Document:

rezi-ex104_548.htm

Exhibit 10.4

 

RESIDEO TECHNOLOGIES, INC. 

NON-EMPLOYEE DIRECTOR

FORM OF DEFERRED STOCK UNIT AGREEMENT (DEFERRED DIRECTOR FEES)

 

DEFERRED STOCK UNIT AGREEMENT (this “Agreement”) is entered into as of the [DAY] day of [MONTH, YEAR] (the “Award Date”) between Resideo Technologies, Inc. (the “Company”) and [DIRECTOR NAME]. Capitalized terms used in this Agreement have the meaning set forth in the Resideo Deferred Compensation Plan for Non-Employee Directors (the “Deferred Compensation Plan”), unless otherwise stated in this Agreement. 

Background

 

A.  Pursuant to the provisions of the Deferred Compensation Plan and the 2018 Stock Plan for Non-Employee Directors of Resideo Technologies, Inc. (as amended, the “Stock Plan”), you have elected to receive 100% of your (a) annual cash retainer for service on the Company’s Board of Directors (the “Board”) earned and paid during 20[  ], and (b) other fees relating to your service as a chairperson of the Board or chairperson or member of any committee of the Board (other than reimbursements), as applicable, earned and paid during 20[  ] (collectively, the “20[  ] Director Fees”) in the form of restricted stock units deferred pursuant to Section 6(g) of the Stock Plan (“Deferred Stock Units”), each of which represents the right to receive one Share of the Company’s Common Stock. Settlement of the Deferred Stock Units will be deferred until such time as detailed in the Deferred Compensation Plan.

 

B.  The number of Deferred Stock Units to be credited to your account shall be determined by dividing (i) 100% of the 20[  ] Director Fees that otherwise would have been paid on an applicable payment date by the Fair Market Value of one share of Common Stock on such date (each, a “Deferred Stock Unit Award”).  

 

C.  Each quarterly Deferred Stock Unit Award during 20[  ] will be evidenced by an electronic grant notification, and each such grant notification when issued by the Company will be incorporated into and made a part of this Agreement.  The terms and conditions of each quarterly Deferred Stock Unit Award are set forth in this Agreement, including the applicable grant notification, and in the Stock Plan and the Deferred Compensation Plan, copies of which you agree you have received and reviewed.

 

	
1.
	
Grant of Award. Subject to Sections 7 and 8 below, Deferred Stock Units shall be credited to your account as described in this Section 1 on the date you would have otherwise received a payment of the 20[  ]Director Fees (each such date, a “Grant Date”).  The number of Deferred Stock Units to be credited to your account on the applicable Grant Date shall be equal to the result of dividing the cash amount deferred as of such date by the Fair Market Value of one share of Common Stock on such date, subject to the maximum annual individual share limit (“Maximum Annual Limit”) under the Stock Plan (“Grant Date Calculation”).  If a Grant Date Calculation is performed and after giving effect to any equity award granted to you by the Company on or prior to such Grant Date during 20[  ], including your annual grant of the Company’s restricted stock units for service on the Board during 20[  ] (collectively, the “Equity Grant”), the number of Deferred Stock Units you are entitled to receive when aggregated with the  Equity Grant would exceed the Maximum Annual Limit, any 20[  ] Director Fees in excess of the Maximum Annual Limit shall instead be deferred into a cash sub-account pursuant to the terms of the Deferred Compensation Plan. If a Grant Date Calculation is performed relating to a payment of 20[  ] Director Fees other than the payment of the fourth fiscal quarter’s 20[  ] Director Fees and such Grant Date Calculation would otherwise result in a fractional Deferred Stock Unit amount, the remaining cash value not applied to Deferred Stock Units (since fractional units are not allowed under the Stock Plan) shall be rolled forward in cash and added to the next payment of 20[  ] Director Fees and applied to the subsequent Grant Date Calculation.  In the event a fractional amount remains after the fourth fiscal quarter’s Grant Date Calculation, such fractional amount shall be forfeited.  Each Deferred Stock Unit will represent the right to receive one share of the Company’s Common Stock.  The Deferred Stock Units granted to you will be credited to an account in your name maintained by the Company.  This account shall be unfunded and maintained for book-keeping purposes only, with the Deferred Stock Units representing an unfunded and unsecured obligation of the Company.

 

 

	
2.
	
Rights as a Stockholder. You shall have no rights as a stockholder of the Company with respect to any Shares of Common Stock covered by or relating to the Deferred Stock Units until such Shares are actually delivered to you. For purposes of clarification, you shall not have any voting or dividend rights with respect to the Shares of Common Stock underlying the Deferred Stock Units unless and until such Shares are actually delivered to you.

	
3.
	
Dividend Equivalents. Except as otherwise determined by the Committee, in its sole discretion, if a cash dividend is declared and paid by the Company with respect to its Common Stock prior to the settlement date of the Award specified in Section 6, you will be credited on the date such dividend is paid with a number of additional Deferred Stock Units (the “Dividend DSUs”) equal to the result of dividing (i) the product of (x) the total number of Deferred Stock Units credited to your account on the record date for such dividend and (y) the per share amount of such dividend by (ii) the Fair Market Value of one Share on the date such dividend is paid by the Company to the holders of Common Stock.  Once credited to your account, Dividend DSUs will be considered Deferred Stock Units for all purposes of this Agreement.

	
4.
	
Payment Amount. Each Deferred Stock Unit represents one (1) share of Common Stock.

	
5.
	
Vesting. The Deferred Stock Units subject to this Agreement are 100% vested as of their respective Grant Dates. 

	
6.
	
Form and Timing of Payment. Deferred Stock Units will be redeemed solely for Shares. Settlement and payment of the Deferred Stock Units shall be made in accordance with the terms of the Deferred Compensation Plan. Delivery of Shares in settlement of this Agreement shall be effected by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a designated brokerage account, and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws. As determined by the Company in its sole discretion prior to the settlement date, any fractional Shares may be paid in cash or rounded up to the nearest whole Share.

	
7.
	
Termination of Directorship. If you cease to be a director of the Company for any reason you will no longer be entitled to receive any additional quarterly Deferred Stock Unit Awards pursuant to this Agreement.  

	
8.
	
Change in Control.  Upon a Change in Control you will no longer be entitled to receive any additional quarterly Deferred Stock Unit Awards pursuant to this Agreement.  

	
9.
	
Withholdings. To the extent applicable, the Company shall have the power and the right to deduct or withhold, or require you to remit, prior to any issuance or delivery of Shares underlying Deferred Stock Units, an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions, that are required by law to be withheld as determined by the Company.

	
10.
	
Transfer of Award. You may not transfer the Deferred Stock Units or any interest in such Units except by will or the laws of descent and distribution or except as otherwise permitted by Section 12 of the Deferred Compensation Plan. Any other attempt to dispose of your interest will be null and void.

	
11.
	
Restrictions on Payment of Shares. Payment of Shares for your Deferred Stock Units is subject to the conditions that, to the extent required at the time of settlement, (i) the Shares underlying the Deferred Stock Units will be duly listed, upon official notice of redemption, upon the New York Stock Exchange, and (ii) a Registration Statement under the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Common Stock until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery of the Shares have been approved by counsel for the Company.

	
12.
	
Adjustments. Any adjustments to the Deferred Stock Units will be governed by Section 9 of the Stock Plan.

2

 

	
13.
	
Disposition of Securities. By accepting the Deferred Stock Unit Award, you acknowledge that you have read and understand the Company’s policy, and are aware of and understand your obligations under applicable securities laws in respect of trading in the Company’s securities. The Company will have the right to recover, or receive reimbursement for, any compensation or profit you realize on the disposition of Shares received for Deferred Stock Units to the extent that the Company has a right of recovery or reimbursement under applicable securities laws.

	
14.
	
Plan Terms Govern. The redemption of Deferred Stock Units, the disposition of any Shares received for Deferred Stock Units, the treatment of gain on the disposition of these Shares, and the treatment of Dividend Equivalents are subject to the provisions of the Stock Plan, the Deferred Compensation Plan and any rules that the Committee may prescribe. The Stock Plan document, as may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth in the Deferred Compensation Plan, unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Stock Plan or the Deferred Compensation Plan and the terms of this Agreement, the Stock Plan and the Deferred Compensation Plan will control. In the event of any conflict between the terms of the Stock Plan and the terms of the Deferred Compensation Plan, the Deferred Compensation Plan will control. By accepting the Award, you acknowledge that the Stock Plan and the Stock Plan prospectus as well as the Deferred Compensation Plan, each as in effect on the date of this Agreement, have been made available to you for your review.

	
15.
	
Personal Data.

	
 
	
a.
	
By entering into this Agreement, and as a condition of the grant of the Deferred Stock Units, you acknowledge that your personal data is collected, used, and transferred in view of the performance of this Agreement as described in this Section 15, which is to the full extent permitted by and in full compliance with applicable law.

	
 
	
b.
	
You understand that the Company holds, by means of an automated data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social insurance number, retainer payments, nationality, job title, any shares or directorships held, details of all Deferred Stock Units or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of managing and administering the Stock Plan (“Data”).

	
 
	
c.
	
You understand that part or all of your Data may be also collected, used, or held by the Company or its subsidiaries or affiliates (“Affiliates”) for the purposes of managing and administering this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used, or held by [the Corporate Executive Compensation Department, the Company’s senior executives (e.g., SVP-HR, CEO, Corporate Secretary’s office), the Committee, the Committee’s compensation consultant, and Morgan Stanley]. The Company stores your Data for this purpose for a period of [xx years / months / days].

	
 
	
d.
	
You understand that the Company and its Affiliates will transfer Data among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Stock Plan, and that the Company or its Affiliates may transfer data among themselves, and/or each, in turn, further transfer Data to any third parties assisting the Company in the implementation, administration, and management of the Stock Plan (the “Data Recipients”).

	
 
	
e.
	
You understand that the Company or its Affiliates, as well as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Stock Plan, including any transfer of such Data, as may be required for the administration of the Stock Plan and/or the subsequent holding of Shares on your behalf, to a broker or third party with whom the Shares may be deposited.

3

 

	
 
	
f.
	
You understand that you may show your opposition to the processing and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise your data privacy rights, refer to the Company’s Data Privacy Global Policy [located on the Intranet / provide link to policy / otherwise describe how to find the policy].

	
 
	
g.
	
As soon as your Data is transferred to a third party Data Recipient (e.g., Morgan Stanley or the Committee’s compensation consultant), (i) the Data Recipient becomes responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient’s privacy statements and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should refer to the Data Recipient’s statements and notices about its data protection policies and practices.

	
16.
	
Discretionary Nature and Acceptance of Award. By accepting this Award, you agree to be bound by the terms of this Agreement and acknowledge that:

	
 
	
a.
	
The Company is granting your Deferred Stock Units, and this Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

	
 
	
b.
	
The Company may administer the Deferred Compensation Plan and Stock Plan from outside your country of residence and United States law will govern all Deferred Stock Units granted hereunder.

	
 
	
c.
	
Benefits and rights provided under the Stock Plan do not constitute regular or periodic payments.

	
17.
	
Limitations. Payment of your Deferred Stock Units is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any fund or specific asset of the Company by reason of this Award or the account established on your behalf.

	
18.
	
Incorporation of Other Agreements. This Agreement, the Stock Plan and the Deferred Compensation Plan constitute the entire understanding between you and the Company regarding the Deferred Stock Units. This Agreement supersedes any prior agreements, commitments or negotiations concerning the Deferred Stock Units. 

	
19.
	
Severability. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed so as to be enforceable to the maximum extent compatible with applicable law.

	
20.
	
Governing Law. The Deferred Compensation Plan, the Stock Plan, this Agreement, and all determinations made and actions taken under the Deferred Compensation Plan and the Stock Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not superseded by applicable federal law.

	
21.
	
Agreement Changes. The Company reserves the right to change the terms of this Agreement, the Deferred Compensation Plan and the Stock Plan without your consent to the extent necessary or desirable to comply with the requirements of Section 409A of the Code, the Treasury regulations and other guidance thereunder.

	
22.
	
Acknowledgements and Acceptance. By accepting this Agreement, you agree to the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement, the Deferred Compensation Plan, the Stock Plan, the Stock Plan’s prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the Deferred Compensation Plan and the Stock Plan constitute the entire understanding between you and the Company regarding the Deferred Stock Units, and that any prior agreements, commitments or negotiations concerning the Deferred Stock Units are replaced and superseded.

4lope_Ex10_18

		
			Exhibit 10.18
		

		
			SECOND AMENDMENT
		

		
			 
		

		
			THIS SECOND AMENDMENT (this “Amendment”) dated as of October 31, 2019 to the Credit Agreement referenced below is by and among GRAND CANYON EDUCATION, INC., a Delaware corporation (the “Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages hereto and BANK OF AMERICA, N.A., in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”).
		

		
			 
		

		
			W I T N E S S E T H
		

		
			 
		

		
			WHEREAS, revolving credit and term loan facilities have been extended to the Borrower pursuant to the Amended and Restated Credit Agreement (as amended, modified, supplemented, increased and extended from time to time, the “Credit Agreement”) dated as of January 22, 2019 by and among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent; and
		

		
			 
		

		
			WHEREAS, the Borrower has requested certain modifications to the Credit Agreement and the Lenders have agreed to the requested modifications on the terms set forth herein.
		

		
			 
		

		
			NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		

		
			 
		

		
			1.          Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.
		

		
			 
		

		
			2.          Conversion of a Portion of the Term Loan into Revolving Commitments.
		

		
			 
		

		
			2.1        Immediately prior to the effectiveness of this Amendment, the Outstanding Amount of the Term Loan is  $219,375,000.
		

		
			2.2        Concurrent with the effectiveness of this Amendment,  (a)  the Aggregate Revolving Commitments shall be increased by $68,750,000 to $150,000,000, (b) the Revolving Commitment of each Lender set forth on Schedule 2.01 is amended to read as set forth opposite such Lender’s name on Exhibit A hereto, (c) $68,750,000 of the Outstanding Amount of the Term Loan shall be converted into Revolving Loans and shall be deemed to be outstanding as Revolving Loans for all purposes of the Credit Agreement and the other Loan Documents (with such conversion applied to the Outstanding Amount of Term Loan held by each Lender according to such Lender’s Applicable Percentage of the Outstanding Amount of the Term Loan), (d) such conversion of a portion of the Term Loan to Revolving Loans shall not constitute a repayment of the converted amount of the Term Loan, (e) for the avoidance of doubt,  such conversion of a portion of the Term Loan to Revolving Loans shall not be subject to the requirements of Section 3.05 of the Credit Agreement and (f)  the Outstanding Amount of the Term Loan after giving effect to such conversion shall be $150,625,000.
		

		
			3.          Amendments to Credit Agreement.  Subject to the terms and conditions herein, the Credit Agreement is hereby amended as follows:
		

		
			 
		

		
			3.1        Section 1.01 is amended to add the following defined terms in their proper alphabetical order:
		

		
			 
		

		
			 
		

		
			

		 

		

		
			“Relevant Governmental Body” means 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 for the purpose of recommending a benchmark rate to replace LIBOR in loan agreements similar to this Agreement.
		

		
			“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or any successor source) and, in each case, that has been selected or recommended by the Relevant Governmental Body.
		

		
			“SOFR-Based Rate” means SOFR or Term SOFR.
		

		
			“Term SOFR” means the forward-looking term rate for any period that is approximately (as determined by the Administrative Agent as long as any of the Interest Period options set forth in the definition of “Interest Period” and that is based on SOFR and that has been selected or recommended by the Relevant Governmental Body, in each case as published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion.
		

		
			3.2        The definition of “Aggregate Revolving Commitments” in Section 1.01 is amended to read as follows:
		

		
			“Aggregate Revolving Commitments” means the Revolving Commitments of all the Lenders.  The amount of the Aggregate Revolving Commitments in effect on the effective date of the Second Amendment to this Agreement is ONE HUNDRED AND FIFTY MILLION DOLLARS ($150,000,000.00).
		

		
			3.3        The definition of “LIBOR Successor Rate Conforming Changes” in Section 1.01 is amended to read as follows:
		

		
			“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters as may be appropriate, in the discretion of the Administrative Agent, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement).
		

		
			3.4        In Section 2.06(b), the reference to “$125,000,000” is amended to read “$225,000,000”.
		

		
			3.5        Section 2.07(c)(i) is amended to read as follows:
		

		
			
		

		
			

		 

		

			2

		

		

		
			(i) on the last day of each calendar quarter, commencing on December 31, 2019, the Borrower shall repay the principal amount of the Term Loan in an amount equal to $8,368,055.56 and
		

		
			3.6        Clause (ii) of the first paragraph of Section 3.07 is amended to read as follows:
		

		
			(ii)         the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans, provided that, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent, that will continue to provide LIBOR after such specific date (such specific date, the “Scheduled Unavailability Date”); or
		

		
			3.7        The second paragraph of Section 3.07 is amended to read as follows:
		

		
			then, reasonably promptly after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace LIBOR with (x) one or more SOFR-Based Rates or (y) another alternate benchmark rate giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks and, in each case, including any mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such benchmarks,  which adjustment or method for calculating such adjustment shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated  (the “Adjustment;” and any such proposed rate, a “LIBOR Successor Rate”), and any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders (A) in the case of an amendment to replace LIBOR with a rate described in clause (x), object to the Adjustment; or (B) in the case of an amendment to replace LIBOR with a rate described in clause (y), object to such amendment; provided that for the avoidance of doubt, in the case of clause (A), the Required Lenders shall not be entitled to object to any SOFR-Based Rate contained in any such amendment.   Such LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.
		

		
			3.8        The following paragraph is added to the end of Section 3.07 and shall constitute a new fifth paragraph thereto:
		

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

		
			
		

		
			

		 

		

			3

		

		

		
			3.9        In Section 8.02(o)(ii), the reference to “$200 million” is amended to read  “$300 million”.
		

		
			3.10      A new Section 11.22 is added to read as follows:
		

		
			11.22    Acknowledgement Regarding Any Supported QFCs.
		

		
			To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract 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):
		

		
			(a)         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.
		

		
			(b)         As used in this Section 11.22, the following terms have the following meanings:
		

		
			“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.
		

		
			“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
		

		
			
		

		
			

		 

		

			4

		

		

		
			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).
		

		
			“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.
		

		
			“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).
		

		
			4.          Amendment to Security Agreement.  Section 16 of the Security Agreement is amended to read as follows:
		

		
			16.        Governing Law; Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL; Acknowledgement Regarding any Supported QFCs.  The terms of Sections 11.14, 11.15 and 11.22 of the Credit Agreement with respect to governing law, submission to jurisdiction, venue, waiver of jury trial and acknowledgement regarding any Supported QFCs are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.
		

		
			5.          Conditions Precedent.  This Amendment shall become effective as of the date hereof upon satisfaction of each of the following conditions precedent:
		

		
			5.1        Amendment.  Receipt by the Administrative Agent of executed counterparts of this Amendment properly executed by a Responsible Officer of the Borrower, the Guarantors,  each Lender and the Administrative Agent.
		

		
			5.2        Authorization.  Receipt by the Administrative Agent of a certificate of each Loan Party signed by a Responsible Officer of such Loan Party certifying and attaching resolutions adopted by the board of directors (or equivalent governing body) of each Loan Party approving this Amendment and the transactions contemplated hereby, in form and substance satisfactory to the Administrative Agent.
		

		
			5.3        Loan Notice.  Receipt by the Administrative Agent of a Loan Notice for Revolving Loans in an amount equal to the converted amount of the Term Loan in accordance with the requirements of Section 2.02(a) of the Credit Agreement.
		

		
			6.          Amendment is a “Loan Document”.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.
		

		
			 
		

		
			7.          Representations and Warranties; No Default.  Each Loan Party represents and warrants to the Administrative Agent and each Lender that after giving effect to this Amendment (a) the representations and warranties of each Loan Party contained in Article VI of the Credit Agreement and in each other Loan Document are true and correct all material respects, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect which such representation and warranty shall be true and correct in all respects,  as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date and (b) no Default exists as of the date hereof.
		

		
			 
		

		
			
		

		
			

		 

		

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			8.          Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment does not operate to reduce or discharge such Loan Party’s obligations under the Loan Documents.
		

		
			 
		

		
			9.          Reaffirmation of Security Interests.  Each Loan Party (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees that this Amendment does not in any manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents.
		

		
			 
		

		
			10.        No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect.
		

		
			 
		

		
			11.        Counterparts; Delivery.  This Amendment 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 this Amendment by fax transmission or e-mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.
		

		
			 
		

		
			12.        Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York.
		

		
			 
		

		
			[SIGNATURE PAGES FOLLOW]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Second Amendment to be duly executed and delivered as of the date first above written.
		

		
			 
		

		
			BORROWER:               GRAND CANYON EDUCATION, INC., a Delaware corporation
		

		
			 
		

		
			By: /s/ Daniel E. Bachus
		

		
			Name: Daniel E. Bachus
		

		
			Title: Chief Financial Officer
		

		
			 
		

		
			GUARANTOR:            ORBIS EDUCATION SERVICES, LLC, a Delaware limited liability company
		

		
			 
		

		
			By: /s/ Daniel E. Bachus
		

		
			Name: Daniel E. Bachus
		

		
			Title: Secretary and Treasurer
		

		
			 
		

		
			[SIGNATURE PAGES CONTINUE]
		

		
			 
		

		
			
		

		
			

		 

		

			SECOND AMENDMENT TO CREDIT AGREEMENT

		

		

			GRAND CANYON EDUCATION, INC.

		

		

		
			 
		

		
			ADMINISTRATIVE
		

		
			AGENT:                        BANK OF AMERICA, N.A., as Administrative Agent
		

		
			 
		

		
			By: /s/ Linda Lov
		

		
			Name: Linda Lov
		

		
			Title: Assistant Vice President
		

		
			 
		

		
			LENDERS:                    BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
		

		
			 
		

		
			By: /s/ Alain Pelanne
		

		
			Name: Alain Pelanne
		

		
			Title: Vice President
		

		
			 
		

		
			WELLS FARGO BANK, NATIONAL ASSOCIATION
		

		
			 
		

		
			By: /s/ Douglas Jorgensen
		

		
			Name: Douglas Jorgensen
		

		
			Title: Senior Vice President
		

		
			 
		

		
			BOKF, NA d/b/a BANK OF ARIZONA
		

		
			 
		

		
			By: /s/ Christine A. Nowaczyk
		

		
			Name: Christine A. Nowaczyk
		

		
			Title: Senior Vice President
		

		
			 
		

		
			ZIONS BANCORPORATION, N.A. d/b/a National Bank of Arizona
		

		
			 
		

		
			By: /s/ Sabina Aaronson
		

		
			Name: Sabina Aaronson
		

		
			Title: Vice President
		

		
			 
		

		
			UMB BANK, N.A.
		

		
			 
		

		
			By: /s/ Vincent P. Burke
		

		
			Name: Vincent P. Burke
		

		
			Title: Sr. Vice President
		

		
			 
		

		
			BANK OF THE WEST
		

		
			 
		

		
			By: /s/ David Scott
		

		
			Name: David Scott
		

		
			Title: Director
		

		
			 
		

		
			 
		

		
			

		 

		

			SECOND AMENDMENT TO CREDIT AGREEMENT

		

		

			GRAND CANYON EDUCATION, INC.

		

		

		
			EXHIBIT A
		

		
			 
		

		
			Revolving Commitment after giving effect to Second Amendment to Credit Agreement
		

			
					
						Lender

					
					
						Revolving Commitment 

				
	
					
						Bank of America, N.A.

					
					
						$34,615,384.61

				
	
					
						Wells Fargo Bank, National Association

					
					
						$34,615,384.61

				
	
					
						BOKF, N.A.

					
					
						$23,076,923.08

				
	
					
						Zions Bankcorporation, N.A.

					
					
						$23,076,923.08

				
	
					
						UMB Bank, N.A.

					
					
						$23,076,923.08

				
	
					
						Bank of the West

					
					
						$11,538,461.54

				
	
					
						Total:

					
					
						$150,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]