Document:

pacd_Ex10_1_CreditAgreement

		

			Exhibit 10.1

		

		

			 

		

		
			 
		

		
			$50,000,000
		

		
			REVOLVING CREDIT AGREEMENT
		

		
			dated as of
		

		
			February 7, 2020,
		

		
			among
		

		
			PACIFIC DRILLING S.A.,
		

		
			as Borrower,
		

		
			THE LENDERS PARTY HERETO
		

		
			and
		

		
			ANGELO, GORDON ENERGY SERVICER, LLC,
		

		
			as Administrative Agent
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			Table of Contents
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE I Definitions

					
1
				
	
					
						SECTION 1.01

					
					
						Defined Terms

					
1
				
	
					
						SECTION 1.02

					
					
						Terms Generally

					
53
				
	
					
						ARTICLE II The Credits

					
54
				
	
					
						SECTION 2.01

					
					
						Commitments

					
54
				
	
					
						SECTION 2.02

					
					
						Loans

					
54
				
	
					
						SECTION 2.03

					
					
						Borrowing Procedure

					
54
				
	
					
						SECTION 2.04

					
					
						Evidence of Debt; Repayment of Loans

					
54
				
	
					
						SECTION 2.05

					
					
						Fees

					
55
				
	
					
						SECTION 2.06

					
					
						Interest on Loans

					
56
				
	
					
						SECTION 2.07

					
					
						Default Interest

					
56
				
	
					
						SECTION 2.08

					
					
						Effect of Benchmark Transition Event

					
56
				
	
					
						SECTION 2.09

					
					
						Termination and Reduction of Commitments

					
58
				
	
					
						SECTION 2.10

					
					
						Optional Prepayment

					
59
				
	
					
						SECTION 2.11

					
					
						Mandatory Prepayments

					
59
				
	
					
						SECTION 2.12

					
					
						Increased Costs

					
60
				
	
					
						SECTION 2.13

					
					
						Pro Rata Treatment

					
61
				
	
					
						SECTION 2.14

					
					
						Sharing of Payments by Lenders

					
61
				
	
					
						SECTION 2.15

					
					
						Payments

					
62
				
	
					
						SECTION 2.16

					
					
						Taxes

					
63
				
	
					
						SECTION 2.17

					
					
						Mitigation Obligations; Replacement of Lenders

					
65
				
	
					
						SECTION 2.18

					
					
						Defaulting Lender

					
66
				
	
					
						SECTION 2.19

					
					
						Availability Termination Date

					
68
				
	
					
						ARTICLE III Representations and Warranties

					
68
				
	
					
						SECTION 3.01

					
					
						Organization; Powers

					
69
				
	
					
						SECTION 3.02

					
					
						Authorization

					
69
				
	
					
						SECTION 3.03

					
					
						Enforceability

					
69
				
	
					
						SECTION 3.04

					
					
						Governmental Approvals

					
69
				
	
					
						SECTION 3.05

					
					
						Financial Statements

					
69
				
	
					
						SECTION 3.06

					
					
						No Material Adverse Change

					
70
				
	
					
						SECTION 3.07

					
					
						Title to Properties; Possession Under Leases

					
70
				

		
			 
		

		
			
		

		

		 

		

			i

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 3.08

					
					
						Subsidiaries

					
70
				
	
					
						SECTION 3.09

					
					
						Litigation; Compliance with Laws

					
70
				
	
					
						SECTION 3.10

					
					
						Agreements

					
71
				
	
					
						SECTION 3.11

					
					
						Federal Reserve Regulations

					
71
				
	
					
						SECTION 3.12

					
					
						Investment Company Act

					
71
				
	
					
						SECTION 3.13

					
					
						Use of Proceeds

					
71
				
	
					
						SECTION 3.14

					
					
						Tax Returns

					
71
				
	
					
						SECTION 3.15

					
					
						Disclosure

					
72
				
	
					
						SECTION 3.16

					
					
						Employee Benefit Plans

					
72
				
	
					
						SECTION 3.17

					
					
						Environmental Matters

					
72
				
	
					
						SECTION 3.18

					
					
						Insurance

					
72
				
	
					
						SECTION 3.19

					
					
						Collateral Documents

					
73
				
	
					
						SECTION 3.20

					
					
						Location of Real Property, Leased Premises and Collateral Vessels

					
73
				
	
					
						SECTION 3.21

					
					
						Labor Matters

					
73
				
	
					
						SECTION 3.22

					
					
						Solvency

					
74
				
	
					
						SECTION 3.23

					
					
						Intellectual Property; Licenses, etc. 

					
74
				
	
					
						SECTION 3.24

					
					
						Sanctioned Persons; PATRIOT Act; FCPA

					
74
				
	
					
						ARTICLE IV Conditions of Lending

					
75
				
	
					
						SECTION 4.01

					
					
						All Credit Events

					
75
				
	
					
						SECTION 4.02

					
					
						First Credit Event

					
75
				
	
					
						ARTICLE V Affirmative Covenants

					
78
				
	
					
						SECTION 5.01

					
					
						Existence; Compliance with Laws; Businesses and Properties

					
78
				
	
					
						SECTION 5.02

					
					
						Insurance

					
79
				
	
					
						SECTION 5.03

					
					
						Obligations and Taxes

					
81
				
	
					
						SECTION 5.04

					
					
						Financial Statements, Reports, etc. 

					
81
				
	
					
						SECTION 5.05

					
					
						Notices

					
83
				
	
					
						SECTION 5.06

					
					
						Information Regarding Collateral

					
84
				
	
					
						SECTION 5.07

					
					
						Maintaining Records; Access to Properties and Inspections; Maintenance of Ratings

					
84
				
	
					
						SECTION 5.08

					
					
						Use of Proceeds

					
84
				
	
					
						SECTION 5.09

					
					
						Employee Benefits

					
84
				
	
					
						SECTION 5.10

					
					
						Compliance with Environmental Laws

					
85
				
	
					
						SECTION 5.11

					
					
						Preparation of Environmental Reports

					
85
				
	
					
						SECTION 5.12

					
					
						Further Assurances

					
85
				
	
					
						SECTION 5.13

					
					
						Designation of Restricted and Unrestricted Subsidiaries

					
86
				

		
			 
		

		
			
		

		

		 

		

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						ARTICLE VI Negative Covenants

					
87
				
	
					
						SECTION 6.01

					
					
						Limitation on Restricted Payments

					
87
				
	
					
						SECTION 6.02

					
					
						Limitation on Dividends and Other Payment Restrictions Affecting Restricted Subsidiaries

					
92
				
	
					
						SECTION 6.03

					
					
						Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock

					
94
				
	
					
						SECTION 6.04

					
					
						Limitation on Asset Sales

					
98
				
	
					
						SECTION 6.05

					
					
						Limitation on Transactions with Affiliates

					
100
				
	
					
						SECTION 6.06

					
					
						Limitation on Liens

					
101
				
	
					
						SECTION 6.07

					
					
						Business Activities

					
101
				
	
					
						SECTION 6.08

					
					
						Rights to Earnings from the Collateral Vessels

					
102
				
	
					
						SECTION 6.09

					
					
						Limitation on Certain Agreements

					
102
				
	
					
						SECTION 6.10

					
					
						Fiscal Year

					
102
				
	
					
						ARTICLE VII Events of Default

					
102
				
	
					
						SECTION 7.01

					
					
						Events of Default

					
102
				
	
					
						ARTICLE VIII Agency

					
105
				
	
					
						SECTION 8.01

					
					
						Appointment and Authority

					
105
				
	
					
						SECTION 8.02

					
					
						Rights as a Lender

					
106
				
	
					
						SECTION 8.03

					
					
						Exculpatory Provisions

					
106
				
	
					
						SECTION 8.04

					
					
						Reliance by Agents

					
107
				
	
					
						SECTION 8.05

					
					
						Delegation of Duties

					
107
				
	
					
						SECTION 8.06

					
					
						Resignation of Agents

					
107
				
	
					
						SECTION 8.07

					
					
						Non-Reliance on Agents and Other Lenders

					
108
				
	
					
						SECTION 8.08

					
					
						Administrative Agent May File Proofs of Claim

					
108
				
	
					
						SECTION 8.09

					
					
						Collateral and Guarantee Matters

					
109
				
	
					
						SECTION 8.10

					
					
						Security Agreement

					
110
				
	
					
						SECTION 8.11

					
					
						Certain ERISA Matters

					
110
				
	
					
						ARTICLE IX Miscellaneous

					
111
				
	
					
						SECTION 9.01

					
					
						Notices; Effectiveness; Electronic Communication

					
111
				
	
					
						SECTION 9.02

					
					
						Survival of Agreement

					
114
				
	
					
						SECTION 9.03

					
					
						Successors and Assigns

					
114
				
	
					
						SECTION 9.04

					
					
						Expenses; Indemnity; Damage Waiver

					
120
				
	
					
						SECTION 9.05

					
					
						Right of Setoff

					
121
				
	
					
						SECTION 9.06

					
					
						Governing Law; Jurisdiction; Etc. 

					
122
				
	
					
						SECTION 9.07

					
					
						Waivers; Amendment

					
123
				
	
					
						SECTION 9.08

					
					
						Interest Rate Limitation

					
124
				

		
			 
		

		
			
		

		

		 

		

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						SECTION 9.09

					
					
						WAIVER OF JURY TRIAL

					
124
				
	
					
						SECTION 9.10

					
					
						Severability

					
125
				
	
					
						SECTION 9.11

					
					
						Counterparts; Integration; Effectiveness; Electronic Execution

					
125
				
	
					
						SECTION 9.12

					
					
						Headings

					
125
				
	
					
						SECTION 9.13

					
					
						Treatment of Certain Information; Confidentiality

					
126
				
	
					
						SECTION 9.14

					
					
						USA PATRIOT Act Notice

					
126
				
	
					
						SECTION 9.15

					
					
						Lender Action

					
127
				
	
					
						SECTION 9.16

					
					
						Application of Proceeds

					
127
				
	
					
						SECTION 9.17

					
					
						Third Party Beneficiary

					
127
				
	
					
						SECTION 9.18

					
					
						Release of Collateral and Guarantees

					
127
				
	
					
						SECTION 9.19

					
					
						Acknowledgement and Consent to Bail-In of EEA Financial Institutions

					
128
				
	
					
						SECTION 9.20

					
					
						Recognition of the U.S. Special Resolution Regimes

					
129
				

		
			 
		

		
			
		

		

		 

		

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						SCHEDULES

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Schedule 1.01

					
					
						 - 

					
					
						Subsidiary Guarantors

				
	
					
						Schedule 1.01(L)

					
					
						 

					
					
						Liens Existing on the Closing Date

				
	
					
						Schedule 2.01

					
					
						 - 

					
					
						Lenders and Commitments

				
	
					
						Schedule 3.08(a)

					
					
						 - 

					
					
						Subsidiaries

				
	
					
						Schedule 3.08(b)

					
					
						 - 

					
					
						Unrestricted Subsidiaries

				
	
					
						Schedule 3.09

					
					
						 - 

					
					
						Litigation

				
	
					
						Schedule 3.17

					
					
						 - 

					
					
						Environmental Matters

				
	
					
						Schedule 3.18

					
					
						 - 

					
					
						Insurance

				
	
					
						Schedule 3.19(a)

					
					
						 - 

					
					
						UCC Filing Offices

				
	
					
						Schedule 3.20(a)

					
					
						 - 

					
					
						Owned Real Property

				
	
					
						Schedule 3.20(b)

					
					
						 - 

					
					
						Leased Real Property

				
	
					
						Schedule 3.20(c)

					
					
						 - 

					
					
						Collateral Vessels

				
	
					
						Schedule 3.23

					
					
						 - 

					
					
						IP Rights

				
	
					
						Schedule 4.02(a)

					
					
						 - 

					
					
						Local Counsel

				

		
			 
		

		
			 
		

			
					
						EXHIBITS

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Exhibit A

					
					
						 - 

					
					
						Form of Assignment and Assumption

				
	
					
						Exhibit B

					
					
						 - 

					
					
						Form of Borrowing Request

				
	
					
						Exhibit C

					
					
						 - 

					
					
						Form of Guarantee Agreement

				
	
					
						Exhibit D

					
					
						 - 

					
					
						Form of Note

				
	
					
						Exhibit E

					
					
						 - 

					
					
						Form of Certificate of Unrestricted Cash

				

		
			 
		

		
			 
		

		
			

		 

		

			v

		

		

			 

		

		

		
			REVOLVING CREDIT AGREEMENT dated as of February 7, 2020 (this “Agreement”), among PACIFIC DRILLING S.A., a public limited liability company (société anonyme) organized under the laws of the Grand Duchy of Luxembourg (the “Borrower”), the Lenders (as defined in Article I), and ANGELO, GORDON ENERGY SERVICER, LLC, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders.
		

		
			The Borrower has requested that the Lenders extend credit in the form of Loans at any time and from time to time prior to the Maturity Date, in an aggregate principal amount at any time outstanding not in excess of $50,000,000.  The proceeds of the Loans are to be used to finance working capital needs of the Borrower and the Subsidiaries, capital expenditures and to pay fees and expenses hereunder.
		

		
			The Lenders are willing to extend such credit to the Borrower on the terms and subject to the conditions set forth herein.  Accordingly, the parties hereto agree as follows:
		

		
			ARTICLE I
		

		
			Definitions
		

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

		
			“Acquired Debt” shall mean, with respect to any specified Person:
		

		
			(1) Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Restricted Subsidiary of such specified Person (regardless of the form of the applicable transaction by which such Person became a Subsidiary of the Borrower) or expressly assumed in connection with the acquisition of assets from any other such Person; and
		

		
			(2) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person;
		

		
			provided, in each such case, that such Indebtedness is not Incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person in connection with, or in contemplation of, the acquisition of assets.
		

		
			Acquired Debt will be deemed to be Incurred on the date the acquired Person becomes a Restricted Subsidiary of such Person or the date of the acquisition of assets from such Person, as applicable.
		

		
			“Active Service Period” shall have the meaning assigned to such term in the definition of “Qualified Services Contract”.
		

		
			“Additional First Lien Notes” shall mean First Lien Notes issued under the First Lien Indenture after the Issue Date and in compliance with Sections 2.14 and 4.09 thereof, it being understood that any First Lien Notes issued in replacement of any Initial First Lien Note shall not be an Additional First Lien Note.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			 “Additional Secured Debt Designation” shall mean the written agreement of the First Lien Representative of holders of any series of First Lien Debt or the Junior Lien Representative of holders of any series of Junior Lien Debt, as applicable, as set forth in the indenture, credit agreement or other agreement governing such series of First Lien Debt or series of Junior Lien Debt, for the benefit of (i) all holders of existing and future First Lien Debt, the Collateral Agent and each existing and future holder of First Liens, in the case of each additional series of First Lien Debt and (ii) all holders of each existing and future series of Junior Lien Debt, the applicable Junior Lien Collateral Agent and each existing and future holder of Junior Liens, in the case of each series of Junior Lien Debt:
		

		
			(1) in the case of any additional series of First Lien Debt, that all such First Lien Obligations will be and are secured equally and ratably by all First Liens at any time granted by the Borrower or any Guarantor to secure any Obligations in respect of such series of First Lien Debt, whether or not upon property otherwise constituting collateral for such series of First Lien Debt, and that all such First Liens will be enforceable by the Collateral Agent for the benefit of all holders of First Lien Obligations, equally and ratably;
		

		
			(2) in the case of any additional series of Junior Lien Debt, that all such Junior Lien Obligations will be and are secured equally and ratably by all Junior Liens at any time granted by the Borrower or any Guarantor to secure any Obligations in respect of such series of Junior Lien Debt, whether or not upon property otherwise constituting collateral for such series of Junior Lien Debt, and that all such Junior Liens will be enforceable by the Junior Lien Collateral Agent for the benefit of all holders of Junior Lien Obligations, equally and ratably;
		

		
			(3) that such First Lien Representative or Junior Lien Representative, as applicable, and the holders of Obligations in respect of such series of First Lien Debt or series of Junior Lien Debt, as applicable, are bound by the provisions of the Intercreditor Agreement, including the provisions relating to the ranking of First Liens and Junior Liens and the order of application of proceeds from the enforcement of First Liens and Junior Liens; and
		

		
			(4) appointing the Collateral Agent or the Junior Lien Collateral Agent, as applicable, and consenting to the terms of the Intercreditor Agreement and, in the case of any additional series of First Lien Debt, the Collateral Agency Agreement, and the performance by the Collateral Agent or the Junior Lien Collateral Agent, as applicable, of, and directing the Collateral Agent or the Junior Lien Collateral Agent, as applicable, to perform, its obligations under the Collateral Agency Agreement (if applicable) and any other applicable security documents and the Intercreditor Agreement, together with all such powers as are reasonably incidental thereto.
		

		
			“Adjusted LIBO Rate” shall mean, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1.0%) equal to the product of (a) the then effective LIBO Rate and (b) the Statutory Reserves.
		

		
			
		

		
			

		 

		

			2

		

		

			 

		

		

		
			“Administrative Agent” shall have the meaning assigned to such term in the introductory statement to this Agreement.
		

		
			“Administrative Agent Fee” shall have the meaning assigned to such term in the Administrative Agent Fee Letter.
		

		
			“Administrative Agent Fee Letter” shall mean that certain Fee Letter among the Borrower and the Administrative Agent dated as of February 7, 2020.
		

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

		
			“Affiliate” shall mean, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For the purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.  For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.
		

		
			“Affiliate Transaction” shall have the meaning assigned to such term in Section 6.05(a).
		

		
			“Agent Parties” shall have the meaning assigned to such term in Section 9.01(d).
		

		
			“Agents” shall have the meaning assigned to such term in Section 8.01.
		

		
			“Aggregate Revolving Credit Exposure” shall mean the aggregate amount of all of the Lenders’ Revolving Credit Exposures.
		

		
			“Agreement” shall have the meaning assigned to such term in the introductory statement hereto.
		

		
			“Alternate Base Rate” shall mean, for any day (or, if such day is not a Business Day, the immediately preceding Business Day), a rate per annum equal to the greatest of (a) 1.5%, (b) the Prime Rate in effect on such day and (c) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% per annum.  If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations or offers in accordance with the terms of the respective definitions thereof, the Alternate Base Rate shall be determined without regard to clause (a) or (b) of the preceding sentence, as applicable, until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening of business on the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, as the case may be.
		

		
			
		

		
			

		 

		

			3

		

		

			 

		

		

		
			“Applicable Commitment Percentage” shall mean, with respect to any Lender, the percentage of the Total Commitment represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Commitment Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments.
		

		
			“Applicable Percentage” shall mean, for any day, 7.50% per annum.
		

		
			“Approved Firm” shall mean any of (a) Clarkson Valuations Limited, (b) Fearnley Offshore Supply Pte. Ltd., (c) Bassoe Offshore, (d) any successor or affiliated company to those listed in (a) – (c), and (e) any other similarly qualified, independent ship broker that is not an Affiliate of the Borrower and is mutually agreed upon by the Borrower and the Administrative Agent.
		

		
			“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 or manages a Lender.
		

		
			“Asset Sale” shall mean:
		

		
			(1) any sale, transfer, lease, conveyance or other disposition, whether in a single transaction or a series of related transactions, of property or assets of the Borrower or any of the Restricted Subsidiaries, including any disposition by means of a merger, consolidation or similar transaction;
		

		
			(2) the issuance or sale of Equity Interests of any Restricted Subsidiary, other than directors’ qualifying shares and/or other Equity Interests that are required to be held by any Persons other than the Borrower or another Restricted Subsidiary under applicable law or regulation (including local content regulations or requirements), whether in a single transaction or a series of related transactions; and
		

		
			(3) an Involuntary Transfer.
		

		
			Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale under clause (1) or (2) above:
		

		
			(1) any single transaction or series of related transactions that involves assets having a Fair Market Value of less than $10.0 million (and the sale of such assets generates Net Proceeds of less than $10.0 million);
		

		
			(2) a transfer of Equity Interests or other assets between or among the Borrower and the Restricted Subsidiaries;
		

		
			(3) an issuance of Equity Interests by a Restricted Subsidiary to the Borrower or to another Restricted Subsidiary;
		

		
			
		

		
			

		 

		

			4

		

		

			 

		

		

		
			(4) the sale, transfer, lease or other disposition of products, services or any charter, pool agreement, drilling contract or lease of a Vessel and any related assets in the ordinary course of business and any sale or conveyance or other disposition of damaged, worn-out or obsolete assets in the ordinary course of business;
		

		
			(5) sales of assets to any customer purchased on behalf of or at the request of such customer in the ordinary course of business;
		

		
			(6) the sale or other disposition of cash or Cash Equivalents, hedging contracts or other financial instruments;
		

		
			(7) licenses and sublicenses by the Borrower or any of the Restricted Subsidiaries of software or intellectual property in the ordinary course of business;
		

		
			(8) a Restricted Payment that does not violate Section 6.01 or a Permitted Investment;
		

		
			(9) the creation or perfection of any Lien permitted under this Agreement, and any disposition of assets constituting Collateral resulting from foreclosure under any such Lien by the Collateral Agent, or any disposition of assets not constituting Collateral resulting from foreclosure under any such Lien;
		

		
			(10) any surrender or waiver of contract rights or the settlement, release, recovery on or surrender of contract, tort or other claims; and
		

		
			(11) any surrender, forfeiture or similar disposition of assets by PDVIII or PDSI in connection with the Zonda Arbitration.
		

		
			“Assignment and Assumption” shall mean an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 9.03), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent.
		

		
			“Assignments” shall mean, collectively, each Insurance Assignment and each Earnings Assignment.
		

		
			“Attributable Indebtedness”  in respect of a Sale and Lease-Back Transaction means, at the time any determination is to be made, the present value (discounted according to GAAP at the cost of indebtedness implied in the lease; provided that if such discount rate cannot be determined in accordance with GAAP, the present value shall be discounted at the interest rate borne by the First Lien Notes, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale and Lease-Back Transaction (including any period for which such lease has been extended); provided, however, that if such Sale and Lease-Back Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation.”
		

		
			
		

		
			

		 

		

			5

		

		

			 

		

		

		
			“Availability Period” shall mean the period from and including the Closing Date to but excluding the Maturity Date.
		

		
			“Availability Termination Date” shall mean the date determined pursuant to Section 2.19.
		

		
			“Bail-In Action” shall mean 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” shall mean, 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.
		

		
			“Bank Secured Parties” shall mean (a) the Lenders, (b) the Administrative Agent, (c) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document and (d) the successors and permitted assigns of each of the foregoing
		

		
			“Benchmark Replacement” shall mean the sum of:  (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the LIBO Rate for U.S. dollar-denominated syndicated credit facilities at such time and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than 1.5%, the Benchmark Replacement will be deemed to be 1.5% for the purposes of this Agreement.
		

		
			“Benchmark Replacement Adjustment” shall mean, with respect to any replacement of the LIBO Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBO Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBO Rate with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.
		

		
			“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner
		

		
			
		

		
			

		 

		

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			substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).
		

		
			“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the LIBO Rate:
		

		
			(a)        in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the LIBO Rate permanently or indefinitely ceases to provide the LIBO Rate; or
		

		
			(b)        in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.
		

		
			“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the LIBO Rate:
		

		
			(a)        a public statement or publication of information by or on behalf of the administrator of the LIBO Rate announcing that such administrator has ceased or will cease to provide the LIBO Rate, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the LIBO Rate;
		

		
			(b)        a public statement or publication of information by the regulatory supervisor for the administrator of the LIBO Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the LIBO Rate, a resolution authority with jurisdiction over the administrator for the LIBO Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the LIBO Rate, which states that the administrator of the LIBO Rate has ceased or will cease to provide the LIBO Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the LIBO Rate; or
		

		
			(c)        a public statement or publication of information by the regulatory supervisor for the administrator of the LIBO Rate or a Relevant Governmental Body announcing that the LIBO Rate is no longer representative.
		

		
			“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Majority
		

		
			
		

		
			

		 

		

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			Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Majority Lenders) and the Lenders.
		

		
			“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the LIBO Rate and solely to the extent that the LIBO Rate has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the LIBO Rate for all purposes hereunder in accordance with Section 2.08 and (b) ending at the time that a Benchmark Replacement has replaced the LIBO Rate for all purposes hereunder pursuant to Section 3.03.
		

		
			“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.  The terms “Beneficially Owns” and “Beneficially Owned” shall have corresponding meanings.
		

		
			“Beneficial Ownership Certification” shall mean a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
		

		
			“Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230.
		

		
			“Benefit Plan” shall mean any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
		

		
			“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).
		

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

		
			“Borrower” shall have the meaning assigned to such term in the introductory statement to this Agreement.
		

		
			“Borrower Materials” shall have the meaning assigned to such term in Section 9.01(d).
		

		
			“Borrowing Request” shall mean a request by the Borrower in accordance with the terms of Section 2.03 and substantially in the form of Exhibit B, or such other form as shall be approved by the Administrative Agent.
		

		
			“Builder Basket Start Date” shall have the meaning assigned to such term in Section 6.01(a).
		

		
			
		

		
			

		 

		

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			“Business Day” shall mean any day other than (a) a Saturday, Sunday or day on which banks in New York, New York, Houston, Texas or the Grand Duchy of Luxembourg are authorized or required by law to close; or (b) any day on which banks are not open for dealings in Dollar deposits in the London interbank market.
		

		
			“Calculation Principles” shall mean, with respect to calculations under this Agreement for any period, the following principles:
		

		
			(1) if the Borrower or any of the Restricted Subsidiaries has Incurred any Indebtedness since the beginning of such period that remains outstanding on the date a determination under this Agreement to which the Calculation Principles apply is to be made, or if the transaction giving rise to the need to make such determination is an Incurrence of Indebtedness, or both (in each case other than working capital borrowings under a revolving credit facility), Consolidated Cash Flow and Consolidated Interest Expense for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the first day of such period;
		

		
			(2) if the Borrower or any of the Restricted Subsidiaries has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the beginning of such period that is no longer outstanding on such date of determination, or if any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid and the related commitment has been terminated) on the date of the transaction giving rise to the occasion to apply the Calculation Principles, Consolidated Cash Flow and Consolidated Interest Expense for such period shall be calculated on a pro forma basis as if such repayment, repurchase, defeasance or discharge had occurred on the first day of such period;
		

		
			(3) if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have made any Asset Sale, Consolidated Cash Flow for such period shall be reduced by an amount equal to the Consolidated Cash Flow (if positive) directly attributable to the assets that are the subject of such Asset Sale for such period, or increased by an amount equal to the Consolidated Cash Flow (if negative) directly attributable thereto for such period;
		

		
			(4) if, since the beginning of such period, any Person that subsequently became a Restricted Subsidiary or was merged with or into the Borrower or any Restricted Subsidiary since the beginning of such period shall have made any Asset Sale, any Investment or acquisition of assets that would have required an adjustment pursuant to clause (3) above or (7) or (8) below if made by the Borrower or a Restricted Subsidiary during such period, Consolidated Cash Flow and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto as if such Asset Sale, Investment or acquisition had occurred on the first day of such period;
		

		
			
		

		
			

		 

		

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			(5) if, since the beginning of such period, any Person was designated as an Unrestricted Subsidiary or redesignated as or otherwise became a Restricted Subsidiary, Consolidated Cash Flow and Consolidated Interest Expense shall be calculated as if such event had occurred on the first day of such period;
		

		
			(6) Consolidated Cash Flow and Consolidated Interest Expense of discontinued operations recorded on or after the date such operations are classified as discontinued in accordance with GAAP shall be excluded;
		

		
			(7) if, since the beginning of such period, the Borrower or any Restricted Subsidiary shall have (i) by merger or otherwise, made an Investment in any Restricted Subsidiary (or any Person becomes a Restricted Subsidiary or is merged with or into the Borrower or a Restricted Subsidiary), or (ii) acquired assets constituting all or substantially all of an operating unit of a business or a Qualified Vessel, Consolidated Cash Flow and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto, as determined in good faith by a Financial Officer of the Borrower (including, without limitation, the Incurrence of any Indebtedness) as if such Investment or acquisition had occurred on the first day of such period; and
		

		
			(8) if the Borrower or any Restricted Subsidiary shall have entered into an agreement to acquire a Qualified Vessel that is scheduled for delivery no later than the date that is one year from the time of calculation, then Consolidated Cash Flow and Consolidated Interest Expense for such period may, at the Borrower’s election, be calculated giving pro forma effect to the delivery of such Qualified Vessel as of the first day of such period.
		

		
			Any pro forma calculations giving effect to the acquisition of a Qualified Vessel or to a committed construction contract with respect to a Qualified Vessel shall be made as follows:
		

		
			(a) the amount of Consolidated Cash Flow attributable to such Qualified Vessel shall be calculated in good faith by a Financial Officer of the Borrower;
		

		
			(b) in the case of Consolidated Cash Flow under a Qualified Services Contract, the Consolidated Cash Flow shall be based on revenues actually earned pursuant to the Qualified Services Contract relating to such Qualified Vessel or Qualified Vessels, and shall take into account, where applicable, only actual expenses Incurred without duplication in any measurement period;
		

		
			(c) the amount of Consolidated Cash Flow shall be the lesser of the Consolidated Cash Flow derived on a pro forma basis from revenues for (i) the first full year of the Qualified Services Contract and (ii) the average of the Consolidated Cash Flow of each year of such Qualified Services Contract for the term of the Qualified Services Contract; and
		

		
			(d) with respect to any expenses attributable to an Qualified Vessel, if the actual expenses differ from the estimate, the actual amount shall be used in such calculation.
		

		
			
		

		
			

		 

		

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			“Capital Lease Obligation” shall mean, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP as in effect on the Issue Date, and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty; provided that in no event will any lease that would have been categorized as an operating lease as determined in accordance with GAAP as of the Issue Date be considered a capital lease, regardless of any change in GAAP following the Issue Date that would otherwise require such obligations to be recharacterized (on a prospective or retroactive basis or otherwise) as a capital lease.
		

		
			“Capital Stock” shall mean (a) in the case of a corporation, corporate stock; (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (c) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and (d) 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; but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such securities include any right of participation with Capital Stock.
		

		
			“Cash Equivalents” shall mean
		

		
			(1) securities issued or directly and fully guaranteed or insured by the government of the United States or any other country whose sovereign debt has a rating of at least A3 from Moody’s and at least A- from S&P or any agency or instrumentality thereof having maturities of not more than twelve months from the date of acquisition;
		

		
			(2) certificates of deposit, demand 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 organized under the laws of any country that is a member of the Organization for Economic Cooperation and Development having capital and surplus in excess of $500 million (or the equivalent thereof in any other currency or currency unit);
		

		
			(3) marketable general obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition thereof, having a credit rating of “A” or better from either S&P or Moody’s;
		

		
			(4) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (1), (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (2) above;
		

		
			
		

		
			

		 

		

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			(5) commercial paper having one of the two highest ratings obtainable from Moody’s or S&P, or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings or investments, and, in each case, maturing within one year after the date of acquisition;
		

		
			(6) money market mutual funds substantially all of the assets of which are of the type described in the foregoing clauses (1) through (5) of this definition; and
		

		
			(7) in the case of the Borrower or any Subsidiary of the Borrower organized or having its principal place of business outside the United States, investments denominated in the currency of the jurisdiction in which such Person is organized or has its principal place of business or conducts business which are similar to the items specified in clauses (1) through (6) of this definition.
		

		
			“Cash Management Arrangement” shall mean, with respect to any Person, any obligations of such person in respect of treasury management arrangements including any of the following products, services or facilities:  (a) demand deposit or operating account relationships or other cash management services including, without limitation, any services provided in connection with operating, collections, payroll, trust, or other depository or disbursement accounts, including automated clearinghouse fund transfer services, e-payable, electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information reporting, automated clearinghouse transactions, return items, overdrafts, interstate depository network services, lockbox and stop payment services; and (b) treasury management line of credit, commercial credit card, merchant card services, purchase or debit cards, including, without limitation, stored value cards and non-card e-payables services.
		

		
			“Cash Management Obligations” shall mean obligations with respect to any Cash Management Arrangement.
		

		
			“Change in Law” shall mean the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, regulations or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines, regulations or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
		

		
			“Change of Control” shall mean the occurrence of any of the following:
		

		
			
		

		
			

		 

		

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			(1) the direct or indirect sale, lease (other than pursuant to any Drilling Contract entered into in the ordinary course of business), transfer, conveyance or other disposition (other than by way of amalgamation, merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Borrower and the Restricted Subsidiaries, taken as a whole, to any “person” (as that term is used in Section 13(d) of the Exchange Act) other than a Permitted Holder;
		

		
			(2) the Borrower is liquidated or dissolved, or a plan relating to the liquidation or dissolution of the Borrower is adopted; or
		

		
			(3) the consummation of any transaction or any series of transactions (including, without limitation, any merger, consolidation or other business combination), the result of which is that any Person (including any “person” (as defined above)), other than one or more Permitted Holders, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Borrower, measured by voting power rather than number of shares.
		

		
			“Charges” shall have the meaning assigned to such term in Section 9.08.
		

		
			“Closing Date” shall mean February 7, 2020.
		

		
			“Closing Fee” shall have the meaning assigned to such term in the Administrative Agent Fee Letter.
		

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

		
			“Collateral” shall mean all rights, assets and properties, whether owned on the Closing Date or thereafter acquired, upon which a Lien is granted or purported to be granted under any Collateral Document.  Collateral for the Loan Document Obligations shall not include Superpriority Excluded Property and Collateral for any other First Lien Debt shall not include Excluded Property (as defined in the First Lien Indenture).
		

		
			“Collateral Agency Agreement” shall mean the collateral agency agreement, dated the date hereof, by and among the Borrower, the Collateral Grantors, Guarantors and representatives from time to time party thereto.
		

		
			“Collateral Agent” shall mean Wilmington Trust, National Association, in its capacity as collateral agent under the Collateral Documents, and any successor thereto.
		

		
			“Collateral Agent Fee Letter” shall have the meaning in the Collateral Agency Agreement.
		

		
			“Collateral Agent Fees” shall mean fees due to the Collateral Agent under the Collateral Agent Fee Letter.
		

		
			
		

		
			

		 

		

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			“Collateral Documents” shall mean, collectively, each Assignment, Mortgage, Pledge Agreement and Security Agreement, the Intercreditor Agreement, the Collateral Agency Agreement, any future collateral agency or intercreditor agreement, control agreements and each other instrument creating a Lien or Liens in favor of the Collateral Agent as required by the First Lien Documents or the Intercreditor Agreement, in each case, as the same may be in effect from time to time.
		

		
			“Collateral Grantor” shall mean the Borrower and each Guarantor.
		

		
			“Collateral Vessels” shall mean, collectively, the Liberian flag (or other applicable future flag) vessels the Pacific Bora, the Pacific Mistral, the Pacific Scirocco, the Pacific Santa Ana, the Pacific Sharav, the Pacific Khamsin, the Pacific Meltem and any additional Vessels acquired or owned by the Borrower or any of its Restricted Subsidiaries after the Issue Date.
		

		
			“Commitment” shall mean, with respect to each Lender, the commitment of such Lender to make Loans hereunder as set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender assumed its Commitment, as applicable, as the same may be (a) reduced from time to time pursuant to Section 2.09 or (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.03.
		

		
			“Commitment Fee” shall have the meaning assigned to such term in Section 2.05(a).
		

		
			“Communications” shall have the meaning assigned to such term in Section 9.01(d).
		

		
			“Consolidated Cash Flow” shall mean, with respect to any period, the Consolidated Net Income of the Borrower for such period plus, without duplication:
		

		
			(1) provision for taxes based on income or profits of the Borrower and the Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus
		

		
			(2) Consolidated Interest Expense of the Borrower and the Restricted Subsidiaries for such period to the extent that such Consolidated Interest Expense was deducted in computing such Consolidated Net Income; plus
		

		
			(3) depreciation, amortization (including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of the Borrower and the Restricted Subsidiaries for such period to the extent that such depreciation, amortization and other non-cash expenses were deducted in computing such Consolidated Net Income; minus
		

		
			
		

		
			

		 

		

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			(4) non-cash items increasing such Consolidated Net Income for such period, other than the accrual of revenue in the ordinary course of business, in each case, on a consolidated basis and determined in accordance with GAAP.
		

		
			“Consolidated Interest Coverage Ratio” shall mean, as of any date of determination, the ratio of (i) Consolidated Cash Flow of the Borrower and its Restricted Subsidiaries for the Borrower’s most recently completed four quarter period for which internal financial statements are available to (ii) Consolidated Interest Expense of the Borrower and its Restricted Subsidiaries for such period, subject to the Calculation Principles.
		

		
			“Consolidated Interest Expense” shall mean, with respect to any Person for any period, the sum, without duplication, of:
		

		
			(1) the consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Indebtedness, commissions, discounts and other fees and charges Incurred in respect of letter of credit or bankers’ acceptance financings, and net payments (if any) pursuant to interest rate Hedging Obligations, but excluding:
		

		
			(a) amortization of debt issuance costs; and
		

		
			(b) any nonrecurring charges relating to any premium or penalty paid, write-off of deferred finance costs or original issue discount or other charges in connection with redeeming or otherwise retiring any Indebtedness prior to its Stated Maturity, to the extent that any of such nonrecurring charges constitute interest expense;
		

		
			(2) the consolidated interest expense of such Person and any Restricted Subsidiaries that was capitalized during such period; and
		

		
			(3) all dividends, whether paid or accrued and whether or not in cash, in respect of any Preferred Stock of any Restricted Subsidiary or any Disqualified Stock of the Borrower or any Restricted Subsidiary, other than (x) dividends payable solely in Equity Interests (other than Disqualified Stock) and (y) dividends payable to the Borrower or any Restricted Subsidiary.
		

		
			“Consolidated Net Income” shall mean, with respect to any specified Person for any period, the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided that:
		

		
			(1) the Net Income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted Subsidiary of the specified Person during such period;
		

		
			
		

		
			

		 

		

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			(2) solely for the purpose of determining the amount available for Restricted Payments under clause (iv)(D)(1) of Section 6.01(a), the Net Income (but not loss) of any Restricted Subsidiary of such Person (other than a Restricted Subsidiary that is a Guarantor) will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any applicable agreement, instrument, judgment, decree, order, statute, rule or governmental regulation; provided that if Net Income is excluded by operation of this provision with respect to a period because of restrictions on dividends or distributions applicable during such period that cease to apply in a subsequent period, such restrictions shall be deemed not to have applied during the initial period for subsequent calculations under this definition;
		

		
			(3) the cumulative effect of a change in accounting principles will be excluded;
		

		
			(4) non-cash gains and losses due solely to fluctuations in currency values will be excluded;
		

		
			(5) in the case of a successor to the referenced Person by consolidation or merger or as a transferee of the referenced Person’s assets, any earnings (or losses) of the successor corporation prior to such consolidation, merger or transfer of assets will be excluded;
		

		
			(6) the effects resulting from the application of purchase accounting in relation to any acquisition that is consummated after the Issue Date will be excluded;
		

		
			(7) any unrealized gain (or loss) in respect of Hedging Obligations will be excluded;
		

		
			(8) non-cash charges or expenses with respect to the grant of stock options, restricted stock or other equity compensation awards will be excluded; and
		

		
			(9) any gains resulting from settlement of, or awards received in connection with, the Zonda Arbitration will be excluded.
		

		
			“Consolidated Total Indebtedness” shall mean, with respect to any Person as of any date of determination, the sum, without duplication, of:
		

		
			(1) the total amount of Indebtedness (other than Hedging Obligations) of such Person and its Restricted Subsidiaries, plus
		

		
			(2) the aggregate liquidation value of all Disqualified Stock of such Person and all Preferred Stock of the Restricted Subsidiaries of such Person,
		

		
			
		

		
			

		 

		

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			in each case, determined on a consolidated basis in accordance with GAAP.
		

		
			“Controlled Account” shall mean each deposit account and securities account that is subject to an account control agreement in form and substance satisfactory to the Administrative Agent.
		

		
			“Covered Entity” means any of the following:
		

		
			(1) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
		

		
			(2) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
		

		
			(3) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
		

		
			“Credit Event” shall have the meaning assigned to such term in Section 4.01.
		

		
			“Credit Facilities” shall mean one or more debt facilities, commercial paper facilities, loan agreements, indentures or agreements of the Borrower or any Restricted Subsidiary with banks, other institutional lenders, commercial finance companies or other lenders or investors providing for revolving credit loans, term loans, bonds, debentures or letters of credit, pursuant to agreements or indentures, in each case, as amended, restated, modified, renewed, refunded, replaced, increased or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time (and without limitation as to amount, terms, conditions, covenants and other provisions, including increasing the amount of available borrowings thereunder, changing or replacing agent banks and lenders thereunder or adding, removing or reclassifying Subsidiaries of the Borrower as borrowers or guarantors thereunder).
		

		
			“Customer” shall mean and includes, the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or both with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or other arrangement with any Loan Party, pursuant to which such Loan Party is to deliver any personal property or perform any services.
		

		
			“Debtor Relief Laws” shall mean the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.
		

		
			“Default” shall mean any event or condition which upon notice, lapse of time or both would constitute an Event of Default.
		

		
			“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
		

		
			
		

		
			

		 

		

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			“Defaulting Lender” shall mean, subject to Section 2.18(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of one or more conditions precedent to funding set forth in Article IV (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) not having been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with any of its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on a condition precedent to funding set forth in Article IV (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) which cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent that has, (i) become the subject of a proceeding under any Debtor Relief Law or (ii) appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or Federal regulatory authority acting in such a capacity or (e) becomes the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (e) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.18(b)) upon delivery of written notice of such determination to the Borrower and each Lender.
		

		
			“Disqualified Stock” shall mean any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable (in each case other than in exchange for or conversion into Capital Stock that is not Disqualified Stock), pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the First Lien Notes mature.  Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require the Borrower to repurchase or redeem such Capital Stock upon the occurrence of a change of control or an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide that the Borrower may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase
		

		
			
		

		
			

		 

		

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			or redemption complies with Section 6.01.  The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this Agreement will be the maximum amount that the Borrower and the Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock.
		

		
			“Dollars” or “$” shall mean lawful money of the United States of America.
		

		
			“Dollar Equivalent” shall mean, with respect to any monetary amount in a currency other than U.S. dollars, at any time of determination thereof, the amount of U.S. dollars obtained by converting such other currency involved in such computation into U.S. dollars at the spot rate for the purchase of U.S. dollars with such other currency as published in the “Currency Rates” section of the Financial Times entitled “Currencies, Bonds & Interest Rates” (or, if the Financial Times is no longer published, or if such information is no longer available in the Financial Times,  such source as may be selected in good faith by the Borrower) on the date of such determination.  Except as expressly provided otherwise, whenever it is necessary to determine whether the Borrower or any of its Restricted Subsidiaries has complied with any covenant or other provision in this Agreement or if there has occurred an Event of Default and an amount is expressed in a currency other than Dollars, such amount will be treated as the Dollar Equivalent determined as of the date such amount is initially determined in such non-Dollar currency.
		

		
			“Drilling Contract” shall mean any charterparty, pool agreement or drilling contract in respect of any Collateral Vessel or other contract for use of any Collateral Vessel.
		

		
			“Early Opt-in Election” means the occurrence of:
		

		
			(a)        a determination by the Administrative Agent that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 2.08 are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the LIBO Rate, and
		

		
			(b)        the election by the Administrative Agent to declare that an Early Opt-in Election has occurred and the provision by the Administrative Agent of written notice of such election to the Borrower and the Lenders of written notice of such election to the Administrative Agent.
		

		
			“Earnings” shall mean, with respect to any Collateral Vessel, (i) all freight, hire and passage moneys payable to the Borrower or any of its Subsidiaries as a consequence of the operation of such Collateral Vessel, including, without limitation, payments under any Drilling Contract in respect of such Collateral Vessel, (ii) any claim under any guarantee in respect of any Drilling Contract or otherwise related to freight, hire or passage moneys, in each case payable to the Borrower or any of its Subsidiaries as a consequence of the operation of such Collateral Vessel; (iii) compensation payable to the Borrower or any of its Subsidiaries in the event of any requisition of such Collateral Vessel; (iv) remuneration for salvage, towage and other services performed by such Collateral Vessel and payable to the Borrower or any of its Subsidiaries; (v) demurrage and retention money receivable by the Borrower or any of its Subsidiaries in relation to such Collateral Vessel; (vi) all moneys that are at any time payable under insurance in respect
		

		
			
		

		
			

		 

		

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			of loss of Earnings with respect to such Collateral Vessel; (vii) if and whenever such Collateral Vessel is employed on terms whereby any moneys falling within items (i) through (vi) above are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing arrangement that is attributable to such Collateral Vessel; and (viii) other money whatsoever due or to become due to any of the Borrower or any of its Subsidiaries in relation to such Collateral Vessel.
		

		
			“Earnings Account” shall mean, with respect to any Collateral Vessel, an interest bearing account into which all Earnings derived from any Drilling Contract with respect to such Collateral Vessel (other than Earnings payable to a Local Content Subsidiary) shall be deposited or forwarded that is subject to an account control agreement, except to the extent prohibited by applicable law.
		

		
			“Earnings Assignments” shall mean, collectively, the assignments of Earnings in favor of the Collateral Agent given by the Collateral Grantors in respect of all Earnings derived from a Collateral Vessel and its operations, as the same may be amended, restated, supplemented or modified from time to time.
		

		
			“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 Availability Period” shall mean the period from and including the Closing Date to but excluding the Availability Termination Date.
		

		
			“Eligible Accounts Receivable” shall mean each Receivable of the Borrower and its Restricted Subsidiaries arising in the ordinary course of business.  A Receivable shall not be deemed eligible unless such Receivable is subject to a perfected security interest in favor of the Administrative Agent and no other Lien (other than Permitted Liens), and is evidenced by an invoice or other documentary evidence satisfactory to the Administrative Agent.  In addition, no Receivable shall be an Eligible Receivable if:
		

		
			(a)        it arises out of a sale made by any Loan Party to an Affiliate of any Loan Party or to a Person controlled by an Affiliate of any Loan Party;
		

		
			(b)        it is due or unpaid more than ninety (90) days after the original due date;
		

		
			
		

		
			

		 

		

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			(c)        for the period beginning on the Closing Date and ending on the day prior to the first anniversary thereof, such Receivable is in excess of sixty percent (60%) of the aggregate Receivables from any Customer, and for any period thereafter, such Receivable is in excess of thirty percent (30%) of the aggregate Receivables from any Customer, but in each case, ineligibility shall be limited to the extent of such excess;
		

		
			(d)        Receivables from Customers that do not have, or their parents do not have, an investment grade rating may not exceed fifteen (15%) of Eligible Accounts Receivable, but in each case, ineligibility shall be limited to the extent of such excess;
		

		
			(e)        any covenant, representation or warranty contained in this Agreement with respect to such Receivable has been breached;
		

		
			(f)        such Receivable is owed by an insolvent or bankrupt Customer or a Customer who has ceased operation;
		

		
			(g)        the Customer is the United States of America, any state or any department, agency or instrumentality of any of them, unless the applicable Loan Party assigns its right to payment of such Receivable to the Collateral Agent pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has otherwise complied with other applicable statutes or ordinances;
		

		
			(h)        Receivables from Customers that are non-U.S. States, any state or any department, agency or instrumentality of any of them that do not have an investment grade rating may not exceed fifteen percent (15%) of Eligible Accounts Receivable, but in each case, ineligibility shall be limited to the extent of such excess;
		

		
			(i)         the goods giving rise to such Receivable have not been delivered to and accepted by the Customer or the services giving rise to such Receivable have not been performed by the applicable Loan Party and accepted by the Customer or the Receivable otherwise does not represent a final sale;
		

		
			(j)         the Receivable is subject to any offset, deduction, defense, dispute, credits or counterclaim (but such Receivable shall only be ineligible to the extent of such offset, deduction, defense or counterclaim), the Customer is also a creditor or supplier of a Loan Party or the Receivable is contingent in any respect or for any reason;
		

		
			(k)        the applicable Loan Party has made any agreement with any Customer for any deduction therefrom, except for discounts or allowances made in the ordinary course of business for prompt payment, all of which discounts or allowances are reflected in the calculation of the face value of each respective invoice related thereto;
		

		
			(l)         any return, rejection or repossession of assets purchased on behalf of or at the request of such Customer in the ordinary course of business the subject of such Receivable has occurred or the rendition of services has been disputed;
		

		
			(m)       such Receivable is not payable to a Loan Party;
		

		
			
		

		
			

		 

		

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			(n)        for the period beginning on the Closing Date and ending on the day prior to the first anniversary thereof, such Receivable is owed by a Customer that has more than forty percent (40%) of its aggregate Receivables which are not eligible pursuant to clause (c) above and for any period thereafter, such Receivable is owed by a Customer that has more than seventy percent (70%) of its aggregate Receivables which are not eligible pursuant to clause (c);
		

		
			(o)        greater than twenty percent (20%) of such Receivable is payable in any currency other than Dollars, but in each case, ineligibility shall be limited to the extent of such excess;
		

		
			(p)        such Receivable represents a progress billing which is contingent upon a Loan Party’s completion of any further performance or which is related to payments of interest; or
		

		
			(q)        an invoice for such Receivables has not yet been sent to the applicable Customer.
		

		
			“Eligible Assignee” shall mean any Person that meets the requirements to be an assignee under Section 9.03(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 9.03(b)(iii)).
		

		
			“Environmental Laws” shall mean any and all federal, state, local and foreign statutes, laws, treaties, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions or requirements, including all common law, relating to pollution or the protection of health, safety or the environment, including the Release of, or exposure to, any toxic or hazardous materials or wastes, air emissions, discharges to waste or public systems and health and safety matters.
		

		
			“Environmental Liability” shall mean all liabilities, obligations, damages, losses, claims, actions, suits, judgments, orders, fines, penalties, fees, indemnities, expenses and costs (including administrative oversight costs, natural resource damages, trust fund reimbursements, costs of medical monitoring, remediation costs and reasonable fees and expenses of attorneys and consultants), whether contingent or otherwise, arising out of or relating to (a) compliance or non‐compliance with any Environmental Law, (b) the generation, use, handling, distribution, recycling, transportation, storage, treatment or disposal (or the arrangement for such activities) of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous Materials or (e) any contract, agreement, or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
		

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

		
			“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.
		

		
			
		

		
			

		 

		

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			“ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that, together with the Borrower or any Restricted Subsidiary, is treated as a single employer under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.  For the avoidance of doubt, when any provision of this Agreement relates to a past event or period of time, the term “ERISA Affiliate” includes any person who was, as to the time of such past event or period of time, an “ERISA Affiliate” within the meaning of the preceding sentence.
		

		
			“ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA, with respect to a Plan (other than an event for which the 30-day notice period is waived), (b) any failure of any Plan to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, whether or not waived, (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan, (d) a determination that any Plan is, or is expected to be, in “at-risk” status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code), (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or the withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or Multiemployer Plan, (f) the receipt by the Borrower or any of its ERISA Affiliates from the PBGC or the administrator of any Plan or Multiemployer Plan of any notice relating to the intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan or Multiemployer Plan, (g) the receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from the Borrower 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, within the meaning of Title IV of ERISA or, in endangered or critical status, within the meaning of Section 305 of ERISA, (h) the occurrence of a “prohibited transaction” with respect to which the Borrower or any of the Subsidiaries is a “disqualified person” (within the meaning of Section 4975 of the Code) or with respect to which the Borrower or any such Subsidiary of the Borrower could otherwise be liable or (i) any other event or condition with respect to a Plan or Multiemployer Plan that could result in liability of the Borrower or any Subsidiary of the Borrower.
		

		
			“Escrow Release Date” shall mean November 19, 2018.
		

		
			“EU Bail-In Legislation Schedule” shall mean 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 assigned to such term in Section 7.01.
		

		
			“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.
		

		
			“Excluded Taxes” shall mean any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient:  (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and
		

		
			
		

		
			

		 

		

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			branch profits Taxes, in each case (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. Federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in such Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.17(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.16, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in such Loan or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.16(f) and (d) any U.S. Federal withholding Taxes imposed under FATCA.
		

		
			“Fair Market Value” shall mean the value that would be paid by an informed and willing buyer to an unaffiliated, informed and willing seller in a transaction not involving distress or necessity of either party, as determined in good faith and certified by an officer of the Borrower, or, with respect to such values in excess of $10 million, the Board of Directors of the Borrower (unless otherwise provided in this Agreement).
		

		
			“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement, and any regulations or official interpretations thereof.
		

		
			“Federal Funds Effective Rate” shall mean, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided, 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 (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) as quoted to the Administrative Agent by three (3) federal funds brokers of recognized standing selected by it in good faith; provided further that the Federal Funds Effective Rate, if negative, shall be deemed to be 0.00% for all purposes.
		

		
			“Federal Reserve Bank of New York’s Website” shall mean the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.
		

		
			“Fees” shall mean the Closing Fee, the Commitment Fees, the Administrative Agent Fee, and the Collateral Agent Fees.
		

		
			“Financial Officer” shall mean, with respect to any Person, the chief executive officer, chief financial officer, chief accounting officer or treasurer of such Person.
		

		
			“First Lien” shall mean a Lien granted by the Borrower or any other Guarantor in favor of the Collateral Agent and the Collateral Agent (as defined therein) under the First Lien Notes, at any time, upon any property of the Borrower or such other Guarantor to secure First Lien Obligations.
		

		
			
		

		
			

		 

		

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			“First Lien Cash Management Obligations” shall mean Cash Management Obligations owed to any provider or arranger of, or agent with respect to, any First Lien Debt to the extent secured by First Liens.
		

		
			“First Lien Debt” shall mean (a) the First Lien Notes issued on the Issue Date pursuant to the First Lien Indenture and the related Guarantees thereof, (b) the Indebtedness under the Loan Documents and (c) any other Indebtedness secured by a Lien on Collateral that is pari passu with the Liens securing the First Lien Notes and that is permitted to be incurred and so secured under this Agreement and the First Lien Indenture (including any Additional First Lien Notes); provided that:
		

		
			(1)        any such Indebtedness (other than Indebtedness under the Loan Documents) does not mature and does not have any mandatory or scheduled payments or sinking fund obligations prior to the maturity date of the First Lien Notes,
		

		
			(2)        on or prior to the date of incurrence of such Indebtedness by the Borrower or any Guarantor, such Indebtedness (other than the First Lien Notes (including any Additional First Lien Notes)) is designated by the Borrower, in an Officers’ Certificate delivered to each First Lien Representative and the Collateral Agent, as “First Lien Debt” for the purposes of the First Lien Documents,
		

		
			(3)        a First Lien Representative is designated with respect to such Indebtedness (other than the First Lien Notes (including any Additional First Lien Notes)) and executes and delivers to the Collateral Agent (i) an Additional Secured Debt Designation on behalf of itself and all holders of such Indebtedness and (ii) a joinder to the Collateral Agency Agreement on behalf of itself and all holders of such Indebtedness,
		

		
			(4)        such Indebtedness is pari passu in right of payment with the First Lien Notes and does not have any senior or junior rights related to the First Lien Notes with respect to the application of proceeds from Collateral (other than any DIP Financing (as defined in the Intercreditor Agreement) that is permitted by the Intercreditor Agreement and other than any Indebtedness under this Agreement),
		

		
			(5)        such Indebtedness shall not be an obligation of any person other than the Borrower or any Guarantor, and
		

		
			(6)        such Indebtedness shall not be secured by any assets other than assets that constitute Collateral for the First Lien Notes; provided that Indebtedness under this Agreement may be secured by Liens on any assets that do not constitute Superpriority Excluded Property.
		

		
			“First Lien Documents” shall mean the First Lien Note Documents, the Loan Documents and any additional indenture, credit agreement or other agreement pursuant to which any other First Lien Debt is incurred and secured in accordance with the terms of each applicable First Lien Document and the Collateral Documents related thereto.
		

		
			
		

		
			

		 

		

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			“First Lien Hedging Obligations” shall mean Hedging Obligations owed to any provider or arranger of, or agent with respect to, any First Lien Debt to the extent secured by First Liens.
		

		
			“First Lien Indenture” shall mean the indenture, dated as of the Issue Date, by and between the Borrower, as issuer, and Wilmington Trust, National Association, as trustee and collateral agent, governing the First Lien Notes, as amended, restated, supplemented or otherwise modified from time to time.
		

		
			“First Lien Leverage Ratio” shall mean, as of any date of determination, the ratio of (i) the aggregate amount of Consolidated Total Indebtedness that is First Lien Debt as of the end of the Borrower’s most recently completed four quarter period for which internal financial statements are available to (ii) Consolidated Cash Flow of the Borrower and its Restricted Subsidiaries for such four quarter period, subject to the Calculation Principles.
		

		
			“First Lien Note Documents” shall mean the First Lien Indenture, the First Lien Notes, the Collateral Documents, the Guarantees and any agreement, instrument or other document evidencing or governing any First Lien Notes Obligations.
		

		
			“First Lien Notes”  shall mean the 8.375% First Lien Notes due 2023 issued pursuant to the First Lien Indenture.
		

		
			“First Lien Notes Obligations” shall mean all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower or any Guarantor arising under the First Lien Indenture, the First Lien Notes, the Guarantees or the Collateral Documents (including all principal, premium, interest, penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees and other liabilities or amounts payable or arising thereunder), 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 the Borrower or any guarantor of any proceeding in 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.
		

		
			“First Lien Obligations” shall mean all First Lien Debt and all other Obligations in respect thereof (including First Lien Hedging Obligations and First Lien Cash Management Obligations).
		

		
			“First Lien Representative” shall mean (1) in the case of the First Lien Notes, the Trustee, (2) in the case of this Agreement, Angelo, Gordon Energy Servicer, LLC, or (3) in the case of any other series of First Lien Debt, the trustee, agent or representative of the holders of such series of First Lien Debt who (A) is appointed as a First Lien Representative of such series of First Lien Debt (for purposes related to the administration of the applicable Collateral Documents) pursuant to the indenture, credit agreement or other agreement governing such series of First Lien Debt, together with its successors in such capacity, and (B) has executed and delivered an Additional Secured Debt Designation and a joinder to the Collateral Agency Agreement.
		

		
			
		

		
			

		 

		

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			“Foreign Subsidiary” shall mean, with respect to any Person, any Restricted Subsidiary of such Person that is not organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof and any Restricted Subsidiary of such Foreign Subsidiary.
		

		
			“Fund” shall mean any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.
		

		
			“GAAP” shall mean generally accepted accounting principles set forth in the Accounting Standards Codification of the Financial Accounting Standards Board (or successor codifications, opinions, pronouncements or statements thereto) in the United States, which are in effect from time to time.
		

		
			“Governmental Authority” shall mean the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, self-regulatory organization, including but not limited to the Financial Industry Regulatory Authority, Inc., court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the European Union or the European Central Bank).
		

		
			“Granting Lender” shall have the meaning assigned to such term in Section 9.03(h).
		

		
			“guarantee” of or by any Person shall mean a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner (including letters of credit and reimbursement agreements in respect thereof), of all or any part of any Indebtedness or other obligations.
		

		
			“Guarantee” shall mean the guarantee of the Loan Document Obligations by any Guarantor.  For the avoidance of doubt, PDVIII and PDSI shall not constitute Guarantors providing a Guarantee prior to the Zonda Release Date.
		

		
			“Guarantee Agreement” shall mean the Guarantee Agreement, substantially in the form of Exhibit C, among the Borrower, the Subsidiaries or other Affiliates party thereto and the Administrative Agent.  For the avoidance of doubt, PDVIII and PDSI shall not constitute Guarantors required to execute the Guarantee Agreement prior to the Zonda Release Date.
		

		
			“Guarantor” shall mean each Person that provides a Guarantee, together with its successors and assigns, until the Guarantee of such Person has been released in accordance with the provisions of the Guarantee Agreement.
		

		
			“Hazardous Materials” shall mean (a) any petroleum products, byproducts, additives or fractions and all other hydrocarbons, coal ash, radon gas, asbestos or asbestos-containing material, urea formaldehyde foam insulation, polychlorinated biphenyls, chlorofluorocarbons and all other ozone-depleting substances and (b) any chemical, material,
		

		
			
		

		
			

		 

		

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			substance or waste that is prohibited, limited or regulated by or pursuant to any Environmental Law.
		

		
			“Hedging Obligations” shall mean, with respect to any specified Person, the obligations of such Person under:
		

		
			(1)        interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements designed to protect the Person or any of its Restricted Subsidiaries entering into the agreement against, or manage exposure to, fluctuations in interest rates, or to otherwise reduce the cost of borrowing of such Person or any of such Restricted Subsidiaries, with respect to Indebtedness Incurred;
		

		
			(2)        foreign exchange contracts and currency protection agreements designed to protect the Person or any of its Restricted Subsidiaries entering into the agreement against, or manage exposure to, fluctuations in currency exchanges rates;
		

		
			(3)        any commodity futures contract, commodity swap, commodity option, commodity forward sale or other similar agreement or arrangement designed to protect against, or manage exposure to, fluctuations in the price of commodities used by that Person or any of its Restricted Subsidiaries at the time; and
		

		
			(4)        other agreements or arrangements designed to protect such Person or any of its Restricted Subsidiaries against, or manage exposure to, fluctuations in interest rates, commodity prices or currency exchange rates.
		

		
			“Immaterial Junior Debt” shall mean Consolidated Total Indebtedness of the Borrower or any Guarantor (in one or more issuances or tranches) with an aggregate outstanding amount (prior to any proposed repayment thereof on the applicable date of determination, and excluding any intercompany Indebtedness between or among the Borrower and any Guarantors) of no more than $50.0 million that is contractually subordinated in right of payment to the First Lien Notes and the Indebtedness under the Loan Documents (or any guarantee thereof) or that is unsecured or secured on a junior lien basis to the First Lien Notes and the Indebtedness under the Loan Documents (or any guarantee thereof).
		

		
			“Immaterial Subsidiary” shall mean, at any date of determination, any Restricted Subsidiary that (1) has total assets with a Fair Market Value that (when combined with the assets of such Restricted Subsidiary’s Restricted Subsidiaries and after intercompany eliminations), as of the date of any financial statements delivered pursuant to Section 5.04, were less than 2.0%, with respect to such Restricted Subsidiary individually, and less than 5.0%, in the aggregate for such Restricted Subsidiary and all other Immaterial Subsidiaries (calculated on the same basis), of the consolidated total assets of the Borrower and the Restricted Subsidiaries at such date, determined in accordance with GAAP, (2) generates gross revenues (excluding intercompany revenue) that (when combined with the gross revenues (excluding intercompany revenue) of such Restricted Subsidiary’s Restricted Subsidiaries), for the most recent four fiscal quarter
		

		
			
		

		
			

		 

		

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			period ending prior to the date on which any financial statements are delivered pursuant to Section 5.04, were less than 2.0%, with respect to any such Restricted Subsidiary individually, and less than 5.0%, in the aggregate for such Restricted Subsidiary and all other Immaterial Subsidiaries (calculated on the same basis), of the consolidated gross revenues (excluding intercompany revenue) of the Borrower and the Restricted Subsidiaries for such period, determined in accordance with GAAP, (3) does not own any interest in any Collateral Vessel or any Subsidiary that owns a Collateral Vessel, (4) other than a Local Content Subsidiary, is not party to any Drilling Contract in respect of a Collateral Vessel or entitled to receive Earnings thereunder and (5) does not guarantee or otherwise directly or indirectly provide credit support for any Consolidated Total Indebtedness of the Borrower or any Guarantor.
		

		
			“Incur” shall have the meaning assigned to such term in Section 6.03(a).  The terms “Incurrence,” “Incurred” and “Incurring” shall have correlative meanings.
		

		
			“Indebtedness” shall mean, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables (or intercompany reimbursement obligations in respect thereof) in the ordinary course of business), whether or not contingent:
		

		
			(1)        in respect of borrowed money;
		

		
			(2)        evidenced by bonds, notes, debentures or similar instruments;
		

		
			(3)        representing reimbursement obligations in respect of letters of credit, bankers’ acceptances or other similar instruments, other than such reimbursement obligations that relate to trade payables or other obligations that are not themselves Indebtedness, in each case, that were entered into in the ordinary course of business of such Person to the extent such reimbursement obligations are satisfied within 10 Business Days following payment on the letter of credit, bankers’ acceptance or similar instrument;
		

		
			(4)        representing Capital Lease Obligations of such Person;
		

		
			(5)        representing the balance deferred and unpaid of the purchase price of any property or services due more than six months after such property is acquired or such services are completed;
		

		
			(6)        representing Hedging Obligations of such Person; or
		

		
			(7)        representing Attributable Indebtedness of such Person in respect of Sale and Lease-Back Transactions;
		

		
			if and to the extent any of the preceding items (other than letters of credit, Hedging Obligations and Attributable Indebtedness) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any other Person.
		

		
			
		

		
			

		 

		

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

		
			“Indemnitee” shall have the meaning assigned to such term in Section 9.04(b).
		

		
			“Initial Commitments” shall mean the Commitments made available to the Borrower pursuant to Section 2.01 on the Closing Date, as the same may be (a) reduced from time to time pursuant to Section 2.09 or (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.03.  The aggregate amount of the Initial Commitments as of the Closing Date is $50,000,000.
		

		
			“Initial First Lien Notes” shall mean the First Lien Notes issued on the Issue Date.
		

		
			“Information” shall have the meaning assigned to such term in Section 9.13.
		

		
			“Insurance Assignments” shall mean, collectively, the assignments of insurance proceeds in favor of the Collateral Agent given by the Collateral Grantors respecting all hull and machinery and loss of hire insurance covering each Collateral Vessel or its operations, as the same may be amended, restated, supplemented or modified from time to time.
		

		
			“Insurances” shall have the meaning assigned to such term in Section 5.02(b).
		

		
			“Insurers” shall have the meaning assigned to such term in Section 5.02(b).
		

		
			“Intercompany Subordination Agreement” shall mean the intercompany subordination agreement dated as of February 7, 2020 among the Guarantors as the same may be amended, restated, amended and restated or otherwise modified from time to time.
		

		
			“Intercompany Transfers” shall have the meaning assigned to such term in Section 6.02(a).
		

		
			“Intercreditor Agreement” shall mean (i) the Intercreditor Agreement among the Collateral Agent, the Junior Lien Collateral Agent, the Borrower, each other Collateral Grantor and the other parties from time to time party thereto, entered into on the Escrow Release Date as it may be amended, restated, supplemented or otherwise modified from time to time and (ii) any replacement thereof that contains terms not less favorable to the holders of First Lien Debt and the Administrative Agent than the Intercreditor Agreement referred to in clause (i).
		

		
			“Interest Payment Date” shall mean the last Business Day of each March, June, September and December.
		

		
			“Internal Charterer” shall mean any direct or indirect Subsidiary of the Borrower (other than a Local Content Subsidiary) that is not the owner of the relevant Collateral Vessel and that is party to any Drilling Contract in respect of a Collateral Vessel and entitled to receive Earnings thereunder.
		

		
			
		

		
			

		 

		

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			“Investments” shall mean, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including guarantees or other obligations), advances or capital contributions (excluding commission, travel and similar advances to officers and employees made in the ordinary course of business, and excluding extensions of trade credit or other advances to customers on commercially reasonable terms in accordance with normal trade practices or otherwise in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.  If the Borrower or any of the Restricted Subsidiaries sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary, the Borrower will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Borrower’s Investments in such Subsidiary that were not sold or disposed of in an amount determined as provided in the final paragraph of Section 6.01.  The acquisition by the Borrower or any of its Subsidiaries of a Person that holds an Investment in a third Person will be deemed to be an Investment by the Borrower or such Subsidiary in such third Person that is not a Subsidiary of such Person in an amount equal to the Fair Market Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in the final paragraph of  Section 6.01.  Except as otherwise provided in this Agreement, the amount of an Investment will be determined at the time the Investment is made and without giving effect to subsequent changes in value.
		

		
			“Involuntary Transfer” shall mean, with respect to any property or asset of the Borrower or any Restricted Subsidiary, (a) any damage to such property or asset that results in an insurance settlement with respect thereto on the basis of a total loss or a constructive or compromised total loss, (b) the confiscation, condemnation, requisition, appropriation or similar taking of such property or asset by any government or instrumentality or agency thereof, including by deed in lieu of condemnation, or (c) foreclosure or other enforcement of a Lien or the exercise by a holder of a Lien of any rights with respect to it.
		

		
			“IP Rights” shall have the meaning assigned to such term in Section 3.23.
		

		
			“Issue Date” shall mean September 26, 2018.
		

		
			“Junior Lien” shall mean a Lien granted by the Borrower or any other Guarantor, at any time, upon any property of the Borrower or such other Guarantor to secure Junior Lien Obligations.
		

		
			“Junior Lien Collateral Agent” shall mean the collateral agent or agents or other representative of lenders or holders of Junior Lien Obligations designated pursuant to the terms of the Junior Lien Documents and the Intercreditor Agreement, in each case, together with its successors and assigns.
		

		
			“Junior Lien Debt” shall mean (a) the Second Lien PIK Notes and (b) any other Indebtedness secured by a Junior Lien that is permitted to be incurred and so secured under this Agreement; provided that:
		

		
			
		

		
			

		 

		

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			(1)        such Indebtedness does not mature and does not have any mandatory or scheduled payments or sinking fund obligations prior to the date that is 91 days after the maturity date of the First Lien Notes;
		

		
			(2)        on or before the date on which such Indebtedness is incurred by the Borrower or any Guarantor, the Borrower shall deliver to each First Lien Representative and Junior Lien Representative complete copies of each applicable Junior Lien Document (which shall provide that each secured party with respect to such Indebtedness shall be subject to and bound by the Intercreditor Agreement), along with an Officers’ Certificate identifying the obligations constituting Junior Lien Obligations;
		

		
			(3)        on or before the date on which any such Indebtedness is incurred by the Borrower or any Guarantor, such Indebtedness is designated by the Borrower, in an Officers’ Certificate delivered to each Junior Lien Representative and Junior Lien Collateral Agent as “Junior Lien Debt,” and such Officers’ Certificate also certifies that such Indebtedness is permitted and with respect to any other requirements set forth in the Intercreditor Agreement;
		

		
			(4)        a Junior Lien Representative is designated with respect to such Indebtedness and executes and delivers an Additional Secured Debt Designation on behalf of itself and all holders of such Indebtedness;
		

		
			(5)        such Indebtedness shall not be an obligation of any person other than the Borrower or any Guarantor;
		

		
			(6)        such Indebtedness is not secured by a Lien on any collateral other than collateral securing First Lien Obligations;
		

		
			(7)        such Indebtedness does not provide for “cross-default” (as opposed to “cross-acceleration”) provisions to the First Lien Obligations; and
		

		
			(8)        the definitive documents for such Indebtedness do not have any term, covenant or default or event of default provisions that are more restrictive than the terms, covenants and default and event of default provisions with respect to the First Lien Obligations (other than any more restrictive provisions with respect to additional Junior Lien Debt) and do not contain any financial maintenance covenant.
		

		
			“Junior Lien Documents” shall mean, collectively, any indenture, credit agreement or other agreement or instrument pursuant to which Junior Lien Debt is incurred and secured.
		

		
			“Junior Lien Obligations” shall mean Junior Lien Debt and all other Obligations in respect thereof.
		

		
			“Junior Lien Representative” shall mean, in the case of any series of Junior Lien Debt, the trustee, agent or representative of the holders of such series of Junior Lien Debt who is
		

		
			
		

		
			

		 

		

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			appointed as a representative of the Junior Lien Debt (for purposes related to the administration of the security documents) pursuant to the indenture, credit agreement or other agreement governing such series of Junior Lien Debt, in each case together with its successors in such capacity.
		

		
			“knowledge” or words of similar import relating to the knowledge or the awareness of the Borrower or its Subsidiaries used in this Agreement and the other Loan Documents shall mean and refer to the actual knowledge of an Officer of the Borrower or such Subsidiary.
		

		
			“Lenders” shall mean the Persons listed on Schedule 2.01 and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.
		

		
			“LIBO Rate” shall mean the greater of (a) 1.50% and (b) as of the date of determination, the Screen Rate.  If such rate is not available at such time for any reason, then the “LIBO Rate” shall be the rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Dollars for delivery on such date in same day funds in the approximate amount of the Loans with a term of three months would be offered by three (3) major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two (2) Business Days prior to such date.
		

		
			“Lien” shall mean, with respect to any asset, any mortgage, lien, pledge, charge, security interest 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 such asset and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.
		

		
			“Loan Document Obligations” shall mean collectively, (a) the due and punctual payment of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by the Borrower under this Agreement in respect of the Yield Maintenance Amount (including Yield Maintenance Amounts incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and (iii) all other monetary obligations of the Borrower to any of the Secured Parties under this Agreement and each of the other Loan Documents, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other obligations of the Borrower under or pursuant to this Agreement and each of the other Loan Documents and (c) the due and punctual payment and performance of all the obligations of each other Loan Party under or pursuant to each of the other Loan Documents.
		

		
			
		

		
			

		 

		

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			“Loan Documents” shall mean this Agreement, the Collateral Documents, the Intercompany Subordination Agreement, the Collateral Agent Fee Letter, the Administrative Agent Fee Letter, and the promissory notes, if any, executed and delivered pursuant to Section 2.04(e).
		

		
			“Loan Party” shall mean each of the Borrower and each Subsidiary Guarantor.
		

		
			“Loans” shall mean the revolving loans made by the Lenders to the Borrower pursuant to Section 2.01.
		

		
			“Local Content Subsidiary”  shall mean any Subsidiary of the Borrower that is a party to a Drilling Contract or otherwise holds the right to receive Earnings attributable to a Collateral Vessel or any Related Assets for the purpose of satisfying any local content law or regulation or similar law or regulation.
		

		
			“Margin Stock” shall have the meaning assigned to such term in Regulation U.
		

		
			“Material Adverse Effect” shall mean (a) a materially adverse effect on the business, assets, liabilities, operations, condition (financial or otherwise), operating results or prospects of the Borrower and the Restricted Subsidiaries, taken as a whole, (b) a material impairment of the ability of the Loan Parties, taken as a whole, to perform their payment obligations under any Loan Document or (c) a material impairment of the rights and remedies of or benefits available to the Lenders under any Loan Document.
		

		
			“Material Contract” shall mean any contract with a Customer for the provision of goods or services with expected revenues under the firm portion of the contract (excluding any option period or periods) in excess of $10 million.
		

		
			“Material Indebtedness” shall mean Indebtedness (other than the Loans), or obligations in respect of one or more Hedging Obligations, of any one or more of the Borrower or any Restricted Subsidiary in an aggregate principal amount exceeding $25.0 million.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Restricted Subsidiary in respect of any Hedging Obligation at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Restricted Subsidiary would be required to pay if such Hedging Obligation were terminated at such time.
		

		
			“Material Junior Debt” shall mean any Consolidated Total Indebtedness of the Borrower or any Guarantor that is contractually subordinated in right of payment to the First Lien Notes, the Indebtedness under the Loan Documents or any guarantee thereof or that is unsecured or secured on a junior lien basis to the First Lien Notes, the Indebtedness under the Loan Documents or any guarantee thereof (excluding any intercompany Indebtedness between or among the Borrower and any of the Guarantors) and is not Immaterial Junior Debt.
		

		
			“Maturity Date” shall mean April 1, 2023.
		

		
			“Maximum Rate” shall have the meaning assigned to such term in Section 9.08.
		

		
			
		

		
			

		 

		

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			“MD&A” shall have the meaning assigned to such term in Section 5.04(a).
		

		
			“Moody’s” shall mean Moody’s Investors Service, Inc., or any successor thereto.
		

		
			“Mortgage” shall mean each Vessel Mortgage, each other mortgage, deed of trust, deed to secure debt and any other document or instrument under which any Lien on property owned or leased by any Collateral Grantor is granted to secure First Lien Obligations under any First Lien Document or under which rights or remedies with respect to any such Liens are governed, as the same may be amended, supplemented or modified from time to time.
		

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

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

		
			(1)        any gain or loss, together with any related provision for taxes on such gain or loss, realized in connection with (a) any Asset Sale or other asset dispositions (other than in the ordinary course of business) or (b) the disposition of any securities by such Person or any of the Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of the Restricted Subsidiaries; and
		

		
			(2)        any extraordinary gain or loss, together with any related provision for taxes on such extraordinary gain or loss.
		

		
			“Net Proceeds” shall mean the aggregate cash proceeds and Cash Equivalents received by the Borrower or any Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of (1) the reasonable and documented direct costs relating to such Asset Sale, including, without limitation, legal, accounting and investment banking fees, sales commissions, relocation expenses incurred as a result of the Asset Sale, and taxes paid or payable as a result of the Asset Sale after taking into account any available tax credits or deductions and any tax-sharing arrangements, (2) amounts required to be applied to the repayment of Indebtedness secured by a Lien on the properties or assets that were the subject of such Asset Sale (which Lien is and is permitted to be senior to the Liens securing the First Lien Notes and the guarantees thereof and the Indebtedness under the Loan Documents or is on property or assets that do not constitute Collateral for the First Lien Notes or the Indebtedness under the Loan Documents), or Indebtedness (other than Indebtedness that is subordinated in right of payment to the First Lien Notes or the guarantees thereof or the Indebtedness under the Loan Documents or that is secured by a Lien that is junior in priority to the Liens securing the First Lien Notes and the Indebtedness under the Loan Documents) which must by its terms, in order to obtain a necessary consent to such Asset Sale or by applicable law, be repaid out of the proceeds from such Asset Sale, and (3) any amounts to be set aside in any reserve established in accordance with GAAP or any amount placed in escrow, in either case for adjustment in respect of the sale price of such properties or assets, for indemnification
		

		
			
		

		
			

		 

		

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			obligations of the Borrower or any Restricted Subsidiaries in connection with such Asset Sale or for other liabilities associated with such Asset Sale and retained by the Borrower or any Restricted Subsidiaries until such time as such reserve is reversed or such escrow arrangement is terminated, in which case Net Proceeds shall include only the amount of the reserve so reversed or the amount returned to the Borrower or the Restricted Subsidiaries from such escrow arrangement, as the case may be.
		

		
			“New York UCC” shall mean the UCC as from time to time in effect in the State of New York.
		

		
			“Non-Consenting Lender” shall mean any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all affected Lenders in accordance with the terms of Section 9.07 and (ii) has been approved by the Required Lenders.
		

		
			“Non-Defaulting Lender” shall mean, at any time, each Lender that is not a Defaulting Lender at such time.
		

		
			“Non-Recourse Debt” shall mean Indebtedness:
		

		
			(1)        as to which neither the Borrower nor any of the Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) constitutes the lender;
		

		
			(2)        no default with respect to which (including any rights that the holders of the Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness of the Borrower or any of the Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to its Stated Maturity; and
		

		
			(3)        as to which the governing documentation provides that the lenders will not have any recourse to the stock or assets of the Borrower or any of the Restricted Subsidiaries.
		

		
			“Obligations” shall mean any principal, premium, if any, interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding), yield maintenance amounts, penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees, and other liabilities or amounts payable under the documentation governing any Indebtedness or in respect thereto.
		

		
			“OFAC” shall have the meaning assigned to such term in Section 3.24(a).
		

		
			“Offering Circular” shall mean the final Offering Circular, dated September 12, 2018, relating to the offering of the Initial First Lien Notes.
		

		
			
		

		
			

		 

		

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			“Officer” shall mean, with respect to any Person, the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, the Controller, the Secretary, any Manager, any Director, any Managing Director, or any Vice President of such Person.
		

		
			“Officers’ Certificate” shall mean a certificate signed on behalf of any Person by two Officers and/or directors, one of whom must be a Financial Officer of such Person.
		

		
			“Other Connection Taxes” shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Taxes (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement or any other Loan Document, or sold or assigned an interest in this Agreement or any other Loan Document).
		

		
			“Other Taxes” shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement or any other Loan Document, except such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.17(b)).
		

		
			“Owner’s Insurance Broker” shall have the meaning assigned to such term in Section 5.02(b).
		

		
			“Participant” shall have the meaning assigned to such term in Section 9.03(d).
		

		
			“Participant Register” shall have the meaning assigned to such term in Section 9.03(d).
		

		
			“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.
		

		
			“PDNL” shall mean Pacific Drillship Nigeria Limited, a private company limited by shares incorporated in the British Virgin Islands (company number 1852481), which is a 99.9% owned Subsidiary of PIDWAL on the Closing Date.
		

		
			“PDSI” shall mean Pacific Drilling Services, Inc., a Delaware corporation and a Subsidiary of the Borrower.
		

		
			“PDVIII” shall mean Pacific Drilling VIII Limited, a private company limited by shares incorporated in the British Virgin Islands and a Subsidiary of the Borrower.
		

		
			“Perfection Certificate” shall mean the Perfection Certificate substantially in the form of Exhibit III to the U.S. Security Agreement.
		

		
			
		

		
			

		 

		

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			“Permitted Business” shall mean a business in which the Borrower and the Restricted Subsidiaries were engaged on the Issue Date, as described in the Offering Circular, and any business reasonably related or complementary thereto.
		

		
			“Permitted Collateral Liens” shall mean Liens described in clauses (1), (5), (7), (8), (9), (10), (11), (12), (13), (14), (15), (20) and (22) of the definition of “Permitted Liens”;  provided that Liens described in clauses (1) (other than Liens on Accounts (as defined in the U.S. Security Agreement) of an acquired business securing Acquired Debt that are not incurred in connection with, or in contemplation of, the applicable merger, acquisition of assets or other transaction), (9), 10(a), 10(b), (13), (14) and (20) (other than Liens on Accounts of an acquired business securing Acquired Debt that are not incurred in connection with, or in contemplation of, the applicable merger, acquisition of assets or other transaction) of the definition of “Permitted Liens” shall not constitute Permitted Collateral Liens with respect to Collateral consisting of Accounts.
		

		
			“Permitted Debt” shall have the meaning assigned to such term in Section 6.03(b).
		

		
			“Permitted Holder” shall mean each of Strategic Value Partners, LLC, Victor Khosla, Midwood Holdings, LLC, and Marc Lasry.
		

		
			“Permitted Investments” shall mean:
		

		
			(1)        any Investment in the Borrower or in any Restricted Subsidiary;
		

		
			(2)        any Investment in cash or Cash Equivalents;
		

		
			(3)        any Investment by the Borrower or any Restricted Subsidiary in a Person, if as a result of such Investment:
		

		
			(a)        such Person becomes a Restricted Subsidiary; or
		

		
			(b)        such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Borrower or a Restricted Subsidiary;
		

		
			(4)        any Investment made as a result of the receipt of non-cash consideration from (a) an Asset Sale that was made pursuant to and in compliance with Section 6.04 or (b) a disposition of properties or assets that does not constitute an Asset Sale;
		

		
			(5)        any acquisition of assets or Capital Stock solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Borrower;
		

		
			(6)        any Investments received in compromise or resolution of obligations of trade creditors or customers that were incurred in the ordinary course of business of the Borrower or any of the Restricted Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the
		

		
			
		

		
			

		 

		

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			bankruptcy or insolvency of any trade creditor or customer and any Investments obtained in exchange for any such Investments;
		

		
			(7)        Investments represented by Hedging Obligations permitted by clause (vi) of Section 6.03(b);
		

		
			(8)        any guarantee of Indebtedness or other obligations of the Borrower or any Restricted Subsidiary permitted to be incurred under the First Lien Indenture and this Agreement;
		

		
			(9)        Investments that are in existence on the Closing Date, and any extension, modification or renewal thereof, but only to the extent not involving additional advances, contributions or other Investments of cash or other assets or other increases thereof (other than as a result of the accrual or accretion of interest or original issue discount or the issuance of pay-in-kind securities, in each case, pursuant to the terms of such Investment as in effect on the Closing Date);
		

		
			(10)      Investments acquired after the Closing Date as a result of the acquisition by the Borrower or any Restricted Subsidiary of another Person in compliance with this Agreement, including by way of a merger, amalgamation or consolidation, to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;
		

		
			(11)      loans or advances referred to in clause (v) of Section 6.05(b);
		

		
			(12)      Investments in any Person to the extent such Investments consist of prepaid expenses, negotiable instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits made in the ordinary course of business by the Borrower or any of its Restricted Subsidiaries; and
		

		
			(13)      So long as the Vessel Fleet Value is greater than $500.0 million, any repurchase, redemption, defeasance or other acquisition or retirement for value of the First Lien Notes.
		

		
			“Permitted Liens” shall mean:
		

		
			(1)        Liens on assets of the Borrower or the Guarantors securing First Lien Debt or Junior Lien Debt Incurred pursuant to clause (ii) or (xi) of Section 6.03(b);
		

		
			(2)        Liens in favor of the Borrower or any Guarantor or, if granted by any Person other than the Borrower or any Guarantor, Liens in favor of any Restricted Subsidiary;
		

		
			(3)        Liens on property of a Person existing at the time such Person is merged with or into or amalgamated or consolidated with the Borrower or any
		

		
			
		

		
			

		 

		

			39

		

		

			 

		

		

		
			Restricted Subsidiary; provided that such Liens were in existence prior to such merger, amalgamation or consolidation, were not incurred in contemplation thereof and do not extend to any assets other than those of the Person merged into or amalgamated or consolidated with the Borrower or any Restricted Subsidiary;
		

		
			(4)        Liens on property (including Capital Stock) existing at the time of acquisition of the property by the Borrower or any Restricted Subsidiary in compliance with the First Lien Indenture and this Agreement; provided that such Liens were in existence prior to such acquisition, and not incurred in contemplation of, such acquisition and do not extend to any assets other than those of the Person merged into or amalgamated or consolidated with the Borrower or any Restricted Subsidiary;
		

		
			(5)        Liens to secure the performance of statutory obligations, surety, customs, importation or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business (including Liens on cash or Cash Equivalents to secure letters of credit, bank guarantees and similar instruments issued in support of such obligations); provided that, in the case of any such Liens on assets of any Collateral Grantor, such Liens shall extend solely to cash and/or Cash Equivalents of such Collateral Grantor;
		

		
			(6)        Liens existing on the Closing Date (other than Liens referred to in clause (1) or (10) of this definition) and if such Liens are greater than $5.0 as listed on Schedule 1.01(L);
		

		
			(7)        Liens for taxes, assessments or governmental charges or claims (i) that are not yet delinquent or (ii) that are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted and for which any reserve or other appropriate provision as required in conformity with GAAP has been made therefor;
		

		
			(8)        Liens imposed by law, such as suppliers’, carriers’, warehousemen’s, landlords’ and mechanics’ Liens, in each case, incurred in the ordinary course of business, for amounts (i) not more than 30 days past due or (ii) that are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted and for which any reserve or other appropriate provision as required in conformity with GAAP has been made therefor;
		

		
			(9)        survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that 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 the applicable Person;
		

		
			(10)      Liens on the Collateral securing (a) the First Lien Notes (including Additional First Lien Notes issued in accordance with the First Lien Indenture)
		

		
			
		

		
			

		 

		

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			and the guarantees thereof, (b) the Second Lien PIK Notes and the guarantees thereof and (c) the Indebtedness under the Loan Documents;
		

		
			(11)      Liens to secure Indebtedness permitted to be Incurred under the First Lien Indenture and this Agreement to refinance any Indebtedness secured by Liens permitted to exist pursuant to clause (2), (4), (5), (7), (10) or this clause (11) of this definition (or Liens that otherwise replace Liens referred to in such clauses); provided, however, that;
		

		
			(a)        the new Lien is limited to all or part of the same property and assets covered by the initial Lien (plus improvements and accessions to such property, or proceeds or distributions thereof) or any related after-acquired property that, pursuant to any after-acquired property clauses in written agreements pursuant to which the original Lien arose, is required to be pledged to secure the original Indebtedness (plus improvements and accessions to such property, or proceeds or distributions thereof);
		

		
			(b)        the Indebtedness or other obligation secured by the new Lien is not increased to any amount greater than the sum of (i) the outstanding principal amount, or, if greater, committed amount, of the original Indebtedness or obligation and (ii) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding, refinancing, replacement, defeasance or discharge; and
		

		
			(c)        if the initial Lien secured Indebtedness that is subordinated in right of payment to the First Lien Notes (or a guarantee thereof), the Indebtedness under the Loan Documents, then the Indebtedness secured by the new Lien shall be so subordinated on terms at least as favorable to the holders of First Lien Notes and the Administrative Agent, as applicable;
		

		
			(12)      Liens arising by reason of any judgment, attachment, decree or order of any court or other governmental authority not giving rise to an Event of Default that are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted and for which any reserve or other appropriate provision as required in conformity with GAAP has been made therefor;
		

		
			(13)      Liens securing Cash Management Obligations owing to a bank and rights of setoff in favor of a bank, imposed by law or granted in the ordinary course of business on deposit accounts maintained with such bank and cash and Cash Equivalents in such accounts;
		

		
			(14)      Liens securing Hedging Obligations entered into in the ordinary course of business and not for (A) Hedging Obligations of the type in clause (3) of the definition thereof other than for fuel of the type used by the Borrower and its Subsidiaries in their business or (B) speculative purposes;
		

		
			
		

		
			

		 

		

			41

		

		

			 

		

		

		
			(15)      Liens arising from Vessel chartering, necessaries, drydocking, maintenance, repair, refurbishment, salvage (including contract salvage) or general average, Liens for wages of stevedores employed by the owner of such Vessel, the master of such Vessel or a charterer or lessee of such Vessel, the furnishing of supplies and bunkers to Vessels or masters’, officers’ or crews’ wages and maritime Liens, that, in the case of each of the foregoing, were incurred in the ordinary course of business of the Borrower or any Restricted Subsidiary, were not Incurred or created to secure the payment of Indebtedness and that in the aggregate do not materially adversely affect the value of the properties subject to such Liens or materially impair the use for the purposes of which such properties are held by the Borrower and its Restricted Subsidiaries;
		

		
			(16)      Liens arising under a contract over goods, documents of title to goods and related documents and insurances and their proceeds, in each case in respect of documentary credit transactions entered into with customers of the Borrower and the Restricted Subsidiaries in the ordinary course of business;
		

		
			(17)      Liens arising under any retention of title or conditional sale arrangement or arrangements having similar effect in respect of goods supplied in the ordinary course of business;
		

		
			(18)      Liens representing the interest in title of a lessor;
		

		
			(19)      Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness (so long as such defeasance, discharge or redemption is permitted under Section 6.01) or Liens arising under this Agreement in favor of the Collateral Agent and similar Liens in favor of other trustees, agents and representatives arising under instruments governing Indebtedness permitted to be incurred under this Agreement, provided that such Liens are solely for the benefit of the trustees, agents or representatives in their capacities as such and not for the benefit of the holders of such Indebtedness;
		

		
			(20)      Liens securing Indebtedness Incurred pursuant to clause (xii) of Section 6.03(b) (including Permitted Refinancing Indebtedness); provided that such Liens extend only to the assets purchased with the proceeds of such Indebtedness;
		

		
			(21)      Liens on the assets of PDVIII and PDSI to secure an arbitration award relating to the Zonda Arbitration; and
		

		
			(22)      Liens with respect to any Vessel for maritime torts with respect to damage resulting from allisions, collisions, cargo damage, property damage, conversion (wrongful possession), pollution, personal injury and death, maintenance and cure, and unseaworthiness, in each case, that are covered by insurance (subject to reasonable deductibles).
		

		
			
		

		
			

		 

		

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			“Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Borrower or any of the Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge, in whole or in part, other Indebtedness of the Borrower or any of the Restricted Subsidiaries (other than intercompany Indebtedness) (the “Refinanced Indebtedness”); provided that:
		

		
			(1)        the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount of the Refinanced Indebtedness (plus all accrued interest on the Refinanced Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith);
		

		
			(2)        such Permitted Refinancing Indebtedness has a final maturity date that is no earlier than (a) 180 days after the Maturity Date hereunder, and (b) 90 days after the maturity date of the First Lien Notes, and has a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of the Refinanced Indebtedness;
		

		
			(3)        if the Refinanced Indebtedness is (a) subordinated in right of payment to the First Lien Notes, the Indebtedness under the Loan Documents or a guarantee thereof, then such Permitted Refinancing Indebtedness is subordinated in right of payment to the First Lien Notes, the Indebtedness under the Loan Documents or such guarantee, as the case may be, or (b) pari passu in right of payment with the First Lien Notes, the Indebtedness under the Loan Documents or a guarantee thereof, then such Permitted Refinancing Indebtedness is subordinated to or pari passu in right of payment with the First Lien Notes, the Indebtedness under the Loan Documents or such guarantee, as the case may be, in the case of each of (a) and (b), on terms at least as favorable to the holders of First Lien Notes or the Administrative Agent, as applicable, as those contained in the documentation governing the Refinanced Indebtedness; and
		

		
			(4)        if the Borrower or a Guarantor is the issuer of, or otherwise an obligor in respect of the Refinanced Indebtedness, such Permitted Refinancing Indebtedness is not Incurred by any Restricted Subsidiary that is not the Borrower or a Guarantor.
		

		
			“Person” shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.
		

		
			“PIDWAL” shall mean Pacific International Drilling West Africa Ltd., a Nigeria limited liability company, which is indirectly 49% owned by the Borrower as of the Closing Date.
		

		
			“Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
		

		
			
		

		
			

		 

		

			43

		

		

			 

		

		

		
			such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
		

		
			“Plan Equity” shall mean any Capital Stock or other equity securities that were issued pursuant to the Reorganization Plan.
		

		
			“Platform” shall have the meaning assigned to such term in Section 9.01(d).
		

		
			“Pledge Agreement” shall mean each pledge agreement, share pledge agreement, equitable mortgage, mortgage of shares, share charge or similar instrument pursuant to which such Person grants to the Collateral Agent a Lien in Equity Interests in a Subsidiary directly owned by such grantor, in each case, as amended, restated, supplemented or otherwise modified from time to time.
		

		
			“Preferred Stock”  as applied to the Capital Stock of any Person, means Capital Stock of such Person of any class or classes (however designated) that ranks prior, as to the payment of dividends or as to the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of such Person, to shares of Capital Stock of any other class of such Person.
		

		
			“PTE” shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
		

		
			“Public Lender” shall have the meaning assigned to such term in Section 9.01(d).
		

		
			“Qualified Services Contract” shall mean, as of any date of determination, with respect to any Vessel acquired by, or committed to be delivered to, the Borrower or any of its Restricted Subsidiaries, a bona fide contract or series of contracts, together with any amendments, supplements or modifications thereto, that the Board of Directors of the Borrower, acting in good faith, designates as a “Qualified Services Contract” pursuant to a resolution of the Board of Directors of the Borrower, which contract or contracts:
		

		
			(1)        are between the Borrower or one of its Restricted Subsidiaries, on the one hand, and a Person that is not an Affiliate of the Borrower, on the other hand;
		

		
			(2)        provide for services to be performed by the Borrower or one or more of its Restricted Subsidiaries involving the use of such Vessel by the Borrower or one or more of its Restricted Subsidiaries, in either case for a minimum aggregate period of at least one year from (i) the date of determination or (ii) a future date that is no later than the date that is three months from the date of determination (the period during which such services are to be performed, the “Active Service Period”); and
		

		
			(3)        provide for a fixed or minimum day rate or fixed rate for such Vessel covering the entire Active Service Period contemplated by clause (2) above.
		

		
			
		

		
			

		 

		

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			For the avoidance of doubt, neither a letter of intent nor a letter of award with respect to a Vessel is a Qualified Services Contract.
		

		
			“Qualified Vessel” shall mean a 6th or 7th (or later) generation Vessel that is (i) subject to a Qualified Services Contract and (ii), in the case of any Vessel that is not a Vessel owned by the Borrower on the Issue Date, of substantially comparable (or better) quality and value as (or than) the Vessels owned by the Borrower on the Issue Date.
		

		
			“Ready for Sea Cost” shall mean, with respect to a Vessel to be acquired by the Borrower or any Restricted Subsidiary, the aggregate amount of all expenditures Incurred to acquire or construct and bring such Vessel to the condition and location necessary for its intended use, including any and all inspections, appraisals, repairs, modifications, additions, permits and licenses in connection with such acquisition or lease.
		

		
			“Receivable” shall mean and include, as to each Loan Party, all of such Loan Party’s accounts (as defined in Article 9 of the Uniform Commercial Code) and all of such Loan Party’s contract rights, instruments (including those evidencing indebtedness owed to such Loan Party by its Affiliates), documents, chattel paper (including electronic chattel paper), general intangibles relating to accounts, contract rights, instruments, documents and chattel paper, and drafts and acceptances, credit card receivables and all other forms of obligations owing to such Loan Party arising out of or in connection with the sale or lease of inventory or the rendition of services, all supporting obligations, guarantees and other security therefor, whether secured or unsecured, now existing or hereafter created, and whether or not specifically sold or assigned to the Collateral Agent.
		

		
			“Recipient” shall mean (a) the Administrative Agent and (b) any Lender, as applicable.
		

		
			“Redetermination Effective Date” shall have the meaning assigned to such term in Section 2.19(b).
		

		
			“Refinanced Indebtedness” shall have the meaning assigned to such term in the definition of “Permitted Refinancing Indebtedness”.
		

		
			“Register” shall have the meaning assigned to such term in Section 9.03(c).
		

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

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

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

		
			“Related Assets” shall mean, with respect to any Collateral Vessel, (i) proceeds of any insurance policies and contracts from time to time in force with respect to such Collateral Vessel, (ii) any requisition compensation payable in respect of any compulsory acquisition of
		

		
			
		

		
			

		 

		

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			such Collateral Vessel, (iii) any Earnings derived from the use or operation of such Collateral Vessel (other than Earnings payable to a Local Content Subsidiary) and/or any account to which such Earnings are deposited, (iv) any charters, operating leases, Vessel purchase options and related agreements with respect to such Collateral Vessel entered into, and any security or guarantee in respect of the charterer’s or lessee’s obligations under such charter, lease, Vessel purchase option or agreement and (v) any security interest in, or agreement or assignment relating to, any of the foregoing or any mortgage in respect of such Collateral Vessel; provided that Related Assets will not include any Superpriority Excluded Property.
		

		
			“Related Parties” shall mean, with respect to any Person, such Person’s Affiliates and the respective existing or perspective partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and their respective Affiliates.
		

		
			“Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into or through the environment or within, upon or underneath any building, structure, facility or fixture.
		

		
			“Relevant Governmental Body” shall mean the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto, including without limitation the Alternative Reference Rates Committee.
		

		
			“Removal Effective Date” shall have the meaning assigned to such term in Section 8.06(b).
		

		
			“Reorganization Plan” shall mean the Borrower’s joint plan of reorganization, dated as of July 31, 2018.
		

		
			“Required Lenders” shall mean, at any time, Lenders having Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders.  The Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.
		

		
			“Resignation Effective Date” shall have the meaning assigned to such term in Section 8.06(a).
		

		
			“Responsible Officer” of any Person shall mean any executive officer or Financial Officer of such Person and any other officer or similar official thereof responsible for the administration of the obligations of such Person in respect of this Agreement.
		

		
			“Restricted Investment” shall mean an Investment other than a Permitted Investment.
		

		
			“Restricted Payment” shall have the meaning assigned to such term in Section 6.01.
		

		
			
		

		
			

		 

		

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			“Restricted Subsidiary” shall mean any Subsidiary of the Borrower that is not then an Unrestricted Subsidiary; provided, however, that (i) upon the occurrence of an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be a Restricted Subsidiary and (ii) notwithstanding anything to the contrary in this Agreement, each Collateral Grantor shall at all times be a Restricted Subsidiary.
		

		
			“Revolving Credit Exposure” shall mean, as to any Lender at any time, the aggregate principal amount at such time of its outstanding Loans at such time.
		

		
			“Sale and Lease-Back Transaction” shall mean an arrangement relating to property now owned or hereafter acquired whereby the Borrower or a Restricted Subsidiary transfers such property to a Person and leases it from such Person.
		

		
			“Scheduled Redetermination” shall have the meaning assigned to such term in Section 2.19(b).
		

		
			“Screen Rate” shall mean, on any date of determination, a rate per annum equal to the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for deposits in the Dollars (as set forth on the Bloomberg LIBOR Screen Page as of 11:00 a.m., London time, two Business Days prior to such date or if such service does not exist to such other comparable publicly available service for displaying the eurodollar rates as may be selected by the Administrative Agent) for a period equal to three months.
		

		
			“SEC” shall mean the U.S. Securities and Exchange Commission.
		

		
			“Second Lien Note Indenture” shall mean the indenture, dated as of the Issue Date, by and between the Borrower, as issuer, and Wilmington Trust, National Association, as trustee and collateral agent, governing the Second Lien PIK Notes, as amended, restated, supplemented or otherwise modified from time to time.
		

		
			“Second Lien PIK Notes” shall mean the 11.000% / 12.000% Second Lien PIK Notes due 2024 issued under the Second Lien Note Indenture.
		

		
			“Secured Obligations” shall have the meaning assigned to such term in the U.S. Security Agreement.
		

		
			“Secured Parties” shall have the meaning assigned to such term in the U.S. Security Agreement.
		

		
			“Security Agreement” shall mean, collectively, (i) that certain U.S. First Lien Pledge and Security Agreement dated the date hereof among the Borrower, each of the grantors identified therein and the Collateral Agent (the “U.S. Security Agreement”) and (ii) each other security agreement or similar instrument executed by a Collateral Grantor pursuant to which such Person grants to the Collateral Agent a Lien on the assets owned by such Person, in each case, as amended, amended and restated, or supplemented from time to time in accordance with its terms.
		

		
			
		

		
			

		 

		

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			“SPV” shall have the meaning assigned to such term in Section 9.03(h).
		

		
			“S&P” shall mean Standard & Poor’s Ratings Service, or any successor thereto.
		

		
			“Stated Maturity” shall mean, with respect to any installment of interest or principal on any item or series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the Issue Date or, if such item or series is Incurred after the Issue Date, the date such item or series is Incurred.
		

		
			“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) expressed as a decimal 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 for Eurocurrency Liabilities (as defined in Regulation D of the Board).  The Loans shall be deemed to constitute Eurocurrency Liabilities (as defined in Regulation D of the Board) 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 the Administrative Agent or 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.
		

		
			“Subsidiary” shall mean, with respect to any specified Person:
		

		
			(1)        any corporation, limited liability company, association or other business entity (other than a partnership) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, limited liability company, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof);
		

		
			(2)        any partnership of which (a) more than 50% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof), whether in the form of general, special or limited partnership interests or otherwise, or (b) such Person or any Subsidiary of such Person is a controlling general partner or otherwise controls such entity; and
		

		
			(3)        any corporation, limited liability company, association or other business entity not referred to in clause (1) or (2) above the management of which is controlled, directly or indirectly, by such Person and the accounts of which are
		

		
			
		

		
			

		 

		

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			consolidated with those of such Person in its consolidated financial statements in accordance with GAAP.
		

		
			For the avoidance of doubt, as of the Closing Date, PIDWAL and PDNL are Subsidiaries of the Borrower.
		

		
			“Subsidiary Guarantor” shall mean each Subsidiary listed on Schedule 1.01, and each other Subsidiary that is or becomes a party to the Guarantee Agreement.  For the avoidance of doubt, PDVIII and PDSI shall not constitute Subsidiary Guarantors prior to the Zonda Release Date.
		

		
			“Superpriority Excluded Property” shall mean the following, whether now owned or at any time hereafter acquired by any Collateral Grantor or in which such Collateral Grantor now has or at any time in the future may acquire any right, title or interest and whether now existing or hereafter coming into existence:  (a)(i) all leasehold real property and (ii) all fee simple real property with a Fair Market Value at the time of acquisition less than $25.0 million; (b) each Drilling Contract if (but only to the extent that) the grant of a security interest therein would constitute a breach of a valid and enforceable restriction on the granting of a security interest therein or assignment thereof in favor of a third party; (c) all deposit accounts that are (i) established solely as payroll accounts or (ii) zero balance accounts; (d) all Equity Interests of Unrestricted Subsidiaries and Immaterial Subsidiaries; (e) any general intangibles, governmental approvals or other rights arising under any contracts, instruments, permits, licenses or other documents if (but only to the extent that) the grant of a security interest therein would constitute a breach of a valid and enforceable restriction on the granting of a security interest therein or assignment thereof in favor of a third party (other than (e) to the extent that any such restriction or prohibition would be rendered ineffective pursuant to the Uniform Commercial Code or any other applicable law (including Debtor Relief Laws) or principles of equity or (ii) to the extent that the other party has consented to the granting of a security interest therein or assignment thereof pursuant to the terms of the Collateral Documents or pursuant to a grant or assignment for security purposes generally); (f) any assets as to which the Administrative Agent reasonably determines that the cost or burden of obtaining a security interest therein is excessive in relation to the value of the security to be afforded thereby; and (g) any and all proceeds of any of the Superpriority Excluded Property to the extent constituting Superpriority Excluded Property described above (other than proceeds of a Drilling Contract assigned pursuant to an Earnings Assignment and proceeds of accounts receivable); provided that no property or assets securing any First Lien Obligations or any Junior Lien Obligations shall constitute Superpriority Excluded Property.
		

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

		
			“Term SOFR” shall mean the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
		

		
			
		

		
			

		 

		

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			“Total Commitment” shall mean, at any time, the aggregate amount of the Commitments, as in effect at such time.  The initial Total Commitment is $50,000,000.
		

		
			“Total Credit Exposure” shall mean, as to any Lender at any time, the unused Commitments and Revolving Credit Exposure of such Lender at such time.
		

		
			“Trade Date” shall have the meaning assigned to such term in Section 9.03(b).
		

		
			“Transactions” shall mean, collectively, (a) the execution, delivery and performance by the Loan Parties of the Loan Documents to which they are a party and (b) the payment of related fees and expenses (including accounting, attorney and other professional fees).
		

		
			“Trustee” shall mean Wilmington Trust, National Association, in its capacity as trustee under the First Lien Indenture, until a successor replaces it in accordance with the applicable provisions of the First Lien Indenture, and thereafter “Trustee” means each Person who is then a Trustee thereunder.
		

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

		
			“U.S. Security Agreement” shall have the meaning assigned to such term in the definition of “Security Agreement”.
		

		
			“U.S. Special Resolution Regime” shall mean each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
		

		
			“Unadjusted Benchmark Replacement” shall mean the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
		

		
			“Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code as in effect in the relevant jurisdiction from time to time.  Unless otherwise specified, references to the Uniform Commercial Code herein refer to the New York UCC.
		

		
			“Unqualified Vessel” shall mean any Vessel that is not a Qualified Vessel.
		

		
			“Unrestricted Cash” shall mean, as of any date of determination, the sum, without duplication, of the aggregate amount of cash and Cash Equivalents included in cash accounts that would be listed on the consolidated balance sheet of the Borrower, prepared in accordance with GAAP, as of such date to the extent such cash or Cash Equivalents would not be classified as “restricted” for financial statement purposes (unless so classified solely because of any provision under the Loan Documents or any other agreement or instrument governing other Indebtedness that is subject to the Collateral Agency Agreement or the Intercreditor Agreement governing the application thereof).
		

		
			“Unrestricted Subsidiary” shall mean:
		

		
			
		

		
			

		 

		

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			(1)        any Subsidiary of the Borrower that at the time of determination is an Unrestricted Subsidiary (as designated by the Borrower, as provided below); and
		

		
			(2)        any Subsidiary of an Unrestricted Subsidiary.
		

		
			The Borrower may designate any Subsidiary of the Borrower as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors of the Borrower unless such Subsidiary or any of its Subsidiaries owns any Equity Interests or Indebtedness of, or owns or holds any Lien on any property of, the Borrower or any Restricted Subsidiary (other than solely any Subsidiary of the Subsidiary to be so designated); provided that:
		

		
			(1)        to the extent any Indebtedness of such Subsidiary is not Non-Recourse Debt, any Guarantee or other credit support thereof by the Borrower or any Restricted Subsidiary is permitted by Section 6.01 and Section 6.03;
		

		
			(2)        except as permitted by Section 6.05, the Subsidiary to be so designated and each Subsidiary of such Subsidiary is not party to any agreement, contract, arrangement or understanding with the Borrower or any Restricted Subsidiary unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Borrower or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Borrower;
		

		
			(3)        the Subsidiary to be so designated and each Subsidiary of such Subsidiary is a Person with respect to which neither the Borrower nor any of the Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results;
		

		
			(4)        the Subsidiary to be so designated and each Subsidiary of such Subsidiary has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Borrower or any of the Restricted Subsidiaries; and
		

		
			(5)        the Subsidiary to be so designated and each Subsidiary of such Subsidiary is neither the owner of any interests in any Collateral Vessel nor (except for a Local Content Subsidiary) a party to a Drilling Contract.
		

		
			“USA PATRIOT Act” shall mean The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)).
		

		
			“Vessel” shall mean any drilling rig, drillship or other drilling vessel whose primary purpose is the exploration and production drilling for crude oil or hydrocarbons, in each case together with all related spares, equipment and any additions or improvements thereto to the extent such spares, equipment and additions or improvements are owned by the owner of the
		

		
			
		

		
			

		 

		

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			Vessel.  For the purpose of determining the number of “Vessels” owned by the Borrower and the Guarantors, any such related spares, equipment, additions or improvements shall constitute part of the drilling rig, drillship or other drilling vessel to which they relate and shall not constitute separate “Vessels.”
		

		
			“Vessel Fleet Value” shall mean, at any time of determination, the lesser of (a) the net book value of the Collateral Vessels at such time or (b) the fair market value of the Collateral Vessels pursuant to the most recent appraisal (using the lowest value in the range if a range is provided in such appraisal) delivered to the Administrative Agent by an Approved Firm at such time (as adjusted for any acquisitions or dispositions of Vessels since the date of the most recent appraisal).  Such appraisal shall be consistent with previous, similar appraisals conducted for the Borrower with respect to the Vessel Fleet Value.
		

		
			“Vessel Mortgage” shall mean each first preferred mortgage and any other instruments, such as statutory mortgages and deeds, over any Collateral Vessel, each duly registered in the Liberian ship registry (or other relevant registry) in favor of the Collateral Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.
		

		
			“Voting Stock”  of any specified Person as of any date means 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.
		

		
			“Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at any date, the number of years obtained by dividing:
		

		
			(1)        the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of such Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by
		

		
			(2)        the then outstanding principal amount of such Indebtedness.
		

		
			“Wholly-Owned Subsidiary” of any Person shall mean a Subsidiary of such Person, 100% of the outstanding Equity Interests of which (other than directors’ qualifying shares) are at the time owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person.
		

		
			“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 Part I of Subtitle E of Title IV of ERISA.
		

		
			“Write-Down and Conversion Powers” shall mean, 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.
		

		
			
		

		
			

		 

		

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			“Yield Maintenance Amount” shall mean, for any partial or total termination of the Commitments, including any such made in accordance with Section 2.09, Section 2.10(c), Section 2.11 or Section 7.01, an amount equal to:  (a) 2.0% of the principal amount of the Commitments terminated in the period beginning on the Closing Date and ending on, but including, the day prior to the first anniversary of the Closing Date and (b) 1.0% of the principal amount of the Commitments terminated in the period beginning on the first anniversary of the Closing Date and ending on, but including, the day prior to the second anniversary of the Closing Date.
		

		
			“Zonda Arbitration” shall mean the arbitration commenced in London, England by Samsung Heavy Industries Co., Ltd. on November 18, 2015 relating to the contract between Samsung Heavy Industries Co., Ltd. and the Borrower for the construction of the drillship known as the Pacific Zonda.
		

		
			“Zonda Plan” has the meaning assigned to it in the First Lien Indenture.
		

		
			“Zonda Release Date” shall mean the date of emergence from Chapter 11 bankruptcy proceeding for PDVIII and PDSI.
		

		
			SECTION 1.02     Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”,  “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”,  “hereto,” “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time and (f) 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.  Except as otherwise expressly provided herein, (i) any reference in this Agreement to any Loan Document shall mean such document as amended, restated, supplemented or otherwise modified from time to time and (ii) all terms of an accounting or financial nature shall be, to the extent applicable, construed in accordance with GAAP.
		

		
			
		

		
			

		 

		

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			ARTICLE II
		

		
			The Credits
		

		
			SECTION 2.01      Commitments.  Subject to the terms and conditions and relying upon the representations and warranties herein set forth, each Lender agrees, severally and not jointly, to make Loans to the Borrower, at any time and from time to time on or after the date hereof during the Effective Availability Period, and until the termination of the Commitment of such Lender in accordance with the terms hereof, in an aggregate principal amount at any time outstanding that will not result in such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment.  Within the limits set forth in the preceding sentence and subject to the terms, conditions and limitations set forth herein, the Borrower may borrow, pay or prepay and reborrow Loans.
		

		
			SECTION 2.02     Loans.  (a)  Each Loan shall be made by the Lenders ratably in accordance with their applicable Commitments; provided, however, that the failure of any Lender to make any Loan shall not in itself relieve any other Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender to make any Loan required to be made by such other Lender).  Each Loan shall be in an aggregate principal amount that is (i) an integral multiple of $1,000,000 and not less than $5,000,000 or (ii) equal to the remaining available balance of the applicable Commitments.
		

		
			(b)        Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds to such account as the Administrative Agent may designate not later than 1:00 p.m., New York City time, and the Administrative Agent upon verification that each Lender has funded its Loan, shall promptly credit the amounts so received to an account designated by the Borrower in the applicable Borrowing Request or, if a Loan shall not occur on such date because any condition precedent herein specified shall not have been met, return the amounts so received to the respective Lenders.  The Administrative Agent shall have no obligation to fund to the Borrower any amounts that a Lender fails to fund.
		

		
			SECTION 2.03     Borrowing Procedure.  In order to request a Loan, the Borrower shall notify the Administrative Agent of such request by submitting a Borrowing Request not later than 12:00 noon, New York City time, three Business Days before a proposed Loan.  Each such Borrowing Request shall be irrevocable and shall specify the following information:  (i) the date of such Loan (which shall be a Business Day); (ii) the number and location of the account to which funds are to be disbursed; and (iii) the amount of such Loan; provided,  however, that, notwithstanding any contrary specification in any Borrowing Request, each requested Loan shall comply with the requirements set forth in Section 2.02.  The Administrative Agent shall promptly advise the applicable Lenders of any notice given pursuant to this Section 2.03 (and the contents thereof), and of each Lender’s portion of the requested Loan.
		

		
			SECTION 2.04      Evidence of Debt; Repayment of Loans.  (a)  The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan of such Lender on the Maturity Date,
		

		
			
		

		
			

		 

		

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			together with accrued and unpaid interest of such amount to but excluding the date of payment thereof.
		

		
			(b)        Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement.
		

		
			(c)        The Administrative Agent shall maintain accounts in which it will record (i) the amount of each Loan made hereunder, (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 or any Subsidiary Guarantor and each Lender’s share thereof.
		

		
			(d)        The entries made in the accounts maintained pursuant to paragraphs (b) and (c) of this Section 2.04 shall be prima facie evidence of the existence and amounts of the obligations therein recorded absent manifest error; provided, in the event of any conflict between the entries made in the accounts maintained pursuant to paragraphs (b) and (c) of this Section 2.04, the accounts maintained by the Administrative Agent pursuant to paragraph (c) shall control in the absence of manifest error; provided,  however, that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans in accordance with their terms.
		

		
			(e)        Any Lender may request that Loans made by it hereunder be evidenced by a promissory note.  In such event, the Borrower shall execute and deliver to such Lender a promissory note payable to such Lender and its registered assigns and in substantially the form of Exhibit D.  Notwithstanding any other provision of this Agreement, in the event any Lender shall request and receive such a promissory note, the interests represented by such note shall at all times (including after any assignment of all or part of such interests pursuant to Section 9.03) be represented by one or more promissory notes payable to the payee named therein or its registered assigns.
		

		
			SECTION 2.05      Fees.  (a)  The Borrower agrees to pay to each Lender that is not a Defaulting Lender, through the Administrative Agent, on the last Business Day of March, June, September and December in each year and on each date on which any Commitment of such Lender shall expire or be terminated as provided herein, a commitment fee (a “Commitment Fee”) equal to 1.50% per annum on the average daily unused amount of the Commitment of such Lender during the preceding quarter (or other period commencing with the date hereof or ending with the Maturity Date or the date on which the Commitments of such Lender shall otherwise expire or be terminated, as applicable).  All Commitment Fees shall be computed on the basis of the actual number of days elapsed in a year of 360 days.
		

		
			(b)        The Borrower agrees to pay to the Administrative Agent, for its own account the Administrative Agent Fee in the amounts and as provided in the Administrative Agent Fee Letter.  Such annual Administrative Agent Fee will be in addition to reimbursement of the Administrative Agent’s reasonable and documented out-of-pocket expenses required in its
		

		
			
		

		
			

		 

		

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			capacity as Administrative Agent.  Once paid, the Administrative Agent Fee or any part thereof payable under this Agreement shall not be refundable under any circumstances.
		

		
			(c)        The Borrower agrees to pay to the Administrative Agent, for its own account the Closing Fee on the Closing Date in the amount and as provided in the Administrative Agent Fee Letter.
		

		
			(d)        All Fees shall be paid on the dates due, in immediately available funds, to the Administrative Agent for distribution, if and as appropriate, among the Lenders.  Once paid, none of the Fees shall be refundable under any circumstances.
		

		
			SECTION 2.06     Interest on Loans.  (a)  Subject to the provisions of Section 2.07, the Loans shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days and calculated from and including the date of such Loan to but excluding the date of repayment thereof) at a rate per annum equal to the Adjusted LIBO Rate plus the Applicable Percentage.
		

		
			(b)        Interest on each Loan shall be payable on the Interest Payment Dates except as otherwise provided in this Agreement.  The applicable date of the Interest Payment Date shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
		

		
			SECTION 2.07      Default Interest.  If (a) the Borrower shall default in the payment of any principal of or interest on any Loan or any fee or any other amount due hereunder or under any other Loan Document, by acceleration or otherwise or (b) if any Event of Default under Article VII has occurred and is continuing then, in the case of clause (a) of this Section 2.07, until such defaulted amount shall have been paid in full or, in the case of clause (b) of this Section 2.07, from the date of occurrence of such Event of Default and for so long as such Event of Default is continuing, to the extent permitted by law, all amounts outstanding under this Agreement and the other Loan Documents shall bear interest (after as well as before judgment), payable on demand, at a rate (computed on the basis of the actual number of days elapsed over a year of 360 days) equal to the rate that would be applicable to the Loans plus 3.00 % per annum.
		

		
			SECTION 2.08      Effect of Benchmark Transition Event.
		

		
			(a)        LIBO Notification.  The interest rate on the Loans is determined by reference to the LIBO Rate, which is derived from the London interbank offered rate.  The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on the Loans.  In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London
		

		
			
		

		
			

		 

		

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			interbank offered rate.  In the event that the London interbank offered rate is no longer available or in certain other circumstances as set forth in this Section 2.08, this Section 2.08 provides a mechanism for determining an alternative rate of interest.  The Administrative Agent will notify the Borrower, pursuant to this Section 2.08, in advance of any change to the reference rate upon which the interest rate on the Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “LIBO Rate” or with respect to any alternative or successor rate thereto, or replacement rate therefor or thereof, including, without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to this Section 2.08, will be similar to, or produce the same value or economic equivalence of, the LIBO Rate or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.
		

		
			(b)        Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, (i) upon the determination of the Administrative Agent (which shall be conclusive absent manifest error) that a Benchmark Transition Event has occurred or (ii) upon the occurrence of an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace the LIBO Rate with a Benchmark Replacement, by a written document executed by the Borrower and the Administrative Agent, subject to the requirements of this Section 2.08.  Notwithstanding the requirements of Section 9.07(b) or anything else to the contrary herein or in any other Loan Document, any such amendment with respect to a Benchmark Transition Event will become effective and binding upon the Administrative Agent, the Borrower and the Lenders at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders, and any such amendment with respect to an Early Opt-in Election will become effective and binding upon the Administrative Agent, the Borrower and the Lenders on the date that Lenders comprising the Majority Lenders have delivered to the Administrative Agent written notice that such Majority Lenders accept such amendment.  No replacement of the LIBO Rate with a Benchmark Replacement pursuant to this Section 2.08 will occur prior to the applicable Benchmark Transition Start Date.
		

		
			(c)        Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.
		

		
			(d)        Notices; Standards for Decisions and Determinations.  The Administrative Agent will promptly notify the Borrower and the Lenders in writing of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark
		

		
			
		

		
			

		 

		

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			Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 2.08 including, without limitation, any determination with respect to a tenor, comparable replacement rate or adjustment, or implementation of any Benchmark Replacement Rate Conforming Changes, or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding on all parties hereto absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.08 and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being hereby waived individually be each party hereto.
		

		
			(e)        Benchmark Unavailability Period.  During the continuation of a Benchmark Unavailability Period the Loans shall bear interest at the Alternate Base Rate plus the Applicable Percentage.
		

		
			SECTION 2.09   Termination and Reduction of Commitments.  (a)  The Commitments shall automatically terminate on the Maturity Date.
		

		
			(b)        Upon at least three Business Days’ prior irrevocable written notice to the Administrative Agent before 12:00 Noon New York City time, the Borrower may at any time in whole permanently terminate, or from time to time in part permanently reduce, the Commitments; provided,  however, that (i) each partial reduction of the Commitments shall be in an integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and (ii) the Total Commitment shall not be reduced to an amount that is less than the Aggregate Revolving Credit Exposure at the time.  A notice of termination or reduction may state that such notice is conditioned upon the effectiveness of other credit facilities, indentures or similar agreements or other transactions, in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
		

		
			(c)        Each reduction in the Commitments hereunder shall be made ratably among the Lenders in accordance with their respective Commitments.  The Borrower shall pay to the Administrative Agent for the account of the applicable Lenders, on the date of each termination or reduction, the Commitment Fees on the amount of the Commitments so terminated or reduced accrued to but excluding the date of such termination or reduction.
		

		
			(d)        On the date of each partial or total reduction of the Commitments the Borrower shall pay the applicable Yield Maintenance Amount on such terminated Commitment to the Administrative Agent; provided that, no Yield Maintenance Amount shall be due in the event the Borrower elects a total reduction of the Commitments permitted under Section 2.12.
		

		
			
		

		
			

		 

		

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			SECTION 2.10      Optional Prepayment.  (a)  The Borrower shall have the right at any time and from time to time to prepay the Loans, in whole or in part, upon at least one Business Days’ prior written notice to the Administrative Agent before 12:00 noon, New York City time; provided, however, that each partial prepayment shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000.
		

		
			(b)        Each notice of prepayment shall specify the prepayment date and the principal amount of each Loan (or portion thereof) to be prepaid, shall be irrevocable unless conditioned upon a refinancing, and shall commit the Borrower to prepay such Loan by the amount stated therein on the date stated therein.  Subject to Section 2.10(c), all prepayments under this Section 2.10 shall be without premium or penalty.  All prepayments under this Section 2.10 shall be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding the date of payment and any applicable Yield Maintenance Amount.
		

		
			(c)        All prepayments made after the Effective Availability Period shall result in the permanent reduction of the Commitments in an amount equal to the principal being repaid and shall include any applicable Yield Maintenance Amount on such amount.
		

		
			SECTION 2.11      Mandatory Prepayments.  (a)  In the event of any termination of all the Commitments, the Borrower shall, on the date of such termination, repay or prepay all its outstanding Loans as well as any applicable Yield Maintenance Amount.  If, after giving effect to any partial reduction of the Commitments or at any other time, the Aggregate Revolving Credit Exposure would exceed the Total Commitment, then the Borrower shall, on the date of such reduction or at such other time, repay or prepay the Loans in an amount sufficient to eliminate such excess as well as any applicable Yield Maintenance Amount.
		

		
			(b)        If the Borrower has not applied the Net Proceeds from an Asset Sale in compliance with Section 6.04(c) within the time periods set forth therein, the Borrower may prepay the First Lien Notes and the Second Lien PIK Notes in an amount equal to the pro rata portion of such Net Proceeds that the lenders thereunder opt to receive pursuant to the requirements of Section 4.10(e) of the First Lien Indenture and Second Lien Note Indenture if after giving pro forma effect to such prepayment the Vessel Fleet Value would be greater than $500.0 million.
		

		
			(c)        If the lenders under the First Lien Indenture and the Second Lien Note Indenture do not elect to receive all or a portion of any prepayment that would otherwise be due to them from the Net Proceeds of an Asset Sale as set forth in Section 2.11(b) above, the Borrower shall use such amount to prepay the Loans, together with accrued but unpaid interest on the Loans at such time within five (5) Business Days after expiration of the asset sale offers required to be conducted pursuant to Section 4.10(e) of the First Lien Indenture and the Second Lien Note Indenture; provided that any prepayment made pursuant to this Section 2.11(e) after the Effective Availability Period shall permanently reduce the Commitments by an amount equal to such Net Proceeds.
		

		
			(d)        If the Vessel Fleet Value is less than $500.0 million at the time of the receipt of Net Proceeds from an Asset Sale, the Borrower shall prepay the Loans outstanding together with accrued and unpaid interest and any Yield Maintenance Amount thereon within
		

		
			
		

		
			

		 

		

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			two (2) Business Days after receipt of such Net Proceeds and permanently reduce the Commitments by an amount equal to such Net Proceeds.
		

		
			(e)        If the the Vessel Fleet Value is less than $500.0 million at the time of receipt of Net Proceeds from insurance proceeds, the Borrower shall prepay the Loans outstanding together with accrued and unpaid interest and any Yield Maintenance Amount thereon within two (2) Business Days after receipt of such Net Proceeds from such insurance proceeds and permanently reduce the Commitments by an amount equal to such Net Proceeds from such insurance proceeds.
		

		
			(f)        The Borrower shall deliver to the Administrative Agent, at the time of each repayment or prepayment required under this Section 2.11, (i) a certificate signed by a Financial Officer of the Borrower setting forth in reasonable detail the calculation of the amount of such repayment or prepayment and (ii) in the case of any repayment or prepayment prior to the Maturity Date, by or before 2:00 PM New York City time at least three days prior irrevocable written notice of such repayment or prepayment.  Each notice of repayment or prepayment shall specify the repayment or prepayment date, the principal amount of the Loans to be repaid or prepaid. Repayments or prepayments of Loans under this Section 2.11 shall be subject to any applicable Yield Maintenance Amount, but shall otherwise be without premium or penalty, and shall be accompanied by accrued and unpaid interest on the principal amount to be repaid or prepaid to but excluding the date of payment and any applicable Yield Maintenance Amount.
		

		
			SECTION 2.12      Increased Costs.
		

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

		
			(i)         impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets or liabilities of, deposits with or for the account of, or credit extended to or participated in by, any Lender (except any reserve requirement reflected in the Adjusted LIBO Rate);
		

		
			(ii)        subject any Lender to any Taxes of any kind whatsoever with respect to the Loan made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Indemnified Taxes and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender); or
		

		
			(iii)      impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender;
		

		
			and the result of any of the foregoing shall be to increase the cost to such Lender of making any Loan or of maintaining its obligation to make any such Loan, or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, (A) the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered (except for Indemnified Taxes and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender) or (B) the Borrower may elect to terminate all of the Commitments pursuant to Section 2.09 by providing prior irrevocable written notice to
		

		
			

		 

		

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			the Administrative Agent within three Business Days of receipt of notice thereof, in which case the Borrower shall not be liable for such additional amount or amounts.
		

		
			(b)        Capital Requirements.  If any Lender shall have determined that any Change in Law affecting such Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital adequacy or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Commitment of such Lender or the Loans made by such Lender, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy or liquidity), then from time to time the Borrower (i) will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered (except for Indemnified Taxes and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender) or (ii) may elect to terminate all of the Commitments pursuant to Section 2.09 by providing prior irrevocable written notice to the Administrative Agent within three Business Days of receipt of notice thereof, in which case the Borrower shall not be liable for such reduction suffered.
		

		
			(c)        Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section 2.12 and delivered to the Borrower, shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.
		

		
			(d)        Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to this Section 2.12 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section 2.12 for any increased costs or expenses incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or expenses or reductions, and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or expenses or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).
		

		
			SECTION 2.13     Pro Rata Treatment.  Each Loan, each payment or prepayment of principal of any Loan, each payment of interest on the Loans, each payment of the Commitment Fees, each payment of the Yield Maintenance Amount, and each reduction of the Commitments shall be allocated pro rata among the Lenders in accordance with their respective Commitments (or, if such Commitments shall have expired or been terminated, in accordance with the respective principal amounts of their outstanding Loans).  Each Lender agrees that in computing such Lender’s portion of any Loan to be made hereunder, the Administrative Agent may, in its reasonable discretion, round each Lender’s percentage of such Loan to the next higher or lower whole Dollar amount.
		

		
			SECTION 2.14      Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any
		

		
			
		

		
			

		 

		

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			principal of or interest or Yield Maintenance Amount on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest and Yield Maintenance Amount thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest and Yield Maintenance Amount on their respective Loans and other amounts owing them; provided that:
		

		
			(i)         if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and
		

		
			(ii)        the provisions of this paragraph shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).
		

		
			The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation, but only to the extent that such consent does not increase the aggregate liability of the Borrower.
		

		
			SECTION 2.15     Payments.  The Borrower shall make each payment (including principal of or interest on any Loan or any Fees or any Yield Maintenance Amount or other amounts) hereunder and under any other Loan Document not later than 12:00 noon, New York City time, on the date when due in immediately available Dollars, without setoff, defense or counterclaim.  Each such payment shall be made to the Administrative Agent at its Beneficiary Bank:  The Bank of New York Mellon ABA:  021-000-018, Account Name:  Angelo, Gordon Energy Servicer, LLC.  All payments received by the Administrative Agent after 12:00 noon, New York City time, may be deemed received on the next succeeding Business Day (in the Administrative Agent’s sole discretion).  The Administrative Agent shall promptly distribute to each Lender any payments actually received by the Administrative Agent on behalf of such Lender.  Except as otherwise expressly provided herein, whenever any payment (including principal of or interest on any Loan, Yield Maintenance Amount or any Fees or other amounts) hereunder or under any other Loan Document shall become due, or otherwise would occur, on a day that is not a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of interest or Fees, if applicable.
		

		
			
		

		
			

		 

		

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			SECTION 2.16      Taxes.  (a)  Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under this Agreement or any other Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
		

		
			(b)        Payments of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
		

		
			(c)        Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.16) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
		

		
			(d)        Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand thereof, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.03(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with this Agreement or any other Loan Document and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this paragraph.
		

		
			
		

		
			

		 

		

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			(e)        Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.16, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
		

		
			(f)        Status of Lenders.
		

		
			(i)         Any Lender that is entitled to an exemption from, or reduction of, withholding Tax with respect to payments made under this Agreement or any other Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding, such as an IRS Form W-9, W-8BEN, W-8BEN-E (or other such applicable IRS tax form).  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.16(f)(ii)) 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, if a payment made to a Lender under this Agreement or any other Loan Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower 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 Section 2.16(f)(ii), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
		

		
			(iii)      Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
		

		
			
		

		
			

		 

		

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			(g)        Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts paid pursuant to this Section 2.16), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments, or additional amounts paid, made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph, in no event will any indemnified party be required to pay any amount to any indemnifying party pursuant to this paragraph the payment of which would place such indemnified party in a less favorable net after-Tax position than such indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
		

		
			(h)        Survival.  Each party’s obligations under this Section 2.16 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
		

		
			(i)         Defined Terms.  For purposes of this Section, the term “applicable law” includes FATCA.
		

		
			SECTION 2.17      Mitigation Obligations; Replacement of Lenders.  (a)  Designation of a Different Lending Office.  If any Lender requests compensation under Section 2.12, or requires the Borrower to pay additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.16, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
		

		
			(b)        Replacement of Lenders.  If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance
		

		
			
		

		
			

		 

		

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			with Section 2.17(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 9.03), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
		

		
			(i)         the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 9.03;
		

		
			(ii)        such Lender shall have received payment in immediately available funds of an amount equal to the outstanding principal of Loans, accrued interest thereon, any Yield Maintenance Amount then due to such Lender and accrued fees of such Lender and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
		

		
			(iii)      in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.16, such assignment will result in a reduction in such compensation or payments thereafter;
		

		
			(iv)       such assignment does not conflict with applicable law; and
		

		
			(v)        in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
		

		
			A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
		

		
			SECTION 2.18    Defaulting Lender.  (a)  Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:
		

		
			(i)         Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.
		

		
			(ii)        Defaulting Lender Waterfall.  Any payment of principal, interest, fees, Yield Maintenance Amount or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.05 shall be applied at such time or times as may be determined by the Administrative Agent as follows:  first, to the payment of any
		

		
			

		 

		

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			amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan 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; third, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.01 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with the Commitments without giving effect to Section 2.18(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
		

		
			(iii)      Certain Fees.  No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).
		

		
			(b)        Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with the Commitments (without giving effect to Section 2.18(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided,  further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
		

		
			
		

		
			

		 

		

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			SECTION 2.19      Availability Termination Date.
		

		
			(a)        From and after the Closing Date to but excluding the date that is eighteen months thereafter, the Availability Termination Date shall be August 7, 2021.  The Availability Termination Date shall be subject to further adjustment as set forth in this Section 2.19.
		

		
			(b)        Commencing August 7, 2021, the Availability Termination Date shall be redetermined semi-annually in accordance with this Section 2.19 (each such redetermination, a “Scheduled Redetermination”), and such redetermined Availability Termination Date shall become effective and applicable to the Borrower, the Administrative Agent, and the Lenders on August 7 and February 7 of each year (each such, a “Redetermination Effective Date”).  For the avoidance of doubt, the Availability Termination Date on any Redetermination Effective Date may remain August 7, 2021.
		

		
			(c)        Prior to each Redetermination Effective Date, the Administrative Agent and each Lender in its sole discretion shall assess or reassess in accordance with each Lender’s lending practices then in effect for loans of this nature, the Vessel Fleet Value at such time and such other credit factors (including the assets, liabilities, cash flow, business, properties, prospects, management and ownership of the Borrowers) which the Lenders in their sole discretion deem significant in determining whether (i) to extend the Availability Termination Date and (ii) any such extension shall be for all or a portion of the Commitments.  The Administrative Agent shall inform the Borrower in writing at least two (2) Business Days prior to each Redetermination Effective Date with respect to the specifics of the redetermined, if any, Availability Termination Date.
		

		
			(d)        No mandatory prepayments of the Loans shall be required during the Availability Period, other than pursuant to Section 2.09 or Section 2.11, even after the Availability Termination Date; provided, if the principal amount of the Loans outstanding on the Availability Termination Date is less than the aggregate Commitments on such date, the Commitments shall be reduced by such difference and such reduction shall be treated as a reduction of Commitments in accordance with Section 2.09.
		

		
			(e)        The Borrower expressly acknowledges that (i) the Lenders have no obligation to make any Loans or fund any Borrowing Requests on or after the Availability Termination Date, (ii) the Lenders may not extend the Availability Termination Date at all, or may only extend the Availability Termination Date for a shorter period of time than that remaining until the Maturity Date, (iii) the Lenders may reduce the Commitments for any extension of the Availability Termination Date to an amount less than the total Commitments, and (iv) any extension of the Availability Termination Date is subject to the individual credit processes of each Lender, exercised in each Lender’s sole discretion.
		

		
			ARTICLE III
		

		
			Representations and Warranties
		

		
			The Borrower represents and warrants to the Administrative Agent, the Collateral Agent and each of the Lenders that:
		

		
			
		

		
			

		 

		

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			SECTION 3.01     Organization; Powers.  The Borrower and each of the Restricted Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has all requisite power and authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (c) is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except where the failure so to qualify, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, and (d) has the power and authority to execute, deliver and perform its obligations under each of the Loan Documents and each other agreement or instrument contemplated thereby to which it is or will be a party and, in the case of the Borrower, to borrow and otherwise obtain credit hereunder.
		

		
			SECTION 3.02      Authorization.  The Transactions (a) have been duly authorized by all requisite corporate, limited liability company, partnership and, if required, stockholder, partner or member action, in each case, to the extent applicable, by each of the Borrower and the other Loan Parties party thereto and (b) will not (i) violate (A) any applicable provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or other constitutive documents or by-laws of the Borrower or any Restricted Subsidiary, (B) any applicable order of any Governmental Authority or (C) any applicable provision of any material indenture, agreement or other instrument to which the Borrower or any Restricted Subsidiary is a party or by which any of them or any of their property is or may be bound (other than Permitted Liens), (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such material indenture, agreement or other instrument (other than Permitted Liens) or (iii) result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by  the Borrower or any Restricted Subsidiary (other than any Lien created hereunder or under the Collateral Documents).
		

		
			SECTION 3.03    Enforceability.  This Agreement has been duly executed and delivered by the Borrower and constitutes, and each other Loan Document when executed and delivered by each Loan Party party thereto will constitute, a legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms.
		

		
			SECTION 3.04    Governmental Approvals.  No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with the Transactions, except for (a) the filing of Uniform Commercial Code financing statements, and the filing of Collateral Documents and related filings in the applicable filing offices of the appropriate jurisdictions in order to register and perfect the Collateral Agent’s Liens on the Collateral and (b) such as have been made or obtained and are in full force and effect.
		

		
			SECTION 3.05     Financial Statements.  The Borrower has heretofore furnished to the Administrative Agent the (a) audited consolidated balance sheets and related statements of income, stockholder’s equity and cash flows of the Borrower and its subsidiaries as of and for the fiscal years ended on December 31, 2018, 2017 and 2016, each audited by and accompanied by the unqualified opinion of KPMG LLP, independent public accountants and (b) its unaudited consolidated balance sheets and related statements of income, stockholder’s equity and cash flow
		

		
			
		

		
			

		 

		

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			of the Borrower and its Subsidiaries as of and for the portion of the fiscal year ended September 30, 2019, certified by its chief financial officer.  Such financial statements present fairly the financial condition and results of operations and cash flows of the Borrower and its subsidiaries as of such dates and for such periods.  Except for the financial statements delivered pursuant to Section 3.05(b), such balance sheets and the notes thereto disclose all material liabilities, direct or contingent, of the Borrower and its subsidiaries as of the dates thereof.  Such financial statements were prepared in accordance with GAAP applied on a consistent basis.
		

		
			SECTION 3.06     No Material Adverse Change.  No event, change or condition has occurred that has had, or could reasonably be expected to have, a material adverse effect on the business, assets, liabilities, operations, condition (financial or otherwise), operating results or prospects of the Borrower and the Subsidiaries, taken as a whole, since December 31, 2018.
		

		
			SECTION 3.07     Title to Properties; Possession Under Leases.  (a)  Each of the Borrower and the Restricted Subsidiaries has good and marketable title to, or valid leasehold interests in, all its material properties and assets, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties and assets for their intended purposes.  All such material properties and assets are free and clear of Liens, other than Permitted Liens.
		

		
			(b)        Each of the Borrower and the Restricted Subsidiaries has complied, in all material respects, with all obligations under all material leases to which it is a party and all such leases are in full force and effect.  Each of the Borrower and the Restricted Subsidiaries enjoys peaceful and undisturbed possession under all such material leases, except to the extent not reasonably likely to result in a Material Adverse Effect.
		

		
			SECTION 3.08      Subsidiaries.  (a)  Schedule 3.08(a) sets forth as of the Closing Date a complete and accurate list of all Subsidiaries of the Borrower, the percentage ownership interest of the Borrower or any other Subsidiary of the Borrower therein and the jurisdiction of incorporation of each such Subsidiary.  The shares of capital stock or other ownership interests so indicated on Schedule 3.08(a) are fully paid and non-assessable and are owned by the Borrower or any Subsidiary of the Borrower, directly or indirectly, free and clear of all Liens, other than Permitted Liens.
		

		
			(b)        Schedule 3.08(b) sets forth as of the Closing Date a complete and accurate list of all Unrestricted Subsidiaries, the percentage ownership interest of the Borrower or any other Subsidiary of the Borrower therein and the jurisdiction of incorporation of each Unrestricted Subsidiary.  The shares of capital stock or other ownership interests so indicated on Schedule 3.08(b) are fully paid and non-assessable and are owned by the Borrower or any Subsidiary of the Borrower, directly or indirectly, free and clear of all Liens.
		

		
			SECTION 3.09     Litigation; Compliance with Laws.  (a)  Except as set forth on Schedule 3.09, there are no actions, suits or proceedings at law or in equity or by or before any Governmental Authority now pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any Restricted Subsidiary or any business, property or rights of any such Person (i) that involve any Loan Document or the Transactions or (ii) as to which there is a
		

		
			
		

		
			

		 

		

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			reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.
		

		
			(b)        None of the Borrower or any of the Restricted Subsidiaries or any of their respective material properties or assets is in violation of, nor will the continued operation of their material properties and assets as currently conducted violate, any law, rule or regulation (including any zoning, building, Environmental Law, ordinance, code or approval or any building permits), or is in default with respect to any judgment, writ, injunction, decree or order of any Governmental Authority, where such violation or default could reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.10     Agreements.  (a)  None of the Borrower or any of the Restricted Subsidiaries is a party to any agreement or instrument or subject to any corporate restriction that has resulted or could reasonably be expected to result in a Material Adverse Effect.
		

		
			(b)        None of the Borrower or any of the Restricted Subsidiaries is in default in any manner under any provision of any material indenture or other agreement or instrument evidencing Indebtedness, or any other material agreement or instrument to which it is a party or by which it or any of its properties or assets are or may be bound, where such default has resulted or could reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.11      Federal Reserve Regulations.  (a)  None of the Borrower or any of the Restricted Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock.
		

		
			(b)        No part of the proceeds of any Loan will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is inconsistent with, the provisions of the regulations of the Board, including Regulation T, U or X.
		

		
			SECTION 3.12      Investment Company Act.  None of the Loan Parties is or is required to be registered as an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.
		

		
			SECTION 3.13      Use of Proceeds.  The Borrower will use the proceeds of the Loans only for the purposes specified in the introductory statement  to this Agreement.
		

		
			SECTION 3.14      Tax Returns.  Each of the Borrower and the Restricted Subsidiaries has filed or caused to be filed all Federal and all material state, local and foreign Tax returns or reports required to have been filed by it and has paid or caused to be paid all Taxes due and payable by it and all assessments received by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Restricted Subsidiary, as applicable, shall have set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) to the extent that the failure to do so would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
		

		
			
		

		
			

		 

		

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			SECTION 3.15      Disclosure.  (a)  No information, report, financial statement, exhibit or schedule furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of any Loan Document or included therein or delivered pursuant thereto contained, contains or will contain any material misstatement of fact or omitted, omits or will omit to state any material fact necessary in order to make the statements contained therein, in the light of the circumstances under which, and as of the date, they were, are or will be made, not misleading; provided that to the extent any such information, report, financial statement, exhibit or schedule was based upon or constitutes a forecast or projection, the Borrower represents only that it acted in good faith and utilized reasonable assumptions (based upon accounting principles consistent with the historical audited financial statements of the Borrower) and due care in the preparation of such information, report, financial statement, exhibit or schedule.
		

		
			(b)        As of the Closing Date, the information included in the Beneficial Ownership Certification provided on or prior to the Closing Date to any Lender in connection with this Agreement is true and correct in all respects.
		

		
			SECTION 3.16     Employee Benefit Plans.  Each of the Borrower and its ERISA Affiliates is in compliance with the applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder, except as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other ERISA Events, could reasonably be expected to result in a Material Adverse Effect.  The present value of all benefit liabilities under each Plan (based on the assumptions used for purposes of Accounting Standards Codification Topic 715) did not, as of the last annual valuation date applicable thereto, exceed the Fair Market Value of the assets of such Plan by an amount that could reasonably be expected to result in a Material Adverse Effect, and the present value of all benefit liabilities of all underfunded Plans (based on the assumptions used for purposes of Accounting Standards Codification Topic 715) did not, as of the last annual valuation dates applicable thereto, exceed the Fair Market Value of the assets of all such underfunded Plans by an amount that could reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.17     Environmental Matters.  Except as set forth in Schedule 3.17 and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, none of the Borrower or any of the Restricted Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any pending or threatened claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.
		

		
			SECTION 3.18     Insurance.  Schedule 3.18 sets forth a true, complete and correct description of all insurance maintained by the Borrower or by the Borrower for its Subsidiaries as of the Closing Date.  As of such date, such insurance is in full force and effect and all premiums have been duly paid.  The Borrower and the Subsidiaries have insurance in such amounts and covering such risks and liabilities as are in accordance with normal industry practice.
		

		
			
		

		
			

		 

		

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			SECTION 3.19     Collateral Documents.  The Security Agreement, upon execution and delivery thereof by the parties thereto, will create in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral (as defined in the U.S. Security Agreement) and the proceeds thereof and (i) when the Pledged Collateral (as defined in the U.S. Security Agreement) in which a security interest can be perfected under the Uniform Commercial Code by control of such Pledged Collateral is delivered to the Collateral Agent together with undated proper instruments of assignment duly executed by the applicable Loan Party in blank, if applicable, the Liens created under the Security Agreement shall constitute fully perfected first priority Liens on, and security interest in, all right, title and interest of the Loan Parties in such Pledged Collateral, in each case prior and superior in right to any other Person, and (ii) when financing statements in appropriate form are filed in the offices specified on Schedule 3.19(a), the Lien created under the Security Agreement will constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral (other than Intellectual Property (as defined in the U.S. Security Agreement)) in which a security interest can be perfected under the Uniform Commercial Code by the filing of a financing statement, in each case prior and superior in right to any other Person, other than with respect to Permitted Collateral Liens.
		

		
			SECTION 3.20     Location of Real Property, Leased Premises and Collateral Vessels.  (a)  Schedule 3.20(a) lists completely and correctly as of the Closing Date all real property with a Fair Market Value at the time of acquisition of $25 million or more owned by the Borrower and the Subsidiaries and the addresses thereof.  The Borrower and the Subsidiaries own in fee all the real property set forth on Schedule 3.20(a).
		

		
			(b)        Schedule 3.20(b) lists completely and correctly as of the Closing Date all real property leased by the Borrower and the Subsidiaries and the addresses thereof.  The Borrower and the Subsidiaries have valid leases in all the real property set forth on Schedule 3.20(b).
		

		
			(c)        Schedule 3.20(c) lists completely and correctly as of the Closing Date each Collateral Vessel (as defined in the U.S. Security Agreement), including (i) the exact legal name of such Collateral Vessel, (ii) a description of such Collateral Vessel (including, but not limited to, the type of ship, generation and operating status) and (iii) the country in which such Collateral Vessel is chartered.
		

		
			SECTION 3.21     Labor Matters.  As of the Closing Date, there are no strikes, lockouts or slowdowns against the Borrower or any Restricted Subsidiary pending or, to the knowledge of the Borrower, threatened, except as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.  Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (a) the hours worked by and payments made to employees of the Borrower and the Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law dealing with such matters; (b) all payments due from the Borrower or any Restricted Subsidiary, or for which any claim may be made against the Borrower or any Restricted Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been in all material respects paid or accrued as a liability on the books of the Borrower or such Restricted Subsidiary; and (c) the consummation of the Transactions will not
		

		
			
		

		
			

		 

		

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			give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which the Borrower or any Restricted Subsidiary is bound.
		

		
			SECTION 3.22    Solvency.  On the Closing Date, after giving effect to the Transactions, and immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan, (a) the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the present fair saleable value of the property of each Loan Party will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (c) each Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) each Loan Party will not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted following the Closing Date.
		

		
			SECTION 3.23      Intellectual Property; Licenses, etc.  Each of the Borrower and the Restricted Subsidiaries owns, licenses or possesses the right to use, all of the trademarks, service marks, trade names, copyrights, patents, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are used in and necessary for the operation of its respective business, as currently conducted, and, to the knowledge of the Borrower, such IP Rights do not violate the rights of any other Person, except to the extent such failure to own, license or possess or such violations, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.  Set forth on Schedule 3.23 is a complete and accurate list of all material registered or applications to register IP Rights owned or exclusively licensed by the Borrower or any Restricted Subsidiary as of the Closing Date.  To the knowledge of the Borrower, the conduct of the business of each of the Borrower and the Restricted Subsidiaries as currently conducted does not infringe upon or violate any rights held by any other Person, except for such infringements and violations which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.  No claim or litigation regarding any of the foregoing is pending or, to the knowledge of the Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
		

		
			SECTION 3.24     Sanctioned Persons; PATRIOT Act; FCPA.  (a)  None of the Borrower or any Restricted Subsidiary nor, to the knowledge of the Borrower, any director, officer, agent, employee or Affiliate of the Borrower or any Restricted Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) or sanctions under other similar applicable laws of other jurisdictions in which it conducts business with the result that any Lender would be in violation of applicable law; and the Borrower will not directly or indirectly use the proceeds of the Loans or otherwise make available such proceeds to any Person, for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC or sanctions under other similar applicable laws of other jurisdictions in which it conducts business with the result that any Lender would be in violation of applicable law.
		

		
			
		

		
			

		 

		

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			(b)        Each of the Borrower and the Subsidiaries is in compliance, in all material respects, with the USA PATRIOT Act.
		

		
			(c)        No proceeds of any Loan will be authorized for use, directly, or to its knowledge indirectly, for any payments to any officer or employee of a government, or government-controlled entity, 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 United States Foreign Corrupt Practices Act of 1977, as amended or any other applicable anti-bribery or anti-corruption law.
		

		
			ARTICLE IV
		

		
			Conditions of Lending
		

		
			The obligations of the Lenders to make Loans hereunder are subject to the satisfaction of the following conditions:
		

		
			SECTION 4.01      All Credit Events.  On the date of each Loan (each such event being called a “Credit Event”):
		

		
			(a)        The Administrative Agent shall have received a Borrowing Request for such Loan as required by Section 2.03 (or such notice shall have been deemed given in accordance with Section 2.03).
		

		
			(b)        The representations and warranties set forth in Article III and in each other Loan Document shall be true and correct (i) in the case of the representations and warranties qualified as to materiality, in all respects and (ii) otherwise, in all material respects, in each case on and as of the date of such Credit Event with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date.
		

		
			(c)        At the time of and immediately after such Credit Event, no Default or Event of Default shall have occurred and be continuing
		

		
			(d)        On a pro forma basis giving effect to such Credit Event, the Borrower’s ratio of (i) the sum of (A) Eligible Accounts Receivable as of such date and (B) Unrestricted Cash as of such date to (ii) the Total Commitments as of such date is not less than 1.3 to 1.0.
		

		
			Each Credit Event shall be deemed to constitute a representation and warranty by the Borrower on the date of such Credit Event as to the matters specified in paragraphs (b) through (d) of this Section 4.01.
		

		
			SECTION 4.02      First Credit Event.  On the Closing Date:
		

		
			(a)        The Administrative Agent (or its counsel) and, where applicable, the Collateral Agent (or its counsel) shall have received (i) from each Loan Party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence reasonably satisfactory to the Administrative Agent (which may include facsimile or PDF transmission of a
		

		
			

		 

		

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			signed signature page of this Agreement) that such party has signed a counterpart of this Agreement, (ii) duly executed copies (or facsimile or PDF copies) of the Loan Documents by each Loan Party party thereto, (iii) duly executed copies (or facsimile or PDF copies) of any promissory notes requested by a Lender pursuant to Section 2.04(e) at least two (2) Business Day prior to the Closing Date, payable to each such requesting Lender, (iv) on behalf of itself and the Lenders, a favorable written opinion of (A) Jones Walker LLP, counsel for the Borrower, in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent, and (B) each local counsel listed on Schedule 4.02(a), in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent, in each case (1) dated the Closing Date, (2) addressed to the Administrative Agent, the Collateral Agent and the Lenders, and (3) covering such other matters relating to the Loan Documents and the Transactions as the Administrative Agent and the Collateral Agent shall reasonably request, and the Borrower hereby requests such counsel to deliver such opinions and (v) a deposit account control agreement with respect to each Collateral Account in form and substance reasonably satisfactory to the Administrative Agent and duly executed by the Borrower.
		

		
			(b)        All legal matters incident to this Agreement, the Loans and extensions of credit hereunder and the other Loan Documents shall be satisfactory to the Lenders and to the Administrative Agent.
		

		
			(c)        The Administrative Agent shall have received (i) a copy of the certificate or articles of incorporation, certificate of formation or other constitutive documents, as applicable, including all amendments thereto, of each Loan Party, certified as of a recent date by the Secretary of State of the state of its organization, and a certificate as to the good standing of each Loan Party as of a recent date, from such Secretary of State (or, in each case, a comparable governmental official, if available); (ii) a certificate of the Secretary or Assistant Secretary of each Loan Party dated the Closing Date and certifying (A) that attached thereto is a true and complete copy of the by-laws or operating, management or partnership agreement, as applicable, of such Loan Party as in effect on the Closing Date and at all times since a date prior to the date of the resolutions described in clause (B) below, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors, board of managers or members or other governing body, as applicable, of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such Person is a party and, in the case of the Borrower, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that the certificate or articles of incorporation or formation or other constitutive documents, as applicable, of such Loan Party have not been amended since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (i) above, and (D) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Loan Party; (iii) a certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the certificate pursuant to clause (ii) above; and (iv) such other documents as the Lenders or the Administrative Agent may reasonably request.
		

		
			(d)        The Administrative Agent shall have received a certificate, dated the Closing Date and signed by a Financial Officer of the Borrower, confirming compliance with the conditions precedent set forth in paragraphs (b), (c) and (d) of Section 4.01.
		

		
			
		

		
			

		 

		

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			(e)        Each of the Administrative Agent and the Collateral Agent shall have received all Fees and other amounts due and payable on or prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document.
		

		
			(f)        The Collateral Documents shall have been duly executed by each Loan Party that is to be a party thereto and shall be in full force and effect on the Closing Date.  The Collateral Agent on behalf of the Secured Parties shall have a security interest in the Collateral of the type and priority described in each Collateral Document.
		

		
			(g)        Each document (including any Uniform Commercial Code financing statements) required by the Collateral Documents or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Collateral Agent, for the benefit of the Lenders and the other Secured Parties, a perfected Lien on the Collateral described therein, prior and superior in right to any other person (subject to Permitted Collateral Liens), shall have been filed, registered or recorded or delivered to the Administrative Agent in proper form for filing, registration or recordation.  The Collateral Agent shall have received all Pledged Collateral (as defined in the U.S. Security Agreement) required to be delivered to the Collateral Agent pursuant to the Security Agreement, together with undated proper instruments of assignment duly executed by the applicable Loan Party in blank and such other instruments or documents as are necessary to perfect the Collateral Agent’s Lien or as the Collateral Agent may reasonably request.
		

		
			(h)        The Administrative Agent and the Collateral Agent shall have received a Perfection Certificate with respect to the Loan Parties dated the Closing Date and duly executed by a Responsible Officer of the Borrower, and shall have received the results of a search of the Uniform Commercial Code filings (or equivalent filings) made with respect to the Loan Parties in the states (or other jurisdictions) of formation of such Persons, in which the chief executive office of each such Person is located and in the other jurisdictions in which such Persons maintain property, in each case as indicated on such Perfection Certificate, together with copies of the financing statements (or similar documents) disclosed by such search, and accompanied by evidence satisfactory to the Administrative Agent that the Liens indicated in any such financing statement (or similar document) would be permitted under Section 6.06 or have been or will be contemporaneously released or terminated.
		

		
			(i)         The Administrative Agent shall have received a copy of, or a certificate as to coverage under, the insurance policies required by Section 5.02 and the applicable provisions of the Collateral Documents, each of which shall be endorsed or otherwise amended to include a customary lender’s loss payable endorsement and to name the Collateral Agent as additional insured, in form and substance satisfactory to the Administrative Agent.
		

		
			(j)         The Lenders shall have received the financial statements and opinions referred to in Section 3.05, none of which shall demonstrate a material adverse change in the financial condition of the Borrower from (and shall not otherwise be materially inconsistent with) the financial statements or forecasts previously provided to the Lenders.
		

		
			
		

		
			

		 

		

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			(k)        The Administrative Agent shall have received a certificate, in form and substance satisfactory to the Administrative Agent, from the chief financial officer of the Borrower certifying that the Borrower and the Subsidiaries, on a consolidated basis after giving effect to the Transactions to occur on the Closing Date, are solvent.
		

		
			(l)         All requisite Governmental Authorities and third parties shall have approved or consented to the Transactions and the other transactions contemplated hereby to the extent required, all applicable appeal periods shall have expired and there shall not be any pending or threatened litigation, governmental, administrative or judicial action that could reasonably be expected to restrain, prevent or impose burdensome conditions on the Transactions or the other transactions contemplated hereby.
		

		
			(m)       The Lenders shall have received, at least three Business Days prior to the Closing Date, to the extent requested sufficiently in advance thereof, an IRS Form W-9 (or other applicable tax form), and all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.
		

		
			(n)        To the extent that any Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least three Business Days prior to the Closing Date, any Lender that has requested, in a written notice to the Borrower sufficiently in advance thereof, a Beneficial Ownership Certification in relation to the Borrowers shall have received such Beneficial Ownership Certification.
		

		
			(o)        After giving effect to the Transactions the Borrower shall have Unrestricted Cash of not less than $250.0 million and the Borrower shall deliver to the Administrative Agent a Certificate of Unrestricted Cash to that effect.
		

		
			ARTICLE V
		

		
			Affirmative Covenants
		

		
			The Borrower covenants and agrees with each Lender that so long as this Agreement shall remain in effect and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and Yield Maintenance Amounts and all other expenses or amounts (other than contingent amounts not yet due) payable under any Loan Document shall have been paid in full, unless the Required Lenders shall otherwise consent in writing, the Borrower will, and will cause each of the Restricted Subsidiaries to:
		

		
			SECTION 5.01      Existence; Compliance with Laws; Businesses and Properties.  (a)  Do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence, except as otherwise expressly permitted under Section 6.04; provided that any Subsidiary of the Borrower may be dissolved or liquidated in the ordinary course of business if it is no longer used or useful in the business of the Borrower or any Restricted Subsidiary.
		

		
			(b)        Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in full force and effect the rights, licenses, permits, franchises, authorizations, patents, copyrights, trademarks and trade names material to the conduct of its business; maintain
		

		
			

		 

		

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			and operate such business in substantially the manner in which it is presently conducted and operated; comply in all material respects with all applicable laws, rules, regulations and decrees and orders of any Governmental Authority, whether now in effect or hereafter enacted (including the FCPA and OFAC); and at all times maintain and preserve all property material to the conduct of such business and keep such property in good repair, working order and condition (ordinary wear and tear and loss or damage by casualty or condemnation excepted) and from time to time make, or cause to be made, all needful and proper repairs, renewals, additions, improvements and replacements thereto necessary in order that the business carried on in connection therewith may be properly conducted at all times.
		

		
			SECTION 5.02     Insurance.  (a)  The Borrower will, and will cause each of its Restricted Subsidiaries to, (i) keep all material property necessary to the business of the Borrower and its Restricted Subsidiaries in good working order and condition (ordinary wear and tear and loss or damage by casualty or condemnation excepted) with such exceptions as would not reasonably be expected to have a material adverse effect on the operations, business, properties or financial condition of the Borrower and its Restricted Subsidiaries, taken as a whole, and (ii) furnish to the Collateral Agent, at the written request of the Administrative Agent, a complete description of the material terms of insurance carried on the Collateral Vessels.
		

		
			(b)        The Borrower will, and will cause each of its Restricted Subsidiaries to:
		

		
			(i)         insure and keep each Collateral Vessel insured or cause or procure the Collateral Vessel to be insured and to be kept insured at no expense to the Administrative Agent or the Collateral Agent in regard to (collectively, the “Insurances”):
		

		
			(A)       hull and machinery (including increased value insurance);
		

		
			(B)       war risks (including common conditions and exclusions);
		

		
			(C)       protection and indemnity risks (including vessel pollution risks);
		

		
			(D)       Mortgagee’s interest risks (including additional perils pollution);
		

		
			(E)       loss of hire, to the extent reasonably deemed prudent by the Borrower in light of the cost of obtaining such insurance; and
		

		
			(F)        such other insurances as a prudent owner of similar vessels of the same age and type would obtain or would legally be required to obtain when operating in the same trade and geographic area as such Collateral Vessel, as well as any insurances required to meet the requirements of the jurisdiction where such Collateral Vessel is employed with named windstorm coverage exclusions while a Collateral Vessel is operating in the Gulf of Mexico;
		

		
			provided that neither the Borrower nor any of the Restricted Subsidiaries shall be required to procure or maintain any insurance otherwise required to be procured or
		

		
			
		

		
			

		 

		

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			maintained under this clause (b), if such insurance is not commercially available in the commercial insurance market.
		

		
			(ii)        effect the Insurances or cause or procure the same to be effected:
		

		
			(A)       in such amounts and upon such terms and with such deductibles as shipowners engaged in the same or similar business and similarly situated would deem commercially prudent under the circumstances; and
		

		
			(B)       through the owner’s approved broker (the “Owner’s Insurance Broker”) and reputable independent insurance companies and/or underwriters (including mutual insurance schemes and /or captive insurance schemes) in Europe, North America, the Far East and other established insurance markets except that the insurances against protection and indemnity risks may be effected by the entry of the Collateral Vessels with protection and indemnity associations which are members of the International Group Agreement or, if the International Group Agreement has disbanded and there is no successor or replacement body of associations, other leading protection and indemnity associations and the insurances against war risks may be effected by the entry of the Collateral Vessels with leading war risks associations (hereinafter called the “Insurers”);
		

		
			(iii)      renew or replace all such Insurances or cause or procure the same to be renewed or replaced before the relevant policies or contracts expire and to procure that the Owner’s Insurance Broker and/or the relevant protection and indemnity association or war risks association shall promptly confirm in writing to the Administrative Agent, upon its request, as and when each such renewal or replacement is effected;
		

		
			(iv)       duly and punctually pay, or cause duly and punctually to be paid, all premiums, calls, contributions or other sums payable in respect of all such Insurances, to produce or to cause to be produced all relevant receipts when so required by the Administrative Agent or Collateral Agent, and duly and punctually to perform and observe or to cause duly and punctually to be performed and observed any other obligations and conditions under all such Insurances;
		

		
			(v)        procure that all policies, binders, cover notes or other instruments of the Insurances referred to in clauses (A), (B) and (E) of clause (i) above shall be taken out in the name of the Borrower or any Subsidiary Guarantor or a Restricted Subsidiary, with the Collateral Agent as an additional insured (without liability for premiums), as their respective interests may appear, and shall incorporate a loss payable clause naming the Collateral Agent as loss payee prepared in compliance with the terms of the Insurance Assignment;
		

		
			(vi)       procure that, upon request of the Administrative Agent or Collateral Agent, originals or copies of all such instruments of Insurances shall be from
		

		
			
		

		
			

		 

		

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			time to time delivered to the Administrative Agent or Collateral Agent after receipt by a Restricted Subsidiary or the Borrower thereof;
		

		
			(vii)      not employ any Collateral Vessel or suffer any Collateral Vessel to be employed otherwise than in conformity with the terms of all policies, bindings, cover notes or other instruments of the Insurances (including any warranties express or implied therein) without first obtaining the written consent of the Insurers to such employment (if required by such Insurers) and complying with such requirements as to extra premiums or otherwise as the Insurers may prescribe;
		

		
			(viii)    cause any proceeds in respect of the Insurances referred to in paragraph (i) above (except clauses (C), (D) and, as applicable, (F) of such paragraph) to be paid to the Borrower or any Subsidiary Guarantor that then owns any Collateral Vessel or is an Internal Charterer (subject to provisions as to named insureds, additional insureds and loss payees in favor of the Collateral Agent as required by this Section 5.02);
		

		
			(ix)       upon the request of the Administrative Agent or Collateral Agent, do all things necessary, proper and desirable, and execute and deliver all documents and instruments, to enable the Administrative Agent or Collateral Agent, as applicable, to collect or recover any moneys to become due in respect of the Insurances.
		

		
			SECTION 5.03      Obligations and Taxes.  Pay its Indebtedness and other obligations promptly and in accordance with their terms and pay and discharge promptly when due all material Taxes before the same shall become delinquent or in default, as well as all lawful claims for labor, materials and supplies or otherwise that, if unpaid, might give rise to a Lien (other than Permitted Collateral Liens) upon such properties or any part thereof; provided,  however, that such payment and discharge shall not be required with respect to any such obligation, claim or Tax so long as the validity or amount thereof shall be contested in good faith by appropriate proceedings and the Borrower shall have set aside on its books adequate reserves with respect thereto in accordance with GAAP and such contest operates to suspend collection of the contested obligation, Tax, assessment or charge and enforcement of a Lien.
		

		
			SECTION 5.04     Financial Statements, Reports, etc.  In the case of the Borrower, furnish to the Administrative Agent, which shall furnish to each Lender:
		

		
			(a)        within 120 days after the end of each fiscal year (or so long as the Borrower is then subject to Section 13(a) or 15(d) of the Exchange Act, by the time period required under the rules of the SEC for the filing of an annual report for each fiscal year), an annual report on Form 10-K (or any successor form) containing, whether or not required, the Borrower’s audited consolidated financial statements, a report thereon by the Borrower’s certified independent accountants and a Management’s Discussion and Analysis of Financial Condition and Results of Operations (the “MD&A”) for such fiscal year;
		

		
			(b)        within 75 days after the end of each of the first three fiscal quarters of each fiscal year (or so long as the Borrower is then subject to Section 13(a) or 15(d) of the Exchange Act, by the time period required under the rules of the SEC for the filing of any quarterly reports for such fiscal quarter), reports on Form 10-Q (or any successor form)
		

		
			

		 

		

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			containing, whether or not required, the Borrower’s unaudited quarterly consolidated financial statements (including a balance sheet and statement of income, changes in stockholders’ equity and cash flow) and an MD&A (or equivalent disclosure) for and as of the end of such fiscal quarter (with comparable financial statements for the corresponding fiscal quarter of the immediately preceding fiscal year);
		

		
			(c)        within five Business Days after the end of each calendar month, a statement of Unrestricted Cash as of the end of such month, certified by a Financial Officer in the form of Exhibit E hereto;
		

		
			(d)        concurrently with any delivery of financial statements under paragraph (a) or (b) of this Section 5.04, a certificate of the accounting firm (in the case of paragraph (a)) or Financial Officer (in the case of paragraph  (b)) opining on or certifying such statements (which certificate, when furnished by an accounting firm, may be limited to accounting matters and disclaim responsibility for legal interpretations) and, in the case of paragraphs (a) and (b), a certificate of a Financial Officer certifying that no Event of Default or Default has occurred and is continuing or, if such an Event of Default or Default has occurred and is continuing, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto;
		

		
			(e)        within 90 days after the beginning of each fiscal year of the Borrower (beginning with the fiscal year beginning January 1, 2020), a detailed consolidated budget for such fiscal year (including a projected consolidated balance sheet and related statements of projected operations and cash flows as of the end of and for such fiscal year and setting forth the assumptions used for purposes of preparing such budget) and, promptly when available, any significant revisions of such budget;
		

		
			(f)        at or prior to such times as would be required to be filed or furnished to the SEC if the Borrower was subject to Section 13(a) or 15(d) of the Exchange Act (whether or not the Borrower is then subject to such requirements), current reports on Form 8-K that the Borrower would have been required to file or furnish pursuant thereto;
		

		
			(g)        promptly after the request by any Lender or the Administrative Agent, all documentation and other information that such Lender or the Administrative Agent, as applicable, reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and the Beneficial Ownership Regulation;
		

		
			(h)        promptly after the reasonable request by the Administrative Agent or any Lender, copies of (i) any documents described in Section 101(k)(1) of ERISA that the Borrower or any of its ERISA Affiliates may request with respect to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of ERISA that the Borrower or any of its ERISA Affiliates may request with respect to any Multiemployer Plan; provided that if the Borrower or any of its ERISA Affiliates has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, the Borrower or the applicable ERISA Affiliate shall promptly make a request for such documents or notices from such administrator or sponsor and shall provide copies of such documents and notices promptly after receipt thereof;
		

		
			
		

		
			

		 

		

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			(i)         promptly, from time to time, such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary of the Borrower, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender, acting through the Administrative Agent, may reasonably request;
		

		
			(j)         at any time Loans are outstanding, within fifteen (15) days after the end of each month an accounts receivable report in such form and detail as the Administrative Agent may request;
		

		
			(k)        within thirty (30) days after the end of each fiscal year, a desktop appraisal of all of the Borrower’s and its Subsidiaries’ Vessels; and
		

		
			(l)         on or before the tenth (10th) day after delivery of the financial statements required by Section 5.04(a) and Section 5.04(b), at the request of the Administrative Agent, the Borrower shall host a call with the Administrative Agent and the Lenders to discuss the Borrower’s operating results for such quarter and such other matters reasonably requested by the Administrative Agent.
		

		
			The Borrower shall be deemed to have furnished such reports referred to in clauses (a), (b) and (f) above to the Administrative Agent if the Borrower has filed such reports with the SEC via the EDGAR filing system and such reports are publicly available.  If, notwithstanding the foregoing, the SEC will not accept the Borrower’s filings for any reason, the Borrower will provide the reports referred to in clauses (a), (b) and (f) above to the Administrative Agent within the time periods that would apply to non-accelerated filers if the Borrower were required to file those reports with the SEC.
		

		
			If the Borrower has designated any Unrestricted Subsidiaries, then the quarterly and annual financial information required by this Section 5.04 shall include a reasonably detailed presentation of the financial condition and results of operations of the Unrestricted Subsidiaries separate from the financial condition and results of operations of the Borrower and the Restricted Subsidiaries.
		

		
			SECTION 5.05    Notices.  Promptly after any Officer of the Borrower obtains knowledge thereof, the Borrower will furnish to the Administrative Agent (for distribution to each Lender) written notice of the following:
		

		
			(a)        any Event of Default or Default, specifying the nature and extent thereof and the corrective action (if any) taken or proposed to be taken with respect thereto;
		

		
			(b)        the filing or commencement of, or any threat or notice of intention of any Person to file or commence, any action, suit or proceeding, whether at law or in equity or by or before any Governmental Authority, against the Borrower or any of its Affiliates that could reasonably be expected to result in a Material Adverse Effect;
		

		
			(c)        the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;
		

		
			
		

		
			

		 

		

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			(d)        the termination of any Material Contract prior to completion of the services or work to be performed or completed thereunder; and
		

		
			(e)        any development that has resulted in, or could reasonably be expected to result in, a Material Adverse Effect.
		

		
			SECTION 5.06   Information Regarding Collateral.  (a)  Furnish to the Administrative Agent prompt written notice (and in any event within 30 calendar days or such longer period as the Administrative Agent shall agree in its sole discretion) of any change (i) in any Loan Party’s corporate name, (ii) in any Loan Party’s identity or corporate structure or (iii) in any Loan Party’s Federal Taxpayer Identification Number or organizational identification number. The Borrower agrees to provide the Administrative Agent with prior written notice (or such later notice as the Administrative Agent shall agree in its sole discretion) of any change in the jurisdiction of organization or formation of any Loan Party.  The Borrower agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made within the relevant time frame under the Uniform Commercial Code or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral.  The Borrower also agrees promptly to notify the Administrative Agent if any material portion of the Collateral is damaged or destroyed.
		

		
			(b)        Each year, at the time of delivery of the annual financial statements with respect to the preceding fiscal year pursuant to Section 5.04(a), deliver to the Administrative Agent, with a copy to the Collateral Agent, a certificate of a Financial Officer of the Borrower setting forth the information required pursuant to Section 2 of the Perfection Certificate or confirming that there has been no change in such information since the date of the Perfection Certificate delivered on the Closing Date or the date of the most recent certificate delivered pursuant to this Section 5.06.
		

		
			SECTION 5.07    Maintaining Records; Access to Properties and Inspections; Maintenance of Ratings.  Keep proper books of record and account in which full, true and correct entries in conformity with GAAP and all requirements of law are made of all material dealings and transactions in relation to its business and activities.  Each Loan Party will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender to visit and inspect, at the cost of the Borrower, the financial records and the properties of such Person at reasonable times during normal business hours and as often as reasonably requested (but no more than twice per fiscal year of the Borrower, unless an Event of Default has occurred and is continuing at the time of such visit) and to make extracts from and copies of such financial records, and permit any representatives designated by the Administrative Agent or any Lender to discuss the affairs, finances and condition of such Person with the officers thereof and independent accountants therefor.
		

		
			SECTION 5.08     Use of Proceeds.  Use the proceeds of the Loans only for the purposes specified in the introductory statement to this Agreement.
		

		
			SECTION 5.09     Employee Benefits.  (a) Comply in all material respects with the applicable provisions of ERISA and the Code and (b) furnish to the Administrative Agent as
		

		
			
		

		
			

		 

		

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			soon as possible after, and in any event within ten days after any Officer of the Borrower or any ERISA Affiliate knows or has reason to know that, any ERISA Event has occurred that, alone or together with any other ERISA Event could reasonably be expected to result in liability of the Borrower or any ERISA Affiliate in an aggregate amount exceeding $1,000,000, a statement of a Financial Officer of the Borrower setting forth details as to such ERISA Event and the action, if any, that the Borrower proposes to take with respect thereto.
		

		
			SECTION 5.10    Compliance with Environmental Laws.  Comply, and use commercially reasonable efforts to cause all lessees and other Persons occupying or operating any properties of the Borrower or the Subsidiaries to comply, in all material respects with all Environmental Laws applicable to its operations and properties; obtain and renew all environmental permits necessary for its operations and properties; and conduct any response or remedial action required under and in accordance with Environmental Laws; provided,  however, that none of the Borrower or the Subsidiaries shall be required to undertake any response or remedial action required under Environmental Laws to the extent that its obligation to do so is being contested in good faith and by proper proceedings, and appropriate reserves are being maintained with respect to such circumstances in accordance with GAAP.
		

		
			SECTION 5.11     Preparation of Environmental Reports.  If a Default caused by reason of a breach of Section 3.17 or Section 5.10 shall have occurred and be continuing for more than 20 days without the Borrower or any Restricted Subsidiary commencing activities reasonably likely to cure such Default, at the written request of the Required Lenders through the Administrative Agent, provide to the Lenders within 45 days after such request, at the expense of the Loan Parties, an environmental compliance audit or other assessment report regarding the matters which are the subject of such Default, prepared by an environmental consulting firm reasonably acceptable to the Administrative Agent and indicating the presence or absence of Hazardous Materials or other violations of Environmental Laws and the estimated cost of any compliance or remedial action in connection with such Default.
		

		
			SECTION 5.12    Further Assurances.  Execute any and all further documents, financing statements, agreements and instruments, and take all further action (including filing Uniform Commercial Code and other financing statements, mortgages and deeds of trust) that may be required under applicable law, or that the Required Lenders, the Administrative Agent or the Collateral Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order to grant, preserve, protect and perfect the validity and first priority of the security interests created or intended to be created by the Collateral Documents.  If, after the Closing Date, (i) the Borrower acquires or creates any Restricted Subsidiary (other than an Immaterial Subsidiary), (ii) as of the date of any financial statements delivered pursuant to Section 5.04, a Restricted Subsidiary that was previously an Immaterial Subsidiary has ceased to meet the definition thereof (but remains a Restricted Subsidiary), or (iii) a third party consent is no longer required in order for PIDWAL to provide a Guarantee (but PIDWAL remains a Restricted Subsidiary and is not an Immaterial Subsidiary), or, with respect to PDVIII and PDSI, the Zonda Release Date occurs, then the Borrower will cause PIDWAL or such other Subsidiary, as the case may be, to, within 20 Business Days of such event, become a Loan Party and execute amendments to the Collateral Documents pursuant to which it will grant a Lien on any Collateral held by it in favor of the Collateral Agent, for the benefit of the Lenders, and become a Collateral Grantor thereunder, and cause such Liens to be perfected as required thereby.  The Borrower will
		

		
			

		 

		

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			not be obligated to seek to obtain any third party consent for PIDWAL to provide a guarantee.  The Borrower shall, and shall cause each other Collateral Grantor to, at the Borrower’s sole cost and expense:  (a) at the request of the Administrative Agent, execute and deliver all such agreements and instruments and take all further action as may be reasonably necessary or desirable (i) to describe more fully or accurately the property intended to be Collateral or the obligations intended to be secured by any Collateral Document and/or (ii) to continue and maintain the Collateral Agent’s first-priority perfected security interest in the Collateral (subject to Permitted Collateral Liens); and (b) at the request of the Administrative Agent, file any such notice filings or other agreements or instruments as may be reasonably necessary or desirable under applicable law to perfect the Liens created by the Collateral Documents.  Such security interests and Liens will be created under the Collateral Documents in form and substance reasonably satisfactory to the Administrative Agent, and the Borrower shall deliver or cause to be delivered to the Collateral Agent, within 60 days or such longer period as the Administrative Agent may agree in its sole discretion, all such instruments and documents (including legal opinions, title insurance policies and lien searches) as the Administrative Agent shall reasonably request to evidence compliance with this Section 5.12.  The Borrower agrees to provide such evidence as the Administrative Agent shall reasonably request as to the perfection and priority status of each such security interest and Lien.  In furtherance of the foregoing, the Borrower will give prompt notice to the Administrative Agent of the acquisition by it or any of the Restricted Subsidiaries of an ownership interest in  real property (or any interest in real property) having a Fair Market Value in the aggregate in excess of $25,000,000.
		

		
			SECTION 5.13      Designation of Restricted and Unrestricted Subsidiaries.  (a)  The Board of Directors of the Borrower may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if:
		

		
			(i)         the Borrower would be permitted to make (i) a Permitted Investment or (ii) an Investment pursuant to Section 6.01, in either case, in an amount equal to the Fair Market Value of all outstanding Investments owned by the Borrower and the Restricted Subsidiaries in such Subsidiary at the time of such designation;
		

		
			(ii)        such Restricted Subsidiary meets the definition of an “Unrestricted Subsidiary”;
		

		
			(iii)      the designation would not constitute or cause (with or without the passage of time) a Default or Event of Default and no Default or Event of Default would be in existence following such designation;
		

		
			(iv)       at the time of and after giving effect to such designation and Investment the Vessel Fleet Value is greater than $500.0 million; and
		

		
			(v)        the Borrower delivers to the Administrative Agent a certified copy of a resolution of the Board of Directors of the Borrower giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions.
		

		
			
		

		
			

		 

		

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			If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Borrower and the Restricted Subsidiaries in the Subsidiary designated as an Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 6.01 or under one or more clauses of the definition of Permitted Investments, as determined by the Borrower.
		

		
			If, at any time, any Unrestricted Subsidiary designated as such would fail to meet the preceding requirements as an Unrestricted Subsidiary, then such Subsidiary will thereafter cease to be an Unrestricted Subsidiary for purposes of this Agreement and any Indebtedness of such Subsidiary and any Liens on the assets of such Subsidiary will be deemed to be Incurred by a Restricted Subsidiary as of such date and, if such Indebtedness or Liens are not permitted to be Incurred as of such date under Section 6.03, the Borrower or the applicable Restricted Subsidiary will be in default of such Section.
		

		
			(b)        The Board of Directors of the Borrower may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary if:
		

		
			(i)         the Borrower and the Restricted Subsidiaries may Incur the Indebtedness and Liens (and the Borrower and the Restricted Subsidiaries shall be deemed to Incur such Indebtedness and Liens upon such designation) of such Subsidiary under Sections 6.03 and 6.06;
		

		
			(ii)        the designation would not constitute or cause (with or without the passage of time) a Default or Event of Default and no Default or Event of Default would be in existence following such designation; and
		

		
			(iii)      the Borrower delivers to the Administrative Agent a certified copy of a resolution of the Board of Directors of the Borrower giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions.
		

		
			ARTICLE VI
		

		
			Negative Covenants
		

		
			The Borrower covenants and agrees with each Lender that, so long as this Agreement shall remain in effect and until the Commitments have been terminated and the principal of and interest on each Loan, all Fees and Yield Maintenance Amounts and all other expenses or amounts payable under any Loan Document have been paid in full, unless the Required Lenders shall otherwise consent in writing:
		

		
			SECTION 6.01      Limitation on Restricted Payments.  (a)  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, directly or indirectly:
		

		
			(i)         declare or pay any dividend or make any other payment or distribution on account of Equity Interests of the Borrower or any Restricted Subsidiary (including, without limitation, any payment in connection with any merger, consolidation or amalgamation involving the Borrower or any of the Restricted Subsidiaries) or to the
		

		
			

		 

		

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			direct or indirect holders of the Borrower’s or any of the Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Borrower and other than dividends or distributions payable to the Borrower or any other Restricted Subsidiary (and, if such Restricted Subsidiary has holders of Equity Interests other than the Borrower or other Restricted Subsidiaries, to its other holders of Equity Interests on a pro rata basis or on a basis that is more favorable to the Borrower and its Restricted Subsidiaries than pro rata));
		

		
			(ii)        purchase, repurchase, redeem, retire or otherwise acquire for value (including, without limitation, in connection with any merger, consolidation or amalgamation involving the Borrower) any Equity Interests of the Borrower held by any Person (other than any such Equity Interests held by the Borrower or any Restricted Subsidiary) or any Equity Interests of any Restricted Subsidiary held by an affiliate of the Borrower (other than Equity Interests held by the Borrower or any Restricted Subsidiary) (in each case other than in exchange for Equity Interests of the Borrower that do not constitute Disqualified Stock);
		

		
			(iii)      make any cash interest payment on or with respect to, or make any principal or premium payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value, any Material Junior Debt; or
		

		
			(iv)       make any Restricted Investment
		

		
			(all such payments and other actions set forth in these clauses (i) through (iv) being collectively referred to as “Restricted Payments”), unless, at the time of and after giving effect to such Restricted Payment:
		

		
			(A)       no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;
		

		
			(B)       the Borrower could Incur, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, at least $1.00 of additional Indebtedness pursuant to clause (ii) of Section 6.03(b);
		

		
			(C)       the Vessel Fleet Value is greater than $500.0 million; and
		

		
			(D)       such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Borrower and the Restricted Subsidiaries since the Escrow Release Date (excluding Restricted Payments permitted by clauses (ii) through (xiii) of Section 6.01(b)), is less than the sum, without duplication, of:
		

		
			(1)        50% of the Borrower’s Consolidated Net Income on a consolidated basis for the period (taken as one accounting period) beginning on the first day of the first fiscal quarter after the Escrow Release Date during which the Borrower’s Consolidated Net
		

		
			
		

		
			

		 

		

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			Income is positive (the “Builder Basket Start Date”) and ending on the last day of the Borrower’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit); plus
		

		
			(2)        100% of the aggregate net cash proceeds or the Fair Market Value of assets other than cash, in each case received by the Borrower or any Restricted Subsidiary from any Person other than the Borrower or any of its Subsidiaries since the Builder Basket Start Date as a contribution to its common equity capital or from the issue or sale of the Equity Interests (other than Disqualified Stock and other than any Plan Equity) of the Borrower or from the issue or sale of convertible or exchangeable Disqualified Stock or convertible or exchangeable debt securities of the Borrower, in each case that have been converted into or exchanged for Equity Interests (other than Disqualified Stock) of the Borrower (other than Equity Interests, Disqualified Stock or debt securities sold to a Subsidiary of the Borrower); plus
		

		
			(3)        to the extent that any Restricted Investment that was made after the Builder Basket Start Date pursuant to this paragraph is sold or disposed of for cash or Cash Equivalents or otherwise cancelled, liquidated or repaid for cash or Cash Equivalents, the lesser of (i) the return of capital received in cash or Cash Equivalents with respect to such Restricted Investment (less the cost of disposition, if any) and (ii) the initial amount of such Restricted Investment; plus
		

		
			(4)        to the extent that any Unrestricted Subsidiary designated as such after the Builder Basket Start Date pursuant to this paragraph is redesignated as a Restricted Subsidiary, the lesser of (i) the Fair Market Value of the Restricted Investment made by the Borrower or any of the Restricted Subsidiaries in such Subsidiary as of the date of such redesignation and (ii) such Fair Market Value as of the date on which such Subsidiary was originally designated as an Unrestricted Subsidiary after the Builder Basket Start Date.
		

		
			(b)        Provided that at the time of and after giving effect to any Restricted Payment under this Section 6.01(b) the Vessel Fleet Value is greater than $500.0 million, the provisions of Section 6.01(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 of the dividend or distribution or the date of the redemption notice, as the case may be, if at the date of
		

		
			
		

		
			

		 

		

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			declaration or notice, the dividend, distribution or redemption payment would have complied with the provisions of this Agreement;
		

		
			(ii)        so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the making of any Restricted Payment in exchange for, or out of the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Borrower) of, Equity Interests of the Borrower (other than Disqualified Stock and any other Plan Equity) or from the substantially concurrent contribution of common equity capital to the Borrower; provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment will be excluded from clause (iv)(D)(1) of Section 6.01(a) above;
		

		
			(iii)      the repurchase, redemption, defeasance or other acquisition or retirement for value of Material Junior Debt with the net cash proceeds from a substantially concurrent Incurrence of Permitted Refinancing Indebtedness;
		

		
			(iv)       so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Borrower or any Restricted Subsidiary of the Borrower held by any current or former officer, director or employee of the Borrower or any of its Restricted Subsidiaries pursuant to any equity subscription agreement, employee stock ownership plan or similar trust, shareholders’ agreement or similar agreement; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed $2 million in any calendar year (with any portion of such $2 million amount that is unused in any calendar year to be carried forward to successive calendar years and added to such amount);
		

		
			(v)        the purchase, redemption or other acquisition or retirement for value of Equity Interests deemed to occur upon the exercise or conversion of stock options, warrants, rights to acquire Equity Interests or other convertible securities, to the extent such Equity Interests represent a portion of the exercise or conversion price thereof or the purchase, redemption or other acquisition or retirement for value of Equity Interests of the Borrower or any Restricted Subsidiary of the Borrower held by any current or former officers, directors or employees of the Borrower or any of its Restricted Subsidiaries in connection with the exercise or vesting of any equity compensation (including, without limitation, stock options, restricted stock and phantom stock) in order to satisfy any tax withholding obligation with respect to such exercise or vesting;
		

		
			(vi)       any purchase, redemption, defeasance or other acquisition or retirement of any Material Junior Debt from proceeds of an Asset Sale or the Zonda Arbitration or in the event of a Change of Control, in each case only if prior to or simultaneously with such purchase, redemption, defeasance or other acquisition or retirement, the Borrower or a Restricted Subsidiary has made the Asset Sale Offer, Zonda Offer or Change of Control Offer (each, as defined in the First Lien Indenture), as applicable, as provided in the First Lien Indenture and has completed the repurchase of all First Lien Notes validly tendered for payment in connection with such Asset Sale
		

		
			
		

		
			

		 

		

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			Offer, Zonda Offer or Change of Control Offer in accordance with the requirements of the First Lien Indenture;
		

		
			(vii)      so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the declaration and payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Borrower or any Preferred Stock of any Restricted Subsidiary of the Borrower issued on or after the Closing Date in accordance with Section 6.03;
		

		
			(viii)    cash payments in lieu of the issuance of fractional shares, or payments to dissenting stockholders (a) pursuant to applicable law or (b) in connection with the settlement or other satisfaction of legal claims made pursuant to or in connection with a consolidation, merger or transfer of assets in connection with a transaction that is not prohibited by this Agreement;
		

		
			(ix)       so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, any Restricted Payment so long as the amount of such Restricted Payment, together with the aggregate amount of all other Restricted Payments made under this clause (ix) since the Closing Date, does not exceed $15 million;
		

		
			(x)        so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, any Restricted Payment so long as, at the time of, and after giving effect to, such Restricted Payment, the Borrower’s First Lien Leverage Ratio does not exceed 2.0 to 1.0;
		

		
			(xi)       so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the payment in cash of interest on, or any principal or premium payment with respect to, or the repurchase, redemption, defeasance or other acquisition or retirement for value of, Material Junior Debt; provided that the aggregate amount of such payments may not exceed $30 million in any calendar year;
		

		
			(xii)      so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, the payment in cash of interest on Material Junior Debt, so long as, at the time of, and after giving effect to, such payment, the Borrower’s Consolidated Interest Coverage Ratio is at least 1.75 to 1.0; and
		

		
			(xiii)    so long as no Default or Event of Default has occurred and is continuing or would occur as a result thereof, (x) the repurchase, redemption, defeasance or other acquisition or retirement for value of Material Junior Debt and (y) Investments in any Person (including an Unrestricted Subsidiary); provided that the sum of (I) the aggregate amount of payments made pursuant to the foregoing clause (x) and (II) the aggregate Fair Market Value of Investments made pursuant to the foregoing clause (y), when taken together with all other Investments made pursuant to such clause (y) that are at the time outstanding (in each case, measured on the date each such Investment was made and without giving effect to subsequent changes in value), shall not exceed $75 million.
		

		
			
		

		
			

		 

		

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			The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Borrower or any Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.  For purposes of determining compliance with this Section 6.01, in the event that a Restricted Payment meets the criteria of more than one of the categories of Restricted Payments described in Section 6.01(a) or the preceding clauses (i) through (xiii) of this Section 6.01(b) or as a Permitted Investment, the Borrower will be permitted to divide or classify (or later divide, classify or reclassify in whole or in part in its sole discretion) such Restricted Payment in any manner that complies with this Section 6.01.
		

		
			SECTION 6.02     Limitation on Dividends and Other Payment Restrictions Affecting Restricted Subsidiaries.  (a)  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, directly or indirectly, create or permit to become effective any consensual encumbrance or restriction on the ability of any of the Restricted Subsidiaries to:
		

		
			(i)         pay dividends or make any other distributions on its Capital Stock to the Borrower or any of the Restricted Subsidiaries, or with respect to any other interest or participation in, or measured by, its profits, or pay any Indebtedness owed to the Borrower or any of the Restricted Subsidiaries; provided that the priority that any series of preferred stock of a Restricted Subsidiary has in receiving dividends or liquidating distributions before dividends or liquidating distributions are paid in respect of common stock of such Restricted Subsidiary shall not constitute a restriction on the ability to make dividends or distributions on Capital Stock for purposes of this Section 6.02;
		

		
			(ii)        make loans or advances to the Borrower or any of the Restricted Subsidiaries; or
		

		
			(iii)      sell, lease or transfer any of its properties or assets to the Borrower or any of the Restricted Subsidiaries (all such actions set forth in these clauses (i) through (iii) above being collectively referred to as “Intercompany Transfers”).
		

		
			(b)        The restrictions in Section 6.02(a) will not apply to encumbrances or restrictions on the ability of any of the Restricted Subsidiaries to make Intercompany Transfers existing under or by reason of:
		

		
			(i)         agreements governing Indebtedness as in effect on the Closing Date;
		

		
			(ii)        restrictions contained in, or in respect of, Hedging Obligations permitted to be Incurred by this Agreement;
		

		
			(iii)      this Agreement, the First Lien Indenture, the Second Lien Note Indenture, the Intercreditor Agreement, the other Collateral Documents, the First Lien Notes, the Second Lien Notes and the guarantees thereof;
		

		
			(iv)       applicable law, rule, regulation or order;
		

		
			
		

		
			

		 

		

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			(v)        any instrument governing Indebtedness or Capital Stock of a Person acquired by the Borrower or any of the Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was Incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Agreement to be Incurred;
		

		
			(vi)       customary non-assignment provisions in contracts and licenses entered into in the ordinary course of business;
		

		
			(vii)      purchase money obligations for property acquired in the ordinary course of business, mortgage financings and Capital Lease Obligations that impose restrictions on the property purchased or mortgaged or leased of the nature described in clause (iii) of Section 6.02(a);
		

		
			(viii)    any agreement for the sale or other disposition of the Capital Stock or all or substantially all of the assets of any Restricted Subsidiary that restricts distributions by that Restricted Subsidiary pending the sale or other disposition;
		

		
			(ix)       Liens permitted to be Incurred under the provisions of Section 6.06 that limit the right of the debtor to dispose of the assets subject to such Liens;
		

		
			(x)        provisions limiting the disposition or distribution of assets or property in joint venture agreements, partnership agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements, which limitation is applicable only to the assets that are the subject of such agreements;
		

		
			(xi)       restrictions on cash or other deposits or net worth imposed by customers or suppliers or required by insurance, surety or bonding companies, in each case, under contracts entered into in the ordinary course of business;
		

		
			(xii)      any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i), (iii), (v) or (vii) of this Section 6.02(b); provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are, in the good faith judgment of the Borrower, not materially more restrictive 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;
		

		
			(xiii)    encumbrances or restrictions of the nature described in clause (iii) of Section 6.02(a) with respect to property under a charter, lease or other agreement that has been entered into in the ordinary course for the employment, charter or other hire of such property; and
		

		
			
		

		
			

		 

		

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			(xiv)     instruments governing Indebtedness that is permitted to be Incurred subsequent to the Closing Date pursuant to Section 6.03;  provided that, at the time such Indebtedness is Incurred, either (a) such encumbrance or restriction is customary for financings of the same type, and such restrictions would not reasonably be expected to materially impair the Borrower’s ability to make scheduled payments of interest and principal on the Indebtedness under the Loan Documents when due or any Guarantor’s ability to make payment under its Guarantee, as determined in good faith by the Board of Directors of the Borrower or a Financial Officer of the Borrower, or (b) the restrictions therein are not materially more restrictive, taken as a whole, than those contained in this Agreement, as determined in good faith by the Board of Directors or a Financial Officer of the Borrower.
		

		
			SECTION 6.03    Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock.  (a)  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “Incur,” and “Incurrence,” “Incurred”  and “Incurring”  shall have meanings correlative to the foregoing) any Indebtedness (including Acquired Debt) or issue any Disqualified Stock, and the Borrower will not permit any of the Restricted Subsidiaries to issue any shares of Preferred Stock.
		

		
			(b)        The provisions of Section 6.03(a) will not, however, prohibit the Incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”); provided that prior to and after the incurrence of Indebtedness in clauses (ii), (iii), (xi) and (xiii) of this Section 6.03(b) the Vessel Fleet Value is greater than $500.0 million:
		

		
			(i)         the Incurrence by the Borrower or any Guarantor of Indebtedness under the Initial First Lien Notes, the Second Lien PIK Notes issued on the Issue Date, the Indebtedness under the Loan Documents and the guarantees thereof;
		

		
			(ii)        the Incurrence by the Borrower or any Guarantor for the purpose of an acquisition or capital expenditure of Indebtedness under one or more Credit Facilities (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Borrower or such Guarantor thereunder) or in the form of one or more guarantees of Indebtedness of one or more Unrestricted Subsidiaries; provided, that after giving pro forma effect thereto (including the application of proceeds therefrom), (i) if such Indebtedness is not First Lien Debt, the aggregate amount of Consolidated Total Indebtedness of the Borrower and the Restricted Subsidiaries (including any outstanding First Lien Notes, Second Lien PIK Notes, Indebtedness hereunder and any Permitted Refinancing Indebtedness in respect thereof, but excluding intercompany Indebtedness permitted by clause (v) below) shall not exceed the product of (x) $250.0 million and (y) the number of 6th or 7th (or later) generation Vessels owned by the Borrower or any Guarantor at the time of Incurrence or (ii) if such Indebtedness is First Lien Debt, the aggregate amount of Consolidated Total Indebtedness of the Borrower and the Restricted Subsidiaries that is First Lien Debt (including any outstanding First Lien Notes, Indebtedness hereunder and any Permitted Refinancing Indebtedness in respect thereof, but excluding intercompany Indebtedness permitted by clause (v) below) shall not exceed the sum of (1) the product of (x) $50.0 million and (y)
		

		
			
		

		
			

		 

		

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			the number of 6th or 7th (or later) generation Unqualified Vessels owned by the Borrower or any Guarantor at the time of Incurrence and (2) the product of (x) $150.0 million and (y) the number of Qualified Vessels owned by the Borrower or any Guarantor at the time of Incurrence;
		

		
			(iii)      the Incurrence by the Borrower or any Guarantor of Indebtedness for the purpose of financing all or any part of the purchase price of the drillship known as the Pacific Zonda, and Permitted Refinancing Indebtedness in respect thereof, in an amount, including all such Permitted Refinancing Indebtedness, not to exceed $150.0 million at any time outstanding;
		

		
			(iv)       the Incurrence by the Borrower or any Restricted Subsidiary of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge, in whole or in part, any Indebtedness (other than intercompany Indebtedness) that was permitted by this Agreement to be Incurred under clause (i) or (ii) of this paragraph or this clause (v);
		

		
			(v)        the Incurrence by Borrower or any Restricted Subsidiary of intercompany Indebtedness between or among the Borrower and any of the Restricted Subsidiaries; provided, however, that:
		

		
			(A)       if the Borrower or any Guarantor is the obligor on such Indebtedness and the payee is not the Borrower or a Guarantor, such Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash of all Obligations with respect to the First Lien Notes and the Indebtedness under the Loan Documents, in the case of the Borrower, or the applicable guarantees, in the case of a Guarantor; and
		

		
			(B)       upon any (i) subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Borrower or a Restricted Subsidiary, or (ii) sale or other transfer of any such Indebtedness to a Person that is not the Borrower or a Restricted Subsidiary, the exception provided by this clause (v) shall no longer be applicable to such Indebtedness and such Indebtedness will be deemed to have been Incurred at the time of any such issuance, sale or transfer;
		

		
			(vi)       the Incurrence by the Borrower or any Restricted Subsidiary of Hedging Obligations in the ordinary course of business and not for (A) Hedging Obligations of the type in clause (3) of the definition thereof other than for fuel of the type used by the Borrower and its Subsidiaries in their business or (B) speculative purposes;
		

		
			(vii)      the guarantee by the Borrower or any Restricted Subsidiary of Indebtedness of the Borrower or a Restricted Subsidiary that was permitted to be Incurred by another provision of this covenant; provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the First Lien Notes, the Indebtedness under the
		

		
			
		

		
			

		 

		

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			Loan Documents or a guarantee thereof, then the guarantee shall be subordinated or pari passu, as applicable, to the same extent as the Indebtedness guaranteed;
		

		
			(viii)    the Incurrence by the Borrower or any Restricted Subsidiary of Indebtedness in respect of workers’ compensation claims, self-insurance obligations, and performance, customs, importation and surety bonds or other Indebtedness of a like nature, in each case in the ordinary course of business;
		

		
			(ix)       the Incurrence by the Borrower or any Restricted Subsidiary of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days;
		

		
			(x)        the Incurrence by the Borrower or any Restricted Subsidiary of Indebtedness arising from agreements providing for indemnification, earn-outs, adjustment of purchase price or similar obligations, or guarantees or letters of credit, surety bonds or performance bonds securing any obligations of the Borrower or any Restricted Subsidiary pursuant to such agreements, in each case, Incurred in connection with the acquisition or disposition of any business, assets or the Capital Stock of a Subsidiary, other than guarantees of Indebtedness Incurred by any Person acquiring all or any portion of such business, assets or the Capital Stock of a Subsidiary for the purpose of financing such acquisition; provided, however, that, in the case of a disposition, the maximum aggregate liability in respect of all such Indebtedness shall at no time exceed the gross proceeds (including non-cash proceeds (the Fair Market Value of such non-cash proceeds being measured at the time received and without giving effect to any subsequent changes in value)) actually received by the Borrower and the Restricted Subsidiaries in connection with such disposition;
		

		
			(xi)       the Incurrence by the Borrower or any Restricted Subsidiary of Indebtedness not otherwise permitted pursuant to clauses (i) through (x) above or clause (xii) or (xiii) below in an amount, together with any other Indebtedness Incurred pursuant to this clause (xi) then outstanding, not in excess of $50.0 million; provided that such Indebtedness incurred pursuant to this clause (xi) shall be used to fund (A) capital expenditures, (B) asset acquisitions or (C) costs associated with preparing a stacked Vessel for work under an executed contract for such Vessel;
		

		
			(xii)      Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations (or any guarantee thereof or indemnity with respect thereto), in each case, incurred for the purpose of financing all or any part of the purchase price or cost of construction or improvement of property, plant or equipment used in the business of the Borrower or any Restricted Subsidiary, and Permitted Refinancing Indebtedness in respect thereof, in an amount, including all such Permitted Refinancing Indebtedness, not to exceed $50 million at any time outstanding; and
		

		
			(xiii)    Acquired Debt; provided that, after giving pro forma effect to the relevant transaction (A) no Default or Event of Default shall have occurred and be
		

		
			
		

		
			

		 

		

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			continuing and (B) the Borrower could Incur at least $1.00 of additional Indebtedness pursuant to clause (ii) above.
		

		
			For purposes of determining compliance with this Section 6.03, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in clauses (i) through (xiii) above, the Borrower or the applicable Restricted Subsidiary will be permitted to classify such item of Indebtedness (or any portion thereof) on the date of its Incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner that complies with this Section 6.03.  The accrual of interest or Preferred Stock dividends, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms (including the payment of “PIK” interest with respect to the Second Lien PIK Notes, the reclassification of Preferred Stock as Indebtedness due to a change in accounting principles, and the payment of dividends on Preferred Stock or Disqualified Stock in the form of additional shares of the same class of Preferred Stock or Disqualified Stock will not be deemed to be an Incurrence of Indebtedness or an issuance of Preferred Stock or Disqualified Stock for purposes of this covenant; provided, in each such case, that the amount of any such accrual, accretion or payment is included in Consolidated Interest Expense of the Borrower as accrued.
		

		
			The amount of any Indebtedness outstanding as of any date will be:
		

		
			(i)         the accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount;
		

		
			(ii)        the principal amount of the Indebtedness, in the case of any other Indebtedness; and
		

		
			(iii)       in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of:
		

		
			(A)       the Fair Market Value of such assets at the date of determination; and
		

		
			(B)       the amount of the Indebtedness of the other Person; and
		

		
			(iv)       in the case of Hedging Obligations, the termination value of the agreement or arrangement giving rise to such Hedging Obligations that would be payable by the specified Person at such date.
		

		
			(c)        Notwithstanding anything to the contrary in this Agreement, the Borrower will not, and will not permit any Guarantor to, directly or indirectly, Incur any Indebtedness (including Acquired Debt) that is subordinated or junior in right of payment to any Indebtedness of the Borrower or such Guarantor, as the case may be, unless such Indebtedness is expressly subordinated in right of payment to the First Lien Notes and the Indebtedness under the Loan Documents or such Guarantor’s guarantee thereof to the extent and in the same manner as such Indebtedness is subordinated to other Indebtedness of the Borrower or such Guarantor, as the case may be.
		

		
			
		

		
			

		 

		

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			For purposes of determining compliance with any Dollar-denominated restriction on the Incurrence of Indebtedness, the Dollar Equivalent of the principal amount of Indebtedness denominated in another currency will be utilized, calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of Indebtedness Incurred under a revolving credit facility; provided that if such Indebtedness is Incurred to refinance other Indebtedness denominated in a currency other than Dollars, and such 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 will be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced.
		

		
			Notwithstanding any other provision of this Section 6.03, the maximum amount of Indebtedness that the Borrower or the applicable Restricted Subsidiary may Incur pursuant to this covenant shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values.
		

		
			Notwithstanding anything to the contrary in this Agreement, the Borrower shall not, and shall not permit any Restricted Subsidiary to, Incur any First Lien Debt with payment priority with respect to the First Lien Notes pursuant to the Collateral Agency Agreement or otherwise, other than Indebtedness under this Agreement.
		

		
			SECTION 6.04      Limitation on Asset Sales.  (a)  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, directly or indirectly, consummate any Asset Sale unless:
		

		
			(i)         the Borrower or the Restricted Subsidiary, as the case may be, receives consideration at the time of consummation of such Asset Sale at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; and
		

		
			(ii)        at least 75% of the consideration received in such Asset Sale by the Borrower or such Restricted Subsidiary is in the form of cash or Cash Equivalents;
		

		
			provided, that the foregoing requirements shall not apply with respect to any Involuntary Transfer.
		

		
			(b)        For purposes of Section 6.04(a), each of the following will be deemed to be cash:
		

		
			(i)         any Indebtedness or other liabilities, as shown on the Borrower’s most recent consolidated balance sheet, of the Borrower or any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the First Lien Notes, the Indebtedness under the Loan Documents or any guarantee thereof) that are assumed, repaid or retired by the transferee of any such assets so long as the Borrower or such Restricted Subsidiary is released from further liability in respect thereof; and
		

		
			
		

		
			

		 

		

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			(ii)        any securities, notes or other obligations received by the Borrower or any such Restricted Subsidiary from such transferee that are, within 180 days after receipt thereof, converted by the Borrower or such Restricted Subsidiary into cash or Cash Equivalents, to the extent of the cash or Cash Equivalents received in that conversion.
		

		
			(c)        Subject to Section 2.11(c), within 365 days after the receipt of any Net Proceeds from an Asset Sale (including, without limitation, an Involuntary Transfer), the Borrower or the applicable Restricted Subsidiary, as the case may be, shall apply such Net Proceeds at its option to any combination of the following:
		

		
			(i)         to repay Indebtedness under this Agreement and correspondingly reduce commitments with respect thereto or to repurchase, repay or prepay (or offer to repurchase, repay or prepay) other First Lien Debt in accordance with its terms;
		

		
			(ii)        to acquire all or substantially all of the assets of, or any Capital Stock of, any Person primarily engaged in a Permitted Business, if, in the case of any such acquisition of Capital Stock, such Person is or becomes a Restricted Subsidiary as a result of such acquisition;
		

		
			(iii)      to make a capital expenditure that is used or useful in a Permitted Business; or
		

		
			(iv)       to acquire other assets that are not classified as current assets under GAAP and that are used or useful in a Permitted Business (including, without limitation, Vessels, related assets and any related Ready for Sea Costs) or make any deposit, installment or progress payment in respect of such assets or payment of any related Ready for Sea Costs,
		

		
			provided that (x) a binding commitment made within the 365-day period described above by the Borrower or the applicable Restricted Subsidiary to apply Net Proceeds from an Asset Sale in accordance with clauses (ii), (iii) and/or (iv) above shall satisfy the requirements of such clauses with respect to such Net Proceeds so long as such Net Proceeds are actually so applied within 545 days from the receipt thereof from such Asset Sale and (y) if all or any portion of the assets sold or transferred in such Asset Sale constituted Collateral, in the case of any application of Net Proceeds pursuant to clause (ii), (iii) or (iv) above, the Borrower shall, or shall cause the applicable Restricted Subsidiary to, pledge any assets (including, without limitation, any acquired Capital Stock) acquired with such Net Proceeds to secure the First Lien Obligations on a first-priority secured basis (subject to the payment priority in favor of the Lenders hereunder and subject to Permitted Collateral Liens) pursuant to the Collateral Documents in accordance with this Agreement.
		

		
			(d)        Pending the final application of any Net Proceeds, the Borrower or the applicable Restricted Subsidiary may apply the Net Proceeds to temporarily reduce outstanding revolving credit Indebtedness of the Borrower or any of the Restricted Subsidiaries, respectively, or invest the Net Proceeds in cash and Cash Equivalents.
		

		
			
		

		
			

		 

		

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			SECTION 6.05      Limitation on Transactions with Affiliates.  (a)  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of the Borrower (each, an “Affiliate Transaction”) involving, with respect to any such transaction or series of related transactions, payments or consideration in excess of $1 million, unless:
		

		
			(i)         the Affiliate Transaction is on terms that are either (a) no less favorable to the Borrower or the relevant Restricted Subsidiary than those that could have been obtained in a comparable arm’s-length transaction by the Borrower or such Restricted Subsidiary with a Person that is not an Affiliate of the Borrower or (b) if, in the good faith judgment of the Borrower’s Board of Directors, no comparable transaction is available with which to compare such Affiliate Transaction, such Affiliate Transaction is otherwise fair to the Borrower or the relevant Restricted Subsidiary from a financial point of view; and
		

		
			(ii)        the Borrower delivers to the Administrative Agent:
		

		
			(A)       with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $25 million, a resolution of the Board of Directors of the Borrower accompanied by an Officers’ Certificate certifying that such Affiliate Transaction or series of related Affiliate Transactions complies with this Section 6.05 and that such Affiliate Transaction or series of related Affiliate Transactions has been approved by a majority of the disinterested members of the Board of Directors of the Borrower; and
		

		
			(B)       with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $50 million, an opinion issued to the Board of Directors of the Borrower by an accounting, appraisal or investment banking firm of international standing or generally recognized in the shipping or offshore drilling industries as qualified to perform the tasks for which such firm has been engaged as to the fairness to the Borrower or such Restricted Subsidiary of such Affiliate Transaction from a financial point of view or that the terms of such Affiliate Transaction are no less favorable to the Borrower or the relevant Restricted Subsidiary than those that could have been obtained in a comparable arm’s-length transaction by the Borrower or such Restricted Subsidiary with a Person that is not an Affiliate of the Borrower.
		

		
			For the avoidance of doubt, with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration of $25 million or less, the determination that such Affiliate Transaction or series of Affiliate Transactions complies with this Section 6.05 may be made by a Financial Officer of the Borrower.
		

		
			(b)        The following items will not be deemed to be Affiliate Transactions, as applicable, and, therefore, will not be subject to the provisions of Section 6.05(a):
		

		
			
		

		
			

		 

		

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			(i)         any employment agreement, employee benefit plan, compensation plan or arrangement, officer or director indemnification agreement or any similar arrangement entered into by the Borrower or any of its Restricted Subsidiaries in the ordinary course of business and payments pursuant thereto;
		

		
			(ii)        payment of reasonable directors’ fees to directors of the Borrower or any Restricted Subsidiary;
		

		
			(iii)      transactions solely between or among the Borrower and/or any of its Restricted Subsidiaries;
		

		
			(iv)       the issuance or sale of Equity Interests (other than Disqualified Stock) of the Borrower to, or receipt of capital contributions from, Affiliates of the Borrower;
		

		
			(v)        loans or advances to employees of the Borrower or any Restricted Subsidiary in the ordinary course of business not to exceed $2 million in the aggregate at any one time outstanding;
		

		
			(vi)       transactions with a Person (other than an Unrestricted Subsidiary) that is an Affiliate of the Borrower solely because the Borrower owns, directly or through a Restricted Subsidiary, an Equity Interest in, or controls, such Person;
		

		
			(vii)      Permitted Investments (other than Investments permitted by clause (3) of the definition thereof) and Restricted Payments that do not violate the provisions of Section 6.01;
		

		
			(viii)    transactions between the Borrower or any of its Restricted Subsidiaries and any Person that would not otherwise constitute an Affiliate Transaction except for the fact that one director of such other Person is also a director of the Borrower or such Restricted Subsidiary, as applicable; provided that such director abstains from voting as a director of the Borrower or such Restricted Subsidiary, as applicable, on any matter involving such other Person; and
		

		
			(ix)       any agreement as in effect on the Closing Date or any amendments, renewals or extensions of any such agreement (so long as such amendments, renewals or extensions are not less favorable to the Lenders).
		

		
			SECTION 6.06     Limitation on Liens.  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist (i) any Lien of any kind on any Collateral for the Indebtedness under the Loan Documents, except for Permitted Collateral Liens, or (ii) any Lien of any kind securing Indebtedness on any of its property or assets that are not Collateral for the Indebtedness under the Loan Documents, except for Permitted Liens.
		

		
			SECTION 6.07      Business Activities.  The Borrower will not, and will not permit any of the Restricted Subsidiaries to, engage in any business other than Permitted
		

		
			
		

		
			

		 

		

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			Businesses, except to such extent as would not be material to the Borrower and the Restricted Subsidiaries taken as a whole.
		

		
			SECTION 6.08      Rights to Earnings from the Collateral Vessels.
		

		
			(a)        The Borrower shall not permit any of its Subsidiaries (other than any Guarantor) to be or become party to a Drilling Contract in respect of a Collateral Vessel (including as a charterer of a Collateral Vessel) or otherwise hold the right to directly receive any Earnings or any other Related Assets with respect to a Collateral Vessel; provided that a Local Content Subsidiary may be a party to a Drilling Contract in respect of a Collateral Vessel or otherwise hold the right to receive Earnings or Related Assets with respect to a Collateral Vessel to the extent required by any law or regulation of any applicable jurisdiction, so long as such Local Content Subsidiary does not receive more than 20% of the Earnings or Related Assets with respect to such Collateral Vessel.  The Borrower shall, or shall cause one or more of the Guarantors to, at all times maintain the Earnings Accounts, and each Earnings Account shall at all times be in the name of the Borrower or a Guarantor.
		

		
			(b)        The Borrower shall at all times cause all such Earnings (except for the Earnings received by a Local Content Subsidiary to the extent permitted by Section 6.08(a)) from the Drilling Contracts in respect of a Collateral Vessel to be deposited into or forwarded to the Earnings Accounts.
		

		
			SECTION 6.09      Limitation on Certain Agreements.  The Borrower shall not permit any Collateral Grantor to enter into any agreement that requires the proceeds received from any sale of Collateral to be applied to repay, redeem, defease or otherwise acquire or retire any Indebtedness of any Person, other than (i) the Indebtedness under the Loan Documents, (ii) the First Lien Notes, (iii) any other First Lien Obligations, (iv) the Second Lien PIK Notes or (v) otherwise as may be permitted or required by this Agreement or the Collateral Documents, including with respect to any Permitted Collateral Liens; provided that any such agreement may be entered into to the extent it permits such proceeds to be applied to First Lien Obligations prior to or instead of such other Indebtedness.
		

		
			SECTION 6.10      Fiscal Year.  The Borrower will not change its fiscal year-end to a date other than December 31.
		

		
			ARTICLE VII
		

		
			Events of Default
		

		
			SECTION 7.01      Events of Default.  In case of the happening of any of the following events (each, an “Event of Default”):
		

		
			(a)        any representation or warranty made or deemed made in or in connection with any Loan Document or the borrowings hereunder, or any representation, warranty, statement or information contained in any report, certificate, financial statement or other instrument furnished in connection with or pursuant to any Loan Document, shall prove to have been false or misleading (i) in the case of representations and warranties qualified as to materiality, in any respect or (ii) otherwise, in any material respect, in each case when so made, deemed made or furnished;
		

		
			
		

		
			

		 

		

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			(b)        default shall be made in the payment of any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise;
		

		
			(c)        default shall be made in the payment of any interest on any Loan or any Fee, Yield Maintenance Amount or any other amount (other than an amount referred to in (b) of this Section 7.01) due under any Loan Document, when and as the same shall become due and payable, and such default shall continue unremedied for a period of three Business Days;
		

		
			(d)        default shall be made in the due observance or performance by the Borrower or any Restricted Subsidiary of any covenant, condition or agreement contained in Section 5.01(a), 5.05(a) or 5.08 or in Article VI;
		

		
			(e)        default shall be made in the due observance or performance by the Borrower or any Restricted Subsidiary of any covenant, condition or agreement contained in any Loan Document (other than those specified in (b), (c) or (d) above) and such default shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent or any Lender to the Borrower;
		

		
			(f)        (i)  the Borrower or any Restricted Subsidiary shall fail to pay any principal, interest or other amount due in respect of any Material Indebtedness, when and as the same shall become due and payable or (ii) any other event or condition occurs that results in the acceleration of any Material Indebtedness prior to its scheduled maturity or that results in the termination of any Hedging Obligation the obligations under which constitute Material Indebtedness; provided that this clause (ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;
		

		
			(g)        other than as contemplated by the Zonda Plan with respect to PDVIII and PDSI, an involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief in respect of the Borrower or any Restricted Subsidiary, or of a substantial part of the property or assets of the Borrower, or a Restricted Subsidiary, under Title 11 of the United States Code, as now constituted or hereafter amended, or any other Federal, state or foreign bankruptcy, insolvency, receivership or similar law, (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Restricted Subsidiary or for a substantial part of the property or assets of the Borrower or any Restricted Subsidiary or (iii) the winding-up or liquidation of the Borrower or any Restricted Subsidiary; and such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;
		

		
			(h)        other than as contemplated by the Zonda Plan with respect to PDVIII and PDSI, the Borrower or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any other Federal, state or foreign bankruptcy, insolvency, receivership or similar law, (ii) consent to the institution of, or fail to contest
		

		
			
		

		
			

		 

		

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			in a timely and appropriate manner, any proceeding or the filing of any petition described in (g) above, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Restricted Subsidiary or for a substantial part of the property or assets of the Borrower or any Restricted Subsidiary, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due or (vii) take any action for the purpose of effecting any of the foregoing;
		

		
			(i)         other than judgments against PDVIII and/or PDSI resulting from the Zonda Arbitration, one or more judgments shall be rendered against the Borrower or any Restricted Subsidiary or any combination thereof and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to levy upon assets or properties of the Borrower or any Restricted Subsidiary of the Borrower to enforce any such judgment and such judgment either (i) is for the payment of money in an aggregate amount in excess of $25,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and does not deny or fail to acknowledge coverage) or (ii) is for injunctive relief and could reasonably be expected to result in a Material Adverse Effect;
		

		
			(j)         an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other such ERISA Events, could reasonably be expected to result in liability of the Borrower and its ERISA Affiliates that could reasonably be expected to have a Material Adverse Effect;
		

		
			(k)        any Guarantee under the Guarantee Agreement for any reason shall cease to be in full force and effect (other than in accordance with its terms), or any Subsidiary Guarantor shall deny in writing that it has any further liability under the Guarantee Agreement (other than as a result of the discharge of such Subsidiary Guarantor in accordance with the terms of the Loan Documents);
		

		
			(l)         any security interest purported to be created by any Collateral Document shall cease to be, or shall be asserted by the Borrower or any other Loan Party not to be, a valid, perfected, first priority (except as otherwise expressly provided in this Agreement or such Collateral Document) security interest in the securities, assets or properties covered thereby, except to the extent that any such loss of perfection or priority results from the failure of the Collateral Agent to maintain possession of certificates delivered to the Collateral Agent representing securities pledged under the Security Agreement and except to the extent that such loss is covered by a lender’s title insurance policy and the related insurer promptly after such loss shall have acknowledged in writing that such loss is covered by such title insurance policy;
		

		
			(m)       there shall have occurred a Change of Control; or
		

		
			(n)        so long as any First Lien Notes or Junior Lien Debt remains outstanding, the provisions of the Collateral Agency Agreement or the Intercreditor Agreement,
		

		
			
		

		
			

		 

		

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			respectively, shall, in whole or in part, cease to be effective or cease to be legally valid, binding and enforceable against any party thereto (or against any Person on whose behalf any such party makes any covenants or agreements therein), or otherwise not be effective to create the rights and obligations purported to be created thereunder, unless the same results directly from the action or inaction of the Administrative Agent;
		

		
			then, and in every such event (other than an event with respect to the Borrower described in paragraph (g) or (h) of this Section 7.01), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate forthwith the Commitments and (ii) declare the Loans then outstanding to be forthwith due and payable in whole or in part, whereupon the principal of the Loans so declared to be due and payable, together with accrued interest and Yield Maintenance Amount thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, to the fullest extent permitted by applicable law, by the Borrower, anything contained herein or in any other Loan Document to the contrary notwithstanding; and in any event with respect to the Borrower described in paragraph (g) or (h) of this Section 7.01, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest and any Yield Maintenance Amount thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other Loan Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Borrower, anything contained herein or in any other Loan Document to the contrary notwithstanding.
		

		
			ARTICLE VIII
		

		
			Agency
		

		
			SECTION 8.01    Appointment and Authority.  Each of the Lenders hereby irrevocably appoints (i) Angelo, Gordon Energy Servicer, LLC, to act on its behalf as the Administrative Agent and (ii) Wilmington Trust, National Association, to act on its behalf as the Collateral Agent (for purposes of this Article VIII, the Administrative Agent and the Collateral Agent are referred to collectively as the “Agents”), in each case, hereunder and under the other Loan Documents and authorizes the Agents to take such actions on its behalf and to exercise such powers as are delegated to the Agents by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  Except as otherwise provided in Section 8.06(b), the provisions of this Article are solely for the benefit of the Agents and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Agents is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
		

		
			
		

		
			

		 

		

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			SECTION 8.02      Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary of the Borrower or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
		

		
			SECTION 8.03     Exculpatory Provisions.  (a)  Neither Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, neither Agent:
		

		
			(i)         shall be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing;
		

		
			(ii)        shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that neither Agent shall be required to take any action that, in its opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and
		

		
			(iii)      shall, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as an Agent or any of its Affiliates in any capacity.
		

		
			(b)        Neither Agent shall be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary), or as such Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 9.07, or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Agents shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to such Agent in writing by the Borrower or a Lender.
		

		
			(c)        The Agents shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this
		

		
			
		

		
			

		 

		

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			Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agents.
		

		
			SECTION 8.04      Reliance by Agents.  Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  Each Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
		

		
			SECTION 8.05     Delegation of Duties.  Each Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub‐agents appointed by such Agent.  Each Agent and any such sub‐agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article VIII shall apply to any such sub‐agent and to the Related Parties of each Agent and any such sub‐agent, and shall apply to their respective activities in connection with the arranging of the Credit Facilities provided for by this Agreement as well as activities as an Agent.  Neither Agent shall be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non appealable judgment that such Agent acted with gross negligence or willful misconduct in the selection of such sub‐agents.
		

		
			SECTION 8.06      Resignation of Agents.  (a)  Each Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which, in the case of the Administrative Agent, shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  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 (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
		

		
			
		

		
			

		 

		

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			(b)        If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
		

		
			(c)        With effect from the Resignation Effective Date (1) the retiring or removed Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any Collateral held by the Collateral Agent on behalf of the Secured Parties under any of the Loan Documents, the retiring or removed Collateral Agent shall continue to hold such Collateral 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 such Agent shall instead be made by or to each Lender directly, until such time, if any, as a successor Agent is appointed as provided for above.  Upon the acceptance of a successor’s appointment as an Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Agent, and the retiring or removed Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor Agent.  After the retiring or removed Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article VIII and Section 9.04 shall continue in effect for the benefit of such retiring or removed 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 or removed Agent was acting as an Agent.
		

		
			SECTION 8.07    Non-Reliance on Agents and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Agents or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Agents or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
		

		
			SECTION 8.08     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 Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or any other Obligation 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:
		

		
			
		

		
			

		 

		

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			(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, the Administrative Agent and the Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Administrative Agent and the Collateral Agent and their respective agents and counsel and all other amounts due the Lenders, the Administrative Agent and the Collateral Agent under Sections 2.05 and 9.04) 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 2.05 and 9.04.
		

		
			SECTION 8.09      Collateral and Guarantee Matters.  (a)  The Bank Secured Parties irrevocably authorize and direct (i) the Collateral Agent to execute and deliver the Security Agreement and to exercise and enforce its rights and remedies and perform its obligations thereunder and (ii) the Administrative Agent to execute and deliver the Guarantee Agreement and to exercise and enforce its rights and remedies and perform its obligations thereunder and to release any Subsidiary Guarantor from its obligations under the Guarantee Agreement if such Person ceases to be a Subsidiary of the Borrower as a result of a transaction permitted under the Loan Documents.
		

		
			Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Guarantor from its obligations under the Guarantee Agreement pursuant to this Section 8.09(a) and the Collateral Agent’s authority to release any Collateral from the Lien of the Collateral Agent pursuant to Section 9.18 of the Security Agreement.
		

		
			No Bank Secured Party other than the Administrative Agent (or any sub-agent thereof), as applicable, shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee of the Loan Document Obligations, it being understood and agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Collateral Agent or the Administrative Agent (or any sub-agent thereof), as applicable, on behalf of the Bank Secured Parties in accordance with the terms thereof
		

		
			(b)        The Agents shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor shall the Collateral Agent be
		

		
			
		

		
			

		 

		

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			responsible or liable to the Administrative Agent, the Lenders or any other Person for any failure to monitor or maintain any portion of the Collateral or monitor or maintain the perfection of the Collateral Agent’s Lien on any Collateral.
		

		
			SECTION 8.10     Security Agreement.  Each Lender agrees that it will be bound by, and shall take no actions contrary to (and shall take all actions required by), the provisions of the Security Agreement, the Collateral Agency Agreement and the Intercreditor Agreement and authorizes (i) the Administrative Agent to enter into the Collateral Agency Agreement and the Intercreditor Agreement on its behalf and (ii) the Collateral Agent to enter into the Security Agreement, the Collateral Agency Agreement and the Intercreditor Agreement on its behalf and to act on its behalf to the extent set forth in the Collateral Documents.  The Lenders acknowledge that the Collateral Agency Agreement provides for the allocation of proceeds of Collateral among the Secured Parties as set forth therein and contains limits on the ability of the Administrative Agent and the Lenders to take remedial actions with respect to the Collateral.  The Lenders acknowledge that the Secured Obligations are secured by the Collateral on a pari passu basis to the extent set forth in the Security Agreement and the Collateral Agency Agreement and the ability of the Collateral Agent to take remedial actions with respect to the Collateral is subject to the provisions of the Collateral Agency Agreement and the Intercreditor Agreement.
		

		
			SECTION 8.11      Certain ERISA Matters.
		

		
			(a)        Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:
		

		
			(i)         such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments or this Agreement,
		

		
			(ii)        the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,
		

		
			(iii)      (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such
		

		
			
		

		
			

		 

		

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			Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or
		

		
			(iv)       such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
		

		
			(b)        In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).
		

		
			ARTICLE IX
		

		
			Miscellaneous
		

		
			SECTION 9.01      Notices; Effectiveness; Electronic Communication.  (a)  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) of this Section 9.01), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:
		

		
			(i)         if to the Borrower or to any other Loan Party, to it at 11700 Katy Fwy, #175, Houston, Texas 77079, Attention:  Chief Financial Officer, Email:  j.harris@pacificdrilling.com;
		

		
			(ii)        if to the Administrative Agent, to Angelo, Gordon Energy Servicer, LLC, angelogordonagency@cortlandglobal.com;
		

		
			(iii)      if to the Collateral Agent, to Wilmington Trust, National Association, Global Capital Markets, 15950 North Dallas Parkway, Suite 550, Dallas, Texas 75248, Attention: Pacific Drilling Administrator, Email: sgoffinet@wilmingtontrust.com, Fax: (888) 316-6238;; and
		

		
			(iv)       if to a Lender, to it at its address set forth in its Administrative Questionnaire or in the Assignment and Assumption pursuant to which such Lender shall have become a party hereto.
		

		
			

		 

		

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			Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices delivered through electronic communications, to the extent provided in paragraph (b) of this Section 9.01, shall be effective as provided in said paragraph (b).
		

		
			(b)        Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its or their discretion, agree to accept notices and other communications to it or them hereunder by electronic communications pursuant to procedures approved by it or them; provided that approval of such procedures may be limited to particular notices or communications.
		

		
			Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefore; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.
		

		
			(c)        Change of Address, etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.
		

		
			(d)        Platform.
		

		
			(i)         The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the “Platform”).
		

		
			(ii)        The Platform is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications
		

		
			
		

		
			

		 

		

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			or the Platform.  In no event shall the Agents or any of their Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower or the other Loan Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of communications through the Platform.  “Communications” means, collectively, any notice, demand, communication, information, document or other material that any Loan Party provides to the Administrative Agent pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section 9.01, including through the Platform.
		

		
			The Borrower hereby agrees, unless directed otherwise by the Administrative Agent or unless the e-mail address referred to in this paragraph has not been provided by the Administrative Agent to the Borrower, that it will, or will cause the Subsidiaries to, provide the Communications to the Administrative Agent in an electronic/soft medium that is properly identified in a format acceptable to the Administrative Agent to an e-mail address as directed by the Administrative Agent.  In addition, the Borrower agrees, and agrees to cause the Subsidiaries, to continue to provide the Communications to the Administrative Agent or the Lenders, as the case may be, in the manner otherwise specified in the Loan Documents but only to the extent requested by the Administrative Agent.
		

		
			The Borrower hereby acknowledges that (a) the Administrative Agent will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, the “Borrower Materials”) by posting the Borrower Materials on the Platform and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that (i) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (ii) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 9.13); (iii) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated as “Public Investor;” and (iv) the Administrative Agent shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not marked as “Public Investor” and shall post the same only on such portion.  Notwithstanding the foregoing, the following Borrower Materials shall be marked “PUBLIC”, unless the Borrower notifies the Administrative Agent promptly that any such document contains material non-public information:  (A) the Loan Documents and (B) notification of changes in the terms of the Credit Facilities provided for by this Agreement.
		

		
			Each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation
		

		
			

		 

		

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			on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable law, including United States Federal and state securities laws, to make reference to Communications that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws.
		

		
			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 Loan Documents.  Each Lender agrees that receipt of 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 Loan Documents.  Each Lender agrees 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 that the foregoing notice may be sent to such e-mail address.
		

		
			Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.
		

		
			SECTION 9.02      Survival of Agreement.  All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall survive the making by the Lenders of the Loans regardless of any investigation made by the Lenders or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any Yield Maintenance Amount or any Fee or any other amount payable under this Agreement or any other Loan Document is outstanding and unpaid and so long as the Commitments have not been terminated.  The provisions of Sections 2.12, 2.16 (subject to the requirements of Section 2.16) and 9.04 shall remain operative and in full force and effect regardless of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent, the Collateral Agent or any Lender.
		

		
			SECTION 9.03     Successors and Assigns.  (a)  Successors and Assigns Generally.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the Borrower, the Administrative Agent, the Collateral Agent or the Lenders that are contained in 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 the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section 9.03,
		

		
			

		 

		

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			(ii) by way of participation in accordance with the provisions of paragraph (d) of this Section 9.03, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this Section 9.03 (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement or the other Loan Documents, 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 paragraph (d) of this Section 9.03, the Collateral Agent and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Collateral Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement or the other Loan Documents.
		

		
			(b)        Assignments by Lenders.  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 Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:
		

		
			(i)         Minimum Amounts.
		

		
			(A)       in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Loans at the time owing to it or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section 9.03 in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
		

		
			(B)       in any case not described in paragraph (b)(i)(A) of this Section 9.03, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld, conditioned or delayed).
		

		
			(ii)        Proportionate Amounts.  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 with respect to the Loan or the Commitment assigned.
		

		
			(iii)      Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section 9.03 and, in addition, the consent of (A) the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed) shall be required for any assignment if such assignment is to a Person that is not a Lender and (B) during the Effective Availability Period and as long as no Default or Event of Default exists at such time, the
		

		
			
		

		
			

		 

		

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			Borrower; provided that the consent of the Borrower shall be solely based on the ability of the assignee to meet the funding obligations set forth herein (such consent not to be unreasonably withheld, conditioned or delayed).
		

		
			(iv)       Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire an IRS Form W-9 or and any tax forms required by applicable law or reasonably requested by the Administrative Agent to support such assignee’s position that no withholding is required in respect of any amount received hereunder and all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act.
		

		
			(v)        No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).
		

		
			(vi)       No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
		

		
			(vii)      Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Applicable Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
		

		
			Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section 9.03, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to
		

		
			

		 

		

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			the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.12, 2.16 (subject to the requirements of Section 2.16) and 9.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section 9.03.
		

		
			(c)        Register.  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in The City of New York a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of and interest on the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Collateral Agent 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.  The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior written notice.  Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, an Administrative Questionnaire completed in respect of the assignee (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) above, if applicable, the consent of the Administrative Agent and the Borrower to such assignment, if applicable, and any applicable Tax forms, the Administrative Agent shall (i) accept such Assignment and Assumption and (ii) record the information contained therein in the Register.  No assignment shall be effective unless it has been recorded in the Register as provided in this Section 9.03(c).
		

		
			(d)        Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided,  however, that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 2.15(c) with respect to any payments made by such Lender to its Participant(s).
		

		
			
		

		
			

		 

		

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			Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver decreasing any fees payable to such Participant hereunder or the amount of principal of or the rate at which interest is payable on the Loans in which such Participant has an interest, extending any scheduled principal payment date or date fixed for the payment of interest on the Loans in which such Participant has an interest, increasing or extending the Commitments in which such Participant has an interest or releasing all or substantially all of the value of the Guarantees or all or substantially all of the Collateral.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12(a) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 9.03; provided that such Participant agrees to be subject to the provisions of Sections 2.12(b) and 2.12(c) as if it were an assignee under paragraph (b) of this Section 9.03.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.05 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.14 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans or its other obligations under this Agreement or any other Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
		

		
			(e)        Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Sections 2.12 and 2.16 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, except (i) if the sale of the participation to such Participant is made with the Borrower’s prior written consent or (ii) to the extent that such entitlement to receive a greater payment results from a change in or in the interpretation of any law that occurs after the Participant acquired the participation.  A Participant shall not be entitled to the benefits of Section 2.16 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.16(f) as though it were a Lender (it being understood and agreed that the documentation required under Section 2.16(f) shall be delivered to the participating Lender).
		

		
			(f)        Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such
		

		
			
		

		
			

		 

		

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			Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
		

		
			(g)        Any Lender or participant may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.03, disclose to the assignee or Participant or proposed assignee or Participant any information relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided that, prior to any such disclosure of information designated by the Borrower as confidential, each such assignee or Participant or proposed assignee or Participant shall execute an agreement whereby such assignee or Participant shall agree (subject to customary exceptions) to preserve the confidentiality of such confidential information on terms no less restrictive than those applicable to the Lenders pursuant to Section 9.13.
		

		
			(h)        Notwithstanding anything to the contrary contained herein, and in accordance with 9.03(a), 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 to 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 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 neither the grant to any SPV nor the exercise by any SPV of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrower or any other Loan Party under this Agreement, and 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 will 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 of America or any State thereof.  In addition, notwithstanding anything to the contrary contained in this Section 9.03, 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 Administrative Agent) providing liquidity and/or credit support to or for the account of such SPV to support the funding or maintenance of Loans and (ii) 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.
		

		
			(i)         The Borrower shall not assign or delegate any of its rights or duties hereunder without the prior written consent of the Administrative Agent and each Lender, and any attempted assignment without such consent shall be null and void.
		

		
			
		

		
			

		 

		

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			SECTION 9.04      Expenses; Indemnity; Damage Waiver.  (a)  Costs and Expenses.  The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, its Affiliates and the Collateral Agent (including the reasonable fees, charges and disbursements of one primary counsel to the Administrative Agent and its Affiliates, one primary counsel to the Collateral Agent, one local counsel in each relevant jurisdiction, one special counsel in each relevant specialty and, in the event of any actual or potential conflict of interest, one additional counsel in each relevant jurisdiction for each Person subject to such conflict), in connection with the arranging of the Credit Facilities provided for by this Agreement, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent or any Lender (including the reasonable fees, charges and disbursements of one primary counsel to the Administrative Agent and the Lenders, one primary counsel to the Collateral Agent, one local counsel in each relevant jurisdiction, one special counsel in each relevant specialty and, in the event of any actual or potential conflict of interest, one additional counsel in each relevant jurisdiction for each Person subject to such conflict), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section 9.04(a), or (B) in connection with the Loans made hereunder, including all such reasonable out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.
		

		
			(b)        Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), the Collateral Agent, each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of one primary counsel to the Indemnitees, one local counsel in each relevant jurisdiction, one special counsel in each relevant specialty and, in the event of any actual or potential conflict of interest, one additional counsel in each relevant jurisdiction for each Person subject to such conflict), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Loan Party) other than such Indemnitee and its Related Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the Transactions and the other transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) in the case of Indemnitees other than the Collateral Agent, result from a claim brought by the Borrower or any
		

		
			
		

		
			

		 

		

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			other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.  Paragraph (b) of this Section shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.
		

		
			(c)        Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under paragraph (a) or (b) of this Section 9.04 to be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the Total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent), the Collateral Agent or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), or the Collateral Agent.
		

		
			(d)        Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b) of this Section 9.04 shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.
		

		
			(e)        Payments.  All amounts due under this Section 9.04 shall be payable promptly after demand therefor.
		

		
			(f)        Survival.  The provisions of, and each party’s obligations under, this Section 9.04 shall remain operative and in full force and effect regardless of the expiration or termination of this Agreement or the other Loan Documents, the consummation of the transactions contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, any investigation made by or on behalf of the Administrative Agent, the Collateral Agent or any Lender or the resignation or removal of the Administrative Agent or Collateral Agent.
		

		
			SECTION 9.05     Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply
		

		
			
		

		
			

		 

		

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			any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or its respective Affiliates, irrespective of whether or not such Lender or such Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.18 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender and its respective Affiliates under this Section 9.05 are in addition to other rights and remedies (including other rights of setoff) that such Lender or its respective Affiliates may have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.
		

		
			SECTION 9.06     Governing Law; Jurisdiction; Etc.    (a)  Governing Law.  This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York (without regard to principles of conflict of laws).
		

		
			(b)        Jurisdiction.  The Borrower irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such  courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts of any jurisdiction.
		

		
			
		

		
			

		 

		

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			(c)        Waiver of Venue.  The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section 9.06.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
		

		
			(d)        Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.
		

		
			SECTION 9.07      Waivers; Amendment.  (a)  No failure or delay of the Administrative Agent, the Collateral Agent or any Lender in exercising any power or right hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Collateral Agent, and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower or any other Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 9.07, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances.
		

		
			(b)        Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders (with a fully executed copy delivered to the Administrative Agent); provided,  however, that no such agreement shall:
		

		
			(i)         decrease the principal amount of, or extend the maturity of or any scheduled principal payment date or date for the payment of any interest or Yield Maintenance Amount on any Loan, or waive or excuse any such payment or any part thereof, or decrease the rate of interest or Yield Maintenance Amount on any Loan, without the prior written consent of each Lender directly adversely affected thereby,
		

		
			(ii)        increase or extend the Commitment or waive, decrease or extend the date for payment of any Fees of any Lender without the prior written consent of such Lender,
		

		
			(iii)      without the prior written consent of each Lender, amend or modify the pro rata requirements of Section 2.13, the provisions of Section 9.03(i) or the
		

		
			
		

		
			

		 

		

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			provisions of this Section 9.07 or release all or substantially all of the value of the Guarantees or all or substantially all of the Collateral,
		

		
			(iv)       modify the protections afforded to an SPV pursuant to the provisions of Section 9.03(h) without the written consent of such SPV,
		

		
			(v)        reduce the percentage contained in the definition of the term “Required Lenders” without the prior written consent of each Lender, or
		

		
			(vi)       if any Lender shall hold 50% or more of the aggregate Total Credit Exposures of all Lenders, amend or modify Section 4.02 of the U.S. Security Agreement without the prior written consent of such Lender and one additional Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the Collateral Agent hereunder or under any other Loan Document without the prior written consent of the Administrative Agent or the Collateral Agent.
		

		
			(c)        The Administrative Agent and the Borrower may amend any Loan Document to correct administrative or manifest errors or omissions, or to effect administrative changes that are not adverse to any Lender; provided,  however, that no such amendment shall become effective until the fifth Business Day after it has been delivered to the Lenders or otherwise posted for their attention on the Platform, and then only if the Required Lenders have not objected in writing thereto within such five Business Day period.
		

		
			SECTION 9.08     Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan or participation in accordance with applicable law, the rate of interest payable in respect of such Loan or participation hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan or participation but were not payable as a result of the operation of this Section 9.08 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or participations 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.  Any amount collected by such Lender that exceeds the maximum amount collectible at the Maximum Rate shall be applied to the reduction of the principal balance of such Loan or refunded to the Borrower so that at no time shall the interest and charges paid or payable in respect of such Loan exceed the maximum amount collectible at the Maximum Rate.
		

		
			SECTION 9.09      WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
		

		
			
		

		
			

		 

		

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			DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF A LEGAL PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.09.
		

		
			SECTION 9.10     Severability.  In the event any one or more of the provisions contained in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
		

		
			SECTION 9.11     Counterparts; Integration; Effectiveness; Electronic Execution.  (a)  Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.02, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
		

		
			(b)        Electronic Execution of Assignments.  The words “execution”,  “signed”,  “signature” and words of like import in any Assignment and Assumption 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.
		

		
			SECTION 9.12      Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and
		

		
			
		

		
			

		 

		

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			are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.
		

		
			SECTION 9.13     Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent requested by any regulatory authority, any self-regulatory authority or quasi-regulatory authority (such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (e) subject to an agreement containing provisions substantially the same as those of this Section 9.13, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (f) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Credit Facilities provided for by this Agreement or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Credit Facilities provided for by this Agreement; (g) with the consent of the Borrower; or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section 9.13, or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower.
		

		
			For purposes of this Section 9.13, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiary of the Borrower; provided that, in the case of information received from the Borrower or any Subsidiary of the Borrower after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section 9.13 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
		

		
			SECTION 9.14     USA PATRIOT Act Notice.  Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act and the Beneficial Ownership Regulation, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower (or any of its officers and beneficial owners) and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the USA PATRIOT Act and the Beneficial Ownership Regulation, and the Borrower agrees to provide such information from
		

		
			
		

		
			

		 

		

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			time to time to such Lender and the Administrative Agent, as applicable.  This notice is given in accordance with the requirements of the USA PATRIOT Act and the Beneficial Ownership Regulation and is effective for each Lender and the Administrative Agent.
		

		
			SECTION 9.15      Lender Action.  Each Lender agrees that it shall not take or institute any actions or proceedings, judicial or otherwise, for any right or remedy against any Loan Party or any other obligor under any of the Loan Documents (including the exercise of any right of setoff, rights on account of any banker’s lien or similar claim or other rights of self-help), or institute any actions or proceedings, or otherwise commence any remedial procedures, with respect to any Collateral or any other property of any such Loan Party, unless expressly provided for herein or in any other Loan Document, without the prior written consent of the Administrative Agent.  The provisions of this Section 9.15 are for the sole benefit of the Lenders and shall not afford any right to, or constitute a defense available to, any Loan Party.
		

		
			SECTION 9.16    Application of Proceeds.  Subject to the Collateral Agency Agreement, upon receipt from the Collateral Agent of the proceeds of any collection, sale, foreclosure or other realization upon any Collateral, including any Collateral consisting of cash, following the exercise of remedies provided for in Article VII (or after the Loans have automatically become due and payable as set forth in Article VII), the Administrative Agent shall apply such proceeds as follows:
		

		
			FIRST, to the payment of all costs and expenses incurred by the Administrative Agent (in its capacity as such hereunder or under any other Loan Document) in connection with such collection, sale, foreclosure or realization or otherwise in connection with this Agreement or any other Loan Document, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent hereunder or under any other Loan Document on behalf of any Loan Party and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; and
		

		
			SECOND, to the payment in full of all other Loan Document Obligations (the amounts so applied to be distributed among the Bank Secured Parties pro rata in accordance with the amounts of the Loan Document Obligations owed to them on the date of any such distribution).
		

		
			The Administrative Agent shall apply any such proceeds, moneys or balances in accordance with this Agreement promptly after receipt thereof.
		

		
			SECTION 9.17      Third Party Beneficiary.  The Collateral Agent shall be a third-party beneficiary of Article VIII and Sections 4.02, 5.12, 9.01, 9.04, 9.06, 9.09, 9.18, and shall have the right to enforce such Article VIII and Sections 4.02, 5.12, 9.01, 9.04, 9.06, 9.09, 9.18 directly to the extent the Collateral Agent may deem such enforcement necessary or advisable to protect the Collateral Agent’s rights.
		

		
			SECTION 9.18     Release of Collateral and Guarantees.  (a)  All security interests and Liens granted or created under the Collateral Documents shall automatically terminate when all the Loan Document Obligations (other than contingent amounts not yet due)
		

		
			
		

		
			

		 

		

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			have been paid in full and the Lenders have no further commitment to lend under this Agreement.
		

		
			(b)        A Subsidiary Guarantor shall automatically be released from its obligations under the Collateral Documents and all security interests and Liens granted or created thereunder in the Collateral and guarantee obligations of such Subsidiary Guarantor shall be automatically released and/or terminated upon the consummation of any transaction permitted by this Agreement as a result of which such Subsidiary Guarantor ceases to be a Subsidiary of the Borrower or, upon the Borrower’s written request, becomes an Unrestricted Subsidiary.
		

		
			(c)        Upon any sale or other transfer by any Loan Party of any Collateral that is permitted under this Agreement to any Person that is not another Loan Party, or, upon the effectiveness of any written consent required for the release of the security interest or Lien granted under the Collateral Documents in any Collateral pursuant to Section 9.07 (or, if later, the date such release is permitted to occur pursuant to such consent), the security interests and Liens in such Collateral shall be automatically released.
		

		
			(d)        In connection with any termination or release pursuant to paragraph (a) or (b) above or with respect to the sale or transfer of any asset constituting Collateral, if such Collateral is sold or otherwise disposed of to the Borrower or a Guarantor in a transaction permitted by the terms of this Agreement; provided that such Collateral shall be pledged as Collateral under the Collateral Documents contemporaneously with such partial release of Liens and sale or disposition to the Borrower or a Guarantor, in accordance with the requirements of this Agreement and the Collateral Documents, upon receipt of a certificate of a Responsible Officer, the Collateral Agent shall promptly execute and deliver to any Loan Party, at such Loan Party’s expense, all Uniform Commercial Code termination statements and other documents that such Loan Party shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section 9.18 shall be without recourse to or representation or warranty by the Collateral Agent or any Secured Party.  Without limiting the provisions of Section 9.04, the Borrower shall reimburse the Collateral Agent upon demand for all reasonable and documented costs and out-of-pocket expenses, including the reasonable and documented fees, charges and expenses of counsel, incurred by it in connection with any action contemplated by this Section 9.18.
		

		
			SECTION 9.19    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan 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 party hereto that is an EEA Financial Institution; and
		

		
			
		

		
			

		 

		

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			(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 entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.
		

		
			SECTION 9.20      Recognition of the U.S. Special Resolution Regimes.  In the event that any Lender that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Lender of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.  In the event that any Lender that is a Covered Entity or a BHC Act Affiliate of such Lender becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Lender are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.
		

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

			
					
						

					
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						PACIFIC DRILLING S.A.,

				
	
					
						 

					
					
						by 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						/s/ James Harris

				
	
					
						 

					
					
						 

					
					
						Name: James Harris 

				
	
					
						 

					
					
						 

					
					
						Title: Chief Financial Officer

				

		
			 
		

		
			 
		

		
			 
		

		

		 

		

			[Signature Page to Revolving Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						ADMINISTRATIVE AGENT:

					
					
						ANGELO, GORDON ENERGY SERVICER,
LLC, as Administrative Agent,

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						by

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Todd Dittmann

				
	
					
						 

					
					
						Name:  Todd Dittmann

				
	
					
						 

					
					
						Title:  Authorized Person

				

		
			 
		

		
			
		

		

		 

		

			[Signature Page to Revolving Credit Agreement]

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						AG ENERGY FUNDING, LLC, as the sole Lender

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						by

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Todd Dittmann

				
	
					
						 

					
					
						Todd Dittmann

				
	
					
						 

					
					
						Authorized Person

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Revolving Credit Agreement]

		

		

			 

		

		

		
			EXHIBIT A
		

		
			[FORM OF]
		

		
			ASSIGNMENT AND ASSUMPTION AGREEMENT
		

		
			This Assignment and Assumption Agreement (this “Assignment”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in 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 as if set forth herein in full.
		

		
			For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below, the interest in and to all of the Assignor’s rights and obligations under the Credit Agreement and any other documents or instruments delivered pursuant thereto that represents the amount and percentage interest identified below of all of the Assignor’s outstanding rights and obligations under the facility identified below (including letters of credit) (the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment, without representation or warranty by the Assignor.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Assignor:

					
					
						______________________________

				
	
					
						2.

					
					
						Assignee:

					
					
						______________________________ [and is an [Affiliate][Approved Fund]]1

				
	
					
						3.

					
					
						Borrower:

					
					
						Pacific Drilling S.A.

				
	
					
						4.

					
					
						Administrative Agent:

					
					
						Angelo, Gordon Energy Servicer, LLC, as Administrative Agent under the Credit Agreement

				
	
					
						5.

					
					
						Credit Agreement

					
					
						The $50,000,000 Revolving Credit Agreement dated as of February 7, 2020 among Pacific Drilling S.A., the Lenders from time to time party thereto and Angelo, Gordon Energy Servicer, LLC, as Administrative Agent.

				

		
			 
		

		

		
			1       Select as applicable.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			 
		

			
					
						6.

					
					
						Assigned Interest:

					
					
						 

				

		
			 
		

			
					
						Aggregate Amount of
Commitment/Loans for all
Lenders

					
					
						Amount of
Commitment/Loans of
Assignor Assigned

					
					
						Percentage Assigned of
Commitment/Loans2

				
	
					
						$

					
					
						$

					
					
						%

				
	
					
						$

					
					
						$

					
					
						%

				
	
					
						$

					
					
						$

					
					
						%

				

		
			 
		

		
			Effective Date: _____________ ___, 20___ [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
		

		
			The terms set forth in this Assignment are hereby agreed to:
		

			
					
						 

					
					
						ASSIGNOR

				
	
					
						 

					
					
						[NAME OF ASSIGNOR]

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ASSIGNEE

				
	
					
						 

					
					
						[NAME OF ASSIGNEE]

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		

		
			2       Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.
		

		
			 
		

		
			
		

		
			

		 

		

			[Signature Page to Assignment and Assumption Agreement]

		

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						[Consented to:3

					
					
						 

				
	
					
						ANGELO, GORDON ENERGY SERVICER, LLC, as Administrative Agent

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						[Consented to:4

					
					
						 

				
	
					
						PACIFIC DRILLING S.A.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:]

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			3         Administrative Agent’s consent required (i) if assigning less than $1,000,000 and such assignment is not pursuant to Section 9.03(b)(i)(A) or (ii) if assigning to a Person that is not a Lender.
		

		
			4         Borrower’s consent required during the Effective Availability Period if no Event of Default has occurred and is continuing, and solely based on the ability of the assignee to meet its funding obligations.
		

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Assignment and Assumption Agreement]

		

		

			 

		

		

		
			ANNEX 1
		

		
			PACIFIC DRILLING S.A.
		

		
			$50,000,000 REVOLVING CREDIT AGREEMENT
		

		
			STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
		

		
			AND ASSUMPTION AGREEMENT
		

		
			1.         Representations and Warranties.
		

		
			1.1       Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and 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 any Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document delivered pursuant thereto, other than this Assignment (herein collectively the “Loan 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 Loan 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 Loan Document.
		

		
			1.2       Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement and, to the extent of the 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 Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type and (v) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.04 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which it has made such analysis and decision; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
		

		
			2.         Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
		

		
			

		 

		

			 

		

		

			 

		

		

		
			3.         General Provisions.  This Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment 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 by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment.  THIS ASSIGNMENT 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 (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS).
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			EXHIBIT B
		

		
			[FORM OF]
		

		
			BORROWING REQUEST
		

		
			___________, 202[__]
		

		
			 
		

		
			Angelo, Gordon Energy Servicer, LLC,
		

		
			as Administrative Agent
		

		
			245 Park Avenue
		

		
			New York, New York 10167
		

		
			Attention: Robert Barrett, Paul Gottheim, Scott McMurtry and Frank Dale
		

		
			 
		

		
			Ladies and Gentlemen:
		

		
			The undersigned, Pacific Drilling S.A. (the “Borrower”), refers to the Revolving Credit Agreement dated as of February 7, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement), among the Borrower, the Lenders from time to time party thereto and Angelo, Gordon Energy Servicer, LLC, as Administrative Agent, and hereby gives you notice, irrevocably, pursuant to Section 2.03 of the Credit Agreement, that the undersigned hereby requests a Borrowing under the Credit Agreement, and in connection therewith sets forth below the information relating to such Borrowing as required by Section 2.03 of the Credit Agreement:
		

		
			(i)         The date of the requested Borrowing is __________, ____.
		

		
			(ii)        The aggregate amount of the requested Borrowing is $____________.
		

		
			(iii)      The account to which funds are to be disbursed is:
		

		
			[Name of Bank]
		

		
			[City of Bank]
		

		
			Beneficiary:        []
		

		
			Account No.:      [number]
		

		
			ABA No.:           [number]
		

		
			Attention:           [name]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			The Borrower hereby represents and warrants that (a) the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document shall be true and correct (i) in the case of the representations and warranties qualified as to materiality, in all respects and (ii) otherwise, in all material respects, in each case on and as of the date of the Borrowing requested hereby with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date, (b) at the time of and immediately after the Borrowing, no Default or Event of Default shall have occurred and be continuing, and (c) on a pro forma basis giving effect to such Credit Event, the Borrower’s ratio of (i) the sum of (A) Eligible Accounts Receivable as of such date and (B) Unrestricted Cash as of such date to (ii) the Total Commitments as of such date is not less than 1.3 to 1.0.
		

			
					
						 

					
					
						PACIFIC DRILLING S.A.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						by

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Borrowing Request]

		

		

			 

		

		

		
			EXHIBIT C
		

		
			[FORM OF]
		

		
			 
		

		
			GUARANTEE AGREEMENT5
		

		
			 
		

		
			[See attached]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			5       NTD: To attach agreed form.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			EXHIBIT D
		

		
			[FORM OF]
		

		
			PROMISSORY NOTE
		

			
					
						$[      ]

					
					
						[               ], 202[__]

				

		
			 
		

		
			FOR VALUE RECEIVED, Pacific Drilling, S.A., a public limited liability company (société anonyme) organized under the laws of the Grand Duchy of Luxembourg (the “Borrower”) hereby promises to pay to [      ] or its registered assigns (the “Lender”), at the principal office of Angelo, Gordon Energy Servicer, LLC, as administrative agent (the “Administrative Agent”) for the Lenders designated in Schedule 2.01 of the Credit Agreement, as hereinafter defined, the principal sum of [  ] Dollars ($[      ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrower under the Credit Agreement), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.
		

		
			The date, amount and maturity of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, may be endorsed by the Lender on the schedules attached hereto or any continuation thereof or on any separate record maintained by the Lender.  Failure to make any such notation or to attach a schedule shall not affect any Lender’s or the Borrower’s rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of this Note.
		

		
			This Note is one of the Notes referred to in the Credit Agreement dated as of February 7, 2020 among the Borrower, the Administrative Agent and lenders signatory thereto (including the Lender), and evidences Loans made by the Lender thereunder (such Credit Agreement as the same may be amended, supplemented or restated from time to time, the “Credit Agreement”).  Capitalized terms used in this Note have the respective meanings assigned to them in the Credit Agreement.
		

		
			This Note is issued pursuant to, and is subject to the terms and conditions set forth in, the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents.  The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Loans upon the terms and conditions specified therein and other provisions relevant to this Note.
		

		
			THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
		

		
			
		

		

		 

		

			 

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PACIFIC DRILLING S.A.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			EXHIBIT E
		

		
			[FORM OF]
		

		
			 
		

		
			PACIFIC DRILLING S.A.
		

		
			CERTIFICATE OF UNRESTRICTED CASH
		

		
			 
		

		
			[], 20[]
		

		
			 
		

		
			This Certificate is delivered pursuant to Section 4.02(o) of that certain Revolving Credit Agreement dated as of February 7, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement), among Pacific Drilling S.A. (the “Borrower”), the Lenders from time to time party thereto and Angelo, Gordon Energy Servicer, LLC, as administrative agent (in such capacity, the “Administrative Agent”). Capitalized terms used herein that are not defined herein shall have the meanings assigned to such terms in the Credit Agreement.
		

		
			I, [], the []6 of the Borrower, do hereby certify, solely in my capacity as the [] and not individually, as follows:
		

		
			1.   I am a duly qualified and acting Financial Officer of the Borrower, and, as such, I am familiar with the Borrower’s accounting and records systems, and I am qualified to certify the information contained herein.
		

		
			2.   As of [], 20[]7, the Borrower and its Restricted Subsidiaries, on a consolidated basis, had Unrestricted Cash in the amount of $[].
		

		
			This Certificate is being delivered to Angelo, Gordon Energy Servicer, LLC, in its capacity as Administrative Agent under the Credit Agreement, and is not to be used, circulated, quoted, or otherwise referred to without the Borrower’s prior written consent.
		

		
			[Signature Page Follows]
		

		
			 
		

		

		
			6       Certificate to be delivered by the chief executive officer, chief financial officer, chief accounting officer or treasurer of the Borrower.
		

		
			7       Unrestricted Cash to be provided after giving effect to the Transactions.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			IN WITNESS THEREOF, I have duly executed this Certificate as of the date first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			
		

		
			

		 

		

			[Signature Page to Certificate of Unrestricted Cash]

		

		

			 

		

		

		
			SCHEDULE 1.01
		

		
			Subsidiary Guarantors
		

		
			1.   Pacific Drilling Operations Limited
		

		
			2.   Pacific Drilling V Limited
		

		
			3.   Pacific Drilling VII Limited
		

		
			4.   Pacific Drillship Nigeria Limited
		

		
			5.   Pacific Sharav Korlátolt Felelösségũ Társaság
		

		
			6.   Pacific Bora Ltd.
		

		
			7.   Pacific Mistral Ltd.
		

		
			8.   Pacific Scirocco Ltd.
		

		
			9.   Pacific Drilling Limited
		

		
			10. Pacific Drilling, Inc.
		

		
			11. Pacific Drilling Operations, Inc.
		

		
			12. Pacific Drilling, LLC
		

		
			13. Pacific Drilling Finance S.à r.l.
		

		
			14. Pacific Drillship S.à r.l.
		

		
			15. Pacific Santa Ana Limited
		

		
			16. Pacific Sharav S.à r.l.
		

		
			17. Pacific Drilling (Gibraltar) Limited
		

		
			18. Pacific Drillship (Gibraltar) Limited
		

		
			19. Pacific Drilling Holding (Gibraltar) Limited
		

		
			20. Pacific Santa Ana (Gibraltar) Limited
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 1.01(L)
		

		
			Liens Existing on the Closing Date
		

		
			[None.]
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 2.01
		

		
			Lenders and Commitments
		

			
					
						 

					
					
						 

				
	
					
						Lender

					
					
						Revolving Commitment

				
	
					
						AG Energy Funding, LLC

					
					
						$50,000,000.00

				
	
					
						Total

					
					
						$50,000,000.00

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.08(a)
		

		
			Subsidiaries
		

			
					
						 

					
					
						 

					
					
						 

					
						 

					
					
						 

				
	
					
						Subsidiary

					
					
						Jurisdiction of
Subsidiary

					
					
						Registered

					
						Owner

					
					
						Percentage
of Equity
Interests

				
	
					
						Pacific Drilling Operations Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling Limited 

					
					
						100%

				
	
					
						Pacific Drilling V Limited

					
					
						British Virgin Islands

					
					
						Pacific Drillship (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Drilling VII Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Drillship Nigeria Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling Limited

					
						Pacific International Drilling

					
						West Africa Limited 

					
					
						0.1%

					
						 

					
						99.9%

				
	
					
						Pacific Sharav Korlátolt Felelősségű Társaság

					
					
						Hungary

					
					
						Pacific Drilling (Gibraltar)

					
						Limited

					
					
						100%

				
	
					
						Pacific Bora Ltd.

					
					
						Liberia

					
					
						Pacific Drilling Limited

					
						Pacific Drillship Nigeria

					
						Limited 

					
					
						49.9%

					
						 

					
						50.1%

				
	
					
						Pacific Mistral Ltd.

					
					
						Liberia

					
					
						Pacific Drilling Limited

					
					
						100%

				
	
					
						Pacific Scirocco Ltd.

					
					
						Liberia

					
					
						Pacific Drilling Limited

					
						Pacific Drillship Nigeria

					
						Limited 

					
					
						49.9%

					
						 

					
						50.1%

				
	
					
						Pacific Drilling Limited

					
					
						Liberia

					
					
						Pacific Drilling (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Drilling, Inc.

					
					
						Delaware

					
					
						Pacific Drilling Manpower S.à r.l. 

					
					
						100%

				
	
					
						Pacific Drilling Operations, Inc.

					
					
						Delaware

					
					
						Pacific Sharav S.à r.l.

					
					
						100%

				
	
					
						Pacific Drilling, LLC

					
					
						New York

					
					
						Pacific Drilling Operations

					
						Limited 

					
					
						100%

				

		
			
		

		

		 

		

			 

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
						 

					
					
						 

					
						 

				
	
					
						Subsidiary

					
					
						Jurisdiction of Subsidiary

					
					
						Registered

					
						Owner

					
					
						Percentage

					
						of Equity Interests

				
	
					
						Pacific Drilling Finance S.à r.l.

					
					
						Luxembourg

					
					
						Pacific Drilling (Gibraltar)

					
						Limited

					
					
						100%

				
	
					
						Pacific Drillship S.à r.l.

					
					
						Luxembourg

					
					
						Pacific Drilling (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Santa Ana Limited

					
					
						British Virgin Islands

					
					
						Pacific Santa Ana (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Sharav S.à r.l.

					
					
						Luxembourg

					
					
						Pacific Drilling (Gibraltar)

					
						Limited 

					
					
						100%

				
	
					
						Pacific Drilling (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Pacific Drilling Holding (Gibraltar) Limited 

					
					
						100%

				
	
					
						Pacific Drillship (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Pacific Drilling Holding (Gibraltar) Limited

					
					
						100%

				
	
					
						Pacific Drilling Holding (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Pacific Drilling S.A. 

					
					
						100%

				
	
					
						Pacific Santa Ana (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Pacific Drilling Limited

					
					
						100%

				
	
					
						Pacific International Drilling West Africa Limited

					
					
						Nigeria

					
					
						Pacific Drilling Operations

					
						Limited

					
					
						49%

				
	
					
						Pacific Drilling Manpower

					
						S.à r.l.

					
					
						Luxembourg

					
					
						Pacific Drilling Holding (Gibraltar) Limited

					
					
						100%

				
	
					
						Pacific Drilling South America 1 Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling South America 2 Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling N.V.

					
					
						Netherland Antilles - Curacao

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling Netherlands Cooperatif

					
					
						Netherlands

					
					
						Pacific Drilling N.V.

					
						 

					
						Pacific Drilling Operations Limited

					
					
						99%

					
						 

					
						1%

				

		
			
		

		

		 

		

			 

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
						 

					
					
						 

					
						 

				
	
					
						Subsidiary

					
					
						Jurisdiction of Subsidiary

					
					
						Registered

					
						Owner

					
					
						Percentage

					
						of Equity Interests

				
	
					
						Pacific Deepwater Construction Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling Services Pte. Ltd.

					
					
						Singapore

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling International, LLC

					
					
						Delaware

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling International Ltd.

					
					
						British Virgin Islands

					
					
						Pacific Drilling International LLC 

					
					
						100%

				
	
					
						Pacific Drilling Manpower Ltd.

					
					
						British Virgin Islands

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Drilling Services, Inc. 

					
					
						Delaware

					
					
						Pacific Drilling, LLC

					
					
						100%

				
	
					
						Pacific Drilling Administrator Limited

					
					
						British Virgin Islands

					
					
						Pacific Drilling (Gibraltar) Limited 

					
					
						100%

				
	
					
						Pacific Drilling Manpower, Inc.

					
					
						Delaware

					
					
						Pacific Drilling Holding (Gibraltar) Limited

					
					
						100%

				
	
					
						Pacific Drilling VIII Limited 

					
					
						British Virgin Islands

					
					
						Pacific Drilling Holding (Gibraltar) Ltd.

					
					
						100%

				
	
					
						Pacific Drilling Ghana Limited

					
					
						Ghana

					
					
						Pacific Drilling Operations Limited

					
					
						100%

				
	
					
						Pacific Menergy Ghana Limited

					
					
						Ghana

					
					
						Pacific Drilling Ghana Limited

					
					
						90%

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.08(b)
		

		
			Unrestricted Subsidiaries
		

		
			None.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.09
		

		
			Litigation
		

		
			None.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.17
		

		
			Environmental Matters
		

		
			None.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.18
		

		
			Insurance
		

		
			See attached.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.19(a)
		

		
			UCC Filing Offices
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Collateral Grantor

					
					
						Jurisdiction

					
					
						UCC Filing Office/Local Filing Office

				
	
					
						Pacific Drilling S.A.

					
					
						Luxembourg

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling Operations Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling V Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling VII Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling VIII Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drillship Nigeria Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Sharav Korlátolt Felelősségű Társaság

					
					
						Hungary

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Bora Ltd.

					
					
						Liberia

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Mistral Ltd.

					
					
						Liberia

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Scirocco Ltd.

					
					
						Liberia

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling Limited

					
					
						Liberia

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling, Inc.

					
					
						Delaware

					
					
						Secretary of State, Delaware

				
	
					
						Pacific Drilling Services, Inc.

					
					
						Delaware

					
					
						Secretary of State, Delaware

				
	
					
						Pacific Drilling Operations, Inc.

					
					
						Delaware

					
					
						Secretary of State, Delaware

				
	
					
						Pacific Drilling, LLC

					
					
						New York

					
					
						Department of State, New York

				
	
					
						Pacific Drilling Finance S.à r.l.

					
					
						Luxembourg

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drillship S.à r.l.

					
					
						Luxembourg

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Santa Ana Limited

					
					
						British Virgin Islands

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Sharav

					
						S.à r.l.

					
					
						Luxembourg

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drillship (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Drilling Holding (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				
	
					
						Pacific Santa Ana (Gibraltar) Limited

					
					
						Gibraltar

					
					
						Recorder of Deeds, District of Columbia

					
						Secretary of State, Texas

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.20(a)
		

		
			Owned Real Property
		

		
			None.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.20(b)
		

		
			Leased Real Property
		

			
					
						 

					
					
						 

				
	
					
						Lessee

					
					
						Leased Location

				
	
					
						Pacific Drilling S.A.

					
					
						8-10 Avenue de la Gare, L1610 Luxembourg

				
	
					
						Pacific Drilling S.A.

					
					
						11700 Katy Fwy, #175, Houston, TX 77079

				
	
					
						Pacific International Drilling West Africa Limited

					
					
						7th floors, Mulliner Towers, 39 Alfred Rewane Road, Lagos, Nigeria

				
	
					
						Pacific Drilling S.A.

					
					
						Reef Tower, Reef Tower Unit R29-12-13, JLT, Dubai, UAE

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.20(c)
		

		
			Collateral Vessels
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Collateral
Vessel

					
					
						Description

					
					
						Operating Status / Country in
Which Collateral Vessel is
Chartered

				
	
					
						Pacific Bora

					
					
						Liberian flag 6th generation drillship owned by Pacific Bora Ltd.; Official Number 14745

					
					
						Mobilizing to Oman.

				
	
					
						Pacific Khamsin

					
					
						Liberian flag 7th generation drillship owned by Pacific Drilling V Limited, Official Number 15856

					
					
						In service in the U.S. Gulf of Mexico.

				
	
					
						Pacific Meltem

					
					
						Liberian flag 7th generation drillship owned by Pacific Drilling VII Limited; Official Number 16410

					
					
						Currently idle in Las Palmas.

				
	
					
						Pacific Mistral

					
					
						Liberian flag 6th generation drillship owned by Pacific Mistral Ltd.; Official Number 14747

					
					
						Currently idle in Las Palmas.

				
	
					
						Pacific Santa Ana

					
					
						Liberian flag 6th generation drillship  owned by Pacific Santa Ana Limited; Official Number 14748

					
					
						In service off the coast of Mauritania.

				
	
					
						Pacific Sharav

					
					
						Liberian flag 7th generation drillship  owned by Pacific Drilling S.A; Official Number 16002

					
					
						In service in the U.S. Gulf of Mexico.

				
	
					
						Pacific Scirocco

					
					
						Liberian flag 6th generation drillship  owned by Pacific Scirocco Ltd.; Official Number 14746

					
					
						Currently idle in Las Palmas.

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 3.23
		

		
			IP Rights
		

		
			None.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE 4.02(a)
		

		
			Local Counsel
		

		
			1.   Appleby
		

		
			2.   Adepetun Caxton-Martins Agbor & Segun
		

		
			3.   Hassans International Law Firm
		

		
			4.   Forgó, Damjanovic & Partners Law Firm
		

		
			5.   Seward & Kissel LLP
		

		
			6.   Wildgen S.A.Exhibit 101

		

			Exhibit 10.1

		

		

			 

		

			
					
						﻿

					
						 

					
						 

					
						 

				
	
					
						
EXECUTION VERSION

					
						 

					
						

					
						 

				
	
					
						CREDIT AGREEMENT

					
						dated as of

					
						
February 6, 2020

					
						
among

					
						PAYCHEX ADVANCE LLC,
as Borrower

					
						PAYCHEX, INC.,
as Parent

					
						The Lenders Party Hereto

PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent

				
	
					
						﻿

					
						 

				
	
					
						﻿

				

		
			﻿
		

		
			 
		

		 

 

		

			TABLE OF CONTENTS

		

		

			Page

		

			
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE I Definitions

					1 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 1.01. Defined Terms

					1 
				
	
					
						﻿SECTION 1.02. Classification of Loans and Borrowings

					31 
				
	
					
						﻿SECTION 1.03. Terms Generally

					31 
				
	
					
						﻿SECTION 1.04. Accounting Terms; GAAP; Pro Forma Calculations

					31 
				
	
					
						﻿SECTION 1.05. Status of Obligations

					32 
				
	
					
						﻿SECTION 1.06. Interest Rates; LIBOR Notification

					32 
				
	
					
						﻿SECTION 1.07. Divisions

					33 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE II The Credits

					33 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 2.01. Commitments

					33 
				
	
					
						﻿SECTION 2.02. Loans and Borrowings

					33 
				
	
					
						﻿SECTION 2.03. Requests for Borrowings

					34 
				
	
					
						﻿SECTION 2.04. Determination of Dollar Amounts

					35 
				
	
					
						﻿SECTION 2.05. [Intentionally Omitted]

					35 
				
	
					
						﻿SECTION 2.06. Letters of Credit

					35 
				
	
					
						﻿SECTION 2.07. Funding of Borrowings

					40 
				
	
					
						﻿SECTION 2.08. Interest Elections

					41 
				
	
					
						﻿SECTION 2.09. Termination and Reduction of Commitments

					42 
				
	
					
						﻿SECTION 2.10. Repayment of Loans; Evidence of Debt

					43 
				
	
					
						﻿SECTION 2.11. Prepayment of Loans

					43 
				
	
					
						﻿SECTION 2.12. Fees

					44 
				
	
					
						﻿SECTION 2.13. Interest

					45 
				
	
					
						﻿SECTION 2.14. Alternate Rate of Interest

					46 
				
	
					
						﻿SECTION 2.15. Increased Costs

					48 
				
	
					
						﻿SECTION 2.16. Break Funding Payments

					49 
				
	
					
						﻿SECTION 2.17. Taxes

					49 
				
	
					
						﻿SECTION 2.18. Payments Generally; Allocation of Proceeds; Pro Rata Treatment; Sharing of Setoffs

					53 
				
	
					
						﻿SECTION 2.19. Mitigation Obligations; Replacement of Lenders

					54 
				
	
					
						﻿SECTION 2.20. [Intentionally Omitted]

					55 
				
	
					
						﻿SECTION 2.21. Judgment Currency

					55 
				
	
					
						﻿SECTION 2.22. Defaulting Lenders

					56 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE III Representations and Warranties

					58 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 3.01. Organization; Powers; Subsidiaries

					58 
				
	
					
						﻿SECTION 3.02. Authorization; Enforceability

					58 
				
	
					
						﻿SECTION 3.03. Governmental Approvals; No Conflicts

					58 
				
	
					
						﻿SECTION 3.04. Financial Condition; No Material Adverse Change

					59 
				
	
					
						﻿SECTION 3.05. Properties

					59 
				
	
					
						﻿SECTION 3.06. Litigation, Environmental and Labor Matters

					59 
				
	
					
						﻿SECTION 3.07. Compliance with Laws and Agreements

					60 
				
	
					
						﻿SECTION 3.08. Investment Company Status

					60 
				
	
					
						﻿SECTION 3.09. Taxes

					60 
				
	
					
						﻿SECTION 3.10. ERISA

					60 
				

		

		

		 

		

			 

		

 

		

			TABLE OF CONTENTS
(continued)

		

		

			Page

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 3.11. Disclosure

					60 
				
	
					
						﻿SECTION 3.12. Federal Reserve; Margin Regulations

					60 
				
	
					
						﻿SECTION 3.13. Liens

					60 
				
	
					
						﻿SECTION 3.14. No Default

					60 
				
	
					
						﻿SECTION 3.15. Anti-Corruption Laws and Sanctions

					61 
				
	
					
						﻿SECTION 3.16. EEA Financial Institutions

					61 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE IV Conditions

					61 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 4.01. Effective Date

					61 
				
	
					
						﻿SECTION 4.02. Each Credit Event

					62 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE V Affirmative Covenants

					62 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 5.01. Financial Statements and Other Information

					63 
				
	
					
						﻿SECTION 5.02. Notices of Material Events

					64 
				
	
					
						﻿SECTION 5.03. Existence; Conduct of Business

					64 
				
	
					
						﻿SECTION 5.04. Payment of Obligations

					64 
				
	
					
						﻿SECTION 5.05. Maintenance of Properties; Insurance

					65 
				
	
					
						﻿SECTION 5.06. Books and Records; Inspection Rights

					65 
				
	
					
						﻿SECTION 5.07. Compliance with Laws and Material Contractual Obligations

					65 
				
	
					
						﻿SECTION 5.08. Use of Proceeds

					65 
				
	
					
						﻿SECTION 5.09. Subsidiary Guaranty

					65 
				
	
					
						﻿SECTION 5.10. Primary Operating Accounts

					66 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE VI Negative Covenants

					66 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 6.01. Indebtedness

					66 
				
	
					
						﻿SECTION 6.02. Liens

					70 
				
	
					
						﻿SECTION 6.03. Fundamental Changes and Asset Sales

					72 
				
	
					
						﻿SECTION 6.04. Swap Agreements

					73 
				
	
					
						﻿SECTION 6.05. Transactions with Affiliates

					74 
				
	
					
						﻿SECTION 6.06. [Intentionally Omitted]

					74 
				
	
					
						﻿SECTION 6.07. Financial Covenants

					74 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE VII

					75 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 7.01. Events of Default

					75 
				
	
					
						﻿SECTION 7.02. Remedies Upon an Event of Default

					77 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿Article VIII The Administrative Agent

					78 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 8.01. Authorization and Action

					78 
				
	
					
						﻿SECTION 8.02. Administrative Agent’s Reliance, Indemnification, Etc.

					80 
				
	
					
						﻿SECTION 8.03. Posting of Communications

					81 
				
	
					
						﻿SECTION 8.04. The Administrative Agent Individually

					82 
				

		
			﻿
		

		
			﻿
		

		
			ii
		

		 

		

			 

		

 

		

			TABLE OF CONTENTS
(continued)

		

		

			Page

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 8.05. Successor Administrative Agent

					82 
				
	
					
						﻿SECTION 8.06. Acknowledgements of Lenders and Issuing Banks

					83 
				
	
					
						﻿SECTION 8.07. Certain ERISA Matters

					83 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE IX Miscellaneous

					85 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 9.01. Notices

					85 
				
	
					
						﻿SECTION 9.02. Waivers; Amendments

					86 
				
	
					
						﻿SECTION 9.03. Expenses; Indemnity; Damage Waiver

					88 
				
	
					
						﻿SECTION 9.04. Successors and Assigns

					89 
				
	
					
						﻿SECTION 9.05. Survival

					93 
				
	
					
						﻿SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution

					94 
				
	
					
						﻿SECTION 9.07. Severability

					94 
				
	
					
						﻿SECTION 9.08. Right of Setoff

					94 
				
	
					
						﻿SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process

					95 
				
	
					
						﻿SECTION 9.10. WAIVER OF JURY TRIAL

					95 
				
	
					
						﻿SECTION 9.11. Headings

					96 
				
	
					
						﻿SECTION 9.12. Confidentiality

					96 
				
	
					
						﻿SECTION 9.13. USA PATRIOT Act

					97 
				
	
					
						﻿SECTION 9.14. Releases of Subsidiary Guarantors

					97 
				
	
					
						﻿SECTION 9.15. Interest Rate Limitation

					97 
				
	
					
						﻿SECTION 9.16. No Fiduciary Duty, etc

					98 
				
	
					
						﻿SECTION 9.17. Acknowledgement and Consent to Bail-In of EEA Financial Institutions

					98 
				
	
					
						﻿SECTION 9.18. Acknowledgement Regarding Supported QFCs

					99 
				
	
					
						﻿SECTION 9.19. Independence of Covenants

					100 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿ARTICLE X

					100 
				
	
					
						﻿

					
					
						 

				
	
					
						﻿SECTION 10.01. Guaranty

					100 
				
	
					
						﻿SECTION 10.02. Guaranty of Payment

					100 
				
	
					
						﻿SECTION 10.03. Continuing Guarantee; No Discharge or Diminishment of Loan Guaranty

					101 
				
	
					
						﻿SECTION 10.04. Defenses Waived

					101 
				
	
					
						﻿SECTION 10.05. Rights of Subrogation

					102 
				
	
					
						﻿SECTION 10.06. Reinstatement; Stay of Acceleration

					102 
				
	
					
						﻿SECTION 10.07. Information

					102 
				
	
					
						﻿SECTION 10.08. Taxes

					102 
				
	
					
						﻿SECTION 10.09. Maximum Liability

					102 
				
	
					
						﻿SECTION 10.10. Liability Cumulative

					103 
				
	
					
						﻿SECTION 10.11. Limitation of Guaranty

					103 
				
	
					
						﻿SECTION 10.12. Keepwell

					103 
				

		
			﻿
		

		
			﻿
		

		
			iii
		

		
			 
		

		 

		

			 

		

 

		

			TABLE OF CONTENTS

		

		

			 

		

			
					
						 

				
	
					
						SCHEDULES:

				
	
					
						 

				
	
					
						Schedule 2.01A – Commitments

					
						Schedule 2.01B – Letter of Credit Commitments

				
	
					
						Schedule 3.01 – Subsidiaries

				
	
					
						Schedule 6.01 – Existing Indebtedness

				
	
					
						Schedule 6.02 – Existing Liens

				
	
					
						 

				
	
					
						EXHIBITS:

				
	
					
						 

				
	
					
						Exhibit A – Form of Assignment and Assumption

				
	
					
						Exhibit B – Form of Opinion of Loan Parties’ Counsel

				
	
					
						Exhibit C – [Intentionally Omitted]

				
	
					
						Exhibit D – [Intentionally Omitted]

				
	
					
						Exhibit E – List of Closing Documents

				
	
					
						Exhibit F – Form of Subsidiary Guaranty

				
	
					
						Exhibit G-1 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)

				
	
					
						Exhibit G-2 – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)

				
	
					
						Exhibit G-3 – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)

				
	
					
						Exhibit G-4 – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)

				
	
					
						Exhibit H-1 – Form of Borrowing Request

				
	
					
						Exhibit H-2 – Form of Interest Election Request

				
	
					
						Exhibit I – Form of Note

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			iv
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		CREDIT AGREEMENT (this “Agreement”) dated as of February 6, 2020 among PAYCHEX ADVANCE LLC, a New York limited liability company (the “Borrower”), PAYCHEX, INC., a Delaware corporation (the “Parent”), the LENDERS from time to time party hereto, and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent.
		

		
			The parties hereto agree as follows:
		

		
			Article I
Definitions
		

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

		
			“ABR”, when used in reference to any Loan or Borrowing, refers to a Loan, or the Loans comprising such Borrowing, bearing interest at a rate determined by reference to the Alternate Base Rate.
		

		
			“Adjusted Daily LIBO Rate” means, with respect to any Eurocurrency Daily LIBO Rate Borrowing for any day, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) in the case of any Eurocurrency Daily LIBO Rate Borrowing denominated in a LIBOR Quoted Currency, (i) the Daily LIBO Rate for such LIBOR Quoted Currency multiplied by (ii) the Statutory Reserve Rate. 
		

		
			“Adjusted LIBO Rate” means, with respect to any Eurocurrency LIBO Rate Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) in the case of any Eurocurrency LIBO Rate Borrowing denominated in a LIBOR Quoted Currency, (i) the LIBO Rate for such LIBOR Quoted Currency for such Interest Period multiplied by (ii) the Statutory Reserve Rate and (b) in the case of any Eurocurrency LIBO Rate Borrowing denominated in Canadian Dollars, the CDOR Rate for such Interest Period.
		

		
			“Administrative Agent” means PNC Bank, National Association (including its branches and affiliates), in its capacity as administrative agent for the Lenders hereunder.
		

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

		
			“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
		

		
			“Aggregate Commitment” means the aggregate of the Commitments of all of the Lenders, as reduced or increased from time to time pursuant to the terms and conditions hereof.  The initial Aggregate Commitment as of the Effective Date is $250,000,000.
		

		
			“Agreed Currencies” means (i) Dollars, (ii) euro, (iii) Pounds Sterling, (iv) Canadian Dollars and (v) any other currency (x) that is a lawful currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars, (y) for which a LIBO Screen Rate is available in the Administrative Agent’s reasonable determination and (z) that is agreed to by the Administrative Agent and each of the Lenders.
		

		 

		

			 

		

 

		

			 

		

		
		

		
			“Agreement” has the meaning assigned to such term in the introductory paragraph.
		

		
			“Alternate Base Rate”  means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period in Dollars on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this definition, the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one month Interest Period, the LIBO Interpolated Rate with respect to Dollars) at approximately 11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.14, then the Alternate Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the foregoing would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.
		

		
			“Alternative Rate” has the meaning assigned to such term in Section 2.14(a).
		

		
			“Anti-Corruption Laws” means the FCPA and the UK Bribery Act and any other similar laws, rules and regulations of any jurisdiction applicable to the Loan Parties concerning or relating to bribery or corruption.
		

		
			“Applicable Party” has the meaning assigned to such term in Section 8.03(c).
		

		
			“Applicable Percentage” means, with respect to any Lender, the percentage of the Aggregate Commitment represented by such Lender’s Commitment; provided that, in the case of Section 2.22 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the percentage of the Aggregate Commitment (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.
		

		
			“Applicable Rate” means, for any day, with respect to any Eurocurrency Loan or any ABR Loan or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Eurocurrency Spread”, “ABR Spread” or “Commitment Fee Rate”, as the case may be, based upon the Pricing Level applicable on such date:
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pricing Level

					
					
						Eurocurrency
Spread

					
					
						ABR
Spread

					
					
						Commitment
Fee Rate

				
	
					
						Level I:

					
					
						0.625%

					
					
						0%

					
					
						0.050%

				
	
					
						Level II:

					
					
						0.750%

					
					
						0%

					
					
						0.075%

				
	
					
						Level III:

					
					
						0.875%

					
					
						0%

					
					
						0.100%

				
	
					
						Level IV:

					
					
						1.000%

					
					
						0%

					
					
						0.125%

				
	
					
						Level V:

					
					
						1.125%

					
					
						0.125%

					
					
						0.150%

				

		
			﻿
		

		

		

		 

		

			 

		

		

			2

		

 

		

			 

		

		
		

		
			For purposes of, and notwithstanding, the foregoing,
		

		
			(i) (a) Pricing Level I and Ratings Level A are equivalent and correspond to each other, and they are the highest levels for purposes of the Applicable Rate, (b) Pricing Level II, Leverage Level 2 and Ratings Level B are equivalent and correspond to each other, and they are the second highest levels for purposes of the Applicable Rate, (c) Pricing Level III, Leverage Level 3 and Ratings Level C are equivalent and correspond to each other, and they are the third highest levels for purposes of the Applicable Rate, (d) Pricing Level IV, Leverage Level 4 and Ratings Level D are equivalent and correspond to each other, and they are the fourth highest levels for purposes of the Applicable Rate, and (e) Pricing Level V, Leverage Level 5 and Ratings Level E are equivalent and correspond to each other, and they are the lowest levels for purposes of the Applicable Rate;
		

		
			(ii) at any time of determination, the Pricing Level shall be determined by reference to the higher of the Leverage Level and the Ratings Level then in effect;
		

		
			(iii) if at any time the Borrower fails to deliver the applicable Financials on or before the date such statements or certificates are due, Pricing Level V shall be deemed applicable for the period commencing three (3) Business Days after such required date of delivery and ending on the date which is three (3) Business Days after such statements or certificates are actually delivered, after which the Pricing Level shall be determined in accordance with this definition;
		

		
			(iv) notwithstanding anything to the contrary set forth in this definition, Pricing Level II shall be deemed to be applicable until the Administrative Agent’s receipt of the applicable Financials for the Parent’s fiscal quarter ending on or about February 29, 2020 and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance with the terms of this definition;
		

		
			(v) at any time of determination, the “Leverage Level” shall be based upon the Leverage Ratio applicable at such time:
		

			
					
						Leverage Level

					
					
						Consolidated Leverage Ratio

				
	
					
						Level 2

					
					
						< 1.75 to 1.00

				
	
					
						Level 3

					
					
						> 1.75 to 1.00 but 
< 2.50 to 1.00

				
	
					
						Level 4

					
					
						> 2.50 to 1.00 but 
< 3.25 to 1.00

				
	
					
						Level 5

					
					
						> 3.25 to 1.00

				

		
			﻿
		

		
			Except as otherwise provided in the paragraph below, adjustments, if any, to the Leverage Level then in effect shall be effective three (3) Business Days after the Administrative Agent has received the applicable Financials (it being understood and agreed that each change in Leverage Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change); and
		

		 

		

			 

		

		

			3

		

 

		

			 

		

		
		

		
			(vi) at any time of determination, the “Ratings Level” shall be based upon the long-term debt ratings by Moody’s and S&P, respectively, applicable at such time to the Index Debt:
		

			
					
						﻿

					
					
						 

				
	
					
						Ratings Level

					
					
						Index Debt Ratings

					
						(Moody’s/S&P)

					
						 

				
	
					
						Level A

					
					
						A2/A or higher

				
	
					
						Level B

					
					
						A3/A-

				
	
					
						Level C

					
					
						Baa1/BBB+

				
	
					
						Level D

					
					
						Baa2/BBB

				
	
					
						Level E

					
					
						Baa3/BBB- or lower

				

		
			﻿
		

		
			For purposes of the foregoing, (i) if either Moody’s or S&P shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last sentence of this definition), then such rating agency shall be deemed to have established a Ratings Level in Level E; (ii) if the ratings established or deemed to have been established by Moody’s and S&P for the Index Debt shall fall within different Ratings Levels, the Ratings Level shall be based on the higher of the two ratings unless one of the two ratings is two or more Ratings Levels lower than the other, in which case the Ratings Level shall be determined by reference to the Ratings Level next below that of the higher of the two ratings; and (iii) if the ratings established or deemed to have been established by Moody’s and S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody’s or S&P), such change shall be effective as of the date on which it is first announced by the applicable rating agency, irrespective of when notice of such change shall have been furnished by the Borrower to the Administrative Agent and the Lenders pursuant to Section 5.01 or otherwise.  Each change in the Ratings Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change.  If the rating system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Ratings Level shall be determined by reference to the rating most recently in effect prior to such change or cessation.
		

		
			“Approved Electronic Platform” has the meaning assigned to such term in Section 8.03(a).
		

		
			“Approved Fund” has the meaning assigned to such term in Section 9.04(b).
		

		
			“Approved Institution” has the meaning set forth in the definition of “Competitor”.
		

		
			 “Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent.
		

		

		

		 

		

			 

		

		

			4

		

 

		

			 

		

		
		

		
			 “Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.
		

		
			“Available Commitment” means, at any time with respect to any Lender, the Commitment of such Lender then in effect minus the Credit Exposure of such Lender 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.
		

		
			“Banking Services” means each and any of the following bank services provided to the Parent or any Subsidiary by any Lender or any of its Affiliates:  (a) credit cards for commercial customers (including, without limitation, commercial credit cards and purchasing cards), (b) stored value cards, (c) merchant processing services and (d) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement, overdrafts and interstate depository network services).
		

		
			“Banking Services Agreement” means any agreement entered into by the Parent or any Subsidiary in connection with Banking Services.
		

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

		
			“Beneficial Ownership Certification” means a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.
		

		
			“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
		

		
			“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
		

		

		

		 

		

			 

		

		

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			“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
		

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

		
			“Borrower”  has the meaning assigned to such term in the introductory paragraph hereof.
		

		
			“Borrower Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and the Borrower Subsidiaries in an aggregate principal amount exceeding $7,500,000.  For purposes of determining Borrower Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Borrower Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Borrower Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
		

		
			“Borrower Parties” means, collectively, the Borrower and each Borrower Subsidiary.
		

		
			“Borrower Subsidiary” means any direct or indirect subsidiary of the Borrower.
		

		
			“Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect.
		

		
			“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03, which shall be substantially in the form attached hereto as Exhibit H-1 or any other form approved by the Administrative Agent.
		

		
			“Business Day”  means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that when used in connection with (a) a Eurocurrency Loan denominated in Dollars, the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollar deposits in the London interbank market, (b) any Borrowings or LC Disbursements that are the subject of a borrowing, drawing, payment, reimbursement or rate selection denominated in euro, the term “Business Day” shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payments in euro and (c) a Eurocurrency Loan or Letter of Credit denominated in a Foreign Currency other than euro, the term “Business Day” shall also exclude any day on which banks are not open for dealings in deposits in such Foreign Currency in the interbank market in the principal financial center of the country whose lawful currency is such Foreign Currency.
		

		
			“Canadian Dollars” means the lawful currency of Canada.
		

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

		
			“CDOR Interpolated Rate” means, at any time, with respect to Canadian Dollars, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the CDOR Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent 
		

		 

		

			 

		

		

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			manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the CDOR Screen Rate for the longest period (for which the CDOR Screen Rate is available for Canadian Dollars) that is shorter than the Impacted CDOR Rate Interest Period; and (b) the CDOR Screen Rate for the shortest period (for which the CDOR Screen Rate is available for Canadian Dollars) that exceeds the Impacted CDOR Rate Interest Period, in each case, at such time; provided that if any CDOR Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		
			“CDOR Rate”  means, with respect to any Eurocurrency CDOR Rate Borrowing denominated in Canadian Dollars for any Interest Period, the Canadian dollar offered rate which, in turn means on any day the CDOR Screen Rate, at or about 10:15 a.m. Toronto local time on the first day of the applicable Interest Period and, if such day is not a Business Day, then on the immediately preceding Business Day (as adjusted by the Administrative Agent after 10:15 a.m. Toronto local time to reflect any error in the posted rate of interest or in the posted average annual rate of interest); provided that (x) if the CDOR Screen Rate shall be less than zero, such rate shall be deemed to be zero and (y) if the CDOR Screen Rate is not available on the Reuters Screen CDOR Page on any particular day for any particular Interest Period (an “Impacted CDOR Rate Interest Period”), then the Canadian dollar offered rate component of such rate on that day shall be calculated as the CDOR Interpolated Rate as of such time on such day; or if such day is not a Business Day, then as so determined on the immediately preceding Business Day.
		

		
			“CDOR Screen Rate”  means, for any day and time, with respect to any Eurocurrency CDOR Rate Borrowing denominated in Canadian Dollars and for any applicable Interest Period,  the annual rate of interest determined with reference to the arithmetic average of the discount rate quotations of all institutions listed in respect of the relevant Interest Period for Canadian Dollar-denominated bankers’ acceptances displayed and identified as such on the “CDOR Page” (or any display substituted therefor) of Reuters Monitor Money Rates Service Reuters Screen, or, in the event such rate does not appear on such page or screen, on any successor or substitute page or screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time, as selected by the Administrative Agent in its reasonable discretion.
		

		
			“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 40% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons who were neither (i) nominated by the board of directors of the Parent nor (ii) appointed by directors so nominated; (c) the acquisition of direct or indirect Control of the Parent by any Person or group; (d) the occurrence of a change in control, or other similar provision, as defined in any agreement or instrument evidencing any Material Indebtedness (triggering a default or mandatory prepayment, which default or mandatory prepayment has not been waived in writing); (e) the Parent ceases to own, directly or indirectly, and Control 100% of the ordinary voting and economic power of the Borrower;  or (f) the Borrower ceases to own, directly or indirectly, and Control 100% of the ordinary voting and economic power of any Borrower Subsidiary that is a Subsidiary Guarantor.
		

		
			“Change in Law”  means the occurrence after the date of this Agreement or, with respect to any Lender, such later date on which such Lender becomes a party to this Agreement) of (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) compliance by any Lender or Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender’s or Issuing Bank’s holding company, if any) with any request, rule, guideline or directive (whether or not having the force of law) of any Governmental Authority 
		

		 

		

			 

		

		

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			made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith or in the implementation thereof and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, in each case, be deemed to be a “Change in Law,” regardless of the date enacted, adopted, issued or implemented.
		

		
			“Charges” has the meaning assigned to such term in Section 9.15.
		

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

		
			“Commitment”  means, with respect to each Lender, the amount set forth on Schedule 2.01 opposite such Lender’s name under the heading “Commitment”, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) contemplated hereby pursuant to which such Lender shall have assumed its Commitment, as applicable, and giving effect to (a) any reduction in such amount from time to time pursuant to Section 2.09, and(b) any reduction or increase in such amount from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04; provided that at no time shall the Credit Exposure of any Lender exceed its 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”  means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to Section 8.03(c), including through an Approved Electronic Platform.
		

		
			“Competitor” means any entity, other than an Approved Institution, in each case that is primarily and directly engaged in the business of providing outsourced payroll processing, employment tax remittance, employee pay remittance, 401K recordkeeping services, new hire reporting, employee time and attendance and scheduling solutions, and directly related products and services.  As used herein, “Approved Institution” means any (i) commercial bank, (ii) investment bank, (iii) commercial finance company, (iv) any depository financial institution and (v) Affiliate of, or investment or trust for, or owned and operated for the primary benefit of, each of the foregoing entities described in the foregoing clauses (i) through (iv).
		

		
			“Computation Date” is defined in Section 2.04.
		

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

		
			“Consolidated EBITDA” means, with reference to any period, Consolidated Net Income plus, without duplication and to the extent deducted from revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense for income taxes paid or accrued, (iii) depreciation, (iv) amortization, (v) extraordinary or non-recurring non-cash expenses or losses incurred other than in the ordinary course of business, (vi) non-cash expenses related to stock based compensation, (vii) fees, premiums, expenses and other transaction costs payable or otherwise borne by the Borrower, the Parent and its Subsidiaries in connection with the Transactions, (viii) any fees, costs and expenses incurred in 
		

		 

		

			 

		

		

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			connection with acquisitions, issuances or offerings of Equity Interests, recapitalizations, asset sales, dispositions, establishments of joint ventures, strategic alliances, mergers, consolidations or amalgamations, licenses, any incurrence, repayment, refinancing, amendment or modification of this Agreement or any other Loan Document or any proposed or actual waiver or consent with respect thereto, investments, option buyouts or the incurrence, repayment, refinancing, amendment or modification of Indebtedness (including any amortization or write-off of debt issuance or deferred financing costs, premiums and prepayment penalties) or similar arrangements during such period (including any costs of litigation or settlement of disputes in connection with any such transaction), in each case whether or not consummated, (ix) restructuring charges, accruals or reserves and business optimization expenses, including any restructuring costs and integration costs incurred in connection with the Transactions and any other acquisitions, start-up costs (including entry into new market/channels and new service offerings), costs related to the pre-opening, opening, closure, relocation, reconfiguration and/or consolidation of facilities and costs to relocate employees, integration and transaction costs, retention charges, severance, contract termination costs, recruiting and signing bonuses and expenses, future lease commitments, systems design and establishment costs, systems, facilities or equipment conversion costs, software development costs, project startup costs, modifications to, or losses on settlement of, pension and post-retirement employee benefit plans, expenses attributable to the implementation of costs savings initiatives, costs associated with tax projects/audits, expenses relating to any decommissioning or reconfiguration of fixed assets for alternative uses and costs consisting of professional, consulting or other fees relating to any of the foregoing,  provided that the aggregate amount added back pursuant to this clause (ix), together with the aggregate amounts added back pursuant to clause (x)(B) below, shall not exceed fifteen percent (15%) of Consolidated EBITDA for the applicable Reference Period (as calculated without giving effect to the add-back of any item pursuant to this clause (ix) or pursuant to clause (x)(B) below), (x) the amount of any cost savings, operating improvements, operating expense reductions, product margin, operating synergies and acquisition cost synergies (in each case, net of continued associated expenses, calculated on a pro forma basis as though such items had been realized during such period and that are reasonably identifiable and factually supportable in the good faith determination of the Parent and the Borrower and anticipated by the Parent and the Borrower in good faith to be realized within 18 months following such acquisition, net of the amount of any such cost savings, operating improvements, operating expense reductions, product margin, operating synergies or acquisition cost synergies otherwise included, or added back, pursuant to this definition) and resulting from actions taken and related to the Transactions, permitted asset sales, permitted mergers or other business combinations, permitted acquisitions, dispositions or divestitures, operating improvements, expense reductions, restructurings, cost saving initiatives and certain other similar initiatives and specified transactions (collectively, the “Pro Forma Adjustments”), which are either (A) in accordance with Article 11 of Regulation S-X or (B) if not in accordance with Article 11 of Regulation S-X, so long as the aggregate amount of the Pro Forma Adjustments added back under this clause (x)(B), together with the aggregate amounts added back pursuant to clause (ix) above, do not, for the applicable Reference Period, exceed fifteen percent (15%) of Consolidated EBITDA for such period (as calculated without giving effect to the add-back of any item pursuant to this clause (x)(B) or pursuant to clause (ix) above),  provided that (I) such Pro Forma Adjustments have been reasonably detailed by the Parent and the Borrower in the applicable compliance certificate required by Section 5.01(c) and (II) if any Pro Forma Adjustments included in any pro forma calculations based on the anticipation that such Pro Forma Adjustments will be achieved within such 18 month period shall at any time cease to be reasonably anticipated by the Parent and the Borrower to be so achieved, then on and after such time any pro forma calculations required to be made under this Agreement shall not reflect such Pro Forma Adjustments, minus, to the extent included in Consolidated Net Income, (1) [intentionally omitted] (2) income tax credits and refunds (to the extent not netted from tax expense), (3) any cash payments made during such period in respect of items described in clauses (v) or (vi) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were incurred and (4) extraordinary, unusual or non-recurring income or gains realized other than in the ordinary course of business, all calculated for the Parent and its Subsidiaries in 
		

		 

		

			 

		

		

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			accordance with GAAP on a consolidated basis.  For the purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each such period, a “Reference Period”), (i) if at any time during such Reference Period the Parent or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference Period, and (ii) if during such Reference Period the Parent or any Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after giving effect thereto on a pro forma basis as if such Material Acquisition occurred on the first day of such Reference Period.  As used in this definition, “Material Acquisition” means any acquisition of property or series of related acquisitions of property that (a) constitutes (i) assets comprising all or substantially all or any significant portion of a business or operating unit of a business, or (ii) all or substantially all of the common stock or other Equity Interests of a Person, and (b) involves the payment of consideration by the Parent and its Subsidiaries in excess of $100,000,000; and “Material Disposition” means any sale, transfer or disposition of property or series of related sales, transfers, or dispositions of property that yields gross proceeds to the Parent or any of its Subsidiaries in excess of $100,000,000.
		

		
			“Consolidated Interest Coverage Ratio” means, as of the end of any fiscal quarter of the Parent, the ratio of (a) Consolidated EBITDA for the Reference Period then ending to (b) Consolidated Interest Expense paid or required to be paid during such period.
		

		
			“Consolidated Interest Expense” means, with reference to any period, the interest expense (including without limitation interest expense under Capital Lease Obligations that is treated as interest in accordance with GAAP) of the Parent and its Subsidiaries calculated on a consolidated basis for such period with respect to all outstanding Indebtedness of the Parent and its Subsidiaries allocable to such period in accordance with GAAP (including, without limitation, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers acceptance financing and net costs under interest rate Swap Agreements to the extent such net costs are allocable to such period in accordance with GAAP).  In the event that the Parent or any Subsidiary shall have completed a Material Acquisition or a Material Disposition since the beginning of the relevant period, Consolidated Interest Expense shall be determined for such period on a pro forma basis as if such acquisition or disposition, and any related incurrence or repayment of Indebtedness, had occurred at the beginning of such period.
		

		
			“Consolidated Leverage Ratio” means, as of the end of any fiscal quarter of the Parent, the ratio of (a) Consolidated Total Indebtedness as of the end of such fiscal quarter, to (b) Consolidated EBITDA for the Reference Period then ending.
		

		
			“Consolidated Net Income” means, with reference to any period, the net income (or loss) of the Parent and its Subsidiaries calculated in accordance with GAAP on a consolidated basis (without duplication) for such period; provided that there shall be excluded any income (or loss) of any Person other than the Parent or a Subsidiary, but any such income so excluded may be included in such period or any later period to the extent of any cash dividends or distributions actually paid in the relevant period to the Parent or any wholly-owned Subsidiary of the Parent.
		

		
			“Consolidated Total Assets” means, as of the date of any determination thereof, total assets of the Parent and its Subsidiaries calculated in accordance with GAAP on a consolidated basis as of such date.
		

		
			“Consolidated Total Indebtedness” means, as of the date of any determination thereof, the sum, without duplication, of (a) the aggregate Indebtedness of the Parent and its Subsidiaries calculated on 
		

		 

		

			 

		

		

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			a consolidated basis as of such time in accordance with GAAP, (b) the aggregate amount of Indebtedness of the Parent and its Subsidiaries relating to all letters of credit outstanding which are drawn and not reimbursed and bankers acceptances and (c) Indebtedness of the type referred to in clauses (a) or (b) hereof of another Person guaranteed by the Parent or any of its Subsidiaries. 
		

		
			“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  The terms “Controlling” and “Controlled” have meanings correlative thereto.
		

		
			“Covered Entity” means any of the following:
		

		
			(i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
		

		
			(ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
		

		
			(iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
		

		
			“Covered Party” has the meaning assigned to it in Section 9.18.
		

		
			“Credit Event” means a Borrowing, the issuance, amendment, renewal or extension of a Letter of Credit, an LC Disbursement or any of the foregoing.
		

		
			“Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Loans and its LC Exposure at such time.
		

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

		
			“Daily LIBO Rate” means, with respect to any Eurocurrency Daily LIBO Rate Borrowing denominated in any LIBOR Quoted Currency, a fluctuating rate which can change on each Business Day. The rate will be adjusted on each Business Day and will be equal to the Daily LIBO Screen Rate at approximately 11:00 a.m., London time, on the Quotation Day for such LIBOR Quoted Currency for a one-month period; provided that if the Daily LIBO Screen Rate shall not be available at such time for such a one-month period (an “Impacted Daily LIBO Rate One-Month Period”) with respect to such LIBOR Quoted Currency then the Daily LIBO Rate shall be the Daily LIBO Interpolated Rate. 
		

		
			“Daily LIBO Interpolated Rate”  means, at any time, with respect to any LIBOR Quoted Currency, for any one-month period, the rate per annum (rounded to the same number of decimal places as the Daily LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the Daily LIBO Screen Rate for the longest period (for which the Daily LIBO Screen Rate is available for the applicable LIBOR Quoted Currency) that is shorter than the Impacted Daily LIBO Rate One-Month Period; and (b) the Daily LIBO Screen Rate for the shortest period (for which the Daily LIBO Screen Rate is available for the applicable LIBOR Quoted Currency) that exceeds the Impacted Daily LIBO Rate One-Month Period, in each case, at such time; provided that if any Daily LIBO Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		

		

		 

		

			 

		

		

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			“Daily LIBO Screen Rate” means, for any day and time, with respect to any Eurocurrency Daily LIBO Rate Borrowing denominated in any LIBOR Quoted Currency, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for such LIBOR Quoted Currency for a period equal in length to a one-month period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); provided that if the Daily LIBO Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		
			 “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
		

		
			“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
		

		
			“Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower or any Credit Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a Loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three (3) Business Days after request by a Credit Party, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations as of the date of certification) to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent, or (d) has become the subject of  (i) a Bankruptcy Event or (ii) a Bail-In Action.
		

		
			“Disqualified Competitor” means (a) Persons that are reasonably determined by the Borrower to be Competitors and which are specifically identified by the Borrower to the Administrative Agent in writing and delivered in accordance with Section 9.01 prior to the Effective Date, (b) any other Person that is reasonably determined by the Borrower to be a Competitor of the Borrower or its Subsidiaries and which is specifically identified in a written supplement to the list of “Disqualified Competitors”, which supplement shall become effective three (3) Business Days after delivery thereof to the Administrative Agent and the Lenders in accordance with Section 9.01 and (c) in the case of the foregoing clauses (a) and (b), any of such entities’ Affiliates to the extent such Affiliates (x) are clearly identifiable as Affiliates  of such Persons based solely on the similarity of such Affiliates’ and such Persons’ names and (y) are not bona fide debt investment funds.  It is understood and agreed that (i) any supplement to the list of Persons that are Disqualified Competitors contemplated by the foregoing clause (b) shall not apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans (but solely with respect to such Loans), (ii) the Administrative Agent shall have no responsibility or liability to determine or monitor whether any Lender or potential Lender is a Disqualified Competitor, (iii) the 
		

		 

		

			 

		

		

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			Borrower’s failure to deliver such list (or supplement thereto) in accordance with Section 9.01 shall render such list (or supplement) not received and not effective and (iv) “Disqualified Competitor” shall exclude any Person that the Borrower has designated as no longer being a “Disqualified Competitor” by written notice delivered to the Administrative Agent from time to time in accordance with Section 9.01.
		

		
			“Dollar Amount”  of any amount of any currency means, at the time of determination thereof, (a) if such amount is expressed in Dollars, such amount, (b) if such amount is expressed in a Foreign Currency, the equivalent of such amount in Dollars determined by using the rate of exchange for the purchase of Dollars with such Foreign Currency last provided (either by publication or otherwise provided to the Administrative Agent) by the applicable Reuters source on the Business Day (New York City time) immediately preceding the date of determination or if such service ceases to be available or ceases to provide a rate of exchange for the purchase of Dollars with such Foreign Currency, as provided by such other publicly available information service which provides that rate of exchange at such time in place of Reuters chosen by the Administrative Agent in its sole discretion (or if such service ceases to be available or ceases to provide such rate of exchange,  the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion)  and (c) if such amount is denominated in any other currency, the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion.
		

		
			“Dollars” or “$” refers to lawful money of the United States of America.
		

		
			“Domestic Subsidiary” means a subsidiary of the Parent organized under the laws of a jurisdiction located in the United States of America.
		

		
			“DQ List” has the meaning assigned to such term in Section 9.04(e)(iv).
		

		
			“ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.
		

		
			“EEA Financial Institution” means (a) any institution 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 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” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
		

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

		
			“Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).
		

		
			“Electronic Signature”  means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.
		

		 

		

			 

		

		

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			 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.
		

		
			“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Parent or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
		

		
			“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing.
		

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

		
			“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Parent or the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.
		

		
			“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Parent, the Borrower or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Parent, the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Parent, the Borrower or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal of the Parent, the Borrower or any ERISA Affiliate from any Plan or Multiemployer Plan; or (g) the receipt by the Parent, the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Parent, the Borrower or any ERISA Affiliate of any notice, concerning the imposition upon the Parent, the Borrower or any ERISA Affiliate of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.
		

		
			“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.
		

		
			“euro” and/or “€” means the single currency of the Participating Member States.
		

		

		

		 

		

			 

		

		

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			“Eurocurrency Borrowing” means a Eurocurrency LIBO Rate Borrowing or a Eurocurrency Daily LIBO Rate Borrowing, as the case may be.
		

		
			 “Eurocurrency Daily LIBO Rate”, when used in reference to a currency means an Agreed Currency (other than Canadian Dollars) and when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted Daily LIBO Rate.
		

		
			“Eurocurrency LIBO Rate”, when used in reference to a currency means an Agreed Currency and when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.
		

		
			“Eurocurrency Loan” means a Eurocurrency LIBO Rate Loan or a Eurocurrency Daily LIBO Rate Loan, as the case may be.
		

		
			“Eurocurrency Payment Office” of the Administrative Agent shall mean, for each Foreign Currency, the office, branch, affiliate or correspondent bank of the Administrative Agent for such currency as specified from time to time by the Administrative Agent to the Borrower and each Lender.
		

		
			“Event of Default” has the meaning assigned to such term in Section 7.01.
		

		
			“Excluded Subsidiaries”  means each of (a) Paychex Securities Corporation, a New York corporation, (b) Sure Payroll Insurance Agency, Inc., a Delaware corporation, (c) Paychex Insurance Agency, Inc., a Delaware corporation, (d) ePlan Advisers LLC, a Colorado limited liability company, (e) Paychex Insurance Concepts, Inc., a New York corporation, (f) PXC Inc., a New York corporation and (g) each Borrower Party.
		

		
			“Excluded Swap Obligation” means, with respect to any Loan Party, any Specified Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Specified Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (a) by virtue of such Loan Party’s failure for any reason to constitute an ECP at the time the Guarantee of such Loan Party or the grant of such security interest becomes or would become effective with respect to such Specified Swap Obligation or (b) in the case of a Specified Swap Obligation subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision thereto), because such Loan Party is a “financial entity,” as defined in Section 2(h)(7)(C)(i) of the Commodity Exchange Act (or any successor provision thereto), at the time the Guarantee of such Loan Party becomes or would become effective with respect to such related Specified Swap Obligation.  If a Specified Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Specified Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.
		

		
			“Excluded Taxes”  means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect 
		

		 

		

			 

		

		

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			to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f) and (d) any withholding Taxes imposed under FATCA.
		

		
			“Existing Credit Agreement” means the Credit Agreement, dated as of March 17, 2016 among the Borrower, Parent, the Lenders (as defined therein) from time to time party thereto and the Administrative Agent (as defined therein), as amended by Amendment No. 1 to Credit Agreement dated as of May 2,  2017, Amendment No. 2 to Credit Agreement dated as of August 17, 2017, and Amendment No. 3 to Credit Agreement dated as of November 21, 2018.
		

		
			 “FATCA”  means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
		

		
			“FCPA” means the United States Foreign Corrupt Practices Act of 1977, as amended.
		

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

		
			“Fee Letter” means the Fee Letter, dated as of the date hereof, by and between the Borrower and PNC Bank, National Association, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.
		

		
			“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Parent or the Borrower, as the context may require.
		

		
			“Financials” means the annual or quarterly financial statements, and accompanying certificates and other documents, of the Parent and its Subsidiaries required to be delivered pursuant to Section 5.01(a) or 5.01(b).
		

		
			“Foreign Currencies” means Agreed Currencies other than Dollars.
		

		
			“Foreign Currency Additional Sublimit” means: 
		

		
			(a)   in the case of Loans denominated in Canadian Dollars and/or Letters of Credit denominated in Canadian Dollars:
		

		

		

		 

		

			 

		

		

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			(i) the sum of (A) the Dollar Amount of the aggregate outstanding principal amount of all Loans denominated in Canadian Dollars plus (B) the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in Canadian Dollars shall not exceed $35,000,000 at any time outstanding; provided, however, that the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in Canadian Dollars shall not exceed $30,000,000 at any time outstanding;
		

		
			(b)    in the case of Loans denominated in euro and/or Letters of Credit denominated in euro:
		

		
			(i) the sum of (A) the Dollar Amount of the aggregate outstanding principal amount of all Loans denominated in euro plus (B) the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in euro shall not exceed $35,000,000 at any time outstanding; provided, however, that the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in euro shall not exceed $10,000,000 at any time outstanding; 
		

		
			(c)      in the case of Loans denominated in Pounds Sterling and Letters of Credit denominated in Pounds Sterling:
		

		
			(i)the sum of (A) the Dollar Amount of the aggregate outstanding principal amount of all Loans denominated in Pounds Sterling plus (B) the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in Pounds Sterling shall not exceed $35,000,000 at any time outstanding; provided, however, that  the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in Pounds Sterling shall not exceed $30,000,000 at any time outstanding; and 
		

		
			(d)     in the case of Loans denominated in any other Foreign Currency and/or Letters of Credit denominated in such other Foreign Currency:
		

		
			(i)   the sum of (x) the Dollar Amount of the aggregate outstanding principal amount of all Loans denominated in such Foreign Currency plus (y) the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in such Foreign Currency shall not exceed an amount at any time outstanding as specified in a writing by the Administrative Agent to the Borrower and which amount so specified has been agreed to by the Lenders; provided, however, that the aggregate amount of Foreign Currency LC Exposure in respect of Foreign Currency Letters of Credit denominated in such Foreign Currency shall not exceed an amount at any time outstanding as specified in a writing by the Administrative Agent to the Borrower and which amount so specified has been agreed to by the Lenders.
		

		
			﻿
		

		
			“Foreign Currency Exposure” has the meaning assigned to such term in Section 2.11(b).
		

		
			“Foreign Currency LC Exposure” means, at any time, the sum of (a) the Dollar Amount of the aggregate undrawn and unexpired amount of all outstanding Foreign Currency Letters of Credit at such time plus (b) the aggregate principal Dollar Amount of all LC Disbursements in respect of Foreign Currency Letters of Credit that have not yet been reimbursed at such time.
		

		
			“Foreign Currency Letter of Credit” means a Letter of Credit denominated in a Foreign Currency.
		

		 

		

			 

		

		

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			“Foreign Currency Letter of Credit Sublimit” means, with respect to the Foreign Currency LC Exposure of Letters of Credit denominated in the same Foreign Currency, the amount in respect thereof specified in the respective proviso in clause  (a)(i), (b)(i), (c)(i)  or (d)(i)  of the definition of Foreign Currency Additional Sublimit.
		

		
			“Foreign Currency Sublimit” means $70,000,000.
		

		
			“Foreign Lender” means a Lender that is not a U.S. Person.
		

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

		
			“Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).
		

		
			“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.
		

		
			“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.
		

		
			“IBA” has the meaning assigned to such term in Section 1.06.
		

		
			“Impacted CDOR Rate Interest Period” has the meaning assigned to such term in the definition of “CDOR Rate”.
		

		
			 “Impacted Daily LIBO Rate One-Month Period” has the meaning assigned to such term in the definition of “Daily LIBO Rate”.
		

		
			“Impacted Interest Period”  means an Impacted LIBO Rate Interest Period, Impacted Daily LIBO Rate One-Month Period, any Impacted CDOR Rate Interest Period, as applicable.
		

		
			“Impacted LIBO Rate Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.
		

		 

		

			 

		

		

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			“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances and (k) all obligations of such Person under Sale and Leaseback Transactions.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.
		

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

		
			“Indemnitee” has the meaning assigned to such term in Section 9.03(b).
		

		
			“Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the Parent that is not guaranteed by any other Person or subject to any other credit enhancement.
		

		
			“Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).
		

		
			“Information” has the meaning assigned to such term in Section 9.12.
		

		
			“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.08, which shall be substantially in the form attached hereto as Exhibit H-2 or any other form approved by the Administrative Agent.
		

		
			“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December and the Maturity Date, (b) with respect to any Eurocurrency LIBO Rate Loan, the last day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency LIBO Rate Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and the Maturity Date and (c) with respect to any Eurocurrency Daily LIBO Rate Loan, the last day of each calendar month and on the Maturity Date.
		

		
			“Interest Period” means with respect to any Eurocurrency LIBO Rate Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is seven days or one, two, three or six months thereafter (or such other period as is requested by the Borrower and approved by each of the Lenders), as the Borrower may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and 
		

		 

		

			 

		

		

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			(ii) any Interest Period pertaining to a Eurocurrency LIBO Rate Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
		

		
			“Interpolated Rate” means the CDOR Interpolated Rate, the LIBO Interpolated Rate,  and the Daily LIBO Interpolated Rate, as applicable.
		

		
			“IRS” means the United States Internal Revenue Service.
		

		
			“Issuing Bank”  means each of PNC Bank, National Association and each other Lender designated by the Borrower as an “Issuing Bank” hereunder that has agreed to such designation (and is reasonably acceptable to the Administrative Agent), each in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i).  Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.    Each reference herein to the “Issuing Bank” in connection with a Letter of Credit or other matter shall be deemed to be a reference to the relevant Issuing Bank with respect thereto, and, further, references herein to “the Issuing Bank” shall be deemed to refer to each of the Issuing Banks or the relevant Issuing Bank, as the context requires.
		

		
			“LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).
		

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

		
			“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn Dollar Amount of all outstanding Letters of Credit at such time plus (b) the aggregate Dollar Amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.    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 Article 29(a) of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time) or Rule 3.13 or Rule 3.14 of the International Standby Practices, International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time) or similar terms of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be “outstanding” and “undrawn” in the amount so remaining available to be paid, and the obligations of the Borrower and each Lender shall remain in full force and effect until the Issuing Bank and the Lenders shall have no further obligations to make any payments or disbursements under any circumstances with respect to any Letter of Credit.
		

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

		
			“Lenders” means the Persons listed on Schedule 2.01A and any other Person that shall have become a Lender hereunder pursuant to an Assignment and Assumption or otherwise, other than any such 
		

		

		

		 

		

			 

		

		

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			Person that ceases to be a party hereto pursuant to an Assignment and Assumption or otherwise.  Unless the context otherwise requires, the term “Lenders” includes the Issuing Banks.
		

		
			“Letter of Credit” means any letter of credit issued pursuant to this Agreement.
		

		
			“Letter of Credit Sublimit” means $50,000,000.
		

		
			“Letter of Credit Agreement” has the meaning assigned to such term in Section 2.06(b).
		

		
			“Letter of Credit Commitment” means, with respect to each Issuing Bank, the commitment of such Issuing Bank to issue Letters of Credit hereunder. The initial amount of each Issuing Bank’s Letter of Credit Commitment is set forth on Schedule 2.01B, or if an Issuing Bank has entered into an Assignment and Assumption, the amount set forth for such Issuing Bank as its Letter of Credit Commitment in the Register maintained by the Administrative Agent.
		

		
			“LIBO Interpolated Rate”  means, at any time, with respect to any LIBOR Quoted Currency, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available for the applicable LIBOR Quoted Currency) that is shorter than the Impacted LIBO Rate Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available for the applicable LIBOR Quoted Currency) that exceeds the Impacted LIBO Rate Interest Period, in each case, at such time; provided that if any LIBO Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		
			“LIBO Rate”  means, with respect to any Eurocurrency LIBO Rate Borrowing denominated in any LIBOR Quoted Currency and for any Interest Period, the LIBO Screen Rate at approximately 11:00 a.m., London time, on the Quotation Day for such LIBOR Quoted Currency;  provided that if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted LIBO Rate Interest Period”) with respect to such LIBOR Quoted Currency then the LIBO Rate shall be the LIBO Interpolated Rate. 
		

		
			“LIBO Screen Rate” means, for any day and time,  with respect to any Eurocurrency LIBO Rate Borrowing denominated in any LIBOR Quoted Currency and for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for such LIBOR Quoted Currency for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. 
		

		
			“LIBOR Quoted Currency” means (i) Dollars, (ii) euro and (iii) Pounds Sterling.
		

		
			“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in 
		

		 

		

			 

		

		

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			the case of securities, any purchase option, call or similar right of a third party with respect to such securities.
		

		
			“Loan Documents” means this Agreement (including schedules and exhibits hereto), any promissory notes issued pursuant to Section 2.10(e), any Letter of Credit applications, any Letter of Credit Agreement,  the Subsidiary Guaranty, and all other agreements, instruments, documents and certificates identified in Section 4.01 executed and delivered to, or in favor of, the Administrative Agent or any Lenders and including all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements and all other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby, and including, except for purposes of Section 9.02(b), the Fee Letter  Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.
		

		
			“Loan Parties” means, collectively, the Parent, the Borrower and each Subsidiary Guarantor.
		

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

		
			“Local Time” means (i) New York City time in the case of a Loan, Borrowing or LC Disbursement denominated in Dollars and (ii) local time in the case of a Loan, Borrowing or LC Disbursement denominated in a Foreign Currency (it being understood that such local time shall mean London, England time unless otherwise notified by the Administrative Agent).
		

		
			“Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable.
		

		
			“Material Acquisition” has the meaning assigned to such term in the definition of “Consolidated EBITDA”.
		

		
			“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition (financial or otherwise) of the Parent, the Borrower and their subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Agreement or (c) the validity or enforceability of this Agreement or any and all other Loan Documents or the rights or remedies of the Administrative Agent and the Lenders thereunder.
		

		
			“Material Disposition” has the meaning assigned to such term in the definition of “Consolidated EBITDA”.
		

		
			“Material Domestic Subsidiary” means each Domestic Subsidiary of the Parent (i) which, as of the most recent fiscal quarter of the Parent, for the period of four consecutive fiscal quarters then ended, for which financial statements have been delivered pursuant to Section 5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most recent financial statements referred to in Section 3.04(a)), contributed greater than five percent (5%) of Consolidated EBITDA for such period or (ii) which contributed greater than five percent (5%) of Consolidated Total Assets as of such date; provided that, if at any time the aggregate amount of Consolidated EBITDA or Consolidated Total Assets attributable to all Domestic Subsidiaries that are not Material Domestic Subsidiaries exceeds ten percent (10%) of Consolidated EBITDA for any such period 
		

		 

		

			 

		

		

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			or ten percent (10%) of Consolidated Total Assets as of the end of any such fiscal quarter, the Parent (or, in the event the Parent has failed to do so within ten (10) days, the Administrative Agent) shall designate sufficient Domestic Subsidiaries as “Material Domestic Subsidiaries” to eliminate such excess, and such designated Subsidiaries shall for all purposes of this Agreement constitute Material Domestic Subsidiaries.
		

		
			“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Parent and its Subsidiaries in an aggregate principal amount exceeding $100,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Parent or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Parent or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
		

		
			“Maturity Date” means February 6,  2023;  provided,  however, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.
		

		
			“Maximum Rate” has the meaning assigned to such term in Section 9.15.
		

		
			“Moody’s” means Moody’s Investors Service, Inc.
		

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

		
			“Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).
		

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

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

		
			“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), obligations and liabilities of any of the Parent and its Subsidiaries to any of the Lenders, the Administrative Agent, any Issuing Bank or any indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, arising or incurred under this Agreement or any of the other Loan Documents or to the Lenders or any of their Affiliates under any Swap Agreement or any Banking Services Agreement or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof; provided that the definition of “Obligations” shall not create or include any guarantee by any Loan Party of (or grant of security interest by any Loan Party to 
		

		

		

		 

		

			 

		

		

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			support, as applicable) any Excluded Swap Obligations of such Loan Party for purposes of determining any obligations of any Loan Party.
		

		
			“OFAC”  means the Office of Foreign Assets Control of the U.S. Department of the Treasury.
		

		
			“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or Loan Document).
		

		
			“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.19).
		

		
			“Overnight Bank Funding Rate”  means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.
		

		
			“Overnight Foreign Currency Rate”  means, for any amount payable in a Foreign Currency, the rate of interest per annum as determined by the Administrative Agent at which overnight or weekend deposits in the relevant currency (or if such amount due remains unpaid for more than three (3) Business Days, then for such other period of time as the Administrative Agent may elect) for delivery in immediately available and freely transferable funds would be offered by the Administrative Agent to major banks in the interbank market upon request of such major banks for the relevant currency as determined above and in an amount comparable to the unpaid principal amount of the related Credit Event, plus any taxes, levies, imposts, duties, deductions, charges or withholdings imposed upon, or charged to, the Administrative Agent by any relevant correspondent bank in respect of such amount in such relevant currency.
		

		
			“Parent” means Paychex, Inc., a Delaware corporation.
		

		
			“Participant” has the meaning assigned to such term in Section 9.04(c).
		

		
			“Participant Register” has the meaning assigned to such term in Section 9.04(c).
		

		
			“Participating Member State” means 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” means the USA PATRIOT Act of 2001.
		

		
			“Paychex Holdings” means Paychex Holdings, LLC, a Delaware limited liability company.
		

		
			“PONY” means Paychex of New York LLC, a Delaware limited liability company. 
		

		 

		

			 

		

		

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

		
			“Permitted Encumbrances” means:
		

		
			(a) Liens imposed by law for Taxes, assessments or other governmental charges that are not yet due or are being contested in compliance with Section 5.04;
		

		
			(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’, workmen’s, suppliers’ and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than ninety (90) days or are being contested in compliance with Section 5.04;
		

		
			(c) Liens, pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations or employment laws or to secure other public, statutory or regulatory obligations (including to support letters of credit or bank guarantees);
		

		
			(d) Liens or deposits to secure the performance of bids, trade contracts, governmental contracts, tenders, statutory bonds, leases, statutory obligations, surety, stay, appeal and replevin bonds, performance bonds, indemnity bonds and other obligations of a like nature, in each case in the ordinary course of business;
		

		
			(e) Liens in respect of judgments, decrees, attachments or awards that do not constitute an Event of Default under Section 7.01(k);  provided,  however, that, in the case of the Borrower Parties only, solely for purposes of this clause (e), notwithstanding the Dollar amount stated in such Section 7.01(k), such Dollar amount shall be deemed to be $7,500,000;
		

		
			(f) easements, restrictions (including zoning restrictions), rights-of-way, covenants, licenses, encroachments, protrusions and similar encumbrances and minor title defects affecting real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially interfere with the ordinary conduct of business of the Parent or any Subsidiary; 
		

		
			(g) any interest or title of a lessor, sublessor, licensor or sublicensor under any lease, license or sublicense entered into by the Parent or any Subsidiary as a part of its business and covering only the assets so leased; and 
		

		
			(h)  performance and return-of-money bonds, or in connection with the payment of the exercise price or withholding taxes in respect of the exercise, payment or vesting of stock appreciation rights, stock options, restricted stock, restricted stock units, performance share units or other stock-based awards, and other similar obligations;
		

		
			provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.
		

		
			“Permitted Financing Documents” means, collectively, the following:
		

		
			(a)  (i) the 2019 Credit Agreement, dated as of July 31, 2019, among PONY, as borrower, the Parent, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent, PNC Bank, National Association, as syndication agent, and Bank of America, N.A. and Wells Fargo 
		

		 

		

			 

		

		

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			Bank, National Association,, as co-documentation agents, and (ii) the other related loan documents now or hereafter executed and delivered by PONY, Parent, any other Subsidiary of Parent, and/or any subsidiary of PONY in connection with the foregoing in clause (a)(i), in each case with respect to clauses (a)(i) and (a)(ii) above, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time; and
		

		
			(b)  (i) the 2017 Credit Agreement, dated as of August 17, 2017, among PONY, as borrower, the Parent, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and PNC Bank, National Association and Wells Fargo Bank, National Association, as co-documentation agents, and (ii) the other related loan documents now or hereafter executed and delivered by PONY, Parent, any other Subsidiary of Parent, and/or any subsidiary of PONY in connection with the foregoing in clause (b)(i), in each case with respect to clauses (b)(i) and (b)(ii) above, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time.
		

		
			“Permitted Note Purchase and Guarantee Documents” means (i) the Note Purchase and Guarantee Agreement, dated as of January 9, 2019, among PONY, Parent and various purchasers who are parties thereto, pursuant to which, PONY issued certain Series A Notes due March 13, 2026 in the aggregate principal amount of $400,000,000 and certain  Series B Notes due March 13, 2029 in the aggregate principal amount of $400,000,000 and (ii) the other related financing documents now or hereafter executed and delivered by PONY, Parent, any other Subsidiary of Parent, and/or any subsidiary of PONY in connection with the foregoing in clause (i), in each case with respect to clauses (i) and (ii) above, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time.
		

		
			“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
		

		
			“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Parent, the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
		

		
			“Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.
		

		
			“Pounds Sterling” or “£” means the lawful currency of the United Kingdom.
		

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

		
			  “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including, without limitation, Equity Interests.
		

		
			  “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
		

		
			“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
		

		 

		

			 

		

		

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			“QFC Credit Support” has the meaning assigned to it in Section 9.18.
		

		
			“Qualified ECP Guarantor” means, in respect of any Specified Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes or would become effective with respect to such Specified Swap Obligation or such other Person as constitutes an ECP and can cause another Person to qualify as an ECP at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
		

		
			“Quotation Day”  means, (a) with respect to any Eurocurrency LIBO Rate Borrowing denominated in a LIBOR Quoted Currency for any Interest Period, (i) if the currency is Pounds Sterling, the first day of such Interest Period, (ii) if the currency is euro, the day that is two (2) TARGET2 Days before the first day of such Interest Period, and (iii) for any other currency, two (2) Business Days prior to the commencement of such Interest Period (unless, in each case, market practice differs in the relevant market where the LIBO Rate for such currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day will be the last of those days)); and (b) with respect to any Eurocurrency Daily LIBO Rate Borrowing, the Business Day in question.
		

		
			“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, as applicable.
		

		
			“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) supplied to the Administrative Agent at its request by the Reference Banks (as the case may be) as of the applicable time on the Quotation Day for Loans in the applicable currency and the applicable Interest Period (or in the case of Eurocurrency Daily LIBO Rate Borrowings, applicable one-month period) as the rate at which the relevant Reference Bank could borrow funds in the London (or other applicable) interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers in reasonable market size in that currency and for that period.
		

		
			“Reference Banks”  means such banks as may be appointed by the Administrative Agent in consultation with the Borrower.  No Lender shall be obligated to be a Reference Bank without its consent.
		

		
			“Reference Period” has the meaning assigned to such term in the definition of “Consolidated EBITDA”.
		

		
			“Register” has the meaning assigned to such term in Section 9.04(b).
		

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

		
			“Regulation S-X” means Regulation S-X under the Securities Exchange Act of 1934, as amended.
		

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

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

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

		

		

		 

		

			 

		

		

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

		
			“Required Lenders”  means, subject to Section 2.22, (a) at any time prior to the earlier of the Loans becoming due and payable pursuant to Section 7.02 or the Commitments terminating or expiring, Lenders having Credit Exposures and Unfunded Commitments representing more than 50% of the sum of the Total Credit Exposure and Unfunded Commitments at such time, provided that, solely for purposes of declaring the Loans to be due and payable pursuant to Section 7.02, the Unfunded Commitment of each Lender shall be deemed to be zero; and (b) for all purposes after the Loans become due and payable pursuant to Section 7.02 or the Commitments expire or terminate, Lenders having Credit Exposures representing more than 50% of the sum of the Total Credit Exposure at such time;  provided that, in the case of clauses (a) and (b) above, for the purpose of determining the Required Lenders needed for any waiver, amendment, modification or consent of or under this Agreement or any other Loan Document, any Lender that is the Borrower or an Affiliate of the Borrower shall be disregarded.
		

		
			“Reuters” means Thomson Reuters Corp., Refinitiv or any successor thereto.
		

		
			“S&P” means Standard & Poor’s Rating Services, a Standard & Poor’s Financial Services LLC business.
		

		
			“Sale and Leaseback Transaction” means any sale or other transfer of any property or asset by any Person with the intent to lease such property or asset as lessee.
		

		
			“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria).
		

		
			“Sanctioned Person”  means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.
		

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

		
			“Screen Rate” means the CDOR Screen Rate and the LIBO Screen Rate.
		

		
			“SEC” means the United States Securities and Exchange Commission.
		

		
			“Securities Act” means the United States Securities Act of 1933.
		

		

		

		 

		

			 

		

		

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			“Specified Swap Obligation” means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.
		

		
			“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve, liquid asset, fees or similar requirements (including any marginal, special, emergency or supplemental reserves or other requirements) established by any central bank, monetary authority, the Board, the Financial Conduct Authority, the Prudential Regulation Authority, the European Central Bank or other Governmental Authority for any category of deposits or liabilities customarily used to fund loans in the applicable currency, expressed in the case of each such requirement as a decimal.  Such reserve, liquid asset, fees or similar requirements shall, in the case of Dollar denominated Loans, include those imposed pursuant to Regulation D.  Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset, fee or similar requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under any applicable law, rule or regulation, including Regulation D.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve, liquid asset or similar requirement.
		

		
			“Subordinated Indebtedness” means any Indebtedness of the Parent or any Subsidiary the payment of which is subordinated to payment of the obligations under the Loan Documents.
		

		
			“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent and/or one or more subsidiaries of the parent.
		

		
			“Subsidiary” means any subsidiary of the Parent.
		

		
			“Subsidiary Guarantor” means, collectively, (a) each Material Domestic Subsidiary (other than the Excluded Subsidiaries) that is a party to the Subsidiary Guaranty and  (b) each Borrower Subsidiary that is a party to the Subsidiary Guaranty.    The Subsidiary Guarantors on the Effective Date are identified as such in Schedule 3.01 hereto.
		

		
			“Subsidiary Guaranty” means that certain Guaranty dated as of the Effective Date in the form of Exhibit F (including any and all supplements thereto) and executed by each Subsidiary Guarantor, as amended, restated, supplemented or otherwise modified from time to time.
		

		
			“Supported QFC” has the meaning assigned to it in Section 9.18.
		

		
			“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on 
		

		

		

		 

		

			 

		

		

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			account of services provided by current or former directors, officers, employees or consultants of the Parent or the Subsidiaries shall be a Swap Agreement.
		

		
			“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) payment system (or, if such payment system ceases to be operative, such other payment system (if any) reasonably determined by the Administrative Agent to be a suitable replacement) for the settlement of payments in euro.
		

		
			“TARGET2 Day” means a day that TARGET2 is open for the settlement of payments in euro.
		

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

		
			“Total Credit Exposure”  means, at any time, the sum of (a) the outstanding principal amount of the Loans at such time and (b) the total LC Exposure at such time.
		

		
			“Trade Date” has the meaning assigned to such term in Section 9.04(e)(i).
		

		
			“Transactions” means the execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.
		

		
			“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.
		

		
			“UK Bribery Act” means the United Kingdom Bribery Act 2010, as amended.
		

		
			“Unfunded Commitment”  means, with respect to each Lender, the Commitment of such Lender less its Credit Exposure.
		

		
			“United States” or “U.S.” mean the United States of America.
		

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

		
			“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(B)(3).
		

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

		
			“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.
		

		
			
		

		 

		

			 

		

		

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		SECTION 1.02.  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a “Eurocurrency Loan”).  Borrowings also may be classified and referred to by Type (e.g., a “Eurocurrency Borrowing”).
		

		
			SECTION 1.03.  Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental Authorities.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any definition of or reference to any law, statute, rule or regulation shall, unless otherwise specified, be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
		

		
			SECTION 1.04.  Accounting Terms; GAAP; Pro Forma Calculations.  (a) Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if 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 date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision  amended in accordance herewith.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Parent or any Subsidiary at “fair value”, as defined therein and (ii) without giving effect to any treatment of Indebtedness under Accounting Standards Codification 470-20 or 2015-03 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.    
		

		

		

		 

		

			 

		

		

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			(b)  All pro forma computations required to be made hereunder giving effect to any acquisition or disposition,  or issuance, incurrence or assumption of Indebtedness, or other transaction shall in each case be calculated giving pro forma effect thereto (and, in the case of any pro forma computation made hereunder to determine whether such acquisition or disposition, or issuance, incurrence or assumption of Indebtedness, or other transaction is permitted to be consummated hereunder, to any other such transaction consummated since the first day of the period covered by any component of such pro forma computation and on or prior to the date of such computation) as if such transaction had occurred on the first day of the period of four consecutive fiscal quarters ending with the most recent fiscal quarter for which financial statements shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial statements, ending with the last fiscal quarter included in the financial statements referred to in Section 3.04(a)), and, to the extent applicable, to the historical earnings and cash flows associated with the assets acquired or disposed of (but without giving effect to any synergies or cost savings) and any related incurrence or reduction of Indebtedness, all in accordance with Article 11 of Regulation S-X under the Securities Act. 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 any Swap Agreement applicable to such Indebtedness).
		

		
			SECTION 1.05.  Status of Obligations.  In the event that the Borrower or any other Loan Party shall at any time issue or have outstanding any Subordinated Indebtedness, the Borrower shall take or cause such other Loan Party to take all such actions as shall be necessary to cause the Obligations to constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without limiting the foregoing, the Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words of similar import under and in respect of any indenture or other agreement or instrument under which such Subordinated Indebtedness is outstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.
		

		
			SECTION 1.06.  Interest Rates; LIBOR Notification.  The interest rate on Eurocurrency Loans denominated in LIBOR Quoted Currencies is determined by reference to the LIBO Rate or Daily LIBO Rate, as applicable, for the applicable LIBOR Quoted Currency, which is derived from the London interbank offered rate.  The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurocurrency Loans.  In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate.  In the event that the London interbank offered rate is no longer available or in certain other circumstances as set forth in Section 2.14(c) of this Agreement, such Section 2.14(c) provides a mechanism for determining an alternative rate of interest.  The Administrative Agent will notify the Borrower, pursuant to Section 2.14, in advance of any change to the reference rate upon which the interest rate on Eurocurrency Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, 
		

		 

		

			 

		

		

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			submission or any other matter related to the London interbank offered rate or other rates in the definition of “LIBO Rate” or “Daily LIBO Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to Section 2.14(c), will be similar to, or produce the same value or economic equivalence of, the LIBO Rate or the Daily LIBO Rate, as the case may be, or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.
		

		
			SECTION 1.07.  Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person; and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.
		

		
			Article II
The Credits
		

		
			SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth herein, each Lender (severally and not jointly) agrees to make Loans to the Borrower in Agreed Currencies from time to time during the Availability Period in an aggregate principal amount that will not result in, subject to Sections 2.04 and 2.11(b), (a) the Dollar Amount of such Lender’s Credit Exposure exceeding such Lender’s Commitment, (b) the Dollar Amount of the Total Credit Exposure exceeding the Aggregate Commitment, (c) the Dollar Amount of the total outstanding Loans and LC Exposure, in each case denominated in Foreign Currencies, exceeding the Foreign Currency Sublimit, or (d) the Dollar Amount of the total outstanding Loans and LC Exposure, in each case denominated in the same Foreign Currency, exceeding the applicable Foreign Currency Additional Sublimit.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans.
		

		
			SECTION 2.02.  Loans and Borrowings.  (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.  
		

		
			(b)  Subject to Section 2.14, each Borrowing shall be comprised entirely of ABR Loans, Eurocurrency LIBO Rate Loans or Eurocurrency Daily LIBO Rate Loans as the Borrower may request in accordance herewith; provided (i) that each ABR Loan shall only be made in Dollars and (ii) that no Eurocurrency Daily LIBO Rate Loans shall be made in Canadian Dollars.  Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.
		

		
			(c)  At the commencement of each Interest Period for any Eurocurrency LIBO Rate Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 (or, if such Borrowing is denominated in a Foreign Currency, 500,000 units of such currency) and not less than $1,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 1,000,000 units of such currency).  
		

		 

		

			 

		

		

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		At the time of each Eurocurrency Daily LIBO Rate Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 (or, if such Borrowing is denominated in a Foreign Currency, 500,000 units of such currency) and not less than $1,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 1,000,000 units of such currency).  At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate Commitment or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e).  Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of five (5) Eurocurrency LIBO Rate Borrowings outstanding.
		

		
			(d)  Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.
		

		
			SECTION 2.03.  Requests for Borrowings.  To request a Borrowing, the Borrower shall notify the Administrative Agent of such request (a) by irrevocable written notice (via a written Borrowing Request signed by the Borrower) in the case of a Eurocurrency LIBO Rate Borrowing, not later than 11:00 a.m., Local Time, three (3) Business Days (in the case of a Eurocurrency LIBO Rate Borrowing denominated in Dollars) or by irrevocable written notice (via a written Borrowing Request signed by the Borrower) not later than four (4) Business Days (in the case of a Eurocurrency LIBO Rate Borrowing denominated in a Foreign Currency), in each case before the date of the proposed Borrowing or (b) by irrevocable written notice (via a written Borrowing Request signed by the Borrower) in the case of a Eurocurrency Daily LIBO Rate Borrowing or an ABR Borrowing, not later than 12:00 noon, New York City time, on the date of the proposed Borrowing; provided that any such notice of an ABR Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed Borrowing.  Each such Borrowing Request shall specify the following information in compliance with Section 2.02: 
		

		
			(i) the aggregate principal amount of the requested Borrowing;
		

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

		
			(iii) whether such Borrowing is to be an ABR Borrowing, a Eurocurrency LIBO Rate Borrowing or a Eurocurrency Daily LIBO Rate Borrowing;
		

		
			(iv) in the case of a Eurocurrency Borrowing, the Agreed Currency to be applicable to such Borrowing;
		

		
			(v) in the case of a Eurocurrency LIBO Rate Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and
		

		
			(vi) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07.
		

		
			If no election as to the Type of Borrowing is specified, then, in the case of a Borrowing denominated in Dollars, the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurocurrency LIBO Rate Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Borrowing Request in 
		

		 

		

			 

		

		

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		accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.    
		

		
			SECTION 2.04.  Determination of Dollar Amounts.  The Administrative Agent will determine the Dollar Amount of:
		

		
			(a) any Loan denominated in a Foreign Currency, on each of the following: (i) the date of the Borrowing of such Loan and (ii) each date of a conversion or continuation of such Loan pursuant to the terms of this Agreement,
		

		
			(b) any Letter of Credit denominated in a Foreign Currency, on each of the following: (i) the date on which such Letter of Credit is issued, (ii) the first Business Day of each calendar month and (iii) the date of any amendment of such Letter of Credit that has the effect of increasing the face amount thereof, and
		

		
			(c) any Credit Event, on any additional date as the Administrative Agent may determine at any time when an Event of Default exists.
		

		
			Each day upon or as of which the Administrative Agent determines Dollar Amounts as described in the preceding clauses (a), (b) and (c) is herein described as a “Computation Date” with respect to each Credit Event for which a Dollar Amount is determined on or as of such day.
		

		
			SECTION 2.05.  [Intentionally Omitted].  
		

		
			SECTION 2.06.  Letters of Credit.  (a) General.  Subject to the terms and conditions set forth herein, the Borrower may request any Issuing Bank to issue Letters of Credit denominated in Agreed Currencies as the applicant thereof for the support of its or its Affiliates’ obligations, in a form reasonably acceptable to the Administrative Agent and the relevant Issuing Bank, at any time and from time to time during the Availability Period, and such Issuing Bank may, in its sole discretion, agree to issue such Letters of Credit.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit Agreement, the terms and conditions of this Agreement shall control.  Notwithstanding anything herein to the contrary, no Issuing Bank shall have any obligation hereunder 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 such Issuing Bank from issuing such Letter of Credit, or any law applicable to such Issuing Bank shall prohibit, or require that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon such Issuing Bank any unreimbursed loss, cost or expense that was not applicable on the Effective Date and that such Issuing Bank in good faith deems material to it or (ii) the issuance of such Letter of Credit would violate one or more policies of such Issuing Bank applicable to letters of credit generally.
		

		
			(b)  Notice of Issuance, Amendment, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the relevant Issuing Bank) to the relevant Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended or extended, and specifying the date of issuance, amendment or extension (which shall be a Business Day), 
		

		 

		

			 

		

		

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			the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the Agreed Currency applicable thereto, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend or extend such Letter of Credit.  In addition, as a condition to any such Letter of Credit issuance, the Borrower shall have entered into a continuing agreement (or other letter of credit agreement) for the issuance of letters of credit and/or shall submit a letter of credit application, in each case, as required by the Issuing Bank and using the Issuing Bank’s standard form (each, a “Letter of Credit Agreement”).  A Letter of Credit shall be issued, amended or extended only if (and upon issuance, amendment or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment or extension subject to Sections 2.04 and 2.11(b), (i) the Dollar Amount of the LC Exposure shall not exceed the Letter of Credit Sublimit,  (ii) the sum of (x) the aggregate undrawn amount of all outstanding Letters of Credit issued by any Issuing Bank at such time plus (y) the aggregate amount of all LC Disbursements made by such Issuing Bank that have not yet been reimbursed by or on behalf of the Borrower at such time, shall not exceed such Issuing Bank’s Letter of Credit Commitment, (iii) the Dollar Amount of the Total Credit Exposure shall not exceed the Aggregate Commitment, (iv) the Dollar Amount of each Lender’s Credit Exposure shall not exceed such Lender’s Commitment, (v) the Dollar Amount of the total outstanding Loans and LC Exposure, in each case denominated in Foreign Currencies, shall not exceed the Foreign Currency Sublimit, (vi) the Dollar Amount of the total outstanding Loans and LC Exposure, in each case denominated in the same Foreign Currency, shall not exceed the applicable Foreign Currency Additional Sublimit, and (v) the Dollar amount of the total LC Exposure denominated in the same Foreign Currency shall not exceed the applicable Foreign Currency Letter of Credit Sublimit  The Borrower may, at any time and from time to time, reduce the Letter of Credit Commitment of any Issuing Bank with the consent of such Issuing Bank; provided that the Borrower shall not reduce the Letter of Credit Commitment of any Issuing Bank if, after giving effect of such reduction, the conditions set forth in the immediately preceding clauses (i) through (v) shall not be satisfied.
		

		
			(c)  Expiration Date.  Each Letter of Credit shall expire (or be subject to termination by notice from the relevant Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any extension of the expiration date thereof, one year after such extension) and (ii) the date that is five (5) Business Days prior to the Maturity Date.
		

		
			(d)  Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the relevant Issuing Bank or the Lenders, the relevant Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the relevant Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the relevant Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason, including after the Maturity Date. Each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments.
		

		
			(e)  Reimbursement.  If the relevant Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the 
		

		 

		

			 

		

		

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			Administrative Agent in Dollars the Dollar Amount equal to such LC Disbursement, calculated as of the date such Issuing Bank made such LC Disbursement (or if such Issuing Bank shall so elect in its sole discretion by notice to the Borrower, in such other Agreed Currency which was paid by such Issuing Bank pursuant to such LC Disbursement in an amount equal to such LC Disbursement) not later than 12:00 noon, Local Time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, Local Time, on the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided that, if such LC Disbursement is not less than the Dollar Amount of $1,000,000, the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 that such payment be financed with (i) to the extent such LC Disbursement was made in Dollars, an ABR Borrowing or Eurocurrency Borrowing in Dollars in an amount equal to such LC Disbursement or (ii) to the extent that such LC Disbursement was made in a Foreign Currency, a Eurocurrency Borrowing in such Foreign Currency in an amount equal to such LC Disbursement and, in each case, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing or Eurocurrency Borrowing. as applicable.  If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the relevant Issuing Bank the amounts so received by it from the Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to such Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this paragraph to reimburse the relevant Issuing Bank for any LC Disbursement (other than the funding of Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.  If the Borrower’s reimbursement of, or obligation to reimburse, any amounts in any Foreign Currency would subject the Administrative Agent, any Issuing Bank or any Lender to any stamp duty, ad valorem charge or similar tax that would not be payable if such reimbursement were made or required to be made in Dollars, the Borrower shall, at its option, either (x) pay the amount of any such tax requested by the Administrative Agent, the relevant Issuing Bank or the relevant Lender or (y) reimburse each LC Disbursement made in such Foreign Currency in Dollars, in an amount equal to the Dollar Amount thereof calculated on the date such LC Disbursement is made.
		

		
			(f)  Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein or herein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment by the relevant Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder.  Neither the Administrative Agent, the Lenders nor the Issuing Banks, nor any of their respective Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter 
		

		 

		

			 

		

		

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			of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms, any error in translation or any consequence arising from causes beyond the control of the relevant Issuing Bank; provided that the foregoing shall not be construed to excuse the relevant Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of such Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, each Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
		

		
			(g)  Disbursement Procedures.  The Issuing Bank for any Letter of Credit shall, within the time allowed by applicable law or the specific terms of the Letter of Credit following its receipt thereof, examine all documents purporting to represent a demand for payment under such Letter of Credit.  Each Issuing Bank shall after such examination promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy or electronic mail) of such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Lenders with respect to any such LC Disbursement.
		

		
			(h)  Interim Interest.  If any Issuing Bank shall make any LC Disbursement for any Letter of Credit issued by it, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the reimbursement is due and payable, at the rate per annum then applicable to ABR Loans (or in the case such LC Disbursement is denominated in a Foreign Currency, at the Overnight Foreign Currency Rate for such Agreed Currency plus the then effective Applicable Rate with respect to Eurocurrency Loans) and such interest shall be due and payable on the date when such reimbursement is payable;  provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of the relevant Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank for such LC Disbursement shall be for the account of such Lender to the extent of such payment.
		

		
			(i)  Replacement and Resignation of Issuing Bank.  (A) Any Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Lenders of any such replacement of any Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter 
		

		 

		

			 

		

		

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			and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit or extend or otherwise amend any existing Letter of Credit.
		

		
			(B) Subject to the appointment and acceptance of a successor Issuing Bank, any Issuing Bank may resign as an Issuing Bank at any time upon thirty days’ prior written notice to the Administrative Agent, the Borrower, the Parent and the Lenders, in which case, the resigning Issuing Bank shall be replaced in accordance with Section 2.06(i)(A) above.
		

		
			(j)  Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of the Dollar Amount of the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that (i) the portions of such amount attributable to undrawn Foreign Currency Letters of Credit or LC Disbursements in a Foreign Currency that the Borrower is not late in reimbursing shall be deposited in the applicable Foreign Currencies in the actual amounts of such undrawn Letters of Credit and LC Disbursements and (ii) the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in Section 7.01(h) or 7.01(i).  For the purposes of this paragraph, the Dollar Amount of the Foreign Currency LC Exposure shall be calculated on the date notice demanding cash collateralization is delivered to the Borrower.  The Borrower also shall deposit cash collateral pursuant to this paragraph as and to the extent required by Section 2.11(b).  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Obligations.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the relevant Issuing Bank for LC Disbursements for which it has not been reimbursed, together with related fees, costs and customary processing charges, and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposure  representing greater than 50% of the total LC Exposure), be applied to satisfy other Obligations.  If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived.
		

		
			(k)  LC Exposure Determination.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the terms of any Letter of Credit Agreement related thereto, provides for one or more automatic increases in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such Letter of 
		

		

		

		 

		

			 

		

		

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			Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time.
		

		
			(l)  Letters of Credit Issued for Account of Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a Subsidiary, or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,” or the like of or for such Letter of Credit, and without derogating from any rights of the relevant Issuing Bank (whether arising by contract, at law, in equity or otherwise) against such Subsidiary in respect of such Letter of Credit, the Borrower (i) shall reimburse, indemnify and compensate the Issuing Bank hereunder for such Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely for the account of the Borrower and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of such Subsidiary in respect of such Letter of Credit.  The Borrower hereby acknowledges that the issuance of such Letters of Credit for its Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.
		

		
			(m)  Issuing Bank Agreements.  Each Issuing Bank agrees that, unless otherwise requested by the Administrative Agent, such Issuing Bank shall report in writing to the Administrative Agent (i) on or prior to each Business Day on which such Issuing Bank expects to issue, amend, renew or extend any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount and currency of the Letters of Credit to be issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), (ii) on each Business Day on which such Issuing Bank pays any amount in respect of one or more drawings under Letters of Credit, the date of such payment(s) and the amount and currency of such payment(s), (iii) on any Business Day on which the Borrower fails to reimburse any amount required to be reimbursed to such Issuing Bank on such day, the date of such failure and the amount and currency of such payment in respect of Letters of Credit and (iv) on any other Business Day, such other information as the Administrative Agent shall reasonably request.
		

		
			SECTION 2.07.  Funding of Borrowings.  (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof solely by wire transfer of immediately available funds (i) in the case of Loans denominated in Dollars, by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders and (ii) in the case of each Loan denominated in a Foreign Currency, by 12:00 noon, Local Time, in the city of the Administrative Agent’s Eurocurrency Payment Office for such currency and at such Eurocurrency Payment Office for such currency..  Except in respect of the provisions of this Agreement covering the reimbursement of Letters of Credit, the Administrative Agent will make such Loans available to the Borrower by promptly crediting the funds so received in the aforesaid account of the Administrative Agent to (x) an account of the Borrower maintained with the Administrative Agent in New York City or Pittsburgh and designated by the Borrower in the applicable Borrowing Request, in the case of Loans denominated in Dollars and (y) an account of the Borrower in the relevant jurisdiction and designated by the Borrower in the applicable Borrowing Request, in the case of Loans denominated in a Foreign Currency; provided that Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the relevant Issuing Bank.
		

		
			(b)  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (or in the case of an ABR Borrowing, prior to 1:00 p.m., New York City time, on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance 
		

		 

		

			 

		

		

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			upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency) or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.
		

		
			SECTION 2.08.  Interest Elections.  (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency LIBO Rate Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurocurrency LIBO Rate Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 
		

		
			(b)  To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election (by irrevocable written notice via an Interest Election Request signed by the Borrower) by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Notwithstanding any contrary provision herein, this Section shall not be construed to permit the Borrower to (i) change the currency of any Borrowing, (ii) elect an Interest Period for Eurocurrency LIBO Rate Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing to a Borrowing of a Type not available under such Borrowing.
		

		
			(c)  Each Interest Election Request shall specify the following information in compliance with Section 2.02:
		

		
			(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii), (iv) and (v) below shall be specified for each resulting Borrowing);
		

		
			(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;
		

		
			(iii) whether the resulting Borrowing is to be an ABR Borrowing, a Eurocurrency LIBO Rate Borrowing or a Eurocurrency Daily LIBO Rate Borrowing; 
		

		
			(iv) if the resulting Borrowing is a Eurocurrency LIBO Rate Borrowing, the Agreed Currency to be applicable thereto; and
		

		
			(v) if the resulting Borrowing is a Eurocurrency LIBO Rate Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which Interest Period shall be a period contemplated by the definition of the term “Interest Period”.
		

		

		

		 

		

			 

		

		

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		If any such Interest Election Request requests a Eurocurrency LIBO Rate Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.
		

		
			(d)  Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.
		

		
			(e)  If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurocurrency LIBO Rate Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period (i) in the case of a Borrowing denominated in Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in the case of a Borrowing denominated in a Foreign Currency in respect of which the Borrower shall have failed to deliver an Interest Election Request prior to the third (3rd) Business Day preceding the end of such Interest Period, such Borrowing shall automatically continue as a Eurocurrency LIBO Rate Borrowing in the same Agreed Currency with an Interest Period of one month unless such Eurocurrency LIBO Rate Borrowing is or was repaid in accordance with Section 2.11.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing denominated in Dollars may be converted to or continued as a Eurocurrency Borrowing, (ii) unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR Borrowing (x) in the case of each Eurocurrency LIBO Rate Borrowing, at the end of the Interest Period applicable thereto and (y) in the case of each Eurocurrency Daily LIBO Rate Borrowing, immediately, (iii) unless repaid, each Eurocurrency LIBO Rate Borrowing denominated in a Foreign Currency shall automatically be continued as a Eurocurrency LIBO Rate Borrowing with an Interest Period of one month and (iv) unless repaid, each Eurocurrency Daily LIBO Rate Borrowing denominated in a Foreign Currency shall automatically be continued as a Eurocurrency Daily LIBO Rate Borrowing Borrowing.
		

		
			SECTION 2.09.  Termination and Reduction of Commitments.  (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date.
		

		
			(b)  The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, (A) any Lender’s Credit Exposure would exceed its Commitment or (B) the Dollar Amount of the Total Credit Exposure would exceed the Aggregate Commitment.
		

		
			(c)  The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities or other transactions specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.
		

		
			
		

		 

		

			 

		

		

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		SECTION 2.10.  Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Maturity Date in the currency of such Loan. 
		

		
			(b)  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
		

		
			(c)  The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Agreed Currency and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.
		

		
			(d)  The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.
		

		
			(e)  Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in the form attached hereto as Exhibit I.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form.
		

		
			SECTION 2.11.  Prepayment of Loans.  
		

		
			(a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with the provisions of this Section 2.11(a).  The Borrower shall notify the Administrative Agent by written notice of any prepayment hereunder (i) in the case of prepayment of a Eurocurrency Borrowing, not later than 11:00 a.m., Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars) or four (4) Business Days (in the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in each case before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, New York City time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.  Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) any break funding payments required by Section 2.16.
		

		

		

		 

		

			 

		

		

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			(b) If at any time, (i) other than as a result of fluctuations in currency exchange rates, (A) the aggregate principal Dollar Amount of the Total Credit Exposure (calculated, with respect to those Credit Events denominated in Foreign Currencies, as of the most recent Computation Date with respect to each such Credit Event) exceeds the Aggregate Commitment or (B) the aggregate principal Dollar Amount of the Total Credit Exposure denominated in Foreign Currencies (the “Foreign Currency Exposure”) (so calculated), as of the most recent Computation Date with respect to each such Credit Event, exceeds the Foreign Currency Sublimit or (C) the aggregate principal Dollar Amount of the Total Credit Exposure denominated in the same Foreign Currency (so calculated), as of the most recent Computation Date with respect to each such Credit Event, exceeds the Foreign Currency Additional Sublimit in respect of such Foreign Currency or (ii) solely as a result of fluctuations in currency exchange rates, (A) the aggregate principal Dollar Amount of the Total Credit Exposure (so calculated) exceeds 105% of the Aggregate Commitment or (B) the Foreign Currency Exposure, as of the most recent Computation Date with respect to each such Credit Event, exceeds 105% of the Foreign Currency Sublimit or (C) the aggregate principal Dollar Amount of the Total Credit Exposure denominated in the same Foreign Currency (so calculated), as of the most recent Computation Date with respect to each such Credit Event, exceeds 105% the Foreign Currency Additional Sublimit in respect of such Foreign Currency, the Borrower shall in each case immediately repay Borrowings or cash collateralize LC Exposure in an account with the Administrative Agent pursuant to Section 2.06(j), as applicable, in an aggregate principal amount sufficient to cause (x) the aggregate Dollar Amount of the Total Credit Exposure (so calculated) to be less than or equal to the Aggregate Commitment and (y) the Foreign Currency Exposure to be less than or equal to the Foreign Currency Sublimit and (z) the aggregate principal Dollar Amount of the Total Credit Exposure denominated in the same Foreign Currency (so calculated) to be less than or equal to the Foreign Currency Additional Sublimit in respect of such Foreign Currency, as applicable.
		

		
			SECTION 2.12.  Fees.  (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the daily Available Commitment during the period from and including the Effective Date to but excluding the date on which such Commitment terminates; provided that, if such Lender continues to have any Credit Exposure after its Commitment terminates, then such commitment fee shall continue to accrue on the daily amount of such Lender’s Credit Exposure from and including the date on which its Commitment terminates to but excluding the date on which such Lender ceases to have any Credit Exposure.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any commitment fees accruing after the date on which the Commitments terminate shall be payable on demand.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
		

		
			(b)  The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in each outstanding Letter of Credit, which shall accrue on the daily maximum amount then available to be drawn under such Letter of Credit at the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Loans, during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank for its own account a fronting fee with respect to each Letter of Credit issued by such Issuing Bank, which shall accrue at the rate of 0.125% per annum on the daily maximum amount then available to be drawn under such Letter of Credit, during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure with respect to Letters of Credit issued by such Issuing Bank, as well as such Issuing Bank’s standard fees with respect to the issuance, amendment or extension of any Letter of Credit and other processing fees, and other standard costs and charges, of such Issuing bank relating the Letters of Credit as 
		

		 

		

			 

		

		

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			from time to time in effect.  Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third (3rd) Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.  Any other fees payable to an Issuing Bank pursuant to this paragraph shall be payable within ten (10) days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  Participation fees and fronting fees in respect of Letters of Credit denominated in Dollars shall be paid in Dollars, and participation fees and fronting fees in respect of Letters of Credit denominated in a Foreign Currency shall be paid in Dollars in the Dollar Amount thereof.
		

		
			(c)  The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. The Borrower agrees to pay to PNC Bank, National Association, on the Effective Date the fee payable in the amount as set forth in the Fee Letter. 
		

		
			(d)  All fees payable hereunder shall be paid on the dates due, in Dollars (except as otherwise expressly provided in this Section 2.12) and immediately available funds, to the Administrative Agent (or to each Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders.  Fees paid shall not be refundable under any circumstances.
		

		
			SECTION 2.13.  Interest.  (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.
		

		
			(b)  (i) The Loans comprising each Eurocurrency LIBO Rate Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate. (ii) The Loans comprising each Eurocurrency Daily LIBO Rate Borrowing shall bear interest at the Adjusted Daily LIBO Rate for such Borrowing plus the Applicable Rate.
		

		
			(c)  Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section.
		

		
			(d)  Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.
		

		
			(e)  All interest hereunder shall be computed on the basis of a year of 360 days, except that interest (i) (A) computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate and (B) computed by reference to the CDOR Rate, in each case shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and (ii) for Borrowings denominated in 
		

		 

		

			 

		

		

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			Pounds Sterling shall be computed on the basis of a year of 365 days, and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
		

		
			(f) Interest in respect of Loans denominated in Dollars shall be paid in Dollars, and interest in respect of Loans denominated in a Foreign Currency shall be paid in such Foreign Currency.
		

		
			SECTION 2.14.  Alternate Rate of Interest.
		

		
			(a)  If at the time that the Administrative Agent shall seek to determine the applicable Screen Rate on the Quotation Day for any Eurocurrency Daily LIBO Rate Borrowing or for any Interest Period for a Eurocurrency Borrowing, as the case may be, the applicable Screen Rate shall not be available for such Eurocurrency Daily LIBO Rate Borrowing or such Interest Period and/or for the applicable currency with respect to such Eurocurrency Borrowing for any reason, and the Administrative Agent shall reasonably determine that it is not possible to determine the applicable Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error), then the Reference Bank Rate shall be the Daily LIBO Rate for such Eurocurrency Daily LIBO Rate Borrowing or the LIBO Rate (or the CDOR Rate, as applicable) for such Interest Period for such Eurocurrency LIBO Rate Borrowing; provided that if the Reference Bank Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided,  further, however, that if less than two Reference Banks shall supply a rate to the Administrative Agent for purposes of determining the Daily LIBO Rate for such Eurocurrency Daily LIBO Rate Borrowing or the LIBO Rate (or the CDOR Rate, as applicable) for such Interest Period for such Eurocurrency LIBO Rate Borrowing, as the case may be, (i) if such Borrowing shall be requested in Dollars, then such Borrowing shall be made as an ABR Borrowing at the Alternate Base Rate and (ii) if such Borrowing shall be requested in any Foreign Currency, Daily LIBO Rate for such Eurocurrency Daily LIBO Rate Borrowing or the LIBO Rate for such Interest Period for such Eurocurrency LIBO Rate Borrowing, as the case may be,  shall be equal to the rate determined by the Administrative Agent in its reasonable discretion after consultation with the Borrower and consented to in writing by the Required Lenders (any such rate, the “Alternative Rate”); provided,  however, that (i) until such time as the applicable Alternative Rate shall be determined for the applicable Foreign Currency and so consented to by the Required Lenders, Borrowings shall not be available in such Foreign Currency and (ii) if the Alternative Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.  It is hereby understood and agreed that, notwithstanding anything to the contrary set forth in this Section 2.14(a), if at any time the conditions set forth in Section 2.14(c)(i) or (ii) are in effect, the provisions of this Section 2.14(a) shall no longer be applicable for any purpose of determining any alternative rate of interest under this Agreement and Section 2.14(c) shall instead be applicable for all purposes of determining any alternative rate of interest under this Agreement.
		

		
			(b) If prior to the commencement of any Interest Period for a Eurocurrency LIBO Rate Borrowing or at any time in the case of a Eurocurrency Daily LIBO Rate Borrowing:
		

		
			(i) the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate, the Adjusted Daily LIBO Rate,the LIBO Rate, the Daily LIBO Rate or the CDOR Rate, as applicable (including because the applicable Screen Rate is not available or published on a current basis), for (x) in the case of a Eurocurrency LIBO Rate Borrowing,  the applicable currency and such Interest Period and (y) in the case of a Eurocurrency Daily LIBO Rate Borrowing, the applicable currency and the applicable one-month period; or
		

		

		

		 

		

			 

		

		

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		(ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate, the Adjusted Daily LIBO Rate, the LIBO Rate, the Daily LIBO Rate or the CDOR Rate, as applicable, for (x) in the case of a Eurocurrency LIBO Rate Borrowing, the applicable currency and such Interest Period and (y) in the case of a Eurocurrency Daily LIBO Rate Borrowing, the applicable currency and the applicable one-month period, will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for (x) in the case of a Eurocurrency LIBO Rate Borrowing, the applicable currency and such Interest Period and (y) in the case of a Eurocurrency Daily LIBO Rate Borrowing, the applicable currency and the applicable one-month period;
		

		
			then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurocurrency Borrowing in the applicable currency or for the applicable Interest Period, as the case may be, shall be ineffective, (ii) if any Borrowing Request requests a Eurocurrency Borrowing in Dollars, such Borrowing shall be made as an ABR Borrowing and (iii) if any Borrowing Request requests a Eurocurrency Borrowing in a Foreign Currency, then (x) in the case of a Eurocurrency LIBO Rate Borrowing, the LIBO Rate (or the CDOR Rate, as applicable) for such Eurocurrency Borrowing and (y) in the case of a Eurocurrency Daily LIBO Rate Borrowing, the Daily LIBO Rate for such Eurocurrency Borrowing in either case shall be the applicable Alternative Rate; provided that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.
		

		
			(c)Notwithstanding the foregoing, if at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in Section 2.14(b)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in Section 2.14(b)(i) have not arisen but any of (w) the supervisor for the administrator of the applicable Screen Rate has made a public statement that the administrator of the applicable Screen Rate is insolvent (and there is no successor administrator that will continue publication of the applicable Screen Rate), (x) the administrator of the applicable Screen Rate has made a public statement identifying a specific date after which such applicable Screen Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of such applicable Screen Rate), (y) the supervisor for the administrator of the applicable Screen Rate has made a public statement identifying a specific date after which such applicable Screen Rate will permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the applicable Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which such applicable Screen Rate may no longer be used for determining interest rates for loans, then the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the LIBO Rate (or the CDOR Rate, as applicable) and the Daily LIBO Rate  that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable, including, without limitation, the modification or replacement of clause (c) set forth in the definition of “Alternate Base Rate” (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Rate); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Notwithstanding anything to the contrary in Section 9.02, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five (5) Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written 
		

		 

		

			 

		

		

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			notice from the Required Lenders stating that such Required Lenders object to such amendment.  Until an alternate rate of interest shall be determined in accordance with this Section 2.14(c) (but, in the case of the circumstances described in clause (ii)(w), clause (ii)(x) or clause (ii)(y) of the first sentence of this Section 2.14(c), only to the extent the LIBO Screen Rate for the applicable currency and such Interest Period and the Daily LIBO Screen Rate for the applicable currency and the applicable one-month period in each case is not available or published at such time on a current basis), (x) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurocurrency Borrowing in the applicable currency or for the applicable Interest Period, as the case may be, shall be ineffective, (y) if any Borrowing Request requests a Eurocurrency Borrowing in Dollars, such Borrowing shall be made as an ABR Borrowing and (z) if any Borrowing Request requests a Eurocurrency Borrowing in a Foreign Currency, then such request shall be ineffective.
		

		
			SECTION 2.15.  Increased Costs.  (a) If any Change in Law shall:
		

		
			(i) impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate or the Adjusted Daily LIBO Rate) or any Issuing Bank;
		

		
			(ii) impose on any Lender or any Issuing Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; or
		

		
			(iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
		

		
			and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting to or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender, such Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, such Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender, such Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, such Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
		

		
			(b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered.
		

		

		

		 

		

			 

		

		

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

		
			(d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
		

		
			SECTION 2.16.  Break Funding Payments.  In the event of (a) the payment of any principal of any Eurocurrency LIBO Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.11), (b) the conversion of any Eurocurrency LIBO Rate Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency LIBO Rate Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.11(a) and is revoked in accordance therewith) or (d) the assignment of any Eurocurrency LIBO Rate Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19 or 9.02(d), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in the relevant currency of a comparable amount and period from other banks in the eurocurrency market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.
		

		
			SECTION 2.17.  Taxes.  (a) Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.17) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
		

		

		

		 

		

			 

		

		

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		(b)  Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of,  any Other Taxes.
		

		
			(c)  Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.17, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
		

		
			(d)  Indemnification by the Loan Parties.  The Loan Parties shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
		

		
			(e)  Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to setoff and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).
		

		
			(f)  Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
		

		

		

		 

		

			 

		

		

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			(i) Without limiting the generality of the foregoing:
		

		
			(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;
		

		
			(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable;
		

		
			(1)  in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
		

		
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			(2)  an executed copy of IRS Form W-8ECI;
		

		
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			(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit G-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or
		

		
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			(4) to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-4 on behalf of each such direct and indirect partner;
		

		
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			(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by 
		

		 

		

			 

		

		

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			applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and
		

		
			(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower 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 (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
		

		
			Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
		

		
			(g)  Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
		

		
			(h)  Survival.  Each party’s obligations under this Section 2.17 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
		

		
			(i)  Defined Terms.  For purposes of this Section 2.17, the term “Lender” includes each Issuing Bank and the term “applicable law” includes FATCA.
		

		
			
		

		 

		

			 

		

		

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		SECTION 2.18.  Payments Generally; Allocation of Proceeds; Pro Rata Treatment; Sharing of Setoffs.
		

		
			(a) The Borrower shall make each payment or prepayment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to (i) in the case of payments denominated in Dollars, 12:00 noon, New York City time and (ii) in the case of payments denominated in a Foreign Currency, 12:00 noon, Local Time, in the city of the Administrative Agent’s Eurocurrency Payment Office for such currency, in each case on the date when due or the date fixed for any prepayment hereunder, in immediately available funds, without setoff, recoupment or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made (i) in the same currency in which the applicable Credit Event was made (or where such currency has been converted to euro, in euro) and (ii) to the Administrative Agent at its offices at 300 Fifth Avenue, Pittsburgh, Pennsylvania 15222 or, in the case of a Credit Event denominated in a Foreign Currency, the Administrative Agent’s Eurocurrency Payment Office for such currency, except payments to be made directly to any Issuing Bank as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments denominated in the same currency received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  Notwithstanding the foregoing provisions of this Section, if, after the making of any Credit Event in any Foreign Currency, currency control or exchange regulations are imposed in the country which issues such currency with the result that the type of currency in which the Credit Event was made (the “Original Currency”) no longer exists or the Borrower is not able to make payment to the Administrative Agent for the account of the Lenders in such Original Currency, then all payments to be made by the Borrower hereunder in such currency shall instead be made when due in Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due, it being the intention of the parties hereto that the Borrower takes all risks of the imposition of any such currency control or exchange regulations. 
		

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

		
			(c) At the election of the Administrative Agent, all payments of principal, interest, LC Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a request by the Borrower pursuant to Section 2.03 or a deemed request as provided in this Section or may be deducted from any deposit account of the Borrower maintained with the Administrative Agent. The Borrower hereby irrevocably authorizes (i) the Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Loans and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03 and (ii) the Administrative Agent to 
		

		 

		

			 

		

		

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		charge any deposit account of the Borrower maintained with the Administrative Agent for each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents.
		

		
			(d) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered,  such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply).  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
		

		
			(e) Unless the Administrative Agent shall have received, prior to any date on which any payment is due to the Administrative Agent for the account of the Lenders or relevant Issuing Bank pursuant to the terms of this Agreement or any other Loan Document (including any date that is fixed for prepayment by notice from the Borrower to the Administrative Agent pursuant to Section 2.11(b)), notice from the Borrower that the Borrower will not make such payment or prepayment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the relevant Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the relevant Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency).
		

		
			SECTION 2.19.  Mitigation Obligations; Replacement of Lenders.  (a) If (i) any Lender requests compensation under Section 2.15, or (ii) the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
		

		

		

		 

		

			 

		

		

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		(b)  If (i) any Lender requests compensation under Section 2.15, (ii) the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17 or (iii) any Lender becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Section 2.15 or 2.17) and obligations under this Agreement and the other Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and if a Commitment is being assigned, the Issuing Banks), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.    Each party hereto agrees that (i) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (ii) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.
		

		
			SECTION 2.20.  [Intentionally Omitted].  
		

		
			SECTION 2.21.  Judgment Currency.  If for the purposes of obtaining judgment in any court it is necessary to convert a sum due from the Borrower hereunder in the currency expressed to be payable herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the specified currency with such other currency at the Administrative Agent’s main New York City office on the Business Day preceding that on which final, non‐appealable judgment is given.  The obligations of the Borrower in respect of any sum due to any Lender or the Administrative Agent hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following receipt by such Lender or the Administrative Agent (as the case may be) of any sum adjudged to be so due in such other currency such Lender or the Administrative Agent (as the case may be) may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency.  If the amount of the specified currency so purchased is less than the sum originally due to such Lender or the Administrative Agent, as the case may be, in the specified currency, the Borrower agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent, as the case may be, against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum originally due to any Lender or the Administrative Agent, as the case may be, in the specified currency and (b) any amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender under 
		

		 

		

			 

		

		

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		Section 2.18, such Lender or the Administrative Agent, as the case may be, agrees to remit such excess to the Borrower.
		

		
			SECTION 2.22.  Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:
		

		
			(a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.12(a);
		

		
			(b) any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank hereunder; third, to cash collateralize the LC Exposure with respect to such Defaulting Lender in accordance with this Section; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan 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; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) cash collateralize the future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with this Section; sixth, to the payment of any amounts owing to the Lenders, the Issuing Banks as a result of any judgment of a court of competent jurisdiction obtained by any Lender, any Issuing Bank against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure are held by the Lenders pro rata in accordance with the Commitments without giving effect to clause (d) below.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto;
		

		
			(c) the Commitment and Credit Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 9.02); provided,  further, that any amendment, waiver or other modification requiring the consent of all Lenders or all Lenders directly affected thereby shall not, except as otherwise provided in Section 9.02, require the consent of such Defaulting Lender in accordance with the terms hereof;
		

		

		

		 

		

			 

		

		

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

		
			(i) all or any part of the LC Exposure of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages  but only to the extent that such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender’s Credit Exposure to exceed its Commitment;
		

		
			(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one (1) Business Day following notice by the Administrative Agent (cash collateralize for the benefit of each Issuing Bank only the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.06(j) for so long as such LC Exposure is outstanding;
		

		
			(iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;
		

		
			(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Section 2.12(a) and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and
		

		
			(v) if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or remedies of the relevant Issuing Bank or any other Lender hereunder, all letter of credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to such Issuing Bank until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and
		

		
			(e) so long as such Lender is a Defaulting Lender, the relevant Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.22(d), and LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.22(d)(i) (and such Defaulting Lender shall not participate therein).
		

		
			If (i) a Bankruptcy Event with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii)  any Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless the relevant Issuing Bank shall have entered into arrangements with the Borrower or such Lender, satisfactory to such Issuing Bank to defease any risk to it in respect of such Lender hereunder.
		

		
			In the event that the Administrative Agent, the Borrower, each Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as 
		

		

		

		 

		

			 

		

		

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			the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.
		

		
			Article III
Representations and Warranties
		

		
			Each of the Parent and the Borrower represents and warrants to the Lenders that:
		

		
			SECTION 3.01.  Organization; Powers; Subsidiaries.  Each of the Loan Parties is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.  Schedule 3.01 hereto (as supplemented from time to time) identifies each Subsidiary, noting whether such Subsidiary is a Material Domestic Subsidiary, the jurisdiction of its incorporation or organization, as the case may be, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Parent and the other Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as required by law), a description of each class issued and outstanding.  All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 3.01 hereto as owned by the Parent or another Subsidiary are owned, beneficially and of record, by the Parent or any Subsidiary free and clear of all Liens, other than Liens permitted by Section 6.02.  Except as may have been issued or may be issued from time to time under that certain Paychex, Inc. 2002 Stock Incentive Plan (as amended and restated), there are no outstanding commitments or other obligations of the Parent or any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of the Parent or any Subsidiary.
		

		
			SECTION 3.02.  Authorization; Enforceability.  The Transactions are within each Loan Party’s organizational powers and have been duly authorized by all necessary organizational actions and, if required, actions by equity holders.  The Loan Documents to which each Loan Party is a party have been duly executed and delivered by such Loan Party and constitute a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
		

		
			SECTION 3.03.  Governmental Approvals; No Conflicts.  The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for (A) the consents, approvals, registrations, filings or actions which have been obtained or made and are in full force and effect, (B) the filing of this Agreement and other Loan Documents (other than fee letters) with the SEC and (C) those other consents, approvals, registrations, filings or actions, the failure of which to obtain or make could not reasonably be expected to result in a Material Adverse Effect, (b) will not violate (i) any applicable law, regulation or order of any Governmental Authority, or (ii) the charter, by-laws or other organizational documents of any Loan Party, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or its assets, or give rise to a right thereunder to require any payment to be made by any Loan Party, and (d) will not result in the creation or imposition of any Lien on any material asset of any Loan Party (other than Liens permitted by Section 6.02); except with respect to any violation or default referred to in clause (b)(i) or (c) above, to 
		

		 

		

			 

		

		

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		the extent that such violation or default could not reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.04.  Financial Condition; No Material Adverse Change.  (a) The Parent has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal year ended [May 31, 2019] reported on by Pricewaterhouse Coopers LLP, independent public accountants.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP.
		

		
			(b)  Since May 31, 2019, there has been no material adverse change in the business, assets, operations or condition (financial or otherwise) of the Parent, the Borrower and their subsidiaries, taken as a whole.
		

		
			SECTION 3.05.  Properties.  (a) Each of the Parent and its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes and except where the failure to have such title or interest could not reasonably be expected to result in a Material Adverse Effect.
		

		
			(b)  Each of the Parent and its Subsidiaries owns, or is licensed or possesses the right to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and, to the knowledge of the Borrower, the use thereof by the Parent and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.06.  Litigation, Environmental and Labor Matters.  (a) There are no actions, suits, proceedings or investigations by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting any Loan Party (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve this Agreement or the Transactions.
		

		
			(b)  Except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Loan Party (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability or (iii) has received notice of any claim with respect to any Environmental Liability.
		

		
			(c)  There are no strikes or lockouts against any Loan Party pending or, to their knowledge, threatened.  The hours worked by and payments made to employees of the Parent and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law relating to such matters, except for any such violations that could not reasonably be expected to result in a Material Adverse Effect.  All material payments due from the Parent or any of its Subsidiaries, or for which any claim may be made against the Parent or any of its Subsidiaries, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as liabilities on the books of the Parent or such Subsidiary.  The consummation of the Transactions will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement under which the Parent or any of its Subsidiaries is bound.
		

		
			
		

		 

		

			 

		

		

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		SECTION 3.07.  Compliance with Laws and Agreements.  Each of the Parent and its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
		

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

		
			SECTION 3.09.  Taxes.  Each of the Parent and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Parent or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.10.  ERISA.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.
		

		
			SECTION 3.11.  Disclosure.  None of the reports, financial statements, certificates or other written information (excluding any financial projections or pro forma financial information and information of a general economic or general industry nature) furnished by or on behalf of the Loan Parties to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished), when taken as a whole and when taken together with the Parent’s SEC filings at such time, contains as of the date of such statement any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, each of the Parent and the Borrower represents only that such information was prepared in good faith based upon assumptions believed by management of the Parent and the Borrower to be reasonable at the time.  As of the Effective Date, to the best knowledge of the Borrower, the information included in the Beneficial Ownership Certification provided on or prior to the Effective Date to any Lender in connection with this Agreement is true and correct in all respects.
		

		
			SECTION 3.12.  Federal Reserve; Margin Regulations.  No part of the proceeds of any Loan have been used or will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.  The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing or Letter of Credit extension hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of the Borrower only or of the Parent and its Subsidiaries on a consolidated basis) will be Margin Stock.
		

		
			SECTION 3.13.  Liens.  There are no Liens on any of the real or personal properties of the Parent or any Subsidiary except for Liens permitted by Section 6.02.
		

		
			SECTION 3.14.  No Default.  No Default or Event of Default has occurred and is continuing.
		

		
			
		

		 

		

			 

		

		

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		SECTION 3.15.  Anti-Corruption Laws and Sanctions.  Each of the Parent and the Borrower has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by the Parent, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Parent, its Subsidiaries and, to the knowledge of the Parent, their respective officers, directors, employees and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Parent, any Subsidiary,  or, to the knowledge of the Parent or such Subsidiary, any of their respective directors, officers or employees, or (b) to the knowledge of the Parent, any agent of the Parent or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Transactions will violate any Anti-Corruption Law or applicable Sanctions.
		

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

		
			Article IV
Conditions
		

		
			SECTION 4.01.  Effective Date.  The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):
		

		
			(a) The Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents and such other legal opinions, certificates, documents, instruments and agreements as the Administrative Agent shall reasonably request in connection with the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel and as further described in the list of closing documents attached as Exhibit E.
		

		
			(b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Nixon Peabody LLP, counsel for the Loan Parties, substantially in the form of Exhibit B, and covering such other matters relating to the Loan Parties, the Loan Documents or the Transactions as the Administrative Agent shall reasonably request.  The Borrower hereby requests such counsel to deliver such opinion.
		

		
			(c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the initial Loan Parties, the authorization of the Transactions and any other legal matters relating to such Loan Parties, the Loan Documents or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel and as further described in the list of closing documents attached as Exhibit E.
		

		
			(d) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02.
		

		

		

		 

		

			 

		

		

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		(e) The Administrative Agent shall have received evidence satisfactory to it that the credit facility evidenced by the Existing Credit Agreement shall have been terminated and cancelled and all Indebtedness thereunder shall have been fully repaid (except to the extent being so repaid with the initial Loans).
		

		
			(f) (i) The Administrative Agent shall have received, at least five (5) days prior to the Effective Date, all documentation and other information regarding the Borrower requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act, to the extent requested in writing of the Borrower at least ten (10) days prior to the Effective Date and (ii) to the extent the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least five (5) days prior to the Effective Date, any Lender that has requested, in a written notice to the Borrower at least ten (10) days prior to the Effective Date, a Beneficial Ownership Certification in relation to the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Lender of its signature page to this Agreement, the condition set forth in this clause (f) shall be deemed to be satisfied).
		

		
			(g) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including (i) the fee required to be paid by the Borrower under the terms of the Fee Letter and (ii) to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
		

		
			The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.
		

		
			SECTION 4.02.  Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Banks to issue, amend or extend any Letter of Credit, is subject to the satisfaction of the following conditions:
		

		
			(a) The representations and warranties of the Parent and the Borrower set forth in this Agreement shall be true and correct on and as of the date of such Borrowing or the date of issuance, amendment or extension of such Letter of Credit, as applicable.
		

		
			(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment or extension of such Letter of Credit, as applicable, no Default or Event of Default shall have occurred and be continuing.
		

		
			Each Borrowing and each issuance, amendment or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
		

		
			Article V
Affirmative Covenants
		

		
			Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all LC Disbursements shall have been reimbursed, each of the Parent and the Borrower covenants and agrees with the Lenders that:
		

		
			
		

		 

		

			 

		

		

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		SECTION 5.01.  Financial Statements and Other Information.  The Parent or the Borrower, as applicable, will furnish to the Administrative Agent and each Lender:
		

		
			(a) within ninety (90) days after the end of each fiscal year of the Parent (or, if earlier, by the date that the Annual Report on Form 10-K of the Parent for such fiscal year would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form), its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Pricewaterhouse Coopers LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;
		

		
			(b) within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the Parent (or, if earlier, by the date that the Quarterly Report on Form 10‐Q of the Parent for such fiscal quarter would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form), its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
		

		
			(c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Parent or the Borrower, as applicable, (i) certifying as to whether a Default has occurred and is continuing and, if so, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.07 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;
		

		
			(d) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by a Loan Party with the SEC, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with any national securities exchange, or distributed by the Parent to its shareholders generally, as the case may be; and
		

		
			(e) promptly following any request therefor, (x) such other information regarding the operations, business affairs and financial condition of the Parent or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender (through the Administrative Agent) may reasonably request and (y) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable 
		

		

		

		 

		

			 

		

		

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			“know your customer” and anti-money laundering rules and regulations, including the Patriot Act and the Beneficial Ownership Regulation.
		

		
			Documents required to be delivered pursuant to clauses (a) and (b) of this Section 5.01 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which such documents are filed for public availability on the SEC’s Electronic Data Gathering and Retrieval System; provided that the Parent or the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the filing of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in every instance the Parent or the Borrower, as applicable, shall be required to provide the compliance certificates required by clause (c) of this Section 5.01 to the Administrative Agent by paper copy, telecopy or e-mailed .pdf.
		

		
			SECTION 5.02.  Notices of Material Events.  The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:
		

		
			(a) the occurrence of any Default;
		

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

		
			(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; and
		

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

		
			Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
		

		
			SECTION 5.03.  Existence; Conduct of Business.  The Parent  and Borrower will, and will cause each Subsidiary Guarantor to, do or cause to be done all things necessary to (a) preserve, renew and keep in full force and effect (i) its legal existence and (ii) the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations and intellectual property rights material to the conduct of its business, and (b) maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except, in the case of the proceeding clauses (a)(ii) and (b), to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.
		

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

		
			
		

		 

		

			 

		

		

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		SECTION 5.05.  Maintenance of Properties; Insurance.  The Parent will, and will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted and casualty or condemnation excepted, except if the failure to do so could not reasonably be expected to result in a Material Adverse Effect, and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.
		

		
			SECTION 5.06.  Books and Records; Inspection Rights.  The Parent will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities.  The Parent will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent, upon reasonable prior notice, and (so long as no Event of Default is continuing) not more than two (2) times in any twelve (12) month period, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times as reasonably requested, provided, any such representative shall be subject to the confidentiality obligations set forth in Section 9.12.  The Administrative Agent and the Lenders shall give the Parent the opportunity to participate in any discussions with the Parent’s independent accountants.  The Parent acknowledges that the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain reports pertaining to the Parent and its Subsidiaries’ assets for internal use by the Administrative Agent and the Lenders, provided, that any such reports shall be deemed to be “Information” and subject to Section 9.12 hereof.
		

		
			SECTION 5.07.  Compliance with Laws and Material Contractual Obligations.  The Parent will, and will cause each of its Subsidiaries to, (i) comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (including without limitation Environmental Laws) and (ii) perform in all material respects its obligations under material agreements to which it is a party, in each case except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.    Each of the Parent and the Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, its Subsidiaries and their respective directors, officers, employees and agents with  Anti-Corruption Laws and applicable Sanctions.
		

		
			SECTION 5.08.  Use of Proceeds.  The proceeds of the Loans will be used only to finance the working capital needs, and for general corporate purposes, of the Parent and its Subsidiaries, including the Borrower, in the ordinary course of business.  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Board, including Regulations T, U and X.    The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries shall not use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permitted for a Person to comply with Sanctions, or (iii) in any manner that would result in the violation of  any Sanctions applicable to any party hereto.
		

		
			SECTION 5.09.  Subsidiary Guaranty.  
		

		
			(a) As promptly as possible but in any event within thirty (30) days (or such later date as may be agreed upon by the Administrative Agent) after any Person becomes a Subsidiary of the Parent or any Subsidiary of the Parent qualifies independently as, or is designated by the Parent or the Administrative 
		

		 

		

			 

		

		

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			Agent as, a Subsidiary Guarantor pursuant to the definition of “Material Domestic Subsidiary”, the Parent shall provide the Administrative Agent with written notice thereof setting forth information in reasonable detail describing the material assets of such Person and shall cause each such Subsidiary of the Parent which also qualifies as a Material Domestic Subsidiary (but excluding Excluded Subsidiaries) to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary of the Parent agrees to be bound by the terms and provisions thereof, such Subsidiary Guaranty to be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
		

		
			(b) Notwithstanding anything contained in Section 5.09(a) to the contrary and without limiting Section 5.09(a), after any Person becomes a direct or indirect subsidiary of the Borrower, the Parent shall promptly provide the Administrative Agent with written notice thereof and shall cause each such subsidiary of the Borrower to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty (in the form contemplated thereby) pursuant to which such subsidiary of the Borrower agrees to be bound by the terms and provisions thereof, such Subsidiary Guaranty to be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
		

		
			(c) If and for so long as any of the Permitted Financing Documents are in full force and effect and any Subsidiary of the Parent is or becomes a guarantor of the indebtedness of the borrower thereunder or otherwise a “Subsidiary Guarantor” (as defined in the applicable Permitted Financing Document), then the Parent shall promptly provide the Administrative Agent with written notice thereof and shall cause such Subsidiary to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty (in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof, such Subsidiary Guaranty to be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
		

		
			SECTION 5.10.  Primary Operating Accounts.  The Borrower shall use commercially reasonable efforts to establish, and once so established, at all times thereafter maintain, all of its and the Borrower Subsidiaries’ respective Banking Services and primary depository accounts with PNC Bank, National Association but only to the extent and for so long as the Banking Services provided by PNC Bank, National Association adequately meet the business and operational requirements of the Borrower and the Borrower Subsidiaries.
		

		
			Article VI
Negative Covenants
		

		
			Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or terminated, in each case, without any pending draw, and all LC Disbursements shall have been reimbursed, each of the Parent and the Borrower covenants and agrees with the Lenders that:
		

		
			SECTION 6.01.  Indebtedness.  The Parent will not, and will not permit any Subsidiary, including the Borrower, to, create, incur, assume or permit to exist any Indebtedness, except:
		

		
			(a) the Obligations;
		

		

		

		 

		

			 

		

		

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		(b) (i) with respect to the Parent and its Subsidiaries (other than the Borrower Parties), Indebtedness of the Parent and such Subsidiaries existing on the date hereof and, to the extent any such Indebtedness is in excess of $5,000,000, set forth in Part A of Schedule 6.01 and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof and (ii) with respect to the Borrower Parties, Indebtedness of the Borrower Parties  existing on the date hereof in excess of $1,000,000 and set forth in Part B of Schedule 6.01 and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof;
		

		
			(c) Indebtedness of the Parent to any Subsidiary and of any Subsidiary to the Parent or any other Subsidiary; provided that (i) any Indebtedness of any Borrower Party to the Parent or any Subsidiary shall be unsecured; (ii) no Borrower Party shall make any loans or advances to any Subsidiary that is not a Loan Party; and (iii) with respect to any Indebtedness of any Borrower Party that is a Loan Party to any Subsidiary that is not a Loan Party (each such Indebtedness, a “Specified Indebtedness”), such Specified Indebtedness shall be subordinate and junior in right of payment to all Obligations; provided, however, that, in the case of this clause (iii), (A) if and so long as no Default or Event of Default has occurred and is continuing, such Borrower Party may make payments to the applicable payee in respect of such Specified Indebtedness and, (B) if a Default or Event of Default occurs and is continuing, then no payment or distribution of any kind or character shall be made by or on behalf of such Borrower Party with respect to such Specified Indebtedness (and, in the case of this clause (B), the Parent shall not permit any such payment or distribution to be so made), and (C) if any payment or distribution of any character, whether in cash, securities or other property, in respect of such Specified Indebtedness shall be received by any payee in violation of the foregoing in this clause (c)(iii) before all the Obligations shall have been paid in full in cash and the Commitment has expired or terminated, such payment or distribution shall be held (and the Parent shall cause such payee to hold the same) in trust for the benefit of, and shall be paid over or delivered (and the Parent shall cause such payee to pay over or deliver) to, the Administrative Agent for the benefit of the Credit Parties, to be applied towards the payment of the Obligations in full in cash;
		

		
			(d)  (i) Guarantees by the Parent of Indebtedness of any Subsidiary and by any Subsidiary (other than the Borrower Parties) of Indebtedness of the Parent or any other Subsidiary (including any Borrower Party); (ii) Guarantees by the Parent or any Subsidiary of Indebtedness of any other Person;  provided that Guarantees shall be permitted to be incurred pursuant to this subclause (ii) only if at the time such Guarantee is incurred the aggregate principal amount of Indebtedness guaranteed pursuant to this subclause (ii) at such time (including such newly guaranteed Indebtedness) would not exceed $15,000,000; and provided,  further, that, in the case of any of the Borrower Parties, (A) the aggregate principal amount of Indebtedness permitted to be guaranteed by the Borrower Parties pursuant to  this subclause (ii) shall not exceed $7,500,000 and (B) none of the Borrower Parties shall incur, assume or be liable or obligated for any Indebtedness arising under the Permitted Financing Documents; (iii) unsecured Guarantees by any Borrower Party of Indebtedness of any Borrower Subsidiary; and (iv) Guarantees by the Borrower Parties under the Permitted Note Purchase and Guarantee Documents; provided that the aggregate principal amount of Indebtedness so guaranteed by the Borrower Parties under the Permitted Note Purchase and Guarantee Documents does not exceed $960,000,000 at any time outstanding; 
		

		
			(e) Indebtedness of the Parent or any Subsidiary incurred to finance the acquisition, capital lease, construction, repair, maintenance, replacement, installation or improvement of any fixed or capital assets, including Capital Lease Obligations and any Indebtedness assumed in connection
		

		 

		

			 

		

		

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			 with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof; provided that (i) such Indebtedness is incurred prior to or within two hundred seventy (270) days after such acquisition or lease or the completion of such construction, repair, maintenance, replacement, installation or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $100,000,000 at any time outstanding; and provided,  further, that, in the case of any of the Borrower Parties, (A) the aggregate principal amount of Indebtedness permitted to be incurred by the Borrower Parties pursuant to this clause (e) shall not exceed $10,000,000 at any time outstanding and (B) such Indebtedness so incurred by the Borrower Parties is solely to finance the acquisition, capital lease, construction, repair, maintenance, replacement, installation or improvement of any fixed or capital assets of any of the Borrower Parties, including Capital Lease Obligations of any of the Borrower Parties and any Indebtedness assumed by any of the Borrower Parties in connection with the acquisition by any of the Borrower Parties of any such assets or secured by a Lien on any such assets prior to the acquisition thereof; 
		

		
			(f) (i) with respect to the Parent and any Subsidiary (other than the Borrower Parties), Indebtedness of the Parent or such Subsidiary in respect of obligations under repurchase agreements arising out of such repurchase transaction; and (ii) with respect to any of the Borrower Parties, Indebtedness of any of the Borrower Parties in respect of obligations under repurchase agreements arising out of such repurchase transaction; provided, however, that, in the case of this subclause (ii), (A) such repurchase agreements are entered into by one or more of the Borrower Parties and are for the direct benefit of one or more of the Borrower Parties, and (B) the aggregate principal amount of Indebtedness of the Borrower Parties permitted by this subclause (ii) in respect of their obligations under such repurchase agreements shall not exceed $7,500,000 at any time outstanding;
		

		
			(g) (i) Indebtedness of the Parent or any Subsidiary (other than any Borrower Party) in respect of letters of credit (including trade letters of credit), bank guarantees or similar instruments issued or incurred in the ordinary course of business, including in respect or card obligations or any overdraft and related liabilities arising from treasury, depositary, cash management services, Banking Services or any automated clearing house transfers, workers compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or other Indebtedness with respect to reimbursement-type obligations regarding workers compensation claims; and (ii) Indebtedness of any Borrower Party in respect of letters of credit (including trade letters of credit), bank guarantees or similar instruments issued or incurred in the ordinary course of business, including in respect or card obligations or any overdraft and related liabilities arising from treasury, depositary, cash management services, Banking Services or any automated clearing house transfers, workers compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or other Indebtedness with respect to reimbursement-type obligations regarding workers compensation claims; provided, however, that any of foregoing in this subclause (ii) are issued, incurred or entered into solely in connection with, or are for the direct benefit of, the Borrower Parties;
		

		
			(h) with respect to the Parent and any Subsidiary (other than the Borrower Parties), Indebtedness of the Parent or such Subsidiary secured by a Lien on any asset of the Parent or such Subsidiary; provided that the aggregate outstanding principal amount of Indebtedness permitted by this clause (h) shall not in the aggregate exceed $250,000,000 at any time; 
		

		
			(i) (A) with respect to the Parent and any Subsidiary (other than the Borrower Parties), unsecured Indebtedness of the Parent and such Subsidiary  (including unsecured Indebtedness of 
		

		 

		

			 

		

		

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			the Parent and such Subsidiary arising under the Permitted Financing Documents and the Permitted Note Purchase Guarantee Documents);  and (B) with respect to any of the Borrower Parties, unsecured Indebtedness of any of the Borrower Parties;  provided,  however,  that, in the case of this subclause (B), (x) the aggregate principal amount of Indebtedness of the Borrower Parties permitted by this subclause (B) shall not exceed $7,500,000 at any time outstanding and (y) none of the Borrower Parties shall incur, assume or be liable or obligated for any Indebtedness arising under the Permitted Financing Documents;
		

		
			(j) Indebtedness under Swap Agreements permitted by Section 6.04;
		

		
			(k) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), Indebtedness of the Parent or such Subsidiary in respect of bid, performance, surety, stay, customs, appeal or replevin bonds or performance or completion guarantees and similar obligations issued or incurred in the ordinary course of business, including guarantees or obligations of any Subsidiary with respect to letters of credit, bank guarantees or similar instruments supporting such obligation, in each case, not in connection with Indebtedness for borrowed money; and (ii) with respect to any of the Borrower Parties, Indebtedness of any Borrower Party in respect of bid, performance, surety, stay, customs, appeal or replevin bonds or performance or completion guarantees and similar obligations issued or incurred in the ordinary course of business, including guarantees or obligations of any Borrower Party with respect to letters of credit, bank guarantees or similar instruments supporting such obligation, in each case, not in connection with Indebtedness for borrowed money;  
		

		
			(l) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), Indebtedness of the Parent or such Subsidiary consisting of bona fide purchase price adjustments, earn-outs, indemnification obligations, obligations under deferred compensation or similar arrangements and similar items incurred in connection with acquisitions and asset sales permitted by this Agreement; and (ii) with respect to any of the Borrower Parties, Indebtedness of any Borrower Party consisting of bona fide purchase price adjustments, earn-outs, indemnification obligations, obligations under deferred compensation or similar arrangements and similar items incurred in connection with acquisitions and asset sales by any of such Borrower Parties permitted by this Agreement;
		

		
			(m) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), cash management obligations, obligations in respect of Banking Services and under Banking Services Agreements and other Indebtedness in respect of card obligations, netting services, overdraft protections, cash management services, Banking Services and similar arrangements, in each case in the ordinary course of business; and (ii) with respect to any of the Borrower Parties, cash management obligations of any Borrower Party, obligations of any Borrower Party in respect of Banking Services and under Banking Services Agreements and other Indebtedness of any Borrower Party in respect of card obligations, netting services, overdraft protections, cash management services, Banking Services and similar arrangements, in each case in the ordinary course of business;
		

		
			(n) Indebtedness of a Person assumed in connection with an acquisition of such Person by the Parent or any Subsidiary and not created in contemplation thereof and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof, in an aggregate principal amount not to exceed $150,000,000 at any time outstanding; provided, however, that, in the case of any of the Borrower Parties, (A) the aggregate principal amount of all such Indebtedness permitted to be assumed by 
		

		 

		

			 

		

		

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			the Borrower Parties pursuant to this clause (n) shall not exceed $15,000,000 at any time outstanding and (B) such Indebtedness so assumed by the Borrower Parties is assumed in connection with acquisitions consummated by one or more of the Borrower Parties and in which the Person so acquired becomes a Subsidiary of any of the Borrower Parties; 
		

		
			(o) Indebtedness of the Parent or any Subsidiary in the form of Guarantees of Indebtedness of joint ventures; provided that Indebtedness shall be permitted to be incurred pursuant to this clause (o) only if at the time such Indebtedness is incurred the aggregate principal amount of Indebtedness outstanding pursuant to this clause (o) at such time (including such Indebtedness) would not exceed $50,000,000; and, provided,  further, that, in the case of any of the Borrower Parties, (A) the aggregate principal amount of all such Indebtedness permitted to be incurred by the Borrower Parties pursuant to this clause (o) shall not exceed $7,500,000 at any time outstanding, (B) the Indebtedness so incurred by the Borrower Parties are with respect to Indebtedness of joint ventures of which one or more of the Borrower Parties is a partner or member and (C) none of such joint ventures is a Subsidiary;
		

		
			(p) Indebtedness in respect of judgments, decrees, attachments or awards not constituting an Event of Default under Section 7.01(k); provided,  however, that, in the case of the Borrower Parties only, solely for purposes of this clause (p), notwithstanding the Dollar amount stated in such Section 7.01(k), such Dollar amount shall be deemed to be $7,500,000; and
		

		
			(q) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), Indebtedness of the Parent or such Subsidiary in the form of reimbursements owed to its officers, directors, consultants and employees; and (ii) with respect to any of the Borrower Parties, Indebtedness of any Borrower Party in the form of reimbursements owed to its officers, directors, consultants and employees. 
		

		
			Each category of Indebtedness (other than Indebtedness under the Loan Documents which shall at all times be deemed to be outstanding pursuant to clause (a)) set forth above shall be deemed to be cumulative and for purposes of determining compliance with this Section 6.01, in the event that an item of Indebtedness (or any portion thereof) at any time meets the criteria of more than one of the categories described above, the Parent and the Borrower, in their sole discretion, may classify or reclassify (or later divide, classify or reclassify) such item of Indebtedness (or any portion thereof) and shall only be required to include the amount and type of such Indebtedness in one of the above clauses.  
		

		
			SECTION 6.02.  Liens.  The Parent will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:
		

		
			(a) Permitted Encumbrances;
		

		
			(b) (i) any Lien on any property or asset of the Parent or any Subsidiary (other than the Borrower Parties) existing on the date hereof and, to the extent securing Indebtedness in excess of $5,000,000, as set forth in Part A of Schedule 6.02, and (ii)  any Lien on any property or asset of any of the Borrower Parties existing on the date hereof and, to the extent securing Indebtedness in excess of $1,000,000, as set forth in Part B of Schedule 6.02;  provided that, in each case with respect to subclauses (i) and (ii) above in this clause (b), (x) such Lien shall not apply to any other property or asset of the Parent or any Subsidiary other than (A) improvements and after-acquired Property that is affixed or incorporated into the Property previously covered by such Lien or 
		

		 

		

			 

		

		

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			financed by Indebtedness permitted under Section 6.01, and (B) proceeds and products thereof, and (y) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
		

		
			(c) any Lien existing on any property or asset prior to the acquisition thereof by the Parent or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Parent or any Subsidiary (other than the proceeds or products thereof and other than improvements and after-acquired property that is affixed or incorporated into the Property covered by such Lien) and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
		

		
			(d) Liens on fixed or capital assets acquired, leased, constructed, repaired, maintained, replaced, installed or improved by the Parent or any Subsidiary including purchase money Liens on real property and equipment; provided that (i) such security interests secure Indebtedness permitted by clause (e) of Section 6.01 and include any extensions, renewals and replacements of such Indebtedness that do not increase the outstanding principal amount thereof, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within two hundred seventy (270) days after such acquisition or lease or the completion of such construction, repair, maintenance, replacement, installation or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, leasing, constructing, repairing, maintaining, replacing, installing or improving such fixed or capital assets and (iv) such security interests shall not apply to any other property or assets of the Parent or any Subsidiary, except for additions or improvements to such property, property financed by such Indebtedness and the proceeds and products thereof;
		

		
			(e) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties) Liens on financial assets or securities of the Parent or such Subsidiary that are the subject of repurchase agreements arising out of such repurchase transaction; and (ii) with respect to any of the Borrower Parties, Liens on financial assets or securities of any of the Borrower Parties that are the subject of repurchase agreements entered into by any of the Borrower Parties and arising out of such repurchase transaction; provided that, in the case of this clause (ii), the Indebtedness of the Borrower Parties in respect of the obligations under such repurchase agreements are expressly permitted by Section 6.01(f)(ii);
		

		
			(f) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), Liens in favor of a custodian on financial assets held in securities accounts maintained with such custodian; and (ii) with respect to any of the Borrower Parties, Liens in favor of a custodian on financial assets held in securities accounts of any Borrower Party maintained with such custodian; provided that, in the case of this subclause (ii), such Liens do not secure any Indebtedness; 
		

		
			(g) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), rights of setoff and similar arrangements and Liens in respect of cash management obligations, obligations under Banking Services Agreements and in respect of Banking Services and in favor of depository and securities intermediaries to secure obligations owed in respect of credit card obligations or any overdraft and related liabilities arising from treasury, depository, cash management services and Banking Services or any automated clearing house transfers of funds and fees and similar accounts related to bank accounts or securities accounts (including Liens securing 
		

		 

		

			 

		

		

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			letters of credit, bank guarantees or similar instruments supporting any of the foregoing); and (ii) with respect to any of the Borrower Parties, rights of setoff and similar arrangements and Liens in respect of cash management obligations of any Borrower Party, obligations of any Borrower Party under Banking Services Agreements to which such Borrower Party is a party and in respect of Banking Services to any Borrower Party and in favor of depository and securities intermediaries to secure obligations owed in respect of credit card obligations or any overdraft and related liabilities arising from treasury, depository, cash management services and Banking Services or any automated clearing house transfers of funds and fees and similar accounts related to bank accounts or securities accounts of any Borrower Party (including Liens securing letters of credit, bank guarantees or similar instruments supporting any of the foregoing); 
		

		
			(h) leases, licenses, subleases or sublicenses granted to others in the ordinary course of business which do not (i) interfere in any material respect with the business of the Parent or any Subsidiary or (ii) secure any Indebtedness; 
		

		
			(i) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection and (ii) attaching to commodity trading accounts or other commodities brokerage accounts incurred in the ordinary course of business, including Liens encumbering customary initial deposits and margin deposits; 
		

		
			(j) ground leases in respect of real property on which facilities owned or leased by the Parent or any of its Subsidiaries are located and other Liens affecting the interest of any landlord (and any underlying landlord) of any real property leased by the Parent or any Subsidiary; 
		

		
			(k) (i) Liens on any property or assets of the Parent or any Subsidiary (other than the Borrower Subsidiaries) in favor of the Parent or any Subsidiary; and (ii) Liens on any property or assets of any Borrower Subsidiary in favor of any Borrower Party;
		

		
			(l) Liens arising from Uniform Commercial Code financing statement filings regarding operating leases or capital leases entered into by the Parent and its Subsidiaries in the ordinary course of business;
		

		
			(m) any restriction or encumbrance with respect to the pledge or transfer of the Equity Interests of a joint venture;
		

		
			(n) any purchase option or similar right on securities held by the Parent or any of its Subsidiaries in any joint venture which option or similar right is granted to the third party who holds securities in any joint venture; 
		

		
			(o) with respect to the Parent or any Subsidiary (other than the Borrower Parties), Liens on assets of the Parent and such Subsidiaries not otherwise permitted above so long as the aggregate principal amount of the Indebtedness and other obligations subject to such Liens does not at any time exceed $250,000,000; and
		

		
			(p) cash collateralization of the LC Exposure in accordance with, and pursuant to, the terms of this Agreement.
		

		
			SECTION 6.03.  Fundamental Changes and Asset Sales.  (a) The Parent and Borrower will not, and will not permit any Subsidiary Guarantor to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of 
		

		 

		

			 

		

		

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			(in one transaction or in a series of transactions) all or substantially all of its assets (including pursuant to a Sale and Leaseback Transaction), or all or substantially all of the Equity Interests of the Borrower or any Subsidiary Guarantor, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing:
		

		
			(i) any Person (other than the Borrower Parties or any Subsidiary) may merge into the Parent or any Subsidiary (other than the Borrower Parties) in a transaction in which the Parent or such Subsidiary (as applicable) is the surviving entity, or in which the surviving entity (so long as it is not the Parent or any of the Borrower Parties) becomes a Subsidiary (but not a Borrower Subsidiary) (provided that any merger involving the Parent or any Borrower Party, as applicable, must result in the Parent or such  Borrower Party, respectively, as the surviving entity);
		

		
			(ii) (A)  any Subsidiary (other than the Borrower Parties) may merge into a Loan Party (other than any Borrower Party that is a Loan Party) in a transaction in which the surviving entity is such Loan Party (provided that any such merger involving the Parent must result in the Parent as the surviving entity);(B)  any Subsidiary that is not a Loan Party may merge into any other Subsidiary that is not a Loan Party;  (C)  any Borrower Subsidiary may merge into the Borrower in a transaction in which the Borrower is the surviving entity; and (D) any Borrower Subsidiary may merge into any other Borrower Subsidiary that is a Subsidiary Guarantor in a transaction in which a Borrower Subsidiary that is a Subsidiary Guarantor is the surviving entity;
		

		
			(iii) (x) any Subsidiary may sell, transfer, lease or otherwise dispose of all or any portion of its assets to a Loan Party; provided,  however, that, in no event shall any Borrower Party transfer, lease or otherwise dispose of all, or substantially all, or any material portion of its assets to any Loan Party;
		

		
			(iv) any Subsidiary (other than the Borrower Parties) may liquidate or dissolve if the Parent determines in good faith that such liquidation or dissolution is in the best interests of the Parent and is not materially disadvantageous to the Lenders; and
		

		
			(v) any Borrower Subsidiary may liquidate or dissolve if (i) the Parent determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders, and (ii) all or substantially all of the assets or properties of such Borrower Subsidiary shall have been transferred or otherwise conveyed to the Borrower or a wholly-owned Borrower Subsidiary that is a Subsidiary Guarantor.
		

		
			(b) The Parent will not, and will not permit any other Loan Party to, engage to any material extent in any business other than businesses of the type conducted by the Parent and its Subsidiaries on the date of execution of this Agreement and businesses reasonably incidental, related or complimentary thereto or a reasonable extension or development thereof.
		

		
			SECTION 6.04.  Swap Agreements.  The Parent will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a) with respect to the Parent and any Subsidiary (other than the Borrower Parties), (i) Swap Agreements entered into to hedge or mitigate risks to which the Parent or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Parent or any of its Subsidiaries), and (ii) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Parent or any Subsidiary, and (b) with respect to any Borrower Party, (i) Swap Agreements entered into to hedge or mitigate risks to which any Borrower Party has actual exposure (other than those in respect of Equity Interests of any 
		

		 

		

			 

		

		

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			Borrower Party), and (ii) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of any Borrower Party.
		

		
			SECTION 6.05.  Transactions with Affiliates.  The Parent will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Parent or such Subsidiary (in the good faith determination of the Parent or such Subsidiary) than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Parent and its wholly owned Subsidiaries not involving any other Affiliate, (c) transactions in respect of property, assets or services with an aggregate value not exceeding $25,000,000 in any calendar year, (d) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), the payment of customary compensation and benefits and reimbursements of out-of-pocket costs to, and the provision of indemnity on behalf of, directors, officers, consultants and employees of the Parent or such Subsidiary and employment, incentive, benefit, consulting and severance arrangements entered into in the ordinary course of business with officers, directors, consultants and employees of the Parent or such Subsidiaries; provided that during any period that the Parent is a public company regulated by, and required to file regular periodic reports with, the SEC, any compensation paid to any director or executive officer of the Parent during such period will be deemed to be reasonable for purposes of this clause (d), and (ii) with respect to any of the Borrower Parties, the payment of customary compensation and benefits and reimbursements of out-of-pocket costs to, and the provision of indemnity on behalf of, directors, officers, consultants and employees of any Borrower Party and employment, incentive, benefit, consulting and severance arrangements entered into in the ordinary course of business with officers, directors, consultants and employees of any Borrower Party, (e) with respect to the Parent or any Subsidiary (other than the Borrower Parties), transactions with joint ventures that are Affiliates solely as a result of the Parent’s or a Subsidiary’s Control over such joint venture, (f) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), transactions with landlords, customers, clients, suppliers or joint venture partners, in each case in the ordinary course of business and (ii) with respect to any of the Borrower Parties, transactions with landlords, customers, clients, suppliers or joint venture partners, in each case in the ordinary course of business, and (g) (i) with respect to the Parent or any Subsidiary (other than the Borrower Parties), loans and advances to officers, directors, consultants and employees in the ordinary course of business and (ii) with respect to any of the Borrower Parties, loans and advances to any of the Borrower Parties’ officers, directors, consultants and employees in the ordinary course of business.
		

		
			SECTION 6.06.  [Intentionally Omitted].  
		

		
			SECTION 6.07.  Financial Covenants.  
		

		
			(a)  Maximum Consolidated Leverage Ratio.  The Parent will not permit its Consolidated Leverage Ratio at the end of any fiscal quarter ending on and after February 29, 2020 to exceed 3.50 to 1.00; provided that, upon notice by the Parent to the Administrative Agent and the Lenders, as of the last day of each of the four consecutive fiscal quarters immediately following a Material Acquisition, such ratio may be greater than 3.50 to 1.00, but in no event greater than 4.00 to 1.00 so long as (i) the Parent shall provide notice in writing to the Administrative Agent (for distribution to the Lenders) of such increase and a transaction description of such acquisition (including the name of the person or summary description of the assets being acquired and the approximate purchase price) and (B) the Parent is in compliance on a pro forma basis with the maximum Consolidated Leverage Ratio of 4.00 to 1.00 on the closing date of such acquisition immediately after giving effect (including giving effect on a pro forma basis) to such acquisition; provided further that in no event may the Consolidated Leverage Ratio be greater than 3.50 to 
		

		 

		

			 

		

		

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			1.00 following a Material Acquisition on more than three separate occasions during the term of this Agreement.  The Consolidated Leverage Ratio will be calculated at the end of each fiscal quarter, using the results of the Reference Period ending with that fiscal quarter, it being understood that to the extent any Material Acquisition or Material Disposition shall have occurred during such period, the Consolidated Leverage Ratio shall be calculated as if such acquisition or disposition occurred at the beginning of such period.
		

		
			(b) Minimum Consolidated Interest Coverage Ratio.  The Parent will not permit its Consolidated Interest Coverage Ratio at the end of any fiscal quarter ending on and after February 29, 2020 to be less than 2.00 to 1.00.  The Consolidated Interest Coverage Ratio will be calculated at the end of each fiscal quarter, using the results of the Reference Period ending with that fiscal quarter.
		

		
			Article VII
		

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

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

		
			(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Section 7.01) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) Business Days;
		

		
			(c) any representation or warranty made or deemed made by or on behalf of the Parent or any Subsidiary in or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;
		

		
			(d) the Parent or the Borrower, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), 5.03(a)(i) (with respect to the Parent’s or the Borrower’s existence), 5.08, 5.09 or 5.10 or in Article VI;
		

		
			(e) the Parent, the Borrower or any Subsidiary Guarantor, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 7.01(a), (b) or (d) above) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender);
		

		
			(f) (i) the Parent or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable, which is not cured within any applicable grace period therefor; or (ii) the Borrower or any Borrower Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Borrower Material Indebtedness, when and as the same shall become due and payable, which is not cured within any applicable grace period therefor;
		

		 

		

			 

		

		

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			(g) (i) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g)(i) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; or (ii) any event or condition occurs that results in any Borrower Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Borrower Material Indebtedness or any trustee or agent on its or their behalf to cause any Borrower Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g)(ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;
		

		
			(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or its debts, or of a substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Loan Party or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;
		

		
			(i) a Loan Party shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in Section 7.01(h), (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Loan Party or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;
		

		
			(j) a Loan Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
		

		
			(k) (i) (A) one or more judgments for the payment of money in an aggregate amount in excess of $100,000,000 (to the extent not covered by an unaffiliated insurer that has not denied coverage) shall be rendered against the Parent, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of forty-five (45) consecutive days (or such longer period, not to exceed sixty (60) consecutive days, as may be available in the relevant jurisdiction to seek an appeal in respect of such judgment) during which execution shall not be effectively stayed, or (B) any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Parent or any Subsidiary to enforce any such judgment described in the preceding clause (k)(i)(A), or (ii) (A) one or more judgments for the payment of money in an aggregate amount in excess of $7,500,000 (to the extent not covered by an unaffiliated insurer that has not denied coverage) shall be rendered against the Borrower, any Borrower Subsidiary or any combination thereof and the same shall remain undischarged for a period of forty-five (45) consecutive days (or such longer period, not to exceed sixty (60) consecutive days, as may be available in the relevant jurisdiction to seek an appeal in respect of such judgment) during which execution shall not be effectively stayed, or (B) any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Parent or any Subsidiary to enforce any such judgment described in the preceding clause (k)(ii)(A);
		

		

		

		 

		

			 

		

		

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		(l) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;
		

		
			(m) a Change in Control shall occur;
		

		
			(n) the occurrence of any “default”, as defined in any Loan Document (other than this Agreement) or the breach of any of the material terms or provisions of any Loan Document (other than this Agreement), which default or breach continues beyond any period of grace therein provided; 
		

		
			(o) any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (or the Parent or any Subsidiary shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms); or
		

		
			(p) so long as PNC Bank, National Association and its Affiliates collectively hold 100% of the Commitments, any “event of default” (which is not cured within any applicable grace period therefor) shall occur in respect of any Indebtedness of any Loan Party to PNC Bank, National Association or any of its Affiliates
		

		
			SECTION 7.02.  Remedies Upon an Event of Default.    If an Event of Default occurs (other than an event with respect to the Parent or the Borrower described in Section 7.01(h) or 7.01(i) of), and at any time thereafter during the continuance of such Event of Default, the Administrative Agent may with the consent of the Required Lenders, and shall at the request of the Required Lenders, by notice to the Borrower, take either or both of the following actions, at the same or different times:  
		

		
			(a) terminate the Commitments (and the Letter of Credit Commitments), and thereupon the Commitments (and the Letter of Credit Commitments) shall terminate immediately;
		

		
			(b) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Borrower accrued hereunder and under any other Loan Document, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower;
		

		
			(c) require that the Borrower provide cash collateral as required in Section 2.06(j); and 
		

		
			(d) exercise on behalf of itself, the Lenders and the Issuing Banks all rights and remedies available to it, the Lenders and the Issuing Banks under the Loan Documents and applicable law.
		

		
			If an Event of Default described in Section 7.01(h) or 7.01(i) occurs with respect to the Parent or the Borrower, the Commitments (and the Letter of Credit Commitments) shall automatically terminate and the principal of the Loans then outstanding and the cash collateral for the LC Exposure, together with accrued interest thereon and all fees and other Obligations accrued hereunder and under any other Loan Document, shall automatically become due and payable, and the obligation of the Borrower to cash collateralize the LC Exposure as provided in clause (c) above shall automatically become effective, in each case, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.  
		

		 

		

			 

		

		

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			Article VIII
The Administrative Agent
		

		
			SECTION 8.01.  Authorization and Action.
		

		
			(a) Each Lender and each Issuing Bank hereby irrevocably appoints the entity named as Administrative Agent in the heading of this Agreement and its successors and assigns to serve as the administrative agent and collateral agent under the Loan Documents and each Lender and each Issuing Bank authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental thereto.  Without limiting the foregoing, each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.
		

		
			(b) As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender and each Issuing Bank; provided, however, that the Administrative Agent shall not be required to take any action that (i) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the Lenders and the Issuing Bank with respect to such action or (ii) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided,  further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided. Except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the Borrower, any Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any capacity. Nothing in this Agreement shall require the Administrative Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
		

		
			(c) In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf of the Lenders and the Issuing Banks (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature. Without limiting the generality of the foregoing:
		

		
			(i) the Administrative Agent does not assume and shall not be deemed to have assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for any Lender, any Issuing Bank or any other holder of Obligations other than as expressly set forth herein 
		

		 

		

			 

		

		

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		and in the other Loan Documents, regardless of whether a Default or an Event of Default has occurred and is continuing (and it is understood and agreed that the use of the term “agent” (or any similar term) herein or in any other Loan Document with reference to the Administrative Agent is not intended to connote any fiduciary duty or other implied (or express) obligations arising under agency doctrine of any applicable law, and that such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties); additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and/or the transactions contemplated hereby; and
		

		
			(ii) nothing in this Agreement or any Loan Document shall require the Administrative Agent to account to any Lender for any sum or the profit element of any sum received by the Administrative Agent for its own account.
		

		
			(d) The Administrative Agent may perform any of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any of their respective duties and exercise their respective rights and powers through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities pursuant to this Agreement. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.
		

		
			(e) [Intentionally Omitted].
		

		
			(f) In case of the pendency of any proceeding with respect to any Loan Party under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the Administrative Agent (irrespective of whether the principal of any Loan or any reimbursement obligation in respect of any LC Disbursement 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 any Loan Party) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
		

		
			(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Disbursements 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, the Issuing Bank and the Administrative Agent (including any claim under Sections 2.12, 2.13, 2.15, 2.17 and 9.03) allowed in such judicial proceeding; and
		

		
			(ii) 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 proceeding is hereby authorized by each Lender, each Issuing Bank and each other holder of Obligations 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, the Issuing Banks or the other holders of Obligations, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including under Section 9.03). Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept 
		

		 

		

			 

		

		

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			or adopt on behalf of any Lender or any Issuing Bank any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or any Issuing Bank or to authorize the Administrative Agent to vote in respect of the claim of any Lender or any Issuing Bank in any such proceeding.
		

		
			(g) The provisions of this Article VIII are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and, except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions set forth in this Article VIII, none of the Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a third party beneficiary under any such provisions. Each holder of the Obligations, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Guarantees of the Obligations provided under the Loan Documents, to have agreed to the provisions of this Article VIII.
		

		
			SECTION 8.02.  Administrative Agent’s Reliance, Indemnification, Etc.
		

		
			(a)Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder.
		

		
			(b)The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof (stating that it is a “notice of default”) is given to the Administrative Agent by the Borrower, a Lender or an Issuing Bank, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence of any Default, (iv) the sufficiency, validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items (which on their face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the Administrative Agent. Notwithstanding anything herein to the contrary, the Administrative Agent shall not be liable for, or be responsible for any claim, liability, loss, cost or expense suffered by the Borrower, any Subsidiary, any Lender or any Issuing Bank as a result of, any determination of the Credit Exposure, any of the component amounts thereof or any portion thereof attributable to each Lender or any Issuing Bank or any Dollar Amount thereof.
		

		
			(c)Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with 
		

		 

		

			 

		

		

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			Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with legal counsel (including counsel to the Borrower), independent public accountants and other experts selected by it, and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender or any Issuing Bank and shall not be responsible to any Lender or any Issuing Bank for any statements, warranties or representations made by or on behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) in determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Bank, may presume that such condition is satisfactory to such Lender or Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or Issuing Bank sufficiently in advance of the making of such Loan or the issuance of such Letter of Credit and (vi) shall be entitled to rely on, and shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing may be a fax, any electronic message, Internet or intranet website posting or other distribution) or any statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set forth in the Loan Documents for being the maker thereof).
		

		
			SECTION 8.03.  Posting of Communications.
		

		
			(a)The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders and the Issuing Banks by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).
		

		
			(b)Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, the Issuing Banks and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders, the Issuing Banks and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.
		

		
			(c)THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”. THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY 
		

		 

		

			 

		

		

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			LIABILITY TO ANY LOAN PARTY, ANY LENDER, THE ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.
		

		
			(d)Each Lender and each Issuing Bank agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender and each Issuing Bank agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender’s or such Issuing Bank’s (as applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.
		

		
			(e)Each of the Lenders, the Issuing Banks and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable document retention procedures and policies.
		

		
			(f)Nothing herein shall prejudice the right of the Administrative Agent, any Lender or the Issuing Bank to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.
		

		
			SECTION 8.04.  The Administrative Agent Individually.  With respect to its Commitment, Loans and Letters of Credit, the Person serving as the Administrative Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender or Issuing Bank, as the case may be. The terms “Issuing Bank”, “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity as a Lender, an Issuing Bank or as one of the Required Lenders, as applicable. The Person serving as the Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of banking, trust or other business with, the Borrower, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not acting as the Administrative Agent and without any duty to account therefor to the Lenders or the Issuing Banks.
		

		
			SECTION 8.05.  Successor Administrative Agent.
		

		
			(a)The Administrative Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Issuing Banks and the Borrower, whether or not a successor Administrative Agent has been appointed. Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent, which shall be a bank with an office in New York, New York or an Affiliate of any such bank. In either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while an Event of Default has occurred and is continuing). Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, 
		

		 

		

			 

		

		

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			privileges and duties of the retiring Administrative Agent. Upon the acceptance of appointment as Administrative Agent by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents.
		

		
			(b)Notwithstanding paragraph (a) of this Section, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of the effectiveness of its resignation to the Lenders, the Issuing Banks and the Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; provided that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender and each Issuing Bank. Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article VIII and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.
		

		
			SECTION 8.06.  Acknowledgements of Lenders and Issuing Banks.
		

		
			(a)Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and that it has, independently and without reliance upon the Administrative Agent or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
		

		
			(b)Each Lender, by delivering its signature page to this Agreement on the Effective Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date.
		

		
			SECTION 8.07.  Certain ERISA Matters.
		

		
			(a)Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its 
		

		 

		

			 

		

		

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		Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:
		

		
			(i)such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,
		

		
			(ii)the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,
		

		
			(iii)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or
		

		
			(iv)such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
		

		
			(b)In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent or any of its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent or any of its Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).
		

		
			(c)The Administrative Agent hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments, this Agreement and any other Loan Documents, (ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions 
		

		 

		

			 

		

		

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			contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, commitment fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent fees or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.
		

		
			Article IX
Miscellaneous
		

		
			SECTION 9.01.  Notices.  (a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or (other than in the case of notice to the Parent or the Borrower) sent by telecopy, as follows:
		

		
			(i) if to the Parent or the Borrower, to it at 911 Panorama Trail South, Rochester, New York 14625, Attention of Efrain Rivera, Chief Financial Officer; Telephone No. (585) 385-6666), with copies to (which shall not constitute notice hereunder) Paychex, Inc., 911 Panorama Trail South, Rochester, New York 14625, Attention of Chief Legal Officer, PayChex, Inc., 1175 John Street, Rochester, New York 14586, Attention of Banking Manager and Attention of Investment Manager, and Nixon Peabody LLP, 53 State Street, Boston, Massachusetts 02109, Attention of Frank Hamblett, Esq.;
		

		
			(ii) if to the Administrative Agent, (A) in the case of Borrowings denominated in Dollars, to PNC Bank, National Association, 6750 Miller Road, Brecksville, Ohio 44141, Attention of Lisa Christian (Telephone No. (440) 546-7312; Facsimile No. (877) 717-5502; and e-mails: participationla11brv@pnc.com; and l.christian@pnc.com); and (B) in the case of Borrowings denominated in Foreign Currencies, to PNC Bank, National Association, 6750 Miller Road, Brecksville, Ohio 44141, Attention of Lisa Christian (Telephone No. (440) 546-7312; Facsimile No. (877) 717-5502; and e-mails: participationla11brv@pnc.com; and l.christian@pnc.com);
		

		
			(iii) if to PNC Bank, National Association, in its capacity as an Issuing Bank, to PNC Bank, National Association, 6750 Miller Road, Brecksville, Ohio 44141, Attention of Lisa Christian (Telephone No. (440) 546-7312; Facsimile No. (877) 717-5502; and e-mails: participationla11brv@pnc.com; and l.christian@pnc.com); 
		

		
			(iv) [Intentionally Omitted]; and
		

		
			(v) if to any other Lender or Issuing Bank, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.
		

		
			Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through Approved Electronic Platforms, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).
		

		

		

		 

		

			 

		

		

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		(b) Notices and other communications to the Lenders and the Issuing Banks hereunder may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
		

		
			(c) Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
		

		
			(d) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto.  
		

		
			SECTION 9.02.  Waivers; Amendments.  (a) No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.
		

		
			(b)  Except as provided in Section 2.14(c), neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender directly affected thereby (except that any amendment or modification of the financial covenants in this Agreement (or defined terms used in the financial covenants in this Agreement) shall not constitute a reduction in the rate of interest or fees for the purposes of this clause (ii)), (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender directly affected thereby, (iv) change Section 2.09(c) or Section 2.18(b) or (d) in a manner that would alter the ratable reduction of Commitments or the pro rata sharing of payments required thereby, without the 
		

		 

		

			 

		

		

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			written consent of each Lender, (v) change the payment waterfall provisions of Section 2.22(b) without the written consent of each Lender, (vi) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender or (vii) (x) release the Parent from its obligations under Article X or (y) release all or substantially all of the Subsidiary Guarantors from their obligations under the Subsidiary Guaranty, in each case, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any Issuing Bank hereunder without the prior written consent of the Administrative Agent or such Issuing Bank, as the case may be (it being understood that any change to Section 2.22 shall require the consent of the Administrative Agent and the Issuing Banks).  Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification. Notwithstanding the foregoing, the Fee Letter may be amended or waived in a writing executed only by the parties thereto.
		

		
			(c)  Notwithstanding the foregoing, this Agreement and any other Loan Document may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (x) to add one or more credit facilities to this Agreement and to permit 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 Loan Documents with the Loans and the accrued interest and fees in respect thereof and (y) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders and Lenders.
		

		
			(d)  If, in connection with any proposed amendment, waiver or consent  requiring the consent of “each Lender” or “each Lender directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrower and the Administrative Agent shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of Section 9.04, (ii) the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender and (iii) such Non-Consenting Lender shall have received the outstanding principal amount of its Loans and participations in LC Disbursements.  Each party hereto agrees that (i) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (ii) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to 
		

		 

		

			 

		

		

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		evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.
		

		
			(e)  Notwithstanding anything to the contrary herein, if the Administrative Agent and the Borrower acting together identify any ambiguity, omission, mistake, typographical error or other defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Borrower shall be permitted to amend, modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error or other defect, and such amendment shall become effective without any further action or consent of any other party to this Agreement.
		

		
			SECTION 9.03.  Expenses; Indemnity; Damage Waiver.  (a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication and distribution (including, without limitation, via the internet or through a service such as Intralinks) of the credit facilities provided for herein, the preparation and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the Issuing Banks in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent, any Issuing Bank or any Lender (limited to the reasonable and documented fees, charges and disbursements of a single counsel for the Administrative Agent and the Lenders, which counsel shall be selected by the Administrative Agent and, if necessary, one local counsel in each applicable jurisdiction, regulatory counsel and one additional counsel for the affected parties in the event of a conflict of interest), in connection with the enforcement or protection of its rights in connection with this Agreement and any other Loan Document, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
		

		
			(b)  The Borrower shall indemnify the Administrative Agent, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related reasonable and documented expenses, including the reasonable and documented fees, charges and disbursements of a single counsel for the Indemnitees selected by the Administrative Agent (and, if necessary, one local counsel in each applicable jurisdiction, regulatory counsel and one additional counsel for the affected parties in the event of a conflict of interest), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, other than, for the avoidance of doubt, expenses, including fees, charges and disbursements of any counsel for any Indemnitee arising out of preparation and execution of documents relating to an assignment or other transfer by a Lender of all or any portion of its rights and obligations, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Parent or any of its Subsidiaries, or any Environmental Liability related in any way to the Parent or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation, arbitration or proceeding relating to any of 
		

		 

		

			 

		

		

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			the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent or any of its Subsidiaries, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity under this Section 9.03(b) shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.  This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.
		

		
			(c)  To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent or any Issuing Bank under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent or such Issuing Bank, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being understood that the Borrower’s failure to pay any such amount shall not relieve the Borrower of any default in the payment thereof); provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or such Issuing Bank in its capacity as such.
		

		
			(d)  To the extent permitted by applicable law (i) the Borrower shall not assert, and the Borrower hereby waives, any claim against any Indemnitee for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), and (ii) no party hereto shall assert, and each such party hereby waives, any claim against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this clause (d)(ii) shall relieve the Borrower of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.
		

		
			(e)  All amounts due under this Section shall be payable not later than fifteen (15) days after written demand therefor.
		

		
			SECTION 9.04.  Successors and Assigns.  (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by 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.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit),  Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
		

		
			(b)  (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, participations in Letters of Credit and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of:
		

		

		

		 

		

			 

		

		

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		(A) the Borrower (provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof); provided,  further, that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default under Section 7.01(a), (b), (h) or (i) has occurred and is continuing, any other assignee;
		

		
			(B) the Administrative Agent; and
		

		
			(C) the Issuing Banks.
		

		
			(ii) Assignments shall be subject to the following additional conditions:
		

		
			(A) except in the case of an assignment to a Lender or 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, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;
		

		
			(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of Commitments or Loans;
		

		
			(C) the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender or shared between such Lenders; and
		

		
			(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its affiliates and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including federal and state securities laws.
		

		
			For the purposes of this Agreement, the terms “Approved Fund” and “Ineligible Institution” have the following meanings:
		

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

		

		

		 

		

			 

		

		

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		“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Lender Parent, (c) the Borrower, any of its Subsidiaries or any of its Affiliates, or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof or (e) any Disqualified Competitor.
		

		
			(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.
		

		
			(iv) The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Banks 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, any Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
		

		
			(v) Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.
		

		
			(c)  Any Lender may, without the consent of, or notice to, the Borrower, the Administrative Agent or the Issuing Banks, sell participations to one or more banks or other entities (a “Participant”), other than an Ineligible Institution, in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or 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, 
		

		 

		

			 

		

		

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			the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the requirements under Section 2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Section 2.15 or 2.17, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(e) as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or Section 1.163-5(b) of the Proposed United States Treasury Regulations (or, in each case, any amended or successor version).  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
		

		
			(d)  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
		

		
			(e)Disqualified Competitors.
		

		
			(i)  No assignment or participation shall be made to any Person that was a Disqualified Competitor as of the date (the “Trade Date”) on which the assigning Lender entered into a binding agreement to sell and assign or grant a participation in all or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to such assignment or participation in writing in its sole and absolute discretion, in which case such Person will not be considered a Disqualified Competitor for the purpose of such assignment or participation). For the avoidance of doubt, with respect to any assignee or Participant that becomes a Disqualified Competitor after the applicable Trade Date (including as a result of the delivery of a written 
		

		 

		

			 

		

		

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			supplement to the list of “Disqualified Competitors” referred to in, the definition of “Disqualified Competitor”), (x) such assignee or Participant shall not retroactively be disqualified from becoming a Lender or Participant and (y) the execution by the Borrower of an Assignment and Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Disqualified Competitor. Any assignment or participation in violation of this clause (e)(i) shall not be void, but the other provisions of this clause (e) shall apply.
		

		
			(ii)  If any assignment or participation is made to any Disqualified Competitor without the Borrower’s prior written consent in violation of clause (i) above, or if any Person becomes a Disqualified Competitor after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Competitor and the Administrative Agent, require such Disqualified Competitor to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 9.04), all of its interest, rights and obligations under this Agreement to one or more Persons (other than an Ineligible Institution) at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Competitor paid to acquire such interests, rights and obligations in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder.
		

		
			(iii)  Notwithstanding anything to the contrary contained in this Agreement, Disqualified Competitors to whom an assignment or participation is made in violation of clause (i) above (A) will not have the right to (x) receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders and the Administrative Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (B) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Competitor will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Competitors consented to such matter.
		

		
			(iv)  The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to (A) post the list of Disqualified Competitors provided by the Borrower and any updates thereto from time to time (collectively, the “DQ List”) on a Platform, including that portion of such Platform that is designated for “public side” Lenders and/or (B) provide the DQ List to each Lender or potential Lender requesting the same.
		

		
			(v)  The Administrative Agent and the Lenders shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Competitors.  Without limiting the generality of the foregoing, neither the Administrative Agent nor any Lender shall ‎(x) be obligated to ascertain, monitor or inquire as to whether any other Lender or Participant or prospective Lender or Participant is a Disqualified ‎Institution or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, by any other Person to any ‎Disqualified Competitor.
		

		
			SECTION 9.05.  Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan 
		

		 

		

			 

		

		

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			Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.
		

		
			SECTION 9.06.  Counterparts; Integration; Effectiveness; Electronic Execution.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to (i) fees payable to the Administrative Agent and (ii) the reductions of the Letter of Credit Commitment of any Issuing Bank constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy, emailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
		

		
			SECTION 9.07.  Severability.  Any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
		

		
			SECTION 9.08.  Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final and in whatever currency denominated) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Parent, the Borrower or any Subsidiary Guarantor against any of and all of the Obligations held by such Lender, irrespective of whether or not such Lender shall have made any demand under the Loan Documents and although such obligations may be unmatured.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.  Each Lender and each Issuing 
		

		 

		

			 

		

		

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			Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.
		

		
			SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process.  
		

		
			(a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN ANY SUCH OTHER LOAN DOCUMENT) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
		

		
			(b)  Each of the Lenders and the Administrative Agent hereby irrevocably and unconditionally agrees that, notwithstanding the governing law provisions of any applicable Loan Document, any claims brought against the Administrative Agent by any Lender relating to this Agreement, any other Loan Document or the consummation or administration of the transactions contemplated hereby or thereby shall be construed in accordance with and governed by the law of the State of New York.
		

		
			(c)  Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern District of New York sitting in the Borough of Manhattan (or if such court lacks subject matter jurisdiction, the Supreme Court of the State of New York sitting in the  Borough of Manhattan), and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may (and any such claims, cross-claims or third party claims brought against the Administrative Agent or any of its Related Parties may only) be heard and determined in such Federal (to the extent permitted by law) or New York State court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.
		

		
			(d)  Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (c) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
		

		
			(e)  Each of the parties hereto hereby irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
		

		
			SECTION 9.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT 
		

		 

		

			 

		

		

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			NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
		

		
			SECTION 9.11.  Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
		

		
			SECTION 9.12.  Confidentiality.  Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies under this Agreement or any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (1) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement (it being understood that the DQ List may be disclosed to any assignee or Participant, or prospective assignee or Participant, in reliance on this clause (f)) or (2) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) on a confidential basis to (1) any rating agency in connection with rating the Parent or its Subsidiaries or the credit facilities provided for herein or (2) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of identification numbers with respect to the credit facilities provided for herein, (h) with the consent of the Borrower or (i) to the extent such Information (1) becomes publicly available other than as a result of a breach of this Section or (2) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Parent or the Borrower.  For the purposes of this Section, “Information” means all information received from the Parent or the Borrower relating to the Parent or any of its Affiliates or its or any of their business, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Parent or the Borrower and other than information pertaining to this Agreement routinely provided by arrangers to data service providers, including league table providers, that serve the lending industry.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information,  provided, that such same degree of care shall, at a minimum, be reasonable care.
		

		
			EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE PARENT, THE OTHER LOAN PARTIES AND  THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND
		

		 

		

			 

		

		

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			 THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.
		

		
			ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE PARENT OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE PARENT, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE PARENT AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.
		

		
			SECTION 9.13.  USA PATRIOT Act.  Each Lender that is subject to the requirements of the Patriot Act hereby notifies each Loan Party that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies such Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the Patriot Act.
		

		
			SECTION 9.14.  Releases of Subsidiary Guarantors.
		

		
			(a) A Subsidiary Guarantor shall automatically be released from its obligations under the Subsidiary Guaranty upon the consummation of any transaction permitted by this Agreement as a result of which such Subsidiary Guarantor ceases to be a subsidiary of the Borrower; provided that, if so required by this Agreement, the Required Lenders shall have consented to such transaction and the terms of such consent shall not have provided otherwise.  In connection with any termination or release pursuant to this Section, the Administrative Agent shall (and is hereby irrevocably authorized by each Lender to) execute and deliver to any Loan Party, at such Loan Party’s expense, all documents that such Loan Party shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section shall be without recourse to or warranty by the Administrative Agent.
		

		
			(b) Further, the Administrative Agent may (and is hereby irrevocably authorized by each Lender to), upon the request of the Borrower, release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty if such Subsidiary Guarantor is no longer a Material Domestic Subsidiary.
		

		
			(c) At such time as the principal and interest on the Loans, all LC Disbursements, the fees, expenses and other amounts payable under the Loan Documents and the other Obligations (other than obligations under any Swap Agreement not yet due and payable, obligations under any Banking Services Agreement not yet due and payable, and other Obligations expressly stated to survive such payment and termination) shall have been paid in full in cash, the Commitments shall have been terminated and no Letters of Credit shall be outstanding, the Subsidiary Guaranty and all obligations (other than those expressly stated to survive such termination) of each Subsidiary Guarantor thereunder shall automatically terminate, all without delivery of any instrument or performance of any act by any Person.
		

		
			SECTION 9.15.  Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall 
		

		 

		

			 

		

		

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			exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the NYFRB Rate to the date of repayment, shall have been received by such Lender.
		

		
			SECTION 9.16.  No Fiduciary Duty, etc.  
		

		
			(a)The Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that no Credit Party will have any obligations except those obligations expressly set forth herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the Loan Documents and the transactions contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person.  The Borrower agrees that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this Agreement and the transactions contemplated hereby.  Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated herein or in the other Loan Documents, and the Credit Parties shall have no responsibility or liability to the Borrower with respect thereto.
		

		
			(b)The Borrower further acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party is a full service securities or banking firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, any Credit Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Borrower, its Subsidiaries and other companies with which the Borrower or any of its Subsidiaries may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.
		

		
			(c)In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its Affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower or any of its Subsidiaries may have conflicting interests regarding the transactions described herein and otherwise.  No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or its other relationships with the Borrower in connection with the performance by such Credit Party of services for other companies, and no Credit Party will furnish any such information to other companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in connection with the transactions contemplated by the Loan Documents, or to furnish to the Borrower or any of its Subsidiaries, confidential information obtained from other companies.
		

		
			SECTION 9.17.  Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement 
		

		 

		

			 

		

		

			98

		

 

		

			 

		

		
		

		
			or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
		

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

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

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

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

		
			(iii)the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.
		

		
			SECTION 9.18.  Acknowledgement Regarding Supported QFCs.    To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Agreements or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):
		

		
			In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
		

		

		

		 

		

			 

		

		

			99

		

 

		

			 

		

		
		

		
			SECTION 9.19.  Independence of Covenants.  Each covenant contained in this Agreement shall be construed (absent express provision to the contrary) as being independent of each other covenant contained in this Agreement, so that compliance with one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.
		

		
			Article X
		

		
			Loan Guaranty
		

		
			SECTION 10.01.  Guaranty.  The Parent hereby agrees that it is liable for, and, as primary obligor and not merely as surety, absolutely and unconditionally guarantees to the Administrative Agent the Lenders the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Obligations and all reasonable and documented costs and expenses including, without limitation, all court costs and reasonable and documented attorneys’ fees and expenses paid or incurred by the Administrative Agent, the Issuing Banks and the Lenders (limited to the reasonable and documented fees, charges and disbursements of a single counsel for the Administrative Agent, the Issuing Banks and the Lenders, which counsel shall be selected by the Administrative Agent and, if necessary, one local counsel in each applicable jurisdiction, regulatory counsel and one additional counsel for the affected parties in the event of a conflict of interest) in endeavoring to collect all or any part of the Obligations from, or in prosecuting any action against, the Borrower or any other guarantor of all or any part of the Obligations (such costs and expenses, together with the Obligations, collectively the “Guaranteed Obligations” (provided, however, that the definition of “Guaranteed Obligations” shall not create any guarantee by the Parent of any Excluded Swap Obligations)).  The Parent further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.  All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations.  The Parent irrevocably and unconditionally agrees that if any of the Guaranteed Obligations is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify the Administrative Agent, the Issuing Banks and the Lenders immediately on demand against any cost, loss or liability they incur as a result of the Borrower not paying any amount which would, but for such unenforceability, invalidity, or illegality, have been payable by it under this Article X on the date when it would have been due (but so that the amount payable by the Parent under this indemnity will not exceed the amount it would have had to pay under this Article X if the amount claimed had been recoverable on the basis of a guaranty).
		

		
			SECTION 10.02.  Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and not of collection.  The Parent waives any right to require the Administrative Agent, any Issuing Bank or any Lender to sue the Borrower or any other person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.
		

		
			The Parent hereby irrevocably and unconditionally agrees that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify the Administrative Agent, the Issuing Banks and the Lenders immediately on demand against any cost, loss or liability they incur as a result of the Borrower or any of its Affiliates not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by the Parent under this Loan Guaranty on the date when it would have been due (but so that the amount payable by the Parent under this indemnity will not exceed the amount which it would have had to pay under this Loan Guaranty if the amount claimed had been recoverable on the basis of a guaranty).
		

		
			
		

		 

		

			 

		

		

			100

		

 

		

			 

		

		SECTION 10.03.  Continuing Guarantee; No Discharge or Diminishment of Loan Guaranty.  
		

		
			(a) Except as otherwise provided for herein, the obligations of the Parent hereunder shall constitute a continuing and irrevocable guarantee of all Guaranteed Obligations now or hereafter existing and are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of the Borrower or any other guarantor of or other person liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated Party, or their assets or any resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any claim, setoff or other rights which the Parent may have at any time against any Obligated Party, the Administrative Agent, any Issuing Bank, any Lender, or any other person, whether in connection herewith or in any unrelated transactions.    
		

		
			(b) The obligations of the Parent hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any part thereof.
		

		
			(c) Further, the obligations of the Parent hereunder are not discharged or impaired or otherwise affected by: (i) the failure of the Administrative Agent, any Issuing Bank or any Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of the Borrower for all or any part of the Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, any Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of the Parent or that would otherwise operate as a discharge of the Parent as a matter of law or equity (other than the indefeasible payment in full in cash of the Guaranteed Obligations).  
		

		
			SECTION 10.04.  Defenses Waived.  To the fullest extent permitted by applicable law, the Parent hereby waives any defense based on or arising out of any defense of the Borrower or the Parent or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation from any cause of the liability of the Borrower or the Parent, other than the indefeasible payment in full in cash of the Guaranteed Obligations.  Without limiting the generality of the foregoing, the Parent irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any person against any Obligated Party, or any other person.  The Administrative Agent may, at its election, foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise any other right or remedy available to it against any Obligated Party, without affecting or impairing in any way the liability of the Parent under this Loan Guaranty except to the extent the Guaranteed Obligations have been fully and indefeasibly paid in 
		

		 

		

			 

		

		

			101

		

 

		

			 

		

		
		

		
			cash.  To the fullest extent permitted by applicable law, the Parent waives any defense arising out of any such election even though that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of the Parent against any Obligated Party or any security.
		

		
			SECTION 10.05.  Rights of Subrogation.  The Parent will not assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or indemnification that it has against any Obligated Party, or any collateral, until the Borrower has fully performed all its obligations to the Administrative Agent, the Issuing Banks and the Lenders. 
		

		
			SECTION 10.06.  Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of the Guaranteed Obligations (including a payment effected through exercise of a right of setoff) is rescinded, or is or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise (including pursuant to any settlement entered into by any of the Administrative Agent, any Issuing Bank or any Lender in its discretion), the Parent’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though the payment had not been made and whether or not the Administrative Agent, the Issuing Banks and the Lenders are in possession of this Loan Guaranty.  If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Parent forthwith on demand by the Lender.
		

		
			SECTION 10.07.  Information.  The Parent assumes all responsibility for being and keeping itself informed of the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that the Parent assumes and incurs under this Loan Guaranty, and agrees that neither the Administrative Agent, any Issuing Bank nor any Lender shall have any duty to advise the Parent of information known to it regarding those circumstances or risks.
		

		
			SECTION 10.08.  Taxes.  All payments of the Guaranteed Obligations shall be subject to Section 2.17 and will be made by the Parent free and clear of and without deduction for any Taxes except as required by applicable law; provided that if the Parent shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Parent shall make such deductions and (iii) the Parent shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.
		

		
			SECTION 10.09.  Maximum Liability.  The provisions of this Loan Guaranty are severable, and in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of the Parent under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of the Parent’s liability under this Loan Guaranty, then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such liability shall, without any further action by the Parent or the Lenders, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the Parent’s “Maximum Liability”).  This Section with respect to the Maximum Liability of the Parent is intended solely to preserve the rights of the Lenders to the maximum extent not subject to avoidance under applicable law, and none of Parent or any other person or entity shall 
		

		 

		

			 

		

		

			102

		

 

		

			 

		

		
		

		
			have any right or claim under this Section with respect to such Maximum Liability, except to the extent necessary so that the obligations of the Parent hereunder shall not be rendered voidable under applicable law.  The Parent agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum Liability of the Parent without impairing this Loan Guaranty or affecting the rights and remedies of the Lenders hereunder; provided that, nothing in this sentence shall be construed to increase the Parent’s obligations hereunder beyond its Maximum Liability.
		

		
			SECTION 10.10.  Liability Cumulative.  The liability of the Parent under this Article X is in addition to and shall be cumulative with all liabilities of the Parent to the Administrative Agent, the Issuing Banks and the Lenders under this Agreement and the other Loan Documents to which the Parent is a party or in respect of any obligations or liabilities of the Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. 
		

		
			SECTION 10.11.  Limitation of Guaranty.  Notwithstanding any other provision of this Loan Guaranty, the amount guaranteed by the Parent hereunder shall be limited to the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.  In determining the limitations, if any, on the amount of the Parent’s obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification or contribution which the Parent may have under this Loan Guaranty, any other agreement or applicable law shall be taken into account.
		

		
			SECTION 10.12.  Keepwell.  The Parent hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Subsidiary Guarantor to honor all of its obligations under the Subsidiary Guaranty in respect of Specified Swap Obligations (provided, however, that the Parent shall only be liable under this Section 10.12 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 10.12 or otherwise under this Guaranty voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations of the Parent under this Section 10.12 shall remain in full force and effect until a discharge of the Parent’s Guaranteed Obligations in accordance with the terms hereof and the other Loan Documents.  The Parent intends that this Section 10.12 constitute, and this Section 10.12 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Subsidiary Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
		

		
			[Signature Pages Follow]
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

		

			103

		

 

		

			 

		

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

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						PAYCHEX ADVANCE LLC,

				
	
					
						﻿

					
					
						as the Borrower

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Name:

				
	
					
						﻿

					
					
						 

					
					
						Title:

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						PAYCHEX, INC.,

				
	
					
						﻿

					
					
						as the Parent

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Name:

				
	
					
						﻿

					
					
						 

					
					
						Title:

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						PNC BANK, NATIONAL ASSOCIATION,

				
	
					
						﻿

					
					
						individually as a Lender, as an Issuing Bank and as Administrative Agent

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Name:

				
	
					
						﻿

					
					
						 

					
					
						Title:

				

		
			﻿
		

		
			 
		

		

		

		 

		

			Signature Page to  Credit Agreement
Paychex Advance LLC

		

 

		

			 

		

		SCHEDULE 2.01A
		

		
			COMMITMENTS
		

			
					
						LENDER

					
					
						COMMITMENT

				
	
					
						PNC BANK, NATIONAL ASSOCIATION

					$250,000,000 
				
	
					
						﻿

					
					
						 

				
	
					
						AGGREGATE COMMITMENT

					$250,000,000 
				

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		SCHEDULE 2.01B
		

		
			LETTER OF CREDIT COMMITMENTS
		

			
					
						LENDER

					
					
						LETTER OF CREDIT COMMITMENT

				
	
					
						PNC BANK, NATIONAL ASSOCIATION

					$50,000,000 
				
	
					
						TOTAL LETTER OF CREDIT COMMITMENTS

					$50,000,000 
				

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		SCHEDULE 3.01
		

		
			SUBSIDIARIES
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Subsidiary

					
					
						Jurisdiction

					
					
						Ownership

					
						Percentage

					
					
						Material Domestic

					
						Subsidiary?

				
	
					
						Advantage Payroll Services Inc.

					
					
						Delaware

					
					
						100%

					
					
						Yes

				
	
					
						AX IV Holding II ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						AX IV Holding III ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						Century II ASO, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						Century II Services, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						Century II Staffing TN, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						Century II Staffing, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						Century II Staffing, USA, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						CSM, Inc.

					
					
						Tennessee

					
					
						100%

					
					
						No

				
	
					
						Danske Lønsystemer A/S

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						DHR Insurance Services, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						DHR of Florida I, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						DHR Services Holdings, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Employer Solutions Group of SLC, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Employer Solutions Group of Utah II, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Employer Solutions Group of Utah, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Employer Solutions Group, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance III, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance IV, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance IX, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance V, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance VI, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance VII, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance VIII, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employer's Alliance, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employers Insurance Group, LLC

					
					
						New Mexico

					
					
						100%

					
					
						No

				
	
					
						Employer's Select, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Employers Solutions Group of Idaho, Inc.

					
					
						Idaho

					
					
						100%

					
					
						No

				
	
					
						ePlan Advisors LLC

					
					
						Colorado

					
					
						100%

					
					
						No

				
	
					
						ESG Achievement, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Administration, Inc

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Assistance, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Consulting II, LLC

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Consulting, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Direction, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Entities II, LLC

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Entities, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				

		 

		

			 

		

 

		

			 

		

			
					
						ESG Fulfillment, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Insurance, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Management, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Offerings, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG PEO, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Services, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Success, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESG Supervision, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						ESSG, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Expense Wire LLC

					
					
						Ohio

					
					
						100%

					
					
						No

				
	
					
						Fast 401k, Inc. d/b/a ePlan Services Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Fortune Financial, Inc

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Fortune Industries

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Fortune Insurance Solutions, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Fortune PEO Acquisitions, LLC

					
					
						Florida

					
					
						99% / 1%

					
					
						No

				
	
					
						Fortune PEO, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Gordian Capital Holdings, Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Gordian HR, LLC (ASO)

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Hispanomina (SP)

					
					
						Spain

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing ASO, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Associates, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Consultants, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Development, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Enterprises, LLC

					
					
						Georgia

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Group, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Processing, LLC

					
					
						Nevada

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing Services, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing, Inc.

					
					
						Georgia

					
					
						100%

					
					
						No

				
	
					
						HR Outsourcing, LLC 

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						HR Services Inc. d/b/a My Staffing Pro

					
					
						Ohio 

					
					
						100%

					
					
						No

				
	
					
						HRSmarter I,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter II, LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter III,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter IV,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter IX,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter V,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter VI,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter VII,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter VIII,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						HRSmarter X,LLC

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						ilohngehalt internetservices GmbH

					
					
						Germany

					
					
						100%

					
					
						No

				
	
					
						Ipayroll Holding ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				

		
			﻿
		

		 

		

			 

		

 

		

			 

		

			
					
						iSalaire Eurl (FR)

					
					
						France

					
					
						100%

					
					
						No

				
	
					
						King Employee Services, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Latweplace sp z.o.o. (PL)

					
					
						Poland

					
					
						100%

					
					
						No

				
	
					
						LESSOR A/S (DK)

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						Lessor GmbH (DE)

					
					
						Germany

					
					
						100%

					
					
						No

				
	
					
						Lessor Group ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						Lessor Holding ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						Nettime Solutions, L.L.C. 

					
					
						Arizona 

					
					
						100%

					
					
						No

				
	
					
						New Dawn Holding ApS

					
					
						Denmark

					
					
						100%

					
					
						No

				
	
					
						Norlønn AS (NO)

					
					
						Norway

					
					
						100%

					
					
						No

				
	
					
						Oasis Acquisition, Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Oasis Advisory Services, Inc.

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Oasis AHR Holdings, Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Oasis AHR HRC, LLC

					
					
						Colorado

					
					
						100%

					
					
						No

				
	
					
						Oasis AHR I, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis AHR II, Inc.

					
					
						Iowa

					
					
						100%

					
					
						No

				
	
					
						Oasis AHR III, Inc.

					
					
						Iowa

					
					
						100%

					
					
						No

				
	
					
						Oasis AHR PL, LLC

					
					
						Colorado

					
					
						100%

					
					
						Yes

				
	
					
						Oasis AHR, Inc.

					
					
						Iowa

					
					
						100%

					
					
						No

				
	
					
						Oasis DEG ASO, Inc.

					
					
						Minnesota

					
					
						100%

					
					
						No

				
	
					
						Oasis DEG, Inc.

					
					
						Minnesota

					
					
						100%

					
					
						No

				
	
					
						Oasis DHR, LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Oasis Employment Services, Inc.

					
					
						Delaware

					
					
						100%

					
					
						Yes

				
	
					
						Oasis HR Solutions III, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Acquisition Corporation

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Admin Group, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Admin, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Admin. II, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Benefits III, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Contract Group, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Contract II, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Contract III, Inc.

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Oasis Outsourcing Contract IV, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Contract VII, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Contract, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing Holdings, Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing HR, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing III, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing IX, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing TX, Inc.

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Oasis Outsourcing V, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Outsourcing VI, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				

		
			﻿
		

		 

		

			 

		

 

		

			 

		

			
					
						Oasis Outsourcing, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Payroll Services, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Staffing II, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Oasis Staffing, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						Pagaveloce S.R.L (IT)

					
					
						Italy

					
					
						100%

					
					
						No

				
	
					
						Paychex Administrative Services, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex Advance LLC 

					
					
						New York 

					
					
						100%

					
					
						No

				
	
					
						Paychex Benefit Technologies Inc. d/b/a Benetrac

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Paychex Brazil LLC 

					
					
						New York 

					
					
						100%

					
					
						No

				
	
					
						Paychex Business Solutions, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex Deutschland GmbH

					
					
						Germany 

					
					
						100%

					
					
						No

				
	
					
						Paychex Holdings, LLC

					
					
						New York

					
					
						100%

					
					
						Yes

				
	
					
						Paychex HR Outsourcing LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Paychex Insurance Agency, Inc.

					
					
						New York

					
					
						100%

					
					
						No

				
	
					
						Paychex Insurance Concepts, Inc.

					
					
						New York

					
					
						100%

					
					
						No

				
	
					
						Paychex Investment LLC

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Paychex IT Solutions India Private Limited

					
					
						N/A

					
					
						100%

					
					
						No

				
	
					
						Paychex Management LLC

					
					
						Delaware

					
					
						100%

					
					
						Yes

				
	
					
						Paychex North America Inc.

					
					
						Delaware

					
					
						100%

					
					
						Yes

				
	
					
						Paychex of New York LLC

					
					
						Delaware

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO I, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO II, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO III, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO IV, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO IX, LLC 

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO V, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO VI, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO VII, LLC 

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO VIII, LLC 

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex PEO X, LLC 

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Paychex Real Estate, LLC 

					
					
						New York 

					
					
						100%

					
					
						No

				
	
					
						Paychex Recordkeeping Services, Inc. d/b/a Southeastern Employee Benefit Services

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Paychex Securities Corporation

					
					
						New York

					
					
						100%

					
					
						No

				
	
					
						Paychex Time & Attendance Inc. 

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						PBS of America, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						PBS of Central Florida, LLC

					
					
						Florida

					
					
						100%

					
					
						Yes

				
	
					
						Precision Employee Management, LLC

					
					
						Arizona 

					
					
						100%

					
					
						No

				
	
					
						Professional Staff Management ASO, Inc.

					
					
						Indiana

					
					
						100%

					
					
						No

				
	
					
						Professional Staff Management, Inc.

					
					
						Indiana

					
					
						100%

					
					
						No

				
	
					
						Professional Staff Management, Inc. II

					
					
						Indiana

					
					
						100%

					
					
						No

				

		
			﻿
		

		 

		

			 

		

 

		

			 

		

			
					
						PSM Financial Services, LLC

					
					
						Indiana

					
					
						100%

					
					
						No

				
	
					
						PXC Inc.

					
					
						New York

					
					
						100%

					
					
						No

				
	
					
						Rapid Payroll, Inc.

					
					
						California

					
					
						100%

					
					
						No

				
	
					
						Solutions Staffing Group, Inc.

					
					
						Utah

					
					
						100%

					
					
						No

				
	
					
						Staff One HR II, Inc.

					
					
						Texas

					
					
						100%

					
					
						No

				
	
					
						Staff One HR, LLC

					
					
						Oklahoma

					
					
						100%

					
					
						No

				
	
					
						Staff One of Oklahoma, LLC

					
					
						Oklahoma

					
					
						100%

					
					
						No

				
	
					
						Staff One, Inc.

					
					
						Oklahoma

					
					
						100%

					
					
						No

				
	
					
						SurePayroll, Inc. 

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						Sweløn AB (S)

					
					
						Sweden

					
					
						100%

					
					
						No

				
	
					
						Workforce Alternative, Inc.

					
					
						Florida

					
					
						100%

					
					
						No

				
	
					
						WorkSmarter HR, LLC

					
					
						Wyoming

					
					
						100%

					
					
						No

				
	
					
						WRI Acquisition, Inc.

					
					
						Delaware

					
					
						100%

					
					
						No

				
	
					
						WRI II, Inc.

					
					
						Florida

					
					
						100%

					
					
						Yes

				

		

		

		 

		

			 

		

 

		

			 

		

		
		

		
			SCHEDULE 6.01
		

		
			INDEBTEDNESS
		

		
			﻿
		

		
			Part A
		

		
			﻿
		

		
			Letters of Credit in an Amount Greater than $5,000,000:
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Institution

					
					
						ISLC #

					
					
						Named Applicant

					
					
						Amount

					
					
						Issue Date

					
					
						Expiry Date

					
					
						Rate

					
					
						Beneficiary

				
	
					
						Bank of America, N.A.

					
					
						68136582

					
					
						Paychex HR Outsourcing LLC

					
					
						$10,050,000

					
					
						12/04/17

					
					
						11/30/20

					
					
						32.5 bps

					
					
						Zurich American Insurance

				
	
					
						Bank of America, N.A.

					
					
						68100766

					
					
						Paychex Business Solutions, LLC

					
					
						$7,500,000

					
					
						12/31/13

					
					
						04/01/20

					
					
						32.5 bps

					
					
						BlueCross BlueShield of Florida, Inc.

				
	
					
						Bank of America, N.A.

					
					
						64131312

					
					
						Paychex, Inc. on behalf of Paychex Business Solutions, LLC

					
					
						$49,608,330

					
					
						07/01/04

					
					
						07/01/20

					
					
						32.5 bps

					
					
						National Union Fire Insurance

				
	
					
						Mitsubishi UFJ Financial Group

					
					
						S523044N

					
					
						Paychex, Inc. on behalf of Oasis Outsourcing Holdings, Inc.

					
					
						$76,000,000

					
					
						05/24/19

					
					
						05/23/20

					
					
						40.0 bps

					
					
						Zurich American Insurance

				

		
			﻿
		

		
			﻿
		

		
			Part B
		

		
			﻿
		

		
			None
		

		 

		

			 

		

 

		

			 

		

		
		

		
			﻿
		

		
			SCHEDULE 6.02
		

		
			EXISTING LIENS
		

		
			﻿
		

		
			Part A
		

		
			﻿
		

		
			None
		

		
			Part B
		

		
			﻿
		

		
			None
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		EXHIBIT A
		

		
			ASSIGNMENT AND ASSUMPTION
		

		
			This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
		

		
			For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.
		

		
			1.          Assignor:                        _________________________________
		

		
			2.          Assignee:                        _________________________________
		

		
			                                                     [and is an Affiliate/Approved Fund of [identify Lender]1]
		

		
			﻿
		

		
			3.          Borrower:                       Paychex Advance LLC______________
		

		
			4.          Administrative Agent:   PNC Bank, National Association, as the administrative agent under the Credit Agreement
		

		
			5.          Credit Agreement:         The 2020 Credit Agreement dated as of February 6, 2020 among Paychex Advance LLC, Paychex, Inc., the Lenders parties thereto, and PNC Bank, National Association, as Administrative Agent 
		

		
			﻿
		

		
			__________________________
		

		
			1  Select as applicable.
		

		

		

		 

		

			 

		

 

		

			 

		

		
		

		
			6.Assigned Interest:
		

			
					
						Aggregate Amount of Commitment/Loans for all Lenders

					
					
						Amount of Commitment/
Loans Assigned

					
					
						Percentage Assigned of Commitment/Loans2

				
	
					
						$

					
					
						$

					
					
						%

				
	
					
						$

					
					
						$

					
					
						%

				
	
					
						$

					
					
						$

					
					
						%

				

		
			﻿
		

		
			Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
		

		
			The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower, the Parent, the Loan Parties and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including federal and state securities laws.
		

		
			The terms set forth in this Assignment and Assumption are hereby agreed to:
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						ASSIGNOR

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						[NAME OF ASSIGNOR]

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						ASSIGNEE

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						[NAME OF ASSIGNOR]

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

				
	
					
						﻿

					
					
						 

					
					
						 

				

		
			﻿
		

			
					
						Consented to and Accepted:

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						PNC BANK, NATIONAL ASSOCIATION,
Administrative Agent and an Issuing Bank 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						By

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				

		
			﻿
		

		
			__________________________
		

		
			2  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.
		

		 

		

			 

		

 

		

			 

		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						[OTHER ISSUING BANKS]

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						[Consented to:]3

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						PAYCHEX ADVANCE LLC

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			__________________________
		

		
			3  To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		ANNEX I
		

		
			STANDARD TERMS AND CONDITIONS FOR
		

		
			ASSIGNMENT AND ASSUMPTION
		

		
			1.  Representations and Warranties.
		

		
			1.1  Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, (iv) any requirements under applicable law for the Assignee to become a lender under the Credit Agreement or to charge interest at the rate set forth therein from time to time or (v) 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 Loan Document.
		

		
			1.2  Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement and under applicable law that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent, the Assignor or any other Lender or any of their respective Related Parties, and (vi)  attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender or any of their respective Related Parties, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
		

		
			2.  Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other 
		

		 

		

			 

		

 

		

			 

		

		amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
		

		
			3.  General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Approved Electronic Platform shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.
		

		
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		EXHIBIT B
		

		
			OPINION OF COUNSEL FOR THE LOAN PARTIES
		

		
			[Attached]
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		EXHIBIT C
		

		
			[INTENTIONALLY OMITTED]
		

		
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		EXHIBIT D
		

		
			[INTENTIONALLY OMITTED]
		

		

		

		 

		

			 

		

 

		

			 

		

		EXHIBIT E
		

		
			LIST OF CLOSING DOCUMENTS
		

		
			PAYCHEX ADVANCE LLC
		

		
			CREDIT FACILITIES
		

		
			February 6, 2020
		

		
			LIST OF CLOSING DOCUMENTS1
		

		
			A.LOAN DOCUMENTS
		

		
			1.Credit Agreement (the “Credit Agreement”) among Paychex Advance LLC, a New York limited liability company (the “Borrower”), Paychex, Inc., a Delaware corporation (the “Parent”), the institutions from time to time parties thereto as Lenders (the “Lenders”), and PNC Bank, National Association., in its capacity as Administrative Agent for itself and the other Lenders (the “Administrative Agent”), evidencing a revolving credit facility to the Borrower from the Lenders in an aggregate principal amount of $250,000,000.
		

		
			SCHEDULES
		

		
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						Schedule 2.01A

					
						Schedule 2.01B

					
					
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						Commitments

					
						Letter of Credit Commitments

				
	
					
						Schedule 3.01

					
					
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						Subsidiaries

				
	
					
						Schedule 6.01

					
					
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						Existing Indebtedness

				
	
					
						Schedule 6.02

					
					
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						Existing Liens

				

		
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			EXHIBITS
		

		
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						Exhibit A

					
					
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						Form of Assignment and Assumption

				
	
					
						Exhibit B

					
					
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						Form of Opinion of Loan Parties’ Counsel

				
	
					
						Exhibit C

					
					
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						[Intentionally Omitted]

				
	
					
						Exhibit D

					
					
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						[Intentionally Omitted]

				
	
					
						Exhibit E

					
					
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						List of Closing Documents

				
	
					
						Exhibit F

					
					
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						Form of Subsidiary Guaranty

				
	
					
						Exhibit G-1

					
					
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						Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)

				
	
					
						Exhibit G-2

					
					
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						Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)

				
	
					
						Exhibit G-3

					
					
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						Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)

				
	
					
						Exhibit G-4

					
					
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						Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)

				
	
					
						Exhibit H-1

					
					
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						Form of Borrowing Request

				

		
			__________________________
		

		
			1 Each capitalized term used herein and not defined herein shall have the meaning assigned to such term in the above-defined Credit Agreement.  Items appearing in bold and italics shall be prepared and/or provided by the Borrower and/or Borrower’s counsel.
		

		 

		

			 

		

 

		

			 

		

			
					
						Exhibit H-2

					
					
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						Form of Interest Election Request

				
	
					
						Exhibit I

					
					
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						Form of Note

				

		
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			2.Notes executed by the Borrower in favor of each of the Lenders, if any, which has requested a note pursuant to Section 2.10(e) of the Credit Agreement.
		

		
			3.Guaranty executed by the initial Subsidiary Guarantors (collectively with the Borrower and the Parent, the “Loan Parties”) in favor of the Administrative Agent.
		

		
			B.CORPORATE DOCUMENTS
		

		
			4.Certificate of the Secretary or an Assistant Secretary of each Loan Party certifying (i) that there have been no changes in the Certificate of Incorporation or other charter document of such Loan Party, as attached thereto and as certified as of a recent date by the Secretary of State (or analogous governmental entity) of the jurisdiction of its organization, since the date of the certification thereof by such governmental entity, (ii) the By-Laws or other applicable organizational document, as attached thereto, of such Loan Party as in effect on the date of such certification, (iii) resolutions of the Board of Directors or other governing body of such Loan Party authorizing the execution, delivery and performance of each Loan Document to which it is a party, and (iv) the names and true signatures of the incumbent officers of each Loan Party authorized to sign the Loan Documents to which it is a party, and (in the case of the Borrower) authorized to request a Borrowing or the issuance of a Letter of Credit under the Credit Agreement.
		

		
			5.Good Standing Certificate for each Loan Party from the Secretary of State of the jurisdiction of its organization.
		

		
			C.OPINIONS
		

		
			6.Opinion of Nixon Peabody LLP, counsel for the Loan Parties.
		

		
			D.CLOSING CERTIFICATES AND MISCELLANEOUS
		

		
			7.A Certificate signed by the President, a Vice President or a Financial Officer of the Borrower certifying the following:  (i) all of the representations and warranties of the Parent and the Borrower set forth in the Credit Agreement are true and correct; and (ii) no Default or Event of Default has occurred and is then continuing.
		

		
			8.A Termination Notice in respect of the Existing Credit Agreement.
		

		
			9.A  pay-off letter in respect of the Existing Credit Agreement.  
		

		
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		EXHIBIT F
		

		
			FORM OF SUBSIDIARY GUARANTY
		

		
			GUARANTY
		

		
			THIS GUARANTY (as amended, restated, supplemented or otherwise modified from time to time, this “Guaranty”) is dated and made as February 6, 2020, by and among each of the Persons listed on Schedule I hereto (collectively, the “Initial Guarantors”) and any additional Subsidiaries of the Parent which become parties to this Guaranty by executing a supplement hereto in the form attached as Annex I (collectively, the “Additional Guarantors”, and together with the Initial Guarantors, the “Guarantors”) in favor of the Administrative Agent, for the ratable benefit of the Holders of Guaranteed Obligations (as defined below), under the Credit Agreement referred to below.
		

		
			WITNESSETH
		

		
			WHEREAS, Paychex Advance LLC, a New York limited liability company (the “Borrower”), Paychex, Inc., a Delaware corporation (the “Parent”), the Lenders from time to time parties thereto, and PNC Bank, National Association, in its capacity as administrative agent (the “Administrative Agent”), have entered into a certain  Credit Agreement dated as of February 6, 2020 (as the same may be amended, modified, supplemented and/or restated, and as in effect from time to time, the “Credit Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit and other financial accommodations to be made by the Lenders to the Borrower;
		

		
			WHEREAS, it is a condition precedent to the extensions of credit by the Lenders under the Credit Agreement that each of the Guarantors (constituting all of the Subsidiaries of the Parent required to execute this Guaranty pursuant to Section 5.09 of the Credit Agreement) execute and deliver this Guaranty, whereby each of the Guarantors shall guarantee the payment when due of all Obligations; and
		

		
			WHEREAS, in consideration of the direct and indirect financial and other support that the Parent and the Borrower have provided, and such direct and indirect financial and other support as the Parent and the Borrower may in the future provide, to the Guarantors, and in order to induce the Lenders and the Administrative Agent to enter into the Credit Agreement, each of the Guarantors is willing to guarantee the Obligations of the Borrower;
		

		
			NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		

		
			SECTION 1.  Definitions.  Terms defined in the Credit Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for therein.
		

		
			SECTION 2.  Representations, Warranties and Covenants.  Each of the Guarantors represents and warrants (which representations and warranties shall be deemed to have been renewed at the time of the making, conversion or continuation of any Loan or issuance, amendment, renewal or extension of any Letter of Credit) that:
		

		
			(A)  It is a corporation, partnership or limited liability company duly incorporated or organized, as the case may be, validly existing and (to the extent such concept applies to such entity) in good standing under the laws of its jurisdiction of incorporation, organization or 
		

		 

		

			 

		

 

		

			 

		

		
		

		
			formation and has all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except to the extent that the failure to have such authority could not reasonably be expected to result in a Material Adverse Effect.
		

		
			(B)  It (to the extent applicable) has the requisite power and authority and legal right to execute and deliver this Guaranty and to perform its obligations hereunder.  The execution and delivery by each Guarantor of this Guaranty and the performance by it of each of its obligations hereunder have been duly authorized by all necessary organizational actions, and this Guaranty constitutes a legal, valid and binding obligation of such Guarantor, respectively, enforceable against such Guarantor, respectively, in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or law.
		

		
			(C)  Neither the execution and delivery by it of this Guaranty, nor the consummation by it of the transactions herein contemplated, nor compliance by it with the provisions hereof will (a) (i) violate any applicable law, regulation or order of any Governmental Authority, (ii) violate its articles or certificate of incorporation (or equivalent charter documents), limited liability company or partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating agreement or other management agreement, as the case may be, or (iii) violate or result in a default under any indenture, agreement or other instrument binding upon it or its assets, or (b) result in the creation or imposition of any Lien on any material asset of any Loan Party (other than any Loan Document); except with respect to any violation or default referred to in clause (a)(i) or (a)(iii) above, to the extent that such violation or default could not reasonably be expected to result in a Material Adverse Effect.  No consent or approval of, registration or filing with, or other action by, any Governmental Authority, which has not been obtained by it, is required to be obtained by it in connection with the execution, delivery and performance by it of, or the legality, validity, binding effect or enforceability against it of, this Guaranty, except for (A) the consents, approvals, registrations, filings or actions which have been obtained or made and are in full force and effect and (B) those other consents, approvals, registrations, filings or actions, the failure of which to obtain or make could not reasonably be expected to result in a Material Adverse Effect.
		

		
			In addition to the foregoing, each of the Guarantors covenants that, so long as any Lender has any Commitment outstanding under the Credit Agreement or any amount payable under the Credit Agreement or any other Guaranteed Obligations shall remain unpaid, it will, and, if necessary, will enable the Borrower to, fully comply with those covenants and agreements of the Borrower applicable to such Guarantor set forth in the Credit Agreement.
		

		
			SECTION 3.  The Guaranty.  Each of the Guarantors hereby unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, to the Administrative Agent for the benefit of the Holders of Guaranteed Obligations the full and punctual payment and performance when due (whether at stated maturity, upon acceleration or otherwise) of the Obligations, including, without limitation, (i) the principal of and interest on each Loan made to the Borrower pursuant to the Credit Agreement, (ii) any obligations of the Borrower to reimburse LC Disbursements (“Reimbursement Obligations”), (iii) all obligations of the Parent or any of its Subsidiaries owing to any Lender or any affiliate of any Lender under any Swap Agreement or Banking Services Agreement, (iv) all other amounts payable by the Parent or any of its Subsidiaries under the Credit Agreement, any Swap Agreement, any Banking Services Agreement and the other Loan Documents and (v) the punctual and faithful performance, keeping, observance, and fulfillment by the Borrower of all of the agreements, conditions, covenants, and obligations of the Borrower contained in the Loan Documents 
		

		 

		

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			(all of the foregoing being referred to collectively as the “Guaranteed Obligations” and the holders from time to time of the Guaranteed Obligations being referred to collectively as the “Holders of Guaranteed Obligations”).  Upon (x) the failure by the Borrower or any of its Affiliates, as applicable, to pay punctually any such amount or perform such obligation, and (y) such failure continuing beyond any applicable grace or notice and cure period, each of the Guarantors agrees that it shall forthwith pay such amount or perform such obligation at the place and in the manner specified in the Credit Agreement, any Swap Agreement, any Banking Services Agreement or the relevant Loan Document, as the case may be.  Each of the Guarantors hereby agrees that this Guaranty is an absolute, irrevocable and unconditional guaranty of payment and is not a guaranty of collection.
		

		
			SECTION 4.  Guaranty Unconditional.  The obligations of each of the Guarantors hereunder shall be unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by:
		

		
			(A)  any extension, renewal, settlement, indulgence, compromise, waiver or release of or with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or with respect to any obligation of any other guarantor of any of the Guaranteed Obligations, whether (in any such case) by operation of law or otherwise, or any failure or omission to enforce any right, power or remedy with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or with respect to any obligation of any other guarantor of any of the Guaranteed Obligations;
		

		
			(B)  any modification or amendment of or supplement to the Credit Agreement, any Swap Agreement, any Banking Services Agreement or any other Loan Document, including, without limitation, any such amendment which may increase the amount of, or the interest rates applicable to, any of the Guaranteed Obligations guaranteed hereby;
		

		
			(C)  any release, surrender, compromise, settlement, waiver, subordination or modification, with or without consideration, of any collateral securing the Guaranteed Obligations or any part thereof, any other guaranties with respect to the Guaranteed Obligations or any part thereof, or any other obligation of any person or entity with respect to the Guaranteed Obligations or any part thereof, or any nonperfection or invalidity of any direct or indirect security for the Guaranteed Obligations;
		

		
			(D)  any change in the corporate, partnership or other existence, structure or ownership of the Borrower or any other guarantor of any of the Guaranteed Obligations, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or any other guarantor of the Guaranteed Obligations, or any of their respective assets or any resulting release or discharge of any obligation of the Borrower or any other guarantor of any of the Guaranteed Obligations;
		

		
			(E)  the existence of any claim, setoff or other rights which the Guarantors may have at any time against the Borrower, any other guarantor of any of the Guaranteed Obligations, the Administrative Agent, any Holder of Guaranteed Obligations or any other Person, whether in connection herewith or in connection with any unrelated transactions; provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim;
		

		
			(F)  the enforceability or validity of the Guaranteed Obligations or any part thereof or the genuineness, enforceability or validity of any agreement relating thereto or with respect to any collateral securing the Guaranteed Obligations or any part thereof, or any other invalidity or 
		

		 

		

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			unenforceability relating to or against the Borrower or any other guarantor of any of the Guaranteed Obligations, for any reason related to the Credit Agreement, any Swap Agreement, any Banking Services Agreement, any other Loan Document, or any provision of applicable law, decree, order or regulation of any jurisdiction purporting to prohibit the payment by the Borrower or any other guarantor of the Guaranteed Obligations, of any of the Guaranteed Obligations or otherwise affecting any term of any of the Guaranteed Obligations;
		

		
			(G)  the failure of the Administrative Agent to take any steps to perfect and maintain any security interest in, or to preserve any rights to, any security or collateral for the Guaranteed Obligations, if any;
		

		
			(H)  the election by, or on behalf of, any one or more of the Holders of Guaranteed Obligations, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. 101 et seq.) (the “Bankruptcy Code”), of the application of Section 1111(b)(2) of the Bankruptcy Code;
		

		
			(I)  any borrowing or grant of a security interest by the Borrower, as debtor-in-possession, under Section 364 of the Bankruptcy Code;
		

		
			(J)  the disallowance, under Section 502 of the Bankruptcy Code, of all or any portion of the claims of the Holders of Guaranteed Obligations or the Administrative Agent for repayment of all or any part of the Guaranteed Obligations;
		

		
			(K)  the failure of any other guarantor to sign or become party to this Guaranty or any amendment, change, or reaffirmation hereof; or
		

		
			(L)  any other act or omission to act or delay of any kind by the Borrower, any other guarantor of the Guaranteed Obligations, the Administrative Agent, any Holder of Guaranteed Obligations or any other Person or any other circumstance whatsoever which might, but for the provisions of this Section 4, constitute a legal or equitable discharge of any Guarantor’s obligations hereunder except as provided in Section 5.
		

		
			SECTION 5.  Continuing Guarantee; Discharge Only Upon Payment In Full; Reinstatement In Certain Circumstances.  Each of the Guarantors’ obligations hereunder shall constitute a continuing and irrevocable guarantee of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations shall have been paid in full in cash and the Commitments and all Letters of Credit issued under the Credit Agreement shall have terminated or expired.  If at any time any payment of the principal of or interest on any Loan, any Reimbursement Obligation or any other amount payable by the Borrower or any other party under the Credit Agreement, any Swap Agreement, any Banking Services Agreement or any other Loan Document (including a payment effected through exercise of a right of setoff) is rescinded, or is or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise (including pursuant to any settlement entered into by a Holder of Guaranteed Obligations in its discretion), each of the Guarantors’ obligations hereunder with respect to such payment shall be reinstated as though such payment had been due but not made at such time.  The parties hereto acknowledge and agree that each of the Guaranteed Obligations shall be due and payable in the same currency as such Guaranteed Obligation is denominated, but if currency control or exchange regulations are imposed in the country which issues such currency with the result that such currency (the “Original Currency”) no longer exists or the relevant Guarantor is not able to make payment in such Original Currency, then all payments to be made by such Guarantor hereunder in such currency shall instead be made when due in Dollars in an amount equal to the Dollar Amount (as of 
		

		 

		

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		the date of payment) of such payment due, it being the intention of the parties hereto that each Guarantor takes all risks of the imposition of any such currency control or exchange regulations.
		

		
			SECTION 6.  General Waivers; Additional Waivers.
		

		
			(A)  General Waivers.  Each of the Guarantors irrevocably waives acceptance hereof, presentment, demand or action on delinquency, protest, the benefit of any statutes of limitations and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the Borrower, any other guarantor of the Guaranteed Obligations, or any other Person.
		

		
			(B)  Additional Waivers.  Notwithstanding anything herein to the contrary, each of the Guarantors hereby absolutely, unconditionally, knowingly, and expressly waives:
		

		
			(i)  any right it may have to revoke this Guaranty as to future indebtedness or notice of acceptance hereof;
		

		
			(ii)  (a) notice of acceptance hereof; (b) notice of any loans or other financial accommodations made or extended under the Loan Documents or the creation or existence of any Guaranteed Obligations; (c) notice of the amount of the Guaranteed Obligations, subject, however, to each Guarantor’s right to make inquiry of Administrative Agent and Holders of Guaranteed Obligations to ascertain the amount of the Guaranteed Obligations at any reasonable time; (d) notice of any adverse change in the financial condition of the Borrower or of any other fact that might increase such Guarantor’s risk hereunder; (e) notice of presentment for payment, demand, protest, and notice thereof as to any instruments among the Loan Documents; (f) notice of any Default or Event of Default; and (g) all other notices (except if such notice is specifically required to be given to such Guarantor hereunder or under the Loan Documents) and demands to which each Guarantor might otherwise be entitled;
		

		
			(iii)  its right, if any, to require the Administrative Agent and the other Holders of Guaranteed Obligations to institute suit against, or to exhaust any rights and remedies which the Administrative Agent and the other Holders of Guaranteed Obligations has or may have against, the other Guarantors or any third party, or against any collateral provided by the other Guarantors, or any third party; and each Guarantor further waives any defense arising by reason of any disability or other defense (other than the defense that the Guaranteed Obligations shall have been fully and finally performed and indefeasibly paid) of the other Guarantors or by reason of the cessation from any cause whatsoever of the liability of the other Guarantors in respect thereof;
		

		
			(iv)  (a) any rights to assert against the Administrative Agent and the other Holders of Guaranteed Obligations any defense (legal or equitable), setoff, counterclaim, or claim which such Guarantor may now or at any time hereafter have against the other Guarantors or any other party liable to the Administrative Agent and the other Holders of Guaranteed Obligations; (b) any defense, setoff, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Guaranteed Obligations or any security therefor; (c) any defense such Guarantor has to performance hereunder, and any right such Guarantor has to be exonerated, arising by reason of:  the impairment or suspension of the Administrative Agent’s and the other Holders of Guaranteed Obligations’ rights or remedies against the other Guarantors; the alteration by the Administrative Agent and the other Holders of Guaranteed Obligations of the Guaranteed Obligations; any discharge of the other Guarantors’ obligations to the Administrative Agent and the other Holders of Guaranteed 
		

		 

		

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			Obligations by operation of law as a result of the Administrative Agent’s and the other Holders of Guaranteed Obligations’ intervention or omission; or the acceptance by the Administrative Agent and the other Holders of Guaranteed Obligations of anything in partial satisfaction of the Guaranteed Obligations; and (d) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay the operation of any statute of limitations applicable to the Guaranteed Obligations shall similarly operate to defer or delay the operation of such statute of limitations applicable to such Guarantor’s liability hereunder; and
		

		
			(v)  any defense arising by reason of or deriving from (a) any claim or defense based upon an election of remedies by the Administrative Agent and the other Holders of Guaranteed Obligations; or (b) any election by the Administrative Agent and the other Holders of Guaranteed Obligations under Section 1111(b) of Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in effect (or any successor statute or any other applicable federal, state, provincial, municipal, local or foreign law relating to such matters), to limit the amount of, or any collateral securing, its claim against the Guarantors.
		

		
			SECTION 7.  Subordination of Subrogation; Subordination of Intercompany Indebtedness.
		

		
			(A)  Subordination of Subrogation.  Until the Guaranteed Obligations have been fully and finally performed and indefeasibly paid in full in cash, the Guarantors (i) shall have no right of subrogation with respect to such Guaranteed Obligations, (ii) waive any right to enforce any remedy which the Holders of Guaranteed Obligations, the Issuing Banks or the Administrative Agent now have or may hereafter have against the Borrower, any endorser or any guarantor of all or any part of the Guaranteed Obligations or any other Person, and (iii) waive any benefit of, and any right to participate in, any security or collateral given to the Holders of Guaranteed Obligations, the Issuing Banks and the Administrative Agent to secure the payment or performance of all or any part of the Guaranteed Obligations or any other liability of the Borrower to the Holders of Guaranteed Obligations or the Issuing Banks.  Should any Guarantor have the right, notwithstanding the foregoing, to exercise its subrogation rights, each Guarantor hereby expressly and irrevocably (A) subordinates any and all rights at law or in equity to subrogation, reimbursement, exoneration, contribution, indemnification or set off that such Guarantor may have to the indefeasible payment in full in cash of the Guaranteed Obligations and (B) waives any and all defenses available to a surety, guarantor or accommodation co-obligor until the Guaranteed Obligations are indefeasibly paid in full in cash.  Each Guarantor acknowledges and agrees that this subordination is intended to benefit the Administrative Agent and the other Holders of Guaranteed Obligations and shall not limit or otherwise affect such Guarantor’s liability hereunder or the enforceability of this Guaranty, and that the Administrative Agent, the other Holders of Guaranteed Obligations and their respective successors and assigns are intended third party beneficiaries of the waivers and agreements set forth in this Section 7(A).
		

		
			(B)  Subordination of Intercompany Indebtedness.  Each Guarantor agrees that any and all claims of such Guarantor against the Borrower or any other Guarantor hereunder (each an “Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined), any endorser, obligor or any other guarantor of all or any part of the Guaranteed Obligations, or against any of its properties shall be subordinate and subject in right of payment to the prior payment, in full and in cash, of all Guaranteed Obligations; provided that, as long as no Event of Default has occurred and is continuing, such Guarantor may receive payments of principal and interest from any Obligor with respect to Intercompany Indebtedness.  Notwithstanding any right of any Guarantor to ask, 
		

		

		

		 

		

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			demand, sue for, take or receive any payment from any Obligor, all rights, liens and security interests of such Guarantor, whether now or hereafter arising and howsoever existing, in any assets of any other Obligor shall be and are subordinated to the rights of the Holders of Guaranteed Obligations and the Administrative Agent in those assets.  No Guarantor shall have any right to possession of any such asset or to foreclose upon any such asset, whether by judicial action or otherwise, unless and until all of the Guaranteed Obligations shall have been fully paid and satisfied (in cash) and all financing arrangements pursuant to any Loan Document, any Swap Agreement or any Banking Services Agreement have been terminated.  If all or any part of the assets of any Obligor, or the proceeds thereof, are subject to any distribution, division or application to the creditors of such Obligor, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding, or if the business of any such Obligor is dissolved or if substantially all of the assets of any such Obligor are sold, then, and in any such event (such events being herein referred to as an “Insolvency Event”), any payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any indebtedness of any Obligor to any Guarantor (“Intercompany Indebtedness”) shall be paid or delivered directly to the Administrative Agent for application on any of the Guaranteed Obligations, due or to become due, until such Guaranteed Obligations shall have first been fully paid and satisfied (in cash).  Should any payment, distribution, security or instrument or proceeds thereof be received by the applicable Guarantor upon or with respect to the Intercompany Indebtedness after any Insolvency Event and prior to the satisfaction of all of the Guaranteed Obligations and the termination of all financing arrangements pursuant to any Loan Document among the Borrower and the Holders of Guaranteed Obligations, such Guarantor shall receive and hold the same in trust, as trustee, for the benefit of the Holders of Guaranteed Obligations and shall forthwith deliver the same to the Administrative Agent, for the benefit of the Holders of Guaranteed Obligations, in precisely the form received (except for the endorsement or assignment of the Guarantor where necessary), for application to any of the Guaranteed Obligations, due or not due, and, until so delivered, the same shall be held in trust by the Guarantor as the property of the Holders of Guaranteed Obligations.  If any such Guarantor fails to make any such endorsement or assignment to the Administrative Agent, the Administrative Agent or any of its officers or employees is irrevocably authorized to make the same.  Each Guarantor agrees that until the Guaranteed Obligations (other than the contingent indemnity obligations) have been paid in full (in cash) and satisfied and all financing arrangements pursuant to any Loan Document among the Borrower and the Holders of Guaranteed Obligations have been terminated, no Guarantor will assign or transfer to any Person (other than the Administrative Agent) any claim any such Guarantor has or may have against any Obligor.
		

		
			SECTION 8.  Contribution with Respect to Guaranteed Obligations.
		

		
			(A)  To the extent that any Guarantor shall make a payment under this Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously or concurrently made by any other Guarantor, exceeds the amount which otherwise would have been paid by or attributable to such Guarantor if each Guarantor had paid the aggregate Guaranteed Obligations satisfied by such Guarantor Payment in the same proportion as such Guarantor’s “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Guarantors as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guaranteed Obligations and termination of the Credit Agreement, the Swap Agreements and the Banking Services Agreements, such Guarantor shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Guarantor for 
		

		 

		

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		the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.
		

		
			(B)  As of any date of determination, the “Allocable Amount” of any Guarantor shall be equal to the excess of the fair saleable value of the property of such Guarantor over the total liabilities of such Guarantor (including the maximum amount reasonably expected to become due in respect of contingent liabilities, calculated, without duplication, assuming each other Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving effect to all payments made by other Guarantors as of such date in a manner to maximize the amount of such contributions.
		

		
			(C)  This Section 8 is intended only to define the relative rights of the Guarantors, and nothing set forth in this Section 8 is intended to or shall impair the obligations of the Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Guaranty.
		

		
			(D)  The parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution and indemnification is owing.
		

		
			(E)  The rights of the indemnifying Guarantors against other Guarantors under this Section 8 shall be exercisable upon the full and indefeasible payment of the Guaranteed Obligations in cash and the termination of the Credit Agreement, the Swap Agreements and the Banking Services Agreements.
		

		
			SECTION 9.  Limitation of Guaranty.  Notwithstanding any other provision of this Guaranty, the amount guaranteed by each Guarantor hereunder shall be limited to the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act, Uniform Voidable Transfer Act or similar statute or common law.  In determining the limitations, if any, on the amount of any Guarantor’s obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification or contribution which such Guarantor may have under this Guaranty, any other agreement or applicable law shall be taken into account.
		

		
			SECTION 10.  Stay of Acceleration.  If acceleration of the time for payment of any amount payable by the Borrower under the Credit Agreement, any Swap Agreement, any Banking Services Agreement or any other Loan Document is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of the Credit Agreement, any Swap Agreement, any Banking Services Agreement or any other Loan Document shall nonetheless be payable by each of the Guarantors hereunder forthwith on demand by the Administrative Agent.
		

		
			SECTION 11.  Notices.  All notices, requests and other communications to any party hereunder shall be given in the manner prescribed in Article IX of the Credit Agreement with respect to the Administrative Agent at its notice address therein and with respect to any Guarantor, in care of the Borrower at the address of the Borrower set forth in the Credit Agreement or such other address or telecopy number as such party may hereafter specify for such purpose by notice to the Administrative Agent in accordance with the provisions of such Article IX.
		

		
			SECTION 12.  No Waivers.  No failure or delay by the Administrative Agent or any other Holder of Guaranteed Obligations in exercising any right, power or privilege hereunder shall operate as a 
		

		 

		

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			waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies provided in this Guaranty, the Credit Agreement, any Swap Agreement, any Banking Services Agreement and the other Loan Documents shall be cumulative and not exclusive of any rights or remedies provided by law.
		

		
			SECTION 13.  Successors and Assigns.  This Guaranty is for the benefit of the Administrative Agent and the other Holders of Guaranteed Obligations and their respective successors and permitted assigns; provided, that no Guarantor shall have any right to assign its rights or obligations hereunder without the consent of all of the Lenders, and any such assignment in violation of this Section 13 shall be null and void; and in the event of an assignment of any amounts payable under the Credit Agreement, any Swap Agreement, any Banking Services Agreement or the other Loan Documents in accordance with the respective terms thereof, the rights hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness.  This Guaranty shall be binding upon each of the Guarantors and their respective successors and assigns.
		

		
			SECTION 14.  Changes in Writing.  Other than in connection with the addition of additional Subsidiaries, which become parties hereto by executing a supplement hereto in the form attached as Annex I, neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated orally, but only in writing signed by each of the Guarantors and the Administrative Agent.
		

		
			SECTION 15.  GOVERNING LAW.  THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
		

		
			SECTION 16.  CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL; IMMUNITY.
		

		
			(A)  CONSENT TO JURISDICTION.  Each GUARANTOR hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern District of New York sitting in the Borough of Manhattan (or if such court lacks subject matter jurisdiction, the Supreme Court of the State of New York sitting in the  Borough of Manhattan), and any appellate court from any thereof, in any action or proceeding arising out of or relating to this GUARANTY, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may (and any such claims, cross-claims or third party claims brought against the Administrative Agent or any of its Related Parties may only) be heard and determined in such Federal (to the extent permitted by law) or New York State court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this GUARANTY or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this GUARANTY or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.
		

		 

		

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			(B)  WAIVER OF JURY TRIAL.  EACH GUARANTOR HEREBY WAIVES  TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER AND FURTHER WAIVES ANY RIGHT TO INTERPOSE ANY COUNTERCLAIM RELATED TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY IN SUCH ACTION.
		

		
			(C)  TO THE EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR OTHERWISE), EACH GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY.
		

		
			SECTION 17.  No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Guaranty.  In the event an ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Guaranty.
		

		
			SECTION 18.  Taxes, Expenses of Enforcement, Etc.
		

		
			(A)  Taxes.
		

		
			(i)  Each payment by any Guarantor hereunder or under any promissory note or application for a Letter of Credit shall be made without withholding for any Taxes, unless such withholding is required by any law.  If any Guarantor determines, in its sole discretion exercised in good faith, that it is so required to withhold Taxes, then such Guarantor may so withhold and shall timely pay the full amount of withheld Taxes to the relevant Governmental Authority in accordance with applicable law.  If such Taxes are Indemnified Taxes, then the amount payable by the Guarantor shall be increased as necessary so that, net of such withholding (including such withholding applicable to additional amounts payable under this Section), the applicable Recipient receives the amount it would have received had no such withholding been made.
		

		
			(ii)  In addition, such Guarantor shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.
		

		
			(iii)  As soon as practicable after any payment of Indemnified Taxes by any Guarantor to a Governmental Authority, such Guarantor shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
		

		
			(iv)  The Guarantors shall jointly and severally indemnify each Recipient for any Indemnified Taxes that are paid or payable by such Recipient in connection with any Loan Document (including amounts payable under this Section 18(A)) and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  The indemnity under this 
		

		 

		

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			Section 18(A) shall be paid within ten (10) days after the Recipient delivers to any Guarantor a certificate stating the amount of any Indemnified Taxes so payable by such Recipient.  Such certificate shall be conclusive of the amount so payable absent manifest error.  Such Recipient shall deliver a copy of such certificate to the Administrative Agent.  In the case of any Lender making a claim under this Section 18(A) on behalf of any of its beneficial owners, an indemnity payment under this Section 18(A) shall be due only to the extent that such Lender is able to establish that, with respect to the applicable Indemnified Taxes, such beneficial owners supplied to the applicable Persons such properly completed and executed documentation necessary to claim any applicable exemption from, or reduction of, such Indemnified Taxes.
		

		
			(v)  By accepting the benefits hereof, each Lender agrees that it will comply with Section 2.17(f) of the Credit Agreement.
		

		
			(B)  Expenses of Enforcement, Etc.  The Guarantors agree to reimburse the Administrative Agent and the other Holders of Guaranteed Obligations for any reasonable and documented costs and out-of-pocket expenses (including reasonable and documented attorneys’ fees of a single counsel for the Administrative Agent and the other Holders of Guaranteed Obligations, which counsel shall be selected by the Administrative Agent and, if necessary, one local counsel in each applicable jurisdiction, regulatory counsel and one additional counsel for the affected parties in the event of a conflict of interest) paid or incurred by the Administrative Agent or any other Holder of Guaranteed Obligations in connection with the collection and enforcement of amounts due under the Loan Documents, including without limitation this Guaranty.
		

		
			SECTION 19.  Setoff.  At any time after all or any part of the Guaranteed Obligations have become due and payable (by acceleration or otherwise), each Holder of Guaranteed Obligations (including the Administrative Agent) and its Affiliates may, without notice to any Guarantor and regardless of the acceptance of any security or collateral for the payment hereof, appropriate and apply in accordance with the terms of the Credit Agreement toward the payment of all or any part of the Guaranteed Obligations  (i) any indebtedness due or to become due from such Holder of Guaranteed Obligations or the Administrative Agent to any Guarantor, and (ii) any moneys, credits or other property belonging to any Guarantor, at any time held by or coming into the possession of such Holder of Guaranteed Obligations (including the Administrative Agent) or any of their respective affiliates.
		

		
			SECTION 20.  Financial Information.  Each Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of the Borrower and any and all endorsers and/or other Guarantors of all or any part of the Guaranteed Obligations, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations, or any part thereof, that diligent inquiry would reveal, and each Guarantor hereby agrees that none of the Holders of Guaranteed Obligations (including the Administrative Agent) shall have any duty to advise such Guarantor of information known to any of them regarding such condition or any such circumstances.  In the event any Holder of Guaranteed Obligations (including the Administrative Agent), in its sole discretion, undertakes at any time or from time to time to provide any such information to a Guarantor, such Holder of Guaranteed Obligations (including the Administrative Agent) shall be under no obligation (i) to undertake any investigation not a part of its regular business routine, (ii) to disclose any information which such Holder of Guaranteed Obligations (including the Administrative Agent), pursuant to accepted or reasonable commercial finance or banking practices, wishes to maintain confidential or (iii) to make any other or future disclosures of such information or any other information to such Guarantor.
		

		
			SECTION 21.  Severability.  Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this 
		

		 

		

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			Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Guaranty.
		

		
			SECTION 22.  Merger.  This Guaranty represents the final agreement of each of the Guarantors with respect to the matters contained herein and may not be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, between the Guarantor and any Holder of Guaranteed Obligations (including the Administrative Agent).
		

		
			SECTION 23.  Headings.  Section headings in this Guaranty are for convenience of reference only and shall not govern the interpretation of any provision of this Guaranty.
		

		
			SECTION 24.  Judgment Currency.  If for the purposes of obtaining judgment in any court it is necessary to convert a sum due from any Guarantor hereunder in the currency expressed to be payable herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the specified currency with such other currency at the Administrative Agent’s main New York City office on the Business Day preceding that on which final, non-appealable judgment is given.  The obligations of each Guarantor in respect of any sum due hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following receipt by any Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, of any sum adjudged to be so due in such other currency such Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency.  If the amount of the specified currency so purchased is less than the sum originally due to such Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, in the specified currency, each Guarantor agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum originally due to any Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, in the specified currency and (b) amounts shared with other Holders of Guaranteed Obligations as a result of allocations of such excess as a disproportionate payment to such other Holder of Guaranteed Obligations under Section 2.18 of the Credit Agreement, such Holder of Guaranteed Obligations (including the Administrative Agent), as the case may be, agrees, by accepting the benefits hereof, to remit such excess to such Guarantor.
		

		
			SECTION 25.  Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under this Guaranty or Article X of the Credit Agreement, as applicable, in respect of Specified Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 25 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 25 or otherwise under this Guaranty voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations of each Qualified ECP Guarantor under this Section 25 shall remain in full force and effect until a discharge of such Qualified ECP Guarantor’s Guaranteed Obligations in accordance with the terms hereof and the other Loan Documents.  Each Qualified ECP Guarantor intends that this Section 25 constitute, and this Section 25 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.  As used herein, “Qualified ECP Guarantor” means, in respect of any Specified Swap Obligation, each Guarantor that has total assets 
		

		 

		

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			exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes or would become effective with respect to such Specified Swap Obligation or such other Person as constitutes an ECP and can cause another Person to qualify as an ECP at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
		

		
			SECTION 26.  Counterparts.  This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Guaranty by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Guaranty.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in connection with this Guaranty and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
		

		
			SECTION 27.  Termination of Guaranty.  The obligations of any Guarantor under this Guaranty shall automatically terminate in accordance with Section 9.14 of the Credit Agreement.
		

		
			Remainder of Page Intentionally Blank.
		

		

		

		 

		

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		IN WITNESS WHEREOF, each of the Initial Guarantors has caused this Guaranty to be duly executed by its authorized officer as of the day and year first above written.
		

			
					
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						[GUARANTORS]

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				

		

		

		 

		

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						Acknowledged and Agreed
as of the date first written above:

				
	
					
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						PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				
	
					
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		SCHEDULE I
		

		
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			Guarantors
		

		
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			Paychex Holdings, LLC, a New York limited liability company 
		

		
			Paychex North America Inc., a Delaware corporation 
		

		
			Paychex of New York LLC, a Delaware limited liability company 
		

		
			Advantage Payroll Services, Inc., a Delaware corporation 
		

		
			Paychex Business Solutions, LLC, a Florida limited liability company 
		

		
			Paychex Management LLC, a Delaware limited liability company 
		

		
			Paychex Administrative Services, LLC, a Florida limited liability company 
		

		
			Paychex PEO I, LLC, a Florida limited liability company 
		

		
			Paychex PEO II, LLC, a Florida limited liability company 
		

		
			Paychex PEO III, LLC, a Florida limited liability company 
		

		
			Paychex PEO IV, LLC, a Florida limited liability company 
		

		
			Paychex PEO V, LLC, a Florida limited liability company 
		

		
			Paychex PEO VI, LLC, a Florida limited liability company 
		

		
			Paychex PEO VII, LLC, a Florida limited liability company 
		

		
			Paychex PEO VIII, LLC, a Florida limited liability company 
		

		
			Paychex PEO IX, LLC, a Florida limited liability company 
		

		
			Paychex PEO X, LLC, a Florida limited liability company 
		

		
			PBS of Central Florida, LLC, a Florida limited liability company 
		

		
			PBS of America, LLC, a Florida limited liability company 
		

		
			Oasis Advisory Services, Inc., a Florida corporation 
		

		
			Oasis AHR PL, LLC, a Colorado limited liability company 
		

		
			Oasis Employment Services, Inc., a Delaware corporation 
		

		
			Oasis Outsourcing Contract III, Inc., a Florida corporation 
		

		
			Oasis Outsourcing TX, Inc., a Florida corporation 
		

		
			WRI II, Inc., a Florida corporation 
		

		
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			ANNEX I TO GUARANTY
		

		
			Reference is hereby made to the Guaranty (the “Guaranty”) made as of February 6, 2020, by and among each of the Persons listed on Schedule I hereto (the “Initial Guarantors”) and any additional Subsidiaries of the Parent, which become parties thereto (collectively, the “Additional Guarantors”, and together with the Initial Guarantors, the “Guarantors”) in favor of the Administrative Agent, for the ratable benefit of the Holders of Guaranteed Obligations, under the Credit Agreement.  Capitalized terms used herein and not defined herein shall have the meanings given to them in the Guaranty.  By its execution below, the undersigned [NAME OF NEW GUARANTOR], a [corporation] [partnership] [limited liability company] (the “New Guarantor”), agrees to become, and does hereby become, a Guarantor under the Guaranty and agrees to be bound by such Guaranty as if originally a party thereto.  By its execution below, the undersigned represents and warrants as to itself that all of the representations and warranties contained in Section 2 of the Guaranty are true and correct in all respects as of the date hereof.
		

		
			IN WITNESS WHEREOF, New Guarantor has executed and delivered this Annex I counterpart to the Guaranty as of this __________ day of _________, 20___.
		

		
			[NAME OF NEW GUARANTOR]
		

		
			By:____________________________________
		

		
			Its:
		

		
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		EXHIBIT G-1
		

		
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			[FORM OF]
		

		
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			U.S. TAX COMPLIANCE CERTIFICATE
		

		
			(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
		

		
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			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  
		

		
			Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any promissory 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 and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
		

		
			The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, 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 payments. 
		

		
			Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
		

		
			[NAME OF LENDER]
		

		
			By:____________________________________
Name:
Title:
		

		
			Date:  ________ __, 20[__]
		

		
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		EXHIBIT G-2
		

		
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			[FORM oF]
		

		
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			U.S. TAX COMPLIANCE CERTIFICATE
		

		
			(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
		

		
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			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  
		

		
			Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
		

		
			The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
		

		
			Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
		

		
			[NAME OF PARTICIPANT]
		

		
			By:____________________________________
Name:
Title:
		

		
			Date:  ________ __, 20[__]
		

		
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		EXHIBIT G-3
		

		
			[FORM OF]
		

		
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			U.S. TAX COMPLIANCE CERTIFICATE
		

		
			(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
		

		
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			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  
		

		
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			Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
		

		
			The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
		

		
			Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
		

		
			[NAME OF PARTICIPANT]
		

		
			By:____________________________________
Name:
Title:
		

		
			Date:  ________ __, 20[__]
		

		
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		EXHIBIT G-4
		

		
			[FORM OF]
		

		
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			U.S. TAX COMPLIANCE CERTIFICATE
		

		
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			(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
		

		
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			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  
		

		
			Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any promissory 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 promissory note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
		

		
			The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, 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 payments.
		

		
			Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
		

		
			[NAME OF LENDER]
		

		
			By:____________________________________
Name:
Title:
		

		
			Date:  ________ __, 20[__]
		

		
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		EXHIBIT H-1
		

		
			FORM OF BORROWING REQUEST
		

		
			PNC Bank, National Association,
		

		
			as Administrative Agent
		

		
			for the Lenders referred to below
		

		
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			PNC Bank, National Association
		

		
			6750 Miller Road
		

		
			Brecksville, Ohio 44141
		

		
			Attention of Lisa Christian 
		

		
			participationla11brv@pnc.com
l.christian@pnc.com
		

		
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			Re:  Paychex Advance LLC
		

		
			[Date]
		

		
			Ladies and Gentlemen:
		

		
			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders from time to time party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The Borrower hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests a Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to such Borrowing requested hereby:
		

		
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			1.          Aggregate principal amount of Borrowing:5  __________
		

		
			2.          Date of Borrowing (which shall be a Business Day):  __________
		

		
			3.          Type of Borrowing (ABR, Eurocurrency LIBO Rate or Eurocurrency Daily LIBO Rate):  __________
		

		
			4.          Interest Period and the last day thereof (if a Eurocurrency LIBO Rate Borrowing):6  __________
		

		
			5.          Agreed Currency:  __________
		

		
			6.          Location and number of the Borrower’s account or any other account agreed upon by the Administrative Agent and the Borrower to which proceeds of Borrowing are to be disbursed:  __________
		

		
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			__________________________
		

		
			5  Not less than applicable amounts specified in Section 2.02(c).
		

		
			6 Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.
		

		 

		

			 

		

 

		

			 

		

		
			7.The undersigned hereby represents and warrants that the conditions to lending specified in Section[s] [4.01 and]7 4.02 of the Credit Agreement are satisfied as of the date hereof. 
		

		
			[Signature Page Follows]
		

		
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			__________________________
		

		
			7  To be included only for Borrowings on the Effective Date.
		

		
			 
		

		 

		

			-2-

		

 

		

			 

		

			
					
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						Very truly yours,

				
	
					
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						PAYCHEX ADVANCE LLC,

				
	
					
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						as the Borrower

				
	
					
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						Title:

					
					
						 

				

		
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		EXHIBIT H-2
		

		
			FORM OF INTEREST ELECTION REQUEST
		

		
			PNC Bank, National Association,
		

		
			as Administrative Agent
		

		
			for the Lenders referred to below
		

		
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			PNC Bank, National Association
		

		
			6750 Miller Road
		

		
			Brecksville, Ohio 44141
		

		
			Attention of Lisa Christian 
		

		
			participationla11brv@pnc.com
l.christian@pnc.com
		

		
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			Re: [Borrower]
		

		
			[Date]
		

		
			Ladies and Gentlemen:
		

		
			Reference is hereby made to the Credit Agreement dated as of February 6, 2020 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Paychex Advance LLC (the “Borrower”), Paychex, Inc., (the “Parent”), the Lenders from time to time party thereto and PNC Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The Borrower hereby gives you notice pursuant to Section 2.08 of the Credit Agreement that it requests to [convert][continue] an existing Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to such [conversion][continuation] requested hereby: 
		

		
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			1.List date, Type, principal amount, Agreed Currency and Interest Period (if applicable) of existing Borrowing:  __________
		

		
			2.Aggregate principal amount of resulting Borrowing:  __________
		

		
			3.Effective date of interest election (which shall be a Business Day):  __________
		

		
			4.Type of Borrowing (ABR, Eurocurrency LIBO Rate or Eurocurrency Daily LIBO Rate):  __________
		

		
			5.Interest Period and the last day thereof (if a Eurocurrency LIBO Rate Borrowing):1  __________
		

		
			6.Agreed Currency:  __________
		

		
			[Signature Page Follows]
		

		
			__________________________
		

		
			1  Which must comply with the definition of “Interest Period” and end not later than the Maturity Date. 
		

		
			 
		

		 

		

			 

		

 

		

			 

		

			
					
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						Very truly yours,

				
	
					
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						PAYCHEX ADVANCE LLC,

				
	
					
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						as Borrower

				
	
					
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		EXHIBIT I
		

		
			[FORM OF]
NOTE
		

		
			February 6, 2020
New York, New York
		

		
			FOR VALUE RECEIVED, the undersigned, PAYCHEX ADVANCE LLC, a New York limited liability company (the “Borrower”), HEREBY UNCONDITIONALLY PROMISES TO PAY to [NAME OF LENDER] (the “Lender”) the aggregate unpaid Dollar Amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement (as defined below) on the Maturity Date or on such earlier date as may be required by the terms of the Credit Agreement.  Capitalized terms used herein and not otherwise defined herein are as defined in the Credit Agreement.
		

		
			The Borrower hereby unconditionally promises to pay interest on the unpaid principal amount of each Loan made to it from the date such Loan is made until such principal amount is paid in full at a rate or rates per annum determined in accordance with the terms of the Credit Agreement.  Interest hereunder is due and payable at such times and on such dates as set forth in the Credit Agreement.
		

		
			At the time of each Loan, and upon each payment or prepayment of principal of each Loan, the Lender shall make a notation either on the schedule attached hereto and made a part hereof, or in such Lender’s own books and records, in each case specifying the amount of such Loan, the respective Interest Period thereof (in the case of Eurocurrency Loans) or the amount of principal paid or prepaid with respect to such Loan, as applicable; provided that the failure of the Lender to make any such recordation or notation shall not affect the Obligations of the Borrower hereunder or under the Credit Agreement.
		

		
			This Note is one of the notes referred to in, and is entitled to the benefits of, that certain Credit Agreement, dated as of February 6, 2020, among the Borrower, Paychex, Inc., the Lenders from time to time parties thereto, and PNC Bank, National Association, as Administrative Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  The Credit Agreement, among other things, (i) provides for the making of Loans by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Dollar Amount of such Lender’s Commitment, the indebtedness of the Borrower resulting from each such Loan to it being evidenced by this Note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments of the principal hereof prior to the maturity hereof upon the terms and conditions therein specified.
		

		
			Demand, presentment, protest and notice of nonpayment and protest are hereby waived by the Borrower.
		

		
			Whenever in this Note reference is made to the Administrative Agent, the Lender or the Borrower, such reference shall be deemed to include, as applicable, a reference to their respective successors and assigns.  The provisions of this Note shall be binding upon and shall inure to the benefit of said successors and assigns.  The Borrower’s successors and assigns shall include, without limitation, a receiver, trustee or debtor in possession of or for the Borrower.
		

		
			This Note shall be construed in accordance with and governed by the law of the State of New York.
		

		
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		IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and delivered by its officer thereunto duly authorized on the date first written above. 
		

			
					
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						PAYCHEX ADVANCE LLC

				
	
					
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			Note

		

 

		

			 

		

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			SCHEDULE OF LOANS AND PAYMENTS OR PREPAYMENTS

		

			
					
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						Amount of Loan

					
					
						 

					
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						Loan Currency

					
					
						 

					
						 

					
						Interest Period/Rate

					
					
						Amount of Principal Paid or Prepaid

					
					
						 

					
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						Notation Made By

				
	
					
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