Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 SECOND
AMENDMENT TO TERM LOAN CREDIT AGREEMENT 
 SECOND AMENDMENT TO TERM LOAN CREDIT AGREEMENT (this “Second Amendment”),
dated as of February 16, 2018, among PARTY CITY HOLDINGS INC., a Delaware corporation (the “Borrower Agent”), PARTY CITY CORPORATION, a Delaware corporation (the “Subsidiary Borrower” and, together with the
Borrower Agent, the “Borrowers”), PC INTERMEDIATE HOLDINGS, INC., a Delaware corporation (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as administrative agent (in such capacity, the
“Administrative Agent”) and each of the Persons party hereto as 2018 Replacement Lenders (as defined below). Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings
provided such terms in the Credit Agreement referred to below (as amended by this Second Amendment). 
 W I T N
E S S E T H: 
 WHEREAS, the Borrowers, Holdings, the Administrative Agent, DBNY, as collateral
agent (in such capacity, including any permitted successor thereto, the “Collateral Agent”) under the Loan Documents, the subsidiaries of the Borrowers from time to time party thereto and each lender from time to time party thereto
(the “Lenders”) have entered into a Credit Agreement, dated as of August 19, 2015 (as amended by the First Amendment to Credit Agreement, dated as of October 20, 2016, and as otherwise amended, amended and restated,
supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); 
 WHEREAS, on the date hereof (prior
to giving effect to this Second Amendment), there are outstanding Term Loans under the Credit Agreement (for purposes of this Second Amendment, herein called the “Original Replaced Term Loans”) in an aggregate principal amount of
$1,211,267,500; 
 WHEREAS, in accordance with the provisions of Section 9.02(c) of the Credit Agreement, Holdings
and the Borrowers wish to amend the Credit Agreement to enable the Borrowers to refinance in full the outstanding Original Replaced Term Loans with the proceeds of 2018 Replacement Term Loans (as defined below) as more fully provided herein; 

WHEREAS, Holdings, the Borrowers, the Administrative Agent and the 2018 Replacement Lenders wish to amend the Credit Agreement to provide for
the refinancing in full of all outstanding Original Replaced Term Loans with the 2018 Replacement Term Loans on the terms and subject to the conditions set forth herein; and 

WHEREAS, Credit Suisse Securities (USA) LLC (together with any of its affiliates, “CS”), Merrill Lynch, Pierce,
Fenner & Smith Incorporated, The Bank of Tokyo Mitsubishi UFJ, Ltd., Barclays Bank PLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding, Inc., Sumitomo Mitsui Banking Corporation, Wells Fargo Securities,
LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Mizuho Bank Ltd. (in each case, or any affiliates thereof) shall act as joint lead arrangers and joint bookrunners with respect to this Second Amendment and the 2018 Replacement Term
Loans provided for hereunder; 

 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 
 SECTION 1. Amendments to Credit Agreement.

 (a)    (i) Subject to the satisfaction of the conditions set forth in Section 2 hereof, the
2018 Replacement Lenders hereby severally agree to make 2018 Replacement Term Loans to the Borrowers on the Second Amendment Effective Date (as defined below) in the aggregate principal amount of $1,211,267,500 to refinance all outstanding Original
Replaced Term Loans in accordance with the relevant requirements of the Credit Agreement (as amended hereby) and this Second Amendment. It is understood and agreed that the 2018 Replacement Term Loans being made pursuant to this Second Amendment and
the Credit Agreement (as modified hereby) shall constitute “Replacement Term Loans” as defined in, and pursuant to, Section 9.02(c) of the Credit Agreement and the Original Replaced Term Loans being refinanced
shall constitute “Replaced Term Loans” as defined in, and pursuant to, Section 9.02(c) of the Credit Agreement. Except as expressly provided in this Second Amendment (including as to the Applicable Rate and call
protection) and the Credit Agreement (as modified hereby), the 2018 Replacement Term Loans shall be on terms identical to the Original Replaced Term Loans (including as to maturity, Guarantors, Collateral (and ranking) and payment priority). 

(ii)    On the Second Amendment Effective Date, all then outstanding Original Replaced Term Loans shall be refinanced in
full as follows: 
 (w)    The outstanding principal amount of the Original Replaced Term Loan of each
Lender which (i) is an existing Lender under the Credit Agreement prior to giving effect to this Second Amendment (each, an “Existing Lender”) and (ii) is not party hereto as a 2018 Replacement Lender (a Lender meeting the
requirements of clauses (i) and (ii), each, a “Non-Converting Lender”) shall be repaid in full in Cash. 

(x)    To the extent any Existing Lender has a 2018 Replacement Term Loan Conversion Amount (as defined in
the Credit Agreement as amended hereby) that is less than the full outstanding principal amount of the Original Replaced Term Loan of such Lender, such Lender shall be repaid in Cash in an amount equal to the difference between the outstanding
principal amount of the Original Replaced Term Loan of such Lender and such Lender’s 2018 Replacement Term Loan Conversion Amount (the “Non-Converting Portion”). 

(y)    The outstanding principal amount of the Original Replaced Term Loan of each Existing Lender which
has executed this Second Amendment as a “2018 Converting Lender” (each, a “2018 Converting Lender”) shall automatically be converted into a term loan (each, a “Converted 2018 Replacement Term Loan”) in a
principal amount equal to such 2018 Converting Lender’s 2018 Replacement Term Loan Conversion Amount (each such conversion, a “2018 Term Loan Conversion”). 

  
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 (z)    Each Person that has executed this Second Amendment as
a “New 2018 Replacement Lender” (each, a “New 2018 Replacement Lender” and, together with the 2018 Converting Lenders, collectively, the “2018 Replacement Lenders”) severally agrees to make to the
Borrowers a new term loan (each, a “New 2018 Replacement Term Loan” and, collectively, the “New 2018 Replacement Term Loans” and, together with the Converted 2018 Replacement Term Loans, the “2018
Replacement Term Loans”) in Dollars in a principal amount equal to the amount set forth opposite such New 2018 Replacement Lender’s name on Exhibit A hereto (as to any New 2018 Replacement Lender, its “2018 Replacement
Term Loan Commitment”) on the Second Amendment Effective Date. 
 (iii)    Each 2018 Replacement Lender hereby
agrees to “fund” its 2018 Replacement Term Loan as follows: (x) each 2018 Converting Lender shall “fund” its 2018 Replacement Term Loan to the Borrowers by converting all or a portion of its then outstanding principal amount
of Original Replaced Term Loan into a 2018 Replacement Term Loan in a principal amount equal to such 2018 Converting Lender’s 2018 Replacement Term Loan Conversion Amount as provided in clause (ii)(y) above and (y) each New 2018
Replacement Lender shall fund in Cash to the Borrowers an amount equal to such New 2018 Replacement Lender’s 2018 Replacement Term Loan Commitment. 

(iv)    The Converted 2018 Replacement Term Loans subject to the 2018 Term Loan Conversion shall be allocated ratably to
the outstanding Borrowings of Original Replaced Term Loans (based upon the relative principal amounts of Borrowings of Original Replaced Term Loans subject to different Interest Periods immediately prior to giving effect thereto). Each resulting
“borrowing” of Converted 2018 Replacement Term Loans shall constitute a new “Borrowing” under the Credit Agreement and be subject to the same Interest Period (and the same LIBO Rate) applicable to the Borrowing of Original
Replaced Term Loans to which it relates, which Interest Period shall continue in effect until such Interest Period expires and a new Type of Borrowing is selected in accordance with the provisions of Section 2.08 of the
Credit Agreement. New 2018 Replacement Term Loans shall be initially incurred pursuant to “borrowings” of LIBO Rate Loans which shall be allocated ratably to the outstanding “deemed” Borrowings of Converted 2018 Replacement Term
Loans on the Second Amendment Effective Date (based upon the relative principal amounts of the deemed Borrowings of Converted 2018 Replacement Term Loans subject to different Interest Periods on the Second Amendment Effective Date after giving
effect to the foregoing provisions of this clause (iv)). Each such “borrowing” of New 2018 Replacement Term Loans shall (A) be added to (and made a part of) the related deemed Borrowing of Converted 2018 Replacement Term Loans
and (B) be subject to (x) an Interest Period which commences on the Second Amendment Effective Date and ends on the last day of the Interest Period applicable to the related deemed Borrowing of Converted 2018 Replacement Term Loans to
which it is added and (y) the same LIBO Rate applicable to such deemed Borrowing of Converted 2018 Replacement Term Loans. 

(v)    On the Second Amendment Effective Date, the Borrowers shall pay in Cash (a) all accrued and unpaid interest on
the Original Replaced Term Loans through the Second Amendment Effective Date and (b) to each Non-Converting Lender and each 2018 Converting Lender with a
Non-Converting Portion (solely with respect to such Non-Converting Portion), any breakage loss or expenses due under Section 2.16 of the Credit
Agreement (it being understood that existing 

  
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Interest Periods of the Original Replaced Term Loans held by 2018 Replacement Lenders prior to the Second Amendment Effective Date shall continue on and after the Second Amendment Effective Date
pursuant to preceding clause (iv) and shall accrue interest in accordance with Section 2.13 of the Credit Agreement (as modified hereby) on and after the Second Amendment Effective Date as if the Second
Amendment Effective Date were a new Borrowing date). Notwithstanding anything to the contrary herein or in the Credit Agreement, each 2018 Converting Lender agrees, and each Existing Lender agrees (by execution of an Assignment and Assumption with
respect to any 2018 Replacement Term Loans), to waive any entitlement to any breakage loss or expenses due under Section 2.16 of the Credit Agreement with respect to the repayment of any Original Replaced Term Loans of any
such Lender with the proceeds of 2018 Replacement Term Loans on the Second Amendment Effective Date. 
 (vi)    Promptly
following the Second Amendment Effective Date, all Promissory Notes, if any, evidencing the Original Replaced Term Loans shall be cancelled and returned to the Borrowers, and any 2018 Replacement Lender may request that its 2018 Replacement Term
Loan be evidenced by a Promissory Note pursuant to Section 2.10(e) of the Credit Agreement. 

(vii)    Notwithstanding anything to the contrary contained in the Credit Agreement, all proceeds of the New 2018
Replacement Term Loans (if any) will be used solely to repay outstanding Original Replaced Term Loans of Non-Converting Lenders (if any) and outstanding Original Replaced Term Loans of 2018 Converting Lenders
in an amount equal to the Non-Converting Portion (if any) of such 2018 Converting Lenders’ Original Replaced Term Loans, in each case, on the Second Amendment Effective Date. 

(b)    Subject to the satisfaction of the conditions set forth in Section 2 hereof, upon the
making of the 2018 Replacement Term Loans, the Credit Agreement is hereby amended as follows: 

(i)    The definition of “Applicable Rate” appearing in
Section 1.01 of the Credit Agreement is hereby amended by amending and restating such definition in its entirety as follows: 

“Applicable Rate” means, for any day, with respect to any ABR Term Loan or LIBO Rate Term Loan, the applicable
rate per annum set forth below under the caption “LIBO Rate Spread” or “ABR Spread”, as the case may be, based upon the Senior Secured Leverage Ratio as of the most recent Adjustment Date; provided that until the first
Adjustment Date occurring at least one full Fiscal Quarter ended after the Second Amendment Effective Date, the “Applicable Rate” shall be the applicable rate per annum set forth below in Category 1: 

 

									
	Senior Secured Leverage Ratio	  	LIBO Rate Spread	 	 	ABR Spread	 
	 Category 1
	  				 			
			
	 Senior Secured Leverage Ratio greater than 3.20 to 1.00
	  	 	2.75	% 	 	 	1.75	% 
	 Category 2
	  				 			
			
	 Senior Secured Leverage Ratio equal to or less than 3.20 to 1.00
	  	 	2.50	% 	 	 	1.50	% 

  
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 The Applicable Rate shall be adjusted quarterly on a prospective basis on each Adjustment Date
based upon the Senior Secured Leverage Ratio in accordance with the table above; provided that for so long as a Default or Event of Default has occurred and is continuing, the Applicable Rate shall not be subject to adjustment to any stepdown
based on lower Senior Secured Leverage Ratio as provided herein. 
 (ii)    The definition of
“Commitment” in Section 1.01 of the Credit Agreement is hereby amended by amending and restating it in its entirety as follows: 

“Commitment” means (i) with respect to each Lender on the Closing Date, the commitment of such Lender to
make the Term Loans hereunder in an aggregate amount not to exceed the amount set forth opposite such Lender’s name on the Commitment Schedule as such amount may be adjusted from time to time in accordance with this Agreement, (ii) with
respect to each New 2016 Replacement Lender on the First Amendment Effective Date, the commitment of such Lender to make the 2016 Replacement Term Loans as provided in Section 1 of the First Amendment in an aggregate amount not to exceed the
2016 Replacement Term Loan Commitment of such New 2016 Replacement Lender, as such amount may be adjusted from time to time in accordance with this Agreement and (iii) with respect to each New 2018 Replacement Lender on the Second Amendment
Effective Date, the commitment of such Lender to make the 2018 Replacement Term Loans as provided in Section 1 of the Second Amendment in an aggregate amount not to exceed the 2018 Replacement Term Loan Commitment of such New 2018 Replacement
Lender, as such amount may be adjusted from time to time in accordance with this Agreement. The aggregate amount of the Lenders’ Commitments on the Closing Date (immediately prior to the incurrence of the Term Loans on such date) is
$1,340,000,000. The aggregate amount of the Lenders’ Commitments on the First Amendment Effective Date (immediately prior to the incurrence of the 2016 Replacement Term Loans on such date) is $1,226,600,000 less the aggregate principal
amount of all 2016 Replacement Term Loan Conversion Amounts. The aggregate amount of the Lenders’ Commitments on the Second Amendment Effective Date (immediately prior to the incurrence of the 2018 Replacement Term Loans on such date) is
$1,211,267,500 less the aggregate principal amount of all 2018 Replacement Term Loan Conversion Amounts. 

(iii)    The definition of “Term Loans” in Section 1.01 of the
Credit Agreement is hereby amended by amending and restating it in its entirety as follows: 
 “Term Loans”
means (a) prior to the First Amendment Effective Date and the making of the 2016 Replacement Term Loans pursuant to the First Amendment, a Loan by a Lender to the Borrowers pursuant to Section 2.01(a) , (b) on and
after 

  
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the First Amendment Effective Date and upon the making of the 2016 Replacement Term Loans pursuant to the First Amendment but prior to the Second Amendment Effective Date and the making of the
2018 Replacement Term Loans pursuant to the Second Amendment, the 2016 Replacement Term Loans made pursuant to, and in accordance with the terms of, Section 2.01(b) and the First Amendment (including by way of the 2016 Term
Loan Conversion) and (c) on and after the Second Amendment Effective Date and upon the making of the 2018 Replacement Term Loans pursuant to the Second Amendment, the 2018 Replacement Term Loans made pursuant to, and in accordance with the
terms of, Section 2.01(c) and the Second Amendment (including by way of the 2018 Term Loan Conversion); provided that on and after the incurrence of any Incremental Term Loans, Refinancing Term Loans, Extended Term
Loans and Replacement Term Loans, the term “Term Loans” as used in Section 9.05(g) shall include all such Incremental Term Loans, Refinancing Term Loans, Extended Term Loans and Replacement Term Loans, as the case
may be. 
 (iv)    Section 1.01 of the Credit Agreement is hereby further amended by adding the
following definitions in appropriate alphabetical order as follows: 
 “2018 Converting Lender” has the
meaning provided in the Second Amendment. 
 “2018 Replacement Term Loan” has the meaning provided in the
Second Amendment. 
 “2018 Replacement Term Loan Commitment” has the meaning provided in the Second
Amendment. 
 “2018 Replacement Term Loan Conversion Amount” shall mean, as to any 2018 Converting Lender,
the amount determined by the 2018 Replacement Term Loan Lead Arranger and the Borrower Agent as the final amount of such 2018 Converting Lender’s 2018 Term Loan Conversion on the Second Amendment Effective Date and notified to the
Administrative Agent and each such 2018 Converting Lender by the 2018 Replacement Term Loan Lead Arranger on or prior to the Second Amendment Effective Date. The “2018 Replacement Term Loan Conversion Amount” of any 2018 Converting Lender
shall not exceed (but may be less than) the principal amount of such 2018 Converting Lender’s Original Replaced Term Loans. All such determinations made by the 2018 Replacement Term Loan Lead Arranger and the Borrower Agent shall, absent
manifest error, be final, conclusive and binding on the Borrowers and the Lenders, and the Administrative Agent, the 2018 Replacement Term Loan Lead Arranger and the Borrowers shall have no liability to any Person with respect to such determination
absent gross negligence or willful misconduct, in each case, as determined by a court of competent jurisdiction in a final and non-appealable judgment. 

“2018 Replacement Term Loan Lead Arranger” shall mean Credit Suisse Securities (USA) LLC, in its capacity as a
joint lead arranger and joint bookrunner with respect to the Second Amendment and the 2018 Replacement Term Loans. 

  
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 “2018 Term Loan Conversion” has the meaning provided in
the Second Amendment. 
 “Adjustment Date” means the date of delivery of financial statements required to be
delivered pursuant to Section 5.01(b) or Section 5.01(c), as applicable. 

“Second Amendment” shall mean the Second Amendment to Term Loan Credit Agreement, dated as of
February 16, 2018, by and among Holdings, the Borrowers, the Administrative Agent and the 2018 Replacement Lenders (as defined therein). 

“Second Amendment Effective Date” has the meaning provided in the Second Amendment. 

“New 2018 Replacement Lender” has the meaning provided in the Second Amendment. 

“Original Replaced Term Loans” has the meaning provided in the Second Amendment. 

(v)    Section 2.01 of the Credit Agreement is hereby amended by inserting the following clause (c) at the end
of said Section: 
 “(c) On the Second Amendment Effective Date, (i) each New 2018 Replacement Lender severally
agrees to make to the Borrowers a 2018 Replacement Term Loan denominated in Dollars in a principal amount equal to such Lender’s 2018 Replacement Term Loan Commitment and (ii) each 2018 Converting Lender agrees that, without any further
action by any party to this Agreement, a portion of such 2018 Converting Lender’s Original Replaced Term Loans equal to such 2018 Converting Lender’s 2018 Replacement Term Loan Conversion Amount shall automatically be converted into a 2018
Replacement Term Loan to the Borrowers in Dollars and in a like principal amount, in each case in accordance with the terms and conditions of the Second Amendment.” 

(vi)    Section 2.09 of the Credit Agreement is hereby amended by amending and restating the text of
said Section as follows: 
 “The Commitment of each Lender as in effect on the Closing Date shall automatically terminate in its
entirety on the Closing Date (after giving effect to the incurrence of Term Loans on such date). The 2016 Replacement Term Loan Commitment of each New 2016 Replacement Lender 

  
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shall automatically terminate in its entirety on the First Amendment Effective Date (after giving effect to the incurrence of the New 2016 Replacement Term Loans on such date). The 2018
Replacement Term Loan Commitment of each New 2018 Replacement Lender shall automatically terminate in its entirety on the Second Amendment Effective Date (after giving effect to the incurrence of the New 2018 Replacement Term Loans on such
date).” 
 (vii)    Section 2.10(a) of the Credit Agreement is hereby amended by deleting the
text “First Amendment Effective Date” appearing therein and inserting the text “Second Amendment Effective Date” in lieu thereof. 

(viii)    Section 2.11(b)(i) of the Credit Agreement is hereby amended by deleting the text
“December 31, 2015” appearing therein and inserting the text “December 31, 2018” in lieu thereof. 

(ix)    Section 2.12(c) of the Credit Agreement is hereby amended by deleting each reference to
“First Amendment Effective Date” appearing therein and inserting the text “Second Amendment Effective Date” in lieu thereof. 

(x)    Section 5.01(d) of the Credit Agreement is hereby amended by (i) deleting the text
“and” appearing at the end of clause (B) thereof and (ii) inserting the following immediately after clause (C) appearing therein: 

“, and (D) in the case of financial statements delivered pursuant to Sections 5.01(b) and 5.01(c) on an Adjustment Date
on which the Applicable Rate is to be changed in accordance with the definition thereof, setting forth a reasonably detailed calculation of the Senior Secured Leverage Ratio.” 

(xi)    Section 5.11 of the Credit Agreement is hereby amended by inserting the following sentence
immediately after the second sentence appearing therein: 
 “All proceeds of the 2018 Replacement Term Loans incurred on the Second
Amendment Effective Date shall be used to repay and/or replace all Term Loans outstanding immediately prior to the Second Amendment Effective Date.” 

(c)    Each Borrower hereby consents, for purposes of Section 9.05(b)(i)(A) of the Credit
Agreement, to the assignment on or within 30 days of the Second Amendment Effective Date of any 2018 Replacement Term Loans by any New 2018 Replacement Lender to (i) any Person that was an Existing Lender on the Second Amendment Effective Date
(immediately prior to giving effect thereto) or (ii) any Eligible Assignee separately identified, and acceptable, to the Borrower Agent. 

SECTION 2. Conditions of Effectiveness of this Second Amendment. This Second Amendment shall become effective on the date when the
following conditions shall have been satisfied (such date, the “Second Amendment Effective Date”): 

(a)    Holdings, the Borrowers, the Administrative Agent and the 2018 Replacement Lenders shall have signed
a counterpart hereof (whether the same or different counterparts) and shall have delivered the same to LendAmend LLC online via www.LendAmend.com or via e-mail to PartyCityFeb18@lendamend.com;

  
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 (b)    the Borrowers shall have paid (or shall pay
substantially concurrently with the effectiveness of this Second Amendment), by wire transfer of immediately available funds, (i) to the 2018 Replacement Term Loan Lead Arranger, all fees as have been separately agreed and (ii) to the
Administrative Agent, for the ratable account of each Existing Lender, all accrued but unpaid interest on the Original Replaced Term Loans through the Second Amendment Effective Date; 

(c)    on the Second Amendment Effective Date and after giving effect to this Second Amendment, no Default
under Sections 7.01(a), 7.01(f) or 7.01(g) of the Credit Agreement or Event of Default shall have occurred and be continuing and the Administrative Agent shall have received from the Borrowers a certificate executed by a
Responsible Officer of the Borrower Agent, certifying the foregoing; 
 (d)    the Administrative Agent
shall have received the Acknowledgment and Confirmation, substantially in the form of Exhibit B hereto, executed and delivered by a Responsible Officer of each of the Borrowers and each other Loan Party; 

(e)    there shall have been delivered to the Administrative Agent (A) a certificate, dated as of the
Second Amendment Effective Date, executed by a Responsible Officer (which shall be deemed for this purpose to include any Secretary or any Assistant Secretary) of Holdings and each of the Borrowers certifying (i) that no amendments or
modifications have been made to the Organizational Documents of Holdings and each of the Borrowers since the same were delivered to the Administrative Agent prior to the Second Amendment Effective Date, (ii) that attached thereto are true and
correct copies of resolutions of the board of directors of Holdings and the Borrowers approving and authorizing the execution, delivery and performance of this Second Amendment and the performance of the Credit Agreement (as amended by this Second
Amendment) and the Form of Acknowledgement and Confirmation attached as Exhibit B hereto, as applicable, and that such resolutions are in full force and effect without modification or amendment and (iii) as to the incumbency and specimen
signature of each officer or authorized person executing this Second Amendment or any other document delivered in connection herewith on behalf of Holdings and each of the Borrowers (together with a certificate of another officer or authorized
person as to the incumbency and specimen signature of the officer or authorized person executing the certificate in this clause (iii), and (B) good standing certificates for Holdings and the Borrowers from the jurisdiction in which they are
organized; 
 (f)    the Administrative Agent shall have received from the Borrower Agent a solvency
certificate from the chief financial officer of the Borrower Agent (after giving effect to the incurrence of the 2018 Replacement Term Loans on the Second Amendment Effective Date and the application of the proceeds thereof) substantially in the
form of Exhibit H to the Credit Agreement; 
 (g)    the Administrative Agent shall have received
an opinion from Ropes & Gray LLP, special New York counsel to the Loan Parties, addressed to the Administrative Agent, the Collateral Agent, the 2018 Replacement Term Loan Lead Arranger and the Lenders; and 

  
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 (h)    the Administrative Agent shall have received a
“Life of Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to the Mortgaged Properties (together with a notice about special flood hazard area status and flood disaster assistance, duly executed by
the Borrower or the applicable Subsidiary (if required), and evidence of flood insurance, in the event any such Mortgaged Properties or portion thereof is located in a special flood hazard area). 

SECTION 3. Mortgaged Property. Within 90 days after the Second Amendment Effective Date (or such later date as the Administrative Agent
may agree in its sole discretion), the Administrative Agent shall have received: 
 (a)    a fully
executed counterpart of an amendment to the existing Mortgage (the “Mortgage Amendment”; together with the existing Mortgage, the “Amended Mortgage”), duly executed by the applicable Subsidiary, together with
evidence that such counterpart has been delivered to the title insurance company insuring the Amended Mortgage for recording; 

(b)    a date down endorsement in connection with the existing lender’s title insurance policy
insuring the existing Mortgage, which endorsement shall insure that the Amended Mortgage is a valid and enforceable Lien on the Mortgaged Property, free of any other Liens except Permitted Liens; 

(c)    such affidavits and certificates as shall be required to induce the title company to issue the
endorsement contemplated in subparagraph (b) above and evidence of payment of all applicable title insurance premiums, search and examination charges, mortgage recording taxes, if applicable, and related charges required for the issuance
of such endorsement; and 
 (d)    an opinion from local counsel in the state where the Mortgaged
Property is located, in form and substance reasonably satisfactory to the Administrative Agent. 
 SECTION 4. Costs and Expenses.
Each Borrower hereby reconfirms its obligations (a) pursuant to Section 9.03 of the Credit Agreement to pay and reimburse the Administrative Agent in accordance with the terms thereof and (b) to pay and reimburse
the 2018 Replacement Term Loan Lead Arranger in accordance with arrangements that have been separately agreed. 
 SECTION 5.
Remedies. This Second Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents. 

SECTION 6. Representations and Warranties. To induce the Administrative Agent and the 2018 Replacement Lenders to enter into this
Second Amendment, each of Holdings and the Borrowers represents and warrants to the Administrative Agent and the 2018 Replacement Lenders on and as of the Second Amendment Effective Date that, in each case: 

(a)    this Second Amendment has been duly authorized, executed and delivered by it and each of this Second Amendment and
the Credit Agreement (as amended by this Second Amendment) constitute its legal, valid and binding obligation, enforceable against it in accordance 

  
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with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws of general applicability relating to or
limiting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law and (ii) the need for filings and registrations necessary to create or perfect the Liens
on Collateral granted by the Loan Parties in favor of the Collateral Agent; 
 (b)    all representations and warranties
contained in the Credit Agreement and in the other Loan Documents are true and correct in all material respects with the same effect as though such representations and warranties had been made on the Second Amendment Effective Date (it being
understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date); and 

(c)    the 2018 Replacement Term Loans have been incurred in compliance with the requirements of
Section 9.02(c) of the Credit Agreement. 
 SECTION 7. Intercreditor Acknowledgement. In accordance with
Section 3.4(c)(i) of the Intercreditor Agreement, the 2018 Replacement Lenders hereby notify the ABL Facility Security Agent and the ABL Facility Secured Parties (each as defined in the Intercreditor Agreement) that the
Original Replaced Term Loans shall be Refinanced (as defined in the Intercreditor Agreement) pursuant to this Second Amendment and the Credit Agreement (as modified hereby), and hereby (i) acknowledge and agree to the terms of the Intercreditor
Agreement and (ii) agree to be bound by all terms and conditions of the Intercreditor Agreement as a “Term Loan Secured Party”. The 2018 Replacement Lenders hereby authorize the Administrative Agent to provide on its behalf any
notice to the ABL Facility Security Agent and the ABL Facility Secured Parties (each as defined in the Intercreditor Agreement) as it may deem necessary or advisable (in its sole discretion) to ensure compliance with
Section 3.4(c)(i) of the Intercreditor Agreement. 
 SECTION 8. Reference to and Effect on the Credit Agreement
and the Loan Documents. 
 (a)    On and after the Second Amendment Effective Date, (i) each reference in the
Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended by this Second Amendment;
(ii) the 2018 Replacement Term Loans shall constitute “Term Loans” for all purposes under the Credit Agreement (other than for purposes of Recital A to the Credit Agreement, Section 2.01(a) of the Credit
Agreement, the first sentence of Section 2.09 of the Credit Agreement, Sections 3.13 and 4.01 of the Credit Agreement, the first sentence of Section 5.11 of the Credit Agreement,
clause (i) of the definition of Commitment and the definition of “Transactions”); and (iii) each 2018 Replacement Lender shall constitute a “Lender” as defined in the Credit Agreement. 

(b)    The Credit Agreement and each of the other Loan Documents, as specifically amended by this Second Amendment, are
and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to
secure the payment of all Secured Obligations of the Loan Parties, in each case, as amended by this Second Amendment. 

  
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 (c)    The execution, delivery and effectiveness of this Second Amendment
shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 

SECTION 9. Governing Law. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. 
 SECTION 10. Counterparts. This Second Amendment may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the Borrowers
and the Administrative Agent. Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this Second Amendment shall be effective as delivery of an original executed counterpart of this Second Amendment. 

[The remainder of this page is intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and
deliver this Second Amendment as of the date first above written. 
  

					
	PARTY CITY HOLDINGS INC.
		
	By:	 	 /s/ Daniel J. Sullivan

		 	Name:	 	Daniel J. Sullivan
		 	Title:	 	Chief Financial Officer
	
	PARTY CITY CORPORATION
		
	By:	 	 /s/ Michael A. Correale

		 	Name:	 	Michael A. Correale
		 	Title:	 	Vice President
	
	PC INTERMEDIATE HOLDINGS, INC.
		
	By:	 	 /s/ James M. Harrison

		 	Name:	 	James M. Harrison
		 	Title:	 	President

  
 Signature Page to Second
Amendment to Party City Term Loan Credit Agreement 

					
	DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent
		
	By:	 	 /s/ Dusan Lazarov

		 	Name:	 	Dusan Lazarov
		 	Title:	 	Director
		
	By:	 	 /s/ Marcus Tarkington

		 	Name:	 	Marcus Tarkington
		 	Title:	 	Director

  
 Signature Page to Second
Amendment to Party City Term Loan Credit Agreement 

					
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a New 2018 Replacement Lender
		
	By:	 	 /s/ Vipul Dhadda

		 	Name:	 	Vipul Dhadda
		 	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Brady Bingham

		 	Name:	 	Brady Bingham
		 	Title:	 	Authorized Signatory

  
 Signature Page to Second
Amendment to Party City Term Loan Credit Agreement 

 BY ITS EXECUTION OF THIS SIGNATURE PAGE, THE UNDERSIGNED HEREBY (I) REQUESTS TO CONVERT THE
FULL PRINCIPAL AMOUNT OF ITS ORIGINAL REPLACED TERM LOANS INTO CONVERTED 2018 REPLACEMENT TERM LOANS PURSUANT TO, AND ON THE TERMS AND CONDITIONS SET FORTH IN, THIS SECOND AMENDMENT TO TERM LOAN CREDIT AGREEMENT AND (II) ACKNOWLEDGES AND AGREES
THAT ITS 2018 REPLACEMENT TERM LOAN CONVERSION AMOUNT MAY BE LESS THAN THE FULL PRINCIPAL AMOUNT OF ITS ORIGINAL REPLACED TERM LOANS WHICH IT REQUESTS TO CONVERT HEREUNDER. 

[Lender signature pages on file with the Administrative Agent] 

  
 Signature Page to Second
Amendment to Party City Term Loan Credit Agreement 

 EXHIBIT A 

NEW 2018 REPLACEMENT TERM LOAN COMMITMENTS 
  

					
	 New 2018 Replacement Lender
	  	2018 Replacement Term Loan Commitment	 
	 Credit Suisse AG, Cayman Islands Branch
	  	$	212,437,714.70	 

 EXHIBIT B 

FORM OF ACKNOWLEDGMENT AND CONFIRMATION 

1.    Reference is made to the Second Amendment, dated as of February 16, 2018 (the “Second
Amendment”), to Term Loan Credit Agreement, dated as of August 19, 2015 (as amended by the First Amendment to Credit Agreement, dated as of October 20, 2016 and as otherwise amended, amended and restated, supplemented or otherwise
modified prior to the date hereof, the “Credit Agreement”), among PARTY CITY HOLDINGS INC., a Delaware corporation (the “Borrower Agent”), PARTY CITY CORPORATION, a Delaware corporation (the “Subsidiary
Borrower” and, together with the Borrower Agent, the “Borrowers”), PC INTERMEDIATE HOLDINGS, INC., a Delaware corporation (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as
administrative agent (in such capacity, the “Administrative Agent”) and each 2018 Replacement Lender party thereto. Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Credit Agreement or
Second Amendment, as applicable. 
 2.    Certain provisions of the Credit Agreement are being amended and/or modified
pursuant to the Second Amendment. Each of the parties hereto hereby agrees that, with respect to each Loan Document to which it is a party, after giving effect to the Second Amendment: 

(a)    all of its obligations, liabilities and indebtedness under such Loan Document, including guarantee
obligations, shall remain in full force and effect on a continuous basis (including, without limitation, with respect to 2018 Replacement Term Loans); and 

(b)    all of the Liens and security interests created and arising under such Loan Document remain in full
force and effect on a continuous basis, and the perfected status and priority as described in Section 3.16 of the Credit Agreement of each such Lien and security interest continues in full force and effect on a continuous
basis, unimpaired, uninterrupted and undischarged as collateral security for the Secured Obligations (including, without limitation, the 2018 Replacement Term Loans), to the extent provided in such Loan Documents. 

3.    THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK. 
 4.    This Acknowledgment and Confirmation may be executed by one or more of the parties hereto on any
number of separate counterparts (including by telecopy or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

[rest of page intentionally left blank] 

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

			
	PC INTERMEDIATE HOLDINGS, INC.
		
	By:	 	
                     
                                        

	Name:	 	
	Title:	 	

  
 Signature Page to
Acknowledgment and Confirmation of Party City Term Loan Second Amendment 

			
	PARTY CITY HOLDINGS INC.
	PARTY CITY CORPORATION
	ANAGRAM INTERNATIONAL, INC.
	ANAGRAM INTERNATIONAL HOLDINGS, INC.
	AM-SOURCE, LLC
	AMSCAN INC.
	TRISAR, INC.
		
	By:	 	
                     
                    

	Name:	 	
	Title:	 	
	
	ANAGRAM EDEN PRAIRIE PROPERTY HOLDINGS LLC
	
	By: PARTY CITY HOLDINGS, INC., its sole member
		
	By:	 	
                     
                    

	Name:	 	
	Title:	 	
	
	AMSCAN PURPLE SAGE, LLC
	AMSCAN NM LAND, LLC
	
	By: AMSCAN INC., its sole manager
		
	By:	 	
                     
                    

	Name:	 	
	Title:	 	
	
	PARTY HORIZON INC.
		
	By:	 	
                     
                    

	Name:	 	
	Title:Exhibit 10.1

 

TENDER AND SUPPORT AGREEMENT

 

This TENDER AND SUPPORT AGREEMENT (this “Agreement”), dated as of February 20, 2018, is entered into by and among QUALCOMM RIVER HOLDINGS B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) organized under the Laws of The Netherlands (“Buyer”), and the undersigned shareholders of NXP SEMICONDUCTORS N.V., a public limited liability company (naamloze vennootschap) organized under the Laws of The Netherlands (the “Company”) set forth on Schedule A hereto (each, a “Shareholder”).  All terms used but not otherwise defined in this Agreement shall have the respective meanings ascribed to such terms in the Purchase Agreement and the Purchase Agreement Amendment (each as defined below), in each case as of the date hereof.

 

WHEREAS, as of the date hereof, each Shareholder is the owner of the number of Shares set forth opposite the Shareholder’s name on Schedule A (all such Shares set forth on Schedule A next to the Shareholder’s name, together with any Shares that are hereafter issued to or that ownership of is otherwise directly or indirectly acquired by the Shareholder prior to the termination of this Agreement, including for the avoidance of doubt any Shares acquired by the Shareholder upon the conversion of any securities convertible into Shares after the date hereof, (but excluding, for the avoidance of doubt, any Shares that may be deemed to be beneficially owned because they are the subject of an option or other derivatives contract, but are not capable of being voted or tendered by Shareholder) being referred to herein as the “Subject Shares”);

 

WHEREAS, Buyer and the Company previously entered into the Purchase Agreement, dated as of October 27, 2016 (as amended, restated, supplemented or otherwise modified in accordance with the terms thereof, the “Purchase Agreement”), pursuant to which, among other things, (a) Buyer has commenced a tender offer to purchase any and all of the outstanding Shares and (b) following the closing of the Subsequent Offering Period (as it may be extended by the Minority Exit Offering Period), it is Buyer’s intent to effectuate, and to cause the Company to effectuate, the Post-Offer Reorganization, in each case, upon the terms and subject to the conditions set forth in the Purchase Agreement;

 

WHEREAS, concurrent with the execution of this Agreement, Buyer and the Company are entering into an amendment to the Purchase Agreement (the “Purchase Agreement Amendment”), a copy of which has been previously provided to Shareholder, so as to, among other things, increase the Offer Consideration from $110.00 per Share in cash to $127.50 per Share in cash; and

 

WHEREAS, as a condition to its willingness to enter into the Purchase Agreement Amendment, and as an inducement and consideration for Buyer to enter into the Purchase Agreement Amendment, each Shareholder has agreed to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

 

 

ARTICLE I
  AGREEMENT TO TENDER AND VOTE

 

1.1          Agreement to Tender.

 

(a)           Subject to the terms of this Agreement, each Shareholder agrees to tender or cause to be tendered in the Offer all of its Subject Shares pursuant to and in accordance with the terms of the Offer, free and clear of all Share Liens (as defined below) except for Permitted Share Liens.  Without limiting the generality of the foregoing, but subject to the terms of this Agreement, no later than the later of (I) two (2) Business Days following Shareholders’ receipt of written notice from Buyer (a “Buyer Notice”) that (x) all Offer Conditions, other than the Minimum Condition and those conditions that by their nature are to be satisfied in connection with the Closing, have been satisfied and (y) it is Buyer’s expectation to cause the Acceptance Time to occur promptly following the then-current Expiration Time and (II) five (5) Business Days prior to the Expiration Time, each Shareholder shall deliver or cause to be delivered to the depositary designated in the Offer pursuant to the terms of the Offer (i) a letter of transmittal with respect to all of such Shareholder’s Subject Shares complying with the terms of the Offer, (ii) written instructions to such Shareholder’s broker, dealer, commercial bank, trust company or other nominee that such Subject Shares be tendered, including a reference to this Agreement, and requesting delivery of an “agent’s message” (or such other evidence, if any, of transfer as the depository for the Offer may reasonably request) and (iii) all other documents or instruments required to be delivered by all other Company shareholders tendering into the Offer pursuant to the terms of the Offer.  Each Shareholder agrees that, once any of its Subject Shares are tendered, such Shareholder will not withdraw and will cause not to be withdrawn such Subject Shares from the Offer unless and until this Agreement shall have been validly terminated in accordance with Section 5.2; provided, that Shareholder may withdraw its Subject Shares in the event the then-current Expiration Date is extended in accordance with the Purchase Agreement for a period of more than five (5) Business Days so long as such Subject Shares are delivered no less than the later of (x) two (2) Business Days following Shareholders’ receipt of a new Buyer Notice and (y) five (5) Business Days prior to the Expiration Time.

 

(b)           If the Offer is terminated or withdrawn by Buyer, or the Purchase Agreement is validly terminated prior to the Acceptance Time in accordance with its terms, Buyer shall promptly return, and shall cause the depository for the Offer to return, all tendered Shares to the registered holders of such tendered Shares (and in connection with the foregoing, Buyer shall direct the depository to promptly return such tendered Shares).

 

1.2          Voting of Subject Shares.  Subject to the terms of this Agreement, each Shareholder hereby irrevocably and unconditionally agrees that, during the time this Agreement is in effect, at any annual or extraordinary general meeting of the shareholders of the Company, however called, including any adjournment or postponement thereof, and in connection with any action proposed to be taken by written consent of the shareholders of the Company, such Shareholder shall, in each case to the fullest extent that its Subject Shares are entitled to vote thereon: (a) appear at each such meeting or otherwise cause all such Subject Shares to be counted as present thereat for purposes of determining a quorum, and (b) be present (in person or by proxy) and vote (or cause to be voted), or deliver (or cause to be delivered) a written consent with respect to, all of its Subject Shares (i) in favor of any proposal recommended by the Company Board that is intended to facilitate the consummation of the Transactions, (ii) against

 

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any action or agreement that would reasonably be expected to (A) result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company contained in the Purchase Agreement or the Purchase Agreement Amendment, or of such Shareholder contained in this Agreement, or (B) result in any of the conditions set forth in Annex I of the Purchase Agreement not being satisfied on or before the End Date, and (iii) against any Alternative Acquisition Proposal (or any proposal relating to an Alternative Acquisition Proposal) and against any other proposed action, agreement or transaction involving the Company that would reasonably be expected, to impede, interfere with, delay, postpone, adversely affect or prevent the consummation of the Offer or the other Transactions, including (x) any extraordinary corporate transaction, such as a merger, consolidation or other business combination involving the Company (other than the Offer or the other Transactions), (y) a sale, lease, license or transfer of a material amount of assets (including, for the avoidance of doubt, Company Intellectual Property Rights and capital stock of Subsidiaries of the Company) of the Company or any reorganization, recapitalization or liquidation of the Company or (z) any change in the present authorized capitalization of the Company or any amendment or other change to the Company Organizational Documents.  Each Shareholder shall retain at all times the right to vote the Subject Shares in such Shareholder’s sole discretion, and without any other limitation, on any matters that are at any time or from time to time presented for consideration to the Company’s shareholder generally.

 

ARTICLE II
 REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

 

Each Shareholder represents and warrants, severally and not jointly, to Buyer that:

 

2.1          Authorization; Binding Agreement.  Such Shareholder is duly organized and validly existing in good standing under the Laws of the jurisdiction in which it is incorporated or constituted and the consummation of the transactions contemplated hereby are within such Shareholder’s entity powers and have been duly authorized by all necessary entity actions on the part of such Shareholder, and such Shareholder has full power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by such Shareholder and, assuming the due authorization, execution and delivery of this Agreement by Buyer, constitutes a valid and binding obligation of such Shareholder enforceable against such Shareholder in accordance with its terms, subject to the Enforceability Exceptions.

 

2.2          Non-Contravention.  Neither the execution and delivery of this Agreement by such Shareholder nor the consummation by such Shareholder of the transactions contemplated hereby nor compliance by such Shareholder with any provisions herein will (a)  violate, contravene or conflict with, or result in a breach of any provision of, the certificate of incorporation or bylaws (or other similar governing documents) of such Shareholder, (b) require any consent, approval, authorization, declaration or permit of, action by, filing with or notification to, any Governmental Authority on the part of such Shareholder, except for the filing of such reports as may be required under Section 13(d) and Section 14(d) of the 1934 Act in connection with this Agreement and the transactions contemplated hereby, (c) violate, contravene or conflict with, or result in a breach of any provisions of, or require any consent, waiver or approval or result in a default or loss of a benefit (or give rise to any right of termination, cancellation, modification or acceleration or any event that, with the giving of

 

3

 

notice, the passage of time or otherwise, would constitute a default or give rise to any such right) under any of the terms, conditions or provisions of any Contract or other instrument or obligation to which such Shareholder is a party or by which such Shareholder or any of its Subject Shares are bound, (d) result (or, with the giving of notice, the passage of time or otherwise, would result) in the creation or imposition of any Share Lien (as defined below) of any kind on any asset of such Shareholder (other than one created by Buyer or otherwise pursuant to this Agreement) or (e) violate, contravene or conflict with any Law or Order applicable to such Shareholder or by which any of its Subject Shares are bound, except for any of the foregoing as could not reasonably be expected, either individually or in the aggregate, to materially impair, impede, delay or frustrate the ability of such Shareholder to perform such Shareholder’s obligations hereunder on a timely basis.

 

2.3          Ownership of Subject Shares; Total Shares.  Such Shareholder is the direct or indirect owner of all such Shareholder’s Subject Shares, has the right to vote and tender or cause the voting or tendering of such Subject Shares as contemplated hereby, and has, directly or indirectly, good and marketable title to all such Subject Shares free and clear of any Liens, proxies, voting trusts or agreements, options or rights, understandings or arrangements inconsistent with this Agreement or the transactions contemplated hereby, or any other encumbrances or restrictions whatsoever on title, transfer or exercise of any rights of a shareholder in respect of such Subject Shares (collectively, “Share Liens”), except for any such Share Lien that may be imposed pursuant to (i) this Agreement, (ii) any applicable restrictions on transfer under the 1933 Act or any state securities Law, (iii) collateral and rehypothecation arrangements with prime brokers in margin accounts; and (iv) any Share Liens that could not reasonably be expected, either individually or in the aggregate, to materially impair the ability of the Shareholder to perform fully its obligations hereunder with respect to the applicable Subject Shares on a timely basis (collectively, “Permitted Share Liens”). The Shares listed on Schedule A opposite such Shareholder’s name constitute all of the Shares owned by such Shareholder as of the date hereof.

 

2.4          Voting Power.  Such Shareholder has voting power with respect to all such Shareholder’s Subject Shares, and power of disposition, power to issue instructions with respect to the matters set forth in Article I and Article IV, power to demand or waive any appraisal rights with respect to the Subject Shares and power to agree to all of the matters set forth in this Agreement, in each case with respect to all such Shareholder’s Subject Shares.

 

2.5          Reliance.  Such Shareholder understands and acknowledges that Buyer is entering into the Purchase Agreement Amendment in reliance upon such Shareholder’s execution, delivery and performance of this Agreement.

 

2.6          Absence of Litigation.  With respect to such Shareholder, as of the date hereof, there is no Action pending against, or, to the knowledge of such Shareholder, threatened against such Shareholder or any of such Shareholder’s properties or assets (including any Subject Shares) before or by any Governmental Authority that would reasonably be expected to prevent, delay or impair the consummation by such Shareholder of the transactions contemplated by this Agreement or otherwise impair such Shareholder’s ability to perform its obligations hereunder.

 

2.7          Brokers.  No broker, finder, financial advisor, investment banker or other Person is entitled to any brokerage, finder’s, financial advisor’s or other similar fee or

 

4

 

commission from the Buyer, the Company or any of their respective Affiliates in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of such Shareholder.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants to the Shareholders that:

 

3.1          Organization and Qualification.  Buyer is a duly organized and validly existing corporation in good standing under the Laws of the jurisdiction of its organization.

 

3.2          Authority for this Agreement.  Buyer has all requisite entity power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by Buyer has been duly and validly authorized by all necessary entity action on the part of Buyer, and no other entity proceedings on the part of Buyer are necessary to authorize this Agreement.  This Agreement has been duly and validly executed and delivered by Buyer and, assuming the due authorization, execution and delivery thereof by each of the Shareholders, constitutes a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to the Enforceability Exceptions.

 

ARTICLE IV
 ADDITIONAL COVENANTS OF THE SHAREHOLDERS AND BUYER

 

Each Shareholder hereby covenants and agrees that until the termination of this Agreement:

 

4.1          No Transfer; No Inconsistent Arrangements.  Except as provided hereunder, during the time this Agreement is in effect, such Shareholder shall not, directly or indirectly, (a) create or permit to exist any Share Lien, other than Permitted Share Liens, on any of such Shareholder’s Subject Shares, (b) transfer, sell, assign gift or otherwise dispose of (including, for the avoidance of doubt, by depositing, submitting or otherwise tendering any such Subject Shares into any tender or exchange offer (other than the Offer)), (collectively, “Transfer”), any of such Shareholder’s Subject Shares, (or consent to any of the foregoing); provided that either Shareholder shall be permitted to Transfer any Subject Shares to the other Shareholder, so long as such Subject Shares continue to be Subject Shares hereunder, (c) enter into any pledging or hedging Contract, derivative arrangement, option or other Contract (including profit sharing agreement) that would prevent Shareholder from delivering the Subject Shares into the Offer or from voting the Subject Shares, in each case, in accordance herewith, (d) grant or permit the grant of any proxy, power-of-attorney or other authorization or consent in or with respect to any such Shareholder’s Subject Shares, (e) deposit or permit the deposit of any of such Shareholder’s Subject Shares into a voting trust or enter into a voting agreement or arrangement with respect to any of such Shareholder’s Subject Shares or (f) take or permit any other action that would prevent the performance of such Shareholder’s obligations hereunder or otherwise make any representation or warranty of such Shareholder herein untrue or incorrect. Any action taken in violation of the foregoing sentence shall be null and void ab initio; provided that the Transfer restrictions set forth in Section 4.1(b) shall terminate as of 11:59 p.m. (New

 

5

 

York City time) on April 25, 2018 (the “Transfer Restriction Cut-Off Time”); it being understood that all Subject Shares not Transferred in accordance with this Agreement after the Transfer Restriction Cut-Off Time shall continue to be subject to all of the restrictions applicable to Subject Shares set forth in this Agreement, including under Article I and this Section 4.1, except for the restrictions set forth in Section 4.1(b).  If any involuntary Transfer of any of such Shareholder’s Subject Shares shall occur (including a sale by such Shareholder’s trustee in any bankruptcy, or a sale to a purchaser at any creditor’s or court sale), the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee) shall take and hold such Subject Shares subject to all of the restrictions, obligations, liabilities and rights under this Agreement, which shall continue in full force and effect until valid termination of this Agreement.  Notwithstanding anything in this Agreement to the contrary, until the termination of this Agreement, such Shareholder shall not, directly or indirectly, accept any tender offer or exchange offer that constitutes an Alternative Acquisition Proposal and shall not tender any Subject Shares in any such tender offer or exchange offer. Nothing in this Agreement shall prohibit any pledging or hedging or entering into any Contract, derivative arrangement, option or other Contract (including profit sharing agreement) that will not prevent Shareholder from delivering the Subject Shares into the Offer or from voting the Subject Shares, in each case, in accordance herewith.  Notwithstanding the foregoing, such Stockholder may make Transfers of its Subject Shares as Buyer may agree in writing in its sole discretion.

 

4.2          Documentation and Information.  Such Shareholder shall not, and shall cause its Affiliates and its and their respective directors, officers and employees not to, and such Shareholder shall, and shall cause its Affiliates to, use their reasonable best efforts to cause its and their respective Representatives not to, make any press release, public announcement or other communication to any Third Party regarding this Agreement and the transactions contemplated hereby or the Purchase Agreement and the Transactions without the prior written consent of Buyer, except (a) as such Shareholder reasonably determines (based on the advice of its legal counsel, which may be in-house counsel) is required to be disclosed by applicable Law (provided that reasonable notice of any such disclosure will be provided to Buyer to the extent legally permissible and reasonably practicable), including any filings with the SEC pursuant to the 1934 Act, or (b) for any such announcement that is supportive of the Transactions and not inconsistent with any press release issued by Buyer or the Company in connection with or relating to the Purchase Agreement Amendment, the Offer and the Transactions.  Such Shareholder (i) consents to and authorizes the publication and disclosure by Buyer of such Shareholder’s identity and holdings of Subject Shares, the nature of such Shareholder’s commitments, arrangements and understandings under this Agreement (including, for the avoidance of doubt, the disclosure of this Agreement) and any other information that Buyer reasonably determines upon the advice of counsel is required to be disclosed by applicable Law in any press release, the Offer Documents (in each case, including all schedules and documents filed with the SEC) or any other disclosure document in connection with the Offer, the Post-Offer Reorganization and the other Transactions (provided that notice of any such disclosure will be provided to such Shareholder to the extent reasonably practicable, the Shareholder will have a reasonable opportunity to provide comments on such disclosure and Buyer shall incorporate any reasonable comments to the portions of any such disclosure that make reference to Shareholder’s identity and holdings as may be provided by such Shareholder), (ii) agrees to promptly give to Buyer and the Company any information in their reasonable possession or control they may

 

6

 

reasonably require for the preparation of any such disclosure documents and (iii) agrees to promptly notify Buyer of any required corrections reasonably known to such Shareholder with respect to any information supplied by such Shareholder specifically for use in any such disclosure document, if and to the extent that any Shareholder reasonably knows such information shall have become false or misleading in any material respect.  Buyer agrees to promptly give to such Shareholder any information regarding Buyer that such Shareholder reasonably requires for the preparation of any documents that such Shareholder is required to file with the SEC in connection with the transactions contemplated hereby, including the filing of any Schedule 13D, Schedule 14D-9 or amendments thereto.

 

4.3                               Adjustments.  In the event of a stock split, stock dividend or distribution, or any change in the Shares by reason of a stock split, reverse stock split, recapitalization, combination, reclassification, readjustment, exchange of shares or the like, the term “Subject Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in the transaction.

 

4.4                               Waiver of Appraisal Rights. Such Shareholder hereby agrees to, and shall cause its Affiliates to, waive and not exercise any rights of appraisal, any dissenters’ rights or any similar rights relating to the Post-Offer Reorganization or any of the other Transactions that such Shareholder or any of its Affiliates may have by virtue of, or with respect to, any Subject Shares.

 

4.5                               No Solicitation.  Such Shareholder shall not, and shall cause its Affiliates and its and their respective directors, officers and employees not to, and such Shareholder shall, and shall cause its Affiliates to, use their reasonable best efforts to cause its and their respective Representatives not to, and shall not publicly announce any intention to, directly or indirectly (a) solicit, initiate or knowingly facilitate, knowingly induce or encourage (including by providing information, cooperation or assistance) any inquiries or the making of any proposal or offer that constitutes or would reasonably be expected to lead to an Alternative Acquisition Proposal, (b) other than informing Persons of the provisions contained in this Section 4.5, enter into, continue or otherwise participate in any discussions or negotiations regarding any Alternative Acquisition Proposal or (c) execute or enter into any letter of intent, memorandum of understanding, agreement in principle, merger agreement, acquisition agreement, option agreement, joint venture agreement, partnership agreement or other Contract (whether or not binding) with respect to an Alternative Acquisition Proposal.  Such Shareholder shall, and shall cause each of its Affiliates and its and their respective directors, officers and employees to, and shall direct each of the Representatives of the Company and its Affiliates to, immediately cease and cause to be terminated any and all existing discussions or negotiations with any Person conducted prior to the date of this Agreement.  Such Shareholder shall as promptly as practicable (and in any event within twenty-four (24) hours) notify Buyer of any Alternative Acquisition Proposal, or any request for information or inquiry that such Shareholder reasonably believes could lead to or contemplates an Alternative Acquisition Proposal, which notification shall include (i) a copy of the applicable written Alternative Acquisition Proposal, request or inquiry (or, if oral, the material terms and conditions of such Alternative Acquisition Proposal, request or inquiry) (including in each case any subsequent material amendments or other material modifications

 

7

 

thereto) and (ii) the identity of the third party making such Alternative Acquisition Proposal, request or inquiry.

 

4.6                               Notice of Certain Events.  Such Shareholder shall notify Buyer of any development occurring after the date hereof that causes, or that would reasonably be expected to cause, any material breach of any of the representations and warranties of such Shareholder set forth in Article II.  Such Shareholder shall promptly notify Buyer of the number of any new Subject Shares acquired by such Shareholder, if any, after the date hereof; it being understood that any such shares shall be subject to the terms of this Agreement as though owned by such Shareholder on the date hereof.  Buyer shall notify such Shareholder of any development occurring after the date hereof that causes, or that would reasonably be expected to cause, any breach of any of the representations and warranties of Buyer set forth in Article III.

 

4.7                               Certain Other Agreements.  During the period from the date of this Agreement through the Closing Date, Buyer shall not, and shall cause Parent not to, enter into any additional, or modify (including by amendment, waiver or termination) any existing, agreements concerning the matters set forth herein with any existing or future shareholder in the Company that have the effect of establishing rights or otherwise benefiting such shareholder with respect to the matters set forth herein in a manner more favorable in any material respect than the rights and benefits established in favor of Shareholder under this Agreement, unless, in any such case, Buyer has agreed to amend this Agreement to provide Shareholder with such rights and benefits.

 

ARTICLE V
 MISCELLANEOUS

 

5.1                               Notices.  All notices, consents, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given (a) on the date of delivery if delivered personally or sent via electronic mail, (b) on the first (1st) Business Day following the date of dispatch if sent by a nationally recognized overnight courier (providing proof of delivery) or (c) on the third (3rd) Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid; provided that the notice or other communication is sent to the address or email address set forth (i) if to Buyer, to the address or email address set forth in Section 9.01 of the Purchase Agreement and (ii) if to the Shareholder, to the Shareholder’s address or email address set forth on a signature page hereto, or to such other address or email address as such party may hereafter specify for the purpose by notice to each other party hereto.

 

5.2                               Termination.  This Agreement shall terminate automatically, without any notice or other action by any Person, upon the first to occur of (a) the termination of the Purchase Agreement in accordance with its terms, (b) the consummation all of the Transactions, (c) upon mutual written consent of the parties to terminate this Agreement, (d) the date of any modification, waiver or amendment to the Purchase Agreement in a manner that decreases the Offer Consideration, changes the form of the Offer Consideration or otherwise would be adverse to Shareholders with respect to timing or certainty of the Closing or (e) upon any material breach of the terms of this Agreement by Buyer.  Upon termination of this Agreement, no party shall have any further obligations or liabilities under this Agreement; provided, however, that (w) nothing set forth in this Section 5.2 shall relieve any party from liability for any breach of

 

8

 

this Agreement prior to termination hereof, (x) the provisions of this Article V shall survive any termination of this Agreement and (y) the provisions of Section 4.4 shall survive any termination of this Agreement in the event the Transactions have been consummated.

 

5.3                               Amendment; Waiver; Third Party Beneficiary.  This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties.  Any agreement on the part of a party to any extension or waiver with respect to this Agreement shall be valid only if set forth in an instrument in writing signed on behalf of such party.  The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.  The parties hereto expressly agree that the Company shall be a third party beneficiary of this Agreement and shall be entitled to enforce any power, right, privilege or remedy of Buyer hereunder.

 

5.4                               Expenses.  All fees and expenses incurred in connection herewith and the transactions contemplated hereby shall be paid by the party incurring such fees and expenses, whether or not the Offer or the other Transactions are consummated.

 

5.5                               Entire Agreement.  This Agreement, together with Schedule A, and the other documents and certificates delivered pursuant hereto, constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to, the subject matter of this Agreement.

 

5.6                               Assignment.  Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties, except that Buyer may assign, in its sole discretion, any of or all its rights, interests and obligations under this Agreement to any one or more direct or indirect wholly owned Subsidiaries or Affiliates controlled by Parent, but no such assignment shall relieve Buyer of any of its obligations under this Agreement.  Any purported assignment without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns.

 

5.7                               Specific Enforcement; Jurisdiction.  (a) The parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached, and that monetary damages, even if available, would not be an adequate remedy therefor.  It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions, or any other appropriate form of equitable relief, to prevent breaches of this Agreement and to enforce specifically the performance of the terms and provisions of this Agreement in any court referred to in Section 5.7(b), without the necessity of proving the inadequacy of money damages as a remedy (and each party hereby waives any requirement for the securing or posting of any bond in connection with such remedy), this being in addition to any other remedy to which they are entitled at law or in equity. Each of the parties acknowledges and agrees that the right of specific enforcement is an integral part of the transactions contemplated by this Agreement and without such right, none of the parties would have entered into this Agreement.

 

(b)                                 Each of the parties hereto hereby (a) irrevocably and unconditionally submits to the personal jurisdiction of the Chosen Courts, (b) agrees that it will not attempt to

 

9

 

deny or defeat such personal jurisdiction by motion or other request for leave from any such Chosen Court, (c) agrees that any Actions arising in connection with or relating to this Agreement or the transactions contemplated hereby shall be brought, tried and determined only in the Chosen Courts, (d) waives any claim of improper venue or any claim that the Chosen Courts are an inconvenient forum and (e) agrees that it will not bring any Action relating to this Agreement or the Transactions in any court other than the Chosen Courts.  Each of the parties hereto hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby: (i) any claim that such party is not personally subject to the jurisdiction of the Chosen Courts as described herein for any reason; (ii) that it or its property is exempt or immune from jurisdiction of any such Chosen Court or from any legal process commenced in such courts (whether through service of process, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise); and (iii) that (A) the Action in any such court is brought in an inconvenient forum, (B) the venue of such Action is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such Chosen Courts.

 

5.8                               WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF OR THEREOF.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF AN ACTION, (B) SUCH PARTY HAS CONSIDERED AND UNDERSTANDS THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.8

 

5.9                               Governing Law.  This Agreement, and any Action arising out of or relating to this Agreement or the transactions contemplated by this Agreement, shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without regard to choice or conflict of law principles thereof.

 

5.10                        Parties in Interest.  This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement.

 

5.11                        Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law, or public policy, all other conditions

 

10

 

and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner adverse to any party.

 

5.12                        Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.  Delivery of an executed counterpart of a signature page of this Agreement by portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

5.13                        Interpretation.  When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes”, or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”.  The meanings assigned to each term defined herein shall be equally applicable to both the singular and plural forms of such term, and words denoting any gender shall include all genders.  Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.

 

5.14                        Further Assurances.  Buyer and each Shareholder will execute and deliver, or cause to be executed and delivered, all further documents and instruments and use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws and regulations, to perform their obligations under this Agreement.

 

[remainder of page intentionally left blank]

 

11

 

IN WITNESS WHEREOF, the parties are executing this Agreement as of the date first written above.

 

	
 
    	
QUALCOMM RIVER HOLDINGS   B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edwin   Denekamp
    
	
 
    	
 
    	
Name:
    	
Edwin Denekamp
    
	
 
    	
 
    	
Title:
    	
Managing Director A
    

 

 

	
 
    	
QUALCOMM RIVER HOLDINGS   B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam   Schwenker
    
	
 
    	
 
    	
Name:
    	
Adam Schwenker
    
	
 
    	
 
    	
Title:
    	
Managing Director B
    

 

 

	
 
    	
SHAREHOLDERS:
    
	
 
    	
 
    
	
 
    	
ARROWGRASS MASTER FUND   LTD
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Edwards
    
	
 
    	
 
    	
Name: Michael Edwards
    
	
 
    	
 
    	
Title: Partner
    
	
 
    	
 
    
	
 
    	
1330 Avenue of the   Americas, 32nd Floor
    
	
 
    	
New York, NY 10019
    
	
 
    	
Attention: Michael   Edwards
    
	
 
    	
Email: Michael.Edwards@arrowgrass.com
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ARROWGRASS CUSTOMISED SOLUTIONS   I

LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Edwards
    
	
 
    	
 
    	
Name: Michael Edwards
    
	
 
    	
 
    	
Title: Partner
    
	
 
    	
 
    
	
 
    	
1330 Avenue of the   Americas, 32nd Floor
    
	
 
    	
New York, NY 10019
    
	
 
    	
Attention: Michael   Edwards
    
	
 
    	
Email: Michael.Edwards@arrowgrass.com
    

 

 

Schedule A

 

	
Name of Shareholder
    	
 
    	
Number of Shares
    
	
Arrowgrass Master Fund Ltd
    	
 
    	
3,116,254
    
	
Arrowgrass Customised Solutions I Limited
    	
 
    	
1,599,743

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