins, discounts, premiums, rate floors, fees and amortization schedule applicable to any New Term Loans shall be determined by the Borrower and the New Term Loan Lenders thereunder; (iv) any such New Term Loan Commitments or New Term Loans shall rank equal in right of payment and of security (subject to control of remedies) with the Revolving Loans and the Term Loans and (v) to the extent such terms and documentation are not consistent with the then existing Initial Term Loans (except to the extent permitted by clause (i), (ii) or (iii) above), they shall be reasonably satisfactory to the Administrative Agent (it being understood that, (1) to the extent that any financial maintenance covenant is added for the benefit of any such Indebtedness, no consent shall be required by the Administrative Agent or any of the Lenders if such financial maintenance covenant is also added for the benefit of any corresponding Term Loans remaining outstanding after the issuance or incurrence of such Indebtedness and (2) no consent shall be required by the Administrative Agent or any of the Lenders if any such covenants or other provisions are only applicable after the Latest Term Loan Maturity Date).

 

(e)                                  Incremental Revolving Credit Commitments and Incremental Revolving Credit Loans shall be identical to the Initial Revolving Credit Commitments and the related Revolving Loans, other than the Maturity Date thereof and as set forth in this Section 2.14(e); provided that notwithstanding anything to the contrary in this Section 2.14 or otherwise:

 

(i)                                     any such Incremental Revolving Credit Commitments or Incremental Revolving Credit Loans shall rank equal in right of payment and of security with the Revolving Loans and the Term Loans,

 

(ii)                                  any such Incremental Revolving Credit Commitments or Incremental Revolving Credit Loans shall not mature earlier than the Maturity Date of the Initial Revolving Credit Commitments and related Initial Revolving Credit Loans at the time of incurrence of such Incremental Revolving Credit Commitments,

 

(iii)                               the borrowing and repayment (except for (1) repayments required upon the maturity date of the Incremental Revolving Credit Commitments and (2) repayment made in connection with a permanent repayment and termination of commitments (subject to clause (v) below)) of Loans with respect to Incremental Revolving Credit Commitments after the associated Increased Amount Date shall be made on a pro rata basis with all other Revolving Credit 

 

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Commitments,

 

(iv)                              subject to the provisions of Section 3.12 with respect to Letters of Credit which mature or expire after a maturity date when there exists Incremental Revolving Credit Commitments with a longer maturity date, all Letters of Credit shall be participated on a pro rata basis by all Lenders with Revolving Credit Commitments of the same Series in accordance with their percentage of such Revolving Credit Commitments on the applicable Increased Amount Date,

 

(v)                                 the permanent repayment of Revolving Loans with respect to, and termination of, Incremental Revolving Credit Commitments after the associated Increased Amount Date shall be made on a pro rata basis with all other Revolving Credit Commitments on such Increased Amount Date, except that the Borrower shall be permitted to permanently repay and terminate commitments of any such Class on a better than a pro rata basis as compared to any other Class with a later maturity date than such Class,

 

(vi)                              assignments and participations of Incremental Revolving Credit Commitments and Incremental Revolving Credit Loans shall be governed by the same assignment and participation provisions applicable to Revolving Credit Commitments and Revolving Loans on the applicable Increased Amount Date,

 

(vii)                           any Additional Revolving Credit Commitments may constitute a separate Class or Classes, as the case may be, of Commitments from the Classes constituting the applicable Revolving Credit Commitments prior to such Increased Amount Date,

 

(viii)                        the pricing and fees applicable to any Incremental Revolving Credit Commitments and Incremental Revolving Credit Loans shall be the same as the Initial Revolving Credit Commitments and related Revolving Loans (provided that the applicable margin applicable to the then-existing Revolving Loans may be increased if necessary to be consistent with the applicable margin applicable to any Incremental Revolving Credit Loans), and

 

(ix)                              to the extent that any financial maintenance covenant is added for the benefit of any such Indebtedness, no consent shall be required by the Administrative Agent or any of the Lenders if such financial maintenance covenant is also added for the benefit of any corresponding Loans remaining outstanding after the issuance or incurrence of such Indebtedness.

 

(f)                                   Each Joinder Agreement may, without the consent of any other Lenders, effect technical and corresponding amendments to this Agreement and the other Credit Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 2.14 (including to provide that the applicable Incremental Loans will benefit from clauses (x) and (z) of the second sentence of Section 2.14(g)(i) and clause (b) of the sixth paragraph of Section 13.1).

 

(g)                                  (i)                                     The Borrower may at any time, and from time to time, request that all or a portion of the Term Loans of any Class (an “Existing Term Loan Class”) be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of such Term Loans (any such Term Loans which have been so converted, “Extended Term Loans”) and to provide for other terms consistent with this Section 2.14(g).  In order to establish any Extended Term Loans, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such notice to each of the Lenders of the applicable Existing Term Loan Class, which such request shall be offered equally to all such Lenders) (an “Extension Request”) setting forth the 

 

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proposed terms of the Extended Term Loans to be established, which shall not be materially more restrictive to the Credit Parties (as determined in good faith by the Borrower), when taken as a whole, than the terms of the Term Loans of the applicable Existing Term Loan Class unless (x) the Lenders of the Term Loans of such applicable Existing Term Loan Class receive the benefit of such more restrictive terms or (y) any such provisions apply after the Initial Term Loan Maturity Date (a “Permitted Other Provision”); provided, however, that (x) the scheduled final maturity date shall be extended and all or any of the scheduled amortization payments of principal of the Extended Term Loans may be delayed to later dates than the scheduled amortization of principal of the Term Loans of such Existing Term Loan Class (with any such delay resulting in a corresponding adjustment to the scheduled amortization payments reflected in Section 2.5. or in the Joinder Agreement, as the case may be, with respect to the Existing Term Loan Class from which such Extended Term Loans were converted, in each case as more particularly set forth in paragraph (iv) of this Section 2.14(g) below); provided that the weighted average life to maturity of all Extended Term Loans shall be no shorter than the weighted average life to maturity of the Existing Term Loan Class from which such Extended Term Loans were converted, (y) (A) the interest margins with respect to the Extended Term Loans may be higher or lower than the interest margins for the Term Loans of such Existing Term Loan Class and/or (B) additional fees, premiums or applicable high-yield discount obligation (“AHYDO”) payments may be payable to the Lenders providing such Extended Term Loans in addition to or in lieu of any increased margins contemplated by the preceding clause (A), in each case, to the extent provided in the applicable Extension Amendment and  (z) to the extent that any Permitted Other Provision (including a financial maintenance covenant) is added for the benefit of any such Indebtedness, no consent shall be required by the Administrative Agent or any of the Lenders if such Permitted Other Provision is also added for the benefit of any corresponding Loans remaining outstanding after the issuance or incurrence of such Indebtedness or if such Permitted Other Provision applies only after the Initial Term Loan Maturity Date.  Notwithstanding anything to the contrary in this Section 2.14 or otherwise, no Extended Term Loans may be optionally prepaid prior to the date on which the Existing Term Loan Class from which they were converted is repaid in full, except in accordance with the second to last sentence of Section 5.1.  No Lender shall have any obligation to agree to have any of its Term Loans of any Existing Term Loan Class converted into Extended Term Loans pursuant to any Extension Request.  Any Extended Term Loans of any Extension Series shall constitute a separate Class of Term Loans from the Existing Term Loan Class from which they were converted.

 

(ii)                                The Borrower may at any time and from time to time request that all or a portion of the Revolving Credit Commitments of any Class, any Extended Revolving Credit Commitments and/or any Incremental Revolving Credit Commitments, each existing at the time of such request (each, an “Existing Revolving Credit Commitment” and any related revolving credit loans thereunder, “Existing Revolving Credit Loans”; each Existing Revolving Credit Commitment and related Existing Revolving Credit Loans together being referred to as an “Existing Revolving Credit Class”) be converted to extend the termination date thereof and the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of Loans related to such Existing Revolving Credit Commitments (any such Existing Revolving Credit Commitments, which have been so extended, “Extended Revolving Credit Commitments” and any related Loans, “Extended Revolving Credit Loans”) and to provide for other terms consistent with this Section 2.14(g).  In order to establish any Extended Revolving Credit Commitments, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such notice to each of the Lenders of the applicable Class of Existing Revolving Credit Commitments which such request shall be offered equally to all such Lenders) setting forth the proposed terms of the Extended Revolving Credit Commitments to be established, which shall not be materially more restrictive to the Credit Parties (as determined in good faith by the Borrower), when taken as a whole, than the terms of the applicable Existing Revolving Credit Commitments (the “Specified Existing Revolving Credit Commitment”) unless (x) the Lenders providing existing Revolving Loans receive the benefit of such

 

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more restrictive terms or (y) any such provisions apply after the Revolving Credit Termination Date, in each case, to the extent provided in the applicable Extension Amendment; provided, however, that (w) all or any of the final maturity dates of such Extended Revolving Credit Commitments may be delayed to later dates than the final maturity dates of the Specified Existing Revolving Credit Commitments, (x) (A) the interest margins with respect to the Extended Revolving Credit Commitments may be higher or lower than the interest margins for the Specified Existing Revolving Credit Commitments and/or (B) additional fees and premiums may be payable to the Lenders providing such Extended Revolving Credit Commitments in addition to or in lieu of any increased margins contemplated by the preceding clause (A), (y) the Commitment Fee Rate with respect to the Extended Revolving Credit Commitments may be higher or lower than the Commitment Fee Rate for the Specified Existing Revolving Credit Commitment and (z) to the extent that any Permitted Other Provision (including a financial maintenance covenant) is added for the benefit of any such Indebtedness, no consent shall be required by the Administrative Agent or any of the Lenders if such Permitted Other Provision is also added for the benefit of any corresponding Loans remaining outstanding after the issuance or incurrence of such Indebtedness or if such Permitted Other Provision applies only after the latest Revolving Credit Maturity Date then in effect; provided that, notwithstanding anything to the contrary in this Section 2.14(g) or otherwise, (1) the borrowing and repayment (other than in connection with a permanent repayment and termination of commitments) of Loans with respect to any Revolving Credit Commitments shall be made on a pro rata basis with all other Revolving Credit Commitments and (2) assignments and participations of Extended Revolving Credit Commitments and Extended Revolving Credit Loans shall be governed by the same assignment and participation provisions applicable to Revolving Credit Commitments and the Revolving Loans related to such Commitments set forth in Section 13.6. No Lender shall have any obligation to agree to have any of its Revolving Loans or Revolving Credit Commitments of any Existing Revolving Credit Class converted into Extended Revolving Credit Loans or Extended Revolving Credit Commitments pursuant to any Extension Request.  Any Extended Revolving Credit Commitments of any Extension Series shall constitute a separate Class of Revolving Credit Commitments from the Specified Existing Revolving Credit Commitments and from any other Existing Revolving Credit Commitments (together with any other Extended Revolving Credit Commitments so established on such date).

 

(iii)                                 Any Lender (an “Extending Lender”) wishing to have all or a portion of its Term Loans, Revolving Credit Commitments, Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments of the Existing Class or Existing Classes subject to such Extension Request converted into Extended Term Loans or Extended Revolving Credit Commitments, as applicable, shall notify the Administrative Agent (an “Extension Election”) on or prior to the date specified in such Extension Request of the amount of its Term Loans, Revolving Credit Commitments, Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments of the Existing Class or Existing Classes subject to such Extension Request that it has elected to convert into Extended Term Loans or Extended Revolving Credit Commitments, as applicable.  In the event that the aggregate amount of Term Loans, Revolving Credit Commitments, Incremental Revolving Credit Commitment or Extended Revolving Credit Commitment of the Existing Class or Existing Classes subject to Extension Elections exceeds the amount of Extended Term Loans or Extended Revolving Credit Commitments, as applicable, requested pursuant to the Extension Request, Term Loans or Revolving Credit Commitments, Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments of the Existing Class or Existing Classes subject to Extension Elections shall be converted to Extended Term Loans or Extended Revolving Credit Commitments, as applicable, on a pro rata basis based on the amount of Term Loans, Revolving Credit Commitments, Incremental Revolving Credit Commitments or Extended Revolving Credit Commitments included in each such Extension Election.  Notwithstanding the conversion of any Existing Revolving Credit Commitment into an Extended Revolving Credit Commitment, such Extended Revolving Credit Commitment shall be treated identically to all other Revolving Credit Commitments for purposes of the obligations of a Revolving Credit Lender in respect of 

 

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Swingline Loans under Section 2.1(c) and Letters of Credit under Section 3, except that the applicable Extension Amendment may provide that the  Swingline Maturity Date and/or the L/C Facility Maturity Date may be extended and the related obligations to make Swingline Loans and issue Letters of Credit may be continued so long as the Swingline Lender and/or the applicable Revolving Letter of Credit Issuers, as applicable, have consented to such extensions in their sole discretion (it being understood that no consent of any other Lender shall be required in connection with any such extension).

 

(iv)                               Extended Term Loans or Extended Revolving Credit Commitments, as applicable, shall be established pursuant to an amendment (an “Extension Amendment”) to this Agreement (which, except to the extent expressly contemplated by the final sentence of this Section 2.14(g)(iv) and notwithstanding anything to the contrary set forth in Section 13.1, shall not require the consent of any Lender other than the Extending Lenders with respect to the Extended Term Loans or Extended Revolving Credit Commitments, as applicable, established thereby) executed by the Credit Parties, the Administrative Agent and the Extending Lenders. No Extension Amendment shall provide for any tranche of Extended Term Loans or Extended Revolving Credit Commitments in an aggregate principal amount that is less than $25,000,000.  In addition to any terms and changes required or permitted by Section 2.14(g)(i), each Extension Amendment (x) shall amend the scheduled amortization payments pursuant to Section 2.5 or the applicable Joinder Agreement with respect to the Existing Term Loan Class from which the Extended Term Loans were converted to reduce each scheduled Repayment Amount for the Existing Term Loan Class in the same proportion as the amount of Term Loans of the Existing Term Loan Class is to be converted pursuant to such Extension Amendment (it being understood that the amount of any Repayment Amount payable with respect to any individual Term Loan of such Existing Term Loan Class that is not an Extended Term Loan shall not be reduced as a result thereof), (y) may, but shall not be required to, impose additional requirements (not inconsistent with the provisions of this Agreement in effect at such time) with respect to the final maturity and weighted average life to maturity of New Term Loans incurred following the date of such Extension Amendment and (z) may provide that the applicable Extended Term Loans and/or Extended Revolving Credit Loans will benefit from clauses (x) and (z) of the second sentence of Section 2.14(g)(i) and clause (b) of the sixth paragraph of Section 13.1.  Notwithstanding anything to the contrary in this Section 2.14(g) and without limiting the generality or applicability of Section 13.1 to any Section 2.14 Additional Amendments, any Extension Amendment may provide for additional terms and/or additional amendments other than those referred to or contemplated above (any such additional amendment, a “Section 2.14 Additional Amendment”) to this Agreement and the other Credit Documents; provided that such Section 2.14 Additional Amendments are within the requirements of Section 2.14(g)(i) and do not become effective prior to the time that such Section 2.14 Additional Amendments have been consented to (including, without limitation, pursuant to (1) consents applicable to holders of New Term Loans and Incremental Revolving Credit Commitments provided for in any Joinder Agreement and (2) consents applicable to holders of any Extended Term Loans or Extended Revolving Credit Commitments provided for in any Extension Amendment) by such of the Lenders, Credit Parties and other parties (if any) as may be required in order for such Section 2.14 Additional Amendments to become effective in accordance with Section 13.1.

 

(v)                               Notwithstanding anything to the contrary contained in this Agreement, (A) on any date on which any Existing Class is converted to extend the related scheduled maturity date(s) in accordance with clauses (i) and/or (ii) above (an “Extension Date”), (I) in the case of the existing Term Loans of each Extending Lender, the aggregate principal amount of such existing Term Loans shall be deemed reduced by an amount equal to the aggregate principal amount of Extended Term Loans so converted by such Lender on such date, and the Extended Term Loans shall be established as a separate Class of Term Loans (together with any other Extended Term Loans so established on such date) and (II) in the case of the Specified Existing Revolving Credit Commitments of each Extending Lender, the aggregate principal amount of such Specified Existing Revolving Credit Commitments shall be deemed reduced by an 

 

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amount equal to the aggregate principal amount of Extended Revolving Credit Commitments so converted by such Lender on such date, and such Extended Revolving Credit Commitments shall be established as a separate Class of Revolving Credit Commitments from the Specified Existing Revolving Credit Commitments and from any other Existing Revolving Credit Commitments (together with any other Extended Revolving Credit Commitments so established on such date) and (B) if, on any Extension Date, any Loans of any Extending Lender are outstanding under the applicable Specified Existing Revolving Credit Commitments, such Loans (and any related participations) shall be deemed to be allocated as Extended Revolving Credit Loans (and related participations) and Existing Revolving Credit Loans (and related participations) in the same proportion as such Extending Lender’s Specified Existing Revolving Credit Commitments to Extended Revolving Credit Commitments.

 

(vi)                               The Administrative Agent and the Lenders hereby consent to the consummation of the transactions contemplated by this Section 2.14(g) (including, for the avoidance of doubt, payment of any interest, fees or premium in respect of any Extended Term Loans and/or Extended Revolving Credit Commitments on such terms as may be set forth in the relevant Extension Amendment) and hereby waive the requirements of any provision of this Agreement (including, without limitation, any pro rata payment or amendment section) or any other Credit Document that may otherwise prohibit or restrict any such extension or any other transaction contemplated by this Section 2.14(g).

 

2.15                        Permitted Debt Exchanges.

 

(a)                           Notwithstanding anything to the contrary contained in this Agreement, pursuant to one or more offers (each, a “Permitted Debt Exchange Offer”) made from time to time by the Borrower, the Borrower may from time to time following the Closing Date consummate one or more exchanges of Term Loans for Permitted Other Indebtedness in the form of notes (such notes, “Permitted Debt Exchange Notes,” and each such exchange a “Permitted Debt Exchange”), so long as the following conditions are satisfied:  (i) no Event of Default shall have occurred and be continuing at the time the final offering document in respect of a Permitted Debt Exchange Offer is delivered to the relevant Lenders, (ii) the aggregate principal amount (calculated on the face amount thereof) of Term Loans exchanged shall equal the aggregate principal amount (calculated on the face amount thereof) of Permitted Debt Exchange Notes issued in exchange for such Term Loans, (iii) the aggregate principal amount (calculated on the face amount thereof) of all Term Loans exchanged under each applicable Class by the Borrower pursuant to any Permitted Debt Exchange shall automatically be cancelled and retired by the Borrower on the date of the settlement thereof (and, if requested by the Administrative Agent, any applicable exchanging Lender shall execute and deliver to the Administrative Agent an Assignment and Acceptance, or such other form as may be reasonably requested by the Administrative Agent, in respect thereof pursuant to which the respective Lender assigns its interest in the Term Loans being exchanged pursuant to the Permitted Debt Exchange to the Borrower for immediate cancellation), (iv) if the aggregate principal amount of all Term Loans of a given Class (calculated on the face amount thereof) tendered by Lenders in respect of the relevant Permitted Debt Exchange Offer (with no Lender being permitted to tender a principal amount of Term Loans which exceeds the principal amount thereof of the applicable Class actually held by it) shall exceed the maximum aggregate principal amount of Term Loans of such Class offered to be exchanged by the Borrower pursuant to such Permitted Debt Exchange Offer, then the Borrower shall exchange Term Loans subject to such Permitted Debt Exchange Offer tendered by such Lenders ratably up to such maximum amount based on the respective principal amounts so tendered, (v) all documentation in respect of such Permitted Debt Exchange shall be consistent with the foregoing, and all written communications generally directed to the Lenders in connection therewith shall be in form and substance consistent with the foregoing and made in consultation with the Borrower and the Administrative Agent and (vi) any applicable Minimum Tender Condition shall be satisfied.

 

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(b)                           With respect to all Permitted Debt Exchanges effected by the Borrower pursuant to this Section 2.15, (i) such Permitted Debt Exchanges (and the cancellation of the exchanged Term Loans in connection therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of Section 5.1 or 5.2 and (ii) such Permitted Debt Exchange Offer shall be made for not less than $50,000,000 in aggregate principal amount of Term Loans; provided that subject to the foregoing clause (ii) the Borrower may at its election specify as a condition (a “Minimum Tender Condition”) to consummating any such Permitted Debt Exchange that a minimum amount (to be determined and specified in the relevant Permitted Debt Exchange Offer in the Borrower’s discretion) of Term Loans of any or all applicable Classes be tendered.

 

(c)                            In connection with each Permitted Debt Exchange, the Borrower and the Administrative Agent shall mutually agree to such procedures as may be necessary or advisable to accomplish the purposes of this Section 2.15 and without conflict with Section 2.15(d); provided that the terms of any Permitted Debt Exchange Offer shall provide that the date by which the relevant Lenders are required to indicate their election to participate in such Permitted Debt Exchange shall be not less than a reasonable period (in the discretion of the Borrower and the Administrative Agent) of time following the date on which the Permitted Debt Exchange Offer is made.

 

(d)                                 The Borrower shall be responsible for compliance with, and hereby agrees to comply with, all applicable securities and other laws in connection with each Permitted Debt Exchange, it being understood and agreed that (x) neither the Administrative Agent nor any Lender assumes any responsibility in connection with the Borrower’s compliance with such laws in connection with any Permitted Debt Exchange and (y) each Lender shall be solely responsible for its compliance with any applicable “insider trading” laws and regulations to which such Lender may be subject under the Securities Exchange Act.

 

2.16                        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)                           the Commitment Fee shall cease to accrue on the Commitment of such Lender so long as it is a Defaulting Lender;

 

(b)                           if any Swingline Exposure or Letter of Credit Exposure exists at the time a Lender becomes a Defaulting Lender then:

 

(i)                                     all or any part of such Swingline Exposure and Letter of Credit Exposure shall be reallocated among the Non-Defaulting Revolving Credit Lenders in accordance with their respective Revolving Credit Commitment Percentages but only to the extent the sum of all Non-Defaulting Revolving Credit Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s Swingline Exposure and Letter of Credit Exposure does not exceed the total of all Non-Defaulting Revolving Credit Lenders’ Revolving Credit Commitments;

 

(ii)                                  if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one Business Day following notice by the Administrative Agent (x) first, prepay such Defaulting Lender’s Swingline Exposure and (y) second, Cash Collateralize such Defaulting Lender’s Letter of Credit Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 3.8 for so long as such Letter of Credit Exposure is outstanding;

 

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(iii)                               if any portion of such Defaulting Lender’s Letter of Credit Exposure is Cash Collateralized pursuant to clause (ii) above, the Borrower shall not be required to pay the Letter of Credit Fee with respect to such portion of such Defaulting Lender’s Letter of Credit Exposure so long as it is Cash Collateralized;

 

(iv)                              if any portion of such Defaulting Lender’s Letter of Credit Exposure is reallocated to the Non-Defaulting Revolving Credit Lenders pursuant to clause (i) above, then the Letter of Credit Fee with respect to such portion shall be allocated among the Non-Defaulting Revolving Credit Lenders in accordance with their Revolving Credit Commitment Percentages; and

 

(v)                                 if any portion of such Defaulting Lender’s Letter of Credit Exposure is neither Cash Collateralized nor reallocated pursuant to this Section 2.16(b), then, without prejudice to any rights or remedies of the Letter of Credit Issuer or any Lender hereunder, the Letter of Credit Fee payable with respect to such Defaulting Lender’s Letter of Credit Exposure shall be payable to the applicable Letter of Credit Issuer until such Letter of Credit Exposure is Cash Collateralized and/or reallocated;

 

(c)                            so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and the Letter of Credit Issuer shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Revolving Credit Commitments of the non-Defaulting Lenders and/or Cash Collateralized in accordance with Section 2.16(b), and participations in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among Non-Defaulting Revolving Credit Lenders in accordance with their respective Revolving Credit Commitment Percentages (and Defaulting Lenders shall not participate therein); and

 

(d)                           any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 13.8(a)but excluding Section 13.7) may, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated non-interest bearing account and, subject to any applicable Requirements of Law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, pro rata, to the payment of any amounts owing by such Defaulting Lender to the Letter of Credit Issuer or Swingline Lender hereunder, (iii) third, to the funding of any Loan or the funding or cash collateralization of any participation in any Swingline Loan or Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent, (iv) fourth, if so determined by the Administrative Agent and Holdings, held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrower or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x) a prepayment of the principal amount of any Loans or Reimbursement Obligations in respect of which a Defaulting Lender has funded its participation obligations and (y) made at a time when the conditions set forth in Section 7 are satisfied, such payment shall be applied solely to prepay the Loans of, and Reimbursement Obligations owed to, all non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or Reimbursement Obligations owed to, any Defaulting Lender.

 

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In the event that the Administrative Agent, the Borrower, each Letter of Credit Issuer and the Swingline Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and Letter of Credit Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Revolving Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Revolving Credit Commitment Percentage.  The rights and remedies against a Defaulting Lender under this Section 2.16 are in addition to other rights and remedies that the Borrower, the Administrative Agent, the Letter of Credit Issuers, the Swingline Lender and the non-Defaulting Lenders may have against such Defaulting Lender.  The arrangements permitted or required by this Section 2.16 shall be permitted under this Agreement, notwithstanding any limitation on Liens or the pro rata sharing provisions or otherwise.

 

Section 3.                                           Letters of Credit

 

3.1                               Letters of Credit.

 

(a)                                 Subject to and upon the terms and conditions herein set forth, at any time and from time to time after the Closing Date and prior to the L/C Facility Maturity Date, each Letter of Credit Issuer agrees, in reliance upon the agreements of the Revolving Credit Lenders set forth in this Section 3, to issue from time to time from the Closing Date through the L/C Facility Maturity Date upon the request of, and for the direct or indirect benefit of, Holdings, the Borrower and the Restricted Subsidiaries, a letter of credit or letters of credit (the “Letters of Credit” and each, a “Letter of Credit”) in such form as may be approved by such Letter of Credit Issuer in its reasonable discretion; provided that the Borrower shall be a co-applicant and shall be jointly and severally liable with respect to each Letter of Credit issued for the account of Holdings or a Restricted Subsidiary.

 

(b)                                 Notwithstanding the foregoing, (i) no Letter of Credit shall be issued the Stated Amount of which, when added to the Letters of Credit Outstanding at such time, would exceed the Letter of Credit Commitment then in effect; (ii) no Letter of Credit shall be issued the Stated Amount of which would cause the aggregate amount of the Lenders’ Revolving Credit Exposures at the time of the issuance thereof to exceed the Total Revolving Credit Commitment then in effect; (iii) each Letter of Credit shall have an expiration date occurring no later than one year after the date of issuance thereof (except as set forth in Section 3.2(d)); provided that in no event shall such expiration date occur later than the L/C Facility Maturity Date, in each case, unless otherwise agreed upon by the Administrative Agent and the applicable Letter of Credit Issuer; (iv) each Letter of Credit shall be denominated in Dollars, Euro or an Alternative Currency; (v) no Letter of Credit shall be issued if it would be illegal under any applicable law for the beneficiary of the Letter of Credit to have a Letter of Credit issued in its favor; and (vi) no Letter of Credit shall be issued by a Letter of Credit Issuer after it has received a written notice from any Credit Party or the Administrative Agent or the Required Revolving Credit Lenders stating that a Default or Event of Default has occurred and is continuing until such time as the Letter of Credit Issuer shall have received a written notice of (x) rescission of such notice from the party or parties originally delivering such notice or (y) the waiver of such Default or Event of Default in accordance with the provisions of Section 13.1.

 

(c)                                  Upon at least two Business Days’ prior written notice to the Administrative Agent and the Letter of Credit Issuers (which the Administrative Agent shall promptly notify the applicable Lenders), the Borrower shall have the right, on any day, permanently to terminate or reduce the Letter of Credit Commitment in whole or in part; provided that, after giving effect to such termination or reduction, the Letters of Credit Outstanding shall not exceed the Letter of Credit Commitment.

 

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(d)                                 No Letter of Credit Issuer shall be under any obligation to issue any Letter of Credit if:

 

(i)                                     any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Letter of Credit Issuer from issuing such Letter of Credit, or any law applicable to the Letter of Credit Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Letter of Credit Issuer shall prohibit, or request that the Letter of Credit Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Letter of Credit Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Letter of Credit Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Letter of Credit Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Letter of Credit Issuer in good faith deems material to it;

 

(ii)                                  the issuance of such Letter of Credit would violate one or more policies of the Letter of Credit Issuer applicable to letters of credit generally;

 

(iii)                               except as otherwise agreed by the Administrative Agent and the Letter of Credit Issuer, such Letter of Credit is in an initial Stated Amount less than $100,000 or the Dollar Equivalent thereof, in the case of a commercial Letter of Credit, or $10,000 or the Dollar Equivalent thereof, in the case of a standby Letter of Credit;

 

(iv)                              unless otherwise agreed by the Administrative Agent and the applicable Letter of Credit Issuer, such Letter of Credit is denominated in a currency other than Dollars, Euro or an Alternative Currency;

 

(v)                                 unless otherwise agreed by the Administrative Agent and the applicable Letter of Credit Issuer, the Letter of Credit Issuer does not as of the issuance date of such requested Letter of Credit issue letters of credit in the requested currency;

 

(vi)                              such Letter of Credit contains any provisions for automatic reinstatement of the Stated Amount after any drawing thereunder; or

 

(vii)                           a default of any Revolving Credit Lender’s obligations to fund under Section 3.3 exists or any Revolving Credit Lender is at such time a Defaulting Lender hereunder, unless, in each case, the Borrower has entered into arrangements satisfactory to the Letter of Credit Issuer to eliminate the Letter of Credit Issuer’s risk with respect to such Revolving Credit Lender.

 

(e)                                  No Letter of Credit Issuer shall be under any obligation to amend any Letter of Credit if (A) the Letter of Credit Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

 

(f)                                   Each the Letter of Credit Issuer shall act on behalf of the Revolving Credit Lenders with respect to any Letters of Credit issued by it and the documents associated therewith and the Letter of Credit Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Section 13 with respect to any acts taken or omissions suffered by the Letter of Credit Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Section 13 included the Letter of Credit Issuer with respect to such acts or omissions and (B) as additionally 

 

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provided herein with respect to the Letter of Credit Issuer.

 

3.2                               Letter of Credit Requests.

 

(a)                                 Whenever the Borrower desires that a Letter of Credit be issued or amended, it shall give the Administrative Agent and the applicable Letter of Credit Issuer a Letter of Credit Request by no later than 1:00 p.m. (New York City time) at least two (or such lesser number as may be agreed upon by the Administrative Agent and the Letter of Credit Issuer) Business Days prior to the proposed date of issuance or amendment.  Each notice shall be executed by the Borrower and shall be substantially in the form of Exhibit E (each a “Letter of Credit Request”).

 

(b)                                 In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Request shall specify in form and detail satisfactory to the Letter of Credit Issuer:  (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the Stated Amount thereof in the relevant currency; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder and (G) such other matters as the Letter of Credit Issuer may reasonably require.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Request shall specify in form and detail reasonably satisfactory to the Letter of Credit Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the Letter of Credit Issuer may reasonably require.  Additionally, the Borrower shall furnish to the Letter of Credit Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the Letter of Credit Issuer or the Administrative Agent may reasonably require.

 

(c)                                  Promptly after receipt of any Letter of Credit Request, the applicable Letter of Credit Issuer will confirm with the Administrative Agent in writing that the Administrative Agent has received a copy of such Letter of Credit Request from the Borrower and, if not, the Letter of Credit Issuer will provide the Administrative Agent with a copy thereof.  Unless the Letter of Credit Issuer has received written notice from any Revolving Credit Lender, the Administrative Agent or any Credit Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Section 6 and Section 7 shall not then be satisfied, then, subject to the terms and conditions hereof, the Letter of Credit Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower (or the applicable Restricted Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with the Letter of Credit Issuer’s usual and customary business practices.

 

(d)                                 If the Borrower so requests in any applicable Letter of Credit Request, the Letter of Credit Issuer may agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the Letter of Credit Issuer to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the Letter of Credit Issuer, the Borrower shall not be required to make a specific request to the Letter of Credit Issuer for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the Letter of Credit Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the L/C Facility Maturity Date, unless otherwise agreed 

 

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upon by the Administrative Agent and the Letter of Credit Issuer; provided, however, that the Letter of Credit Issuer shall not permit any such extension if (A) the Letter of Credit Issuer has reasonably determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of Section 3.1(b) or otherwise) or (B) it has received written notice on or before the day that is five Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Revolving Credit Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 6 and Section 7 are not then satisfied, and in each such case directing the Letter of Credit Issuer not to permit such extension.

 

(e)                                  Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit (including any Existing Letter of Credit) to an advising bank with respect thereto or to the beneficiary thereof, the Letter of Credit Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.  On the last Business Day of each month, each Letter of Credit Issuer shall provide the Administrative Agent a list of all Letters of Credit issued by it that are outstanding at such time.

 

(f)                                   The making of each Letter of Credit Request shall be deemed to be a representation and warranty by the Borrower that the Letter of Credit may be issued in accordance with, and will not violate the requirements of, Section 3.1(b).

 

3.3                               Letter of Credit Participations.

 

(a)                                 Immediately upon the issuance by the Letter of Credit Issuer of any Letter of Credit, the Letter of Credit Issuer shall be deemed to have sold and transferred to each Revolving Credit Lender (each such Revolving Credit Lender, in its capacity under this Section 3.3, an “L/C Participant”), and each such L/C Participant shall be deemed irrevocably and unconditionally to have purchased and received from the Letter of Credit Issuer, without recourse or warranty, an undivided interest and participation (each an “L/C Participation”), to the extent of such L/C Participant’s Revolving Credit Commitment Percentage in each Letter of Credit, each substitute therefor, each drawing made thereunder and the obligations of the Borrower under this Agreement with respect thereto, and any security therefor or guaranty pertaining thereto; provided that the Letter of Credit Fees will be paid directly to the Administrative Agent for the ratable account of the L/C Participants as provided in Section 4.1(b) and the L/C Participants shall have no right to receive any portion of any Fronting Fees.

 

(b)                                 In determining whether to pay under any Letter of Credit, the relevant Letter of Credit Issuer shall have no obligation relative to the L/C Participants other than to confirm that any documents required to be delivered under such Letter of Credit have been delivered and that they appear to comply on their face with the requirements of such Letter of Credit.  Any action taken or omitted to be taken by the relevant Letter of Credit Issuer under or in connection with any Letter of Credit issued by it, if taken or omitted in the absence of gross negligence or willful misconduct (as gross negligence or willful misconduct is determined in the final non-appealable judgment of a court of competent jurisdiction), shall not create for the Letter of Credit Issuer any resulting liability.

 

(c)                                  In the event that a Letter of Credit Issuer makes any payment under any Letter of Credit issued by it and the Borrower shall not have repaid such amount in full to such Letter of Credit Issuer pursuant to Section 3.4(a) the Letter of Credit Issuer shall promptly notify the Administrative Agent and each L/C Participant of such failure, and each L/C Participant shall promptly and unconditionally pay to the Administrative Agent for the account of the Letter of Credit Issuer, the amount of such L/C 

 

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Participant’s Revolving Credit Commitment Percentage of the Dollar Equivalent of such unreimbursed payment in Dollars and in immediately available funds; provided, however, that no L/C Participant shall be obligated to pay to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of such unreimbursed amount arising from any wrongful payment made by the Letter of Credit Issuer under any such Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer as determined in the final non-appealable judgment of a court of competent jurisdiction.  If a Letter of Credit Issuer so notifies, prior to 11:00 a.m. (New York City time) on any Business Day, any L/C Participant required to fund a payment under a Letter of Credit, such L/C Participant shall make available to the Administrative Agent for the account of such Letter of Credit Issuer such L/C Participant’s Revolving Credit Commitment Percentage of the amount of such payment no later than 1:00 p.m. (New York City time) on such Business Day in Dollars and in immediately available funds.  If and to the extent such L/C Participant shall not have so made its Revolving Credit Commitment Percentage of the amount of such payment available to the Administrative Agent for the account of the Letter of Credit Issuer, such L/C Participant agrees to pay to the Administrative Agent for the account of such Letter of Credit Issuer, forthwith on demand, such amount, together with interest thereon for each day from such date until the date such amount is paid to the Administrative Agent for the account of such Letter of Credit Issuer at a rate per annum equal to the Overnight Rate from time to time then in effect, plus any administrative, processing or similar fees that are reasonably and customarily charged by such Letter of Credit Issuer in connection with the foregoing.  The failure of any L/C Participant to make available to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of any payment under any Letter of Credit shall not relieve any other L/C Participant of its obligation hereunder to make available to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of any payment under such Letter of Credit on the date required, as specified above, but no L/C Participant shall be responsible for the failure of any other L/C Participant to make available to the Administrative Agent such other L/C Participant’s Revolving Credit Commitment Percentage of any such payment.

 

(d)                                 Whenever a Letter of Credit Issuer receives a payment in respect of an unpaid reimbursement obligation as to which the Administrative Agent has received for the account of the Letter of Credit Issuer any payments from the L/C Participants pursuant to clause (c) above, such Letter of Credit Issuer shall pay to the Administrative Agent and the Administrative Agent shall promptly pay to each L/C Participant that has paid its Revolving Credit Commitment Percentage of such reimbursement obligation, in Dollars and in immediately available funds, an amount equal to such L/C Participant’s share (based upon the proportionate aggregate amount originally funded by such L/C Participant to the aggregate amount funded by all L/C Participants) of the Dollar Equivalent of the amount so paid in respect of such reimbursement obligation and interest thereon accruing after the purchase of the respective L/C Participations at the Overnight Rate.

 

(e)                                  The obligations of the L/C Participants to make payments to the Administrative Agent for the account of a Letter of Credit Issuer with respect to Letters of Credit shall be irrevocable and not subject to counterclaim, set-off or other defense or any other qualification or exception whatsoever and shall be made in accordance with the terms and conditions of this Agreement under all circumstances, including under any of the following circumstances:

 

(i)                                     any lack of validity or enforceability of this Agreement or any of the other Credit Documents;

 

(ii)                                  the existence of any claim, set-off, defense or other right that the Borrower may have at any time against a beneficiary named in a Letter of Credit, any transferee of any Letter of

 

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Credit (or any Person for whom any such transferee may be acting), the Administrative Agent, any Letter of Credit Issuer, any Lender or other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between the Borrower and the beneficiary named in any such Letter of Credit);

 

(iii)                               any draft, certificate or any other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

 

(iv)                              the surrender or impairment of any security for the performance or observance of any of the terms of any of the Credit Documents; or

 

(v)                                 the occurrence of any Default or Event of Default;

 

provided, however, that no L/C Participant shall be obligated to pay to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of any unreimbursed amount arising from any wrongful payment made by the Letter of Credit Issuer under any such Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer, as determined in the final non-appealable judgment of a court of competent jurisdiction.

 

3.4                               Agreement to Repay Letter of Credit Drawings.

 

(a)                                 The Borrower hereby agrees to reimburse the Letter of Credit Issuer, by making payment with respect to any drawing under any Letter of Credit in the same currency in which such drawing was made unless (A) the Letter of Credit Issuer (at its option) shall have specified in the notice of drawing that it will require reimbursement in Dollars or (B) in the absence of any such requirement for reimbursement in Dollars, the Borrower shall have notified the Letter of Credit Issuer promptly following receipt of the notice of drawing that the Borrower will reimburse the Letter of Credit Issuer in Dollars.  Any such reimbursement shall be made by the Borrower to the Administrative Agent in immediately available funds for any payment or disbursement made by the Letter of Credit Issuer under any Letter of Credit (each such amount so paid until reimbursed, an “Unpaid Drawing”) no later than the date that is one Business Day after the date on which the Borrower receives notice of such payment or disbursement (the “Reimbursement Date”), with interest on the amount so paid or disbursed by the Letter of Credit Issuer, to the extent not reimbursed prior to 5:00 p.m. (New York City time) on the Reimbursement Date, from the Reimbursement Date to the date the Letter of Credit Issuer is reimbursed therefor at a rate per annum that shall at all times be (i) with respect to a Letter of Credit denominated in Dollars, the Applicable Margin for ABR Loans that are Revolving Loans plus the ABR as in effect from time to time and (ii) with respect to a Letter of Credit denominated in Euros or an Alternative Currency, the Applicable Margin for LIBOR Loans that are Revolving Loans plus the Adjusted LIBOR Rate as in effect from time to time; provided that, notwithstanding anything contained in this Agreement to the contrary, (i) unless the Borrower shall have notified the Administrative Agent and the relevant Letter of Credit Issuer prior to 1:00 p.m. (New York City time) on the Reimbursement Date that the Borrower intends to reimburse the relevant Letter of Credit Issuer for the amount of such drawing with funds other than the proceeds of Loans, the Borrower shall be deemed to have given a Notice of Borrowing requesting that, with respect to Letters of Credit, the Revolving Credit Lenders make Revolving Loans (which shall be denominated in Dollars and which shall be ABR Loans) on the Reimbursement Date in the amount, or Dollar Equivalent of the amount, as applicable, of such drawing and (ii) the Administrative Agent shall promptly notify each L/C Participant of such drawing and the amount of its Revolving Loan to be made in respect thereof, and 

 

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each L/C Participant shall be irrevocably obligated to make a Revolving Loan to the Borrower in Dollars in the manner deemed to have been requested in the amount of its Revolving Credit Commitment Percentage of the applicable Unpaid Drawing by 2:00 p.m. (New York City time) on such Reimbursement Date by making the amount of such Revolving Loan available to the Administrative Agent.  Such Revolving Loans shall be made without regard to the Minimum Borrowing Amount.  The Administrative Agent shall use the proceeds of such Revolving Loans solely for purpose of reimbursing the Letter of Credit Issuer for the related Unpaid Drawing.  In the event that the Borrower fails to Cash Collateralize any Letter of Credit that is outstanding on the L/C Facility Maturity Date, the full amount of the Letters of Credit Outstanding in respect of such Letter of Credit shall be deemed to be an Unpaid Drawing subject to the provisions of this Section 3.4 except that the Letter of Credit Issuer shall hold the proceeds received from the L/C Participants as contemplated above as cash collateral for such Letter of Credit to reimburse any Drawing under such Letter of Credit and shall use such proceeds first, to reimburse itself for any Drawings made in respect of such Letter of Credit following the L/C Facility Maturity Date, second, to the extent such Letter of Credit expires or is returned undrawn while any such cash collateral remains, to the repayment of obligations in respect of any Revolving Loans that have not been paid at such time and third, to the Borrower or as otherwise directed by a court of competent jurisdiction.  Nothing in this Section 3.4(a) shall affect the Borrower’s obligation to repay all outstanding Revolving Loans when due in accordance with the terms of this Agreement.

 

(b)                                 The obligations of the Borrower under this Section 3.4 to reimburse the Letter of Credit Issuer with respect to Unpaid Drawings (including, in each case, interest thereon) shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment that the Borrower or any other Person may have or have had against any Letter of Credit Issuer, the Administrative Agent or any Lender (including in its capacity as an L/C Participant), including any defense based upon the failure of any drawing under a Letter of Credit (each a “Drawing”) to conform to the terms of the Letter of Credit or any non-application or misapplication by the beneficiary of the proceeds of such Drawing and without regard to any adverse change in the relevant exchange rates or in the availability of Euro or the Alternative Currency to the Borrower or in the relevant currency markets generally; provided that the Borrower shall not be obligated to reimburse a Letter of Credit Issuer for any wrongful payment made by such Letter of Credit Issuer under the Letter of Credit issued by it as a result of acts or omissions constituting willful misconduct or gross negligence on the part of such Letter of Credit Issuer as determined in the final non-appealable judgment of a court of competent jurisdiction.

 

3.5                               Increased Costs. If after the Closing Date any Change in Law shall either (x) impose, modify or make applicable any reserve, deposit, capital adequacy or similar requirement against letters of credit issued by the Letter of Credit Issuer, or any L/C Participant’s L/C Participation therein, or (y) impose on the Letter of Credit Issuer or any L/C Participant any other conditions affecting its obligations under this Agreement in respect of Letters of Credit or L/C Participations therein or any Letter of Credit or such L/C Participant’s L/C Participation therein, and the result of any of the foregoing is to increase the actual cost to the Letter of Credit Issuer or such L/C Participant of issuing, maintaining or participating in any Letter of Credit, or to reduce the actual amount of any sum received or receivable by the Letter of Credit Issuer or such L/C Participant hereunder (other than any such increase or reduction attributable to (i) Taxes indemnifiable under Section 5.4 or (ii) Excluded Taxes) in respect of Letters of Credit or L/C Participations therein, then, promptly after receipt of written demand to the Borrower by the Letter of Credit Issuer or such L/C Participant, as the case may be (a copy of which notice shall be sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent), the Borrower shall pay to the Letter of Credit Issuer or such L/C Participant such actual additional amount or amounts as will compensate the Letter of Credit Issuer or such L/C Participant for such increased cost or reduction, it being understood and agreed, however, that the Letter of Credit Issuer or an L/C Participant shall not be entitled to such compensation as a result of such Person’s compliance with, or pursuant to any request or 

 

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directive to comply with, any such law, rule or regulation as in effect on the Closing Date (provided that, for purposes of this Section 3.5, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith 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 United States or foreign regulatory authorities pursuant to Basel III, shall in each case described in clauses (x) and (y) above be deemed to have gone into effect after the Closing Date, regardless of the date enacted, adopted, issued or implemented).  A certificate submitted to the Borrower by the relevant Letter of Credit Issuer or an L/C Participant, as the case may be (a copy of which certificate shall be sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent), setting forth in reasonable detail the basis for the determination of such actual additional amount or amounts necessary to compensate the Letter of Credit Issuer or such L/C Participant as aforesaid shall be conclusive and binding on the Borrower absent clearly demonstrable error.

 

3.6                               New or Successor Letter of Credit Issuer

 

(a)                                 Any Letter of Credit Issuer may resign as a Letter of Credit Issuer upon 60 days’ prior written notice to the Administrative Agent, the Lenders and the Borrower.  The Borrower may replace a Letter of Credit Issuer for any reason upon written notice to the Administrative Agent and the Letter of Credit Issuer.  The Borrower may add Letter of Credit Issuers at any time upon notice to the Administrative Agent.  If the Letter of Credit Issuer shall resign or be replaced, or if the Borrower shall decide to add a new Letter of Credit Issuer under this Agreement, then the Borrower may appoint from among the Revolving Credit Lenders a successor issuer of Letters of Credit or a new Letter of Credit Issuer, as the case may be, or, with the consent of the Administrative Agent (such consent not to be unreasonably withheld), another successor or new issuer of Letters of Credit, whereupon such successor issuer shall succeed to the rights, powers and duties of the replaced or resigning Letter of Credit Issuer under this Agreement and the other Credit Documents, or such new issuer of Letters of Credit shall be granted the rights, powers and duties of a Letter of Credit Issuer hereunder, and the term “Letter of Credit Issuer” shall mean such successor or such new issuer of Letters of Credit effective upon such appointment.  At the time such resignation or replacement shall become effective, the Borrower shall pay to the resigning or replaced Letter of Credit Issuer all accrued and unpaid fees applicable to the Letters of Credit issued by it pursuant to Sections 4.1(d) and 4.1(e). The acceptance of any appointment as a Letter of Credit Issuer hereunder whether as a successor issuer or new issuer of Letters of Credit in accordance with this Agreement shall be evidenced by an agreement entered into by such new or successor issuer of Letters of Credit, in a form satisfactory to the Borrower and the Administrative Agent and, from and after the effective date of such agreement, such new or successor issuer of Letters of Credit shall become a “Letter of Credit Issuer” hereunder.  After the resignation or replacement of a Letter of Credit Issuer hereunder, the resigning or replaced Letter of Credit Issuer shall remain a party hereto and shall continue to have all the rights and obligations of a Letter of Credit Issuer under this Agreement and the other Credit Documents with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of Credit.  In connection with any resignation or replacement pursuant to this clause (a) (but, in case of any such resignation, only to the extent that a successor issuer of Letters of Credit shall have been appointed), either (i) the Borrower, the resigning or replaced Letter of Credit Issuer and the successor issuer of Letters of Credit shall arrange to have any outstanding Letters of Credit issued by the resigning or replaced Letter of Credit Issuer replaced with Letters of Credit issued by the successor issuer of Letters of Credit or (ii) the Borrower shall cause the successor issuer of Letters of Credit, if such successor issuer is reasonably satisfactory to the replaced or resigning Letter of Credit Issuer, to issue “back-stop” Letters of Credit naming the resigning or replaced Letter of Credit Issuer as beneficiary for each outstanding Letter of Credit issued by the resigning or replaced Letter of Credit Issuer, which new Letters of Credit shall be denominated in the same currency 

 

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as, and shall have a face amount equal to, the Letters of Credit being back-stopped and the sole requirement for drawing on such new Letters of Credit shall be a drawing on the corresponding back-stopped Letters of Credit.  After any resigning or replaced Letter of Credit Issuer’s resignation or replacement as Letter of Credit Issuer, the provisions of this Agreement relating to a Letter of Credit Issuer shall inure to its benefit as to any actions taken or omitted to be taken by it (A) while it was a Letter of Credit Issuer under this Agreement or (B) at any time with respect to Letters of Credit issued by such Letter of Credit Issuer.

 

(b)                                 To the extent there are, at the time of any resignation or replacement as set forth in clause (a) above, any outstanding Letters of Credit, nothing herein shall be deemed to impact or impair any rights and obligations of any of the parties hereto with respect to such outstanding Letters of Credit (including, without limitation, any obligations related to the payment of Fees or the reimbursement or funding of amounts drawn), except that the Borrower, the resigning or replaced Letter of Credit Issuer and the successor issuer of Letters of Credit shall have the obligations regarding outstanding Letters of Credit described in clause (a) above.

 

3.7                                                 Role of Letter of Credit Issuer. Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the Letter of Credit Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the Letter of Credit Issuer, the Administrative Agent, any of their respective Affiliates nor any correspondent, participant or assignee of the Letter of Credit Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Required Revolving Credit Lenders; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct (as gross negligence or willful misconduct is determined in the final non-appealable judgment of a court of competent jurisdiction); or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.  The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Borrower’s pursuit of such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.  None of the Letter of Credit Issuer, the Administrative Agent, any of their respective Affiliates nor any correspondent, participant or assignee of any Letter of Credit Issuer shall be liable or responsible for any of the matters described in Section 3.3(e); provided that anything in such Section to the contrary notwithstanding, the Borrower may have a claim against a Letter of Credit Issuer, and a Letter of Credit Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by such Letter of Credit Issuer’s willful misconduct or gross negligence or such Letter of Credit Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit issued by such Letter of Credit Issuer in each case as determined in the final non-appealable judgment of a court of competent jurisdiction.  In furtherance and not in limitation of the foregoing, the Letter of Credit Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the Letter of Credit Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

 

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3.8                               Cash Collateral.

 

(a)                                 If (x) any Revolving Credit Lender is a Defaulting Lender and the reallocation contemplated by Section 2.16(b)(i) cannot be, or is only partially, effected or (y) upon the request of the Required Revolving Credit Lenders as of the L/C Facility Maturity Date, there are any Letters of Credit Outstanding, the Borrower shall immediately Cash Collateralize the then Letters of Credit Outstanding.

 

(b)                                 The Administrative Agent acting in its reasonable discretion, may, at any time and from time to time after the initial deposit of Cash Collateral, request that additional Cash Collateral be provided in the event such Cash Collateral previously provided is inadequate as a result of exchange rate fluctuations.

 

(c)                                  If any Event of Default shall occur and be continuing, the Administrative Agent or the Revolving Credit Lenders with Letter of Credit Exposure representing greater than 50% of the total Letter of Credit Exposure may require that the L/C Obligations be Cash Collateralized.

 

(d)                                 The Borrower hereby grants to the Administrative Agent, for the benefit of the Letter of Credit Issuer and the L/C Participants, a security interest in all Cash Collateral and all proceeds thereof to secure its obligations hereunder. Cash Collateral shall be maintained in blocked, interest bearing deposit accounts with the Administrative Agent.

 

3.9                               Applicability of ISP and UCP. Unless otherwise expressly agreed by the Letter of Credit Issuer and the Borrower when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance, shall apply to each commercial Letter of Credit.

 

3.10                        Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

 

3.11                        Letters of Credit Issued for Restricted Subsidiaries. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, Holdings or a Restricted Subsidiary, the Borrower shall be obligated to reimburse the Letter of Credit Issuer hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Holdings or Restricted Subsidiaries inures to the benefit of the Borrower if it acted as a co-applicant, and that the Borrower’s business derives substantial benefits from the businesses of Holdings and all Restricted Subsidiaries.

 

3.12                        Provisions Related to Extended and Additional Revolving Credit Commitments. If the Letter of Credit Expiration Date in respect of any Class of Revolving Credit Commitments occurs prior to the expiry date of any Letter of Credit, then (i) if consented to by the applicable Letter of Credit Issuer which issued such Letter of Credit, if one or more other Classes of Revolving Credit Commitments with maturity dates later than the applicable Letter of Credit Expiration Date shall then be in effect, the Letter of Credit Expiration Date of such Letter of Credit for which consent has been so obtained shall be deemed to be such later maturity date and the obligations of the Revolving Credit Lenders to purchase participations therein and to make Revolving Loans and payments in respect thereof pursuant to Sections 3.3 and 3.4 shall be reallocated to the Revolving Credit Commitments in respect of such non-terminating Classes of Revolving Credit Commitments up to an aggregate amount not to exceed the aggregate amount of the unutilized Revolving Credit Commitments of such non-terminating Classes at such time (it being understood that no partial face amount of any Letter of Credit may be so reallocated) 

 

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and (ii) to the extent not reallocated pursuant to immediately preceding clause (i), the Borrower shall Cash Collateralize any such Letter of Credit in accordance with Section 3.8. Upon the maturity date of any tranche of Revolving Credit Commitments, the sublimit for Letters of Credit may be reduced as agreed between the applicable Letter of Credit Issuers and the Borrower, without the consent of any other Person.

 

Section 4.                                           Fees.

 

4.1                               Fees.(a)      The Borrower agrees to pay to the Administrative Agent in Dollars, for the account of each Revolving Credit Lender (in each case pro rata according to the respective Revolving Credit Commitments of all such Lenders), a commitment fee (the “Commitment Fee”) for each day from the Closing Date to the Revolving Credit Termination Date.  Each Commitment Fee shall be payable (x) quarterly in arrears on the last Business Day of each March, June, September and December (for the three-month period (or portion thereof) ended on such day for which no payment has been received) and (y) on the Revolving Credit Termination Date (for the period ended on such date for which no payment has been received pursuant to clause (x) above), and shall be computed for each day during such period at a rate per annum equal to the applicable Commitment Fee Rate in effect on such day for a given Class of Commitments on the Available Commitment in effect on such day.

 

(b)                                 The Borrower agrees to pay to the Administrative Agent in Dollars for the account of the Revolving Credit Lenders pro rata on the basis of their respective Letter of Credit Exposure, a fee in respect of each Letter of Credit issued on the Borrower’s or any of its Subsidiaries’ behalf (the “Letter of Credit Fee”), for the period from the date of issuance of such Letter of Credit to the termination date of such Letter of Credit computed at the per annum rate for each day equal to the Applicable Margin for LIBOR Rate Revolving Loans of the applicable Class less the Fronting Fee set forth in clause (d) below.  Except as provided below, such Letter of Credit Fees shall be due and payable (x) quarterly in arrears on the last Business Day of each March, June, September and December and (y) on the date upon which the Total Revolving Credit Commitment terminates and the Letters of Credit Outstanding shall have been reduced to zero.

 

(c)                                  The Borrower agrees to pay to the Administrative Agent in Dollars, for its own account, administrative agent fees as have been previously agreed in writing or as may be agreed in writing from time to time.

 

(d)                                 The Borrower agrees to pay to each Letter of Credit Issuer a fee in Dollars in respect of each Letter of Credit issued by it (the “Fronting Fee”), for the period from the date of issuance of such Letter of Credit to the termination date of such Letter of Credit, computed at the rate for each day equal to 0.125% per annum on the average daily Stated Amount of such Letter of Credit (or at such other rate per annum as agreed in writing between the Borrower and the Letter of Credit Issuer).  Such Fronting Fees shall be due and payable (x) quarterly in arrears on the last Business Day of each March, June, September and December and (y) on the date upon which the Total Revolving Credit Commitment terminates and the Letters of Credit Outstanding shall have been reduced to zero.

 

(e)                                  Without duplication, the Borrower agrees to pay directly to the Letter of Credit Issuer in Dollars upon each issuance or renewal of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as the Letter of Credit Issuer and the Borrower shall have agreed upon for issuances or renewals of, drawings under or amendments of, letters of credit issued by it.

 

(f)                                   Notwithstanding the foregoing, no Borrower shall be obligated to pay any amounts to any Defaulting Lender pursuant to this Section 4.1.

 

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4.2                               Voluntary Reduction of Revolving Credit Commitments. Upon at least two Business Days’ prior written notice to the Administrative Agent at the Administrative Agent’s Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right, without premium or penalty, on any day, permanently to terminate or reduce the Revolving Credit Commitments in whole or in part; provided that (a) any such reduction shall apply proportionately and permanently to reduce the Revolving Credit Commitment of each of the Lenders of any applicable Class, except that (i) notwithstanding the foregoing, in connection with the establishment on any date of any Extended Revolving Credit Commitments pursuant to Section 2.14(g) the Revolving Credit Commitments of any one or more Lenders providing any such Extended Revolving Credit Commitments on such date shall be reduced in an amount equal to the amount of Revolving Credit Commitments so extended on such date (provided that (x) after giving effect to any such reduction and to the repayment of any Revolving Loans made on such date, the Revolving Credit Exposure of any such Lender does not exceed the Revolving Credit Commitment thereof and (y) for the avoidance of doubt, any such repayment of Revolving Loans contemplated by the preceding clause shall be made in compliance with the requirements of Section 5.3(a) with respect to the ratable allocation of payments hereunder, with such allocation being determined after giving effect to any conversion pursuant to Section 2.14(g) of Revolving Credit Commitments and Revolving Loans into Extended Revolving Credit Commitments and Extended Revolving Credit Loans pursuant to Section 2.14(g) prior to any reduction being made to the Revolving Credit Commitment of any other Lender) and (ii) the Borrower may at its election permanently reduce the Revolving Credit Commitment of a Defaulting Lender to $0 without affecting the Revolving Credit Commitments of any other Lender, (b) any partial reduction pursuant to this Section 4.2 shall be in the amount of at least $5,000,000 and (c) after giving effect to such termination or reduction and to any prepayments of the Loans made on the date thereof in accordance with this Agreement, the aggregate amount of the Lenders’ Revolving Credit Exposures shall not exceed the Total Revolving Credit Commitment and the aggregate amount of the Lenders’ Revolving Credit Exposures in respect of any Class shall not exceed the aggregate Revolving Credit Commitment of such Class.

 

4.3                               Mandatory Termination of Commitments

 

(a)                                 The Initial Term Loan Commitments shall terminate at 5:00 p.m. (New York City time) on the Closing Date.

 

(b)                                 The Revolving Credit Commitment of a given Class shall terminate at 5:00 p.m. (New York City time) on the applicable Revolving Credit Maturity Date.

 

(c)                                  The Swingline Commitment shall terminate at 5:00 p.m. (New York City time) on the Swingline Maturity Date.

 

(d)                                 The New Term Loan Commitment for any Series shall, unless otherwise provided in the applicable Joinder Agreement, terminate at 5:00 p.m. (New York City time) on the Increased Amount Date for such Series.

 

Section 5.                                           Payments

 

5.1                               Voluntary Prepayments. The Borrower shall have the right to prepay its Term Loans, Revolving Loans and Swingline Loans, as applicable, in each case, without premium or penalty, in whole or in part from time to time on the following terms and conditions:  (a) the Borrower shall give the Administrative Agent at the Administrative Agent’s Office written notice of its intent to make such prepayment, the amount of such prepayment and (in the case of LIBOR Loans) the specific Borrowing(s) pursuant to which made, which notice shall be given by the Borrower no later than 12:00 Noon (New 

 

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York City time) (i) in the case of LIBOR Loans denominated in Dollars or Euro, three Business Days prior to, (ii) in the case of LIBOR Loans denominated in an Alternative Currency, four Business Days prior to, (iii) in the case of ABR Loans (other than Swingline Loans), one Business Day prior to or (iv) in the case of Swingline Loans, on, the date of such prepayment and shall promptly be transmitted by the Administrative Agent to each of the Lenders or the Swingline Lender, as the case may be; (b) each partial prepayment of (i) any Borrowing of LIBOR Loans denominated in Dollars or any Alternative Currency other than Euro shall be in a minimum amount of $5,000,000 (or the Dollar Equivalent thereof) and in multiples of $1,000,000 (or the Dollar Equivalent thereof) in excess thereof, (ii) any ABR Loans (other than Swingline Loans) shall be in a minimum amount of $1,000,000 and in multiples of $100,000 in excess thereof, (iii) any Loans denominated in Euro shall be in a minimum amount of €5,000,000 and in multiples of €1,000,000 in excess thereof and (iv) Swingline Loans shall be in a minimum amount of $500,000 and in multiples of $100,000 in excess thereof; provided that no partial prepayment of LIBOR Loans made pursuant to a single Borrowing shall reduce the outstanding LIBOR Loans made pursuant to such Borrowing to an amount less than the applicable Minimum Borrowing Amount for such LIBOR Loans and (c) in the case of any prepayment of LIBOR Loans pursuant to this Section 5.1 on any day other than the last day of an Interest Period applicable thereto, the Borrower shall, after receipt of a written request by any applicable Lender (which request shall set forth in reasonable detail the basis for requesting such amount), pay to the Administrative Agent for the account of such Lender any amounts required pursuant to Section 2.11.  Subject to Section 2.14(g), each prepayment in respect of any Term Loans pursuant to this Section 5.1 shall be (a) applied to the Class or Classes of Term Loans as the Borrower may specify and (b) applied to reduce Initial Term Loan Repayment Amounts, any New Term Loan Repayment Amounts, and any Extended Term Loan Repayment Amounts, as the case may be, in each case, in such order as the Borrower may specify; provided that Extended Term Loans may be prepaid on a pro rata basis or less than pro rata basis (but not a greater than pro rata basis) with the Existing Term Loan Class from which they were converted.  At the Borrower’s election in connection with any prepayment pursuant to this Section 5.1, such prepayment shall not be applied to any Term Loan or Revolving Loan of a Defaulting Lender.

 

5.2                               Mandatory Prepayments

 

(a)                                 Term Loan Prepayments.

 

(i)                                     On each occasion that a Prepayment Event occurs, the Borrower shall, within three Business Days after its receipt of the Net Cash Proceeds of a Debt Incurrence Prepayment Event (other than one covered by clause (ii) below) and within ten Business Days after the occurrence of any other Prepayment Event (or, in the case of Deferred Net Cash Proceeds, within ten Business Days after the Deferred Net Cash Proceeds Payment Date), prepay, in accordance with clause (c) below, Term Loans with an equivalent principal amount equal to 100% of the Net Cash Proceeds from such Prepayment Event; provided that, with respect to the Net Cash Proceeds of an Asset Sale Prepayment Event, Casualty Event or Permitted Sale Leaseback, in each case solely to the extent with respect to any Collateral, the Borrower may use a portion of such Net Cash Proceeds to prepay or repurchase Permitted Other Indebtedness (provided that such prepaid or repurchased Permitted Other Indebtedness and any commitments in respect thereof shall be permanently extinguished with respect to revolving facilities) with a Lien on the Collateral ranking pari passu with the Liens securing the Obligations to the extent any applicable Permitted Other Indebtedness Document requires the issuer of such Permitted Other Indebtedness to prepay or make an offer to purchase such Permitted Other Indebtedness with the proceeds of such Prepayment Event, in each case in an amount not to exceed the product of (x) the amount of such Net Cash Proceeds multiplied by (y) a fraction, the numerator of which is the outstanding principal amount of the Permitted Other Indebtedness with a Lien on the Collateral ranking pari 

 

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passu with the Liens securing the Obligations and with respect to which such a requirement to prepay or make an offer to purchase exists and the denominator of which is the sum of the outstanding principal amount of such Permitted Other Indebtedness and the outstanding principal amount of Term Loans, provided that any amount not actually so applied to the prepayment of such Permitted Other Indebtedness shall be applied to prepay the Term Loans.

 

(ii)                                  On each occasion that Permitted Other Indebtedness is issued or incurred pursuant to Section 10.1(v), the Borrower shall within three Business Days of receipt of the Net Cash Proceeds of such Permitted Other Indebtedness prepay, in accordance with clause (c) below, Term Loans with a principal amount equal to 100% of the Net Cash Proceeds from such issuance or incurrence of Permitted Other Indebtedness.

 

(iii)                               Notwithstanding any other provisions of this Section 5.2, (A) to the extent that any or all of the Net Cash Proceeds of any Prepayment Event by a Subsidiary that is not a Credit Party giving rise to a prepayment pursuant to clause (i) above (a “Non-Credit Party Prepayment Event”) are prohibited or delayed by any Requirements of Law from being repatriated to the Credit Parties, an amount equal to the portion of such Net Cash Proceeds so affected will not be required to be applied to repay Loans at the times provided in clause (i) above but only so long as the applicable Requirements of Law will not permit repatriation to the Credit Parties (the Credit Parties hereby agreeing to cause the applicable Subsidiary to promptly take all actions reasonably required by the applicable Requirements of Law to permit repatriation), and once a repatriation of any of such affected Net Cash Proceeds is permitted under the applicable Requirements of Law, an amount equal to such Net Cash Proceeds will be promptly (and in any event not later than ten Business Days after such repatriation is permitted) applied (net of any taxes that would be payable or reserved against if such amounts were actually repatriated whether or not they are repatriated) to the repayment of the Loans pursuant to clause (i) above, and (B) to the extent that the Borrower has determined in good faith that repatriation of any of or all the Net Cash Proceeds of any Non-Credit Party Prepayment Event would have a material adverse tax consequence with respect to such Net Cash Proceeds, an amount equal to the Net Cash Proceeds so affected may be retained by the applicable Subsidiary; provided that in the case of this clause (B), on or before the date on which any Net Cash Proceeds from any Non-Credit Party Prepayment Event so retained would otherwise have been required to be applied to reinvestments or prepayments pursuant to clause (i) above, (x) the Borrower shall apply an amount equal to such Net Cash Proceeds to such reinvestments or prepayments as if such Net Cash Proceeds had been received by the Credit Parties rather than such Subsidiary, less the amount of any taxes that would have been payable or reserved against if such Net Cash Proceeds had been repatriated (or, if less, the Net Cash Proceeds that would be calculated if received by such Foreign Subsidiary) or (y) such Net Cash Proceeds shall be applied to the repayment of Indebtedness of a Subsidiary that is not a Credit Party.  For the avoidance of doubt, nothing in this Agreement, including this Section 5, shall be construed to require any Subsidiary to repatriate cash.

 

(b)                                 Repayment of Revolving Loans.  (i) If on the last day of any calendar month of the Borrower, the aggregate amount of the Lenders’ Revolving Credit Exposures (collectively, the “Aggregate Revolving Credit Outstandings”) for any reason exceeds 100% of the Total Revolving Credit Commitment then in effect, the Borrower shall forthwith repay on such date the principal amount of Swingline Loans and, after all Swingline Loans have been paid in full, Revolving Loans in an amount equal to such excess.  If, after giving effect to the prepayment of all outstanding Swingline Loans and Revolving Loans, the Aggregate Revolving Credit Outstandings exceed the Total Revolving Credit Commitment then in effect, the Borrower shall Cash Collateralize the Letters of Credit Outstanding to the extent of such excess.  If on any date the aggregate amount of the Lenders’ Revolving Credit Exposures 

 

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in respect of any Class of Revolving Loans for any reason exceeds 100% of the Revolving Credit Commitment of such Class then in effect, the Borrower shall forthwith repay on such date Revolving Loans of such Class in an amount equal to such excess.  If after giving effect to the prepayment of all outstanding Revolving Loans of such Class, the Revolving Credit Exposures of such Class exceed the Revolving Credit Commitment of such Class then in effect, the Borrower shall Cash Collateralize the Letters of Credit Outstanding in relation to such Class to the extent of such excess.

 

(ii)                                  Without limiting the generality of the foregoing, on the last day of each calendar month the Administrative Agent shall determine the Dollar Equivalent of the Aggregate Revolving Credit Outstandings to the extent there shall be any Loans or Letters of Credit denominated in any currency other than Dollars at such time.  Upon making such determination, the Administrative Agent shall promptly notify the Lenders and the Borrower thereof.  If, on the date of such determination, (i) the Aggregate Revolving Credit Outstandings exceeds the Total Revolving Credit Commitment then in effect, the Borrower shall forthwith repay on such date the principal amount of Swingline Loans and, after all Swingline Loans have been paid in full, Revolving Loans in an amount equal to such excess, or (ii) the aggregate Letter of Credit Outstandings exceeds the Letter of Credit Commitment, the Borrower shall forthwith Cash Collateralize the Letters of Credit Outstanding to the extent of such excess.

 

(c)                                  Application to Repayment Amounts.  Subject to Section 5.2(f), each prepayment of Term Loans required by Section 5.2(a)(i) shall be allocated pro rata among the Initial Term Loans, the New Term Loans and the Extended Term Loans based on the applicable remaining Repayment Amounts due thereunder and shall be applied first, to accrued interest and fees due on the amount of prepayment of Term Loans and second, within each Class of Term Loans in respect of such Term Loans in direct order of maturity thereof or as otherwise directed by the Borrower; provided that, if any Class of Extended Term Loans have been established hereunder, the Borrower may allocate such prepayment in its sole discretion to the Term Loans of the Existing Term Loan Class, if any, from which such Extended Term Loans were converted in lieu of the portion of such payment that would otherwise have been allocated to such Extended Term Loans.  Subject to Section 5.2(f), with respect to each such prepayment, the Borrower will, not later than the date specified in Section 5.2(a) for making such prepayment, give the Administrative Agent written notice which shall include a calculation of the amount of such prepayment to be applied to each Class of Term Loans requesting that the Administrative Agent provide notice of such prepayment to each Initial Term Loan Lender, New Term Loan Lender or Lender of Extended Term Loans, as applicable.

 

(d)                                 Application to Term Loans.  With respect to each prepayment of Term Loans required by Section 5.2(a), the Borrower may, if applicable, designate the Types of Loans that are to be prepaid and the specific Borrowing(s) pursuant to which made; provided, that if any Lender has provided a Rejection Notice in compliance with Section 5.2(f), such prepayment shall be applied with respect to the Term Loans to be prepaid on a pro rata basis across all outstanding Types of such Term Loans in proportion to the percentage of such outstanding Term Loans to be prepaid represented by each such Class.  In the absence of a Rejection Notice or a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its reasonable discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11.

 

(e)                                  Application to Revolving Loans. With respect to each prepayment of Revolving Loans required by Section 5.2(b), the Borrower may designate (i) the Types of Loans that are to be prepaid and the specific Borrowing(s) pursuant to which made and (ii) the Revolving Loans to be prepaid; provided that (y) each prepayment of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans; and (z) notwithstanding the provisions of the preceding clause (y), no prepayment of

 

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Revolving Loans shall be applied to the Revolving Loans of any Defaulting Lender unless otherwise agreed in writing by the Borrower. In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its reasonable discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11.

 

(f)                                   Rejection Right.  Holdings or the Borrower shall notify the Administrative Agent in writing of any mandatory prepayment of Term Loans required to be made pursuant to Section 5.2(a) at least three Business Days prior to the date of such prepayment.  Each such notice shall specify the date of such prepayment and provide a reasonably detailed calculation of the amount of such prepayment.  The Administrative Agent will promptly notify each Lender holding Term Loans of the contents of such prepayment notice and of such Lender’s pro rata share of the prepayment.  Each Term Loan Lender may reject all (but not less than all) of its pro rata share of any mandatory prepayment other than any such mandatory prepayment with respect to a Debt Incurrence Prepayment Event under Sections 5.2(a)(i) or 5.2(a)(ii) (such declined amounts, the “Declined Proceeds”) of Term Loans required to be made pursuant to Section 5.2(a) by providing written notice (each, a “Rejection Notice”) to the Administrative Agent and Holdings no later than 5:00 p.m. (New York time) one Business Day after the date of such Lender’s receipt of notice from the Administrative Agent regarding such prepayment.  If a Lender fails to deliver a Rejection Notice to the Administrative Agent within the time frame specified above or such Rejection Notice fails to specify the principal amount of the Term Loans to be rejected, any such failure will be deemed an acceptance of the total amount of such mandatory prepayment of Term Loans.  Any Declined Proceeds remaining thereafter shall be retained by the Borrower (“Retained Declined Proceeds”).

 

5.3                               Method and Place of Payment

 

(a)                                 Except as otherwise specifically provided herein, all payments under this Agreement shall be made by the Borrower, without set-off, counterclaim or deduction of any kind, to the Administrative Agent for the ratable account of the Lenders entitled thereto (or, in the case of the Swingline Loans to the Swingline Lender) or the Letter of Credit Issuer entitled thereto, as the case may be, not later than 2:00 p.m. (New York City time), in each case, on the date when due and shall be made in immediately available funds at the Administrative Agent’s Office or at such other office as the Administrative Agent shall specify for such purpose by notice to the Borrower (or, in the case of the Swingline Loans, at such office as the Swingline Lender shall specify for such purpose by Notice to the Borrower), it being understood that written or facsimile notice by the Borrower to the Administrative Agent to make a payment from the funds in the Borrower’s account at the Administrative Agent’s Office shall constitute the making of such payment to the extent of such funds held in such account.  All repayments or prepayments of any Loans (whether of principal, interest or otherwise) hereunder shall be made in the currency in which such Loans are denominated and all other payments under each Credit Document shall, unless otherwise specified in such Credit Document, be made in Dollars.  The Administrative Agent will thereafter cause to be distributed on the same day (if payment was actually received by the Administrative Agent prior to 2:00 p.m. (New York City time) or, otherwise, on the next Business Day) like funds relating to the payment of principal or interest or Fees ratably to the Lenders entitled thereto.

 

(b)                                 Any payments under this Agreement that are made later than 2:00 p.m. (New York City time) may be deemed to have been made on the next succeeding Business Day in the Administrative Agent’s sole discretion (or, in the case of the Swingline Loans, at the Swingline Lender’s sole discretion), and interest shall be payable thereon for such additional period.  Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest shall be 

 

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payable during such extension at the applicable rate in effect immediately prior to such extension.

 

5.4                               Net Payments

 

(a)                                 Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.

 

(i)                                Any and all payments by or on account of any obligation of any Credit Party hereunder or under any other Credit Document shall to the extent permitted by applicable laws be made free and clear of and without reduction or withholding for any Taxes. If, however, applicable laws require any Withholding Agent to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance with such laws as reasonably determined by such Withholding Agent.

 

(ii)                                If any Withholding Agent shall be required by applicable law to withhold or deduct any Taxes from any payment, then (A) such Withholding Agent shall withhold or make such deductions as are reasonably determined by such Withholding Agent to be required by applicable law, (B) such Withholding Agent shall timely pay the full amount withheld or deducted to the relevant Governmental Authority and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Credit Party shall be increased as necessary so that after any required withholding or deductions have been made (including withholding or deductions applicable to additional sums payable under this Section 5.4) each Lender (or, in the case of a payment to the Administrative Agent for its own account, the Administrative Agent) receives an amount equal to the sum it would have received had no such withholding or deductions been made.

 

(b)                                 Payment of Other Taxes by the Borrower.  Without limiting the provisions of subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law or timely reimburse the Administrative Agent or any Lender for the payment of any Other Taxes.

 

(c)                                  Tax Indemnifications.  Without limiting the provisions of clauses (a) or (b) above, (i)  the Borrower shall, and does hereby indemnify the Administrative Agent and each Lender, and shall make payment in respect thereof within 15 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 5.4) payable by the Administrative Agent or such Lender, as the case may be, 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 any such payment or liability (along with a written statement setting forth in reasonable detail the basis and calculation of such amounts) delivered to the Borrower by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  If the Borrower reasonably believes that any such Indemnified Taxes were not correctly or legally asserted, the Administrative Agent and/or each affected Lender will use reasonable efforts to cooperate with the Borrower in pursuing a refund of such Indemnified Taxes so long as such efforts would not, in the sole determination of the Administrative Agent or affected Lender, result in any additional costs, expenses or risks or be otherwise disadvantageous to it.

 

(d)                                 Evidence of Payments.  After any payment of Taxes by any Credit Party to a Governmental Authority as provided in this Section 5.4, the Borrower 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 any return required by laws to report such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

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(e)                                  Status of Lenders and the Administrative Agent; Tax Documentation.

 

(i)                                     Each Lender shall deliver to the Borrower and to the Administrative Agent, at such time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable laws or by the taxing authorities of any jurisdiction and such other reasonably requested information as will permit the Borrower or the Administrative Agent, as the case may be, to determine (A) whether or not any payments made hereunder or under any other Credit Document are subject to Taxes, (B) if applicable, the required rate of withholding or deduction and (C) such Lender’s entitlement to any available exemption from, or reduction of, applicable Taxes in respect of any payments to be made to such Lender by any Credit Party pursuant to any Credit Document or otherwise to establish such Lender’s status for withholding tax purposes in the applicable jurisdiction.  Any documentation and information required to be delivered by a Lender pursuant to this Section 5.4(e) (including any specific documentation set forth in clause (ii) below) shall be delivered by such Lender (1) on or prior to the Closing Date (or on or prior to the date it becomes a party to this Agreement), (2) on or before any date on which such documentation expires or becomes obsolete or invalid, (3) after the occurrence of any change in the Lender’s circumstances requiring a change in the most recent documentation previously delivered by it to the Borrower and the Administrative Agent and (4) from time to time thereafter if reasonably requested by the Borrower or the Administrative Agent, and each such Lender shall promptly notify in writing the Borrower and the Administrative Agent if such Lender is no longer legally eligible to provide any documentation previously provided. Notwithstanding anything to the contrary in the preceding sentence, the completion, execution and submission of such documentation (other than the documentation set forth in clauses (A), (B)(1)-(4) and (C) of Section 5.4(e)(ii) 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.

 

(ii)                                  Without limiting the generality of the foregoing:

 

(A)                               any Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Code (a “U.S. Lender”) shall deliver to the Borrower and the Administrative Agent executed copies of Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent, as the case may be, to determine whether or not such Lender is subject to backup withholding or information reporting requirements;

 

(B)                               each Non-U.S. Lender that is entitled under the Code or any applicable treaty to an exemption from or reduction of U.S. federal withholding tax with respect to any payments hereunder or under any other Credit Document shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) whichever of the following is applicable:

 

(1)                                 executed copies of Internal Revenue Service Form W-8BEN or Form W-8BEN-E (or any applicable successor form) claiming eligibility for benefits of an income tax treaty to which the United States is a party;

 

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(2)                                 executed copies of Internal Revenue Service Form W-8ECI (or any successor form thereto);

 

(3)                                 in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate, substantially in the form of Exhibit J-1, to the effect that such Non-U.S. Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10-percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and that no payments under any Credit Document are effectively connected with such Non-U.S. Lender’s conduct of a United States trade or business (a “U.S. Tax Compliance Certificate”) and (y) executed copies of Internal Revenue Service Form W-8BEN or Form W-8BEN-E (or any applicable successor form);

 

(4)                                 where such Lender is a partnership (for U.S. federal income tax purposes) or otherwise not a beneficial owner (e.g., where such Lender has sold a participation), Internal Revenue Service Form W-8IMY (or any successor thereto) and all required supporting documentation (including, where one or more of the underlying beneficial owner(s) is claiming the benefits of the portfolio interest exemption, a U.S.  Tax Compliance Certificate (substantially in the form of Exhibit J-2 or Exhibit J-3, as applicable) of such beneficial owner(s)) (provided that, if the Non-U.S. Lender is a partnership and not a participating Lender, the U.S. Tax Compliance Certificate(s) (substantially in the form of Exhibit J-4) may be provided by the Non-U.S. Lender on behalf of the direct or indirect partner(s)); or

 

(5)                                 executed originals of any other form prescribed by applicable laws as a basis for claiming exemption from or a reduction in U.S. federal withholding tax together with such supplementary documentation as may be prescribed by applicable laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made;

 

(C)                               if a payment made to a Lender under any Credit 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 and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower 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 or the Administrative Agent as may be necessary for the Borrower 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 (C), “FATCA” shall include any amendments made to FATCA after the date of this Agreement; and

 

(D)                               if the Administrative Agent is a “United States person” (as defined in 

 

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Section 7701(a)(30) of the Code), it shall provide the Borrower with two duly completed copies of Internal Revenue Service Form W-9.  If the Administrative Agent is not a “United States person” (as defined in Section 7701(a)(30) of the Code), it shall provide an applicable Form W-8 (together with required accompanying documentation) with respect to payments to be received by it on behalf of the Lenders.

 

(iii)                               Notwithstanding anything to the contrary in this Section 5.4, no Lender or the Administrative Agent shall be required to deliver any documentation that it is not legally eligible to deliver.

 

(f)                                   Treatment of Certain Refunds.  If the Administrative Agent or any Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes as to which it has been indemnified by any Credit Party or with respect to which any Credit Party has paid additional amounts pursuant to this Section 5.4, the Administrative Agent or such Lender (as applicable) shall promptly pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Credit Parties under this Section 5.4 with respect to the Indemnified Taxes giving rise to such refund), net of all out-of-pocket expenses (including any Taxes) incurred by the Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  In such event, the Administrative Agent or such Lender, as the case may be, shall, at the Borrower’s request, provide the Borrower with a copy of any notice of assessment or other evidence of the requirement to repay such refund received from the relevant taxing authority (provided that the Administrative Agent or such Lender may delete any information therein that it deems confidential).  Notwithstanding anything to the contrary in this paragraph (f), in no event will the Administrative Agent or any Lender be required to pay any amount to an indemnifying party pursuant to this paragraph (f) the payment of which would place the Administrative Agent or any Lender in a less favorable net after-Tax position than the Administrative Agent or any Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This subsection shall not be construed to require the Administrative Agent or any Lender to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to any Credit Party or any other Person.

 

(g)                                  For the avoidance of doubt, for purposes of this Section 5.4, the term “Lender” includes any Letter of Credit Issuer and any Swingline Lender and the term “applicable law” includes FATCA.

 

(h)                                 Each party’s obligations under this Section 5.4 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 the Credit Documents.

 

5.5                               Computations of Interest and Fees

 

(a)                                 Except as provided in the next succeeding sentence, interest on LIBOR Loans and ABR Loans shall be calculated on the basis of a 360-day year for the actual days elapsed. Interest on ABR Loans in respect of which the rate of interest is calculated on the basis of the Administrative Agent’s 

 

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prime rate shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed.

 

(b)                                 Fees and the average daily Stated Amount of Letters of Credit shall be calculated on the basis of a 360-day year for the actual days elapsed.

 

5.6                               Limit on Rate of Interest

 

(a)                                 No Payment Shall Exceed Lawful Rate.  Notwithstanding any other term of this Agreement, the Borrower shall not be obliged to pay any interest or other amounts under or in connection with this Agreement or otherwise in respect of the Obligations in excess of the amount or rate permitted under or consistent with any applicable law, rule or regulation.

 

(b)                                 Payment at Highest Lawful Rate.  If the Borrower is not obliged to make a payment that it would otherwise be required to make as a result of Section 5.6(a), the Borrower shall make such payment to the maximum extent permitted by or consistent with applicable laws, rules and regulations.

 

(c)                                  Adjustment if Any Payment Exceeds Lawful Rate.  If any provision of this Agreement or any of the other Credit Documents would obligate the Borrower to make any payment of interest or other amount payable to any Lender in an amount or calculated at a rate that would be prohibited by any applicable law, rule or regulation, then notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by law, such adjustment to be effected, to the extent necessary, by reducing the amount or rate of interest required to be paid by the Borrower to the affected Lender under Section 2.8; provided that, to the extent lawful, the interest or other amounts that would have been payable but were not payable as a result of the operation of this Section shall be cumulated and the interest 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.

 

Notwithstanding the foregoing, and after giving effect to all adjustments contemplated thereby, if any Lender shall have received from the Borrower an amount in excess of the maximum permitted by any applicable law, rule or regulation, then the Borrower shall be entitled, by notice in writing to the Administrative Agent, to obtain reimbursement from that Lender in an amount equal to such excess, and pending such reimbursement, such amount shall be deemed to be an amount payable by that Lender to the Borrower.

 

Section 6.                                           Conditions Precedent to Initial Borrowing

 

The initial Borrowing under this Agreement is subject to the satisfaction or waiver in accordance with the terms hereof of the following conditions precedent:

 

6.1                               Credit Documents

 

The Administrative Agent (or its counsel) shall have received:

 

(a)                                 this Agreement, executed and delivered by a duly Authorized Officer of Holdings, the Borrower and each Lender;

 

(b)                                 the Guarantee, executed and delivered by a duly Authorized Officer of each Guarantor;

 

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(c)                                  the Pledge Agreement, executed and delivered by a duly Authorized Officer of Holdings, the Borrower and each pledgor party thereto; and

 

(d)                                 the Security Agreement, executed and delivered by a duly Authorized Officer of each Holdings, the Borrower and each other grantor party thereto.

 

6.2                               Collateral. Except for any items referred to on Schedule 9.14(d)

 

(a)                                 All outstanding equity interests in whatever form of the Borrower and each Restricted Subsidiary that is directly owned by or on behalf of any Credit Party and required to be pledged pursuant to the Security Documents shall have been pledged pursuant thereto;

 

(b)                                 The Collateral Agent shall have received the certificates representing securities of the Borrower and of each Credit Party’s Wholly-Owned Restricted Subsidiaries that are Domestic Subsidiaries to the extent required to be delivered under the Security Documents and pledged under the Security Documents to the extent certificated, accompanied by instruments of transfer and undated stock powers or allonges endorsed in blank; and

 

(c)                                  All Uniform Commercial Code financing statements required to be filed, registered or recorded to create the Liens intended to be created by any Security Document and perfect such Liens to the extent required by such Security Document shall have been delivered to the Collateral Agent, and shall be in proper form, for filing, registration or recording.

 

(d)                                 The Guarantee shall be in full force and effect.

 

6.3                               Legal Opinions. The Administrative Agent (or its counsel) shall have received the executed legal opinions, in customary form, of (a) Simpson Thacher & Bartlett LLP, special New York, Delaware and California counsel to the Credit Parties and (b) McGuireWoods LLP, special Virginia counsel to the Credit Parties.  Holdings and the Borrower hereby instruct and agree to instruct the other Credit Parties to have such counsel deliver such legal opinions.

 

6.4                               Closing Certificates. The Administrative Agent (or its counsel) shall have received a certificate of the Credit Parties, dated the Closing Date, substantially in the form of Exhibit F, with appropriate insertions, executed by two Authorized Officers (which for this purpose may include one of the Secretary or Assistant Secretary) of each such Credit Party, and attaching the documents referred to in Section 6.5 and, in the case of the Borrower, certifying as to the matters set forth in Sections 6.10 and 7.1.

 

6.5                               Authorization of Proceedings of Holdings, the Borrower and the Guarantors; Corporate Documents. The Administrative Agent shall have received (i) a copy of the resolutions of the board of directors or other managers of Holdings, the Borrower and the other Guarantors (or a duly authorized committee thereof) authorizing (a) the execution, delivery and performance of the Credit Documents (and any agreements relating thereto) to which it is a party and (b) in the case of the Borrower, the extensions of credit contemplated hereunder, (ii) the Certificate of Incorporation and By-Laws, Certificate of Formation and Operating Agreement or other comparable organizational documents, as applicable, of Holdings, the Borrower and the other Guarantors and (iii) signature and incumbency certificates (or other comparable documents evidencing the same) of the Authorized Officers of Holdings, the Borrower and the other Guarantors executing the Credit Documents to which it is a party and certificates executed by it.

 

6.6                               Fees. The Agents and Lenders shall have received, substantially simultaneously with the funding of the Initial Term Loans, fees and, to the extent invoiced at least three business days prior to the 

 

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Closing Date (except as otherwise reasonably agreed by the Borrower) expenses in the amounts previously agreed in writing to be received on the Closing Date (which amounts may, at the Borrower’s option, be offset against the proceeds of the Initial Term Loans).

 

6.7                               Solvency Certificate. On the Closing Date, the Administrative Agent shall have received a certificate from the Chief Executive Officer, President, the Chief Financial Officer, the Treasurer, the Vice President-Finance or any other senior financial officer of Borrower to the effect that after giving effect to the consummation of the Transactions, the Borrower on a consolidated basis with its Restricted Subsidiaries is Solvent.

 

6.8                               PATRIOT Act. The Administrative Agent and the Joint Lead Arrangers shall have received at least three Business Days prior to the Closing Date such documentation and information as is reasonably requested in writing at least ten calendar days prior to the Closing Date by the Administrative Agent or the Joint Lead Arrangers about the Credit Parties to the extent required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act.

 

6.9                               Financial Statements. The Joint Lead Arrangers and Bookrunners shall have received the Historical Financial Statements and the audited consolidated balance sheets of Holdings and its consolidated Subsidiaries as at December 31, 2015 and the related audited consolidated statements of income and cash flows of Holdings and its consolidated Subsidiaries for the year ended December 31, 2015 and for the fiscal quarters ended March 31, 2016, June 30, 2016 and September 30, 2016.

 

6.10                        Refinancing. Substantially simultaneously with the funding of the Initial Term Loans, the Closing Date Refinancing shall be consummated.

 

For purposes of determining compliance with the conditions specified in Section 6 on the Closing Date, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

Section 7.                                           Conditions Precedent to All Credit Events

 

The agreement of each Lender to make any Loan requested to be made by it on any date (excluding Mandatory Borrowings and Revolving Loans required to be made by the Revolving Credit Lenders in respect of Unpaid Drawings pursuant to Sections 3.3 and 3.4 and the obligation of the Letter of Credit Issuer to issue Letters of Credit on any date is subject to the satisfaction (or waiver in accordance with the terms hereof) of the following conditions precedent:

 

7.1                               No Default; Representations and Warranties. At the time of each Credit Event and also after giving effect thereto (other than any Loan made pursuant to Section 2.14 (which shall be subject to the applicable terms of Section 2.14)) (a) no Default or Event of Default shall have occurred and be continuing and (b) all representations and warranties made by any Credit Party contained herein or in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of such Credit Event (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date) (provided that any such representation and warranty which is qualified by materiality, Material Adverse Effect or similar language shall be true and correct in all respects).

 

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7.2                               Notice of Borrowing; Letter of Credit Request

 

(a)                                 Prior to the making of each Term Loan, the Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section 2.3.

 

(b)                                 Prior to the making of each Revolving Loan (other than any Revolving Loan made pursuant to Section 3.4(a)) and each Swingline Loan, the Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section 2.3.

 

(c)                                  Prior to the issuance of each Letter of Credit, the Administrative Agent and the Letter of Credit Issuer shall have received a Letter of Credit Request meeting the requirements of Section 3.2(a).

 

(d)                                 The acceptance of the benefits of each Credit Event shall constitute a representation and warranty by each Credit Party to each of the Lenders that all the applicable conditions specified in Section 7 above have been satisfied as of that time.

 

Section 8.                                           Representations and Warranties

 

In order to induce the Lenders to enter into this Agreement and to make the Loans and issue or participate in Letters of Credit as provided for herein, Holdings and the Borrower make the following representations and warranties to the Lenders, all of which shall survive the execution and delivery of this Agreement, the making of the Loans and the issuance of the Letters of Credit (it being understood that the following representations and warranties shall be deemed made with respect to any Foreign Subsidiary only to the extent relevant under applicable law):

 

8.1                               Corporate Status. Each Credit Party (a) is a duly organized and validly existing corporation, limited liability company or other entity in good standing under the laws of the jurisdiction of its organization and has the corporate, limited liability company or other organizational power and authority to own its property and assets and to transact the business in which it is engaged and (b) has duly qualified and is authorized to do business and is in good standing (if applicable) in all jurisdictions where it is required to be so qualified, except where the failure to be so qualified would not reasonably be expected to result in a Material Adverse Effect.

 

8.2                               Corporate Power and Authority. Each Credit Party has the corporate or other organizational power and authority to execute, deliver and carry out the terms and provisions of the Credit Documents to which it is a party and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Credit Documents to which it is a party.  Each Credit Party has duly executed and delivered each Credit Document to which it is a party and each such Credit Document constitutes the legal, valid and binding obligation of such Credit Party enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

8.3                               No Violation. Neither the execution, delivery or performance by any Credit Party of the Credit Documents to which it is a party nor compliance with the terms and provisions thereof nor the consummation of the transactions contemplated hereby or thereby will (a) contravene any applicable provision of any material law, statute, rule, regulation, order, writ, injunction or decree of any court or governmental instrumentality, (b) result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of such Credit Party or any of the Restricted Subsidiaries (other than Liens created under the Credit Documents or Permitted Liens) pursuant to, the 

 

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terms of any material indenture, loan agreement, lease agreement, mortgage, deed of trust, agreement or other material instrument to which such Credit Party or any of the Restricted Subsidiaries is a party or by which it or any of its property or assets is bound (any such term, covenant, condition or provision, a “Contractual Requirement”) other than any such breach, default or Lien that would not reasonably be expected to result in a Material Adverse Effect or (c) violate any provision of the certificate of incorporation, by-laws, articles or other organizational documents of such Credit Party or any of the Restricted Subsidiaries.

 

8.4                               Litigation. There are no actions, suits or proceedings pending or, to the knowledge of Holdings or the Borrower, threatened in writing against Holdings, the Borrower or any of the Restricted Subsidiaries that would reasonably be expected to result in a Material Adverse Effect.

 

8.5                               Margin Regulations. Neither the making of any Loan hereunder nor the use of the proceeds thereof will violate the provisions of Regulation T, Regulation U or Regulation X.

 

8.6                               Governmental Approvals. The execution, delivery and performance of each Credit Document does not require any consent or approval of, registration or filing with, or other action by, any Governmental Authority, except for (i) such as have been obtained or made and are in full force and effect, (ii) filings, consents, approvals, registrations and recordings in respect of the Liens created pursuant to the Security Documents (and to release existing Liens) and (iii) such licenses, approvals, authorizations, registrations, filings or consents the failure of which to obtain or make would not reasonably be expected to result in a Material Adverse Effect.

 

8.7                               Investment Company Act. None of Holdings, the Borrower or any other Restricted Subsidiary is an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

8.8                               True and Complete Disclosure

 

(a)                                 None of the written factual information and written data (taken as a whole) heretofore or contemporaneously furnished by or on behalf of Holdings, the Borrower, any of the other Restricted Subsidiaries or any of their respective authorized representatives to the Administrative Agent, any Joint Lead Arranger and/or any Lender on or before the Closing Date (including all such written information and data contained in (i) the Lender Presentation (as updated prior to the Closing Date and including all information incorporated by reference therein) and (ii) the Credit Documents) for purposes of or in connection with this Agreement or any transaction contemplated herein contained any untrue statement of any material fact or omitted to state any material fact necessary to make such information and data (taken as a whole) not materially misleading at such time in light of the circumstances under which such information or data was furnished (after giving effect to all supplements and updates), it being understood and agreed that for the purposes of this Section 8.8(a), such factual information and data shall not include pro forma financial information, projections, estimates (including financial estimates, forecasts and other forward-looking information) or other forward looking information and information of a general economic or general industry nature.

 

(b)                                 The projections (including financial estimates, forecasts and other forward-looking information) contained in the information and data referred to in paragraph (a) above were based on good faith estimates and assumptions believed by such Persons to be reasonable at the time made, it being recognized by the Lenders that such projections as to future events are not to be viewed as facts 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.

 

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8.9                               Financial Condition; Financial Statements; No Material Adverse Effect

 

(a)

 

(i)                                     The unaudited historical consolidated financial information of Holdings as set forth in the Lender Presentation and

 

(ii)                                  the Historical Financial Statements, in each case present fairly in all material respects the consolidated financial position of Holdings at the respective dates of said information, statements and results of operations for the respective periods covered thereby.

 

The financial statements referred to in Section 8.9(a)(ii) have been prepared in accordance with GAAP consistently applied except to the extent provided in the notes to said financial statements.

 

(b)                                 There has been no Material Adverse Effect since December 31, 2015.

 

Each Lender and the Administrative Agent hereby acknowledges and agrees that Holdings and its Subsidiaries may be required to restate historical financial statements as the result of the implementation of changes in GAAP or IFRS or the respective interpretation thereof and that any such restatements that result solely from any such change in GAAP or IFRS will not, in and of themselves, result in a Default or an Event of Default under the Credit Documents.

 

8.10                        Compliance with Laws; No Default. Each Credit Party and its Restricted Subsidiaries are in compliance with all Requirements of Law applicable to it or its property, except where the failure to be so in compliance, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

 

8.11                        Tax Matters. Except as would not reasonably be expected to have a Material Adverse Effect, (a) each of Holdings, the Borrower and each of the other Restricted Subsidiaries has filed all Tax returns required to be filed by it and has timely paid all Taxes payable by it (whether or not shown on a Tax return and including in its capacity as withholding agent) that have become due, other than those being contested in good faith and by proper proceedings if it has maintained adequate reserves (in the good faith judgment of management of Holdings, the Borrower or such Restricted Subsidiary, as applicable) with respect thereto in accordance with GAAP and (b) each of Holdings, the Borrower and each of the Restricted Subsidiaries has paid, or has provided adequate reserves (in the good faith judgment of management of Holdings, the Borrower or such Restricted Subsidiary, as applicable) in accordance with GAAP for the payment of all Taxes not yet due and payable.  There is no current or proposed Tax assessment, deficiency or other claim against Holdings, the Borrower or any Restricted Subsidiary that would reasonably be expected to result in a Material Adverse Effect.

 

8.12                        Compliance with ERISA.

 

(a)                                 Except as would not reasonably be expected to have a Material Adverse Effect, no ERISA Event has occurred or is reasonably expected to occur.

 

(b)                                 Except as would not reasonably be expected to have a Material Adverse Effect, no Foreign Plan Event has occurred or is reasonably expected to occur.

 

8.13                        Subsidiaries. Schedule 8.13 lists each Subsidiary of Holdings and the Borrower (and the 

 

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direct and indirect ownership interest of Holdings and the Borrower therein), in each case existing on the Closing Date after giving effect to the Transactions.

 

8.14                        Intellectual Property. Each of Holdings, the Borrower and the other Restricted Subsidiaries owns or has the right to use all Intellectual Property that is used in or otherwise necessary for the operation of their respective businesses as currently conducted, except where the failure to own or have a right to use such Intellectual Property would not reasonably be expected to have a Material Adverse Effect.

 

8.15                        Environmental Laws.

 

(a)                                 Except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect:  (i) each of Holdings, the Borrower and the Subsidiaries and their respective operations and properties are and have been in compliance with all Environmental Laws and any permits issued, or any approval given, under any such Environmental Law; (ii) neither Holdings, nor the Borrower nor any Subsidiary has either received written notice of any Environmental Claim or has knowledge of any existing facts or conditions that would reasonably be expected to give rise to any such Environmental Claim; (iii) neither Holdings, nor the Borrower nor any Subsidiary is conducting any investigation, removal, remedial or other corrective action pursuant to any Environmental Law at any location; and (iv) to the knowledge of the Borrower, no underground or above ground storage tank or related piping, or any impoundment or other disposal area containing Hazardous Materials is located at, on or under any Real Estate currently owned or leased by Holdings, the Borrower or any of the Subsidiaries.

 

(b)                                 Neither Holdings, nor the Borrower nor any of the Subsidiaries has treated, stored, transported, Released or arranged for disposal or transport for disposal or treatment of Hazardous Materials at, on, under or from any currently or formerly owned or operated property nor, to the knowledge of the Borrower, has there been any other Release of Hazardous Materials at, on, under or from any such properties, in each case, in a manner that would reasonably be expected to have a Material Adverse Effect.

 

8.16                        Properties. Each of Holdings, the Borrower and the Subsidiaries have good and valid record title to or valid leasehold interests in all properties that are necessary for the operation of their respective businesses as currently conducted and as proposed to be conducted, free and clear of all Liens (other than any Liens permitted by this Agreement) and except where the failure to have such good title would not reasonably be expected to have a Material Adverse Effect and no Mortgage encumbers improved Real Estate that is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards within the meaning of the National Flood Insurance Act of 1968, as amended, unless flood insurance available under such Act has been obtained in accordance with Section 9.3(b).

 

8.17                        Solvency. On the Closing Date (after giving effect to the Transactions) immediately following the making of the Loans and after giving effect to the application of the proceeds of such Loans, Holdings, the Borrower and the Restricted Subsidiaries on a consolidated basis will be Solvent.

 

8.18                        Sanctions and Anti-Terrorism Laws; FCPA.

 

(a)                                 The use of proceeds of the Loans will not violate applicable Sanctions and Anti-Terrorism Laws in any material respect.

 

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(b)                                 Except as would not reasonably be expected to have Material Adverse Effect and to the extent applicable, each of Holdings and its Subsidiaries is in compliance with applicable Sanctions and Anti-Terrorism Laws and the FCPA.

 

(c)                                  Except as would not reasonably be expected to have a Material Adverse Effect, no part of the proceeds of any Loan will be used, directly or, to the knowledge of the Borrower, indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the FCPA.

 

8.19                        Security Interest in Collateral. The provisions of this Agreement and the other Credit Documents create legal, valid and enforceable Liens on all of the Collateral in favor of the Collateral Agent, for the benefit itself and the other Secured Parties, subject, as to enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and to general principles of equity and principles of good faith and fair dealing, and upon the making of such filings and taking of such other actions required to be taken hereby or by the applicable Credit Documents (including the filing of appropriate financing statements with the office of the Secretary of State of the state of organization of each Credit Party, the filing of appropriate assignments or notices with the U.S. Patent and Trademark Office and the U.S. Copyright Office, and the proper recordation of Mortgages and fixture filings with respect to any Mortgaged Property, in each case in favor of the Collateral Agent for the benefit of the Secured Parties and the delivery to the Collateral Agent of any stock certificates or promissory notes required to be delivered pursuant to the applicable Credit Documents), such Liens constitute perfected and continuing Liens on the Collateral of the type required by the Security Documents, securing the Obligations.

 

Section 9.                                           Affirmative Covenants.

 

Each of Holdings and the Borrower hereby covenants and agrees that on the Closing Date and thereafter, until the Commitments, the Swingline Commitment and each Letter of Credit have terminated or, in the case of Letters of Credit, been Cash Collateralized in accordance with the terms of this Agreement and the Loans and Unpaid Drawings, together with interest, Fees and all other Obligations incurred hereunder (other than contingent indemnity obligations as to which no valid demand has been made, Secured Hedge Obligations, Secured Cash Management Obligations and Letters of Credit Cash Collateralized in accordance with the terms of this Agreement), are paid in full:

 

9.1                               Information Covenants. The Borrower will furnish to the Administrative Agent (which shall promptly make such information available to the Lenders in accordance with its customary practice):

 

(a)                                 Annual Financial Statements.  As soon as available and in any event on or before the date that is 90 days after the end of each such fiscal year, the consolidated balance sheets of Holdings and the Restricted Subsidiaries as at the end of each fiscal year and the related consolidated statements of operations and cash flows for such fiscal year, setting forth comparative consolidated figures for the preceding fiscal years, all in reasonable detail and prepared in accordance with GAAP and, in each case, certified by an independent certified public accountant of recognized national standing whose opinion shall not be qualified as to the scope of audit or as to the status of Holdings or any of the Material Subsidiaries (or group of Subsidiaries that together would constitute a Material Subsidiary) as a going concern (other than any qualification that is expressly solely with respect to, or expressly resulting solely from, (i) an upcoming maturity date under any Indebtedness or (ii) any potential inability to satisfy a financial maintenance covenant on a future date or in a future period.

 

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(b)                                 Quarterly Financial Statements.  With respect to each of the first three quarterly accounting periods in each fiscal year of Holdings as soon as available and in any event on or before the date that is 45 days after the end of each such quarterly accounting period, the consolidated balance sheets of Holdings and the Restricted Subsidiaries as at the end of such quarterly period and the related consolidated statements of operations for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of such quarterly period, and the related consolidated statement of cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of the applicable quarterly period, and commencing with the quarter ending March 31, 2017 setting forth comparative consolidated figures for the related periods in the prior fiscal year or, in the case of such consolidated balance sheet, for the last day of the related period in the prior fiscal year, all of which shall be certified by an Authorized Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations and cash flows of Holdings and its Restricted Subsidiaries in accordance with GAAP (except as noted therein), subject to changes resulting from normal year-end adjustments and the absence of footnotes.

 

(c)                                  Budgets.  Within 90 days after the commencement of each fiscal year of Holdings, a consolidated budget of Holdings in reasonable detail on a quarterly basis for such fiscal year as customarily prepared by management of Holdings for its internal use consistent in scope with the financial statements provided pursuant to Section 9.1(a), setting forth the principal assumptions upon which such budget is based (collectively, the “Projections”), which Projections shall in each case be accompanied by a certificate of an Authorized Officer of Holdings or the Borrower stating that such Projections have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections and at the time of delivery thereof to the Administrative Agent, it being understood and agreed that such Projections and assumptions as to future events are not to be viewed as facts 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.

 

(d)                                 Officer’s Certificates.  Not later than five days after the delivery of the financial statements provided for in Sections 9.1(a) and 9.1(b), a certificate of an Authorized Officer of the Borrower to the effect that no Default or Event of Default exists or, if any Default or Event of Default does exist, specifying the nature and extent thereof, as the case may be, which certificate shall set forth (i) a specification of any change in the identity of the Restricted Subsidiaries and Unrestricted Subsidiaries as at the end of such fiscal year or period, as the case may be, from the Restricted Subsidiaries and Unrestricted Subsidiaries, respectively, provided to the Lenders on the Closing Date or the most recent fiscal year or period, as the case may be and (ii) the then applicable Consolidated Total Debt to Consolidated EBITDA Ratio and Fixed Charge Coverage Ratio and underlying calculations in connection therewith therewith and (iii) the amount of any Pro Forma Adjustment not previously set forth in a Pro Forma Adjustment Certificate or any change in the amount of a Pro Forma Adjustment set forth in any Pro Forma Adjustment Certificate previously provided and, in either case, in reasonable detail, the calculations and basis therefor.  At the time of the delivery of the financial statements provided for in Section 9.1(a), a certificate of an Authorized Officer of the Borrower setting forth changes to the legal name, jurisdiction of formation, type of entity and organizational number (or equivalent) to the Person organized in a jurisdiction where an organizational identification number is required to be included in a Uniform Commercial Code financing statement, in each case for each Credit Party or confirming that there has been no change in such information since the Closing Date or the date of the most recent certificate delivered pursuant to this Clause (d), as the case may be.

 

(e)                                  Notice of Default or Litigation.  Promptly after an Authorized Officer of Holdings or any of the Restricted Subsidiaries obtains knowledge thereof, notice of:

 

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(i)                                     the occurrence of any event that constitutes a Default or Event of Default, which notice shall specify the nature thereof, the period of existence thereof and what action Holdings proposes to take with respect thereto and

 

(ii)                                  any litigation or governmental proceeding pending against Holdings or any of the Subsidiaries that would reasonably be expected to be determined adversely and, if so determined, to result in a Material Adverse Effect.

 

(f)                                   Environmental Matters.  Promptly after an Authorized Officer of Holdings or any of the Restricted Subsidiaries obtains knowledge of any one or more of the following environmental matters, unless such environmental matters would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, notice of:

 

(i)                                     any pending or threatened Environmental Claim against any Credit Party or any Real Estate; and

 

(ii)                                  the conduct of any investigation, or any removal, remedial or other corrective action in response to the actual or alleged presence, Release or threatened Release of any Hazardous Material on, at, under or from any Real Estate.

 

All such notices shall describe in reasonable detail the nature of the claim, investigation or removal, remedial or other corrective action in response thereto.  The term “Real Estate” shall mean land, buildings, facilities and improvements owned or leased by any Credit Party.

 

(g)                                  Other Information.  (x) Promptly upon filing thereof, copies of any filings (including on Form 10-K, 10-Q or 8-K) or registration statements (other than drafts of pre-effective versions of registration statements) with, and reports to, the SEC or any analogous Governmental Authority in any relevant jurisdiction by Holdings or any of the Restricted Subsidiaries (other than amendments to any registration statement (to the extent such registration statement, in the form it becomes effective, is delivered to the Administrative Agent), exhibits to any registration statement and, if applicable, any registration statements on Form S-8) and copies of all financial statements, proxy statements, notices and reports that Holdings or any of the Restricted Subsidiaries shall send to the holders of any publicly issued debt of Holdings and/or any of the Restricted Subsidiaries (including the Senior Notes), in their capacity as such holders, lenders or agents (in each case to the extent not theretofore delivered to the Administrative Agent pursuant to this Agreement) and, (y) with reasonable promptness, such other information (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender (acting through the Administrative Agent) may reasonably request in writing from time to time; provided that none of Holdings, the Borrower nor any other Restricted Subsidiary will be required to disclose or permit the inspection or discussion of any document, information or other matter (i) that constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or their respective contractors) is prohibited by law or any binding agreement with an unaffiliated third party not entered into to prevent the foregoing or (iii) that is subject to attorney client or similar privilege or constitutes attorney work product; provided that any rights of the Administrative Agent or the Lenders to visit and inspect any of the properties or assets of Holdings or any of its Subsidiaries shall be subject to the limitations set forth in Section 9.2.

 

(h)                                 Pro Forma Adjustment Certificate.  Not later than five Business Days after any date on which financial statements are delivered with respect to any Test Period in which a Pro Forma Adjustment is made as a result of the consummation of the acquisition of any Acquired Entity or Business by Holdings or any Restricted Subsidiary for which there shall be a Pro Forma Adjustment, a certificate

 

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of an Authorized Officer of Holdings setting forth the amount of such Pro Forma Adjustment and, in reasonable detail, the calculations and basis therefor.

 

Notwithstanding the foregoing, the obligations in clauses (a) and (b) of this Section 9.1 may be satisfied with respect to financial information of Holdings and the Restricted Subsidiaries by furnishing (A) the applicable financial statements of the Borrower or any direct or indirect parent of Holdings or (B) Holdings’ (or any direct or indirect parent thereof), as applicable, Form 10-K or 10-Q, as applicable, filed with the SEC; provided that, with respect to each of subclauses (A) and (B) of this paragraph, to the extent such information relates to Holdings’ parent, or to the Borrower, such information is accompanied by consolidating or other information that explains in reasonable detail the differences between the information relating to such parent or the Borrower, on the one hand, and the information relating to Holdings and the Restricted Subsidiaries on a standalone basis, on the other hand.

 

Documents required to be delivered pursuant to clauses (a), (b) and (g)(x) of this Section 9.1 (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the earliest date on which (i) the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet; (ii) such documents are posted on the Borrower’s behalf on IntraLinks/IntraAgency or another 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), or (iii) such financial statements and/or other documents are posted on the SEC’s website on the internet at www.sec.gov, provided that the Borrower has notified the Administrative Agent of such posting.

 

9.2                               Books, Records and Inspections. Holdings will, and will cause each Restricted Subsidiary to, permit officers and designated representatives of the Administrative Agent or the Required Lenders to visit and inspect any of the properties or assets of Holdings and any such Subsidiary in whomsoever’s possession to the extent that it is within such party’s control to permit such inspection (and shall use commercially reasonable efforts to cause such inspection to be permitted to the extent that it is not within such party’s control to permit such inspection), and to examine the books and records of Holdings and any such Subsidiary and discuss the affairs, finances and accounts of Holdings and of any such Subsidiary with, and be advised as to the same by, its and their officers and independent accountants, all at such reasonable times and intervals and to such reasonable extent as the Administrative Agent or the Required Lenders may desire (and subject, in the case of any such meetings or advice from such independent accountants, to such accountants’ customary policies and procedures); provided that, excluding any such visits and inspections during the continuation of an Event of Default, (a) only the Administrative Agent on behalf of the Required Lenders may exercise rights of the Administrative Agent and the Lenders under this Section 9.2, (b) the Administrative Agent shall not exercise such rights more than one time in any calendar year, which such visit will be at Holdings’ expense and (c) notwithstanding anything to the contrary in this Section 9.2, none of Holdings or any of the Restricted Subsidiaries will be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by law or any binding agreement with an unaffiliated third party, not entered into to prevent the foregoing or (iii) is subject to attorney-client or similar privilege or constitutes attorney work product; provided, further, that when an Event of Default exists, the Administrative Agent (or any of its respective representatives or independent contractors) or any representative of the Required Lenders may do any of the foregoing at the expense of Holdings at any time during normal business hours and upon reasonable advance notice.  The Administrative Agent and the Required Lenders shall give Holdings the opportunity to participate in any discussions with Holdings’ independent public accountants.

 

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9.3                               Maintenance of Insurance. (a) Holdings and the Borrower will, and will cause each Material Subsidiary to, at all times maintain in full force and effect, pursuant to self-insurance arrangements or with insurance companies that Holdings believes (in the good faith judgment of the management of Holdings) are financially sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts (after giving effect to any self-insurance which Holdings believes (in the good faith judgment of management of Holdings) is reasonable and prudent in light of the size and nature of its business and the availability of insurance on a cost-effective basis) and against at least such risks (and with such risk retentions) as Holdings believes (in the good faith judgment of management of Holdings) is reasonable and prudent in light of the size and nature of its business and the availability of insurance on a cost-effective basis; and will furnish to the Administrative Agent, promptly following written request from the Administrative Agent, information presented in reasonable detail as to the insurance so carried and (b) with respect to each Mortgaged Property, Holdings will (or will cause the applicable Credit Party to) obtain flood insurance in such total amount as may reasonably be required by the Collateral Agent, if at any time the area in which any improvements located on any Mortgaged Property is designated a “special flood hazard area” in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), and otherwise comply with the National Flood Insurance Program as set forth in the Flood Disaster Protection Act of 1973, as amended from time to time.  Each such policy of insurance shall (i) name the Collateral Agent, on behalf of the Secured Parties as an additional insured thereunder as its interests may appear and (ii) in the case of each casualty insurance policy, contain a loss payable clause or endorsement that names the Collateral Agent, on behalf of the Secured Parties as the loss payee thereunder.

 

9.4                               Payment of Taxes. Holdings will pay and discharge, and will cause each of the Restricted Subsidiaries to pay and discharge, all material Taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any properties belonging to it, prior to the date on which material penalties attach thereto, and all lawful material claims in respect of any Taxes imposed, assessed or levied that, if unpaid, would reasonably be expected to become a material Lien upon any properties of Holdings or any of the Restricted Subsidiaries; provided that neither Holdings nor any of the Restricted Subsidiaries shall be required to pay any such Tax, assessment or governmental charge, levy or claim that is being contested in good faith and by proper proceedings if it has maintained adequate reserves (in the good faith judgment of management of Holdings) with respect thereto in accordance with GAAP and the failure to pay would not reasonably be expected to result in a Material Adverse Effect.

 

9.5                               Preservation of Existence; Consolidated Corporate Franchises. Holdings and the Borrower will, and will cause each Material Subsidiary to, take all actions necessary (a) to preserve and keep in full force and effect its existence, organizational rights and authority and (b) to maintain its rights, privileges (including its good standing (if applicable)), permits, licenses and franchises necessary in the normal conduct of its business, in each case, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect; provided, however, that Holdings and its Subsidiaries may consummate any transaction permitted under “Permitted Investments” and Sections 10.2, 10.3, 10.4 or 10.5.

 

9.6                               Compliance with Statutes, Regulations, Etc. Holdings will, and will cause each Restricted Subsidiary to, (a) comply with all applicable laws, rules, regulations and orders, including, without limitation, applicable Sanctions and Anti-Terrorism Laws and the FCPA, and all governmental approvals or authorizations required to conduct its business, and to maintain all such governmental approvals or authorizations in full force and effect, (b) comply with, and use commercially reasonable efforts to ensure compliance by all tenants and subtenants, if any, with, all Environmental Laws, and obtain and comply with and maintain, and use commercially reasonable efforts to ensure that all tenants and subtenants obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations or

 

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permits required by Environmental Laws and (c) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal, and other actions required under Environmental Laws and promptly comply with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws, other than such orders and directives which are being timely contested in good faith by proper proceedings, except in each case of (a), (b) and (c) of this Section 9.6, where the failure to do so would not reasonably be expected to result in a Material Adverse Effect.

 

9.7                               ERISA. (a) The Borrower will furnish to the Administrative Agent promptly following receipt thereof, copies of any documents described in Sections 101(k) or 101(l) of ERISA that any Credit Party or any of its ERISA Affiliates may request with respect to any Multiemployer Plan; provided that if the Credit Parties or any of their ERISA Affiliates have not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, then, upon reasonable request of the Administrative Agent, the Credit Parties and/or their ERISA Affiliates shall promptly make a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents and notices to the Administrative Agent promptly after receipt thereof; provided, further, that the rights granted to the Administrative Agent in this Section shall be exercised not more than once during a 12-month period and (b) the Borrower will notify the Administrative Agent promptly following the occurrence of any ERISA Event or Foreign Plan Event that, alone or together with any other ERISA Events or Foreign Plan Events that have occurred, would reasonably be expected to result in liability of any Credit Party that would reasonably be expected to have a Material Adverse Effect.

 

9.8                               Maintenance of Properties. Holdings will, and will cause each of the Restricted Subsidiaries to, keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear, casualty and condemnation excepted, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

9.9                               Transactions with Affiliates. Holdings will conduct, and cause each of the Restricted Subsidiaries to conduct, all transactions with any of its Affiliates (other than Holdings, the Borrower and the Restricted Subsidiaries) involving aggregate payments or consideration in excess of $5,000,000 for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Affiliate transaction, for any individual transaction or series of related transactions on terms that are at least substantially as favorable to Holdings or such Restricted Subsidiary as it would obtain in a comparable arm’s-length transaction with a Person that is not an Affiliate, as determined by the board of directors of Holdings or such Restricted Subsidiary in good faith; provided that the foregoing restrictions shall not apply to (a) the payment of customary fees to the Sponsor for management, consulting and financial services rendered to Holdings and the Restricted Subsidiaries and customary investment banking fees paid to the Sponsor for services rendered to Holdings and the Subsidiaries in connection with divestitures, acquisitions, financings and other transactions which payments are approved by a majority of the board of directors of Holdings in good faith, (b) transactions permitted by Section 10.5, (c)  consummation of the Transactions and the payment of the Transaction Expenses, (d) the issuance of Capital Stock or Stock Equivalents of Holdings (or any direct or indirect parent thereof) or any of its Subsidiaries not otherwise prohibited by the Credit Documents, (e) loans, advances and other transactions between or among Holdings, any Restricted Subsidiary or any joint venture (regardless of the form of legal entity) in which Holdings or any Subsidiary has invested (and which Subsidiary or joint venture would not be an Affiliate of Holdings but for Holdings’ or a Subsidiary’s ownership of Capital Stock or Stock Equivalents in such joint venture or Subsidiary) to the extent permitted under Section 10, (f) employment and severance arrangements between Holdings and the Restricted Subsidiaries and their respective officers, employees or consultants (including management and employee benefit plans or agreements, stock option plans and other compensatory arrangements) in the ordinary course of business (including loans and advances in connection therewith), (g) payments by Holdings (and any direct or indirect parent thereof) and the

 

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Subsidiaries pursuant to the tax sharing agreements among Holdings (and any such parent) and the Subsidiaries; provided that in each case the amount of such payments in any fiscal year does not exceed the amount that Holdings, its Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent of the amount received in cash from Unrestricted Subsidiaries) would be required to pay in respect of foreign, federal, state and local taxes for such fiscal year were Holdings, its Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent described above) to pay such taxes separately from any such direct or indirect parent company of Holdings, (h) the payment of customary fees and reasonable out of pocket costs to, and indemnities provided on behalf of, directors, managers, consultants, officers, employees of Holdings (or any direct or indirect parent thereof) and the Subsidiaries in the ordinary course of business to the extent attributable to the ownership or operation of Holdings and the Subsidiaries, (i) transactions undertaken pursuant to membership in a purchasing consortium, (j) transactions pursuant to any agreement or arrangement as in effect as of the Closing Date, or any amendment thereto (so long as any such amendment is not disadvantageous in any material respect to the Lenders when taken as a whole as compared to the applicable agreement as in effect on the Closing Date), (k) the existence and performance of agreements and transactions with any Unrestricted Subsidiary that were entered into prior to the designation of a Restricted Subsidiary as such Unrestricted Subsidiary to the extent that the transaction was permitted at the time that it was entered into with such Restricted Subsidiary and transactions entered into by an Unrestricted Subsidiary with an Affiliate prior to the redesignation of any such Unrestricted Subsidiary as a Restricted Subsidiary; provided that such transaction was not entered into in contemplation of such designation or redesignation, as applicable, (l) Affiliate repurchases of the Loans or Commitments to the extent permitted hereunder and the holding of such Loans or Commitments and the payments and other transactions contemplated herein in respect thereof to the extent permitted hereunder and (m) any customary transactions with a Receivables Subsidiary effected as part of a Receivables Facility.

 

9.10                        End of Fiscal Years.  Holdings will, for financial reporting purposes, cause each of its, and each of the Restricted Subsidiaries’, fiscal years to end on dates consistent with past practice; provided, however, that Holdings may, upon written notice to the Administrative Agent change the financial reporting convention specified above to (x) align the dates of such fiscal year and for any Restricted Subsidiary whose fiscal years end on dates different from those of Holdings or (y) any other financial reporting convention (including a change of fiscal year) reasonably acceptable (such consent not to be unreasonably withheld or delayed) to the Administrative Agent, in which case Holdings and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such change in financial reporting.

 

9.11                        Additional Guarantors and Grantors; Additional Borrower.

 

(a)                                 Subject to any applicable limitations set forth in the Security Documents, Holdings will cause each direct or indirect Subsidiary (other than any Excluded Subsidiary) formed or otherwise purchased or acquired after the Closing Date (including pursuant to a Permitted Acquisition), and each other Subsidiary that ceases to constitute an Excluded Subsidiary, within 60 days from the date of such formation, acquisition or cessation, as applicable (or such longer period as the Administrative Agent may agree in its reasonable discretion), and Holdings may at its option cause any Subsidiary, to execute a supplement to each of the Guarantee, the Pledge Agreement and the Security Agreement in order to become a Guarantor under the Guarantee and a grantor under such Security Documents or, to the extent reasonably requested by the Collateral Agent, enter into a new Security Document substantially consistent with the analogous existing Security Documents and otherwise in form and substance reasonably satisfactory to such Collateral Agent and take all other action reasonably requested by the Collateral Agent to grant a perfected security interest in its assets to substantially the same extent as created by the Credit Parties on the Closing Date, or if applicable, after the Closing Date if in accordance with the 

 

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provisions of the then existing Credit Documents. For the avoidance of doubt, no Credit Party or any Restricted Subsidiary that is a Domestic Subsidiary shall be required to take any action outside the United States to perfect any security interest in the Collateral (including the execution of any agreement, document or other instrument governed  by the law of any jurisdiction other than the United States, any State thereof or the District of Columbia).

 

(b)                                 The Borrower may, by delivery to the Administrative Agent of a Borrower Designation Agreement duly executed by the Borrower and any proposed Additional Borrower that is a Wholly-Owned Subsidiary, designate such Wholly-Owned Subsidiary as an “Additional Borrower” for purposes of this Agreement and the Revolving Credit Facility hereunder, and, so long as such designation is reasonably acceptable to the Administrative Agent, such designation shall become effective upon (i) the execution and delivery to the Administrative Agent of (A) the aforementioned executed Borrower Designation Agreement, (B) a certificate of such Additional Borrower, including the attachments specified in Section 6.5, (C) if such Additional Borrower is not already a Guarantor, all Security Documents, guarantees and other documents and instruments as such Additional Borrower shall be required to deliver to become a Guarantor and (D) a customary legal opinion, (ii) the delivery to the Administrative Agent of all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations and (iii) the Administrative Agent receiving satisfactory tax and regulatory advice that such proposed Additional Borrower does not increase the amount of Taxes that are not indemnifiable under Section 5.4 or otherwise the applicable Credit Parties shall enter into an amendment reasonably satisfactory to the Administrative Agent and Holdings in connection therewith.  Notwithstanding anything in this Agreement to the contrary, (i) no Lender shall be obligated to make any Loans to any Additional Borrower, (ii) to the extent any Lender commits to make a Loan under the Revolving Credit Facility to such Additional Borrower, the Total Revolving Credit Commitments shall not be increased and none of the Revolving Credit Commitment and Revolving Credit Commitment of any Lender shall be increased without such Lender’s prior written consent and (iii) the Revolving Credit Commitments that are made available to any Additional Borrower shall not exceed the Dollar Equivalent of an amount to be agreed by the Administrative Agent, Holdings and the Lenders providing such commitments.

 

9.12                        Pledge of Additional Stock and Evidence of Indebtedness. Subject to any applicable limitations set forth in the Security Documents and other than (x) when in the reasonable determination of the Administrative Agent and Holdings (as agreed to in writing), the cost or other consequences of doing so would be excessive in view of the benefits to be obtained by the Lenders therefrom or (y) to the extent doing so would result in material adverse tax consequences as reasonably determined by Holdings in consultation with the Administrative Agent, Holdings will cause (i) all certificates representing Capital Stock and Stock Equivalents of any Restricted Subsidiary (other than (x) any Excluded Stock and Stock Equivalents and (y) any Capital Stock and Stock Equivalents issued by any Restricted Subsidiary for so long as such Restricted Subsidiary does not (on a consolidated basis with its Restricted Subsidiaries) constitute a Material Subsidiary) held directly by the Borrower or any Guarantor, (ii) all evidences of Indebtedness in excess of $10,000,000 received by the Borrower or any of the Guarantors in connection with any disposition of assets pursuant to Section 10.4(b) and (iii) any promissory notes executed after the Closing Date evidencing Indebtedness in excess of $10,000,000 of Holdings or any Subsidiary that is owing to the Borrower or any Guarantor, in each case, to be delivered to the Collateral Agent as security for the Obligations accompanied by undated instruments of transfer executed in blank under the Security Documents.  Notwithstanding the foregoing any promissory note among Holdings and/or its Subsidiaries need not be delivered to the Collateral Agent so long as (i) a global intercompany note superseding such promissory note has been delivered to the Collateral Agent, (ii) such promissory note is not delivered to any party other than Holdings or the Subsidiaries in each case owed money thereunder and (iii) such promissory note indicates on its face that it is subject to the security interest of the Collateral Agent.

 

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9.13                        Use of Proceeds

 

(a)                                 The Borrower will use the proceeds of the Initial Term Loans and the proceeds of any borrowing by it under the Revolving Credit Facility on the Closing Date and Holdings’ cash on hand to effect the Transactions.

 

(b)                                 The Borrower will use Letters of Credit, Revolving Loans and Swingline Loans for working capital and for other general corporate purposes (including any transactions not prohibited by the Credit Documents).

 

9.14                        Further Assurances

 

(a)                                 Subject to the terms of Sections 9.11 and 9.12, this Section 9.14 and the Security Documents, Holdings will, and will cause each other Credit Party to, execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents) that may be required under any applicable law, or that the Collateral Agent or the Required Lenders may reasonably request, in order to grant, preserve, protect and perfect the validity and priority of the security interests created or intended to be created by the applicable Security Documents, all at the expense of Holdings and the Restricted Subsidiaries.

 

(b)                                 Subject to any applicable limitations set forth in the Security Documents and other than (x) when in the reasonable determination of the Administrative Agent and the Borrower (as agreed to in writing), the cost or other consequences of doing so would be excessive in view of the benefits to be obtained by the Lenders therefrom or (y) to the extent doing so would result in adverse tax consequences as reasonably determined by the Borrower in consultation with the Administrative Agent, if any assets (other than Excluded Property) (including any real estate or improvements thereto or any interest therein but excluding any real estate which the applicable Credit Party intends to dispose of pursuant to a Permitted Sale Leaseback so long as actually disposed of within 270 days of acquisition (or such longer period as the Administrative Agent may reasonably agree)) with a Fair Market Value in excess of $25,000,000 are acquired by Holdings or any other Credit Party after the Closing Date (other than assets constituting Collateral under a Security Document that become subject to the Lien of the applicable Security Document upon acquisition thereof) that are of a nature secured by a Security Document or that constitute a fee interest in real property in the United States, the Borrower will notify the Collateral Agent and, if requested by the Collateral Agent, Holdings will cause such assets to be subjected to a Lien securing the Obligations (provided, however, that in the event any Mortgage delivered pursuant to this clause (b) shall incur any mortgage recording tax or similar charges in connection with the recording thereof, such Mortgage shall not secure an amount in excess of the Fair Market Value of the applicable Mortgaged Property) and will take, and cause the other applicable Credit Parties to take, such actions as shall be necessary or reasonably requested by the Collateral Agent, as soon as commercially reasonable but in no event later than 90 days after such acquisition, unless extended by the Administrative Agent in its sole discretion, to grant and perfect such Liens consistent with the applicable requirements of the Security Documents, including actions described in Section 9.14(a).

 

(c)                                  Any Mortgage delivered to the Administrative Agent in accordance with the preceding clause (b) shall be received as soon as commercially reasonable but in no event later than 90 days (except as set forth in the preceding clause (b)) after acquisition of such property or failure to dispose of such property as contemplated by such clause (b), unless extended by the Administrative Agent in its sole discretion and accompanied by, if requested by the Collateral Agent, (x) a policy or policies (or an unconditional binding commitment therefor to be replaced by a final title policy) of title insurance issued 

 

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by a nationally recognized title insurance company (each such policy, a “Title Policy”), in such amounts as reasonably acceptable to the Administrative Agent not to exceed the Fair Market Value of the applicable Mortgaged Property, insuring the Lien of each Mortgage as a valid first Lien on the Mortgaged Property  described therein, free of any other Liens except as expressly permitted by Section 10.2 or as otherwise permitted by the Administrative Agent and otherwise in form and substance reasonably acceptable to the Administrative Agent and the Borrower, together with such endorsements, coinsurance and reinsurance as the Administrative Agent may reasonably request but only to the extent such endorsements are (i) available in the relevant jurisdiction (provided in no event shall the Administrative Agent request a creditors’ rights endorsement) and (ii) available at commercially reasonable rates, (y) an opinion of local counsel to the applicable Credit Party in form and substance reasonably acceptable to the Administrative Agent, (z) a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination, and if any improvements on such Mortgaged Property are located in a special flood hazard area, (i) a notice about special flood hazard area status and flood disaster assistance duly executed by the applicable Credit Parties and (ii) certificates of insurance evidencing the insurance required by Section 9.3 (and, if requested by the Administrative Agent, copies of the relevant policies of insurance) in form and substance satisfactory to the Administrative Agent and (aa) an ALTA survey in a form and substance acceptable to the Collateral Agent or such existing survey together with a no-change affidavit sufficient for the title company to remove all standard survey exceptions from the Title Policy related to such Mortgaged Property and issue the endorsements required in (x) above.

 

(d)                                 Post-Closing Covenant.  Holdings agrees that it will, or will cause its relevant Subsidiaries to, complete each of the actions described on Schedule 9.14(d) as soon as commercially reasonable and by no later than the date set forth in Schedule 9.14(d) with respect to such action or such later date as the Administrative Agent may reasonably agree.

 

9.15                        Maintenance of Ratings. Holdings will use commercially reasonable efforts to obtain and maintain (but not maintain any specific rating) a corporate family and/or corporate credit rating, as applicable, in respect of Holdings, and ratings in respect of the Term Loans provided pursuant to this Agreement, in each case, from each of S&P and Moody’s.

 

9.16                        Lines of Business. Holdings and the Restricted Subsidiaries, taken as a whole, will not fundamentally and substantively alter the character of their business, taken as a whole, from the business conducted by Holdings and the Restricted Subsidiaries, taken as a whole, on the Closing Date and other business activities which are extensions thereof or otherwise incidental, reasonably related or ancillary to any of the foregoing (and non-core incidental businesses acquired in connection with any Permitted Acquisition or permitted Investment).

 

Section 10.                                    Negative Covenants.

 

Each of Holdings and the Borrower hereby covenants and agrees that on the Closing Date and thereafter, until the Commitments, the Swingline Commitment and each Letter of Credit have terminated or, in the case of Letters of Credit, been Cash Collateralized in accordance with the terms of this Agreement and the Loans and Unpaid Drawings, together with interest, Fees and all other Obligations incurred hereunder (other than contingent indemnity obligations as to which no valid demand has been made, Secured Hedge Obligations, Secured Cash Management Obligations and Letters of Credit that have been Cash Collateralized in accordance with the terms of this Agreement), are paid in full:

 

10.1                        Limitation on Indebtedness. Holdings will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise (collectively, “incur” and collectively, an “incurrence”),

 

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with respect to, any Indebtedness (including Acquired Indebtedness) and Holdings will not issue any shares of Disqualified Stock and will not permit any Restricted Subsidiary to issue any shares of Disqualified Stock or, in the case of Restricted Subsidiaries that are not Guarantors, preferred stock; provided that Holdings may incur unsecured Indebtedness (including unsecured Acquired Indebtedness) or issue shares of Disqualified Stock, and any Restricted Subsidiary may incur unsecured Indebtedness (including unsecured Acquired Indebtedness), issue shares of Disqualified Stock and issue shares of preferred stock, if, after giving Pro Forma Effect thereto (i) the Fixed Charge Coverage Ratio would be no less than 3.00:1.00 and (ii) the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than the Consolidated Total Debt to Consolidated EBITDA Ratio that is 0.25:1.00 lower than the maximum Consolidated Total Debt to Consolidated EBITDA Ratio permitted under Section 10.7; provided, further, that the amount of unsecured Indebtedness, Disqualified Stock and preferred stock that may be incurred pursuant to the foregoing together with any amounts incurred under Section 10.1(n)(x) by Restricted Subsidiaries that are not Guarantors shall not exceed the greater of (x) $85,000,000 and (y) 30% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at any one time outstanding.

 

The foregoing limitations will not apply to:

 

(a)                                 Indebtedness arising under the Credit Documents;

 

(b)                                 Indebtedness arising under the Senior Notes;

 

(c)                                  (i) Indebtedness (including any unused commitments) outstanding on the Closing Date listed on Schedule 10.1 and (ii) intercompany Indebtedness (including any unused commitments) outstanding on the Closing Date listed on Schedule 10.1 (other than intercompany Indebtedness owed by a Credit Party to another Credit Party);

 

(d)                                 Indebtedness (including Capitalized Lease Obligations), Disqualified Stock and preferred stock incurred by Holdings or any Restricted Subsidiary to finance the purchase, lease, construction, installation, maintenance, replacement or improvement of property (real or personal) or equipment that is used or useful in a Similar Business, whether through the direct purchase of assets or the Capital Stock of any Person owning such assets and Indebtedness arising from the conversion of the obligations of Holdings or any Restricted Subsidiary under or pursuant to any “synthetic lease” transactions to on-balance sheet Indebtedness of Holdings or such Restricted Subsidiary, in an aggregate principal amount or liquidation preference which, when aggregated with the principal amount of all other Indebtedness, Disqualified Stock and preferred stock then outstanding and incurred pursuant to this clause (d) and all Refinancing Indebtedness incurred to Refinance any other Indebtedness, Disqualified Stock and preferred stock incurred pursuant to this clause (d), does not exceed the greater of (x) $55,000,000 and (y) 20% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of incurrence; provided that Capitalized Lease Obligations incurred by Holdings or any Restricted Subsidiary pursuant to this clause (d) in connection with a Permitted Sale Leaseback shall not be subject to the foregoing limitation so long as the proceeds of such Permitted Sale Leaseback are used by Holdings or such Restricted Subsidiary to permanently repay outstanding Term Loans or other Indebtedness secured by a Lien on the assets subject to such Permitted Sale Leaseback (excluding any Lien ranking junior to the Lien securing the Obligations);

 

(e)                                  Indebtedness incurred by Holdings or any Restricted Subsidiary constituting reimbursement obligations with respect to letters of credit issued in the ordinary course of business, including letters of credit in respect of workers’ compensation claims, deferred compensation, performance or surety bonds, health, disability or other employee benefits or property, casualty or liability 

 

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insurance or self-insurance or other Indebtedness with respect to reimbursement or indemnification type obligations regarding workers’ compensation claims, performance or surety bonds, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance;

 

(f)                                   Indebtedness that is not yet overdue arising from agreements of Holdings or a Restricted Subsidiary providing for indemnification, adjustment of purchase price, earnout or similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets or a Subsidiary or other Person, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or a Subsidiary for the purpose of financing such acquisition;

 

(g)                                  unsecured Indebtedness of Holdings to a Restricted Subsidiary; provided that any such Indebtedness owing to a Restricted Subsidiary that is not the Borrower or a Guarantor is subordinated in right of payment to Holdings’ Guarantee; provided, further, that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such Indebtedness (except to the Borrower or another Restricted Subsidiary) shall be deemed, in each case to be an incurrence of such Indebtedness not permitted by this clause (g);

 

(h)                                 Indebtedness of the Borrower or a Restricted Subsidiary owing to Holdings or another Restricted Subsidiary or the Borrower; provided that (x) if the Borrower or another Guarantor incurs such Indebtedness owing to a Restricted Subsidiary that is not the Borrower or a Guarantor, such Indebtedness is unsecured and subordinated in right of payment to the Guarantee of such Guarantor or the Obligations of the Borrower, as the case may be, and (y) any Indebtedness of a Restricted Subsidiary that is not a Credit Party, owed to a Credit Party, shall be permitted as an Investment under Section 10.5; provided, further, that any subsequent transfer of any such Indebtedness (except to Holdings or another Restricted Subsidiary) shall be deemed, in each case to be an incurrence of such Indebtedness not permitted by this clause (h);

 

(i)                                     shares of preferred stock of a Restricted Subsidiary issued to Holdings or another Restricted Subsidiary; provided that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such shares of preferred stock (except to Holdings or another Restricted Subsidiary) shall be deemed in each case to be an issuance of such shares of preferred stock not permitted by this clause (i);

 

(j)                                    Hedging Obligations (excluding Hedging Obligations entered into for speculative purposes);

 

(k)                                 (i) obligations in respect of self-insurance, performance, bid, appeal and surety bonds and completion guarantees and similar obligations provided by Holdings or any Restricted Subsidiary or (ii) obligations in respect of letters of credit, bank guarantees or similar instruments related thereto, in each case, in the ordinary course of business or consistent with past practice;

 

(l)                                     (i) Indebtedness, Disqualified Stock and preferred stock of Holdings or any Restricted Subsidiary in an aggregate principal amount or liquidation preference (together with any Refinancing Indebtedness in respect thereof) in an amount not to exceed 100% of the net cash proceeds received by Holdings since immediately after the Closing Date from, without duplication, the issue or sale of Equity Interests of Holdings or cash contributed to the capital of Holdings (in each case, other than Excluded Contributions or proceeds of Disqualified Stock or sales of Equity Interests to Holdings or any of its Subsidiaries or any Cure Amounts) as determined in accordance with clauses (3)(B) and (3)(C) of

 

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Section 10.5(a) to the extent such net cash proceeds have not been applied pursuant to such clauses to make Restricted Payments or to make other Investments, payments or exchanges pursuant to Section 10.5(b) or to make Permitted Investments (other than Permitted Investments specified in clauses (a) and (c) of the definition thereof) and (ii) Indebtedness, Disqualified Stock or preferred stock of Holdings or any Restricted Subsidiary not otherwise permitted hereunder in an aggregate principal amount or liquidation preference, which when aggregated with the principal amount and liquidation preference of all other Indebtedness, Disqualified Stock and preferred stock then outstanding and incurred pursuant to this clause (l)(ii), does not at any one time outstanding exceed the greater of (x) $125,000,000 and (y) 50% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of incurrence;

 

(m)                             the incurrence or issuance by Holdings or any Restricted Subsidiary of Indebtedness, Disqualified Stock or preferred stock which serves to refinance, replace, refund, extend, renew, defease, restructure, amend, restate or otherwise modify (collectively, “Refinance”) any Indebtedness, Disqualified Stock or preferred stock incurred as permitted under the first paragraph of this Section 10.1 and clauses (b) and (c) above, clause (l)(i), this clause (m) or clause (n) below or any Indebtedness, Disqualified Stock or preferred stock issued to so Refinance such Indebtedness, Disqualified Stock or preferred stock (the “Refinancing Indebtedness”) prior to its respective maturity; provided that such Refinancing Indebtedness (1) has a weighted average life to maturity at the time such Refinancing Indebtedness is incurred which is not less than the remaining weighted average life to maturity of the Indebtedness, Disqualified Stock or preferred stock being Refinanced, (2) to the extent such Refinancing Indebtedness Refinances (i) Indebtedness that is unsecured or secured by a Lien ranking junior to the Liens securing the Obligations, such Refinancing Indebtedness is unsecured or secured by a Lien ranking junior to the Liens securing the Obligations, respectively (and, if secured by a Lien ranking junior to the Lien securing the Obligations, shall be subject to the Second Lien Intercreditor Agreement), (ii) Disqualified Stock or preferred stock, such Refinancing Indebtedness must be Disqualified Stock or preferred stock, respectively and (iii) Indebtedness subordinated to the Obligations, such Refinancing Indebtedness is subordinated to the Obligations at least to the same extent as the Indebtedness being Refinanced, (3) shall not include Indebtedness, Disqualified Stock or preferred stock of a Subsidiary of Holdings that is not the Borrower or a Guarantor that Refinances Indebtedness, Disqualified Stock or preferred stock of the Borrower or a Guarantor, (4) shall not exceed the principal amount of such Indebtedness being Refinanced plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses and accrued and unpaid interest incurred in connection with such Refinancing and (5) has a maturity no earlier than the maturity date of the Indebtedness, Disqualified Stock or preferred stock being Refinanced;

 

(n)                                 Indebtedness, Disqualified Stock or preferred stock of (x) Holdings or a Restricted Subsidiary incurred or issued to finance an acquisition; provided that the amount of Indebtedness, Disqualified Stock and preferred stock that may be incurred pursuant to the foregoing, together with any amounts incurred under the first paragraph of this Section 10.1 by Restricted Subsidiaries that are not Guarantors, shall not exceed, when taken together with any amounts incurred under the first paragraph of this Section 10.1 by Restricted Subsidiaries that are not Guarantors, the greater of $85,000,000 and 30% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at any one time outstanding or (y) Persons that are acquired by Holdings or any Restricted Subsidiary or merged into or consolidated with Holdings or a Restricted Subsidiary in accordance with the terms hereof (including designating an Unrestricted Subsidiary a Restricted Subsidiary); provided that after giving effect to any such acquisition or merger described in this clause (n), either:  (1) Holdings would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio and Consolidated Total Debt to Consolidated EBITDA Ratio test set forth in the first paragraph of this Section 10.1 or (2) the Fixed Charge Coverage Ratio of Holdings and the Restricted Subsidiaries is equal

 

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to or greater than immediately prior to such acquisition, merger or consolidation, and the Consolidated Total Debt to Consolidated EBITDA Ratio of Holdings and the Restricted Subsidiaries is equal to or less than immediately prior to such acquisition, merger or consolidation;

 

(o)                                 Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business;

 

(p)                                 (i) Indebtedness of Holdings or any Restricted Subsidiary supported by a letter of credit, in a principal amount not in excess of the stated amount of such letter of credit, so long as such letter of credit is otherwise permitted to be incurred pursuant to this Section 10.1  or (ii) obligations in respect of letters of support, guarantees or similar obligations issued, made or incurred for the benefit of any Restricted Subsidiary of Holdings to the extent required by law or in connection with any statutory filing or the delivery of audit opinions performed in jurisdictions other than within the United States;

 

(q)                                 (1) any guarantee by Holdings or a Restricted Subsidiary of permitted Indebtedness or other obligations of any Restricted Subsidiary so long as in the case of a guarantee of Indebtedness of a Restricted Subsidiary that is not a Guarantor, such Indebtedness could have been incurred directly by the Restricted Subsidiary providing such guarantee or (2) any guarantee by a Restricted Subsidiary of permitted Indebtedness of the Borrower;

 

(r)                                    Indebtedness of Restricted Subsidiaries that are not Guarantors in the aggregate at any one time outstanding, together with all dispositions not constituting Asset Sales pursuant to clause (e)(2) of the definition thereof and all amounts constituting Permitted Investments pursuant to clause (b) of the definition thereof, not to exceed the greater of (x) $55,000,000 and (y) 20% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis);

 

(s)                                   Indebtedness of Holdings or any of the Restricted Subsidiaries consisting of (i) the financing of insurance premiums or (ii) take or pay obligations contained in supply arrangements in each case, incurred in the ordinary course of business or consistent with past practice;

 

(t)                                    (i) Indebtedness of Holdings or any of the Restricted Subsidiaries undertaken in connection with cash management and related activities with respect to any Subsidiary or joint venture in the ordinary course of business, including with respect to financial accommodations of the type described in the definition of Cash Management Services and (ii) Indebtedness owed on a short term basis of no longer than 30 days to banks and other financial institutions incurred in the ordinary course of business of the Borrower and its Restricted Subsidiaries with such banks or financial institutions that arises in connection with ordinary banking arrangements to manage cash balances of the Borrower and its Restricted Subsidiaries;

 

(u)                                 Indebtedness issued by Holdings or any of the Restricted Subsidiaries to future, current or former officers, directors, managers and employees thereof or their respective estates, spouses or former spouses, in each case to finance the purchase or redemption of Equity Interests of Holdings or any direct or indirect parent company of Holdings to the extent described in clause (4) of Section 10.5(b);

 

(v)                                 Indebtedness in respect of (i) Permitted Other Indebtedness to the extent that the Net Cash Proceeds therefrom are applied to the prepayment of Term Loans in the manner set forth in Section 5.2(a)(i) and (ii) any refinancing, refunding, renewal or extension of any Indebtedness specified in subclause (i) above; provided that (x) the principal amount of any such Indebtedness is not increased above the principal amount thereof outstanding immediately prior to such refinancing, refunding, renewal or extension (except for any original issue discount thereon and the amount of fees, expenses and 

 

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premium and accrued and unpaid interest in connection with such refinancing) and (y) such Indebtedness otherwise complies with the definition of “Permitted Other Indebtedness”;

 

(w)                               Indebtedness in respect of (i) Permitted Other Indebtedness; provided that the aggregate principal amount of all such Permitted Other Indebtedness issued or incurred pursuant to this subclause (i) shall not exceed the Maximum Incremental Facilities Amount and (ii) any Refinancing of any Indebtedness specified in subclause (i) above; provided that (x) the principal amount of any such Indebtedness is not increased above the principal amount thereof outstanding immediately prior to such refinancing, refunding, renewal or extension (except for any original issue discount thereon and the amount of fees, expenses and premium and accrued and unpaid interest in connection with such refinancing) and (y) such Indebtedness otherwise complies with the definition of “Permitted Other Indebtedness”;

 

(x)                                 (i) Indebtedness in respect of Permitted Debt Exchange Notes incurred pursuant to a Permitted Debt Exchange in accordance with Section 2.15 (and which does not generate any additional proceeds) and (ii) any refinancing, refunding, renewal or extension of any Indebtedness specified in subclause (i) above; provided that (x) the principal amount of any such Indebtedness is not increased above the principal amount thereof outstanding immediately prior to such refinancing, refunding, renewal or extension (except for any original issue discount thereon and the amount of fees, expenses and premium and accrued and unpaid interest in connection with such refinancing) and (y) such Indebtedness otherwise complies with the definition of “Permitted Other Indebtedness”; and

 

(y)                                 Indebtedness under or in respect of Receivables Facilities.

 

For purposes of determining compliance with this Section 10.1: (i) in the event that an item of Indebtedness, Disqualified Stock or preferred stock (or any portion thereof) (other than such items described in clauses (a), (b), (g), (h) and (j), which shall only be permitted to be incurred under the clause in which so described) meets the criteria of more than one of the categories of permitted Indebtedness, Disqualified Stock or preferred stock described in clauses (a) through (x) above or is entitled to be incurred pursuant to the first paragraph of this Section 10.1, Holdings, in its sole discretion, will classify (including within the definition of Maximum Incremental Facilities Amount) such item of Indebtedness, Disqualified Stock or preferred stock (or any portion thereof) and will only be required to include the amount and type of such Indebtedness, Disqualified Stock or preferred stock in one of the above clauses or paragraphs; and (ii) at the time of incurrence, Holdings will be entitled to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described in this Section 10.1.

 

Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest or dividends in the form of additional Indebtedness, Disqualified Stock or preferred stock will not be deemed to be an incurrence of Indebtedness, Disqualified Stock or preferred stock for purposes of this covenant.  Any Refinancing Indebtedness and any Indebtedness incurred to refinance Indebtedness incurred pursuant to clauses (a) and (l)(i) above shall be deemed to include additional Indebtedness, Disqualified Stock or preferred stock incurred to pay premiums (including reasonable tender premiums), defeasance costs, fees and expenses in connection with such refinancing.

 

For purposes of determining compliance with any Dollar-denominated restriction on the incurrence of Indebtedness, the principal amount of Indebtedness denominated in another currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term debt, or first committed, in the case of revolving credit debt; provided that if such Indebtedness is incurred to refinance other Indebtedness denominated in another currency, and such

 

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refinancing would cause the applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed (i) the principal amount of such Indebtedness being refinanced plus (ii) the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses and accrued and unpaid interest incurred in connection with such refinancing.

 

The principal amount of any Indebtedness incurred to Refinance other Indebtedness, if incurred in a different currency from the Indebtedness being Refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing.

 

Except as otherwise expressly set forth herein, this Agreement will not treat (1) unsecured Indebtedness as subordinated or junior to secured Indebtedness merely because it is unsecured or (2) senior Indebtedness as subordinated or junior to any other senior Indebtedness merely because it has a junior priority with respect to the same collateral.

 

10.2                        Limitation on Liens

 

(a)                                 Holdings will not, and will not permit any of the Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien (each, a “Subject Lien”) upon any property or assets of any kind (real or personal, tangible or intangible) of Holdings or any Restricted Subsidiary, whether now owned or hereafter acquired (except Permitted Liens) that secures obligations under any Indebtedness on any asset or property of Holdings or any Restricted Subsidiary, except:

 

(i)                                     if such Subject Lien is a Permitted Lien;

 

(ii)                                  in the case of any Subject Lien on assets or property not constituting Collateral, any Subject Lien if the Obligations are equally and ratably secured with (or on a senior basis to, in the case such Subject Lien secures any Junior Debt) the obligations secured by such Subject Lien.

 

(b)                                 Any Lien created for the benefit of the Secured Parties pursuant to the preceding paragraph shall provide by its terms that such Lien shall automatically and unconditionally be released and discharged upon the release and discharge of the Subject Lien that gave rise to the obligation to so secure the Obligations.

 

10.3                        Limitation on Fundamental Changes.  Holdings will not, and will not permit any of the Restricted Subsidiaries to, enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially all its business units, assets or other properties, except that:

 

(a)                                 so long as no Event of Default has occurred and is continuing or would result therefrom, any Subsidiary of Holdings or any other Person may be merged, amalgamated or consolidated with or into Holdings or the Borrower; provided that, (A) Holdings or the Borrower shall be the continuing or surviving corporation or (B) if the Person formed by or surviving any such merger, amalgamation or consolidation is not Holdings or the Borrower (such other Person, the “Successor Borrower”), (1) the Successor Borrower shall be an entity organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof, (2) the Successor Borrower shall expressly assume all the obligations of Holdings or the Borrower under this Agreement and the other Credit 

 

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Documents pursuant to a supplement hereto or thereto in form reasonably satisfactory to the Administrative Agent, (3) each Guarantor, unless it is the other party to such merger or consolidation, shall have by a supplement to the Guarantee confirmed that its guarantee thereunder shall apply to any Successor Borrower’s obligations under this Agreement, (4) each Credit Party grantor and each Credit Party pledgor, unless it is the other party to such merger or consolidation, shall have by a supplement to any applicable Security Document affirmed that its obligations thereunder shall apply to its Obligations or its Guarantee as reaffirmed pursuant to clause (3), as applicable, (5) each mortgagor of a Mortgaged Property, unless it is the other party to such merger or consolidation, shall have affirmed that its obligations under the applicable Mortgage shall apply to its Obligations or its Guarantee as reaffirmed pursuant to clause (3), as applicable, and (6) the Successor Borrower shall have delivered to the Administrative Agent (x) an officer’s certificate stating that such merger or consolidation and such supplements preserve the enforceability of the Guarantee and the perfection and priority of the Liens under the applicable Security Documents and (y) if requested by the Administrative Agent, an opinion of counsel to the effect that such merger or consolidation does not violate this Agreement or any other  Credit Document and that the provisions set forth in the preceding clauses (3) through (5) preserve the enforceability of the Guarantee and the perfection of the Liens created under the applicable Security Documents (it being understood that if the foregoing are satisfied, the Successor Borrower will succeed to, and be substituted for, the Borrower under this Agreement);

 

(b)                                 so long as no Event of Default has occurred and is continuing or would result therefrom, any Subsidiary of Holdings or any other Person (in each case, other than the Borrower) may be merged, amalgamated or consolidated with or into any one or more Subsidiaries of Holdings (in each case, other than the Borrower); provided that (i) in the case of any merger, amalgamation or consolidation involving one or more Restricted Subsidiaries, (A) a Restricted Subsidiary shall be the continuing or surviving Person or (B) Holdings shall cause the Person formed by or surviving any such merger, amalgamation or consolidation (if other than a Restricted Subsidiary) to become a Restricted Subsidiary, (ii) in the case of any merger, amalgamation or consolidation involving one or more Guarantors, a Guarantor shall be the continuing or surviving Person or the Person formed by or surviving any such merger, amalgamation or consolidation and if the surviving Person is not already a Guarantor, such Person shall execute a supplement to the Guarantee and the relevant Security Documents in form and substance reasonably satisfactory to the Administrative Agent in order to become a Guarantor and pledgor, mortgagor and grantor, as applicable, thereunder for the benefit of the Secured Parties and (iii) Holdings shall have delivered to the Administrative Agent an officer’s certificate stating that such merger, amalgamation or consolidation and any such supplements to any Guarantee or Security Document preserve the enforceability of the Guarantees and the perfection and priority of the Liens under the applicable Security Documents;

 

(c)                                  (i) any Restricted Subsidiary that is not a Credit Party may convey, sell, lease, assign, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or dissolution or otherwise) to Holdings or any other Restricted Subsidiary or (ii) any Credit Party (other than the Borrower) may convey, sell, lease, assign, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or dissolution or otherwise) to any other Credit Party;

 

(d)                                 any Subsidiary (other than the Borrower) may convey, sell, lease, assign, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or dissolution or otherwise) to a Credit Party; provided that the consideration for any such disposition by any Person other than a Guarantor shall not exceed the Fair Market Value of such assets;

 

(e)                                  any Restricted Subsidiary (other than the Borrower) may liquidate or dissolve if Holdings determines in good faith that such liquidation or dissolution is in the best interests of Holdings and the 

 

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Borrower and is not materially disadvantageous to the Lenders; and

 

(f)                                   Holdings and the Restricted Subsidiaries may consummate a merger, dissolution, liquidation, consolidation, investment or conveyance, sale, lease, assignment or Disposition, the purpose of which is to effect an Asset Sale (which for purposes of this Section 10.3(f), will include any Disposition below the dollar threshold set forth in clause (d) of the definition of Asset Sale but will exclude any Disposition pursuant to clause (b) of the definition of Asset Sale) permitted by Section 10.4 or an Investment permitted pursuant to Section 10.5 or an Investment that constitutes a “Permitted Investment”.

 

10.4                        Limitation on Sale of Assets. Holdings will not, and will not permit any Restricted Subsidiary to, consummate, directly or indirectly, an Asset Sale, unless:

 

(a)                                 Holdings or such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the Fair Market Value (as determined at the time of contractually agreeing to such Asset Sale) of the assets sold or otherwise disposed of; and

 

(b)                                 except in the case of a Permitted Asset Swap, if the property or assets sold or otherwise disposed of have a Fair Market Value in excess of the greater of (a) $30,000,000 and (b) 1% of Consolidated Total Assets for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such disposition, at least 75% of the consideration therefor received by Holdings or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash Equivalents; provided that the amount of:

 

(i)                                     any liabilities (as reflected on Holdings’ most recent consolidated balance sheet or in the footnotes thereto, or if incurred or accrued subsequent to the date of such balance sheet, such liabilities that would have been reflected on Holdings’ consolidated balance sheet or in the footnotes thereto if such incurrence or accrual had taken place on or prior to the date of such consolidated balance sheet, as determined in good faith by Holdings) of Holdings, other than liabilities that are by their terms subordinated to the Loans, that are assumed by the transferee of any such assets (or are otherwise extinguished in connection with the transactions relating to such Asset Sale) and for which Holdings and all Restricted Subsidiaries have been validly released by all applicable creditors in writing;

 

(ii)                                  any securities, notes or other obligations or assets received by Holdings or such Restricted Subsidiary from such transferee that are converted by Holdings or such Restricted Subsidiary into cash or Cash Equivalents, or by their terms are required to be satisfied for cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received), in each case, within 180 days following the closing of such Asset Sale;

 

(iii)                               Indebtedness, other than liabilities that are by their terms subordinated to the Loans, of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset Sale, to the extent that Holdings and all Restricted Subsidiaries have been validly released from any Guarantee of payment of such Indebtedness in connection with such Asset Sale; and

 

(iv)                              any Designated Non-Cash Consideration received by Holdings or such Restricted Subsidiary in such Asset Sale having an aggregate Fair Market Value, taken together with all other Designated Non-Cash Consideration received pursuant to this clause (iv) that is at that time outstanding, not to exceed the greater of $150,000,000 or 6% of Consolidated Total Assets at the time of the receipt of such Designated Non-Cash Consideration, with the Fair Market Value of

 

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each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value,

 

shall be deemed to be cash for purposes of this clause (b) of this provision and for no other purpose.

 

Within the Reinvestment Period after Holdings’ or any Restricted Subsidiary’s receipt of the Net Cash Proceeds of any Asset Sale, Holdings or such Restricted Subsidiary shall apply the Net Cash Proceeds from such Asset Sale:

 

(i) to prepay Loans or Permitted Other Indebtedness in accordance with Section 5.2(a)(i); and/or

 

(ii) to make investments in the Borrower and its Restricted Subsidiaries; provided that Holdings and its Restricted Subsidiaries will be deemed to have complied with this clause (ii) if and to the extent that, within the Reinvestment Period after the Asset Sale that generated the Net Cash Proceeds, Holdings or such Restricted Subsidiary has entered into and not abandoned or rejected a binding agreement to consummate any such investment with the good faith expectation that such Net Cash Proceeds will be applied to satisfy such commitment within 180 days of such commitment and, in the event any such commitment is later cancelled or terminated for any reason before the Net Cash Proceeds are applied in connection therewith, Holdings or such Restricted Subsidiary prepays the Loans in accordance with Section 5.2(a)(i).

 

(c)                                  Pending the final application of any Net Cash Proceeds pursuant to this covenant, Holdings or the applicable Restricted Subsidiary may apply such Net Cash Proceeds temporarily to reduce Indebtedness outstanding under the Revolving Credit Facility or any other revolving credit facility or otherwise invest such Net Cash Proceeds in any manner not prohibited by this Agreement.

 

10.5                        Limitation on Restricted Payments

 

(a)                                 Holdings will not, and will not permit any Restricted Subsidiary to, directly or indirectly:

 

(i)                                     declare or pay any dividend or make any payment or distribution on account of Holdings’ or any Restricted Subsidiary’s Equity Interests, including any dividend or distribution payable in connection with any merger or consolidation, other than:

 

(A)                               dividends or distributions by Holdings payable in Equity Interests (other than Disqualified Stock) of Holdings or in options, warrants or other rights to purchase such Equity Interests, or

 

(B)                               dividends or distributions by a Restricted Subsidiary so long as, in the case of any dividend or distribution payable on or in respect of any class or series of securities issued by a Subsidiary other than a Wholly-Owned Subsidiary, Holdings or a Restricted Subsidiary receives at least its pro rata share of such dividend or distribution in accordance with its Equity Interests in such class or series of securities;

 

(ii)                                  purchase, redeem, defease or otherwise acquire or retire for value any Equity Interests of Holdings or any direct or indirect parent company of Holdings, including in connection with any merger or consolidation;

 

(iii)                               make any principal payment on, or redeem, repurchase, defease or otherwise 

 

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acquire or retire for value, in each case, prior to any scheduled repayment, sinking fund payment or maturity, any Junior Debt of Holdings or any Restricted Subsidiary, other than (A) Indebtedness permitted under Sections 10.1(g) and 10.1(h) or (B) the purchase, repurchase or other acquisition of Junior Debt purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of purchase, repurchase or acquisition; or

 

(iv)                              make any Restricted Investment;

 

(all such payments and other actions set forth in clauses (1) through (4) above (other than any exception thereto) being collectively referred to as “Restricted Payments”), unless, at the time of such Restricted Payment:

 

(1)                                 no Event of Default shall have occurred and be continuing or would occur as a consequence thereof (or in the case of a Restricted Investment, no Event of Default under Section 11.1(a) or 11.1(e) shall have occurred and be continuing or would occur as a consequence thereof);

 

(2)                                 except in the case of a Restricted Investment, immediately after giving Pro Forma Effect to such transaction, the Consolidated Total Debt to Consolidated EBITDA Ratio of Holdings and the Restricted Subsidiaries would be no greater than 4.00 to 1.00; and

 

(3)                                 such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by Holdings and the Restricted Subsidiaries after the Closing Date (including Restricted Payments permitted by clauses (1), (2) (with respect to the payment of dividends on Refunding Capital Stock pursuant to clause (b) thereof only) and (6)(C) of Section 10.5(b) below, but excluding all other Restricted Payments permitted by Section 10.5(b)), is less than the sum of (without duplication) (the sum of the amounts attributable to clauses (A) through (G) below is referred to herein as the “Available Amount”):

 

(A)                               50% of the Consolidated Net Income of Holdings for the period (taken as one accounting period) from the first day of the fiscal quarter during which the Closing Date occurs to the end of Holdings’ most recently ended fiscal quarter for which Section 9.1 Financials have been delivered at the time of such Restricted Payment, or, in the case such Consolidated Net Income for such period is a deficit, minus 100% of such deficit, plus

 

(B)                               100% of the aggregate net cash proceeds and the Fair Market Value of marketable securities or other property received by Holdings (and contributed to the Borrower) since immediately after the Closing Date (other than net cash proceeds from Cure Amounts or to the extent such net cash proceeds have been used to incur Indebtedness, Disqualified Stock or preferred stock pursuant to Section 10.1(l)(i)) from the issue or sale of (x) Equity Interests of Holdings, including Retired Capital Stock, but excluding cash proceeds and the Fair Market Value of marketable securities or other property received from the sale of (A) Equity Interests to any employee, director, manager or consultant of Holdings, any direct or indirect parent company of Holdings and Holdings’ Subsidiaries after the Closing Date to the extent such amounts have been applied to Restricted Payments made in accordance with clause (4) of Section 10.5(b) below and (B) Designated Preferred Stock, and, to the extent such net cash proceeds are actually contributed to the Borrower, Equity Interests of any direct or indirect parent company of Holdings (excluding contributions of the proceeds from the sale of Designated Preferred Stock of such companies or contributions to the extent such amounts have been applied

 

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to Restricted Payments made in accordance with clause (4) of Section 10.5(b) below) or (y) Indebtedness of Holdings or a Restricted Subsidiary that has been converted into or exchanged for such Equity Interests (other than Disqualified Stock) of Holdings or any direct or indirect parent company of Holdings; provided that this clause (B) shall not include the proceeds from (a) Refunding Capital Stock, (b) Equity Interests or Indebtedness that has been converted or exchanged for Equity Interests of Holdings sold to a Restricted Subsidiary or Holdings, as the case may be, (c) Disqualified Stock or Indebtedness that has been converted or exchanged into Disqualified Stock or (d) Excluded Contributions, plus

 

(C)                               100% of the aggregate amount of cash and the Fair Market Value of marketable securities or other property contributed to the capital of Holdings (and further contributed by Holdings to the Borrower) following the Closing Date (other than net cash proceeds from Cure Amounts or to the extent such net cash proceeds (i) have been used to incur Indebtedness, Disqualified Stock or preferred stock pursuant to Section 10.1(l)(i), (ii) are contributed by a Restricted Subsidiary or (iii) constitute Excluded Contributions), plus

 

(D)                               100% of the aggregate amount received in cash and the Fair Market Value of marketable securities or other property received by means of (A) the sale or other disposition (other than to Holdings or a Restricted Subsidiary) of Restricted Investments made by Holdings and the Restricted Subsidiaries and repurchases and redemptions of such Restricted Investments from Holdings and the Restricted Subsidiaries and repayments of loans or advances, and releases of guarantees, which constitute Restricted Investments made by Holdings or its Restricted Subsidiaries, in each case, after the Closing Date; or (B) the sale (other than to Holdings or a Restricted Subsidiary) of the stock of an Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary, or a dividend from an Unrestricted Subsidiary after the Closing Date, in the case of each of clauses (A) and (B), to the extent the Investment or Restricted Payment in respect of the items described therein were made using the Available Amount Basket, plus

 

(E)                                in the case of the redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary after the Closing Date, the Fair Market Value of the Investment in such Unrestricted Subsidiary at the time of the redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary, to the extent the Investment in such Unrestricted Subsidiary was made using the Available Amount Basket, plus

 

(F)                                 the aggregate amount of any Retained Declined Proceeds since the Closing Date, plus

 

(G)                               $75,000,000.

 

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(b)                                 The foregoing provisions of Section 10.5(a) will not prohibit:

 

(i)                                     the payment of any dividend or distribution or the consummation of any irrevocable redemption within 60 days after the date of declaration thereof or the giving of such irrevocable notice, as applicable, if at the date of declaration or the giving of such notice such payment would have complied with the provisions of this Agreement;

 

(ii)                                  (a) the redemption, repurchase, retirement or other acquisition of any Equity Interests (“Retired Capital Stock”) or Junior Debt of Holdings or any Restricted Subsidiary, or any Equity Interests of any direct or indirect parent company of Holdings, in exchange for, or out of the proceeds of the substantially concurrent sale (other than to a Restricted Subsidiary) of, Equity Interests of Holdings or any direct or indirect Parent Entity or management investment vehicle to the extent contributed to Holdings (in each case, other than any Disqualified Stock) (“Refunding Capital Stock”) and (b) if immediately prior to the retirement of Retired Capital Stock, the declaration and payment of dividends thereon was permitted under clause (vi) of this Section 10.5(b), the declaration and payment of dividends on the Refunding Capital Stock (other than Refunding Capital Stock the proceeds of which were used to redeem, repurchase, retire or otherwise acquire any Equity Interests of any direct or indirect parent company of Holdings) in an aggregate amount no greater than the aggregate amount of dividends that was declarable and payable on such Retired Capital Stock immediately prior to such retirement;

 

(iii)                               the prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value of Junior Debt of Holdings or a Restricted Subsidiary made by exchange for, or out of the proceeds of the substantially concurrent sale of, new Indebtedness of Holdings or a Restricted Subsidiary, as the case may be, which is incurred in compliance with Section 10.1 so long as:  (A) the principal amount (or accreted value, if applicable) of such new Indebtedness does not exceed the principal amount of (or accreted value, if applicable), plus any accrued and unpaid interest on the Junior Debt being so redeemed, defeased, repurchased, exchanged, acquired or retired for value, plus the amount of any premium (including reasonable tender premiums), defeasance costs and any reasonable fees and expenses incurred in connection with the issuance of such new Indebtedness, (B) if such Junior Debt is subordinated to the Obligations, such new Indebtedness is subordinated to the Obligations or the applicable Guarantee at least to the same extent as such Junior Debt so purchased, exchanged, redeemed, defeased, repurchased, acquired or retired for value, (C) such new Indebtedness has a final scheduled maturity date equal to or later than the final scheduled maturity date of the Junior Debt being so redeemed, defeased, repurchased, exchanged, acquired or retired, (D) if such Junior Debt so purchased, exchanged, redeemed, repurchased, acquired or retired for value is (i) unsecured then such new Indebtedness shall be unsecured or (ii)  secured by a Lien ranking junior to the Liens securing the Obligations then such new Indebtedness shall be unsecured or secured by a Lien ranking junior to the Liens securing the Obligations and (E) such new Indebtedness has a weighted average life to maturity equal to or greater than the remaining weighted average life to maturity of the Junior Debt being so redeemed, defeased, repurchased, exchanged, acquired or retired;

 

(iv)                              a Restricted Payment to pay for the repurchase, retirement or other acquisition or retirement for value of Equity Interests (other than Disqualified Stock) of Holdings or any direct or indirect Parent Entity or management investment vehicle of Holdings held by any future, present or former employee, director, manager or consultant of Holdings, any of its Subsidiaries or any direct or indirect Parent Entity or management investment vehicle of Holdings, or their estates, descendants, family, spouse or former spouse pursuant to any management equity plan or stock option or phantom equity plan or any other management or employee benefit plan or

 

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agreement, or any stock subscription or shareholder agreement (including, for the avoidance of doubt, any principal and interest payable on any notes issued by Holdings or any direct or indirect Parent Entity or management investment vehicle of Holdings in connection with such repurchase, retirement or other acquisition), including any Equity Interests rolled over by management of Holdings or any direct or indirect Parent Entity or management investment vehicle of Holdings in connection with the Transactions; provided that, except with respect to non-discretionary purchases, the aggregate Restricted Payments made under this clause (iv) do not exceed in any calendar year $20,000,000 (with unused amounts in any calendar year being carried over to the immediately succeeding calendar year subject to maximum aggregate Restricted Payments under this clause (without giving effect to the following proviso) of $40,000,0000 in any calendar year); provided, further, that such amount in any calendar year may be increased by an amount not to exceed:  (A) the cash proceeds from the sale of Equity Interests (other than Disqualified Stock) of Holdings and, to the extent contributed to Holdings, the cash proceeds from the sale of Equity Interests of any direct or indirect Parent Entity or management investment vehicle of Holdings, in each case to any future, present or former employees, directors, managers or consultants of Holdings, any of its Subsidiaries or any direct or indirect Parent Entity or management investment vehicle of Holdings that occurs after the Closing Date, to the extent the cash proceeds from the sale of such Equity Interests have not otherwise been applied to make Restricted Payments by virtue of clause (3) of Section 10.5(a) , plus (B) the cash proceeds of key man life insurance policies received  by Holdings and the Restricted Subsidiaries after the Closing Date, less (C) the amount of any Restricted Payments previously made pursuant to clauses (A) and (B) of this clause (iv); and provided, further, that cancellation of Indebtedness owing to Holdings or any Restricted Subsidiary from any future, present or former employees, directors, managers or consultants of Holdings, any direct or indirect Parent Entity or management investment vehicle of Holdings or any Restricted Subsidiary, or their estates, descendants, family, spouse or former spouse in connection with a repurchase of Equity Interests of Holdings or any direct or indirect Parent Entity or management investment vehicle of Holdings will not be deemed to constitute a Restricted Payment for purposes of this Section 10.5 or any other provision of this Agreement;

 

(v)                                 the declaration and payment of dividends to holders of any class or series of Disqualified Stock of Holdings or any Restricted Subsidiary or any class or series of preferred stock of any Restricted Subsidiary, in each case, issued in accordance with Section 10.1 to the extent such dividends are included in the definition of Fixed Charges;

 

(vi)                              Investments in Unrestricted Subsidiaries having an aggregate Fair Market Value, taken together with all other Investments made pursuant to this clause (vi) that are at the time outstanding, without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of cash, Cash Equivalents or marketable securities, not to exceed the greater of (x) $45,000,000 and (y) 15% of Consolidated EBITDA for the most recently ended Test Period (calculated on a Pro Forma Basis) at the time of such Investment (with the Fair Market Value of each Investment being measured at the time made and without giving effect to subsequent changes in value);

 

(vii)                           (i) payments made or expected to be made by Holdings or any Restricted Subsidiary in respect of withholding or similar taxes payable upon exercise of Equity Interests by any future, present or former employee, director, manager or consultant and repurchases of Equity Interests deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such options or warrants and (ii) payments or other adjustments to outstanding Equity Interests in accordance with any management equity plan, stock option plan or any other similar employee benefit plan, agreement or arrangement in 

 

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connection with any Restricted Payment;

 

(viii)                        the declaration and payment of dividends on Holdings’ common stock (or the payment of dividends to any direct or indirect parent company of Holdings to fund a payment of dividends on such company’s common stock) in an aggregate amount not to exceed $25,000,000 per annum;

 

(ix)                              Restricted Payments in an amount that does not exceed the amount of Excluded Contributions made since the Closing Date;

 

(x)                                 other Restricted Payments in an aggregate amount taken together with all other Restricted Payments made pursuant to this clause (x) not to exceed $75,000,000;

 

(xi)                              distributions or payments of Receivables Fees;

 

(xii)                           any Restricted Payment used to fund amounts owed to Affiliates (including dividends to any direct or indirect parent company of Holdings to permit payment by such parent of such amount) to the extent permitted by Section 9.9 (other than clause (b) thereof);

 

(xiii)                        other Restricted Payments; provided that after giving Pro Forma Effect to such Restricted Payments the Consolidated Total Debt to Consolidated EBITDA Ratio is no greater than 3.25:1.00;

 

(xiv)                       the declaration and payment of dividends by Holdings to, or the making of loans to, any direct or indirect parent company of Holdings in amounts required for any direct or indirect parent company to pay (without duplication):  (A) franchise and excise taxes and other similar fees and expenses, required to maintain its organizational existence, (B) consolidated, combined or similar foreign, U.S. federal, state and local income taxes or other taxes on or measured by net income (however denominated), to the extent that such taxes are attributable to the income of Holdings and the Restricted Subsidiaries and, to the extent of the amount actually received from its Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent attributable to the income of such Unrestricted Subsidiaries; provided that in each case the amount of such payments with respect to any fiscal year does not exceed the amount that Holdings, the Restricted Subsidiaries and the Unrestricted Subsidiaries (to the extent described above) would have been required to pay in respect of such foreign, U.S. federal, state and local income taxes for such fiscal year had Holdings, the Restricted Subsidiaries and the Unrestricted Subsidiaries (to the extent described above) been a stand-alone taxpayer or stand-alone group (separate from any such direct or indirect parent company of Holdings) for all fiscal years ending after the Closing Date, (C) customary salary, bonus and other benefits payable to officers, employees, directors and managers of any direct or indirect parent company of Holdings to the extent such salaries, bonuses and other benefits are attributable to the ownership or operation of Holdings and its Restricted Subsidiaries, including Holdings’ proportionate share of such amount relating to such parent company being a public company, (D) general corporate or other operating (including, without limitation, expenses related to auditing or other accounting matters) and overhead costs and expenses of any direct or indirect parent company of Holdings to the extent such costs and expenses are attributable to the ownership or operation of Holdings and its Restricted Subsidiaries, including Holdings’ proportionate share of such amount relating to such parent company being a public company, (E) amounts required for any direct or indirect parent company of Holdings to pay fees and expenses incurred by any direct or indirect parent company of Holdings related to (i) the maintenance by such parent entity of its corporate or other entity

 

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existence and (ii) Investments (but solely to the extent such Investment is contributed to Holdings) or the incurrence of Indebtedness or issuance of Equity Interests (but solely to the extent the net proceeds thereof are contributed to Holdings) and (F) cash payments in lieu of issuing fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Equity Interests of Holdings or any such direct or indirect parent company of Holdings;

 

(xv)                          the repurchase, redemption or other acquisition for value of Equity Interests of Holdings deemed to occur in connection with paying cash in lieu of fractional shares of such Equity Interests in connection with a share dividend, distribution, share split, reverse share split, merger, consolidation, amalgamation or other business combination of Holdings, in each case, permitted under this Agreement;

 

(xvi)                       the distribution, by dividend or otherwise, of shares of Capital Stock of, or Indebtedness owed to Holdings or a Restricted Subsidiary by, Unrestricted Subsidiaries (other than Unrestricted Subsidiaries the primary assets of which are cash and/or Cash Equivalents);

 

(xvii)                    the prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value of Senior Notes in an aggregate amount pursuant to this clause (xvii) not to exceed $91,441,000; provided that, for the most recently ended Test Period immediately preceding the date of such prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value, after giving Pro Forma Effect to such prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value, the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than the Consolidated Total Debt to Consolidated EBITDA Ratio that is 0.25:1.00 lower than the maximum Consolidated Total Debt to Consolidated EBITDA Ratio permitted under Section 10.7;

 

(xviii)                 the prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value of Junior Debt if, for the most recently ended Test Period immediately preceding the date of such prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value, after giving Pro Forma Effect to such prepayment, redemption, defeasance, repurchase or other acquisition or retirement for value, the Consolidated Total Debt to Consolidated EBITDA Ratio would be no greater than 3.75:1.00; and

 

(xix)                       payments or distributions to satisfy dissenters’ rights, pursuant to or in connection with a consolidation, amalgamation, merger or transfer of assets that complies with Section 10.3;

 

provided that at the time of, and after giving effect to, any Restricted Payment permitted under clauses (viii), (x), (xiii), (xvi) and (xvii) no Event of Default shall have occurred and be continuing or would occur as a consequence thereof (or in the case of a Restricted Investment, no Event of Default under Section 11.1(a) or 11.1(e) shall have occurred and be continuing or would occur as a consequence thereof).

 

Holdings will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary except pursuant to the last sentence of the definition of Unrestricted Subsidiary.  For purposes of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by Holdings and the Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so designated will be deemed to be Restricted Payments in an amount determined as set forth in the second to last sentence of the definition of Investment.  Such designation will be permitted only if a Restricted Payment in such amount would be 

 

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permitted at such time, whether pursuant to Section 10.5(a) or under clauses (vi), (ix) or (x) of Section 10.5(b) or pursuant to the definition of Permitted Investments, and if such Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.  Unrestricted Subsidiaries will not be subject to any of the restrictive covenants set forth in this Agreement.

 

For purposes of determining compliance with this covenant, in the event that a proposed Restricted Payment or Investment (or a portion thereof) meets the criteria of clauses (i) through (xix) above or is entitled to be made pursuant to Section 10.5(a) and/or one or more of the exceptions contained in the definition of Permitted Investments (other than clause (c) thereof), Holdings will be entitled to classify (based on circumstances existing on the date of such classification) such Restricted Payment (or portion thereof) among such clauses(i) through (xix), Section 10.5(a) and/or one or more of the exceptions contained in the definition of Permitted Investments (other than clause (c) thereof), in a manner that otherwise complies with this covenant.

 

(c)                                  Prior to the Latest Term Loan Maturity Date, to the extent any Permitted Debt Exchange Notes are issued pursuant to Section 10.1(x) for the purpose of consummating a Permitted Debt Exchange, (i) Holdings will not, and will not permit any Restricted Subsidiary to, prepay, repurchase, redeem or otherwise defease or acquire any Permitted Debt Exchange Notes unless Holdings or a Restricted Subsidiary shall concurrently voluntarily prepay Term Loans pursuant to Section 5.1 on a pro rata basis among the Term Loans, in an amount not less than the product of (a) a fraction, the numerator of which is the aggregate principal amount (calculated on the face amount thereof) of such Permitted Debt Exchange Notes that are proposed to be prepaid, repurchased, redeemed, defeased or acquired and the denominator of which is the aggregate principal amount (calculated on the face amount thereof) of all Permitted Debt Exchange Notes in respect of the relevant Permitted Debt Exchange then outstanding (prior to giving effect to such proposed prepayment, repurchase, redemption, defeasance or acquisition) and (b) the aggregate principal amount (calculated on the face amount thereof) of Term Loans then outstanding and (ii) Holdings will not waive, amend or modify the terms of any Permitted Debt Exchange Notes or any indenture pursuant to which such Permitted Debt Exchange Notes have been issued in any manner inconsistent with the terms of Section 2.15(a), Section 10.1(x)), or the definition of Permitted Other Indebtedness or that would result in a Default hereunder if such Permitted Debt Exchange Notes (as so amended or modified) were then being issued or incurred.

 

10.6                        Limitation on Subsidiary Distributions. Holdings will not permit any of its Restricted Subsidiaries that are not Guarantors to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or consensual restriction on the ability of any such Restricted Subsidiary to:

 

(a)                                 (i) pay dividends or make any other distributions to Holdings or any Restricted Subsidiary on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits or (ii) pay any Indebtedness owed to Holdings or any Restricted Subsidiary;

 

(b)                                 make loans or advances to Holdings or any Restricted Subsidiary; or

 

(c)                                  sell, lease or transfer any of its properties or assets to Holdings or any Restricted Subsidiary;

 

except (in each case) for such encumbrances or restrictions existing under or by reason of:

 

(i)                                     contractual encumbrances or restrictions in effect on the Closing Date, including pursuant to this Agreement and the related documentation and related Hedging Obligations;

 

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(ii)                                  the Senior Notes Indenture, the Senior Notes and related guarantees;

 

(iii)                               purchase money obligations for property acquired in the ordinary course of business or consistent with past practice and Capitalized Lease Obligations that impose restrictions of the nature discussed in clause (c) above on the property so acquired;

 

(iv)                              Requirements of Law or any applicable rule, regulation or order;

 

(v)                                 any agreement or other instrument of a Person acquired by or merged or consolidated with or into Holdings or any Restricted Subsidiary, or of an Unrestricted Subsidiary that is designated a Restricted Subsidiary, or that is assumed in connection with the acquisition of assets from such Person, in each case that is in existence at the time of such transaction (but not created in contemplation thereof), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person and its Subsidiaries, or the property or assets of the Person and its Subsidiaries, so acquired or designated;

 

(vi)                              contracts for the sale of assets, including customary restrictions with respect to a Subsidiary of Holdings pursuant to an agreement that has been entered into for the sale or disposition of all or substantially all of the Capital Stock or assets of such Subsidiary;

 

(vii)                           (x) secured Indebtedness otherwise permitted to be incurred pursuant to Sections 10.1 and 10.2 that limits the right of the debtor to dispose of the assets securing such Indebtedness and (y) customary restrictions on transfers of assets subject to Permitted Liens (but, with respect to any such Permitted Lien, only to the extent that such transfer restrictions apply solely to the assets that are the subject of such Permitted Lien);

 

(viii)                        restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business;

 

(ix)                              other Indebtedness, Disqualified Stock or preferred stock of Restricted Subsidiaries permitted to be incurred subsequent to the Closing Date pursuant to the provisions of Section 10.1;

 

(x)                                 customary provisions in joint venture agreements or arrangements and other similar agreements or arrangements relating solely to such joint venture and the Equity Interests issued thereby;

 

(xi)                              customary provisions contained in leases, sub-leases, licenses, sub-licenses or similar agreements, in each case, entered into in the ordinary course of business;

 

(xii)                           restrictions created in connection with any Receivables Facility that, in the good faith determination of the board of directors of Holdings, are necessary or advisable to effect such Receivables Facility; and

 

(xiii)                        any encumbrances or restrictions of the type referred to in clauses (a), (b) and (c)  above imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i) through (xii) above; provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are, in the good faith judgment of the Borrower’s board of directors, no more restrictive in any material

 

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respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

 

10.7                        Consolidated Total Debt to Consolidated EBITDA Ratio

 

(a)                                 Holdings will not permit the Consolidated Total Debt to Consolidated EBITDA Ratio as of the last day of any Test Period to be greater than 4.25 to 1.00; or

 

(b)                                 If the Borrower has delivered a QMA Notice to the Administrative Agent, then for the first Test Period that ends on or subsequent to the applicable Consummation Date, Holdings will not permit the Consolidated Total Debt to Consolidated EBITDA Ratio as of the last day of such Test Period to be greater than 5.25 to 1.00; provided that (i) such ratio in respect of each subsequent Test Period shall be reduced by 0.25 to 1.00, (ii) in no event shall such ratio be lower than 4.25 to 1.00 and (iii) such an increase pursuant to this Section 10.7(b) shall be permitted no more than once during any period of 24 consecutive months.

 

10.8                        Fixed Charge Coverage Ratio. Holdings will not permit the Fixed Charge Coverage Ratio as of the last day of any Test Period to be less than 3.00 to 1.00.

 

Section 11.                                    Events of Default.

 

11.1                        Events of Default. Each of the following specified events shall constitute an “Event of Default”:

 

(a)                                 Payments.  The Borrower shall (a) default in the payment when due of any principal of the Loans or (b) default, and such default shall continue for five or more Business Days, in the payment when due of any interest on the Loans or any Fees or any Unpaid Drawings or of any other amounts owing hereunder or under any other Credit Document; or

 

(b)                                 Representations, Etc. Any representation, warranty or statement made or deemed made by any Credit Party herein or in any other Credit Document or any certificate delivered or required to be delivered pursuant hereto or thereto shall prove to be untrue in any material respect (or, with respect to any representation and warranty which is qualified by materiality, Material Adverse Effect or similar language, in all respects) on the date as of which made or deemed made; or

 

(c)                                  Covenants. Any Credit Party shall:

 

(i)                                     default in the due performance or observance by it of any term, covenant or agreement contained in Section 9.1(e)(i), Section 9.5 (solely with respect to Holdings or the Borrower) or Section 10; provided that any Event of Default under Section 10.7 is subject to cure as provided in Section 11.4 and an Event of Default with respect to such Section shall not occur until the expiration of the 10th Business Day subsequent to the date the relevant financial statements are required to be delivered for the applicable fiscal quarter pursuant to Section 9.1(a) or 9.1(b); or

 

(ii)                                  default in the due performance or observance by it of any term, covenant or agreement (other than those referred to in Section 11.1(a), Section 11.1(b) or Section 11.1(c)(i) contained in this Agreement or any other Credit Document and such default shall continue unremedied for a period of at least 30 days after receipt of written notice by the Borrower from

 

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the Administrative Agent or the Required Lenders; or

 

(d)                                 Default Under Other Agreements. (x)  Holdings or any of the Restricted Subsidiaries shall (i) fail to make any payment with respect to any Indebtedness (other than the Obligations) with an aggregate principal amount in excess of $40,000,000, beyond the period of grace and following all required notices, if any, provided in the instrument or agreement under which such Indebtedness was created or (ii) default in the observance or performance of any agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist (after giving effect to all applicable grace periods and delivery of all required notices) (other than, with respect to Indebtedness consisting of any Hedge Agreements, termination events or equivalent events pursuant to the terms of such Hedge Agreements (it being understood that clause (i) shall apply to any failure to make any payment in excess of $40,000,000 in respect of any Hedge Agreement that is required as a result of any such termination or similar event and that is not otherwise being contested in good faith)), the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, any such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided that this clause (x) shall not apply to secured Indebtedness that becomes due as a result of the sale, transfer or other disposition (including as a result of a casualty or condemnation event) of the property or assets securing such Indebtedness (to the extent such sale, transfer or other disposition is not prohibited under this Agreement), or (y) without limiting the provisions of clause (x) above, any such Indebtedness shall be declared to be due and payable, or required to be prepaid other than by a regularly scheduled required prepayment or as a mandatory prepayment (and, with respect to Indebtedness consisting of any Hedge Agreements, other than due to a termination event or equivalent event pursuant to the terms of such Hedge Agreements (it being understood that clause (x)(i) above shall apply to any failure to make any payment in excess of $40,000,000 in respect of any Hedge Agreement that is required as a result of any such termination or similar event and that is not otherwise being contested in good faith)), prior to the stated maturity thereof; provided that this clause (y) shall not apply to (i) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness, (ii) Indebtedness which is convertible into Qualified Stock and converts to Qualified Stock in accordance with its terms and such conversion is not prohibited hereunder or (iii) any breach or default that is (I) remedied by Holdings or the applicable Restricted Subsidiary or (II) waived (including in the form of amendment) by the required holders of the applicable item of Indebtedness, in either case, prior to the acceleration of Loans pursuant to this Section 11; or

 

(e)                                  Bankruptcy, Etc. Holdings, the Borrower or any Material Subsidiary shall commence a voluntary case, proceeding or action concerning itself under Title 11 of the United States Code entitled “Bankruptcy” any domestic or foreign law relating to bankruptcy, judicial management, insolvency, liquidation, receivership, reorganization, administration or relief of debtors in effect in its jurisdiction of incorporation, in each case as now or hereafter in effect, or any successor thereto (collectively, the “Bankruptcy Code”); or an involuntary case, proceeding or action is commenced against Holdings, the Borrower or any Material Subsidiary and the petition is not controverted within 60 days after commencement of the case, proceeding or action; or an involuntary case, proceeding or action is commenced against Holdings, the Borrower or any Material Subsidiary and the petition is not dismissed within 60 days after commencement of the case, proceeding or action; or a custodian (as defined in the Bankruptcy Code), judicial manager, compulsory manager, receiver, receiver manager, trustee, liquidator, administrator, administrative receiver or similar Person is appointed for, or takes charge of, all or substantially all of the property of Holdings, the Borrower or any Material Subsidiary; or Holdings, the

 

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Borrower or any Material Subsidiary commences any other voluntary proceeding or action under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency, winding-up, administration or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Holdings, the Borrower or any Material Subsidiary; or there is commenced against Holdings, the Borrower or any Material Subsidiary any such proceeding or action that remains undismissed for a period of 60 days; or Holdings, the Borrower or any Material Subsidiary is adjudicated bankrupt; or any order of relief or other order approving any such case or proceeding or action is entered; or Holdings, the Borrower or any Material Subsidiary suffers any appointment of any custodian receiver, receiver manager, trustee, administrator or the like for it or any substantial part of its property to continue undischarged or unstayed for a period of 60 days; or Holdings, the Borrower or any Material Subsidiary makes a general assignment for the benefit of creditors; or

 

(f)                                   ERISA.  (i) An ERISA Event or a Foreign Plan Event shall have occurred, (ii) a trustee shall be appointed by a United States district court to administer any Pension Plan(s), (iii) the PBGC shall institute proceedings to terminate any Pension Plan(s) or (iv) any Credit Party or any of their respective ERISA Affiliates shall have been notified by the sponsor of a Multiemployer Plan that it has incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and such entity does not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely and appropriate manner, and in each case in clauses (i) through (iv) above, such event or condition, together with all other such events or conditions, if any, would reasonably be expected to result in a Material Adverse Effect; or

 

(g)                                  Guarantee. Other than as expressly permitted hereunder, any Guarantee provided by any Credit Party or any material provision thereof shall cease to be in full force or effect (other than pursuant to the terms hereof and thereof) or any such Guarantor thereunder or any other Credit Party shall deny or disaffirm in writing any such Guarantor’s obligations under the Guarantee; or

 

(h)                                 Pledge Agreement. Other than as expressly permitted hereunder, the Pledge Agreement or any other Security Document pursuant to which the Capital Stock or Stock Equivalents of the Borrower or any Subsidiary is pledged or any material provision thereof shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof, solely as a result of acts or omissions of the Collateral Agent or any Lender or solely as a result of the Collateral Agent’s failure to maintain possession of any Capital Stock or Stock Equivalents that have been previously delivered to it) or any liens purported to be granted thereunder fail to be valid perfected Liens (other than pursuant to the terms hereof or thereof, solely as a result of acts of the Collateral Agent or omissions of actions required to be taken by the Collateral Agent or solely as a result of the Collateral Agent’s failure to maintain possession of any Capital Stock or Stock Equivalents that have been previously delivered to it) or any pledgor thereunder or any Credit Party shall deny or disaffirm in writing any pledgor’s obligations under any Security Document; or

 

(i)                                     Security Agreement. Other than as expressly permitted hereunder, the Security Agreement or any other Security Document pursuant to which the assets of Holdings, the Borrower or any Material Subsidiary are pledged as Collateral or any material provision thereof shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof, solely as a result of acts or omissions of the Collateral Agent in respect of certificates, promissory notes or instruments actually delivered to it (including as a result of the Collateral Agent’s failure to file a Uniform Commercial Code continuation statement)) or any liens purported to be granted thereunder fail to be valid perfected Liens (other than pursuant to the terms hereof or thereof, solely as a result of acts or omissions of the Collateral Agent in respect of certificates, promissory notes or instruments actually delivered to it (including as a result of the Collateral Agent’s failure to file a Uniform Commercial Code continuation statement) or any

 

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grantor thereunder or any Credit Party shall deny or disaffirm in writing any grantor’s obligations under the Security Agreement or any other Security Document; or

 

(j)                                    Subordination Agreements; Intercreditor Agreements. Other than as expressly permitted hereunder, (i) the subordination provisions in the documentation governing any Subordinated Indebtedness or any guarantees thereof shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof) or any Credit Party shall contest in writing the subordination of any Subordinated Indebtedness or any guarantees thereof, or (ii) the First Lien Intercreditor Agreement or Second Lien Intercreditor Agreement (to the extent in effect) shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof), or any Credit Party shall contest in writing the validity thereof;

 

(k)                                 Judgments.  One or more judgments or decrees shall be entered against Holdings or any of the Restricted Subsidiaries involving a liability of $40,000,000 or more in the aggregate for all such judgments and decrees for Holdings and the Restricted Subsidiaries (to the extent not paid or covered by insurance provided by a carrier notified of such judgment and not disputing coverage) and any such judgments or decrees shall not have been satisfied, vacated, discharged or stayed or bonded pending appeal within 60 days after the entry thereof; or

 

(l)                                     Change of Control. A Change of Control shall occur.

 

11.2                        Remedies Upon Event of Default. If an Event of Default occurs and is continuing (other than in the case of an Event of Default under Section 11.1(c)(i) with respect to any default of performance or compliance with the covenant under Section 10.7, if the Cure Right has not been exercised within the period set forth in Section 11.4), the Administrative Agent shall, upon the written request of the Required Lenders, by written notice to Holdings, without prejudice to the rights of the Administrative Agent or any Lender to enforce its claims against Holdings and the Borrower, except as otherwise specifically provided for in this Agreement: (i) declare the Total Revolving Credit Commitment and Swingline Commitment terminated, whereupon the Revolving Credit Commitment and Swingline Commitment, if any, of each Lender or the Swingline Lender, as the case may be, shall forthwith terminate immediately and any Fees theretofore accrued shall forthwith become due and payable without any other notice of any kind; (ii) declare the principal of and any accrued interest and fees in respect of all Loans and all Obligations to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower to the extent permitted by applicable law; (iii) terminate any Letter of Credit that may be terminated in accordance with its terms; (iv) direct the Borrower to pay (and the Borrower agrees that upon receipt of such notice, or upon the occurrence of an Event of Default specified in Section 11.1(e) with respect to the Borrower, it will pay) to the Administrative Agent at the Administrative Agent’s Office such additional amounts of cash, to be held as security for the Borrower’s reimbursement obligations for Drawings that may subsequently occur thereunder, equal to the aggregate Stated Amount of all Letters of Credit issued and then outstanding; and/or (v) exercise any or all other remedies available under the Credit Documents or at law or in equity; provided that, if an Event of Default specified in Section 11.1(e) shall occur with respect to the Borrower or Holdings, the foregoing shall occur and shall be permitted automatically without the giving of any such notice.

 

11.3                        Application of Proceeds. Subject to the terms of, in each case if in effect, the First Lien Intercreditor Agreement and the Second Lien Intercreditor Agreement, any amount received by the Administrative Agent or the Collateral Agent from any Credit Party (or from proceeds of any Collateral) following any acceleration of the Obligations under this Agreement or any Event of Default with respect to Holdings or the Borrower under Section 11.1(e) shall be applied:

 

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(a)                                 first, to the payment of all reasonable and documented costs and expenses incurred by the Administrative Agent or the Collateral Agent in connection with any collection or sale of the Collateral or otherwise in connection with any Credit Document, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent or the Collateral Agent hereunder or under any other Credit Document on behalf of any Credit Party and any other reasonable and documented costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Credit Document to the extent reimbursable hereunder or thereunder;

 

(b)                                 second, to the Secured Parties, an amount (x) equal to all Obligations owing to them on the date of any distribution and (y) sufficient to Cash Collateralize all Letters of Credit Outstanding on the date of any distribution, and, if such moneys shall be insufficient to pay such amounts in full and Cash Collateralize all Letters of Credit Outstanding, then ratably (without priority of any one over any other) to such Secured Parties in proportion to the unpaid amounts thereof and to Cash Collateralize the Letters of Credit Outstanding; and

 

(c)                                  third, any surplus then remaining shall be paid first pursuant to the First Lien Intercreditor Agreement or the Second Lien Intercreditor Agreement if then in effect and then to the applicable Credit Parties or their successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct;

 

provided that any amount applied to Cash Collateralize any Letters of Credit Outstanding that has not been applied to reimburse the Borrower for Unpaid Drawings under the applicable Letters of Credit at the time of expiration of all such Letters of Credit shall be applied by the Administrative Agent in the order specified in clauses 11.3(a)  through 11.3(c) above.  Notwithstanding the foregoing, amounts received from any Guarantor that is not an “Eligible Contract Participant” (as defined in the Commodity Exchange Act) shall not be applied to its Obligations that are Excluded Swap Obligations.

 

11.4                        Equity Cure. Notwithstanding anything to the contrary contained in this Section 11, in the event that Holdings fails to comply with the requirement of the financial covenant set forth in Section 10.7, from the end of the most recently ended fiscal quarter until the expiration of the 10th Business Day following the date financial statements referred to in Sections 9.1(a) or 9.1(b) are required to be delivered in respect of such fiscal period for which such financial covenant is being measured, any holder of Capital Stock or Stock Equivalents of Holdings or any direct or indirect parent of Holdings shall have the right to cure such failure (the “Cure Right”) by causing cash net equity proceeds derived from an issuance of Capital Stock or Stock Equivalents (which shall be common equity or otherwise in a form reasonably acceptable to the Administrative Agent) by Holdings (or from a contribution to the common equity capital of Holdings) to be contributed, directly or indirectly, as cash common equity to the Borrower, and upon receipt by the Borrower of such cash contribution (such cash amount being referred to as the “Cure Amount”) pursuant to the exercise of such Cure Right, such financial covenant shall be recalculated giving effect to the following pro forma adjustments:

 

(a)                                 Consolidated EBITDA shall be increased, solely for the purpose of determining the existence of an Event of Default resulting from a breach of the financial covenant set forth in Section 10.7 with respect to any period of four consecutive fiscal quarters that includes the fiscal quarter for which the Cure Right was exercised and not for any other purpose under this Agreement, by an amount equal to the Cure Amount; and

 

(b)                                 if, after giving effect to the foregoing recalculations, Holdings shall then be in compliance with the requirements of the financial covenant set forth in Section 10.7, Holdings shall be

 

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deemed to have satisfied the requirements of the financial covenant set forth in Section 10.7 as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of such financial covenants that had occurred shall be deemed cured for the purposes of this Agreement;

 

provided that (i) in each period of four consecutive fiscal quarters there shall be at least two fiscal quarters in which no Cure Right is made, (ii) there shall be a maximum of five Cure Rights made during the term of this Agreement, (iii) each Cure Amount shall be no greater than the amount expected to be required to cause the Borrower to be in compliance with the financial covenant set forth in Section 10.7; and (iv) all Cure Amounts shall be disregarded for the purposes of any financial ratio determination under the Credit Documents other than for determining compliance with Section 10.7.

 

Section 12.                                    The Agents.

 

12.1                        Appointment

 

(a)                                 Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement and the other Credit Documents and irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Credit Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and the other Credit Documents, together with such other powers as are reasonably incidental thereto.  The provisions of this Section 12 (other than Section 12.1(c) with respect to the Joint Lead Arrangers and Bookrunners and Section 12.9 with respect to Holdings) are solely for the benefit of the Agents and the Lenders, and neither Holdings nor the Borrower shall have rights as third party beneficiary of any such provision.  Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Credit Document or otherwise exist against the Administrative Agent.

 

(b)                                 The Administrative Agent, each Lender, the Swingline Lender and the Letter of Credit Issuers hereby irrevocably designate and appoint the Collateral Agent as the agent with respect to the Collateral, and each of the Administrative Agent, each Lender, the Swingline Lender and the Letter of Credit Issuers irrevocably authorizes the Collateral Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Credit Documents and to exercise such powers and perform such duties as are expressly delegated to the Collateral Agent by the terms of this Agreement and the other Credit Documents, together with such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary elsewhere in this Agreement, the Collateral Agent shall not have any duties or responsibilities except those expressly set forth herein, or any fiduciary relationship with any of the Administrative Agent, the Lenders, the Swingline Lender or the Letter of Credit Issuers, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Credit Document or otherwise exist against the Collateral Agent.

 

(c)                                  Each of the Syndication Agent, each Joint Lead Arranger and Bookrunner, each Managing Agent and each Co-Documentation Agent each in its capacity as such, shall not have any obligations, duties or responsibilities under this Agreement but shall be entitled to all benefits of this Section 12.

 

12.2                        Delegation of Duties. The Administrative Agent and the Collateral Agent may each

 

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execute any of its duties under this Agreement and the other Credit Documents by or through agents, sub-agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  Neither the Administrative Agent nor the Collateral Agent shall be responsible for the negligence or misconduct of any agents, subagents or attorneys-in-fact selected by it in the absence of its gross negligence or willful misconduct (as determined in the final non-appealable judgment of a court of competent jurisdiction).

 

12.3                        Exculpatory Provisions. No Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be (a) liable for any action lawfully taken or omitted to be taken by any of them under or in connection with this Agreement or any other Credit Document (except for its or such Person’s own gross negligence or willful misconduct, as determined in the final non-appealable judgment of a court of competent jurisdiction, in connection with its duties expressly set forth herein) or (b) responsible in any manner to any of the Lenders or any participant for any recitals, statements, representations or warranties made by any of Holdings, the Borrower, any Guarantor, any other Credit Party or any officer thereof contained in this Agreement or any other Credit Document or in any certificate, report, statement or other document referred to or provided for in, or received by such Agent under or in connection with, this Agreement or any other Credit Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Credit Document, or the perfection or priority of any Lien or security interest created or purported to be created under the Security Documents, or for any failure of Holdings, the Borrower, any Guarantor or any other Credit Party to perform its obligations hereunder or thereunder.  No Agent shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Credit Document, or to inspect the properties, books or records of any Credit Party or any Affiliate thereof.  The Collateral Agent shall not be under any obligation to the Administrative Agent or any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Credit Document, or to inspect the properties, books or records of any Credit Party.

 

12.4                        Reliance by Agents. The Administrative Agent and the Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or instruction believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to Holdings and the Borrower), independent accountants and other experts selected by the Administrative Agent or the Collateral Agent.  The Administrative Agent may deem and treat the Lender specified in the Register with respect to any amount owing hereunder as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent.  The Administrative Agent and the Collateral Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Credit Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent and the Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Credit Documents in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans; provided that the Administrative Agent and Collateral Agent shall not be required to take any action that, in its opinion or in the opinion of its counsel, may expose it to liability or that is contrary to any Credit Document or applicable law.  For purposes of determining compliance with the conditions specified in Section 6 on the Closing Date, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required

 

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thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

12.5                        Notice of Default. Neither the Administrative Agent nor the Collateral Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the Administrative Agent or Collateral Agent has received written notice from a Lender or Holdings or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent receives such a notice, it shall give notice thereof to the Lenders and the Collateral Agent.  The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders; provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders except to the extent that this Agreement requires that such action be taken only with the approval of the Required Lenders or each of the Lenders, as applicable.

 

12.6                        Non-Reliance on Administrative Agent, Collateral Agent and Other Lenders. Each Lender expressly acknowledges that neither the Administrative Agent nor the Collateral Agent nor any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the Administrative Agent or Collateral Agent hereinafter taken, including any review of the affairs of Holdings, the Borrower, any Guarantor or any other Credit Party, shall be deemed to constitute any representation or warranty by the Administrative Agent or Collateral Agent to any Lender, the Swingline Lender or any Letter of Credit Issuer.  Each Lender, the Swingline Lender and each Letter of Credit Issuer represents to the Administrative Agent and the Collateral Agent that it has, independently and without reliance upon the Administrative Agent, Collateral Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of Holdings, the Borrower, each Guarantor and each other Credit Party and made its own decision to make its Loans hereunder and enter into this Agreement.  Each Lender also represents that it will, independently and without reliance upon the Administrative Agent, Collateral Agent 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 analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Credit Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of Holdings, the Borrower, any Guarantor and any other Credit Party.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, neither the Administrative Agent nor the Collateral Agent shall have any duty or responsibility to provide any Lender with any credit or other information concerning the business, assets, operations, properties, financial condition, prospects or creditworthiness of Holdings, the Borrower, any Guarantor or any other Credit Party that may come into the possession of the Administrative Agent or Collateral Agent any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates.

 

12.7                        Indemnification. The Lenders agree to severally indemnify each Agent in its capacity as such (to the extent not reimbursed by the Credit Parties and without limiting the obligation of the Credit Parties to do so), ratably according to their respective portions of the Total Credit Exposure in effect on the date on which indemnification is sought (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with their respective portions of the Total Credit Exposure in effect immediately prior to such date), from and

 

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against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (including at any time following the payment of the Loans) be imposed on, incurred by or asserted against an Agent in any way relating to or arising out of the Commitments, this Agreement, any of the other Credit Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Administrative Agent or the Collateral Agent or any other Agent under or in connection with any of the foregoing; provided that no Lender shall be liable to an Agent for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction; provided, further, that no action taken by the Administrative Agent in accordance with the directions of the Required Lenders (or such other number or percentage of the Lenders as shall be required by the Credit Documents) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 12.7.  In the case of any investigation, litigation or proceeding giving rise to any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time occur (including at any time following the payment of the Loans), this Section 12.7 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person.  Without limitation of the foregoing, each Lender shall reimburse each Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including attorneys’ fees) incurred by such Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice rendered in respect of rights or responsibilities under, this Agreement, any other Credit Document, or any document contemplated by or referred to herein, to the extent that such Agent is not reimbursed for such expenses by or on behalf of Holdings or the Borrower; provided that such reimbursement by the Lenders shall not affect Holdings’ or the Borrower’s continuing reimbursement obligations with respect thereto.  If any indemnity furnished to any Agent for any purpose shall, in the opinion of such Agent, be insufficient or become impaired, such Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished; provided that in no event shall this sentence require any Lender to indemnify any Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement in excess of such Lender’s pro rata portion thereof; provided, further, this sentence shall not be deemed to require any Lender to indemnify any Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement resulting from such Agent’s gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction.  The agreements in this Section 12.7 shall survive the payment of the Loans and all other amounts payable hereunder.

 

12.8                        Agents in Their Individual Capacities. Each Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with Holdings, the Borrower, any Guarantor, and any other Credit Party as though such Agent were not an Agent hereunder and under the other Credit Documents.  With respect to the Loans made by it, each Agent shall have the same rights and powers under this Agreement and the other Credit Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity.

 

12.9                        Successor Agents

 

Each of the Administrative Agent and Collateral Agent may at any time give notice of its resignation to the Lenders, the Letter of Credit Issuers and Holdings.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, subject to the consent of Holdings (not to be unreasonably

 

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withheld or delayed) so long as no Default under Section 11.1(a) or 11.1(e) is continuing, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent meeting the qualifications set forth above; provided that if the Administrative Agent or Collateral Agent shall notify the Borrower and the Lenders that no qualifying person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Collateral Agent on behalf of the Lenders or the Letter of Credit Issuers under any of the Credit Documents, the retiring Collateral Agent shall continue to hold such collateral security as nominee until such time as a successor Collateral Agent is appointed) and (2) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and Letter of Credit Issuer directly, until such time as the Required Lenders appoint a successor Agent as provided for above in this paragraph.  Upon the acceptance of a successor’s appointment as the Administrative Agent or Collateral Agent, as the case may be, hereunder, and upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to the Mortgages, and such other instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to continue the perfection of the Liens granted or purported to be granted by the Security Documents, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section 12.9).  The fees payable by Holdings (following the effectiveness of such appointment) to such Agent shall be the same as those payable to its predecessor unless otherwise agreed between Holdings and such successor.  After the retiring Agent’s resignation hereunder and under the other Credit Documents, the provisions of this Section 12 (including Section 12.7) and Section 13.5 shall continue in effect for the benefit of such retiring 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 the retiring Agent was acting as an Agent.

 

Any resignation by Wells Fargo Bank, National Association as Administrative Agent pursuant to this Section 12.9 shall also constitute its and its Affiliates’ resignation as Letter of Credit Issuer and as Swingline Lender.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Letter of Credit Issuer and Swingline Lender, (b) the retiring Letter of Credit Issuer and Swingline Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Credit Documents and (c) the successor Letter of Credit Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring Letter of Credit Issuer to effectively assume the obligations of the retiring Letter of Credit Issuer with respect to such Letters of Credit.

 

12.10                 Withholding Tax. To the extent required by any applicable law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding tax.  If the Internal Revenue Service or any authority of the United States or other jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender for any reason (including, without limitation, because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstances that rendered the exemption from, or reduction of, withholding tax ineffective), such Lender shall indemnify the Administrative Agent (to the extent that the Administrative Agent has not

 

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already been reimbursed by any applicable Credit Party and without limiting the obligation of any applicable Credit Party to do so) fully for all amounts paid, directly or indirectly, by the Administrative Agent as Tax or otherwise, including penalties, additions to Tax and interest, together with all expenses incurred, including legal expenses, allocated staff costs and any out of pocket expenses.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Credit Document against any amount due to the Administrative Agent under this Section 12.10.  For the avoidance of doubt, for purposes of this Section 12.10, the term “Lender” includes any Letter of Credit Issuer and any Swingline Lender. The agreements in this Section 12.10 shall survive the payment of the Loans and all other amounts payable hereunder.

 

12.11                 Agents Under Security Documents and Guarantee. Each Secured Party hereby further authorizes the Administrative Agent or Collateral Agent, as applicable, on behalf of and for the benefit of the Secured Parties, to be the agent for and representative of the Secured Parties with respect to the Collateral, the Security Documents and the Guarantee. Subject to Section 13.1, without further written consent or authorization from any Secured Party, the Administrative Agent or Collateral Agent, as applicable, may execute any documents or instruments necessary to, in connection with a sale or disposition of assets permitted by this Agreement or with respect to which Required Lenders (or such other Lenders as may be required to give such consent under Section 13.1) have otherwise consented, (i) release any Lien encumbering any item of Collateral that is the subject of such sale or other disposition of assets or (ii) release any Guarantor from the Guarantee.

 

The Collateral Agent shall have its own independent right to demand payment of the amounts payable by the Borrower under this Section 12.11, irrespective of any discharge of the Borrower’s obligations to pay those amounts to the other Lenders resulting from failure by them to take appropriate steps in insolvency proceedings affecting the Borrower to preserve their entitlement to be paid those amounts.

 

Any amount due and payable by the Borrower to the Collateral Agent under this Section 12.11 shall be decreased to the extent that the other Lenders have received (and are able to retain) payment in full of the corresponding amount under the other provisions of the Credit Documents and any amount due and payable by the Borrower to the Collateral Agent under those provisions shall be decreased to the extent that the Collateral Agent has received (and is able to retain) payment in full of the corresponding amount under this Section 12.11.

 

12.12                 Right to Realize on Collateral and Enforce Guarantee. Subject to Section 13.8, anything contained in any of the Credit Documents to the contrary notwithstanding, Holdings, the Borrower, the Agents and each Secured Party hereby agree that (i) no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce the Guarantee, it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Administrative Agent on behalf of the Secured Parties in accordance with the terms hereof and all powers, rights and remedies under the Security Documents and the Guarantee may be exercised solely by the Collateral Agent on behalf of the Secured Parties in accordance with the terms hereof and thereof and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser or licensor of any or all of such Collateral at any such sale or other disposition and the Collateral Agent, as agent for and representative of the Secured Parties (but not any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.  No holder of Secured Hedge

 

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Obligations or Secured Cash Management Obligations shall have any rights in connection with the management or release of any Collateral or of the obligations of any Credit Party under this Agreement.  No holder of Secured Hedge Obligations or Secured Cash Management Obligations that obtains the benefits of any Guarantee or any Collateral by virtue of the provisions hereof or of any other Credit Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Credit Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender or Agent and, in such case, only to the extent expressly provided in the Credit Documents.  Notwithstanding any other provision of this Agreement to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Obligations arising under Secured Hedge Agreements and Secured Cash Management Agreements.

 

12.13                 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding under any debtor relief law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Outstanding shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

(a)                                 to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 4.1 and 13.5) allowed in such judicial proceeding; and

 

(b)                                 to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 4.1 and 13.5.

 

Section 13.                                    Miscellaneous.

 

13.1                        Amendments, Waivers and Releases. Except as otherwise expressly set forth in the Credit Documents, neither this Agreement nor any other Credit Document, nor any terms hereof or thereof, may be amended, supplemented or modified except in accordance with the provisions of this Section 13.1.  Except as provided to the contrary in Section 2.14 or 2.15 or the sixth paragraph of this Section 13.1 in respect of Replacement Term Loans, the Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent and/or the Collateral Agent may, from time to time, (a) enter into with the relevant Credit Party or Credit Parties written amendments, supplements or modifications hereto and to the other Credit Documents for the purpose of adding any provisions to this Agreement or the other Credit Documents or changing in any manner the rights of the Lenders or of the Credit Parties hereunder or thereunder or (b) waive in writing, on such terms and conditions as the Required Lenders or the Administrative Agent and/or the Collateral Agent, as the case may be, may specify in such instrument,

 

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any of the requirements of this Agreement or the other Credit Documents or any Default or Event of Default and its consequences; provided, however, that each such waiver and each such amendment, supplement or modification shall be effective only in the specific instance and for the specific purpose for which given; and provided, further, that no such waiver and no such amendment, supplement or modification shall (x) (i) forgive or reduce any portion of any Loan or extend the final scheduled maturity date of any Loan or reduce the stated rate (it being understood that only the consent of the Required Lenders shall be necessary to waive any obligation of the Borrower to pay interest at the Default Rate or amend Section 2.8(c)), or forgive any portion thereof, or extend the date for the payment, of any principal, interest or fee hereunder (other than as a result of waiving the applicability of any post-default increase in interest rates), or extend the final expiration date of any Letter of Credit beyond the L/C Facility Maturity Date, or amend or modify any provisions of Sections 5.2(c) (with respect to the ratable allocation of any payments only), 5.2(d) (with respect to the ratable allocation of any payments only), 5.2(e) (with respect to the ratable allocation of any payments only), 5.3(a) (with respect to the ratable allocation of any payments only), 11.3, 13.8(a) or 13.20, or make any Loan, interest, Fee or other amount payable in any currency other than expressly provided herein, in each case without the written consent of each Lender directly and adversely affected thereby; provided that a waiver of any condition precedent in Section 6 or 7 of this Agreement, the waiver of any Default, Event of Default, default interest, mandatory prepayment or reductions, any modification, waiver or amendment to the financial covenant definitions or financial ratios or any component thereof or the waiver of any other covenant shall not constitute an increase of any Commitment of a Lender, a reduction or forgiveness in the interest rates or the fees or premiums or a postponement of any date scheduled for the payment of principal, premium or interest or an extension of the final maturity of any Loan or the scheduled termination date of any Commitment, in each case for purposes of this clause (i), or (ii) consent to the assignment or transfer by the Borrower of its rights and obligations under any Credit Document to which it is a party (except as permitted pursuant to Section 10.3), in each case without the written consent of each Lender, or (iii) amend, modify or waive any provision of Section 12 without the written consent of the then-current Administrative Agent and Collateral Agent in a manner that directly and adversely affects such Person, or (iv) amend, modify or waive any provision of Section 3 with respect to any Letter of Credit without the written consent of each Letter of Credit Issuer to the extent such amendment, modification or waiver directly and adversely affects such Letter of Credit Issuer, or (v) amend, modify or waive any provisions hereof relating to Swingline Loans without the written consent of the Swingline Lender in a manner that directly and adversely affects such Person, or (vi) change any Revolving Credit Commitment to a Term Loan Commitment, or change any Term Loan Commitment to a Revolving Credit Commitment, in each case without the prior written consent of each Lender directly and adversely affected thereby, (vii) release all or substantially all of the value of the Guarantors under the Guarantees (except as expressly permitted by the Guarantees or this Agreement) or release all or substantially all of the Collateral under the Security Documents (except as expressly permitted by the Security Documents) without the prior written consent of each Lender, or (viii) decrease the Initial Term Loan Repayment Amount applicable to Initial Term Loans or extend any scheduled Initial Term Loan Repayment Date applicable to Initial Term Loans, decrease the New Term Loan Repayment Amount applicable to New Term Loans or extend any scheduled New Term Loan Repayment Date applicable to New Term Loans, decrease the Extended Term Loan Repayment Amount applicable to Extended Term Loans or extend any Extended Repayment Date applicable to Extended Term Loans, or decrease the amount of any scheduled repayment of Replacement Term Loans or extend the date for any scheduled repayment of Replacement Term Loans, in each case without the written consent of each Lender directly and adversely affected thereby, or (ix) reduce the majority specification in the definitions of the terms “Required Lenders”, “Required Revolving Credit Lenders”, “Required Term Loan Lenders” or “Required Initial Term Loan Lenders” or amend, modify or waive any provision of this Section 13.1 that has the effect of decreasing the number or percentage of Lenders that must approve any amendment, modification or waiver, without the written consent of each Lender or (y) notwithstanding anything to the contrary in clause (x), (i) extend the final expiration date of

 

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any Lender’s Commitment or (ii) increase the aggregate amount of the Commitments of any Lender, in each case, without the written consent of such Lender.

 

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except (x) that the Commitment of such Lender may not be increased or extended without the consent of such Lender and (y) for any such amendment, waiver or consent that treats such Defaulting Lender disproportionately from the other Lenders of the same Class.

 

Notwithstanding the foregoing, any amendment, waiver or modification that affects one Class of Lenders differently and adversely than another Class of Lenders shall required the consent of Persons holding a majority of the Commitments of such Class.

 

Any such waiver and any such amendment, supplement or modification shall apply equally to each of the affected Lenders and shall be binding upon Holdings, the Borrower, the other Credit Parties, such Lenders, the Administrative Agent and all future holders of the affected Loans.  In the case of any waiver, Holdings,  the Borrower, the Lenders and the Administrative Agent shall be restored to their former positions and rights hereunder and under the other Credit Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing, it being understood that no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.  In connection with the foregoing provisions, the Administrative Agent may, but shall have no obligations to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender.

 

Notwithstanding the foregoing, in addition to any credit extensions and related Joinder Agreement(s) effectuated without the consent of Lenders in accordance with Section 2.14, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent, Holdings and the Borrower (a) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Credit Documents with the Term Loans and the Revolving Loans and the accrued interest and fees in respect thereof and (b) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders and other definitions related to such new facilities.

 

In addition, notwithstanding the foregoing, this Agreement may be amended with the written consent of the Administrative Agent, Holdings, the Borrower and the Lenders providing the relevant Replacement Term Loans to permit the refinancing of all outstanding Term Loans of any Class (“Refinanced Term Loans”) with a replacement term loan tranche (“Replacement Term Loans”) hereunder; provided that (a) the aggregate principal amount of such Replacement Term Loans shall not exceed the aggregate principal amount of such Refinanced Term Loans (plus an amount equal to all accrued but unpaid interest, fees, premiums and expenses incurred in connection therewith), (b) the Applicable Margin for such Replacement Term Loans shall not be higher than the Applicable Margin for such Refinanced Term Loans, unless any such Applicable Margin applies after the Initial Term Loan Maturity Date, (c) the weighted average life to maturity of such Replacement Term Loans shall not be shorter than the weighted average life to maturity of such Refinanced Term Loans at the time of such refinancing (except to the extent of nominal amortization for periods where amortization has been eliminated as a result of prepayment of the applicable Term Loans), (d) the covenants, events of default and guarantees shall be not materially more restrictive (taken as a whole) (as determined in good faith by the Borrower) to the Lenders providing such Replacement Term Loans than the covenants, events of default and guarantees applicable to such Refinanced Term Loans, except to the extent necessary to

 

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provide for covenants, events of default and guarantees applicable to any period after the maturity date in respect of the Refinanced Term Loans in effect immediately prior to such refinancing and (e) any such amendment may, without the consent of any other Lenders, provide that the applicable Replacement Term Loans will benefit from clauses (x) and (z) of the second sentence of Section 2.14(g)(i) and clause (b) of the sixth paragraph of Section 13.1.

 

The Lenders hereby irrevocably agree that the Liens granted to the Collateral Agent by the Credit Parties on any Collateral shall be automatically released (i) in full, upon the termination of this Agreement and the payment of all Obligations hereunder (except for (w) contingent indemnification obligations in respect of which a claim has not yet been made, (x) Secured Hedge Obligations, (y) Cash Collateralized Letters of Credit pursuant to arrangements reasonably acceptable to the Letter of Credit Issuer and (z) Secured Cash Management Obligations), (ii) upon the sale or other disposition of such Collateral (including as part of or in connection with any other sale or other disposition permitted hereunder) to any Person other than another Credit Party, to the extent such sale or other disposition is made in compliance with the terms of this Agreement (and the Collateral Agent may rely conclusively on a certificate to that effect provided to it by any Credit Party upon its reasonable request without further inquiry), (iii) to the extent such Collateral is comprised of property leased to a Credit Party, upon termination or expiration of such lease, (iv) if the release of such Lien is approved, authorized or ratified in writing by the Required Lenders (or such other percentage of the Lenders whose consent may be required in accordance with this Section 13.1), (v) to the extent the property constituting such Collateral is owned by any Guarantor, upon the release of such Guarantor from its obligations under the applicable Guarantee (in accordance with the second following sentence), (vi) as required to effect any sale or other disposition of Collateral in connection with any exercise of remedies of the Collateral Agent pursuant to the Security Documents and (vii) if such assets constitute Excluded Property or Excluded Stock or Stock Equivalents.  Any such release shall not in any manner discharge, affect or impair the Obligations or any Liens (other than those being released) upon (or obligations (other than those being released) of the Credit Parties in respect of) all interests retained by the Credit Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral except to the extent otherwise released in accordance with the provisions of the Credit Documents.  Additionally, the Lenders hereby irrevocably agree that any Restricted Subsidiary that is a Guarantor shall be released from the Guarantees upon consummation of any transaction not prohibited hereunder resulting in such Subsidiary ceasing to constitute a Restricted Subsidiary.  The Lenders hereby authorize the Administrative Agent and the Collateral Agent, as applicable, to execute and deliver any instruments, documents and agreements necessary or desirable to evidence and confirm the release of any Guarantor or Collateral pursuant to the foregoing provisions of this paragraph, all without the further consent or joinder of any Lender.

 

Notwithstanding anything herein to the contrary (i) the Credit Documents may be amended to add syndication or documentation agents and make customary changes and references related thereto with the consent of only the Borrower and the Administrative Agent and (ii) the Credit Documents may be amended to add provisions applicable to any approved additional Alternative Currency with the consent of only the Borrower, the Administrative Agent, the applicable Revolving Credit Lenders and the applicable Letter of Credit Issuers.

 

Notwithstanding anything in this Agreement (including, without limitation, this Section 13.1) or any other Credit Document to the contrary, (i) this Agreement and the other Credit Documents may be amended to effect an incremental facility or extension facility pursuant to Section 2.14 or to add Additional Borrowers pursuant to Section 9.11(b) (and the Administrative Agent and the Borrower may effect such amendments to this Agreement and the other Credit Documents without the consent of any other party as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the terms of any such incremental facility or extension facility or to add Additional

 

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Borrowers); (ii) no Lender consent is required to effect any amendment or supplement to the First Lien Intercreditor Agreement, Second Lien Intercreditor Agreement or any other intercreditor agreement or arrangement permitted under this Agreement that is for the purpose of adding the holders of any Indebtedness as expressly contemplated by the terms of the First Lien Intercreditor Agreement, Second Lien Intercreditor Agreement or such other intercreditor agreement or arrangement permitted under this Agreement, as applicable (it being understood that any such amendment or supplement may make such other changes to the applicable intercreditor agreement as, in the good faith determination of the Administrative Agent, are required to effectuate the foregoing; provided that such other changes are not adverse, in any material respect, to the interests of the Lenders taken as a whole); provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder or under any other Credit Document without the prior written consent of the Administrative Agent; (iii) any provision of this Agreement or any other Credit Document may be amended by an agreement in writing entered into by the Borrower and the Administrative Agent to (x) cure any ambiguity, omission, mistake, defect or inconsistency (as reasonably determined by the Administrative Agent and the Borrower) and (y) effect administrative changes of a technical or immaterial nature (including, with the consent of the Letter of Credit Issuers, to effect changes to the terms and conditions applicable solely to the Letter of Credit Issuers in respect of issuances of Letters of Credit) and, in the case of each of clauses (x) and (y), such amendment shall be deemed approved by the Lenders if the Lenders shall have received at least five Business Days’ prior written notice of such change and the Administrative Agent shall not have received, within five Business Days of the date of such notice to the Lenders, a written notice from the Required Lenders stating that the Required Lenders object to such amendment; and (iv) guarantees, collateral documents and related documents executed by Credit Parties in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be, together with any other Credit Document, entered into, amended, supplemented or waived, without the consent of any other Person, by the applicable Credit Party or Credit Parties and the Administrative Agent or the Collateral Agent in its or their respective sole discretion, to (A) effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the Secured Parties, (B) as required by local law or advice of counsel to give effect to, or protect any security interest for the benefit of the Secured Parties, in any property or so that the security interests therein comply with applicable requirements of law, or (C) to cure ambiguities, omissions, mistakes or defects (as reasonably determined by the Administrative Agent and the Borrower) or to cause such guarantee, collateral security document or other document to be consistent with this Agreement and the other Credit Documents.

 

Notwithstanding anything in this Agreement or any Security Document to the contrary, the Administrative Agent may, in its sole discretion, grant extensions of time for the satisfaction of any of the requirements under Sections 9.11, 9.12 and 9.14 or any Security Documents in respect of any particular Collateral or any particular Subsidiary if it determines that the satisfaction thereof with respect to such Collateral or such Subsidiary cannot be accomplished without undue expense or unreasonable effort or due to factors beyond the control of Holdings and the Restricted Subsidiaries by the time or times at which it would otherwise be required to be satisfied under this Agreement or any Security Document.

 

13.2                        Notices. Unless otherwise expressly provided herein, all notices and other communications provided for hereunder or under any other Credit Document shall be in writing (including by facsimile transmission).  All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(a)                                 if to Holdings, the Borrower, the Administrative Agent, the Collateral Agent, the Letter

 

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of Credit Issuer or the Swingline Lender, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 13.2 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; and

 

(b)                                 if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to Holdings, the Borrower, the Administrative Agent, the Collateral Agent, the Letter of Credit Issuers and the Swingline Lender.

 

All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, three Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail, when delivered; provided that notices and other communications to the Administrative Agent or the Lenders pursuant to Sections 2.3, 2.6, 2.9, 4.2 and 5.1 shall not be effective until received.

 

13.3                        No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Administrative Agent, the Collateral Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Credit Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

13.4                        Survival of Representations and Warranties. All representations and warranties made hereunder, in the other Credit Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans hereunder.

 

13.5                        Payment of Expenses; Indemnification. Holdings and the Borrower agree (a) to pay or reimburse the Agents for all their reasonable and documented out-of-pocket costs and expenses incurred in connection with the development, preparation and execution and delivery of, and any amendment, supplement or modification to, this Agreement and the other Credit Documents and any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including the reasonable fees, disbursements and other charges of Latham & Watkins LLP, as counsel to the Agents, and one local counsel to the Agents in each relevant jurisdiction, or such other counsel retained with Holdings’ consent (such consent not to be unreasonably withheld), (b) to pay or reimburse each Agent for all its reasonable and documented out-of-pocket costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Credit Documents and any such other documents, including the reasonable fees, disbursements and other charges of Latham & Watkins LLP, as counsel to the Agents, and one local counsel to the Agents in each relevant jurisdiction, or such other counsel retained with Holdings’ consent (such consent not to be unreasonably withheld), (c) to pay, indemnify, and hold harmless each Lender and Agent from, any and all recording and filing fees and (d) to pay, indemnify, and hold harmless each Lender and Agent and their respective Affiliates, directors, officers, employees, trustees, investment advisors and agents from and against any and all other liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements of any

 

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kind or nature whatsoever, including reasonable and documented fees, disbursements and other charges of one primary counsel and one local counsel in each relevant jurisdiction to such indemnified Persons (unless there is an actual or perceived conflict of interest or the availability of different claims or defenses in which case each such Person may retain its own counsel), related to the Transactions or with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Credit Documents and any such other documents, including, without limitation, any of the foregoing relating to the violation of, noncompliance with or liability under, any Environmental Law, in each case, applicable to Holdings or any of its Subsidiaries or to any actual or alleged presence, Release or threatened Release of Hazardous Materials involving or attributable to Holdings or any of its Subsidiaries (all the foregoing in this clause (d), collectively, the “indemnified liabilities”); provided that Holdings shall have no obligation hereunder to any Agent or any Lender or any of their respective Affiliates, officers, directors, employees or agents with respect to indemnified liabilities to the extent it has been determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted from (i) the gross negligence, bad faith or willful misconduct of the party to be indemnified or any of its Affiliates, or any of its or its Affiliates’ officers, directors, employees, members or agents, (ii) a material breach of any Credit Document by the party to be indemnified or (iii) disputes between and among Persons otherwise entitled to indemnification; provided that the Agents (and their related affiliates, officers, directors, employees, agents, controlling persons, advisors and other representatives), to the extent acting in their capacity as such, shall remain indemnified in respect of such disputes to the extent otherwise entitled to be so indemnified hereunder.  No Person entitled to indemnification under clause (d) of this Section 13.5 shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any such Person have any liability for any special, punitive, indirect or consequential damages relating to this Agreement or any other Credit Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date).  In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 13.5 applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Credit Party, its directors, stockholders or creditors or any other Person, and whether or not any Person entitled to indemnification under clause (d) of this Section 13.5 is otherwise a party thereto.  All amounts payable under this Section 13.5 shall be paid within ten Business Days of receipt by Holdings of an invoice relating thereto setting forth such expense in reasonable retail.  The agreements in this Section 13.5 shall survive repayment of the Loans and all other amounts payable hereunder. This Section 13.5 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, liabilities, obligations, penalties, demands, actions, judgments, suits, costs, expenses or disbursements arising from any non-Tax claim.

 

13.6                        Successors and Assigns; Participations and Assignments

 

(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, except that (i) except as expressly permitted by Section 10.3, no Borrower or Additional Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender (and any attempted assignment or transfer by the 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 13.6.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants (to the extent provided in clause (c) of this Section 13.6) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Collateral Agent, the Letter of Credit Issuer and the Lenders and each other Person entitled to indemnification under Section 13.5) any legal or equitable right, remedy or claim under or by reason of

 

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this Agreement.

 

(b)                                 (i)  Subject to the conditions set forth in Sections 13.6(b)(ii) and 13.7, any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans (including participations in L/C Obligations or Swingline Loans) at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed; it being understood that, without limitation, the Borrower shall have the right to withhold or delay its consent to any assignment if, in order for such assignment to comply with applicable law, the Borrower would be required to obtain the consent of, or make any filing or registration with, any Governmental Authority) of:

 

(A)                               the Borrower; provided that no consent of the Borrower shall be required for (1) an assignment of Term Loans to (X) a Lender, (Y) an Affiliate of a Lender or (Z) an Approved Fund or (2) an assignment of Loans or Commitments to any assignee if an Event of Default under Section 11.1(a) or Section 11.1(e) (with respect to Holdings or the Borrower) has occurred and is continuing; and

 

(B)                               the Administrative Agent and, in the case of Revolving Credit Commitments or Revolving Loans only, the Swingline Lender and each Letter of Credit Issuer; provided that no consent of the Administrative Agent, shall be required for an assignment of any Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund.

 

Notwithstanding the foregoing, no such assignment shall be made (i) to a natural person, Disqualified Lender or Defaulting Lender and (ii) with respect to the Revolving Credit Commitments and Revolving Loans, Holdings, the Borrower or any of their Subsidiaries or any Affiliated Lender.  For the avoidance of doubt, the Administrative Agent shall bear no responsibility or liability for monitoring and enforcing the list of Persons who are Disqualified Lenders at any time.

 

(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 Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 in the case of Revolving Credit Commitments and $1,000,000 in the case of Term Loans, unless each of the Borrower and the Administrative Agent otherwise consents (which consents shall not be unreasonably withheld or delayed); provided that no such consent of the Borrower shall be required if an Event of Default under Section 11.1(a) or Section 11.1(e) has occurred and is continuing; provided, further, that contemporaneous assignments by a Lender and its Affiliates or Approved Funds shall be aggregated for purposes of meeting the minimum assignment amount requirements stated above (and simultaneous assignments to or by two or more Related Funds shall be treated as one assignment), if any;

 

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(B)                               each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;

 

(C)                               the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance via an electronic settlement system or other method reasonably acceptable to the Administrative Agent, together with a processing and recordation fee in the amount of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment;

 

(D)                               the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an administrative questionnaire in a form approved by the Administrative Agent (the “Administrative Questionnaire”) and applicable tax forms (as required under Section 5.4(e)); and

 

(E)                                any assignment to Holdings, the Borrower, any Subsidiary or an Affiliated Lender shall also be subject to the requirements of Section 13.6(h).

 

(iii)                               Subject to acceptance and recording thereof pursuant to Section 13.6(b)(v), from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance 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 2.10, 2.11, 3.5, 5.4 and 13.5).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 13.6 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 Section 13.6(c).  For the avoidance of doubt, in case of an assignment to a new Lender pursuant to this Section 13.6, (i) the Administrative Agent, the new Lender and 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 signatory to this Agreement with the rights and/or obligations acquired or assumed by it as a result of the assignment and to the extent of the assignment the assigning Lender shall each be released from further obligations under the Credit Documents and (ii) the benefit of each Security Document and Guarantee shall be maintained in favor of the new Lender.

 

(iv)                              The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount of the Loans (and related interest amounts) and any payment made by any Letter of Credit Issuer under any Letter of Credit owing to each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the

 

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Register shall be conclusive, absent manifest error, and the Borrower, the Administrative Agent, the Collateral Agent, the Letter of Credit Issuers 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 Borrower, the Collateral Agent, the Letter of Credit Issuers, the Administrative Agent and its Affiliates and, with respect to itself, any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(v)                                 Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire and applicable tax forms (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in Section 13.6(b)(ii)(C) and any written consent to such assignment required by Section 13.6(b)(i) the Administrative Agent shall promptly accept such Assignment and Acceptance and record the information contained therein in the Register.  No assignment, whether or not evidenced by a promissory note, shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this clause 13.6(b)(v).

 

(c)

 

(i)                                     Any Lender may, without the consent of the Borrower or the Administrative Agent, the Letter of Credit Issuers or the Swingline Lender, sell participations to one or more banks or other entities (other than (x) a natural person, (y) Holdings and its Subsidiaries and (z) any Disqualified Lender provided, however, that, notwithstanding clause (z) hereof, participations may be sold to Disqualified Lenders unless a list of Disqualified Lenders has been made available to all Lenders) (each, a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent, the Letter of Credit Issuers and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, the Administrative Agent shall bear no responsibility or liability for monitoring and enforcing the list of Disqualified Lenders or the sales of participations thereto at any time.  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 or any other Credit Document; 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 clauses (x)(i), (x)(vii) and (x)(viii) and clause (y) of the second proviso to Section 13.1 that affects such Participant.  Subject to Section 13.6(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.10, 2.11, 3.5 and 5.4 to the same extent as if it were a Lender (subject to the limitations and requirements of those Sections as though it were a Lender and had acquired its interest by assignment pursuant to Section 13.6(b), including the requirements of Section 5.4(e)) (it being agreed that any documentation required under Section 5.4(e) shall be provided to the participating Lender)).  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 13.8(b) as though it were a Lender; provided such Participant shall be subject to Section 13.8(a) as though it were a Lender.

 

(ii)                                  A Participant shall not be entitled to receive any greater payment under Sections 2.10, 2.11, 3.5 or 5.4 than the applicable Lender would have been entitled to receive

 

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absent the sale of such participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent (which consent shall not be unreasonably withheld).  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant to which such Lender sold a participation and the principal amounts (and related interest amounts) of each such Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”).  The entries in the Participant Register shall be conclusive, absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  No Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Credit Document) except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. 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, without the consent of the Borrower or the Administrative Agent, at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, or other central bank having jurisdiction over such Lender and this Section 13.6 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.

 

(e)                                  Subject to Section 13.16, the Borrower authorizes each Lender to disclose to any Participant, secured creditor of such Lender or assignee (each, a “Transferee”) and any prospective Transferee any and all financial information in such Lender’s possession concerning the Borrower and its Affiliates that has been delivered to such Lender by or on behalf of the Borrower and its Affiliates pursuant to this Agreement or that has been delivered to such Lender by or on behalf of the Borrower and its Affiliates in connection with such Lender’s credit evaluation of the Borrower and its Affiliates prior to becoming a party to this Agreement.

 

(f)                                   The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Acceptance shall be deemed to include electronic signatures 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 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.

 

(g)                                  SPV Lender.  Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPV”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPV to make any Loan and (ii) if an SPV elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPV hereunder shall utilize

 

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the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPV shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it shall not institute against, or join any other Person in instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this Section 13.6, any SPV may (i) with notice to, but without the prior written consent of, the Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and the Administrative Agent) other than a Disqualified Lender providing liquidity and/or credit support to or for the account of such SPV to support the funding or maintenance of Loans and (ii) subject to Section 13.16, disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPV.  This Section 13.6(g) may not be amended without the written consent of the SPV.  Notwithstanding anything to the contrary in this Agreement but subject to the following sentence, each SPV shall be entitled to the benefits of Sections 2.10, 2.11, 3.5 and 5.4 to the same extent as if it were a Lender (subject to the limitations and requirements of those Sections as though it were a Lender and had acquired its interest by assignment pursuant to Section 13.6(b), including the requirements of Section 5.4(e) (it being agreed that any documentation required under Section 5.4(e) shall be provided to the Granting Lender)). Notwithstanding the prior sentence, an SPV shall not be entitled to receive any greater payment under Sections 2.10, 2.11, 3.5 or 5.4 than its Granting Lender would have been entitled to receive absent the grant to such SPV, unless such grant to such SPV is made with the Borrower’s prior written consent (which consent shall not be unreasonably withheld).

 

(h)                                 Notwithstanding anything to the contrary contained herein, (x) any Lender may, at any time, assign all or a portion of its rights and obligations under this Agreement in respect of its Term Loans to Holdings, the Borrower, any Subsidiary or an Affiliated Lender and (y) Holdings, the Borrower and any Subsidiary may, from time to time, purchase or prepay Term Loans, in each case, on a non-pro rata basis through (1) Dutch auction procedures open to all applicable Lenders on a pro rata basis in accordance with customary procedures to be agreed between Holdings or the Borrower and the Auction Agent or (2) open market purchases; provided that:

 

(i)                                     any Loans or Commitments acquired by Holdings, the Borrower or any other Subsidiary shall be retired and cancelled promptly upon the acquisition thereof;

 

(ii)                                  by its acquisition of Loans or Commitments, an Affiliated Lender shall be deemed to have acknowledged and agreed that:

 

(A)                               it shall not have any right to (i) attend or participate in (including, in each case, by telephone) any meeting (including “Lender only” meetings) or discussions (or portion thereof) among the Administrative Agent, the Collateral Agent or any Lender or Lenders to which representatives of the Borrower are not then present, (ii) receive any information or material prepared by the Administrative Agent, the Collateral Agent or any Lender or any communication by or among the Administrative Agent, the Collateral Agent and one or more Lenders or any other material which is “Lender only”, except to the extent such information or

 

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materials have been made available to the Borrower or its representatives (and in any case, other than the right to receive notices of prepayments and other administrative notices in respect of its Loans required to be delivered to Lenders pursuant to Section 2) or (iii) make or bring (or participate in, other than as a passive participant in or recipient of its pro rata benefits of) any claim, in its capacity as a Lender, against the Administrative Agent, the Collateral Agent or any other Lender with respect to any duties or obligations or alleged duties or obligations of such Agent or any other such Lender under the Credit Documents; (iv) receive any advice of counsel to the Administrative Agent or the Collateral Agent; or (v) make any challenge to the Administrative Agent’s, the Collateral Agent’s or any other Lender’s attorney-client privilege on the basis of its status as a Lender; and

 

(B)                               except with respect to any amendment, modification, waiver, consent or other action (I) in Section 13.1 requiring the consent of all Lenders, all Lenders directly and adversely affected (but only if it is so directly and adversely affected) or specifically such Lender, (II) that alters an Affiliated Lender’s pro rata share of any payments given to all Lenders, or (III) affects the Affiliated Lender (in its capacity as a Lender) in a manner that is disproportionate to the effect on any Lender in the same Class, the Loans held by an Affiliated Lender shall be disregarded in both the numerator and denominator in the calculation of any Lender vote (and, in the case of a plan of reorganization that does not affect the Affiliated Lender in a manner that is materially adverse to such Affiliated Lender relative to other Lenders, shall be deemed to have voted its interest in the Term Loans in the same proportion as the other Lenders) (and shall be deemed to have been voted in the same percentage as all other applicable Lenders voted if necessary to give legal effect to this paragraph); and

 

(iii)                               the aggregate principal amount of Term Loans held at any one time by Affiliated Lenders may not exceed 30% of the aggregate principal amount of all Term Loans outstanding at such time under this Agreement;

 

(iv)                              any such Loans acquired by an Affiliated Lender may, with the consent of the Borrower, be contributed to the Borrower and exchanged for debt or equity securities that are otherwise permitted to be issued at such time (and such Loans or Commitments shall be retired and cancelled promptly); and

 

(v)                                 none of the Borrower, Holdings, any Subsidiary of Holdings or any Affiliated Lender shall be required to make any representation that it is not in possession of information which is not publicly available and/or material with respect to Holdings, the Borrower and their respective Subsidiaries or their respective securities for purposes of U.S. federal and state securities laws but each shall be required to identify itself as the Borrower, Holdings, a Subsidiary of Holdings or an Affiliate Lender, as applicable, in connection with any acquisition or disposition (whether by assignment or otherwise) of any Loans or Commitments or interests therein hereunder to the extent such Loans or Commitments relate to a revolving credit facility or a term loan facility that amortizes at a rate in excess of 1% per annum.

 

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For avoidance of doubt, the foregoing limitations shall not be applicable to Affiliated Institutional Lenders.

 

Notwithstanding anything to the contrary herein, collectively and in the aggregate, the Affiliated Institutional Lenders may not account for more than 49.9% of the loans of consenting Lenders included in determining whether Required Lenders have consented to any amendment, modification, waiver or other action with respect to any of the terms or, or otherwise have acted on any manner with respect to, any Credit Document.

 

13.7                        Replacements of Lenders Under Certain Circumstances.

 

(a)                                 The Borrower shall be permitted (x) to replace any Lender or (y) terminate the Commitment of such Lender or Letter of Credit Issuer, as the case may be, and (1) in the case of a Lender (other than the Letter of Credit Issuer), repay all Obligations of the Borrower due and owing to such Lender relating to the Loans and participations held by such Lender as of such termination date and (2) in the case of the Letter of Credit Issuer, repay all Obligations of the Borrower owing to such Letter of Credit Issuer relating to the Loans and participations held by the Letter of Credit Issuer as of such termination date and cancel or backstop on terms satisfactory to such Letter of Credit Issuer any Letters of Credit issued by it that (a) requests reimbursement for amounts owing pursuant to Sections 2.10, 3.5 or 5.4, (b) is affected in the manner described in Section 2.10(a)(iii) and as a result thereof any of the actions described in such Section is required to be taken, or (c) becomes a Defaulting Lender, with a replacement bank or other financial institution; provided that (i) such replacement does not conflict with any Requirements of Law, (ii) no Event of Default under Section 11.1(a) or Section 11.1(e) shall have occurred and be continuing at the time of such replacement, (iii) the Borrower shall repay (or the replacement bank or financial institution shall purchase, at par) all Loans and other amounts pursuant to Sections 2.10, 2.11, 3.5 or 5.4, as the case may be, owing to such replaced Lender prior to the date of replacement, (iv) the replacement bank or financial institution, if not already a Lender, an Affiliate of a Lender, an Affiliated Lender (which shall be subject in all cases to Section 13.6(h)) or Approved Fund, and the terms and conditions of such replacement, shall be reasonably satisfactory to the Administrative Agent, (v) the replacement bank or financial institution, if not already a Lender shall be subject to the provisions of Section 13.6(b), (vi) the replaced Lender shall be obligated to make such replacement in accordance with the provisions of Section 13.6 (provided that unless otherwise agreed the Borrower shall be obligated to pay the registration and processing fee referred to therein) and (vii) any such replacement shall not be deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.

 

(b)                                 If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a proposed amendment, waiver, discharge or termination that pursuant to the terms of Section 13.1 requires the consent of either (i) all of the Lenders directly and adversely affected or (ii) all of the Lenders and, in each case, with respect to which the Required Lenders (or at least 50.1% of the directly and adversely affected Lenders) shall have granted their consent, then the Borrower shall have the right (unless such Non-Consenting Lender grants such consent) to (x) replace such Non-Consenting Lender by requiring such Non-Consenting Lender to assign its Loans, and its Commitments hereunder to one or more assignees reasonably acceptable to the Administrative Agent (to the extent such consent would be required under Section 13.6) or (y) terminate the Commitment of such Lender and repay all Obligations of the Borrower due and owing to such Lender relating to the Loans and participations held by such Lender as of such termination date; provided that (a) all Obligations hereunder of the Borrower owing to such Non-Consenting

 

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Lender being replaced shall be paid in full to such Non-Consenting Lender concurrently with such assignment, including any amounts that such Lender may be owed pursuant to Section 2.11, (b) the replacement Lender shall purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal amount thereof plus accrued and unpaid interest thereon and (c) the replacement Lender shall have consented to the applicable amendment, waiver, discharge or termination.  In connection with any such assignment, the Borrower, the Administrative Agent, such Non-Consenting Lender and the replacement Lender shall otherwise comply with Section 13.6; provided that any Non-Consenting Lender shall be deemed to have consented to the assignment and delegation of its interests, rights and obligations if it does not execute and deliver an Assignment and Acceptance to the Administrative Agent within one Business Day after having received a request therefor.

 

13.8                        Adjustments; Set-off.

 

(a)                                 Except as contemplated in Section 13.6 or elsewhere herein, if any Lender (a “Benefited Lender”) shall at any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 11.1(e)  or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such other Lender’s Loans, or interest thereon, such Benefited Lender shall purchase for cash from the other Lenders a participating interest in such portion of each such other Lender’s Loan, or shall provide such other Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.

 

(b)                                 After the occurrence and during the continuance of an Event of Default, in addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Credit Parties, any such notice being expressly waived by the Credit Parties to the extent permitted by applicable law, upon any amount becoming due and payable by the Credit Parties hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final) (other than payroll, trust, tax and fiduciary accounts), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the Credit Parties.  Each Lender agrees promptly to notify the Credit Parties and the Administrative Agent after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

13.9                        Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

 

13.10                 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

13.11                 Integration. This Agreement and the other Credit Documents represent the agreement of Holdings, the Borrower, the Collateral Agent, the Administrative Agent and the Lenders with respect to

 

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the subject matter hereof, and there are no promises, undertakings, representations or warranties by Holdings, the Borrower, the Administrative Agent, the Collateral Agent nor any Lender relative to subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents.

 

13.12                 GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

13.13                 Submission to Jurisdiction; Waivers. Each party hereto irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Credit Documents to which it is a party to the exclusive general jurisdiction of the courts of the State of New York or the courts of the United States of America for the Southern District of New York, in each case sitting in New York City in the Borough of Manhattan, and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding shall be brought in such courts and waives (to the extent permitted by applicable law) any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same or to commence or support any such action or proceeding in any other courts;

 

(c)                                  agrees that service of process in any such action or proceeding shall be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address set forth on Schedule 13.2 at such other address of which the Administrative Agent shall have been notified pursuant to Section 13.2;

 

(d)                                 agrees that nothing herein shall affect the right of the Administrative Agent, any Lender or any other Secured Party to effect service of process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against Holdings, the Borrower or any other Credit Party in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 13.13 any special, exemplary, punitive or consequential damages; provided that nothing in this Section 13.13(e) shall limit the Credit Parties’ indemnification obligations set forth in Section 13.5.

 

Holdings and the Borrower hereby confirm that each Credit Party has irrevocably and unconditionally appointed the Borrower (or, if such entity ceases to be existing under the laws of the United States, any state or territory thereof or the District of Columbia, and each Credit Party does not appoint another Credit Party existing therein as such a substitute agent, CT Corporation System, 111 Eighth Avenue, 13th Floor, New York, New York 10011) as its agent for service of process in any suit, action or proceeding with respect to the Credit Documents.

 

13.14                 Acknowledgments. Each of Holdings and the Borrower hereby acknowledges that:

 

(a)                                 it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Credit Documents;

 

(b)                                 (i) the credit facilities provided for hereunder and any related arranging or other services

 

173

 

in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document) are an arm’s-length commercial transaction between the Borrower and the other Credit Parties, on the one hand, and the Administrative Agent, the Lenders and the other Agents on the other hand, and the Borrower and the other Credit Parties are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, each of the Administrative Agent and the other Agents, is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary for the Borrower, any other Credit Parties or any of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) neither the Administrative Agent nor any other Agent has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower or any other Credit Party with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Credit Document (irrespective of whether the Administrative Agent or other Agent has advised or is currently advising the Borrower, the other Credit Parties or their respective Affiliates on other matters) and neither the Administrative Agent or other Agent has any obligation to the Borrower, the other Credit Parties or their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; (iv) the Administrative Agent, each other Agent and each Affiliate of the foregoing may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and their Affiliates, and neither the Administrative Agent nor any other Agent has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship or otherwise; and (v) neither the Administrative Agent nor any other Agent has provided and none will provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Credit Document) and Holdings and the Borrower have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate.  Each of Holdings and the Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the Administrative Agent or any other Agent with respect to any breach or alleged breach of agency or fiduciary duty; and

 

(c)                                  no joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among Holdings and the Borrower, on the one hand, and any Agent or Lender, on the other hand.

 

13.15                 WAIVERS OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

13.16                 Confidentiality. The Administrative Agent, each other Agent and each Lender shall hold all non-public information furnished by or on behalf of Holdings or any of its Subsidiaries in connection with such Lender’s evaluation of whether to become a Lender hereunder or obtained by such Lender, the Administrative Agent or such other Agent pursuant to the requirements of this Agreement (“Confidential Information”) confidential in accordance with its customary procedure for handling confidential information of this nature and (in the case of a Lender that is a bank) in accordance with safe and sound banking practices and in any event may make disclosure (i) pursuant to the order of any court or administrative agency or in any judicial or administrative proceeding or as otherwise required by law or compulsory legal process, (ii) upon the request or demand of any regulatory authority having jurisdiction over such party, (iii) to its Affiliates and its and their respective directors, officers, employees,

 

174

 

accountants, attorneys, agents and other professional advisors (other than any portfolio company or other potential competitor of the Borrower); provided that, in the case of Affiliates, such Confidential Information is provided on a need to know basis and only to the extent directly related to providing the Loans hereunder and such Affiliates are informed of the confidential nature of the Confidential Information and any failure by any such Person to keep such information confidential shall be a breach of this Section 13.16), (iv) to the extent that such Confidential Information is independently developed by such Agent or Lender, so long as such Agent or Lender has not otherwise breached its confidentiality obligations hereunder and has not developed such Confidential Information based on information received from a third party to such Agent’s or Lender’s knowledge has breached confidentiality obligations owing to the Borrower, (v) to the extent that such information has become publicly available other than by reason of disclosure by such Agent or Lender or any of their respective Affiliates in violation of any confidentiality obligations owing to the Borrower or and of its Subsidiaries or Affiliates, (vi) to the extent that such information is received by such party from a third party that is not, to its knowledge, subject to confidentiality obligations to the Borrower or any of its Subsidiaries or Affiliates or (vii) in connection with the exercise of remedies hereunder; provided that unless specifically prohibited by applicable law or court order, in connection with any disclosure pursuant to clause (i) or (ii) above, each Lender, the Administrative Agent and each other Agent shall use commercially reasonable efforts to notify Holdings of any request made to such Lender, the Administrative Agent or such other Agent by any governmental, regulatory or self regulatory agency or representative thereof (other than any such request in connection with an examination of the financial condition of such Lender by such agency or other regulatory inquiry) for disclosure of any such non-public information prior to disclosure of such information; provided, further, that in no event shall any Lender, the Administrative Agent or any other Agent be obligated or required to return any materials furnished by Holdings or any Subsidiary.  Each Lender, the Administrative Agent and each other Agent agrees that it will not provide to prospective Transferees or to any pledgee referred to in Section 13.6 or to prospective direct or indirect contractual counterparties in swap agreements to be entered into in connection with Loans made hereunder any of the Confidential Information unless such Person is advised of and agrees to be bound by the provisions of this Section 13.16 or confidentiality provisions at least as restrictive as those set forth in this Section 13.16.  Notwithstanding the foregoing (i) Confidential Information shall not include, with respect to any Person, information available to it or its Affiliates on a non-confidential basis from a source other than Holdings or its Subsidiaries and (ii) the Administrative Agent shall not be responsible for compliance with this Section 13.16 by any other Agent or any Lender.

 

13.17                 Direct Website Communications. Each of Holdings and the Borrower may, at its option, provide to the Administrative Agent any information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to the Credit Documents, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (A) relates to a request for a new, or a conversion of an existing, borrowing or other extension of credit (including any election of an interest rate or interest period relating thereto), (B) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (C) provides notice of any default or event of default under this Agreement or (D) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format reasonably acceptable to the Administrative Agent to the Administrative Agent at an email address provided by the Administrative Agent from time to time; provided that, (i) upon written request by the Administrative Agent, Holdings or the Borrower shall deliver paper copies of such documents to the Administrative Agent for further distribution to each Lender until a written request to cease delivering paper copies is given by the Administrative Agent and (ii) Holdings or the Borrower shall notify (which may be by facsimile or

 

175

 

electronic mail) the Administrative Agent of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such documents from the Administrative Agent and maintaining its copies of such documents.  Nothing in this Section 13.17 shall prejudice the right of Holdings, the Borrower, the Administrative Agent, any other Agent or any Lender to give any notice or other communication pursuant to any Credit Document in any other manner specified in such Credit Document.

 

The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of the Credit Documents.  Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Credit Documents.  Each Lender agrees (A) to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and (B) that the foregoing notice may be sent to such e-mail address.

 

(a)                                 Each of Holdings and the Borrower further agrees that any Agent may make the Communications available to the Lenders by posting the Communications on IntraLinks or a substantially similar electronic transmission system (the “Platform”), so long as the access to such Platform (i) is limited to the Agents, the Lenders and Transferees or prospective Transferees and (ii) remains subject to the confidentiality requirements set forth in Section 13.16.

 

(b)                                 THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.  THE AGENT PARTIES DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF ANY MATERIALS OR INFORMATION PROVIDED BY THE CREDIT PARTIES (THE “BORROWER MATERIALS”) OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  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 BORROWER MATERIALS OR THE PLATFORM.  In no event shall any Agent or any of its Related Parties (each an “Agent Party”) have any liability to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or any Agent’s transmission of Borrower Materials through the internet, except to the extent the liability of any Agent resulted from such Agent’s (or any of its Related Parties’ (other than any trustee or advisor)) gross negligence, bad faith or willful misconduct or material breach of the Credit Documents as determined in the final non-appealable judgment of a court of competent jurisdiction.

 

(c)                                  Each of Holdings and the Borrower and each Lender acknowledge that certain of the Lenders may be “public-side” Lenders (Lenders that do not wish to receive material non-public information with respect to Holdings, the Borrower, the Subsidiaries or their securities) and, if documents or notices required to be delivered pursuant to the Credit Documents or otherwise are being distributed through the Platform, any document or notice that Holdings or the Borrower has indicated contains only publicly available information with respect to Holdings or the Borrower may be posted on that portion of the Platform designated for such public-side Lenders.  If Holdings or the Borrower has not indicated whether a document or notice delivered contains only publicly available information, the Administrative Agent shall post such document or notice solely on that portion of the Platform designated for Lenders 

 

176

 

who wish to receive material nonpublic information with respect to Holdings, the Borrower, the Subsidiaries and their securities.  Notwithstanding the foregoing, each of Holdings and the Borrower shall use commercially reasonable efforts to indicate whether any document or notice contains only publicly available information.

 

13.18                 USA PATRIOT Act. Each Lender hereby notifies each Credit Party that, pursuant to the requirements of the USA PATRIOT Act (Title III of Pub.  L. 107-56 (signed into law October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies each Credit Party, which information includes the name and address of each Credit Party and other information that will allow such Lender to identify each Credit Party in accordance with the PATRIOT Act.

 

13.19                 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Credit Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given.  The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or the Lenders hereunder or under the other Credit Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent from the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing against such loss.  If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under applicable law).

 

13.20                 Payments Set Aside. To the extent that any payment by or on behalf of Holdings or the Borrower is made to any Agent or any Lender, or any Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by such Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by any Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the applicable Overnight Rate from time to time in effect.

 

13.21                 Euro. If at any time that a Loan denominated in an Alternative Currency is outstanding and the relevant Alternative Currency is fully replaced by the Euro as the lawful currency of the country that issued such Alternative Currency (the “Issuing Country”) so that all payments are to be made in the Issuing Country in Euro and not in the Alternative Currency previously the lawful currency of such country, then such Loan  denominated in such Alternative Currency shall be automatically converted into a Loan denominated in Euro in a principal amount equal to the amount of Euro into which the principal amount of such Alternative Currency denominated Loan would be converted pursuant to law and thereafter no further Loans will be available in such Alternative Currency.

 

177

 

13.22                 Special Provisions Relating to Currencies Other Than Dollars. All funds to be made available to the Administrative Agent or any Letter of Credit Issuer, as applicable, pursuant to this Agreement in any currency other than Dollars shall be made available to Administrative Agent or such Letter of Credit Issuer, as applicable, in immediately available, freely transferable, cleared funds to such account with such bank in such principal financial center as the Administrative Agent or such Letter of Credit Issuer, as applicable, shall from time to time nominate for this purpose.  In relation to the payment of any amount denominated in any currency other than Dollars, neither the Administrative Agent nor any Letter of Credit Issuer shall be liable to Borrower or any of the Lenders for any delay, or the consequences of any delay, in the crediting to any account of any amount required by this Agreement to be paid by the Administrative Agent or such Letter of Credit Issuer if the Administrative Agent or such Letter of Credit Issuer shall have taken all relevant and necessary steps to achieve, on the date required by this Agreement, the payment of such amount in immediately available, freely transferable, cleared funds (in the relevant currency) to the account with the bank in the principal financial center which the Borrower or, as the case may be, any Lender shall have specified for such purpose.  As used in this Section 13.22, “all relevant and necessary steps” means all such steps as may be prescribed from time to time by the regulations or operating procedures of such clearing or settlement system as the Administrative Agent or applicable Letter of Credit Issuer may from time to time determine for the purpose of clearing or settling payments of such currency.  Furthermore, and without limiting the foregoing, neither the Administrative Agent nor any Letter of Credit Issuer shall be liable to the Borrower or any of the Lenders with respect to the foregoing matters in the absence of its gross negligence or willful misconduct (as determined in the final non-appealable judgment of a court of competent jurisdiction).

 

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

 

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

 

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

 

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

 

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

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

178

 

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
PRA HEALTH SCIENCES, INC.,
    
	
 
    	
as Holdings
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J. Bonello
    
	
 
    	
 
    	
Name: Michael J. Bonello
    
	
 
    	
 
    	
Title: Senior Vice President, Accounting, 
    
	
 
    	
 
    	
Corporate Controller and Assistant 
    
	
 
    	
 
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PHARMACEUTICAL RESEARCH 
    
	
 
    	
ASSOCIATES, INC.,
    
	
 
    	
as the Borrower
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J. Bonello
    
	
 
    	
 
    	
Name: Michael J. Bonello
    
	
 
    	
 
    	
Title: Senior Vice President of Finance
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
WELLS FARGO BANK, NATIONAL
   ASSOCIATION,
    
	
 
    	
as Administrative Agent, Collateral Agent,   Letter of
   Credit Issuer, Swingline Lender and a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christine Gardiner
    
	
 
    	
 
    	
Name: Christine Gardiner
    
	
 
    	
 
    	
Title: Vice President
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
Citizens Bank, N.A.,
    
	
 
    	
as Lender and Letter of Credit Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher J. DeLauro
    
	
 
    	
 
    	
Name: Christopher J. DeLauro
    
	
 
    	
 
    	
Title: Vice President
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
PNC Bank, National Association,
    
	
 
    	
as Lender and Letter of Credit Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dawn M. Kondrat
    
	
 
    	
 
    	
Name: Dawn M. Kondrat
    
	
 
    	
 
    	
Title:    SVP, Credit Products Specialist
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
SunTrust Bank,
    
	
 
    	
as Lender and Letter of Credit Issuer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Bass
    
	
 
    	
 
    	
Name: Katherine Bass
    
	
 
    	
 
    	
Title: Director
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Teuta Ghilaga
    
	
 
    	
 
    	
Name: Teuta Ghilaga
    
	
 
    	
 
    	
Title: Director
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
TD Bank N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Levi
    
	
 
    	
 
    	
Name: Steve Levi
    
	
 
    	
 
    	
Title: Senior Vice President
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
FIFTH THIRD BANK,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tamara M. Dowd
    
	
 
    	
 
    	
Name: Tamara M. Dowd
    
	
 
    	
 
    	
Title: Vice President
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
Sumitomo Mitsui Banking Corporation,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David W. Kee
    
	
 
    	
 
    	
Name: David W. Kee
    
	
 
    	
 
    	
Title: Managing Director
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
KeyBank National Association,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas Gardner
    
	
 
    	
 
    	
Name: Douglas Gardner
    
	
 
    	
 
    	
Title: Vice President
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
HEALTHCARE FINANCIAL SOLUTIONS, LLC,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey A. Schaal
    
	
 
    	
 
    	
Name: Jeffrey A. Schaal
    
	
 
    	
 
    	
Title: Duly Authorized Signatory
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
Credit Suisse AG, Cayman Islands Branch
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bill O’Daly
    
	
 
    	
 
    	
Name: Bill O’Daly
    
	
 
    	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ D. Andrew Maletta
    
	
 
    	
 
    	
Name: D. Andrew Maletta
    
	
 
    	
 
    	
Title: Authorized Signatory
    

 

Signature Page to PRA Credit Agreement

 

 

	
 
    	
DEUTSCHE BANK AG NEW YORK BRANCH,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Cucchiara
    
	
 
    	
 
    	
Name: Peter Cucchiara
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcus Tarkington
    
	
 
    	
 
    	
Name: Marcus Tarkington
    
	
 
    	
 
    	
Title: Director
    

 

Signature Page to PRA Credit Agreement

 

 

SCHEDULE 1.1(b)

TO

CREDIT AGREEMENT

 

Mortgaged Properties

 

None.

 

 

SCHEDULE 1.1(c)

TO

CREDIT AGREEMENT

 

Commitments of Lenders

 

On file with the Administrative Agent.

 

 

SCHEDULE 1.1(d)

TO

CREDIT AGREEMENT

 

Hedge Banks

 

Credit Suisse International

One Cabot Square

London E14 4QJ

 

 

SCHEDULE 8.13

TO

CREDIT AGREEMENT

 

Subsidiaries

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
PRA Holdings, Inc.
    	
 
    	
PRA Health Sciences, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
PRA International
    	
 
    	
PRA Holdings, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
PRA Sub, Inc.
    	
 
    	
PRA International
    	
 
    	
100
    	
 
    	
Delaware
    
	
PRA International Operations, Inc.
    	
 
    	
PRA Sub, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
PRA Health Holdco, Inc.
    	
 
    	
PRA Health Sciences, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
Pharmaceutical Research Associates, Inc.
    	
 
    	
PRA International Operations, Inc.
    	
 
    	
100
    	
 
    	
Virginia
    
	
Nextrials, Inc.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
California
    
	
PRA Early Development Research, Inc.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
CRI NewCo, Inc.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
CRI Worldwide, LLC
    	
 
    	
CRI NewCo, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
Lifetree Clinical Research, LC
    	
 
    	
CRI Worldwide, LLC
    	
 
    	
100
    	
 
    	
Utah
    
	
CRI International, LLC
    	
 
    	
CRI Worldwide, LLC
    	
 
    	
100
    	
 
    	
New Jersey
    
	
ClinStar LLC
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
California
    
	
Pharmaceutical Research Associates Ukraine, LLC
    	
 
    	
ClinStar LLC
    	
 
    	
100
    	
 
    	
Ukraine
    
	
Pharmaceutical Research Associates Eastern Europe, LLC
    	
 
    	
ClinStar LLC
    	
 
    	
100
    	
 
    	
California
    
	
Pharmaceutical Research Associates Baltics OÜ
    	
 
    	
Pharmaceutical Research Associates Eastern Europe, LLC
    	
 
    	
100
    	
 
    	
Estonia
    
	
Pharmaceutical Research Associates CIS, LLC
    	
 
    	
Pharmaceutical Research Associates Eastern Europe, LLC
    	
 
    	
100
    	
 
    	
California
    
	
ZAO IMP Logistics
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Russia
    
	
FLLC IMP-Logistics Bel
    	
 
    	
ZAO IMP Logistics
    	
 
    	
100
    	
 
    	
Belarus
    
	
IMP-Logistics Ukraine, LLC
    	
 
    	
ZAO IMP Logistics
    	
 
    	
100
    	
 
    	
Ukraine
    
	
Sunset Hills LLC
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
International Medical Technical Consultants, LLC
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
Pharmaceutical Research Associates CV
    	
 
    	
Sunset Hills LLC / International Medical Technical Consultants,   LLC
    	
 
    	
1 / 99
    	
 
    	
Netherlands
    
	
PRA International Operations BV
    	
 
    	
International Medical Technical Consultants, LLC
    	
 
    	
100
    	
 
    	
Netherlands
    
	
3065613 Nova Scotia Company
    	
 
    	
PRA International Operations BV
    	
 
    	
100
    	
 
    	
Nova Scotia
    
	
Pharmaceutical Research Associates Inc.
    	
 
    	
3065613 Nova Scotia Company
    	
 
    	
100
    	
 
    	
Canada
    
	
PRA Pharmaceutical SA (Pty) Ltd.
    	
 
    	
Pharmaceutical Research Associates Inc.
    	
 
    	
100
    	
 
    	
South Africa
    
	
Pharmaceutical Research Associates Ltda.
    	
 
    	
Pharmaceutical Research Associates Inc. / 306513 Nova Scotia   Company
    	
 
    	
99.9998 / 0.0002
    	
 
    	
Brazil
    
	
Pharmaceutical Research Associates Ltda. Suc. Argentina
    	
 
    	
Pharmaceutical Research Associates Ltda.
    	
 
    	
100
    	
 
    	
Argentina
    
	
Pharmaceutical Research Associates Pty Limited
    	
 
    	
Pharmaceutical Research Associates Inc.
    	
 
    	
100
    	
 
    	
Australia
    
	
PRA China (Shanghai) Co. Ltd.
    	
 
    	
PRA International Operations BV
    	
 
    	
100
    	
 
    	
China
    
	
Pharmaceutical Research Associates Romania S.R.L.
    	
 
    	
PRA International Operations BV / Pharmaceutical Research   Associates, Inc.
    	
 
    	
95 / 5
    	
 
    	
Romania
    
	
Pharmaceutical Research Associates D.O.O.
    	
 
    	
PRA International Operations BV
    	
 
    	
100
    	
 
    	
Serbia
    

 

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
PRA Clinical Research & Development Turkey AE
    	
 
    	
PRA International Operations BV / Pharm Research Associates (UK)   Ltd.
    	
 
    	
50 / 50
    	
 
    	
Turkey
    
	
Pharmaceutical Research Associates Metaholdings BV
    	
 
    	
PRA International Operations BV
    	
 
    	
100
    	
 
    	
Netherlands
    
	
Pharmaceutical Research Associates Holdings BV
    	
 
    	
Pharmaceutical Research Associates Metaholdings BV
    	
 
    	
100
    	
 
    	
Netherlands
    
	
Pharmaceutical Research Associates Group BV
    	
 
    	
Pharmaceutical Research Associates Holdings BV
    	
 
    	
100
    	
 
    	
Netherlands
    
	
Pharmaceutical Research Associates GmbH
    	
 
    	
Pharmaceutical Research Associates Group BV
    	
 
    	
100
    	
 
    	
Germany
    
	
Pharmaceutical Research Associates GmbH sede secondaria
    	
 
    	
Pharmaceutical Research Associates GmbH
    	
 
    	
100
    	
 
    	
Italy
    
	
Pharmacon Research GmbH
    	
 
    	
Pharmaceutical Research Associates GmbH
    	
 
    	
100
    	
 
    	
Germany
    
	
Pharmaceutical Research Associates SK s.r.o.
    	
 
    	
Pharmacon Research GmbH
    	
 
    	
100
    	
 
    	
Slovakia
    
	
Pharmaceutical Research Associates CZ s.r.o.
    	
 
    	
Pharmacon Research GmbH / Pharmaceutical Research Associates   Group BV
    	
 
    	
90 / 10
    	
 
    	
Czech Republic
    
	
Kinship Technologies Pvt. Ltd.
    	
 
    	
Pharmaceutical Research Associates Group BV / Pharm Research   Associates (UK) Ltd.
    	
 
    	
99 / 1
    	
 
    	
India
    
	
Pharm Research Associates (UK) Ltd.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
UK
    
	
Pharmaceutical Research Associates Bulgaria EOOD
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Bulgaria
    
	
Pharmaceutical Research Associates Chile SpA
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Chile
    
	
Pharm Research Associates d.o.o.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Croatia
    
	
Pharmaceutical Research Associates Denmark ApS
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Denmark
    
	
Pharmaceutical Research Associates Finland Oy
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Finland
    
	
Pharmaceutical Research Associates Georgia LLC
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Georgia
    
	
Pharmaceutical Research Associates Greece A.E.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Greece
    
	
PRA Health Sciences (Hong Kong) Limited
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Hong Kong
    
	
Pharmaceutical Research Associates Israel Ltd.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Israel
    
	
Pharmaceutical Research Associates Korea Limited
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
S. Korea
    
	
Pharmaceutical Research Associates New Zealand Ltd.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
New Zealand
    
	
Pharmaceutical Research Associates Sp. z.o.o.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Poland
    
	
Pharmaceutical Research Associates Taiwan, Inc.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Taiwan
    
	
PRA International Portugal Unipessoal, Lda.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Portugal
    
	
Pharm Research Associates Russia Ltd.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
UK
    
	
IMP Logistics UK Ltd.
    	
 
    	
Pharm Research Associated (UK) Ltd.
    	
 
    	
100
    	
 
    	
UK
    
	
Pharmaceutical Research Associates Singapore Pte. Ltd.
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Singapore
    
	
PRA Switzerland AG
    	
 
    	
Pharm Research Associates (UK) Ltd.
    	
 
    	
100
    	
 
    	
Switzerland
    

 

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
PRA International BV
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Netherlands
    
	
PRA International Sweden AB
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Sweden
    
	
Sterling Synergy Systems, Ltd.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
UK
    
	
Pharmaceutical Research Associates India Pvt. Ltd.
    	
 
    	
Sterling Synergy Systems, Ltd. / PRA International   Operations, Inc.
    	
 
    	
99.6 / 0.4
    	
 
    	
India
    
	
PRA Pharmaceutical India Pvt. Ltd.
    	
 
    	
Pharmaceutical Research Associates, Inc. / Pharm Research   Associates (UK) Ltd.
    	
 
    	
99.9 / 0.1
    	
 
    	
India
    
	
Pharmaceutical Research Associates SARL
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
France
    
	
Pharmaceutical Research Associates Espana, S.A.U.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Spain
    
	
Pharmaceutical Research Associates Mexico S. de R.L. de C.V.
    	
 
    	
Pharmaceutical Research Associates, Inc. / PRA   International Operations, Inc.
    	
 
    	
99 / 1
    	
 
    	
Mexico
    
	
Pharmaceutical Research Associates Peru Sociedad Anonima Cerrada   (aka PRA Peru SAC)
    	
 
    	
Pharmaceutical Research Associates, Inc. / Pharm Research   Associates (UK) Ltd.
    	
 
    	
99.993 / 0.007
    	
 
    	
Peru
    
	
Pharmaceutical Research Associates Italy S.r.l.
    	
 
    	
Pharmaceutical Research Associates, Inc. / Pharm Research   Associates (UK) Ltd.
    	
 
    	
99 / 1
    	
 
    	
Italy
    
	
Pharmaceutical Research Associates Belgium BVBA
    	
 
    	
Pharmaceutical Research Associates, Inc. / Pharm Research   Associates (UK) Ltd.
    	
 
    	
99.99 / 0.01
    	
 
    	
Belgium
    
	
Pharmaceutical Research Associates Hungary Research and   Development Ltd.
    	
 
    	
Pharmaceutical Research Associates, Inc. / Pharm Research   Associates (UK) Ltd.
    	
 
    	
96.67 / 3.33
    	
 
    	
Hungary
    
	
Pharmaceutical Research Associates Colombia S.A.S.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
100
    	
 
    	
Colombia
    
	
RPS Global Holdings, LLC
    	
 
    	
PRA Holdings, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
RPS Parent Holding LLC
    	
 
    	
RPS Global Holdings, LLC
    	
 
    	
100
    	
 
    	
Delaware
    
	
Roy RPS Holdings LLC
    	
 
    	
RPS Parent Holding LLC
    	
 
    	
100
    	
 
    	
Delaware
    
	
ReSearch Pharmaceutical Services, Inc.
    	
 
    	
Roy RPS Holdings LLC
    	
 
    	
100
    	
 
    	
Delaware
    
	
ReSearch Pharmaceutical Services, LLC
    	
 
    	
ReSearch Pharmaceutical Services, Inc.
    	
 
    	
100
    	
 
    	
Delaware
    
	
RPS Do Brasil Servicos De Pesquisa LTDA
    	
 
    	
ReSearch Pharmaceutical Services, LLC / Services De Recherche   Pharmaceutique Inc.
    	
 
    	
99.74 / 0.26
    	
 
    	
Brazil
    
	
Services De Recherche Pharmaceutique Inc.
    	
 
    	
ReSearch Pharmaceutical Services, Inc.
    	
 
    	
100
    	
 
    	
Canada
    
	
RPS Global S.A. (ex Citroner S.A.)
    	
 
    	
ReSearch Pharmaceutical Services, LLC
    	
 
    	
100
    	
 
    	
Uruguay
    
	
RPS Latin America S.A. (ex Delconfin S.A.)
    	
 
    	
ReSearch Pharmaceutical Services, LLC
    	
 
    	
100
    	
 
    	
Uruguay
    
	
RPS Chile Limitada
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99 / 1
    	
 
    	
Chile
    
	
RPS Peru S.A.C.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99 / 1
    	
 
    	
Peru
    
	
RPS Research S.A.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
97 / 3
    	
 
    	
Argentina
    
	
RPS Colombia LTDA.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
51.86 / 48.14
    	
 
    	
Colombia
    
	
Research Pharmaceutical Services Costa Rica, LTDA.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
90 / 10
    	
 
    	
Costa Rica
    
	
RPS Research Mexico, S. de R.L. de C.V.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99.97 / 0.03
    	
 
    	
Mexico
    
	
RPS Research Servicios, S. de R.L. de C.V.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99.97 / 0.03
    	
 
    	
Mexico
    
	
RPS Panama Inc.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99 / 1
    	
 
    	
Panama
    

 

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
RPS Guatemala, S.A.
    	
 
    	
RPS Latin America S.A. (ex Delconfin S.A.) / RPS Global S.A. (ex   Citroner S.A.)
    	
 
    	
99 / 1
    	
 
    	
Guatemala
    
	
Research Pharmaceutical Services Puerto Rico, Inc.
    	
 
    	
ReSearch Pharmaceutical Services, Inc.
    	
 
    	
100
    	
 
    	
Puerto Rico
    
	
RPS Bermuda, Ltd.
    	
 
    	
ReSearch Pharmaceutical Services, Inc.
    	
 
    	
100
    	
 
    	
Bermuda
    
	
ReSearch Pharmaceutical Services Netherlands C.V.
    	
 
    	
ReSearch Pharmaceutical Services, Inc. / RPS   Bermuda, Ltd.
    	
 
    	
99.9 / 0.1
    	
 
    	
Netherlands
    
	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands C.V.
    	
 
    	
100
    	
 
    	
Netherlands
    
	
A2PRA Corporation
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
49
    	
 
    	
Japan
    
	
RPS Research UK Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
UK
    
	
RPS Sweden AB
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Sweden
    
	
RPS Research Norway AS
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Norway
    
	
RPS Finland Oy
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Finland
    
	
RPS Bulgaria EOOD
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Bulgaria
    
	
Research Pharmaceutical Services Hrvatska d.o.o.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Croatia
    
	
RPS Research Israel Ltd. “(in liquidation)”
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Israel
    
	
RPS Denmark ApS
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Denmark
    
	
RPS Research Austria GmbH
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Austria
    
	
RPS Hungary Kft.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Hungary
    
	
RPS Research Italy S.r.l.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Italy
    
	
RPS Poland sp. z.o.o.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Poland
    
	
Research Pharmaceutical Services (Outsourcing Ireland) Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Ireland
    
	
RPS Research Switzerland GmbH
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Switzerland
    
	
RPS Slovakia s.r.o.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Slovakia
    
	
RPS Iceland ehf.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Iceland
    
	
RPS Estonia OU
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Estonia
    
	
Research Pharmaceutical Services d.o.o. Beograd-Stari grad
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Serbia
    
	
RPS Latvia SIA
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Latvia
    
	
UAB RPS Lithuania
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Lithuania
    

 

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
RPSP - Research Pharmaceutical Services Portugal, Unipessoal LDA
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Portugal
    
	
RPS Czech Republic s.r.o.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
90 / 10
    	
 
    	
Czech Republic
    
	
RPS Research Belgium BVBA
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99.99 / 0.01
    	
 
    	
Belgium
    
	
RPS Romania S.R.L.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
95 / 5
    	
 
    	
Romania
    
	
RPS Ukraine, LLC
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99 / 1
    	
 
    	
Ukraine
    
	
Limited Liability Company RPS Research
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99 / 1
    	
 
    	
Russia
    
	
RPS Klinik Araştırma Organizasyon Limited Şirketi
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99.97 / 0.03
    	
 
    	
Turkey
    
	
RPS Research India Private Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99.99 / 0.01
    	
 
    	
India
    
	
RPS Egypt (Limited Liability Company)
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Germany   GmbH
    	
 
    	
99 / 1
    	
 
    	
Egypt
    
	
RPS Pharmaceutical Hellas EPE
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / RPS Research   Germany GmbH
    	
 
    	
98.92 / 1.08
    	
 
    	
Greece
    
	
RPS Research Inc.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Korea
    
	
RPS Malaysia Sdn. Bhd.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Malaysia
    
	
RPS Research Philippines, Inc.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V. / Mary Rose V.   Pascual / Mary Elizabeth (Marybee) M. Belmonte / Mardomeo N.   Raymundo, Jr. / Marvin B. Ibarra / Harris Koffer / Samir Shah / SungIn   Hong
    	
 
    	
99.93 / 0.01 / 0.01 / 0.01 / 0.01 / 0.01 / 0.01 / 0.01
    	
 
    	
Philippines
    
	
RPS Research Singapore Pte. Ltd.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Singapore
    
	
RPS Taiwan Ltd.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Taiwan
    
	
RPS Research (Thailand) Co., Ltd.
    	
 
    	
ReSearch Pharmaceutical Services, Inc. / ReSearch   Pharmaceutical Services Netherlands B.V. / RPS Germany GmbH
    	
 
    	
99.98 / 0.01 / 0.01
    	
 
    	
Thailand
    
	
K.K. RPS Japan
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Japan
    
	
RPS Hong Kong Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Hong Kong
    
	
RPS Australia Pty Ltd
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Australia
    
	
RPS New Zealand Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
New Zealand
    
	
RPS Research South Africa Proprietary Limited
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
South Africa
    
	
RPS China Inc.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
British Virgin Islands
    
	
RPS Spain S.L.U.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Spain
    

 

 

	
Name
    	
 
    	
Owned By
    	
 
    	
Percent
   Ownership
    	
 
    	
Jurisdiction
   of
   Organization
    
	
RPS Research Iberica, S.L.U.
    	
 
    	
RPS Spain S.L.U.
    	
 
    	
100
    	
 
    	
Spain
    
	
Research Pharmaceutical Services France S.A.S.
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
France
    
	
RPS Research France S.A.S.
    	
 
    	
Research Pharmaceutical Services France S.A.S.
    	
 
    	
100
    	
 
    	
France
    
	
RPS Germany GmbH
    	
 
    	
ReSearch Pharmaceutical Services Netherlands B.V.
    	
 
    	
100
    	
 
    	
Germany
    
	
RPS Research Germany GmbH
    	
 
    	
RPS Germany GmbH
    	
 
    	
100
    	
 
    	
Germany
    
	
RPS (Beijing) Inc.
    	
 
    	
RPS China Inc.
    	
 
    	
100
    	
 
    	
China
    
	
RPS (Beijing) Inc., Shanghai Branch
    	
 
    	
RPS (Beijing) Inc.
    	
 
    	
100
    	
 
    	
China
    

 

 

SCHEDULE 9.14(d)

TO

CREDIT AGREEMENT

 

Post-Closing Items

 

1.              Within 5 Business Days after the Closing Date (or such later time as the Administrative Agent agrees), Holdings shall deliver to the Administrative Agent the Certificate of Incorporation, Certificate of Formation or other comparable organizational document of each Loan Party organized under the laws of the State of California, in each case certified as of a recent date by the Secretary of State of the State of California.

 

2.              Within 5 Business Days after the Closing Date (or such later time as the Administrative Agent agrees), Holdings shall deliver to the Administrative Agent the certificates representing securities of Nextrials, Inc., accompanied by instruments of transfer and undated stock powers endorsed in blank.

 

 

SCHEDULE 10.1

TO

CREDIT AGREEMENT

 

Closing Date Indebtedness

 

On file with the Administrative Agent.

 

 

SCHEDULE 10.2

TO

CREDIT AGREEMENT

 

Closing Date Liens

 

	
Type
    	
 
    	
Creditor
    	
 
    	
Debtor
    	
 
    	
Number
    	
 
    	
Date
    
	
Supplier
    	
 
    	
ePlus Group, Inc.
    	
 
    	
Pharmaceutical Research Associates, Inc.
    	
 
    	
07031670517
    	
 
    	
3/16/2007
    
	
Purchase money
    	
 
    	
Canon Financial Services
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2010 3408733
    	
 
    	
9/30/10
    
	
Purchase money
    	
 
    	
Canon Financial Services
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2010 3914946
    	
 
    	
11/08/10
    
	
Equipment lien
    	
 
    	
Canon Financial Services
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2011 2893389
    	
 
    	
7/27/11
    
	
Equipment lien
    	
 
    	
Canon Financial Services
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2011 4057934
    	
 
    	
10/20/11
    
	
Purchase money
    	
 
    	
Canon Financial Services
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2012 1703794
    	
 
    	
5/2/12
    
	
State tax lien
    	
 
    	
Pennsylvania Department of Revenue
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2569-910
    	
 
    	
3/8/2012
    
	
State tax lien
    	
 
    	
Pennsylvania Department of Revenue
    	
 
    	
Research Pharmaceutical Services, Inc.
    	
 
    	
2973-716
    	
 
    	
3/8/2012
    

 

 

SCHEDULE 10.5

TO

CREDIT AGREEMENT

 

Closing Date Investments

 

Investments in Subsidiaries listed on Schedule 8.13.

 

 

SCHEDULE 13.2

TO

CREDIT AGREEMENT

 

Notice Addresses

 

Pharmaceutical Research Associates, Inc.

4130 Park Lake Avenue, Suite 400

Raleigh, NC 27612

Attention:  Linda Baddour

Telephone No.:  919-786-8200

Facsimile No.:  919-786-8201

E-mail:  BaddourLinda@prahs.com

 

Wells Fargo Corporate Banking

301 S. College St., 14th Floor

Charlotte, NC 28202

Attention: Christine Gardiner

Telephone No.:  704-715-6441

Facsimile No.:  704-715-1438

E-mail:  Christine.M.Gardiner@wellsfargo.com

 

 

EXHIBIT A

 

FORM OF JOINDER AGREEMENT

 

JOINDER AGREEMENT, dated as of [            , 20  ] (this “Agreement”), by and among [NEW LOAN LENDERS] (each, a “New Term Loan Lender” and/or a “New Revolving Loan Lender”, as applicable), the Borrower (as defined below), and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.

 

RECITALS:

 

WHEREAS, reference is hereby made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent (capitalized terms used but not defined herein having the meaning provided in the Credit Agreement); and

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may establish Incremental Revolving Credit Commitments and/or New Term Loan Commitments by, among other things, entering into one or more Joinder Agreements with Incremental Revolving Loan Lenders and/or New Term Loan Lenders (each, a “New Loan Lender”), as applicable;

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

Each New Loan Lender party hereto hereby agrees to commit to provide its respective Incremental Revolving Credit Commitment (in the case of each New Loan Lender that is a New Revolving Loan Lender) and/or New Term Loan Commitment (in the case of each New Loan Lender that is a New Term Loan Lender), as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth below.

 

Each New Loan Lender (i) confirms that it has received a copy of the Credit Agreement and the other Credit Documents and the exhibits thereto, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Collateral Agent, any other New Loan Lender or any other Lender or Agent 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 Credit Agreement; (iii) appoints and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Credit Documents as are delegated to the Administrative Agent or the Collateral Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a New Term Loan Lender and/or Incremental Revolving Loan Lender, as the case may be.

 

A-1

 

Subject to Section 10, each New Loan Lender hereby agrees to make its respective Commitment on the following terms and conditions:(1)

 

1.                                      Applicable Margin.  The Applicable ABR Margin or Applicable LIBOR Margin, as applicable, for each Series [  ] New Term Loan shall mean, as of any date of determination, the applicable percentage per annum as set forth below.

 

	
Series [  ]   New Term Loans
    	
 
    
	
LIBOR Loans
    	
 
    	
ABR Loans
    	
 
    
	
[  ]%
    	
 
    	
[  ]%
    	
 
    

 

2.                                      Principal Payments.  The Borrower of the Series [  ] New Term Loans shall make principal payments on the Series [  ] New Term Loans in installments on the dates and in the amounts set forth below:

 

	
(A)
    	
 
    	
(B)
    	
 
    
	
 
    	
 
    	
Scheduled
    	
 
    
	
New Term Loan Payment
   Date
    	
 
    	
Repayment of Series [  ]
   New Term Loans
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    
	
[           ]
    	
 
    	
$
    	
            
    	
 
    

 

3.                                      Voluntary and Mandatory Prepayments.  Scheduled installments of principal of the Series [  ] New Term Loans set forth above shall be reduced in connection with any voluntary or mandatory prepayments of the Series [  ] New Term Loans in accordance with Sections 5.1 and 5.2 of the Credit Agreement respectively.

 

4.                                      Prepayment Fees.  The Borrower of the Series [  ] New Term Loans agree to pay to each New Term Loan Lender the following prepayment fees, if any:  [                 ].

 

[Insert other additional prepayment provisions with respect to Series [  ] New Term Loans]

 

(1)                                 Insert completed items 1-7 as applicable, with such modifications as may be agreed to by the parties hereto to the extent consistent with the Credit Agreement.

 

A-2

 

5.                                      Other Fees.  The Borrower agrees to pay each [New Term Loan Lender][Incremental Revolving Loan Lender] its pro rata share (determined based upon each [New Term Loan Lender’s][Incremental Revolving Loan Lender’s] share of the [New Term Loan Commitments][Incremental Revolving Credit Commitments]) an aggregate fee equal to [             ] on [            ,     ].

 

6.                                      Proposed Borrowing.  This Agreement represents a request by the Borrower to borrow [Series [    ] New Term Loans][Incremental Revolving Loans] from the [New Term Loan Lenders][Incremental Revolving Loan Lenders] as follows (the “Proposed Borrowing”):

 

(a)                                 Business Day of Proposed Borrowing:               ,

 

(b)                                 Amount of Proposed Borrowing:  $

 

(c)                                  Interest rate option:

 

(i)                                     ABR Loan(s)

 

(ii)                                  LIBOR Loans 
 with an initial Interest 
 Period of       month(s)

 

7.                                      [New Loan Lenders.  Each New Loan Lender acknowledges and agrees that upon its execution of this Agreement and the making of Incremental Revolving Loans and/or Series [   ] New Term Loans, as the case may be, that such New Loan Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Credit Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of a Lender thereunder.](2)

 

8.                                      Credit Agreement Governs.  Except as set forth in this Agreement, the New Revolving Loans and/or Series [   ] New Term Loans shall otherwise be subject to the provisions of the Credit Agreement and the other Credit Documents.

 

9.                                      Borrower Certifications.  By its execution of this Agreement, the undersigned officer of the Borrower, to the best of his or her knowledge, and the Borrower hereby certifies that no Event of Default (except in connection with an acquisition or investment, no Event of Default under Section 11.1 or Section 11.4 of the Credit Agreement) exists on the date hereof before or after giving effect to the New Term Loan Commitments and/or New Revolving Credit Commitments contemplated hereby.

 

10.                               Conditions to Effectiveness of this Agreement.  This Agreement, and the obligation of each New Loan Lender to make its respective Commitment and to fund its New Term Loans and/or Incremental Revolving Loans hereunder are subject to the satisfaction of the following conditions: [          ].(3)

 

(2)                                 Insert bracketed language if the lending institution is not already a Lender.

(3)                                 Insert applicable conditions required pursuant to Section 2.14 of the Credit Agreement and as otherwise required by the applicable New Loan Lenders.

 

A-3

 

11.                               Notice.  For purposes of the Credit Agreement, the initial notice address of each New Loan Lender shall be as set forth below its signature below.

 

12.                               Tax Forms.  For each relevant New Loan Lender, delivered herewith to the Administrative Agent are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such New Loan Lender may be required to deliver to the Administrative Agent pursuant to Section 5.4(e) of the Credit Agreement.

 

13.                               Recordation of the New Loans.  Upon execution and delivery hereof, the Administrative Agent will record the Series [   ] New Term Loans and/or Incremental Revolving Loans, as the case may be, made by each New Loan Lender in the Register.

 

14.                               Amendment, Modification and Waiver.  This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

 

15.                               Entire Agreement.  This Agreement, the Credit Agreement and the other Credit Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

16.                               GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

17.                               Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

18.                               Counterparts.  This Agreement may be executed in counterparts (including by facsimile or other electronic transmission), each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

 

A-4

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Joinder Agreement as of the date first set forth above.

 

	
 
    	
[NAME   OF NEW LOAN LENDER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Notice Address:
    
	
 
    	
Attention:
    
	
 
    	
Telephone:
    
	
 
    	
Facsimile:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PHARMACEUTICAL   RESEARCH ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-5

 

	
 
    	
Consented to by:
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and   Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-6

 

SCHEDULE A
 TO JOINDER AGREEMENT

 

	
Name of New Loan Lender
    	
 
    	
Type of Commitment
    	
 
    	
Commitment Amount
    	
 
    
	
[                  ]
    	
 
    	
[New Term Loan Commitment] 
   [Incremental Revolving Credit Commitment]
    	
 
    	
$
    	
 
    	
 
    
	
[                  ]
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
Total: 
    	
 
    	
$
    	
 
    	
 
    

 

A-7

 

EXHIBIT B

 

FORM OF GUARANTEE

 

[See Attached.]

 

B-1

 

EXHIBIT C

 

FORM OF PLEDGE AGREEMENT

 

[See Attached.]

 

C-1

 

EXHIBIT D

 

FORM OF SECURITY AGREEMENT

 

[See Attached.]

 

D-1

 

EXHIBIT E

 

FORM OF LETTER OF CREDIT REQUEST

 

	
No.                     (1)
    	
Dated                       (2)
    

 

To:                             Wells Fargo Bank, National Association, as Administrative Agent and as the Letter of Credit Issuer, under the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent, and

 

[      ], as Letter of Credit Issuer under the Credit Agreement

 

Ladies and Gentlemen:

 

The undersigned hereby requests that the Letter of Credit Issuer issue a Letter of Credit on                      (3) (the “Date of Issuance”) in the aggregate stated amount of the Dollar Equivalent of                       (4) in                 .(5)

 

For purposes of this Letter of Credit Request, unless otherwise defined, all capitalized terms used herein that are defined in the Credit Agreement shall have the respective meanings provided therein.

 

The beneficiary of the requested Letter of Credit will be                (6), and such Letter of Credit will be in support of                       (7) and will have a stated termination date of                  (8).

 

The undersigned hereby certifies that:

 

(a)  All representations and warranties made by any Credit Party contained in the Credit Agreement or in the other Credit Documents are true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Date of Issuance (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date) (provided that any such representation and warranty which is qualified by materiality, Material Adverse Effect or similar language are true and correct in all respects).

 

(1)  Letter of Credit Request Number.

(2)  Date of Letter of Credit Request.

(3)  Date of Issuance.

(4)  Aggregate initial stated amount of Letter of Credit.

(5)  Dollars, Euros or Alternative Currency.

(6)  Insert name and address of beneficiary.

(7)  Insert description of supported obligations and name of agreement to which it relates, if any.

(8)  Insert last date upon which drafts may be presented.

 

E-1

 

(b) No Default or Event of Default has occurred and is continuing as of the date hereof.

 

	
 
    	
[                         ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

E-2

 

EXHIBIT F

 

FORM OF JOINT CLOSING CERTIFICATE

 

CLOSING CERTIFICATE

 

OF [           ]

 

[   ], 2016

 

Reference is made to that certain Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc., a Delaware corporation (“Holdings”), Pharmaceutical Research Associates, Inc., a Virginia corporation (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.  Terms used but not defined herein shall have the meanings given to such terms in the Credit Agreement.

 

1.             The undersigned [      ], an Authorized Officer of each of the entities listed on Schedule I hereto (each, a “Credit Party”), solely in [his][her] capacity as an Authorized Officer of such Credit Party and not individually, hereby certifies that [      ] is a duly elected and qualified Authorized Officer of each Credit Party, and the signature set forth on the signature line for such officer below is such officer’s true and genuine signature, and such officer is duly authorized to execute and deliver on behalf of each Credit Party each Credit Document to which it is a party and any certificate or other document to be delivered by each Credit Party pursuant to each Credit Document.

 

2.             The undersigned [      ], an Authorized Officer of each Credit Party, solely in [his][her] capacity as an Authorized Officer of such Credit Party and not individually, hereby certifies as follows:

 

(a)           attached hereto as Exhibit A is a complete and correct copy of the resolutions duly adopted by the board of directors (or a duly authorized committee thereof) of such Credit Party on the date hereof authorizing (i) the execution, delivery and performance of each of the Credit Documents (and any agreements relating thereto) to which it is a party and (ii) the extensions of credit contemplated by the Credit Agreement; such resolutions have not in any way been amended, modified, revoked or rescinded and have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect; and such resolutions are the only corporate proceedings of such Credit Party now in force relating to or affecting the matters referred to therein;

 

(b)           attached hereto as Exhibit B is a true and complete copy of the certificate of incorporation, articles of organization, certificate of formation or other comparable organizational document, as applicable (including all amendments thereto as of the date hereof, if any) of such Credit Party (the “Charter Documents”) certified by the Secretary of State of the state of incorporation, organization or formation, as applicable, of such Credit Party (or analogues authority, in the relevant jurisdiction) as of a recent date, as in effect at all times from the date shown on the attached certificate to and including the date hereof;

 

(c)           attached hereto as Exhibit C is a true and complete copy of the bylaws, limited liability company operating agreement or other comparable organizational document, as applicable, of such Credit Party (the “Governing Documents”) as in effect at all times since the adoption thereof to and including the date hereof; and

 

1

 

(d)           set forth on Exhibit D hereto is a list of the now duly elected and qualified officers of such Credit Party holding the offices indicated next to their respective names, and the signatures appearing opposite their respective names are the true and genuine signatures of such officers, and each of such officers is duly authorized to execute and deliver on behalf of such Credit Party each Credit Document to which it is a party and any certificate or other document to be delivered by such Credit Party pursuant to each Credit Document.

 

[Signature pages follow]

 

2

 

IN WITNESS WHEREOF, the undersigned have hereto set our names as of the date set forth above.

 

	
 
    	
 
    	
 
    
	
[   ]
    	
 
    	
[   ]
    

 

 

SCHEDULE I

 

Credit Parties

 

F-4

 

EXHIBIT A

 

Resolutions/Unanimous Written Consent

 

[see attached]

 

F-5

 

EXHIBIT B

 

Charter Documents

 

[see attached]

 

F-6

 

EXHIBIT C

 

Governing Documents

 

[see attached]

 

F-7

 

EXHIBIT D

 

Incumbency

 

	
Name
    	
 
    	
Office
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

F-8

 

EXHIBIT G

 

FORM OF ASSIGNMENT AND ACCEPTANCE

 

This Assignment and Acceptance (this “Assignment and Acceptance”) is dated as of the Effective Date set forth below and is entered into by and between [the][each](1) Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each](2) Assignee identified in item 2 below ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees](3) hereunder are several and not joint.](4)  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (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 Acceptance as if set forth herein in full.

 

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], 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][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] 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][the respective Assignors] in respect of the Commitments and Loans identified below [including, without limitation, Letters of Credit and Swingline Loans, as applicable)](5) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] 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, but not limited to, 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 by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Acceptance, without representation or warranty by [the][any] Assignor.  The benefit of each Security Document shall be maintained in favor of each Assignee.

 

(1)                                 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors, choose the second bracketed language.

(2)                                 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed language.

(3)                                 Select as appropriate.

(4)                                 Include bracketed language if there are either multiple Assignors or multiple Assignees.

(5)                                 Include only if assignment is of revolving credit commitments.

 

G-1

 

1.                                      Assignor[s]:                                        

 

                                        

 

2.                                      Assignee[s]:                                         

 

                                         

[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

 

3.                                      Borrower(s):                                         

 

4.                                      Administrative Agent: Wells Fargo Bank, National Association, as the Administrative Agent under the Credit Agreement

 

5.                                      Credit Agreement: Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent

 

6.                                      Assigned Interest:

 

	
 

Assignor[s](6)
    	
 
    	
Assignee[s](7)
    	
 
    	
Commitment/Loans 
   Assigned(8)
    	
 
    	
Aggregate Amount of 
   Commitment/ Loans
   for all Lenders(9)
    	
 
    	
Amount of 
   Commitment/ Loans
   Assigned
    	
 
    	
Percentage Assigned of
    Commitment/ Loans(10)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
[  ]
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
[  ]
    	
 
    	
$
    	
[  ]
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
[  ]
    	
 
    	
$
    	
[  ]
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
[  ]
    	
 
    	
$
    	
[  ]
    	
 
    	
 
    	
%
    

 

[7.                                  Trade Date:                                                 ](11)

 

Effective Date:                    , 20   [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

(6)                                 List each Assignor, as appropriate.

(7)                                 List each Assignee, as appropriate.

(8)                                 Fill in Class (and Series or Extension Series, as applicable) of Commitment/Loans being assigned.

(9)                                 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.  “All Lenders” refers to all Lenders under the applicable Class (and Series or Extension Series, as applicable).

(10)                          Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders under the applicable Class (and Series or Extension Series, as applicable).

(11)                          To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

G-2

 

The terms set forth in this Assignment and Acceptance are hereby agreed to:

 

	
 
    	
 
    	
ASSIGNOR
    
	
 
    	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ASSIGNEE
    
	
 
    	
 
    	
[NAME OF ASSIGNEE]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Consented to and Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as
    	
 
    	
 
    
	
Administrative Agent [and Letter of Credit Issuer]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[[                ],   as
    	
 
    	
 
    
	
 Letter of Credit Issuer]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[WELLS FARGO BANK, NATIONAL ASSOCIATION, as
    	
 
    	
 
    
	
 Swingline Lender](12)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    

 

(12)                          Reference to the applicable Letter of Credit Issuer and Swingline Lender required for an assignment of Revolving Credit Commitments.

 

G-3

 

	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

G-4

 

Consented to: PHARMACEUTICAL RESEARCH ASSOCIATES, INC.

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

G-5

 

ANNEX 1 TO ASSIGNMENT AND ACCEPTANCE

 

STANDARD TERMS AND CONDITIONS FOR

 

ASSIGNMENT AND ACCEPTANCE

 

1.                                      Representations and Warranties.

 

1.1.                            Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] 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 Acceptance 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 Credit Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Credit Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Credit Document.

 

1.2.                            Assignee.  [The][Each] 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 Acceptance and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 13.6(b)(i) [and][,] (b)(ii) [and (h)](13) and (v) of the Credit Agreement (subject to such consents, if any, as may be required under Section 13.6(b)(i) of the Credit Agreement), (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][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 9.1 of the Credit Agreement, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent, the Collateral 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 Assignment and Acceptance and to purchase [the][such] Assigned Interest, (vii) it [is][is not] an Affiliated Lender [and][,] (viii) it [is][is not] an Affiliated Institutional Lender [and (ix) as of the Effective Date, after giving effect to the assignment of the Assigned Interest pursuant to this Assignment and Acceptance, the aggregate principal amount of Term Loans held by Affiliated Lenders shall not exceed 30% of the aggregate principal amount of all Term Loans outstanding at such time](14) [and (x) as of the Effective Date, after giving effect to the assignment of the Assigned Interest pursuant to this Assignment and Acceptance, the aggregate principal amount of Revolving Credit Commitments held by Affiliated Institutional Lenders shall not exceed, in the aggregate, 30% of the aggregate principal amount of any Class of Revolving Credit Commitments outstanding at such time](15); and (b) agrees that (i) it will,

 

(13)  Include bracketed language if Assignee is an Affiliated Lender.

(14)  Include bracketed language if Assignee is an Affiliated Lender.

(15)  Include bracketed language if Assignee is an Affiliated Institutional Lenders.

 

G-6

 

independently and without reliance upon the Administrative Agent, the Collateral Agent, [the][any] Assignor or any other Lender Party, 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 Credit Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Documents are required to be performed by it as a Lender, including its obligations pursuant to Section 5.4 of the Credit Agreement.

 

2.                                      Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.

 

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

 

G-7

 

EXHIBIT H-1

 

FORM OF PROMISSORY NOTE

 

(TERM LOANS)

 

	
                 ,      
    

 

FOR VALUE RECEIVED, the undersigned, PHARMACEUTICAL RESEARCH ASSOCIATES, INC. (the “Borrower”), hereby promises to pay to                       or registered assigns (the “Lender”), in accordance with the provisions of the Credit Agreement (as hereinafter defined), the principal amount of (a) [                   ], or, if less, (b) the aggregate unpaid principal amount, if any, of the [Initial Term Loan][New Term Loans][Extended Term Loans][Replacement Term Loan] made by the Lender to the Borrower under that certain Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein being used herein as therein defined), among PRA Health Sciences, Inc. (“Holdings”), the Borrower, the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.

 

The Borrower promises to pay interest on the unpaid principal amount of the [Initial Term Loan][New Term Loans][Extended Term Loans][Replacement Term Loan] made by the Lender from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Credit Agreement.  All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately available funds at the Administrative Agent’s office or such other place as the Administrative Agent shall have specified.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement.

 

This promissory note (this “Promissory Note”) is one of the promissory notes referred to in Section 2.5(g) of the Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  The [Initial Term Loan][New Term Loans][Extended Term Loans][Replacement Term Loan] evidenced hereby is guaranteed and secured as provided therein and in the other Credit Documents.  Upon the occurrence and continuation of one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Promissory Note shall become, or may be declared to be, immediately due and payable all as provided in the Credit Agreement.  The [Initial Term Loan][New Term Loans][Extended Term Loans][Replacement Term Loan] made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business.  The Lender may also attach schedules to this Promissory Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.

 

The Borrower, for itself, its successors and assigns, hereby waives presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Promissory Note.

 

[signature page follows]

 

H-I-1

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

	
 
    	
PHARMACEUTICAL RESEARCH ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

H-I-2

 

LOANS AND PAYMENTS WITH RESPECT THERETO

 

	
Date
    	
 
    	
Type of Loan 
   Made
    	
 
    	
Amount of 
   Loan Made
    	
 
    	
End of Interest 
   Period
    	
 
    	
Amount of 
   Principal or 
   Interest Paid 
   This Date
    	
 
    	
Outstanding 
   Principal 
   Balance This 
   Date
    	
 
    	
Notation Made
    By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-I-3

 

EXHIBIT H-2

 

FORM OF PROMISSORY NOTE

 

(REVOLVING LOANS)

 

             ,      

 

FOR VALUE RECEIVED, the undersigned, PHARMACEUTICAL RESEARCH ASSOCIATES, INC. (the “Borrower”) hereby promises to pay to [                     ] or registered assigns (the “Lender”), in accordance with the provisions of the Credit Agreement (as hereinafter defined), the principal amount of (a) [                   ] or, if less, (b) the aggregate unpaid principal amount, if any, of the Revolving Loans made by the Lender to the Borrower under that certain Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein being used herein as therein defined), among PRA Health Sciences, Inc. (“Holdings”), the Borrower, the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.

 

The Borrower promises to pay interest on the unpaid principal amount of the Revolving Loans made by the Lender from the date of such Loans until such principal amount is paid in full, at such interest rates and at such times as provided in the Credit Agreement.  All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in immediately available funds at the Administrative Agent’s office or such other place as the Administrative Agent shall have specified.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement.

 

This promissory note (this “Promissory Note”) is one of the promissory notes referred to in Section 2.5(g) of the Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  The Revolving Loans evidenced hereby are guaranteed and secured as provided therein and in the other Credit Documents.  Upon the occurrence and continuation of one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Promissory Note shall become, or may be declared to be, immediately due and payable all as provided in the Credit Agreement.  The Revolving Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business.  The Lender may also attach schedules to this Promissory Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.

 

The Borrower, for itself, its successors and assigns, hereby waives presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Promissory Note.

 

[signature pages follow]

 

H-2-1

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

	
 
    	
PHARMACEUTICAL RESEARCH ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

H-2-2

 

LOANS AND PAYMENTS WITH RESPECT THERETO

 

	
Date
    	
 
    	
Type of Loan
   Made
    	
 
    	
Amount of
   Loan Made
    	
 
    	
End of Interest
   Period
    	
 
    	
Amount of
   Principal or
   Interest Paid
   This Date
    	
 
    	
Outstanding
   Principal
   Balance This
   Date
    	
 
    	
Notation Made
   By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-2-3

 

EXHIBIT I-1

 

FORM OF FIRST LIEN INTERCREDITOR AGREEMENT

 

[See Attached.]

 

I-1-1

 

EXHIBIT I-2

 

FORM OF SECOND LIEN INTERCREDITOR AGREEMENT

 

[See Attached.]

 

I-2-1

 

EXHIBIT J-1

 

FORM OF
 U.S. TAX COMPLIANCE CERTIFICATE
  (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA HEALTH SCIENCES, INC. (“Holdings”), PHARMACEUTICAL RESEARCH ASSOCIATES, INC. (the “Borrower”), the lending institutions from time to time parties hereto (each a “Lender” and, collectively, the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent, Letter of Credit Issuer and Swingline Lender.  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement.

 

Pursuant to the provisions of Section 5.4(e) 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 the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (v) no payments in connection with any Credit Document are effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E.  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 and the Administrative Agent in writing and (2) the undersigned shall have at all times furnished the Borrower 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 payment.

 

	
 
    	
 
    	
[Lender]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

J-1-1

 

EXHIBIT J-2

 

FORM OF
 U.S. TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA HEALTH SCIENCES, INC. (“Holdings”), PHARMACEUTICAL RESEARCH ASSOCIATES, INC. (the “Borrower”), the lending institutions from time to time parties hereto (each a “Lender” and, collectively, the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent, Letter of Credit Issuer and Swingline Lender.  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement.

 

Pursuant to provision of Section 5.4(e) 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 the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (v) no payments in connection with any Credit Document are effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E.  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 payment.

 

	
 
    	
 
    	
[Participant]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

J-2-1

 

EXHIBIT J-3

 

FORM OF
 U.S. TAX COMPLIANCE CERTIFICATE
 (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA HEALTH SCIENCES, INC. (“Holdings”), PHARMACEUTICAL RESEARCH ASSOCIATES, INC. (the “Borrower”), the lending institutions from time to time parties hereto (each a “Lender” and, collectively, the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION as Administrative Agent, Collateral Agent, Letter of Credit Issuer and Swingline Lender.  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement.

 

Pursuant to the provisions of Section 5.4(e) 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) neither the undersigned nor any of its direct or indirect partners/members is a bank 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 the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (vi) no payments in connection with any Credit Document are effectively connected with the undersigned’s or its direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Lender with Internal Revenue Service 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 Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E or (ii) an Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E from each of such partner/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 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 payment.

 

	
 
    	
 
    	
[Participant]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

J-3-1

 

EXHIBIT J-4

 

FORM OF
 U.S. TAX COMPLIANCE CERTIFICATE
  (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA HEALTH SCIENCES, INC. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lending institutions from time to time parties hereto (each a “Lender” and, collectively, the “Lenders”) and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and Letter of Credit Issuer and UBS LOAN FINANCE LLC, as Swingline Lender.  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement.

 

Pursuant to the provisions of Section 5.4(e) 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) neither the undersigned nor any of its direct or indirect partners/members is a bank 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 the Borrower within the meaning of Code Section 871(h)(3)(B), (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (vi) no payments in connection with any Credit Document are effectively connected with the undersigned’s or its direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Borrower with Internal Revenue Service 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 Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E or (ii) an Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E from each of such partner/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 and the Administrative Agent in writing and (2) the undersigned shall have at all times furnished the Borrower 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 payment.

 

[Signature Page Follows]

 

J-4-1

 

 

	
 
    	
 
    	
[Lender]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Address]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

J-4-2

 

EXHIBIT K

 

NOTICE OF BORROWING OR CONVERSION OR CONTINUATION

 

Date:                , 20

 

To:                             Wells Fargo Bank, National Association, as Administrative Agent

[Address]

[Address]

Email: [            ]

Facsimile No:  [          ]

 

Ladies and Gentlemen:

 

Reference is hereby made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.  Unless otherwise defined herein, capitalized terms used in this Notice of Conversion or Continuation shall have the respective meanings given to them in the Credit Agreement.

 

Pursuant to Section [2.3][2.6] of the Credit Agreement, the undersigned Borrower(s) hereby request(s) the following [borrowing][conversion or continuation] of certain Loans as specified below:

 

Class of Loans to be borrowed or converted or continued:

 

[Initial Term Loan]

[Revolving Loans]

[Series [    ] of New Term Loans]
 [Extended Term Loan]
 [Replacement Term Loan]
 [Swingline Loans]

 

(1)                                 convert $[            ] of ABR Loans in the name of the Borrower(s) into LIBOR Loans with an Interest Period duration of        (1) month(s) on          .(2)

 

2)                                     convert $[            ] of LIBOR Loans in the name of the Borrower(s) into ABR Loans on           .(3)

 

(1)                                 One, two, three or six (or if available to all the Lenders making such LIBOR Loans as determined by such Lenders in good faith based on prevailing market conditions, a twelve month or shorter period).

(2)                                 Date of conversion (must be a Business Day).

(3)                                 Date of conversion (must be a Business Day).

 

K-1

 

(3)                                 continue $[            ] of LIBOR Loans in the name of the Borrower(s) with an Interest Period duration of         (4) month(s) on          .(5)

 

[Signature Page Follows]

 

(4)                                 One, two, three or six (or if available to all the Lenders making such LIBOR Loans as determined by such Lenders in good faith based on prevailing market conditions, a twelve month or shorter period).

(5)                                 Date of continuation (must be a Business Day).

 

K-2

 

	
 
    	
PHARMACEUTICAL RESEARCH ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

K-3

 

EXHIBIT L

 

FORM OF BORROWER DESIGNATION AGREEMENT

 

[DATE]

 

To each of the Lenders party to the Credit Agreement (as defined below) and to Wells Fargo Bank, National Association as Administrative Agent for such Lenders

 

Ladies and Gentlemen:

 

Reference is made to the Credit Agreement, dated as of December [6], 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among PRA Health Sciences, Inc. (“Holdings”), Pharmaceutical Research Associates, Inc. (the “Borrower”), the lenders or other financial institutions or entities from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent.  Terms used but not defined herein shall have the meanings given to such terms in the Credit Agreement.

 

Please be advised that, pursuant to Section 9.11(b) of the Credit Agreement, the Company hereby designates its undersigned Subsidiary, [            ] (“Designated Borrower”), as an “Additional Borrower” under and for all purposes of the Credit Agreement.

 

The Designated Borrower, in consideration of each Lender’s agreement to extend credit to it under and on the terms and conditions set forth in the Credit Agreement, does hereby assume each of the obligations imposed upon an “Additional Borrower” and a “Borrower” under the Credit Agreement and agrees to be bound by the terms and conditions of the Credit Agreement.  In furtherance of the foregoing, the Designated Borrower hereby represents and warrants to each Lender as follows:

 

(a)                                 Upon execution and delivery of this Borrower Designation Agreement to the Administrative Agent, the Designated Borrower (x) will become a Borrower under the Credit Agreement and will thereafter (i) have all the rights and obligations of a Borrower thereunder and be bound by all the provisions thereof, as fully as if the Designated Borrower were one of the original parties thereto and (ii) be designated as a Credit Party under the Credit Documents (to the extent not already so designated) with all the rights and obligations of a Credit Party, as fully as if the Designated Borrower was an original Borrower under the Credit Agreement, and (y) will enter into collateral and guarantee documents customary for its jurisdiction of organization.

 

(c)                                  The Designated Borrower is a Wholly-Owned Subsidiary of the Borrower.

 

(d)                                 The Designated Borrower is a [           ] duly organized, validly existing and in good standing under the laws of [           ].

 

(e)                                  The Designated Borrower has the corporate or comparable power and authority to execute, deliver and perform the terms and provisions of this Designated Borrower Agreement and has taken all necessary corporate or comparable action to authorize the execution, delivery and performance by it of this Designated Borrower Agreement.  The Designated Borrower has duly executed and delivered this Designated Borrower Agreement, and this Designated Borrower Agreement constitutes its legal, valid and binding obligation enforceable in accordance with its terms, subject to applicable bankruptcy,

 

L-1

 

insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

 

(f)                                   Each of the representations and warranties applicable to the Designated Borrower set forth in each Credit Document is true and correct in all material respects as applied to the Designated Borrower as of the date hereof (provided that any such representation and warranty which is qualified by materiality, Material Adverse Effect or similar language is true and correct in all respects).

 

(g)                                  The Designated Borrower agrees that it is subject to the terms of the Credit Agreement, including Section 9.11(b) of the Credit Agreement and it shall have satisfied all such terms and provisions before it is deemed an “Additional Borrower”.

 

This Borrower Designation Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

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Very truly yours,
    
	
 
    	
 
    
	
 
    	
PHARMACEUTICAL RESEARCH   ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[THE DESIGNATED   BORROWER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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Accepted and Acknowledged by:
    	
 
    
	
 
    	
 
    
	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]