Document:

EX-10.37

 Exhibit 10.37 

July 29, 2020 

F-Star Therapeutics, Ltd. (“F-Star”) 

Eddeva B920 
 Babraham Research Campus 

Cambridge CB22 3AT 
 UK 

 

	Re:	 Equity Commitment 

Ladies and Gentlemen: 
 Summary and Introduction 

This commitment letter reflects our agreement to invest $         in
F-Star, with the investment to close on the same day that F-Star becomes a publicly traded company by combining with a Nasdaq listed company. We understand that
simultaneously with the execution of this commitment letter, F-Star, a private company, is signing an agreement to combine with a Nasdaq listed company. We further understand that after the combination, the F-Star management team will run the F-Star business as the Nasdaq listed public company, and that we, as investors in F-Star, will be
issued shares of the combined Nasdaq listed company as a result. We note that this kind of business combination transaction is referred to as a “reverse merger” when the private and public companies are both U.S. entities. Since F-Star is a company registered under the laws of England and Wales, the transaction is structured as a “share exchange”, but the business outcome is same. 

The business combination will require approval of the shareholders of the Nasdaq-listed company that
F-Star will combine with, so the closing of both the investment that is contemplated by this commitment letter and the share exchange will occur only after such shareholder approval is obtained. Our investment
will close immediately prior to the closing of the share exchange, and the issuance to us of shares of the Nasdaq-listed version of F-Star will be registered on Form
S-4, so we will received so-called “unrestricted stock” when the financing and share exchange close. Our investment will not close if the share exchange is not
approved by the Nasdaq-listed company shareholders, and in such a case no transfer of funds will be made. 
 Agreement 

Reference is made to the Share Exchange Agreement dated as of the date hereof (as it may be amended from time to time, the “Share
Exchange Agreement”), by and among Spring Bank Pharmaceuticals, Inc., a Delaware corporation (“PubCo”), F-Star Therapeutics, Ltd., a company registered in England and Wales
(“F-Star”) and the F-Star equity holders listed on Schedule I of the Share Exchange Agreement (the
“F-Star Holders”), pursuant to which the F-Star Holders shall exchange all of the capital stock of F-Star for
shares of PubCo, with the result of F-Star becoming a wholly-owned subsidiary of PubCo (the “Share Exchange”). Capitalized terms used, but not defined herein, have the meanings ascribed to
them in the Share Exchange Agreement. 

 This letter agreement is being delivered by the undersigned investor
(the “Investor”) to F-Star in connection with the execution of the Share Exchange Agreement by PubCo, F-Star and the
F-Star Holders. The Investor hereby confirms its irrevocable commitment, subject to the conditions set forth herein, to purchase, or cause a permitted assignee to purchase, immediately prior to the closing of
the Share Exchange, ordinary shares of F-Star, par value £0.01 per share (“Shares”), having an aggregate purchase price equal to $        
(the “Equity Commitment”), at a price per Share (the “Per Share Price”) equal to $35,000,000 (the “Agreed Pre-Money Valuation”)
divided by the number of outstanding ordinary shares of F-Star, assuming the conversion of all outstanding preference shares and the exercise of all outstanding in-the-money options and warrants (the “Fully-Diluted F-Star Capitalization”), as of immediately prior to the closing of the Share Exchange. For
illustrative purposes, the purchase price, if calculated based on the Fully-Diluted F-Star Capitalization as of the date hereof, would be $1.49, which equals $35,000,000 divided by 23,494,553
shares.    Accordingly, the Per Share Price represents a $35,000,000 pre-money valuation of F-Star (calculated using the treasury stock
method). 
 The Shares to be purchased by the Investor are referred to herein as the “Investor Shares”. The Investor
acknowledges that F-Star intends to issue Shares to other investors immediately prior to the Effective Time as part of this financing (the “Financing”) and that the Equity Commitment is a
component of the Financing. F-Star hereby confirms its commitment, subject to the conditions herein, to enter into the Equity Purchase Document (defined below) and issue and sell to Investor in the Financing
the Investor Shares for an amount equal to the Equity Commitment at the Per-Share Price immediately prior to the closing of the Share Exchange. In the event that F-Star
agrees, prior to the closing of the Share Exchange, to sell additional ordinary shares in the Financing at a pre-money valuation lower than $35 million (the “Future
Pre-Money Valuation”), then the Agreed Pre-Money Valuation for purposes of this letter agreement shall become the Future
Pre-Money Valuation; provided however, for the avoidance of doubt, that the issuance of additional 2019 Loan Notes in an aggregate principal amount of up to $3 million, as permitted pursuant to
Section 5.2(b) of the Share Exchange Agreement, and the conversion of such notes, shall not cause a change in the Agreed Pre-Money Valuation. 

Simultaneously with the Financing, our outstanding convertible notes will be converted into ordinary shares at a 20% discount to the Per Share
Price (which would be $1.19 per share if the Financing price is $1.49 per share, as in the illustration above). The convertible notes have an 8% per year interest rate, and the convertible notes are estimated to have an aggregate value (including
interest accrued) of $15,182,072. 
 The Investor’s obligation to enter into the Equity Purchase Document and fund the Equity
Commitment is subject only to (i) the execution and delivery of the Share Exchange Agreement; (ii) the conditions precedent to the Share Exchange being met or waived; and (iii) the terms of this letter agreement. 

The Investor and F-Star hereby covenant to enter into a Subscription Agreement in the form of
Exhibit A hereto (the “Equity Purchase Document”), which agreements shall (i) set forth the terms on which the Investor (or its successors or permitted assigns) shall purchase the Investor Shares for an amount equal to
the Equity Commitment at the Per Share Price immediately prior to the closing of the Share Exchange, (ii) provide that upon the closing of the 

  
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Share Exchange, the Investor Shares shall be sold to PubCo in consideration for such number of shares of PubCo common stock as is equal to the Exchange Ratio, rounded to the nearest whole share,
pursuant to Section 1.4(a) of the Share Exchange Agreement (the “Public Shares”); (iii) provide that the issuance of the Public Shares to the Investor shall be registered on the Form S-4
filed pursuant to Section 6.1(a) of the Share Exchange Agreement; and (iv) include other customary terms and conditions; provided, that, in no event shall the obligation of the Investor to purchase the Investor Shares be conditioned
by the completion by the Investor of its due diligence investigation with respect to the Equity Commitment. 
 The Investor represents and
warrants that (i) it has the requisite power, capacity and authority to execute and deliver this letter agreement and to fulfill and perform its obligations hereunder; (ii) this letter agreement has been duly and validly executed and
delivered by the Investor and constitutes a legal, valid and binding agreement of the Investor and is enforceable in accordance with its terms (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws affecting creditors’ rights generally and general equitable principles whether considered in a proceeding in law or in equity); (iii) the execution, delivery and performance of this letter agreement by the Investor has been
duly and validly authorized and approved by all necessary corporate, limited partnership or similar action by such party; (iv) the Investor has available, unrestricted cash (or the unrestricted right (subject only to the giving of any required
notices) to obtain from its investors’ funds) sufficient to pay and perform in full its obligation under this letter agreement to pay the Equity Commitment, which funds shall remain available to the Investor for so long as this letter agreement
shall remain in effect; (v) the Investor has received and reviewed (or has had sufficient opportunity to review) this letter agreement (including the forms of Equity Purchase Document attached hereto) with independent legal, accounting and
financial advisors regarding the Investor’s rights and obligations and the Investor fully understands the terms and conditions contained, and the transactions provided for, herein and therein; and (vi) the Investor understands that, while
the Investor Shares will be exchanged for the Public Shares as part of the closing of the Share Exchange that will immediately follow the purchase of the Investor Shares, the issuance of the Investor Shares pursuant to the Equity Purchase Document
will be a private placement exempt from registration under Section 4(a)(2) and Regulation D under the Securities Act and that such exemption shall rely, in part, on the representations and warranties of the Investor included in the following
paragraph of this letter agreement and the Equity Purchase Document. 
 The Investor further acknowledges and represents that (i) the
Investor Shares will be “restricted securities” and will not, at the time of issuance, have been registered under the Securities Act or any applicable state securities law (though the Investor Shares will be exchanged for the Public
Shares at the closing of the Share Exchange, which shall take place seconds after the purchase of the Investor Shares); (ii) the Investor is acquiring the Investor Shares as principal for its own account and not with a view to, or for,
distributing or reselling the Investor Shares or any part thereof in violation of the Securities Act or any applicable state securities laws; (iii) the Investor does not presently have any agreement, plan or understanding, directly or
indirectly, with any Person to distribute or effect any distribution of any of the Securities (or any securities which are derivatives thereof) to or through any person or entity; (iv) the Investor will acquire the Investor Shares in the
ordinary course of its business; (v) the Investor is not a registered broker-dealer under Section 15 of the Securities Exchange Act of 1934, as amended, or an entity engaged in a business that would require it to be so registered as a
broker-dealer; (vi) the 

  
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Investor is, at the date hereof, an “accredited investor” as defined in Rule 501(a) under the Securities Act; (vii) the Investor will not be purchasing the Investor Shares as a
result of any advertisement, article, notice or other communication regarding the Investor Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general
advertisement; (viii) the Investor, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Investor Shares, and has so evaluated the merits and risks of such investment; (ix) the Investor is able to bear the economic risk of an investment in the Investor Shares and, at the present time, is able to afford a complete
loss of such investment; (x) the Investor acknowledges that it has reviewed publicly available materials relating to F-Star and the PubCo and has been afforded (a) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from, representatives of F-Star and PubCo concerning the terms and conditions of the offering of the Investor Shares and the merits and risks of
investing in the Investor Shares, (b) access to information about F-Star, PubCo and their subsidiaries and their respective financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment; and (c) the opportunity to obtain such additional information that F-Star and PubCo possess or can acquire without unreasonable effort or
expense that is necessary to make an informed investment decision with respect to the investment; and (xi) the Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed decision with respect to
its commitment to acquire the Investor Shares. 
 The Investor acknowledges and agrees that PubCo may, on or after the date hereof, issue a
press release disclosing the material terms of the transactions contemplated by this letter agreement and may, on or after the date hereof, file a Current Report on Form 8-K describing the terms of this letter
agreement and including the press release and a copy of this letter agreement and form of the Equity Purchase Document, as exhibits thereto or a subsequent periodic report, with the SEC. 

This letter agreement shall be binding solely on, and inure solely to the benefit of, each of the undersigned and their respective successors
and permitted assigns. The Investor may not assign the Equity Commitment to any third party, provided, that the Investor may assign all or a portion of its obligations to fund the Equity Commitment to its affiliates or affiliated funds or, with the
prior written consent of F-Star, to any third party (without consideration therefor); provided, however, that the Investor shall remain liable for the Equity Commitment. 

The parties hereto agree that irreparable damage would occur if any provision of this letter agreement were not performed in accordance with
the terms hereof and that F-Star or the Investor, as the case may be, shall be entitled to an injunction or injunctions to prevent breaches of this letter agreement or to enforce specifically the performance
of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. The parties hereto hereby agree not to raise any objections to the remedies of specific performance or other equitable relief to
prevent or restrain breaches or threatened breaches of this letter agreement, and to specifically enforce the terms and provisions of this letter agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants
and obligations of the Investor under this letter agreement. 

  
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 In the event that any suit or action is instituted with respect to this letter agreement,
the prevailing party in such dispute shall be entitled to recover from the losing party all reasonable fees, costs and expenses of such prevailing party in connection with any such suit or action, including without limitation, such reasonable fees
and expenses of attorneys and accountants, which shall include, without limitation, all reasonable fees, costs and expenses of appeals. 

This letter agreement and any related dispute shall be governed by, and construed and interpreted in accordance with, the laws of the State of
Delaware applicable to contracts executed in and to be performed in that State. Each of the parties hereto hereby (i) irrevocably submit to the personal jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom
within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware) in the event that any dispute arises out of this letter agreement
or any of the transactions contemplated by this letter agreement; (ii) agree that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court; and (iii) agree that it
will not bring any action relating to this letter agreement or any of the transactions contemplated by this letter agreement in any court other than the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware
(or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware). 

EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH
RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LETTER AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY. 

This letter agreement may not be amended or otherwise modified without the prior written consent of
F-Star and the Investor. This letter agreement may be executed in counterparts. 
 This letter
agreement shall expire upon the earlier of (1) December 31, 2020 or (2) the termination of the Share Exchange Agreement in accordance with its terms. Nothing in this paragraph shall be deemed to release any party from any liability
for any breach by such party of the terms and provisions of this letter agreement, the Equity Purchase Document or the Share Exchange Agreement or impair the right of any party to compel specific performance by any other party of its obligations
under this letter agreement. 
 [Signature page follows] 

  
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	Sincerely,
	
	[INVESTOR]
		
	By:	 	
	Its:	 	
		
	By:	 	
                     

	Name:	 	
	Title:	 	

 Accepted and agreed to as of the date first above written. 

F-STAR THERAPEUTICS, LTD. 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

 EXHIBIT A 

 SUBSCRIPTION AGREEMENT 

This SUBSCRIPTION AGREEMENT (this “Agreement”) is dated as of July [●], 2020 by and among F-Star Therapeutics Limited, a company registered in England and Wales with company number 11532458 (the “Company”), and each purchaser listed on Annex A hereto and a signatory hereto
(each, including its successors and permitted assigns, a “Purchaser” and collectively, the “Purchasers”). 

RECITALS 
 A. The
Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act. 

B. Each Purchaser, severally and not jointly, wishes to subscribe for and purchase, and the Company wishes to issue and sell to each
Purchaser, upon the terms and conditions stated in this Agreement, that number of ordinary shares of £0.01 each in the capital of the Company (the “Ordinary Shares”), determined as set forth in Section 2.1(a) below (which
aggregate number for all Purchasers shall collectively be referred to herein as the “Shares”). 
 NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser hereby agree as follows:

 ARTICLE 1 

DEFINITIONS 
 1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1: 

“Accounts” means the annual accounts of the Company and each of its Subsidiaries in respect of each financial year ending on
or after December 31, 2018. 
 “Actual Subscription Amount” with respect to a Purchaser shall mean the amount
set forth opposite such Purchaser’s name under the column “Actual Subscription Amount” on Annex A. 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary
basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 
 “Assignee”
means a person, company or entity who receives the transfer of property, title or rights from a contract. 

“Assignor” means a person, company, or other entity who transfers rights that they hold to another
entity.
 “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks located in
Boston, Massachusetts or London, England are authorized or required by applicable Legal Requirements to close; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by applicable Legal
Requirements to close due to “stay at home”, “shelter-in-place”, “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any Governmental Body so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in such location
generally are open for use by customers on such day. 

 “Claim” means any claim for breach of any Company Warranty. 

“Closing” means the closing of the purchase by the Purchasers listed on Annex A hereto and sale by the Company
of the Shares to such Purchasers pursuant to this Agreement on the Closing Date as provided in Section 2.1(a) hereof. 

“Closing Date” means the date on which the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 (other than those to
be satisfied at the Closing) shall have been satisfied or waived or such earlier or later date as the parties hereto shall mutually agree. 

“Commission” has the meaning set forth in Recital A. 

“Company Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. and Mills & Reeve LLP. 

“Company Deliverables” has the meaning set forth in Section 2.2(a). 

“Company Warranties” means the warranties given by the Company to the Purchaser as set forth in Section 3.1. 

“Company’s Knowledge” means with respect to any statement made to the knowledge of the Company, that the
statement is based upon the actual knowledge of Eliot Forster, Ph.D., Darlene Deptula-Hicks and John Fitzpatrick, including where such individuals would reasonably be expected to have such actual knowledge in the ordinary course of the performance
of such individual’s employment or fiduciary capacity in relation to the Company, as applicable. 
 “Compliance
Certificate” has the meaning set forth in Section 2.2(a)(i). 
 “Disclosure Document” has the
meaning set forth in Section 6.19. 
 “Disclosure Schedules” has the meaning set forth in Section 3.2(a).

 “Disqualification Event” has the meaning set forth in Section 3.1(j). 

“Encumbrance” means any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, claim,
infringement, interference, option, right of first refusal, preemptive right, community property interest or restriction of any nature (including any restriction on the voting of any security, any restriction on the transfer of any security or other
asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other attribute of ownership of any asset). For the avoidance of
doubt, Encumbrance does not include Out Licenses. 
 “End Date” has the meaning set forth in the Share Exchange
Agreement. 
 “Exchange” means the transaction whereby the Company, the Sellers and Spring Bank intend to effect a
transaction whereby the Sellers contribute, transfer, assign and deliver all of the Ordinary Shares held by the Sellers, and all of their rights with respect to such Ordinary Shares, to Spring Bank, in exchange for Spring Bank Common Stock,
resulting in the Company becoming a wholly-owned subsidiary of Spring Bank, in accordance with the terms and conditions set forth in the Share Exchange Agreement. 

“F-Star Disclosure Schedule” has the meaning set forth in the Share Exchange
Agreement. 
 “GAAP” means U.S. generally accepted accounting principles, as applied by the Company. 

“Governmental Authority” means any court or tribunal, governmental, quasi-governmental or regulatory body, commission
or authority or other body exercising similar powers or authority. 

 “Governmental Body” means any: (a) nation,
state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental body of any nature
(including any governmental division, department, agency, commission, instrumentality, official, ministry, fund, foundation, center, organization, unit, body or entity and any court or other tribunal, and for the avoidance of doubt, any Tax
authority); or (d) self-regulatory organization (including NASDAQ and the Financial Industry Regulatory Authority). 

“IFRS” means International Financial Reporting Standards, as applied by the Company. 

“Intellectual Property” means copyright, neighboring and related rights, database rights, trade
and service marks, trade names, rights in logos and get-up, goodwill and the right to sue for passing off or unfair competition, inventions, domain names, confidential information, trade secrets and know-how, registered designs, design rights, patents, utility models, semi-conductor topographies, all rights of whatsoever nature in computer software and data, all rights of privacy and all intangible rights and
privileges of a nature similar or allied to any of the foregoing, in every case in any part of the world and whether or not registered; and including all granted registrations and all applications for registration in respect of any of the same but
excluding any standard “off the shelf” software products. 
 “IP Rights” means all Intellectual Property
owned, licensed, or controlled by the Company or its Subsidiaries that is necessary or used in the business of the Company and its Subsidiaries as presently conducted. 

“Legal Requirement” means any national, federal, state, foreign, material local or municipal or other law, statute,
directive, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any
Governmental Body. 
 “Material Adverse Effect” means any effect that, considered together with all other effects
that have occurred prior to the date of determination of the occurrence of the Material Adverse Effect, has or would reasonably be expected to have or result in a material adverse effect on the business, financial condition, operations or results of
operations of the Company and its Subsidiaries taken as a whole; provided, however, that effects from the following shall not be deemed to constitute (nor shall effects from any of the following be taken into account in determining whether there has
occurred) a Material Adverse Effect: (i) conditions generally affecting the industries in which the Company participates or the United Kingdom, United States or global economy or capital markets as a whole, to the extent that such conditions do
not have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other companies in the industry in which the Company and its Subsidiaries operate; (ii) any failure by the Company or any of its Subsidiaries
to meet any estimates or expectations of their development programs, internal projections or forecasts or third-party revenue or earnings predictions for any period ending (or for which revenues or earnings are released) on or after the date hereof
(it being understood, however, that any effect causing or contributing to such failures to meet projections or predictions may constitute Material Adverse Effect and may be taken into account in determining whether a Material Adverse Effect has
occurred); (iii) the execution, delivery, announcement or performance of the obligations under this Agreement, the Share Exchange Agreement or the announcement, pendency or anticipated consummation of the Exchange; (iv) any natural disaster or
any acts of terrorism, sabotage, military action or war or any escalation or worsening thereof, or any viruses, pandemics, epidemic or other outbreak of illness or public health event or any spread or worsening thereof, or any other effect that may
be considered a force majeure event; (v) any changes (after the date hereof) in IFRS or GAAP or applicable Legal Requirements (or, in each case, the interpretation thereof) to the extent that such conditions do not have a disproportionate
impact on the Company or its Subsidiaries, taken as a whole, relative to other companies in the industry in which the Company and its Subsidiaries operate; (vi) the taking of any action, or the failure to take any action, by the Company or any
of its Subsidiaries, that is required to comply with the terms of this Agreement or the Share Exchange Agreement; (vii) any changes in or affecting research and development, clinical trials or other drug development activities (including the
failure to obtain positive results from clinical trials, the occurrence of adverse events or serious adverse events in any clinical trial, development activities or favorable responses from any applicable Governmental Body) conducted by or on behalf
of the Company or any of its Subsidiaries or licensees in respect of the Company’s products or product candidates; (viii) any rejection or non-acceptance by a Governmental Body of a registration or
filing by the Company relating to any IP Rights of the Company; or (ix) regulatory approval of, or regulatory action or announcement with respect to, any product, or product candidates, of a third party that are similar to, or expected to
compete against, any of the Company’s product candidates. 

 “Out License” means any license or other agreement between Seller or any of
its Affiliates and any Third Person pursuant to which Seller or any of its Affiliates grants to such Third Person an exclusive license or sublicense of, covenant not to sue under, or other similar rights under Product IP necessary for such Third
Person to manufacture, use and commercialize a Product; provided, that Out Licenses shall exclude any agreement between Seller or any of its Affiliates and any Third Person pursuant to which Seller or any of its Affiliates grants to such Third
Person a license or sublicense under the Product IP (a) to conduct research, or (b) on a non-exclusive basis in the ordinary course of business (e.g., manufacturing agreements, material transfer
agreements and consulting agreements), that in all cases do not grant any rights to market, sell or commercialize a Product. 

“Ordinary Shares” has the meaning set forth in Recital B. 

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association,
joint stock company, joint venture, sole proprietorship, unincorporated organization, Governmental Authority or any other form of entity not specifically listed herein. 

“Product IP” means Company IP relating to any or all of the products. 

“Purchaser Majority” means the holders of 60% of the Shares. 

“Purchase Price” means $● per Ordinary Share. 

“Regulation D” has the meaning set forth in Recital A. 

“Required Approvals” has the meaning set forth in Section 3.1(c). 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“Secretary’s Certificate” has the meaning set forth in Section 2.2(a)(ii). 

“Securities Act” has the meaning set forth in Recital A. 

“Sellers” means the sellers listed on Schedule I to the Share Exchange Agreement. 

“Shareholders’ Agreement” means the Shareholders’ Agreement, dated May 7, 2019, a copy of which has
been provided to each Purchaser (receipt of which each Purchaser hereby acknowledges). 
 “Share Exchange Agreement”
means the Share Exchange Agreement to be entered into on or following the date of this Agreement, a copy of which has been provided to each Purchaser (receipt of which each Purchaser hereby acknowledges). 

“Shares” has the meaning set forth in Recital B. 

“Share Certificates” has the meaning set forth in Section 2.2(c)(ii). 

“Spring Bank” means Spring Bank Pharmaceuticals, Inc., a Delaware corporation. 

“Spring Bank Common Stock” means shares of common stock of Spring Bank, par value $0.0001. 

“Subsidiary” means any entity in which the Company, directly or indirectly, owns a controlling interest in share
capital or similar interest and “Subsidiaries” shall be construed accordingly. 

 “Tax” means any federal, state, local, foreign or other tax,
including any income tax, franchise tax, capital gains tax, gross receipts tax, value-added tax, surtax, estimated tax, unemployment tax, national health insurance tax, excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax,
property tax, business tax, withholding tax, payroll tax, customs duty, alternative or add-on minimum or other tax of any kind whatsoever, and including any fine, penalty, addition to tax or interest, whether
disputed or not. 
 “Third Person” means a Person other than Assignor or Assignee. 

“Transaction Documents” means this Agreement, the Secretary’s Certificate and the Compliance Certificate. 

ARTICLE 2 
 PURCHASE AND
SALE 
 2.1 Closing. 

(a) Amount. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to
each Purchaser listed on Annex A hereto, as it may be amended, and each Purchaser listed on Annex A hereto, as it may be amended, shall, severally and not jointly, subscribe for and purchase from the Company, such number of Ordinary
Shares equal to the quotient resulting from dividing (i) the Actual Subscription Amount for such Purchaser, as indicated opposite such Purchaser’s name on Annex A hereto, by (ii) the Purchase Price, rounded down to the nearest
whole Ordinary Share (“Subscription Shares”). 
 (b) Closing. The Closing of the purchase and sale of the
Shares shall take place at the offices of Company Counsel, One Financial Center, Boston, Massachusetts, on the Closing Date or at such other locations or remotely by facsimile transmission or other electronic means as the parties may mutually agree.

 2.2 Closing Deliveries. 

(a) On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to each Purchaser the following (the
“Company Deliverables”): 
 (i) a certificate of the Company’s Secretary (the
“Secretary’s Certificate”), dated as of the Closing Date, (A) certifying the resolutions adopted by the Company’s Board of Directors or a duly authorized committee thereof approving the transactions
contemplated by this Agreement and the other Transaction Documents and the issuance of the Shares, (B) certifying the current versions of the Company’s articles of association (as the same may have been amended between the date hereof and
the Closing Date) and (c) certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company; 

(ii) a certificate (the “Compliance Certificate”), dated as of the Closing Date and signed by the
Company’s Chief Executive Officer or its Chief Financial Officer, certifying to the fulfillment of the conditions specified in Sections 5.1(a) and 5.1(b); and 

(iii) a certificate evidencing the good standing of the Company issued by the Registrar of Companies, as of a recent date of the
Closing Date. 
 (b) At least five days before the Closing Date, each Purchaser shall, as payment to the Company for the issue and
sale by the Company to that Purchaser of the relevant Subscription Shares, deliver its Actual Subscription Amount in U.S. dollars and in immediately available funds by wire transfer to an account specified by the Company; provided that if the
Closing or Exchange is not consummated by 5:00 p.m., New York City time, on the End Date, the Company shall have no obligation to issue or sell the Subscription Shares to a Purchaser and, upon request by a Purchaser, the Company shall, within one
(1) Business day thereof, return the Actual Subscription Amount (in U.S. dollars and in immediately available funds by wire transfer) paid by such Purchaser to an account specified by such Purchaser. 

 (c) On the Closing Date, a meeting (which may be done by written resolution) of the
Board of Directors, or a committee thereof with delegated authority from the Board of Directors, shall be held at which the Company shall: 

(i) subject to receipt of each Purchaser’s Actual Subscription Amount in accordance with Section 2.2(b), issue to each
Purchaser the Ordinary Shares listed against its name in Annex A credited as fully paid and enter its name in the Company’s register of members in respect thereof; 

(ii) execute the Purchasers’ certificates in respect of their Ordinary Shares, free and clear of all restrictive and other
legends except as provided in Section 4.1(b) hereof (the “Share Certificates”) which Share Certificates shall be held by the Company following the Closing, pending their cancellation by the Company upon closing of the
Exchange. Upon closing of the Exchange, the Shares purchased pursuant to this Agreement will be treated as F-Star Shares (as defined in the Share Exchange Agreement), which will be converted into Spring Bank
Common Stock in accordance with Section 1.4(a) of the Share Exchange Agreement; 
 (iii) pass any resolutions required to carry
out the Company’s obligations under this Agreement; and 
 (iv) instruct the Company’s secretary to file all appropriate
resolutions and forms with the Registrar of Companies within the prescribed time limits. 
 ARTICLE 3 

WARRANTIES 
 3.1
Company Warranties. Subject to Section 3.2, the Company warrants to each of the Purchasers as follows: 
 (a)
Authorization; Enforcement; Validity. The Company has the requisite corporate power under its articles of association to enter into and to consummate the transactions contemplated by each of the Transaction Documents to which it is a party
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents to which it is a party by the Company and the consummation by it of the transactions contemplated hereby and thereby
(including, but not limited to, the sale and delivery of the Shares) have been, or will be prior to the Closing, duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the
Company, its Board of Directors or its shareholders in connection therewith other than in connection with the Required Approvals. Each of the Transaction Documents to which it is a party has been (or upon delivery will have been) duly executed by
the Company and is, or when delivered in accordance with the terms hereof, will, constitute the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application
or insofar as indemnification and contribution provisions may be limited by applicable Legal Requirements. 
 (b) No
Conflicts. The Company is not in violation or default of any term of its constitutional documents, each as amended, or of any provision of any mortgage, indenture, contract, lease, agreement, instrument or contract to which it is party or by
which it is bound or of any judgment, decree, order or writ, other than any such violation that would not have a Material Adverse Effect. The execution, delivery, and performance of and compliance with the Transaction Documents and the issuance and
sale of the Shares pursuant to this Agreement will not, with or without the passage of time or giving of notice, result in any such violation, or be in conflict with or constitute a material default under any such term or provision, or result in the
creation of any Encumbrance upon any of the properties or assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to the Company, its business or
operations or any of its assets or properties. 
 (c) Filings, Consents and Approvals. The Company is not required to obtain
any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any Governmental Authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction

 
Documents (including the issuance of the Shares), other than (i) filings required by applicable state securities laws, (ii) the filing of a Notice of Sale of Shares on Form D with the
Commission under Regulation D, (iii) those that have been made or obtained prior to the date of this Agreement and (v) those required to effect the Exchange (collectively, the “Required Approvals”). 

(d) Issuance of the Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of
the Transaction Documents, will be duly and validly issued, fully paid and free and clear of all Encumbrances imposed or permitted by the Company, other than restrictions on transfer provided for in the Transaction Documents, articles of association
of the Company, Shareholders’ Agreement or imposed by applicable securities laws, and save as contained in the articles of association of the Company and the Shareholders’ Agreement, shall not be subject to preemptive or similar rights.

 (e) Additional Warranties. The Company’s warranties set forth in the Share Exchange Agreement in Section 2.1
(Organization and Qualification; Charter Documents), Section 2.2 (Capital Structure), Section 2.3 (Authority; Non-Contravention; Approvals), Section 2.4
(F-Star Financial Statements; No Undisclosed Liabilities), Section 2.5 (Absence of Certain Changes or Events), Section 2.6 (Taxes), Section 2.7 (Intellectual Property), Section 2.8
(Compliance with Legal Requirements), 2.9 (Legal Proceedings; Orders), Section 2.10 (Brokers’ and Finders’ Fees), Section 2.11 (Employee Benefit Plans), Section 2.12 (Title to Assets; Real Property), Section 2.13
(Environmental Matters), Section 2.14 (Labor Matters), Section 2.15 (F-Star Contracts), Section 2.16 (Books and Records), Section 2.17 (Insurance), Section 2.18 (Government Contracts),
Section 2.19 (Interested Party Transactions), Section 2.20 (Disclosure; Company Information) and Section 2.21 (Ownership of Company Capital Stock) are hereby incorporated as warranties by reference and are qualified by (i) the
disclosures in the F-Star Disclosure Schedule; and (ii) the qualifications and limitations contained in Section 3.2 of this Agreement, provided that for purposes of this Agreement any warranty as to
the making available or delivery of documents to Spring Bank shall mean the making available or delivery of documents to each Purchaser. 

(f) Certain Fees. Other than BTIG, LLC (“BTIG”) in its capacity as placement agent, no Person will have,
as a result of the Company’s issuance of the Shares pursuant to the terms of this Agreement, any valid right, interest or claim against or upon the Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Company. The Company shall indemnify, pay, and hold each Purchaser harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection with any such right, interest or claim. 

(g) Private Placement. Assuming the accuracy of the warranties of the Purchasers contained in Section 3.3 hereof, the
offer, sale and issuance of the Shares will be exempt from the registration requirements of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification) under the registration, permit or
qualification requirements of all applicable state securities laws. Neither the Company nor any agent on its behalf has solicited or will solicit any offers to sell or has offered to sell or will offer to sell all or any part of the Shares to any
person or persons so as to bring the sale of such Shares by the Company within the registration provisions of the Securities Act or any state securities laws. Assuming the accuracy of the Purchasers’ warranties set forth in Section 3.3
(without giving effect to any materiality qualifiers therein), neither the Company nor any Person acting on its behalf has, directly or indirectly, at any time within the past six months, made any offers or sales of any Company security or solicited
any offers to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D in connection with the offer and sale by the Company of the Shares as contemplated hereby. 

(h) Investment Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following
the Closing and the Exchange will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

(i) Foreign Corrupt Practices. Neither the Company, nor to the Company’s Knowledge, any agent or other person acting on
behalf of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign
or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 

 (j) No Disqualification Events. The Company has exercised reasonable care, in
accordance with Commission rules and guidance, to determine whether any Covered Person (as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act
(“Disqualification Events”). To the Company’s Knowledge, no Covered Person is subject to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The
Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the Securities Act. “Covered Persons” are those persons specified in Rule 506(d)(1) under the Securities Act, including
the Company; any predecessor or Affiliate of the Company; any director, executive officer, other officer participating in the offering, general partner or managing member of the Company; any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power; any promoter (as defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of the sale of the Shares; and any person that has
been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of the Shares (a “Solicitor”), any general partner or managing member of any Solicitor, and any director,
executive officer or other officer participating in the offering of any Solicitor or general partner or managing member of any Solicitor. 

(k) Share Exchange Agreement. When executed and delivered, the Share Exchange Agreement will be in full force and effect and
represents a valid, binding and enforceable obligation of the Company and, to the Company’s Knowledge, of each party thereto, subject to the qualification that such enforceability may be limited by bankruptcy, insolvency, reorganization or
other laws of general application relating to or affecting rights of creditors. The Company has no reason to believe that the Exchange will not occur promptly following the consummation of the transactions contemplated by this Agreement. 

3.2 Qualifications to the Company Warranties and Limitation on Claims 

(a) Qualifications to the Company Warranties. Except with respect to Company Warranties 3.1(a) and 3.1(d), the Company Warranties are
given to the Purchasers subject to the qualifications and limitations set out in this Section 3.2 and the matters set forth in the disclosure schedules delivered by the Company to the Purchasers prior to the execution of this Agreement (receipt
of which each Purchaser hereby acknowledges) (the “Disclosure Schedules”), it being agreed that: 
 (i)
although for ease of reference the exceptions and disclosures set forth in the Disclosure Schedules correspond to a particular section or subsection of the Company Warranties, such exceptions and disclosures shall be taken as qualifying all Company
Warranties to which such exceptions and disclosures may reasonably be considered applicable; 
 (ii) the following shall be
considered disclosed or deemed disclosed in relation to the Company Warranties and no Claim may be brought in relation to any matter disclosed by the following: 

(A)    all matters contained in the Transaction Documents, the Share Exchange Agreement and the F-Star Disclosure Schedule; 
 (B)    any matter appearing on
the files of the Company at Companies House as the same appeared on the Companies House website at www.direct.companieshouse.gov.uk on the date falling two Business Days prior to the date of this Agreement; 

(C)    any matter appearing on public registers maintained by relevant intellectual property
offices (including the UK Intellectual Property Office, European Patent Office, United States Patent and Trade Mark Office and WIPO); 

 (D)    any matter appearing on any register
which relates to any of the properties owned, used or occupied by the Company and which is open to public inspection (including at HM Land Registry); 

(E)    any matter or information disclosed, noted, referred to or provided for in the Accounts;

 (F)    any matter contained in the memorandum and articles of association of the Company;

 (G)    any matter which is or should be revealed by inspection of the statutory registers of
the Company; 
 (H)    all the contents of the diligence materials or documents provided or made
available to the Purchasers. 
 (iii) the inclusion of any information in the Disclosure Schedules shall not be deemed to be an
admission or acknowledgement, in and of itself, that such information is required by the terms hereof to be disclosed, is material, has resulted in or would result in a Material Adverse Effect, or is outside the ordinary course of business. 

(b) Limitations on Claims. 

(i) The limitations in this Section 3.2(b) shall not apply to any Claim which is the consequence of fraud, dishonesty, willful
concealment or willful misrepresentation by or on behalf of the Company. 
 (ii) No Claim may be made against the Company unless
written notice of such Claim is served on the Company giving full and specific details to enable the Company to identify the subject matter, nature and quantum of the Claim by no later than the Closing Date. 

(iii) The aggregate liability of the Company in respect of all and any Claims shall be limited to an amount equal to the aggregate
amount subscribed by the Purchasers pursuant to this Agreement. 
 (iv) The Company shall not be liable in respect of a Claim unless
(a) the Company’s liability in respect of such Claim exceeds £5,000; and (b) the aggregate liability for all Claims exceeds £50,000, in which case the Company shall be liable for the entire amount and not merely the excess
over that amount. 
 (v) No liability of the Company in respect of any breach of any Company Warranty shall arise if such breach
occurs by reason of any matter which would not have arisen but for the coming into force of any legislation not in force at the date of this Agreement or by reason of any change to the practices of any applicable Tax authority occurring after the
date of this Agreement. 
 (vi) The Company shall not be liable for any Claim if the alleged breach, which is the subject of the
Claim, is capable of remedy and is remedied to the reasonable satisfaction of the Purchaser within 30 days of the date on which the notice in Section 3.2(b)(ii) is received by the Company. 

(vii) The Purchasers shall not be entitled to recover damages or otherwise obtain payment, reimbursement or restitution more than once
in respect of the same loss or liability. 
 (viii) Nothing in this Agreement shall prejudice each Purchaser’s duty under
common law to mitigate any loss or liability which is the subject of a Claim. 

 (ix) The Purchasers agree among themselves that the following provisions shall apply
in relation to the enforcement of any of the obligations of the Company owed to the Purchasers under this Agreement (the “Obligations”): 
  

	 	(A)	 no claim in respect of any breach of the Obligations (including a Claim) shall be brought by any of the
Purchasers without the prior written consent of the Purchaser Majority, provided that all Purchasers have been informed of the breach of the Obligations or proposed Claim and consulted prior to the Purchaser Majority’s decision being
made; 

  

	 	(B)	 the costs incurred by any Purchasers in bringing a claim in respect of any breach of the Obligations (including
a Claim) shall be borne by all of the Purchasers proportionately to their holding of the Shares; and 

  

	 	(C)	 the costs incurred by any Purchasers in bringing a claim in respect of any breach of the Obligations (including
a Claim) shall be borne by all of the Purchasers proportionately to their holding of the Shares. 

 3.3 Warranties of
the Purchasers. Each Purchaser hereby warrants severally and not jointly to the Company as follows: 
 (a) Requisite Power and
Authority. Such Purchaser has all necessary power and authority to execute and deliver the Transaction Documents to which it is a party and to carry out their provisions. All action on such Purchaser’s part required for the lawful execution
and delivery of the Transaction Documents to which it is a party has been taken. Upon their execution and delivery, the Transaction Documents will be valid and binding obligations of such Purchaser, enforceable against such Purchaser in accordance
with their respective terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights, (b) as limited by general principles
of equity that restrict the availability of equitable remedies, and (c) to the extent that the enforceability of the indemnification provisions may be limited by applicable Legal Requirements. 

(b) Investment Representations. Such Purchaser understands that the Shares have not been registered under the Securities Act.
Such Purchaser also understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon such Purchaser’s warranties contained in this Agreement. Such Purchaser
hereby warrants as follows: 
 (i) Purchaser Bears Economic Risk. Such Purchaser has substantial experience in evaluating and
investing in private placement transactions of securities in companies similar to the Company so that it is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. Such Purchaser
must bear the economic risk of this investment indefinitely unless the Shares are registered pursuant to the Securities Act, or an exemption from registration is available. Such Purchaser understands that the Company has no present intention of
registering the Shares or any shares in its capital. Such Purchaser also understands that there is no assurance that any exemption from registration under the Securities Act will be available and that, even if available, such exemption may not allow
such Purchaser to transfer all or any portion of the Shares under the circumstances, in the amounts or at the times such Purchaser might propose. 

(ii) Acquisition for Own Account. Such Purchaser is acquiring the Shares for such Purchaser’s own account for investment
only, and not with a view towards their distribution. 
 (iii) Purchaser Can Protect Its Interest. Such Purchaser warrants
that by reason of its, or of its management’s, business or financial experience, such Purchaser has the capacity to protect its own interests in connection with the transactions contemplated in the Transaction Documents. Further, such Purchaser
is aware of no publication of any advertisement in connection with the transactions contemplated in the Agreement. 
 (iv)
Accredited Investor. Such Purchaser warrants that it is an accredited investor within the meaning of Regulation D under the Securities Act. 

(v) Company Information. Such Purchaser has received the applicable financial statements of the Company and has had an
opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company. Such Purchaser has also had the opportunity to ask questions of and receive answers from, the Company and
its management regarding the terms and conditions of this investment. 

 (vi) Rule 144. Such Purchaser acknowledges and agrees that the Shares are
“restricted securities” as defined in Rule 144 promulgated under the Securities Act as in effect from time to time and must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such
registration is available. Such Purchaser has been advised or is aware of the provisions of Rule 144, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including, among other
things: the availability of certain current public information about the Company, the resale occurring following the required holding period under Rule 144 and the number of shares being sold during any three-month period not exceeding specified
limitations. 
 (vii) “Bad Actor” Matters. Such Purchaser hereby warrants that no Disqualification Events are
applicable to such Purchaser or any of its Rule 506(d) Related Parties (as defined below), except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable; provided, however, that with respect
to Roche Finance Ltd, such warrantee shall not apply to any of its Rule 506(d) Related Parties. Such Purchaser hereby agrees that it shall notify the Company promptly in writing in the event a Disqualification Event becomes applicable to such
Purchaser or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. For the purposes of this Section 3.3(b)(vii), “Rule 506(d)
Related Party” shall mean a Person that is a beneficial owner of Purchaser’s securities for purposes of Rule 506(d) of the Securities Act. 

(viii) Residence. If such Purchaser is an individual, then such Purchaser resides in the state or province identified in the
address of such Purchaser set forth on Annex A; if such Purchaser is a partnership, corporation, limited liability company or other entity, then the office or offices of such Purchaser in which its investment decision was made is located at
the address or addresses of such Purchaser set forth on Annex A. 
 (ix) Non-U.S.
Investors. If such Purchaser is not a United States person (as defined by Section 7701(a)(30) of the U.S. Internal Revenue Code of 1986, as amended), or if such Purchaser is a U.S. subsidiary or Affiliate of a foreign parent company,
(“Non-U.S. Purchaser”), such Purchaser hereby warrants that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to
subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of its proposed Ordinary Shares, (ii) any foreign exchange restrictions applicable to such purchase,
(iii) any government or other consents that may need to be obtained, and (iv) the Tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of such Ordinary Shares. Each Non-U.S. Purchaser further warrants that either (x) it does not now, nor will it after any Closing, hold 10% or greater, directly or indirectly, of the voting interest in the Company or (y) if it does or
will, such Non-U.S. Purchaser shall notify the Company and shall provide such information as the Company may request to comply with U.S. state, federal, or local regulations. The Company’s offer and sale
and Non-U.S. Purchaser’s subscription and payment for and continued beneficial ownership of its proposed Ordinary Shares will not violate any applicable securities or other laws of Non-U.S. Purchaser’s jurisdiction. 
 (c) Brokers and Finders. No Person will have, as
a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding
entered into by or on behalf of such Purchaser. 
 (d) Independent Investment Decision. Such Purchaser has independently
evaluated the merits of its decision to purchase its Ordinary Shares pursuant to the Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business and/or legal counsel in making such
decision. Such Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to such Purchaser in connection with the purchase of its Ordinary Shares constitutes legal, tax or investment advice.
Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of its Ordinary Shares. Neither such inquiries nor any other investigation
conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the Company’s warranties contained in the Transaction
Documents (as qualified by this Agreement (including the Disclosure Schedules)). 

 (e) Reliance on Exemptions. Such Purchaser understands that the Shares are
being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s
compliance with, the warranties, agreements, acknowledgements and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire their Ordinary Shares.

 (f) No Governmental Review. Such Purchaser understands that no Governmental Authority has passed on or made any
recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor has any such authority passed upon or endorsed the merits of the offering of the Shares. 

(g) FSMA Confirmation. Such Purchaser hereby confirms to the Company that it falls within one of the exemptions contained in the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, relating to the experience or wealth of such Purchaser (such as are contained in articles 19(5), 48 or 49(2) of such Order). 

The Company and each of the Purchasers acknowledge and agree that no party to this Agreement has made or makes any representations or
warranties with respect to the transactions contemplated hereby other than those warranties specifically set forth in this Article 3 and the Transaction Documents. 

ARTICLE 4 
 OTHER
AGREEMENTS OF THE PARTIES 
 4.1 Transfer Restrictions. 

(a) Compliance with Laws. Notwithstanding any other provision of the Transaction Documents, until the Shares are converted into
Spring Bank Common Stock pursuant to Section 1.4(a) of the Share Exchange Agreement, each Purchaser covenants that its Ordinary Shares may be disposed of only: 

(i) in accordance with the Company’s articles of association (from time to time) and the terms of the Shareholders’
Agreement; and 
 (ii) pursuant to an effective registration statement under, and in compliance with the requirements of, the
Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable laws (including state and federal securities laws). In
connection with any transfer of the Shares other than (i) pursuant to an effective registration statement or (ii) to the Company (where permitted by law), the Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such
transferred Ordinary Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement. 

(b) Legends. Share Certificates evidencing the Shares shall bear any legend as required by the “Blue Sky” laws of any
state and a restrictive legend in substantially the following form until such time as they are not required under Section 4.1(c) (and a stock transfer order may be placed against transfer of the Share Certificates for the Shares): 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT
REQUIRED. 

 In addition, if any Purchaser is an Affiliate of the Company, Share Certificates evidencing
the Shares issued to such Purchaser shall bear a customary “affiliates” legend. 
 (c) Removal of Legends. Subject
to the Company’s right to request an opinion of counsel as set forth in Section 4.1(a), the legend set forth in Section 4.1(b) above shall be removable and the Company shall issue or cause to be issued a Share Certificate without such
legend or any other legend (except for any “affiliates” legend as set forth in Section 4.1(b)) to the holder of the applicable Shares upon which it is stamped, if (i) such Shares are registered for resale and resold pursuant to
an effective registration statement under the Securities Act, (ii) such Shares are sold or transferred in compliance with Rule 144 (if the transferor is not an Affiliate of the Company), including without limitation in compliance with the
current public information requirements of Rule 144 if applicable to the Company at the time of such sale or transfer, and the holder and its broker have delivered customary documents reasonably requested by counsel to the Company in connection with
such sale or transfer, or (iii) such Shares are eligible for sale under Rule 144 without the requirement that the Company be in compliance with the current public information requirements of Rule 144 and without other restriction and counsel to
the Company has provided written confirmation of such eligibility to the Company. Any fees (with respect to the counsel to the Company or otherwise) associated with the removal of such legend shall be borne by the Company. 

4.2 Form D and Blue Sky. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D
and to provide a copy thereof to each Purchaser who requests a copy in writing promptly after such filing. The Company shall take such action as the Company shall reasonably determine is necessary in order to qualify the Shares for sale to the
Purchasers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), which, subject to the accuracy of the
Company’s and the Purchaser’s warranties set forth herein, shall consist of the submission of all filings and reports relating to the offer and sale of the Shares pursuant to Rule 506 of Regulation D required under applicable securities or
“Blue Sky” laws of the states of the United States following the Closing Date, and shall provide evidence of any such action so taken to the Purchasers who request in writing such evidence. 

4.3 No Integration. The Company has not and shall not, and shall use its commercially reasonable efforts to ensure that Spring
Bank and the Affiliates of the Company and the Affiliates of Spring Bank shall not, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be
integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchasers. 

4.4 Use of Proceeds. The Company intends to use the net proceeds from the sale of the Shares hereunder for general working
capital. 
 ARTICLE 5 

CONDITIONS PRECEDENT TO CLOSING 

5.1 Conditions Precedent to the Obligations of the Purchasers to Purchase Shares at the Closing. The obligation of each
Purchaser to acquire Shares at the Closing is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions: 

(a) Warranties. The Company warranties are true and correct in all respects as of the date of this Agreement and are true and correct
in all respects on and as of the Closing Date with the same force and effect as if made on the Closing Date, except (i) for those warranties which address matters only as of a particular date (which warranties were so true and correct as of
such particular date); (ii) if the Company delivers a Supplemental Disclosure Schedule at or immediately prior to Closing, providing updated disclosures in respect of the intervening period following signing; and (iii) where the failure of
those warranties would not have a Material Adverse Effect (disregarding all materiality qualifiers included in such warranties). 

(b) Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by it on or prior to the Closing Date. 

 (c) No Injunction. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by any Governmental Authority of competent jurisdiction that prohibits the consummation of the sale of the Shares. 

(d) Consents. The Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary for
consummation of the purchase and sale of the Shares at the Closing (except for the Required Approvals that may be obtained after the Closing), all of which shall be and remain so long as necessary in full force and effect. 

(e) Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a). 

(f) Exchange. Each of the conditions to the consummation of the Exchange set forth in the Share Exchange Agreement shall have been
satisfied or waived (if permissible under applicable Legal Requirements) and the parties to the Share Exchange Agreement shall be ready, willing and able to consummate the Exchange immediately after the Closing on the terms and conditions set forth
therein. 
 (g) Termination. This Agreement shall not have been terminated as to such Purchaser in accordance with
Section 6.17. 
 (h) Funding. The Actual Subscription Amount will have been released with respect to each other Purchaser in
accordance with Section 2.2(b) or the Company shall have otherwise received proceeds in respect of the sale of the Shares equal to the aggregate of each Purchaser’s Actual Subscription Amount. 

5.2 Conditions Precedent to the Obligations of the Company to sell Shares at the Closing. The Company’s obligation to sell
and issue the Shares to the Purchasers at the Closing is subject to the fulfillment on or prior to the Closing Date of the following conditions: 

(a) Warranties. The warranties made by such Purchaser in Section 3.3 hereof shall be true and correct in all material respects
(except for those warranties which are qualified as to materiality, in which case such warranties shall be true and correct in all respects) as of the date of this Agreement, and as of the Closing Date as though made on and as of such date, except
for warranties that speak as of a different specified date (which warranties shall have been so true and correct as of such specified date). 

(b) Performance. Such Purchaser shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser on or prior to the Closing Date. 

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any Governmental Authority of competent jurisdiction that prohibits the consummation of the sale of the Shares. 

(d) Exchange. Each of the conditions to the consummation of the Exchange set forth in the Share Exchange Agreement shall have
been satisfied or waived (if permissible under applicable Legal Requirements) and the parties to the Share Exchange Agreement shall be ready, willing and able to consummate the Exchange immediately after the Closing on the terms and conditions set
forth therein. 
 (e) Termination. This Agreement shall not have been terminated as to such Purchaser in accordance with
Section 6.17. 
 (f) Receipt of Funds. The Actual Subscription Amount with respect to each Purchaser shall have been
received by the Company. 

 ARTICLE 6 

MISCELLANEOUS 
 6.1
Fees and Expenses. The Company and the Purchasers shall each pay the fees and expenses of their respective advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party in connection with the
negotiation, preparation, execution, delivery and performance of this Agreement. 
 6.2 Entire Agreement. The Transaction
Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter thereof and supersede all prior agreements, understandings, discussions warranties and representations,
oral or written, with respect to such matters. Each of the parties acknowledges and agrees that it has not entered into this Agreement in reliance on any statement or representation of any person (whether a party to this Agreement or no) other than
as expressly incorporated in this Agreement and the other Transaction Documents. Without limiting the generality of the foregoing, each of the parties irrevocably and unconditionally waives any right or remedy it may have to claim damages and/or to
rescind this Agreement by reason of any misrepresentation (other than a fraudulent misrepresentation) having been made to it by any person (whether a party to this Agreement or not) and upon which it has relied in entering into this Agreement. Each
of the parties acknowledges and agrees that the only cause of action available to it under the terms of this Agreement and the Transaction Documents in respect of a Claim shall be for breach of contract. 

6.3 Further Assurance. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and
deliver to the other (and shall negotiate, if required, in good faith) such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents. 

6.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful
transmission) or e-mail delivery of a .PDF format data file at the facsimile number or e-mail address, as applicable, specified in this Section 6.3 during the
recipient’s normal business hours on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of
successful transmission) or e-mail delivery of a .PDF format data file at the facsimile number or e-mail address, as applicable, specified in this Section 6.3 on a
day that is not a Business Day or not during the recipient’s normal business hours on any Business Day, (c) the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day
delivery specified, or (d) two Business Days after deposit with an internationally recognized expedited delivery services company, freight prepaid for delivery to a non-U.S. address, specifying next
available Business Day delivery, with written verification of receipt. The address for such notices and communications shall be as follows: 
  

					
	If to the Company:	 	F-Star Therapeutics Limited
		 	Eddeva B920 Babraham Research
		 	Campus	 	
		 	Cambridge, United Kingdom CB22 AT
		 	Telephone No.:	 	+44-1223-497400
		 	E-Mail:	 	John.Fitzpatrick@f-star.com
		 	Attention:	 	General Counsel
		
	With a copy to:	 	Mintz, Levin, Cohn, Ferris, Glovsky
		 	and Popeo, P.C.	 	
		 	One Financial Center
		 	Boston, MA 02111
		 	Telephone No.:	 	(617) 542-6000
		 	Facsimile No.:	 	(617) 542-2241
		 	E-Mail:	 	wchicks@mintz.com
		 	Attn:	 	William Hicks
		
	If to a Purchaser:	 	To the address set forth under such
Purchaser’s name on its signature page
hereof

 or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

6.5 Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written
instrument signed by the Company and the Purchasers hereto. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration shall be offered or paid
to any Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to all Purchasers who then hold Shares. 

6.6 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof, or affect construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be
applied against any party. 
 6.7 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be
binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of the Purchasers (other than by Exchange or
consolidation or to an entity which acquires the Company, including by way of acquiring all or substantially all of the Company’s assets). Any Purchaser may assign its rights hereunder in whole or in part to any Person to whom such Purchaser
assigns or transfers any Shares in compliance with the Transaction Documents and applicable Legal Requirements, provided such transferee shall agree in writing to be bound, with respect to the transferred Shares, by the terms and conditions of this
Agreement that apply to the Purchasers. 
 6.8 Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and, except as provided in the immediately preceding Section 6.7, is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

6.9 Governing Law and Jurisdiction. This Agreement (and any dispute or claim relating to it or its subject matter (including non-contractual claims)) is governed by and is to be construed in accordance with English law. The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any
claim, dispute or issue (including non-contractual claims) which may arise out of or in connection with this Agreement. 

6.10 Survival. The warranties, including the Company Warranties, contained herein shall terminate at the Closing and only the
agreements and covenants contained herein that by their terms survive the Closing shall survive the Closing in accordance with their terms. 

6.11 Execution. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, and all the
counterparts when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that the parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a .PDF format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .PDF signature page were an original thereof. 

6.12 Severability. If any provision of this Agreement is held to be invalid or unenforceable by any judicial or other competent
authority, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor and achieves that same or substantially the same effect or result, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 

 6.13 Replacement of Shares. If any Share Certificate evidencing any of the Shares is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new Share Certificate, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and the execution by the holder thereof of a customary lost Share Certificate indemnity. The applicants for a new Share Certificate under such circumstances shall also pay any
reasonable third-party costs associated with the issuance of such replacement Share Certificate. If a replacement Share Certificate evidencing any of the Shares is requested due to a mutilation thereof, the Company may require delivery of such
mutilated Share Certificate as a condition precedent to any issuance of a replacement. 
 6.14 Remedies. Subject always to
Section 6.2, in addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.
The parties agree that irreparable damage may occur in the event that any of the provisions of the Transaction Documents were not performed in accordance with their specific terms or were otherwise breached and that monetary damages may not be
adequate compensation for any loss incurred by the Purchasers, the Company by reason of any breach of any such provisions. 
 6.15
Adjustments in Share Numbers and Prices. In the event of any share split, subdivision, dividend or distribution payable in Ordinary Shares (or other securities or rights convertible into, or entitling the holder thereof to receive directly or
indirectly Ordinary Shares), combination, recapitalization, merger, consolidation or other reorganization or similar event occurring after the date hereof, each reference in any Transaction Document to the Shares, a number of Ordinary, a price per
Ordinary Share or the class or type of securities with respect to the Shares shall be deemed to be amended to appropriately account for such event. 

6.16 Independent Nature of the Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. The decision of each
Purchaser to purchase Ordinary Shares pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no
Purchaser and any of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials, statement or opinions. Nothing contained herein or in any other
Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in
connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents. Each Purchaser shall
be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an
additional party in any Proceeding for such purpose. The Company acknowledges that each of the Purchasers has been provided with the same Transaction Documents for the purpose of closing a transaction with multiple Purchasers and not because it was
required or requested to do so by any Purchaser. The Company’s obligations to each Purchaser under this Agreement and the other Transaction Documents are identical to its obligations to each other Purchaser other than such differences resulting
solely from the number of Ordinary Shares purchased by such Purchaser. 
 6.17 Termination. This Agreement may be terminated and the
sale and purchase of the Shares abandoned (a) with respect to a particular Purchaser, at any time prior to the Closing, by mutual written consent of the Company and such Purchaser; (b) if the Closing has not been consummated on or prior to
5:00 p.m., New York City time, on the End Date by any Purchaser (with respect to itself only), upon written notice to the Company; (c) if the Exchange has not been consummated on or prior to 5:00 p.m., New York City time, on the End Date by any
Purchaser (with respect 

 
to itself only), or (d) by either the Company or any Purchaser (with respect to such Purchaser only) upon written notice to the other if consummation of the transactions contemplated hereby
would violate any no appealable order, degree or judgment of any Governmental Authority having competent jurisdiction; provided, however, that the right to terminate this Agreement under this Section 6.17 shall not be available to any Person
whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time. Nothing in this Section 6.17 shall be deemed to release any party from any
liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or
the other Transaction Documents. In the event of a termination pursuant to this Section 6.17, the Company shall promptly notify all non-terminating Purchasers. Upon a termination in accordance with this
Section 6.17, the Company and the terminating Purchaser(s) shall not have any further obligation or liability (including arising from such termination) to the other, and no Purchaser will have any liability to any other Purchaser under the
Transaction Documents as a result therefrom. 
 6.18 Waiver of Conflicts. Each Purchaser acknowledges that: (a) it has read this
Agreement; (b) it has been represented in the preparation, negotiation and execution of this Agreement by legal counsel of its own choice or has voluntarily declined to seek such counsel; and (c) it understands the terms and consequences
of this Agreement and is fully aware of the legal and binding effect of this Agreement. Each Purchaser understands that the Company has been represented in the preparation, negotiation and execution of this Agreement by Company Counsel and that
Company Counsel now or may in the future represent one or more Purchasers or their Affiliates in matters unrelated to the transactions contemplated by this Agreement, including the representation of such Purchasers or their Affiliates in matters of
a nature similar to those contemplated by this Agreement. The Company and each Purchaser hereby acknowledge that they have had an opportunity to ask for and have obtained information relevant to such representation, including disclosure of the
reasonably foreseeable adverse consequences of such representation, and hereby waives any conflict arising out of such representation solely with respect to the matters contemplated by this Agreement. 

6.19 Public Announcement. The Company shall and shall require that Spring Bank, by 9:00 a.m., New York City time, on the first (1st)
Business Day immediately following the date of this Agreement, issue one or more press releases or, in the case of Spring Bank, file with the Commission a current report on Form 8-K (collectively, the
“Disclosure Document”) disclosing all material terms of the transactions contemplated hereby, the Exchange, and any other material, non-public information that the Company or Spring
Bank has provided to Purchaser at any time prior to the filing of the Disclosure Document. From and after the issuance of the Disclosure Document, to the Company’s Knowledge, the Purchasers shall not be in possession of any material, non-public information received from the Company or any of its officers, directors, or employees. 

[Signature Pages Follow] 

 IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above. 
  

			
	F-STAR THERAPEUTICS LIMITED
		
	By:	 	  

	Name:	 	Eliot Forster, Ph.D
	Title:	 	President and Chief Executive Officer

 [Signature Page to Subscription Agreement] 

 PURCHASERS 

[Subscription Agreement Signature Page] 

 ANNEX A 

SCHEDULE OF PURCHASERS 
  

													
	Investment Syndicate	  	Actual Subscription
Amount	 	  	Calculated Shares	 	  	Shares
Purchased
Rounded
Down to
Whole
Sharesexhibit101-ablamendmentw

                                                                   Exhibit 10.1                                                           EXECUTION VERSION                AMENDMENT NO. 1 TO ABL CREDIT AGREEMENT        This AMENDMENT NO. 1 TO ABL CREDIT AGREEMENT dated as of September 29,  2020 (this “Amendment”), is by and among CVR Partners, LP, a Delaware limited partnership  (the “Company”), CVR Nitrogen, LP, a Delaware limited partnership (“CVR Nitrogen”), East  Dubuque  Nitrogen  Fertilizers,  LLC,  a  Delaware  limited  liability  company  (“East  Dubuque”),  CVR  Nitrogen  Holdings,  LLC,  a  Delaware  limited  liability  company  (“CVR  Nitrogen  Holdings”),  Coffeyville  Resources  Nitrogen  Fertilizers,  LLC,  a  Delaware  limited  liability  company  (“Coffeyville  Resources”  and,  together  with  the  Company,  CVR  Nitrogen,  East  Dubuque and CVR Nitrogen Holdings, the “Borrowers”), CVR Nitrogen GP, LLC, a Delaware  limited  liability  company  (“CVR  Nitrogen  GP”),  CVR  Nitrogen  Finance  Corporation,  a  Delaware  corporation  (“CVR  Finance”  and,  together  with  CVR  Nitrogen  GP,  the  “Guarantors”),  the  Lenders  party  hereto  and  UBS  AG,  Stamford  Branch,  as  Administrative  Agent and Collateral Agent.                               W I T N E S S E T H :        WHEREAS, the  Borrowers,  the  Guarantors,  the  Lenders  and  UBS  AG,  Stamford  Branch,  as  Administrative  Agent  and  Collateral  Agent,  entered  into  that  certain  ABL  Credit  Agreement  dated  as  of  September  30,  2016  (as  amended,  restated,  supplemented  or  otherwise  modified from time to time prior to the date hereof, the “Credit Agreement”, and as amended  by this Amendment on the Amendment No. 1 Effective Date (as defined below), the “Amended  Credit Agreement”);        WHEREAS,  immediately  prior  to  effectiveness  of  this  Amendment,  there  are  outstanding Revolving Loan Commitments in an aggregate committed amount of $50,000,000  (the “Existing Revolving Loan Commitments”);        WHEREAS, pursuant to Section 4.02(a) of the Credit Agreement, the Borrowers have  notified  the  Administrative  Agent  of  their  intent  to  reduce  the  Existing  Revolving  Loan  Commitments  from  $50,000,000  to  $35,000,000  (such  reduced  Existing  Revolving  Loan  Commitments, the “2020 Revolving Loan Commitments”); and        WHEREAS,  pursuant  to  Section  13.12  of  the  Credit  Agreement,  the  parties  hereto  (which  include  100%  of  the  Lenders)  desire  to  amend  the  Credit  Agreement  to,  among  other  things,  (a)  modify  certain  pricing  provisions  thereof,  (b)  extend  the  Initial  Revolving  Commitment Termination Date from September 29, 2021 to September 30, 2022 and (c) make  other changes referred to herein, in each case subject to the terms and conditions set forth herein.        NOW, THEREFORE, the parties hereto agree as follows:        Section 1.  Defined Terms; References. Unless otherwise specifically defined herein,  each  term  used  herein  that  is  defined  in  the  Amended  Credit  Agreement  has  the  meaning  assigned to such term in the Amended Credit Agreement. Unless expressly provided otherwise,  each  reference  in  the  Credit  Agreement  to  “this  Agreement”,  “hereof”,  “hereunder”,  “herein”,                                          1

 

“hereby”  and  each  other  similar  reference  to  the  Credit  Agreement,  and  each  reference  to  the  Credit Agreement in any Credit Document shall, effective on the Amendment No. 1 Effective  Date, refer to the Amended Credit Agreement.         Section 2.  Amendments.   Effective  on  the  Amendment  No.  1  Effective  Date,  the  Credit Agreement shall be amended to (a) delete the stricken text (indicated textually in the same  manner as the following example: stricken text) and to add the double-underlined text (indicated  textually in the same manner as the following example: double-underlined text) as set forth in the  pages of the Amended Credit Agreement attached as Exhibit A hereto and (b) replace Schedules  1.01(a),  1.01(b),  10.06(g)  and  10.13  thereof  in  their  entirety  with Schedules   1.01(a),  1.01(b),  10.06(g) and 10.13, respectively, hereof.         Section 3.  Representations  and  Warranties.  As  of  the  Amendment  No.  1  Effective  Date, each Credit Party party hereto represents and warrants that:         (a)  the execution, delivery and performance by such Credit Party of this Amendment  have been duly authorized by all necessary Business action;         (b)  the execution, delivery and performance by such Credit Party of this Amendment,  and compliance by it with the terms and provisions hereof, do not (i) contravene any provision of  any  law,  statute,  rule  or  regulation  or  any  order,  writ,  injunction  or  decree  of  any  court  or  Governmental  Authority,  except  for  contraventions  which,  either  individually  or  in  the  aggregate, could not reasonably be expected to have a Material Adverse Effect, (ii) conflict with  or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a  default under, or result in the creation or imposition of (or the obligation to create or impose) any  Lien (except pursuant to the Security Documents, the Secured Notes Security Documents and the  Refinancing Notes Security Documents) upon any of the property or assets of such Credit Party  or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, credit  agreement  or  loan  agreement,  or  any  other  agreement,  contract  or  instrument,  in  each  case  to  which such Credit Party or any of its Subsidiaries is a party or by which it or any its property or  assets is bound or to which it may be subject, including the Secured Notes Indenture, except for  conflicts,  breaches,  defaults  or  impositions  of  Liens  which,  either  individually  or  in  the  aggregate, could not reasonably be expected to have a Material Adverse Effect, or (iii) violate  any  provision  of  the  certificate  or  articles  of  incorporation,  certificate  of  formation,  limited  liability company agreement or bylaws (or equivalent organizational documents), as applicable,  of such Credit Party or any of its Subsidiaries;         (c)  no  material  order,  consent,  approval,  license,  authorization  or  validation  of,  or  filing, recording or registration with (except for (x) those that have otherwise been obtained or  made on or prior to the Amendment No. 1 Effective Date and which remain in full force and  effect on the Amendment No. 1 Effective Date and (y) filings which are necessary to perfect the  security interests created or intended to be created under the Security Documents), or exemption  by, any Governmental Authority is required to be obtained or made by, or on behalf of, such  Credit Party to authorize, or is required to be obtained or made by, or on behalf of, such Credit  Party in connection with, (a) the execution, delivery and performance of this Amendment or (b)  the legality, validity, binding effect or enforceability of this Amendment; such Credit Party has                                         2

 

duly  executed  and  delivered  this  Amendment,  which  constitutes  its  legal,  valid  and  binding  obligation enforceable in accordance with its terms, except to the extent that the enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other similar laws generally affecting creditors’ rights and by equitable principles (regardless of  whether enforcement is sought in equity or at law);         (d)  the  representations  and  warranties  of  such  Credit  Party  contained  in  the  Credit  Agreement and in the other Credit Documents are true and correct in all material respects with  the same effect as though such representations and warranties were made on the Amendment No.  1 Effective Date (it being understood and agreed that (i) 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 (ii) any representation or warranty that is qualified as  to “materiality,” “Material Adverse Effect” or similar language is true and correct in all respects  on any such date);          (e)  no Default or Event of Default has occurred and is continuing both immediately  before and immediately after the Amendment No. 1 Effective Date; and         (f)   immediately after giving effect to this Amendment, (i) the Aggregate Exposure  shall not exceed 100% of the Borrowing Base at such time and (ii) the Aggregate Exposure at  such time shall not exceed the Total Revolving Loan Commitment at such time.        Section 4.  Effectiveness.  This  Amendment  shall  become  effective  on  the  date  (the  “Amendment No. 1 Effective Date”) on which each of the following conditions precedent shall  have been satisfied (or waived by the Administrative Agent):          (a)  the Administrative Agent shall have received:               (i)  a  signed  counterpart  of  this  Amendment  from  each  Borrower,  each        Guarantor, each Lender and the Administrative Agent; and              (ii)  such certificates of good standing from the applicable secretary of state of        the state of organization of each Credit Party, certificates of resolutions or other action        (which  shall  reflect  each  Credit  Party’s  approval  of  or  consent  to  this  Amendment),        incumbency  certificates  and/or  other  certificates  of  Authorized  Officers  of  each  Credit        Party  as  the  Administrative  Agent  may  reasonably  require  evidencing  the  identity,        authority  and  capacity  of  each  Authorized  Officer  thereof  authorized  to  act  as  an        Authorized Officer in connection with this Amendment.          (b)  The Administrative Agent and the Lenders shall have received all documentation  and other information required by regulatory authorities under applicable “know your customer”  and anti-money laundering rules and regulations, including the Beneficial Ownership Regulation  and the PATRIOT Act, two (2) Business Days prior to the Amendment No. 1 Effective Date.                                         3

 

       (c)  The Borrowers shall have paid to each Lender a consent fee equal to 50 bps of  such Lender’s pro rata share of the 2020 Revolving Loan Commitments as set forth on Schedule  1.01a hereof.          (d)  The  Borrowers  shall  have  paid  to  the  Administrative  Agent  all  costs,  fees  and  expenses  (including  reasonable  and  documented  out-of-pocket  legal  fees  and  expenses,  to  the  extent an invoice for such legal fees and expenses is provided to the Borrowers at least two (2)  Business Days prior to the Amendment No. 1 Effective Date, directly to counsel if requested by  the Administrative Agent) and other compensation required to be paid by the Borrowers pursuant  to  (x)  Section  13.01  of  the  Credit  Agreement  and  (y)  the  2020  Fee  Letter  payable  to  the  Administrative Agent, in each case, to the extent then due and payable.         (e)  The  Administrative  Agent  and  the  Collateral  Agent  shall  have  received  a  Borrowing Base Certificate (reflecting the terms of the Amended Credit Agreement), dated as of  the  last  day  of  August,  2020,  meeting  the  requirements  of  Section  9.01(j)  of  the  Credit  Agreement.        Section 5.  Effect  of  this  Amendment.  Except  as  expressly  set  forth  herein,  this  Amendment  shall  not  by  implication  or  otherwise  limit,  impair,  constitute  a  waiver  of  or  otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the  Credit Agreement or any other Credit Document, and shall not alter, modify, amend or in any  way affect any of the terms, conditions, obligations, covenants or agreements contained in the  Credit Agreement or any provision of the Credit Agreement or of any other Credit Document, all  of  which  are  ratified  and  affirmed  in  all  respects  and  shall  continue  in  full  force  and  effect.  Except as expressly set forth herein, nothing herein shall be deemed to be a waiver, amendment,  modification  or  other  change  of  any  of  the  terms,  conditions,  obligations,  covenants  or  agreements  contained  in  the  Credit  Agreement  or  any  other  Credit  Document  in  similar  or  different circumstances. This Amendment shall constitute a “Credit Document” for all purposes  of the Amended Credit Agreement and the other Credit Documents.        Section 6.  Reaffirmation.  By signing this Amendment, (a) each Credit Party hereby  confirms  that  (i)  notwithstanding  the  effectiveness  of  this  Amendment  and  the  transactions  contemplated hereby, the obligations of such Credit Party under the Amended Credit Agreement  and the other Credit Documents (X) are entitled to the benefits of the guarantees and the security  interests set forth or created in the Amended Credit Agreement and the other Credit Documents  and  (Y)  constitute  “Guaranteed  Obligations”  and  “Obligations”  for  purposes  of  the  Amended  Credit Agreement and all other Credit Documents and (ii) each Credit Document to which such  Credit Party is a party is, and shall continue to be, in full force and effect and is hereby ratified  and confirmed in all respects and shall remain in full force and effect according to its terms (in  the case of the Credit Agreement, as amended hereby) and (b) each Guarantor hereby confirms  and  ratifies  its  continuing  unconditional  obligations  as  Guarantor  under  the  Amended  Credit  Agreement  with  respect  to  all  of  the  Guaranteed  Obligations.   Each  Credit  Party  ratifies  and  confirms  that  all  Liens  granted,  conveyed,  or  assigned  to  the  Administrative  Agent  by  such  Credit  Party  pursuant  to  any  Credit  Document  to  which  it  is  a  party  remain  in  full  force  and                                          4

 

effect, are not released or reduced, and continue to secure full payment and performance of the  Obligations as modified hereby.        Section 7.  Miscellaneous Provisions.          (a)  The  provisions  of  Sections  13.01  (Payment  of  Expenses,  etc.),  13.08  (GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL),  13.09  (Counterparts)  and  13.10  (Effectiveness)  of  the  Amended  Credit  Agreement  shall  apply  with like effect as to this Amendment.         (b)  Delivery of an executed counterpart of this Amendment by facsimile, electronic  transmission, telecopy or other electronic imaging means (e.g., “pdf” or “tif”) or any electronic  signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, shall be  as effective as delivery of an original executed counterpart hereof.                                [Signature Pages Follow]                                         5

 

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly  executed as of the date first above written.                                         CVR PARTNERS, LP,                                        as a Borrower                                         By:   CVR GP, LLC, its general partner                                        By:    /s/ Mark A. Pytosh                                              Name: Mark A. Pytosh                                              Title: President and                                                     Chief Executive Officer                                          EAST DUBUQUE NITROGEN                                         FERTILIZERS, LLC,                                        as a Borrower                                         By:    /s/ Mark A. Pytosh                                              Name: Mark A. Pytosh                                              Title: President and                                                     Chief Executive Officer                                          CVR NITROGEN HOLDINGS, LLC,                                        as a Borrower                                         By:    /s/ Mark A. Pytosh                                              Name: Mark A. Pytosh                                              Title: President and                                                     Chief Executive Officer                                          COFFEYVILLE RESOURCES NITROGEN                                         FERTILIZERS, LLC,                                        as a Borrower                                         By:    /s/ Mark A. Pytosh                                              Name: Mark A. Pytosh                                              Title: President and                                                     Chief Executive Officer                   [SIGNATURE PAGE TO ABL AMENDMENT NO. 1]

 

                       CVR NITROGEN, LP,                        as a Borrower                         By:   CVR NITROGEN GP, LLC, its                               general partner                        By:    /s/ Mark A. Pytosh                              Name: Mark A. Pytosh                              Title: President and                                     Chief Executive Officer                          CVR NITROGEN GP, LLC,                        as a Guarantor                         By:    /s/ Tracy D. Jackson                              Name: Tracy D. Jackson                              Title: Executive Vice President and                                     Chief Financial Officer                          CVR NITROGEN FINANCE                         CORPORATION,                        as a Guarantor                         By:    /s/ Tracy D. Jackson                              Name: Tracy D. Jackson                              Title: Executive Vice President and                                     Chief Financial Officer   [SIGNATURE PAGE TO ABL AMENDMENT NO. 1]

 

                       UBS AG, STAMFORD BRANCH, as                            Administrative Agent, Collateral Agent                            and a Lender                         By:   /s/ Houssem Daly                              Name: Houssem Daly                              Title: Associate Director                         By:   /s/ Anthony Joseph                              Name: Anthony Joseph                              Title: Associate Director   [SIGNATURE PAGE TO ABL AMENDMENT NO. 1]

 

                       CREDIT SUISSE AG, CAYMAN ISLANDS                            BRANCH, as a Lender                         By:   /s/ Vipul Dhadda                              Name: Vipul Dhadda                              Title: Authorized Signatory                         By:   /s/ Vito Cotoia                              Name: Vito Cotoia                              Title: Authorized Signatory   [SIGNATURE PAGE TO ABL AMENDMENT NO. 1]

 

                                             Exhibit A  [Amendments to Credit Agreement attached]      Exhibit A to ABL Amendment No. 1

 

                                                                   EXECUTION VERSION                                                                              EXHIBIT A                              Conformed through Amendment No. 1, dated as of September 29, 2020  ______________________________________________________________________________                                                                 Deal CUSIP: 12663KAA6                                                               Facility CUSIP: 12663KAB4                                ABL CREDIT AGREEMENT                                          among                                   CVR PARTNERS, LP,                                  CVR NITROGEN, LP                                CVR NITROGEN GP, LLC                       CVR NITROGEN FINANCE CORPORATION                     EAST DUBUQUE NITROGEN FERTILIZERS, LLC                            CVR NITROGEN HOLDINGS, LLC               COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC                                            and                 CERTAIN OTHER SUBSIDIARIES OF CVR PARTNERS, LP                         FROM TIME TO TIME PARTY HERETO,                                   VARIOUS LENDERS,                             UBS AG, STAMFORD BRANCH, as                 ADMINISTRATIVE AGENT AND COLLATERAL AGENT                             ________________________________                                Dated as of September 29, 2016     as amended by Amendment No. 1 to ABL Credit Agreement dated as of September 29, 2020                                            and                              UBS AG, STAMFORD BRANCH                                            and                          CREDIT SUISSE SECURITIES (USA) LLC                as JOINT LEAD ARRANGERS and JOINT BOOK RUNNERS                            ________________________________    ________________________________________________________________________________

 

                                TABLE OF CONTENTS                                                                                     Page  SECTION 1.   Definitions and Accounting Terms                                        1         1.01  Defined Terms.                                                          1        1.02  Other Definitional Provisions.                                       4648       1.03   Divisions.                                                             49  SECTION 2.   Amount and Terms of Credit.                                          4649        2.01   The Commitments.                                                     4649       2.02   Minimum Amount of Each Borrowing.                                    4951       2.03   Notice of Borrowing.                                                 4952       2.04   Disbursement of Funds.                                               5052       2.05   Notes.                                                               5154       2.06   Conversions.                                                         5254       2.07   Pro Rata Borrowings.                                                 5255       2.08   Interest.                                                            5355       2.09   Interest Periods.                                                    5356       2.10   Increased Costs, Illegality, etc.                                    5456       2.11   Compensation.                                                        5658       2.12   Change of Lending Office.                                            5658       2.13   Replacement of Lenders.                                              5659       2.14   Company as Agent for Borrowers.                                      5760       2.15   Incremental Commitments.                                             5860       2.16   Extensions of Loans and Commitments.                                 5962       2.17   Effect of Benchmark Transition Effect.                                 64  SECTION 3.   Letters of Credit.                                                   6267        3.01   Letters of Credit.                                                   6267       3.02   Maximum Letter of Credit Outstandings; Final Maturities              6368       3.03   Letter of Credit Requests.                                           6368       3.04   Letter of Credit Participations.                                     6469       3.05   Agreement to Repay Letter of Credit Drawings.                        6570       3.06   Increased Costs.                                                     6671       3.07   Extended Commitments.                                                6672  SECTION 4.   Commitment Commission; Fees; Reductions of Commitment.               6772        4.01   Fees.                                                                6772       4.02   Voluntary Termination of Unutilized Commitments.                     6873       4.03   Mandatory Reduction of Commitments.                                  6873  SECTION 5.   Prepayments; Payments; Taxes.                                        6873        5.01   Voluntary Prepayments.                                               6873       5.02   Mandatory Repayments; Cash Collateralization.                        6974                                            (i)  #93457508v14

 

      5.03   Method and Place of Payment.                                         7176       5.04   Taxes.                                                               7378  SECTION 6.   Conditions Precedent to Credit Events on the Effective Date.         7680        6.01   Effective Date; Notes.                                               7681       6.02   Officer’s Certificate.                                               7681       6.03   Opinions of Counsel.                                                 7681       6.04   Company Documents; Proceedings; etc.                                 7681       6.05   Material Adverse Change, Approvals.                                  7681       6.06   Litigation.                                                          7782       6.07   Intercreditor Agreement.                                             7782       6.08   Security Agreement.                                                  7782       6.09   Financial Statements.                                                7782       6.10   Solvency Certificate; Insurance Certificates.                        7883       6.11   Fees, etc.                                                           7883       6.12   Initial Borrowing Base Certificate; Excess Availability.             7883       6.13   Field Examinations; etc.                                             7883       6.14   PATRIOTPatriot Act.                                                  7883       6.15   Federal Reserve Board.                                               7883  SECTION 7.   Conditions Precedent to All Credit Events.                           7884        7.01   No Default; Representations and Warranties.                          7884       7.02   Notice of Borrowing; Letter of Credit Request.                       7984       7.03   Borrowing Base Limitations.                                          7984       7.04   Affiliated Lender Conditions.                                        7984  SECTION 8.   Representations and Warranties.                                      8085        8.01   Company Status.                                                      8085       8.02   Power and Authority.                                                 8086       8.03   No Violation.                                                        8086       8.04   Approvals.                                                           8186       8.05   Financial Statements; Financial Condition; Undisclosed Liabilities.  8186       8.06   Litigation.                                                          8287       8.07   True and Complete Disclosure.                                        8287       8.08   Use of Proceeds; Margin Regulations.                                 8288       8.09   Tax Returns and Payments.                                            8288       8.10   Compliance with ERISA.                                               8388       8.11   Security Documents.                                                  8489       8.12   Properties.                                                          8490       8.13   Capitalization.                                                      8590       8.14   Subsidiaries.                                                        8590       8.15   Compliance with Statutes, etc.                                       8591       8.16   Governmental Regulation.                                             8591       8.17   Borrowing Base Calculation.                                          8591       8.18   Environmental Matters.                                               8591       8.19   Employment and Labor Relations.                                      8691       8.20   Intellectual Property, etc.                                          8692       8.21   Indebtedness.                                                        8792                                            (ii)  #93457508v14

 

      8.22   Insurance.                                                           8792       8.23   Sanctions and Anti-Corruption Laws.                                  8792       8.24   Material Contract.                                                   8793       8.25   No Defaults.                                                         8793       8.26   [Reserved.]                                                          8793       8.27   Notes.                                                               8793       8.28   Beneficial Ownership.                                                  93  SECTION 9.   Affirmative Covenants.                                               8793        9.01   Information Covenants.                                               8793       9.02   Books, Records and Inspections; and Field Examinations and Appraisals. 9197       9.03   Maintenance of Property; Insurance.                                  9298       9.04   Existence; Franchises.                                               9399       9.05   Compliance with Statutes, etc.                                       9499       9.06   Compliance with Environmental Laws.                                  9499       9.07   ERISA.                                                              95101       9.08   End of Fiscal Years; Fiscal Quarters.                               96102       9.09   Performance of Obligations.                                         96102       9.10   Payment of Taxes.                                                   96102       9.11   Use of Proceeds.                                                    96102       9.12   Additional Security; Further Assurances; etc.                       97102       9.13   Permitted Acquisitions.                                             98103       9.14   Landlords’ Agreements, Mortgages Agreements, Bailee Letters and Storage              Agreements.                                                         98104       9.15   Real Property Post-Closing Obligations.                             98104  SECTION 10. Negative Covenants.                                                  99104        10.01  Liens.                                                              99104       10.02  Consolidation, Merger, Purchase or Sale of Assets, etc.            102108       10.03  Dividends.                                                         104110       10.04  Indebtedness.                                                      106111       10.05  Advances, Investments and Loans.                                   109115       10.06  Transactions with Affiliates.                                      111117       10.07  Fixed Charge Coverage Ratio.                                       112118       10.08  Modifications of Certificate of Incorporation, By-Laws and Certain Other              Agreements; Limitations on Voluntary Payments, etc.                113119       10.09  Limitation on Certain Restrictions on Subsidiaries                 114119       10.10  Limitation on Issuance of Equity Interests.                        114120       10.11  Business.                                                          115120       10.12  Limitation on Creation of Subsidiaries and Unrestricted Subsidiaries. 115120       10.13  No Additional Deposit Accounts; etc.                               115121       10.14  Persons Subject to Sanctions and/or Anti-Corruption Laws.          116121  SECTION 11. Events of Default.                                                  116121        11.01  Payments.                                                          116121       11.02  Representations, etc.                                              116122       11.03  Covenants.                                                         116122       11.04  Default Under Other Agreements.                                    116122                                            (iii)  #93457508v14

 

      11.05  Bankruptcy, etc.                                                   117122       11.06  ERISA.                                                             117123       11.07  Security Documents.                                                118123       11.08  Guaranty.                                                          118123       11.09  Judgments.                                                         118123       11.10  Change of Control.                                                 118124       11.11  Intercreditor Agreement.                                           118124  SECTION 12. The Agents.                                                         119124        12.01  Appointment.                                                       119124       12.02  Nature of Duties.                                                  119125       12.03  Lack of Reliance on the Administrative Agent.                      119125       12.04  Certain Rights of the Agents.                                      120125       12.05  Reliance.                                                          120126       12.06  Indemnification.                                                   120126       12.07  Each Agent in Its Individual Capacity.                             120126       12.08  Holders.                                                           120126       12.09  Resignation by the Administrative Agent or the Collateral Agent.   121126       12.10  Collateral Matters.                                                122127       12.11  Delivery of Information.                                           123128  SECTION 13. Miscellaneous.                                                      123128        13.01  Payment of Expenses, etc.                                          123128       13.02  Right of Setoff.                                                   124130       13.03  Notices.                                                           125130       13.04  Benefit of Agreement; Assignments; Participations.                 125131       13.05  No Waiver; Remedies Cumulative                                     129134       13.06  Payments Pro Rata.                                                 129135       13.07  Calculations; Computations.                                        129135       13.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER              OF JURY TRIAL.                                                     130136       13.09  Counterparts.                                                      131137       13.10  Effectiveness.                                                     131137       13.11  Headings Descriptive.                                              131137       13.12  Amendment or Waiver; etc.                                          131137       13.13  Survival.                                                          134139       13.14  Domicile of Loans.                                                 134139       13.15  Register.                                                          134140       13.16  Confidentiality.                                                   135140       13.17  Patriot Act.                                                       135141       13.18  OTHER LIENS ON COLLATERAL; TERMS OF INTERCREDITOR              AGREEMENT; ETC.                                                    135141       13.19  Interest Rate Limitation.                                          136142       13.20  No Fiduciary Duty.                                                 136142       13.21  Acknowledgment and Consent to Bail-In of EEA Financial Institutions. 137142       13.22  Acknowledgment Regarding Any Supported QFCs.                          143  SECTION 14. Nature of Borrower Obligations.                                     137144                                            (iv)  #93457508v14

 

      14.01  Nature of Borrower Obligations.                                    137144       14.02  Independent Obligation.                                            137144       14.03  Authorization.                                                     138144       14.04  Reliance.                                                          138145       14.05  Contribution; Subrogation.                                         138145       14.06  Waiver.                                                            139145       14.07  Discharge Upon Sale of Borrower.                                   139145  SECTION 15. [RESERVED].                                                         139145  SECTION 16. Guaranty.                                                           139145        16.01  Guaranty of the Guaranteed Obligations.                            139145       16.02  Contribution by Guarantors.                                        139145       16.03  Payment by Guarantors.                                             140146       16.04  Liability of Guarantors Absolute.                                  140146       16.05  Waivers by Guarantors.                                             142148       16.06  Guarantors’ Rights of Subrogation, Contribution, etc.              142149       16.07  Subordination of Other Guaranteed Obligations.                     143149       16.08  Continuing Guaranty.                                               143149       16.09  Authority of Guarantors or the Borrowers.                          143150       16.10  Financial Condition of Company.                                    143150       16.11  Bankruptcy, etc.                                                   144150       16.12  Discharge of Guaranty Upon Sale of Guarantor.                      144151       16.13  Additional Guarantors.                                             144151                                             (v)  #93457508v14

 

                             SCHEDULES AND EXHIBITS  SCHEDULE 1.01(a)                 Commitments SCHEDULE 1.01(b)                 Certain Account Debtors/Concentration Limits SCHEDULE 1.01(c)                 Inventory Locations SCHEDULE 8.06                    Litigation SCHEDULE 8.12                    Real Property SCHEDULE 8.13                    Capitalization SCHEDULE 8.14                    Subsidiaries SCHEDULE 8.21                    Permitted Existing Indebtedness SCHEDULE 8.22                    Insurance SCHEDULE 10.01                   Existing Liens SCHEDULE 10.05                   Existing Investments SCHEDULE 10.06(g)                Existing Affiliate Agreements SCHEDULE 10.06(j)                Company Affiliate Agreements SCHEDULE 10.13                   Deposit Accounts SCHEDULE 13.03                   Lender Addresses  EXHIBIT A-1                      Form of Notice of Borrowing EXHIBIT A-2                      Form of Notice of Conversion/Continuation EXHIBIT B-1                      Form of Revolving Note EXHIBIT B-2                      Form of Swingline Note EXHIBIT C                        [RESERVED] EXHIBIT D                        Form of Section 5.04(c)(ii) Certificate EXHIBIT E                        Form of Officer’s Certificate EXHIBIT F                        Form of Security Agreement EXHIBIT G                        Form of Solvency Certificate EXHIBIT H                        Form of Compliance Certificate EXHIBIT I                        Form of Assignment and Assumption Agreement EXHIBIT J                        Form of Intercompany Note EXHIBIT K                        Form of Landlord Waiver and Consent Agreement EXHIBIT L                        Form of Joinder Agreement EXHIBIT M                        Form of Borrowing Base Certificate EXHIBIT N                        Form of Intercreditor Agreement EXHIBIT O                        Form of Incremental Commitment Agreement                                             -i-  #93457508v14

 

      ABL CREDIT AGREEMENT, dated as of September 29, 2016, among CVR PARTNERS, LP, a Delaware limited partnership (the “Company”), CVR NITROGEN, LP, a Delaware limited partnership (“CVR Nitrogen”), CVR NITROGEN GP, LLC, a Delaware limited liability company (“CVR Nitrogen GP”), CVR NITROGEN FINANCE CORPORATION, a Delaware corporation (“CVR Finance”), EAST DUBUQUE NITROGEN FERTILIZERS, LLC, a Delaware limited liability company (“East Dubuque”), CVR NITROGEN HOLDINGS, LLC, a Delaware limited liability company (“CVR Nitrogen Holdings”), COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC, a Delaware limited liability company (“Coffeyville Resources”), each other Borrower and Subsidiary Guarantor from time to time party hereto, the Lenders from time to time party hereto and UBS AG, STAMFORD BRANCH, as Administrative Agent and Collateral Agent.  All capitalized terms used herein and defined in Section 1.01 are used herein as therein defined.                                    W I T N E S S E T H:        WHEREAS, the Borrowers (as defined below) have requested that, immediately upon the satisfaction of the conditions precedent set forth in Section 7 below, the Lenders make available to the Borrowers a $50,000,000 asset based revolving credit facility for the making of revolving loans and the issuance of letters of credit for the account of the Borrowers, from time to time; and        WHEREAS, the Borrowers, each Lender, the Administrative Agent and the Collateral Agent have agreed to amend the existing credit agreement, effective as of the Amendment No. 1 Effective Date, to, among other things, reduce the Revolving Loan Commitment to $35,000,000, in each case pursuant to and in accordance with the terms and conditions set forth herein and in Amendment No. 1;        NOW, THEREFORE, IT IS AGREED:  SECTION 1.   Definitions and Accounting Terms        1.01   Defined Terms.        As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):         “2020 Fee Letter” shall mean the Fee Letter dated as of July 30, 2020 among UBS Securities LLC and the Company.         “ABL Priority Collateral” shall have the meaning provided in the Intercreditor Agreement.         “Account” shall mean an “account” as such term is defined in Article 9 of the UCC, and any and all supporting obligations in respect thereof.        “Account Debtor” shall mean each Person who is obligated on an Account.        “Acquired Entity or Business” shall mean either (x) the assets constituting a business, division or product line of any Person not already a Subsidiary or Unrestricted Subsidiary of a Credit Party or (y) more than 50% of the Equity Interests of any such Person, which Person shall, as a result of the acquisition of such Equity Interests, become a Borrower or a Subsidiary Guarantor (or shall be merged with and into a Borrower or a Subsidiary Guarantor, with such Borrower or such Subsidiary Guarantor being the surviving or continuing Person).   #93457508v14

 

      “Additional Margin” shall have the meaning provided in Section 2.15(a).         “Additional Security Documents” shall have the meaning provided in Section 9.12.         “Adjustable Applicable Margins” shall have the meaning provided in the definition of Applicable Margin.        “Administrative Agent” shall mean UBS AG, Stamford Branch, in its capacity as Administrative Agent for the Lenders hereunder and under the other Credit Documents, and shall include any successor to the Administrative Agent appointed pursuant to Section 12.09.        “Affected Financial Institution” shall mean (a) any EEA Financial Institution or (b) any UK Financial Institution.        “Affiliate” of any specified Person shall mean any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person; provided, however, (x) that none of the Administrative Agent, any Lender or any of their respective Affiliates shall be considered an Affiliate of any Credit Party or any Subsidiary thereof and (y) that for the purposes of the definition of “Eligible Accounts” only, no operating portfolio company of any Qualifying Owner (other than the Credit Parties and their respective Subsidiaries) shall constitute an Affiliate of any Credit Party or any of its Subsidiaries so long as the underlying transaction giving rise to the respective Eligible Account and such Eligible Account itself satisfy the introductory paragraph of Section 10.06.  For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.         “Affiliated Lender” shall mean Icahn Enterprises L.P. and any of its Affiliates that are bona fide debt funds that constitute a Lender hereunder.         “Affiliated LenderLender’s Claim” shall have the meaning provided in 13.04(c)(1i)(C).         “Agent Advance” shall have the meaning provided in Section 2.01(e).         “Agent Advance Amount” shall have the meaning provided in Section 2.01(e).         “Agent Advance Period” shall have the meaning provided in Section 2.01(e).         “Agents” shall mean, collectively, the Administrative Agent and the Collateral Agent, and individually, shall mean any one of the Administrative Agent or Collateral Agent.         “Aggregate Exposure” shall mean, at any time, the sum of (a) the aggregate principal amount of all Revolving Loans then outstanding, (b) the aggregate amount of all Letter of Credit Outstandings at such time (exclusive of Letter of Credit Outstandings which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Loans) and (c) the aggregate principal amount of all Swingline Loans then outstanding (exclusive of Swingline Loans which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Revolving Loans).                                              2  #93457508v14

 

      “Agreement” shall mean this credit agreement, as amended by Amendment No.1 and as further modified, supplemented, amended, restated (including any amendment and restatement hereof), extended or renewed from time to time.         “Amendment No. 1” means that certain Amendment No. 1 to ABL Credit Agreement dated as of the Amendment No. 1 Effective Date among the Borrowers, the Subsidiary Guarantors party thereto, the Lenders party thereto and UBS AG Stamford Branch, as Administrative Agent and Collateral Agent.        “Amendment No. 1 Effective Date” means September 29, 2020.        “Applicable Commitment Commission Percentage” shall mean (i) prior to the Amendment No. 1 Effective Date, (A) for the period from the Effective Date until the last day of the first full calendar quarter after the Effective Date, 0.375% per annum and (B) for each calendar quarter thereafter, (i1) if for the immediately preceding calendar quarter (or such shorter period, as the case may be) the daily average of the outstanding Revolving Loans and Letters of Credit is less than 50% of the Total Revolving Loan Commitment, 0.375% per annum and (ii2) if for the immediately preceding calendar quarter (or such shorter period, as the case may be) the daily average of the outstanding Revolving Loans and Letters of Credit is equal to or greater than 50% of the Total Revolving Loan Commitment, 0.25% per annum. and (ii) from and following the Amendment No. 1 Effective Date, for each of (A) the period from the Amendment No. 1 Effective Date until the last day of the first full calendar quarter after the Amendment No. 1 Effective Date and (B) each calendar quarter thereafter, 0.50% per annum.        “Applicable Margin” initially shall mean (a) prior to the Amendment No. 1 Effective Date, a percentage per annum determined in accordance with this Agreement prior to giving effect to Amendment No. 1 and (b) from and following the Amendment No. 1 Effective Date, a percentage per annum equal to (i) in the case of Revolving Loans maintained as (A) Base Rate Loans, 1.00%, and (B) LIBOR Loans, 2.00%, and (ii) in the case of Swingline Loans, 1.00%.  From and after each day of delivery of any certificate delivered in accordance with the first sentence of the following paragraph following the Amendment No. 1 Effective Date indicating an entitlement to a different margin for any Loans than that described in the immediately preceding sentence (each, a “Start Date”) to and including the applicable End Date described below, the Applicable Margins for such Loans (hereinafter, the “Adjustable Applicable Margins”) shall be those set forth below opposite the Historical Excess Availability indicated to have been achieved in any certificate delivered in accordance with the following sentence:                                                                    Revolving Loans and                                            Revolving Loans          Swingline Loans                                          Maintained as LIBOR     Maintained as Base Rate Level     Historical Excess Availability       Loans                    Loans    I     Greater than 50% of Availability     1.502.00%                 0.501.00%    II    Equal to or less than 50% of         2.002.50%                 1.001.50%         Availability  The Historical Excess Availability used in a determination of Adjustable Applicable Margins shall be determined based on the delivery of a certificate of an Authorized Officer of the Company (each, a “Quarterly Pricing Certificate”) to the Administrative Agent (with a copy to be sent by the Administrative Agent to each Lender), within 5 days after the last day of any Fiscal Quarter, which Quarterly Pricing Certificate shall set forth the calculation of the Historical Excess Availability as at the last day of the Fiscal Quarter ended immediately prior to the relevant Start Date.  The Adjustable Applicable Margins so determined shall apply, except as set forth in the succeeding sentence, from the relevant Start Date to the                                             3  #93457508v14

 

earlier of (x) the date on which the next Quarterly Pricing Certificate is delivered to the Administrative Agent and (y) the date which is 5 days following the last day of the Fiscal Quarter in which the previous Start Date occurred (such earlier date, the “End Date”), at which time, if no Quarterly Pricing Certificate has been delivered to the Administrative Agent indicating an entitlement to new Adjustable Applicable Margins (and thus commencing a new Start Date), the Adjustable Applicable Margins shall be those that correspond to a Historical Excess Availability at Level II (such Adjustable Applicable Margins as so determined, the “Highest Adjustable Applicable Margins”).  Notwithstanding anything to the contrary contained above in this definitionherein, (i) at all times priorfrom and after the Amendment No. 1 Effective Date to the date of delivery of the Quarterly Pricing Certificate for the Fiscal Quarter ending December 31, 20162020, the Adjustable Applicable Margins shall be maintained at Level III above and, (ii) from and after the most recent Incremental Commitment Date for any Incremental Commitment Agreement pursuant to which the Applicable Margins and Adjustable Applicable Margins have been increased above the Applicable Margins and the Adjustable Applicable Margins in effect immediately prior to such Incremental Commitment Date, each of the Applicable Margins and the Adjustable Applicable Margins shall be increased to those respective percentages per annum set forth in the applicable Incremental Commitment Agreement and (iii) from and after the Extension, with respect to any Extended Loans, the Applicable Margins and Adjustable Applicable Margins specified for such Extended Loans shall be those specified in the applicable definitive documentation thereof.         “Asset Sale” shall mean any sale, transfer or other disposition by any Credit Party or any of its Subsidiaries to any Person (including by way of redemption by such Person), other than to any Credit Party or a Wholly Owned Subsidiary of any Credit Party, of any asset (including any capital stock or other securities of, or Equity Interests in, another Person), but excluding sales of assets pursuant to Sections 10.02(b), (c), (d), (f), (g), (h), (i), (j), (k), (m) and (o).         “Asset Sale Proceeds Account” shall mean one or more deposit accounts or securities accounts holding solely the proceeds of any sale or other disposition of any Notes Priority Collateral (and only such Collateral) that are required to be held in such account or accounts pursuant to the terms of any Qualified Secured Debt Document to the extent that (x) any such Indebtedness has a Lien on the Notes Priority Collateral that is senior to the Lien of the Obligations on such Notes Priority Collateral and (y) any such deposit accounts or securities accounts are subject to the terms of the Intercreditor Agreement and are being held for the benefit of the Secured Parties as well.        “Assignment and Assumption Agreement” shall mean an Assignment and Assumption Agreement substantially in the form of Exhibit I (appropriately completed).         “Authorized Officer” shall mean, with respect to (i) delivering Notices of Borrowing, Notices of Conversion/Continuation, Letter of Credit Requests and similar notices, any person or persons that has or have been authorized by the board of directors (or similar governing body) of the Company or the respective other Borrower (and any person or persons authorized by any such person or persons) to deliver such notices pursuant to this Agreement and that has or have appropriate signature cards on file with the Administrative Agent, the Swingline Lender or the respective Issuing Lender, (ii) delivering financial information and officer’s certificates pursuant to this Agreement, the chief financial officer, the treasurer or the principal accounting officer of the Company, and (iii) any other matter in connection with this Agreement or any other Credit Document, any officer (or a person or persons so designated by any officer) of the Company or the respective other Borrower.        “Availability” at any time shall mean the lesser of (i) the Borrowing Base at such time and (ii) the Total Revolving Loan Commitment at such time.                                              4  #93457508v14

 

      “Back Stop Arrangements” shall mean, collectively, Letter of Credit Back Stop Arrangements and Swingline Back Stop Arrangements.         “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEAAffected Financial Institution.        “Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).        “Bank Product Reserve” shall mean a reserve established by the Collateral Agent from time to time in respect of the Credit Parties’ liabilities (or potential liabilities) as part of their cash management system such as, but not limited to, reserves for returned items, customary charges for maintaining Deposit Accounts and similar items.        “Bankruptcy Code” shall have the meaning provided in Section 11.05.         “Base Rate” shall mean, at any time, the greatest of (a) the Prime Lending Rate as established from time to time by UBS AG at its principal office in Stamford, Connecticut, (b) the Federal Funds Rate plus 0.50%, and (c) the one month LIBO Rate (which rate shall be determined on a daily basis) plus 1.00% (it being understood that the LIBO Rate for this purpose shall not be less than zero0.50%). For purposes of this definition, the LIBO Rate shall be determined using the LIBO Rate as otherwise determined by the Administrative Agent in accordance with the definition of LIBO Rate, except that (x) if a given day is a Business Day, such determination shall be made on such day (rather than two Business Days prior to the commencement of an Interest Period) or (y) if a given day is not a Business Day, the LIBO Rate for such day shall be the rate determined by the Administrative Agent pursuant to preceding clause (x) for the most recent Business Day preceding such day.  Any change in the Base Rate due to a change in the Prime Lending Rate, the Federal Funds Rate or such LIBO Rate shall be effective as of the opening of business on the day of such change in the Prime Lending Rate, the Federal Funds Rate or such LIBO Rate, respectively.        “Base Rate Loan” shall mean (i) each Swingline Loan and (ii) each Revolving Loan designated or deemed designated as such by the relevant Borrower at the time of the incurrence thereof or conversion thereto.         “Benchmark Replacement” shall have the meaning provided in Section 2.17(e).        “Benchmark Replacement Adjustment” shall have the meaning provided in Section 2.17(e).        “Benchmark Replacement Conforming Changes” shall have the meaning provided in Section 2.17(e).        “Benchmark Replacement Date” shall have the meaning provided in Section 2.17(e).        “Benchmark Transition Event” shall have the meaning provided in Section 2.17(e).                                             5  #93457508v14

 

      “Benchmark Transition Start Date” shall have the meaning provided in Section 2.17(e).        “Benchmark Unavailability Period” shall have the meaning provided in Section 2.17(e).        “Beneficial Ownership Certification” shall mean a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.        “Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230.         “BHC Act Affiliate” shall have the meaning provided in Section 13.22(b).        “Board” shall mean the Board of Governors of the Federal Reserve System of the United States.         “Borrower” and “Borrowers” shall mean the Company, East Dubuque, CVR Nitrogen, CVR Nitrogen Holdings and Coffeyville Resources, in each case together with each other entity that becomes a Borrower pursuant to Section 10.12(a).         “Borrowing” shall mean the borrowing of one Type of Revolving Loan from all the Lenders, or from the Swingline Lender in the case of Swingline Loans, on a given date (or resulting from a conversion or conversions on such date) having in the case of LIBOR Loans the same Interest Period; provided, that, Base Rate Loans incurred pursuant to Section 2.10(b) shall be considered part of the related Borrowing of LIBOR Loans.        “Borrowing Base” shall mean, as of any date, the amount equal to the sum of (without duplication) (i) the aggregate amount of Unrestricted cash and Unrestricted Qualified Cash Equivalents of the Borrowers, in an aggregate amount not to exceed $25,000,000, held in Deposit Accounts or Securities Accounts in each case subject to a Cash Management Control Agreement and in which the Collateral Agent has a First Priority Lien (it being understood and agreed that the requirements that such Deposit Accounts or Securities Accounts be subject to a Cash Management Control Agreement and be subject to a First Priority Lien in favor of the Collateral Agent shall not apply for the period commencing on the Effective Date and ending five Business Days thereafter), plus (ii) 85.0% of the amount of Eligible Accounts, plus (iiiii) the lesser of (A) 65.075.0 % of the Value of Eligible Inventory (other than Eligible Spare Parts Inventory and Eligible Precious Metals Inventory) and (B) 85% of the Net Orderly Liquidation Value of Eligible Inventory (other than Eligible Spare Parts Inventory and Eligible Precious Metals Inventory) plus (iviii) the lesser of (x) $10,000,000 and (y) the lesser of (A) 65.0% of the Value of Eligible Spare Parts Inventory and Eligible Precious Metals Inventory and (B) 85.0% of the Net Orderly Liquidation Value of Eligible Spare Parts Inventory and Eligible Precious Metals Inventory, minus (viv) the aggregate amount of the Reserves then established by the Collateral Agent.  In the event that any Borrower ceases to be a wholly-owned Subsidiary of the Company, the assets of such Borrower shall be disregarded for purposes of this definition.        For any purpose under any Credit Documents requiring the determination of the Borrowing Base, such Borrowing Base shall be the Borrowing Base as set forth in the most recently delivered Borrowing Base Certificate delivered to the Administrative Agent in accordance with Section 9.01(j); provided that the Borrowing Base determined pursuant to clause (i) above may be adjusted on a daily basis to reflect the aggregate amount under clause (i) above as of the open of business on each Business Day as verified by the Administrative Agent. The Collateral Agent shall have the right (but not the obligation) to review such computations and if, in its Permitted Discretion, such computations have not been calculated in accordance with the terms of this Agreement, the Collateral Agent shall have the right to correct any such errors in such manner as it may determine in its Permitted Discretion.                                             6  #93457508v14

 

      “Borrowing Base Certificate” shall have the meaning provided in Section 9.01(j).        “Business” shall mean any corporation, limited liability company, partnership or other business entity (or the adjectival form thereof, where appropriate) or the equivalent of the foregoing in any foreign jurisdiction.        “Business Day” shall mean (i) for all purposes other than as covered by clause (ii) below, any day except Saturday, Sunday and any day which shall be in New York, New York, a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close and (ii) with respect to all notices and determinations in connection with, and payments of principal and interest on, LIBOR Loans, any day which is a Business Day described in clause (i) above and which is also a day for trading by and between banks in U.S. dollar deposits in the London interbank market.        “Calculation Period” shall mean, with respect to any Permitted Acquisition, any Significant Asset Sale or any other event expressly required to be calculated on a Pro Forma Basis pursuant to the terms of this Agreement, the Test Period most recently ended prior to the date of such Permitted Acquisition, Significant Asset Sale or other event for which financial statements have been delivered to the Lenders pursuant to this Agreement.        “Capital Expenditures” shall mean, with respect to any Person, all expenditures by such Person which should be capitalized in accordance with GAAP and, without duplication, the amount of all CapitalizedFinance Lease Obligations incurred by such Person.        “Capitalized Lease Obligations” shall mean, with respect to any Person, all rental obligations of such Person which, under GAAP, are or will be required to be capitalized on the books of such Person, in each case taken at the amount thereof accounted for as indebtedness in accordance with such principles.         “Cash Equivalents” shall mean, as to any Person, (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided, that, the full faith and credit of the United States is pledged in support thereof) having maturities of not more than two years from the date of acquisition, (ii) time deposits, demand deposits, money market deposits, certificates of deposit and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year from the date of acquisition and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $250,000,000 (or $100,000,000 in the case of a non-U.S. bank), (iii) repurchase obligations for underlying securities of the types set forth in clauses (i), (ii) and (vi) of this definition entered into with any financial institution meeting the qualifications specified in clause (ii) above, (iv) commercial paper rated at least P-1 by Moody’s or at least A-1 by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another rating agency) and in each case maturing within two years after the date of acquisition, (v) marketable short- term money market and similar securities having a rating of at least P-2 or A-2 from either Moody’s or S&P, respectively, or liquidity funds or other similar money market mutual funds, with a rating of at least Aaa by Moody’s or AAAm by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another rating agency), (vi) securities issued by any state, commonwealth or territory of the United States or any political subdivision or taxing authority of any such state, commonwealth or territory or any public instrumentality thereof, maturing within two years from the date of acquisition thereof and having an investment grade rating from Moody’s or S&P, (vii) money market funds (or other investment funds) at least 95% of the assets of which constitute Cash Equivalents of the kinds set forth in clauses (ii) through (vi) of this definition, (viii) Euros or any national currency of any participating member state of the EMU, (ix) local currency held by any Borrower or any Subsidiary thereof from time to time in the ordinary course of business, (x) securities issued or directly                                             7  #93457508v14

 

and fully guaranteed by the sovereign nation or any agency thereof (provided, that, the full faith and credit of such sovereign nation is pledged in support thereof) in which any Borrower or any Subsidiary thereof is organized or is conducting business having maturities of not more than one year from the date of acquisition and (xi) investments of the type and maturity set forth in clauses (ii) through (vi) above of foreign obligors, which investments or obligors satisfy the requirements and have ratings set forth in such clauses.         “Cash Management Control Agreement” shall mean a “control agreement” in form and substance reasonably acceptable to the Collateral Agent.        “Cash Management Services” shall mean treasury, depositary or cash management services (including overnight overdraft services), automated clearinghouse transfers of funds and purchasing, credit and debit card services.         “CFC” shall mean any direct or indirect Subsidiary of any Credit Party which is a “controlled foreign corporation” within the meaning of Section 957 of the Code.        “Change in Tax Law” shall mean the enactment, promulgation, execution or ratification of, or any change in or amendment to, any law (including the Code), treaty, regulation or rule (or in the official application or interpretation of any law, treaty, regulation or rule, including a holding, judgment or order by a court of competent jurisdiction) relating to taxation.         “Change of Control” shall mean (i) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) (other than any Qualifying Owner) shall have acquired (a) beneficial ownership of 50% or more on a fully diluted basis of the voting Equity Interests of the Company in the aggregate, or (b) the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of the Company; or (ii) a “change of control” (or similarly defined event) shall occur under the Secured Notes Indenture or the definitive documentation governing any Indebtedness in an aggregate principal amount in excess of $35,000,000.         “Chattel Paper” shall mean “chattel paper” (as such term is defined in Article 9 of the UCC).        “Chief Executive Office” shall mean, with respect to any Person, the location from which such Person manages the main part of its business operations or other affairs.         “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.        “Coffeyville Facility” shall mean the Company’s nitrogen fertilizer plant located at 701 East Martin Street, Coffeyville, Kansas.        “Coffeyville Resources” shall have the meaning set forth in the introductory paragraph to this Agreement.        “Coke SupplyCoffeyville Master Service Agreement” shall mean the Coke SupplyCoffeyville Master Service Agreement, dated as of October 25, 2007February 19, 2020 but effective as of January 1, 2020, by and between Coffeyville Resources and Coffeyville Resources Refining & Marketing, LLC and Coffeyville Resources Nitrogen Fertilizers, LLC.         “Coffeyville Resources” shall have the meaning set forth in the introductory paragraph to this Agreement.                                             8  #93457508v14

 

       “Collateral” shall mean all property (whether real or personal) with respect to which any security interests have been granted (or purported to be granted) pursuant to any Security Document, including all Security Agreement Collateral, all Mortgaged Properties and all cash and Cash Equivalents delivered as collateral pursuant to Section 5.02 or 11.         “Collateral Agent” shall mean UBS AG, Stamford Branch in its capacity as collateral agent for the Secured Parties hereunder and pursuant to the Security Documents, and shall include any successor to the Collateral Agent as provided in Section 12.09.         “Collateral Questionnaire” shall mean a certificate of an Authorized Officer of the Company in form reasonably satisfactory to the Collateral Agent that provides information with respect to the personal or mixed property of each Credit Party.         “Collection Account” shall mean each account established at a Collection Bank subject to a Cash Management Control Agreement.        “Collection Banks” shall have the meaning provided in Section 5.03(b).        “Commingled Inventory” shall mean Inventory of any Borrower that is commingled (whether pursuant to a consignment, a toll manufacturing agreement or otherwise) with Inventory of another Person (other than another Borrower) at a location owned or leased by a Borrower or a third-party vendor to the extent that such Inventory of such Borrower is not readily identifiable.         “Commitment Commission” shall have the meaning provided in Section 4.01(a).        “Commodity Agreement” shall mean any commodity exchange, swap, forward, cap, floor collar or other similar agreement or arrangement each of which is for the purpose of hedging the exposure of the Company and its Subsidiaries to fluctuations in the price of commodities used in their operations and not for speculative purposes.         “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.         “Company” shall have the meaning set forth in the introductory paragraph to this Agreement.        “Compliance Period” shall mean any period (a) commencing on the date on which Excess Availability is less than the greater of (i) 10.0% of Availability and (ii) $5,000,000 and (b) ending on the first date thereafter on which Excess Availability has been equal to or greater than the greater of (i) 10.0% of Availability and (ii) $5,000,000, in either case for 30 consecutive days.         “Concentration Account” shall have the meaning provided in Section 5.03(c).         “Connection Tax” mean any tax imposed as a result of a present or former connection between a Lender or Issuing Lender and the jurisdiction imposing such tax (other than connections arising from such Lender or Issuing Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).        “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period (without giving effect to (x) any extraordinary gains or losses, (y) any non-cash income, and (z) any gains                                             9  #93457508v14

 

or losses from sales of assets other than inventory sold in the ordinary course of business) adjusted by (A) adding thereto (in each case to the extent deducted in determining Consolidated Net Income for such period), without duplication, the amount of (i) total interest expense (inclusive of that portion attributable to CapitalizedFinance Lease Obligations, net costs under Interest Rate Protection Agreements and amortization of deferred financing fees and other original issue discount and banking fees, charges and commissions (e.g., letter of credit fees and commitment fees)) of the Company and its Subsidiaries determined on a consolidated basis for such period, (ii) provision for taxes based on income and foreign withholding taxes for the Company and its Subsidiaries determined on a consolidated basis for such period, (iii) all depreciation and amortization expense of the Company and its Subsidiaries determined on a consolidated basis for such period, (iv) the amount of all fees and expenses incurred by the Company and its Subsidiaries in connection with the Transaction during such period, (v) the amount of all other non-cash charges or losses of the Company and its Subsidiaries determined on a consolidated basis for such period, (vi) any expenses or charges incurred by the Company and its Subsidiaries in connection with any acquisition (including a Permitted Acquisition) or disposition of assets outside the ordinary course of business, any issuance of Indebtedness or equity securities of the Company  and its Subsidiaries or any refinancing or recapitalization transaction for such period (whether or not any such transaction is actually consummated), (vii) any unusual or non-recurring charges incurred by the Company and its Subsidiaries during such period in an aggregate amount not to exceed 10% of the amount of Consolidated EBITDA prior to the adjustment provided in this clause (vii) as determined in such period, (viii) the amount of any integration costs or other business optimization expenses or costs incurred by the Company and its Subsidiaries for such period, including any one-time costs incurred in connection with acquisitions and costs related to the closure and/or consolidation of facilities, in an aggregate amount not to exceed 20% of the amount of Consolidated EBITDA prior to the adjustment provided for in this clause (viii) as determined in such period, (ix) any net after-tax loss from disposed or discontinued operations and any net after-tax losses on disposal of disposed or discontinued operations of the Company and its Subsidiaries for such period, (x) Major Scheduled Turnaround Expenses for such fiscal period, (xi) any losses realized by the Company  and its Subsidiaries in connection with any extinguishment of Indebtedness for such period, and (xii) any losses incurred by the Company and its Subsidiaries attributable to minority equity interests in the Company or any of its Subsidiaries for such period, and (B) subtracting therefrom (to the extent not otherwise deducted in determining Consolidated Net Income for such period), without duplication, the amount of (i) all cash payments or cash charges made (or incurred) by the Company or any of its Subsidiaries for such period on account of any non-cash charges or losses added back to Consolidated EBITDA pursuant to preceding sub clause (A)(v) in a previous period, (ii) any unusual or non-recurring gains by the Company and its Subsidiaries during such period, (iii) any net after-tax gain from disposed or discontinued operations and any net after-tax gain on disposal of disposed or discontinued operations of the Company and its Subsidiaries for such period, (iv) the aggregate amount of all Dividends paid pursuant to Section 10.03(c) for such period, (v) any gains realized by the Company and its Subsidiaries in connection with any extinguishment of Indebtedness for such period, and (vi) any income increasing Consolidated Net Income for such period attributable to minority equity interests in the Company or any of its Subsidiaries.  For the avoidance of doubt, it is understood and agreed that, to the extent any amounts are excluded from Consolidated Net Income by virtue of the proviso to the definition thereof contained herein, any add backs to Consolidated Net Income in determining Consolidated EBITDA as provided above shall be limited (or denied) in a fashion consistent with the proviso to the definition of Consolidated Net Income contained herein.         “Consolidated Indebtedness” shall mean, as at any date of determination, the remainder of (A) the sum of (without duplication) (i) the aggregate stated balance sheet amount of all Indebtedness (including Indebtedness as would be required to be treated as CapitalizedFinance Lease Obligations, but excluding Indebtedness under clauses (iv), (vi) (but only in respect of undrawn amounts) and (x) of the definition                                            10  #93457508v14

 

thereof) of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP, (ii) the aggregate amount of all unpaid drawings under all letters of credit issued for the account of the Company or any of its Subsidiaries and (iii) the aggregate amount of all guaranties by the Company or any of its Subsidiaries of Indebtedness of another Person of the type that would otherwise be included in the calculation of Consolidated Indebtedness minus (B) the aggregate amount of all Unrestricted cash and Cash Equivalents of the Credit Parties, not to exceed $25,000,000, that is subject to a Cash Management Control Agreement and in which the Collateral Agent has a First Priority Lien.         “Consolidated Interest Expense” shall mean, for any period, the total interest expense (including that portion attributable to CapitalizedFinance Lease Obligations in accordance with GAAP and capitalized interest) of the Company and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of the Company and its Subsidiaries for such period, including all commissions, discounts and other fees and charges owed with respect to letters of credit and net costs under Interest Rate Protection Agreements.         “Consolidated Net Income” shall mean, for any period, the net income (or loss) of the Company and its Subsidiaries determined on a consolidated basis for such period (taken as a single accounting period) in accordance with GAAP (after any deduction for minority interests); provided, that, the following items shall be excluded (except to the extent provided below) in computing Consolidated Net Income (without duplication): (i) the net income (or loss) of any Subsidiary of the Company in which a Person or Persons other than the Company and its Subsidiaries has an Equity Interest or Equity Interests to the extent of such Equity Interests held by Persons other than the Company and its Subsidiaries in such Subsidiary, (ii) the net income (or loss) of (A) any Unrestricted Subsidiary and (B) any other Person (other than a Subsidiary of the Company) in which a Person or Persons other than the Company and its Subsidiaries has an Equity Interest or Equity Interests to the extent of such Equity Interests held by Persons other than the Company and its Subsidiaries in such Person; provided, that, (in the case of each of preceding clauses (A) and (B)) the Consolidated Net Income of the Company and its Subsidiaries shall be increased to the extent of the amount of cash dividends or cash distributions actually paid to the Company or any of its Subsidiaries by such Unrestricted Subsidiary or other Person during such period, (iii) except for determinations expressly required to be made on a Pro Forma Basis, the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or all or substantially all of the property or assets of such Person are acquired by a Subsidiary and (iv) the net income of any Subsidiary of the Company that is not a Credit Party to the extent that the declaration or payment of cash dividends or similar cash distributions by such Subsidiary of such net income is not at the time permitted by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary.         “Consolidated Secured Indebtedness” shall mean, as at any date of determination, the remainder of (without duplication) (A) Consolidated Indebtedness (without giving effect to clause (B) of the definition thereof) as of such date that is secured by Liens on property or assets of the Company and its Subsidiaries minus (B) the aggregate amount of all Unrestricted cash and Cash Equivalents of the Credit Parties, not to exceed $25,000,000, that is subject to a Cash Management Control Agreement and in which the Collateral Agent has a First Priority Lien.         “Consolidated Total Assets” shall mean, as of any date, the amount which, in accordance with GAAP, would be set forth under the caption “Total Assets” (or any like caption) on a consolidated balance sheet of the Company and its Subsidiaries (excluding the assets of Unrestricted Subsidiaries, but including the residual equity value of the Equity Interests of the Unrestricted Subsidiaries and as at the end of the most recently ended Fiscal Quarter for which internal financial statements are available (giving pro forma effect to any acquisitions or dispositions of assets or properties that have been made by the                                            11  #93457508v14

 

Company or any of its Subsidiaries subsequent to the date of such balance sheet, including through mergers or consolidations).         “Contractual Obligation” shall mean, as applied to any Person, any provision of any Equity Interests issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject.        “CFC” shall mean any direct or indirect Subsidiary of any Credit Party which is a “controlled foreign corporation” within the meaning of Section 957 of the Code.        “Covered Entity” shall have the meaning provided in Section 13.22(b).        “Covered Party” shall have the meaning provided in Section 13.22(a).        “Credit Account” shall have the meaning provided in Section 5.03(e).        “Credit Documents” shall mean this Agreement, the Security Agreement, the Intercreditor Agreement, Amendment No. 1 and, after the execution and delivery thereof pursuant to the terms of this Agreement, each Note, each Joinder Agreement, each Incremental Commitment Agreement, each Mortgage and each other Security Document.        “Credit Event” shall mean the making of any Loan or the issuance, amendment, extension or renewal of any Letter of Credit (other than any amendment, extension or renewal that does not increase the maximum Stated Amount of such Letter of Credit).        “Credit Party” shall mean each Borrower and each Guarantor.         “Cross-Easement Agreement” shall mean the Amended and Restated Cross-Easement Agreement, dated as of April 13, 2011, among Coffeyville Resources Refining & Marketing, LLC and Coffeyville Resources Nitrogen Fertilizers, LLC.        “CVR Finance” shall have the meaning set forth in the introductory paragraph to this Agreement.         “CVR Nitrogen” shall have the meaning set forth in the introductory paragraph to this Agreement.        “CVR Nitrogen GP” shall have the meaning set forth in the introductory paragraph to this Agreement.         “CVR Nitrogen Holdings” shall have the meaning set forth in the introductory paragraph to this Agreement.        “Default” shall mean any event, act or condition set forth in Section 11 which with notice or lapse of time, or both, would constitute an Event of Default.         “Default Right” shall have the meaning provided in Section 13.22(b).        “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect.                                             12  #93457508v14

 

      “Deposit Account” shall mean a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization.         “Designated Non-Cash Consideration” shall mean the Fair Market Value of non-cash consideration received by the Company or a Subsidiary in connection with a conveyance, sale, lease or other disposition that is so designated as Designated Non-Cash Consideration pursuant to a certificate of an Authorized Officer, setting forth the basis of such valuation, less the amount of Cash Equivalents received in connection with a subsequent sale, redemption or repurchase of or collection or payment on such Designated Non-Cash Consideration.         “Disbursement Account” shall mean each checking and/or disbursement account maintained by each Borrower and each Subsidiary Guarantor for their respective general corporate (or equivalent) purposes, including for the purpose of paying their trade payables and other operating expenses.         “Disqualified Equity Interest” means, with respect to any Person, any Equity Interest in such Person that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable, either mandatorily or at the option of the holder thereof) or upon the happening of any event or condition:               (i)  matures or is mandatorily redeemable (other than solely for Equity Interests in such Person that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests), whether pursuant to a sinking fund obligation or otherwise;               (ii)  is convertible or exchangeable at the option of the holder thereof for Indebtedness or Equity Interests (other than solely for Equity Interests in such Person that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests); or               (iii)  is redeemable (other than solely for Equity Interests in such Person that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests) or is required to be repurchased by such Person or any of its Affiliates, in whole or in part, at the option of the holder thereof;  in each case, on or prior to the date that is six (6) months after the Initial Revolving Commitment Termination Date; provided, that, an Equity Interest that would not constitute a Disqualified Equity Interest but for terms thereof giving holders thereof the right to require such Person to redeem or purchase such Equity Interest upon the occurrence of an “asset sale”, “change of control” or similar event shall not constitute a Disqualified Equity Interest if any such requirement becomes operative only after repayment in full in cash of all of the Obligations, the cancellation or expiration of all Letters of Credit and the termination of the Commitments.        “Dividend” shall mean, with respect to any Person, that such Person has paid a dividend, distribution or returned any equity capital to its stockholders, partners or members or authorized or made any other distribution, payment or delivery of property (other than common Equity Interests of such Person) or cash to its stockholders, partners or members in their capacity as such, or redeemed, retired, purchased or otherwise acquired, directly or indirectly, for a consideration any shares of any class of its capital stock or any other Equity Interests of such Person outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its capital stock or other Equity Interests of such Person), or shall have permitted any of its Subsidiaries to purchase or otherwise acquire for a consideration any shares of any class of the capital stock or any other Equity Interests of such Person                                             13  #93457508v14

 

outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its capital stock or other Equity Interests).         “Dollars” and the sign “$” shall each mean freely transferable lawful money of the United States.        “Domestic Subsidiary” of any Person shall mean any Subsidiary of such Person incorporated or organized in the United States or any State thereof or the District of Columbia.         “Dominion Period” shall mean any period commencing on the date (a) on which Excess Availability is less than the greater of (A) 12.5% of Availability and (B) $6,250,000 or (b) on which there is an occurrence of a Specified Default; provided, that, (1) to the extent that the Dominion Period has occurred due to clause (a) of this definition, if Excess Availability shall be equal to or greater than (x) 12.5% of Availability and (y) $6,250,000, for at least 30 consecutive days (provided that such 30-day requirement shall not apply if any Credit Party receives proceeds from any offering of Indebtedness or equity permittednot prohibited hereunder and such proceeds are in an amount sufficient to cause compliance with clause (a) of this definition), the Dominion Period shall no longer be deemed to exist or be continuing until such time as Excess Availability may again be less than such amount and (ii) to the extent that the Dominion Period has occurred due to clause (b) of this definition, if such Specified Default is no longer continuing.         “Drawing” shall have the meaning provided in Section 3.05(b).        “Early Opt-in Election” shall have the meaning provided in Section 2.17(e).        “East Dubuque” shall have the meaning set forth in the introductory paragraph to this Agreement.        “East Dubuque Facility”  shall mean CVR Nitrogen’s nitrogen fertilizer plant located at 16675 U.S. Route 20 West, East Dubuque, Illinois.          “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;         “EEA Member Country” means any of the member states of the European Union (including the United Kingdom of Great Britain and Northern Ireland), Iceland, Liechtenstein, and Norway.        “EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.         “Effective Date” shall have the meaning provided in Section 13.10.         “Eligible Accounts” shall mean those Accounts created by one of the Borrowers in the ordinary course of their business, that arise out of their sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Credit Documents and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, however, that such criteria may be revised from time to time by the Collateral Agent in its Permitted Discretion to address the results of any audit or other collateral examination performed by or on                                            14  #93457508v14

 

behalf the Administrative Agent or the Collateral Agent from time to time after the Effective Date, and other due diligence or information with respect to the Borrowers’ business or assets of which the Collateral Agent became aware after the Effective Date.  The Collateral Agent shall have the right to establish, modify or eliminate Reserves against Eligible Accounts from time to time in its Permitted Discretion.  In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits, unapplied cash, bonding subrogation rights to the extent not cash collateralized, any and all returns, accrued rebates, discounts (which may, at the Collateral Agent’s option, be calculated on shortest terms), credits, allowances or sales or excise taxes of any nature at any time issued, owing, claimed by Account Debtors, granted, outstanding or payable in connection with such Accounts at such time.  Eligible Accounts shall not include the following:         (a)   Accounts which either are 60 days or more past due or are unpaid more than 90 days after the original invoice date;         (b)   Accounts owed by an Account Debtor where 50% or more of the total amount of all Accounts owed by that Account Debtor are deemed ineligible hereunder;         (c)   Accounts with respect to which the Account Debtor is an Affiliate of a Borrower;         (d)   Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by an Account Debtor may be conditional;         (e)   Accounts that are not payable in Dollars;         (f)   Accounts with respect to which the Account Debtor is a non-Governmental Authority unless: (i) the Account Debtor either (A) maintains its Chief Executive Office in the United States, or (B) is organized under the laws of the United States, or any state or subdivision thereof; or (ii) (A) the Account is supported by an irrevocable letter of credit satisfactory to the Collateral Agent, in its Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Collateral Agent, in its Permitted Discretion;         (g)   Accounts with respect to which the Account Debtor is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof or of any department, agency, public corporation, or other instrumentality thereof, unless (i) the Account is supported by an irrevocable letter of credit satisfactory to the Collateral Agent, in its Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (ii) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to the Collateral Agent, in its Permitted Discretion;         (h)   Accounts with respect to which the Account Debtor is the federal government of the United States or any department, agency or instrumentality of the United States (exclusive, however, of Accounts with respect to which a Borrower has complied, to the reasonable satisfaction of the Administrative Agent, with the Assignment of Claims Act, 31 USC § 3727);         (i)   Accounts with respect to which the Account Debtor is a creditor of a Borrower or any Subsidiary or Unrestricted Subsidiary of a Borrower and such Account Debtor has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent (including                                            15  #93457508v14

 

with respect to rebates) of such claim, right of setoff, or dispute; provided, that, such Accounts shall be ineligible only to the extent of such right of setoff, dispute or claim;         (j)   Accounts with respect to an Account Debtor (and its Affiliates) whose total obligations owing to the Borrowers or any Subsidiary or Unrestricted Subsidiary of the Borrowers exceed 15% (or, in the case of those Account Debtors (and their respective Affiliates) listed on Schedule 1.01(b), exceed the respective percentages set forth opposite the names of such Account Debtors on such Schedule 1.01(b)) (such percentages set forth in Schedule 1.01(b) as applied to a particular Account Debtor (and its Affiliates) being subject to reduction by the Collateral Agent, in its Permitted Discretion, if the creditworthiness of such Account Debtor (and its Affiliates) deteriorates) of all Accounts owed to the Borrowers and their Subsidiaries and Unrestricted Subsidiaries, to the extent of the obligations owing by such Account Debtor (and its Affiliates) in excess of such percentages; provided, however, that (i) in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing percentages shall be determined by the Collateral Agent based on all of the total obligations owing by Account Debtors (and their respective Affiliates) to any Borrower or any Subsidiary or Unrestricted Subsidiary of any Borrower prior to giving effect to any eliminations based upon the foregoing concentration limit; and (ii) at the request of the Company, and with the consent of the Collateral Agent (acting in their Permitted Discretion) Account Debtors (and corresponding concentration limits) may be added to, and/or removed from, Schedule 1.01(b) from time to time;        (k)    Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, has gone out of business, or as to which any Borrower has received notice of an imminent insolvency proceeding or a material impairment of the financial condition of such Account Debtor unless (x) such Account is supported by a letter of credit satisfactory to the Collateral Agent, in its Permitted Discretion (as to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent or (y) such Account Debtor has received debtor-in-possession financing sufficient as determined by the Collateral Agent in its Permitted Discretion to finance its ongoing business activities;        (l)    Accounts that are not subject to a valid and perfected First Priority Lien in favor of the Collateral Agent pursuant to the relevant Security Document as provided in the Intercreditor Agreement;        (m)    Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor;        (n)    Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by a Borrower of the subject contract for goods or services (other than customary maintenance contracts);        (o)    Accounts with respect to which any return, rejection or repossession of any of the merchandise giving rise to such Account has occurred, but only to the extent of the value of the goods returned, rejected or repossessed;         (p)   Accounts that are evidenced by Chattel Paper;         (q)   Any Account that has not been invoiced, has not been billed and has not been recognized as received by the applicable Account Debtor;                                             16  #93457508v14

 

      (r)    Any Account with respect to which a partial payment of such Account has been made by the respective Account Debtor; provided, that, to the extent such Account consists of multiple separate line-items, only the line items that have been partially paid shall be excluded;        (s)    Accounts that are not payable to a Borrower;        (t)    Accounts to the extent representing service charges or late fees; provided, that, such Accounts shall be ineligible only to the extent of such service charges or late fees;         (u)   Accounts to the extent representing unapplied cash balances; or         (v)   Accounts with respect to which the goods or services giving rise to such Account are sold or performed on terms of “cash on delivery” or “cash in advance”.         “Eligible Inventory” shall mean the Inventory owned by one of the Borrowers and reflected in the most recent Borrowing Base Certificate delivered by the Company to the Administrative Agent and not excluded as ineligible inventory by virtue of one or more of the exclusionary criteria set forth below; provided, however, that such criteria may be revised from time to time by the Collateral Agent in its Permitted Discretion to address the results of any field examination performed by or on behalf of the Administrative Agent or the Collateral Agent from time to time after the Effective Date, and other due diligence or information with respect to the Borrowers’ business or assets of which the Collateral Agent became aware after the Effective Date.  The Collateral Agent shall have the right to establish, modify or eliminate Reserves against Eligible Inventory from time to time in its Permitted Discretion.  Eligible Inventory shall not include any Inventory of a Borrower that:        (a)    is not owned by a Borrower free and clear of all Liens and rights of any other Person (including the rights of a purchaser that has made progress payments and the rights of a surety that has issued a bond to assure a Borrower’s performance with respect to that Inventory), except (i) the First Priority Lien in favor of the Collateral Agent on behalf of the Secured Parties, (ii) the junior Permitted Liens under Section 10.01(d) in favor of (A) the Secured Notes Trustee on behalf of the Secured Notes Secured Parties, (B) the Agent on behalf of the Secured Notes Secured Parties, (C) the Refinancing Notes Agent on behalf of the Refinancing Notes Secured Parties, and (D) any Qualified Secured Debt Agent on behalf of the respective Qualified Secured Debt Secured Parties, (iii) Permitted Liens in favor of landlords, bailees and freight carriers and forwarders to the extent permitted in the provisions of this Agreement (subject to Reserves established by the Collateral Agent in accordance with the provisions of this Agreement); and (iv) other Permitted Liens that do not have priority over the Lien of the Collateral Agent and are junior to the Lien of the Collateral Agent.        (b)     (i) is not located on premises owned, leased or rented by a Borrower and set forth on Schedule 1.01(c) (or such other location approved by the Collateral Agent in its Permitted Discretion) and, in the case of leased or rented premises, unless either (x) if requested by the Administrative Agent a reasonably satisfactory landlord waiver has been delivered to the Administrative Agent or (y) Reserves reasonably satisfactory to the Collateral Agent have been established with respect thereto or (ii) is stored with a bailee at a leased location, unless either (x) a reasonably satisfactory landlord waiver has been delivered to the Administrative Agent, or (y) Reserves reasonably satisfactory to the Collateral Agent have been established with respect thereto, or (iii) is stored with a bailee or warehouseman, unless either (x) a reasonably satisfactory, acknowledged bailee letter has been received by the Administrative Agent or (y) Reserves reasonably satisfactory to the Collateral Agent have been established with respect thereto;         (c)   is placed on consignment;                                            17  #93457508v14

 

      (d)    is in transit, other than Inventory in-transit from a Credit Party’s location in the United States of America to another location of a Credit Party in the United States of America;        (e)    is covered by a negotiable document of title;        (f)    is obsolete or otherwise defective or unfit for sale;        (g)    consists of goods that are slow moving or constitute spare parts (not intended for sale), packaging and shipping materials, promotional products (not intended for sale), supplies used or consumed in a Borrower’s business;        (h)    consists of any gross profit mark-up in connection with the sale and distribution thereof to any division of any Borrower or Subsidiary of such Borrower;        (i)    consists of goods that have been returned or rejected by the buyer and are not in salable condition;        (j)    is not of a type held for sale in the ordinary course of any Borrower’s business;        (k)    [Reserved];        (l)    breaches in any material respect any of the representations or warranties pertaining to Inventory set forth in the Credit Documents;        (m)    does not conform to all standards imposed by any governmental agency, division or department thereof which has regulatory authority over such goods or the use or sale thereof;        (n)    is Commingled Inventory;        (o)    the Inventory is located outside of the United States of America;        (p)    the Inventory is subject to a license agreement or other arrangement with a third party which, in the Collateral Agent’s Permitted Discretion, restricts the ability of the Administrative Agent or the Collateral Agent to exercise its rights under the Credit Documents with respect to such Inventory unless such third party has entered into an agreement in form and substance reasonably satisfactory to the Administrative Agent permitting the Administrative Agent or the Collateral Agent to exercise its rights with respect to such Inventory or the Collateral Agent has otherwise agreed to allow such Inventory to be eligible in the Collateral Agent’s Permitted Discretion;        (q)    consists of any costs associated with “freight-in” charges;         (r)   is not covered by casualty insurance as required by the terms of this Agreement;         (s)   consists of Inventory at a location which totals less than $250,000 at such location; or         (t)   consists of not finished goods or which constitutes work-in-process.  The Borrowers expressly acknowledge and agree that, notwithstanding anything to the contrary contained above in this definition or elsewhere in this Agreement, the Administrative Agent’s or the Collateral Agent’s entering into of a third party landlord-lendor or bailee agreement shall not, in and of itself, indicate that such agreement is otherwise in form and substance reasonably satisfactory to the Administrative Agent or                                             18  #93457508v14

 

preclude the Collateral Agent, in its Permitted Discretion, from establishing Reserves as contemplated by this Agreement.         “Eligible Precious Metals Inventory” means any Precious Metals Inventory owned by a Borrower that constitutes Eligible Inventory (disregarding clauses (g), (j) and (t) of the definition thereof); provided that clause (n) of the definition of Eligible Inventory shall not cause the exclusion of any Precious Metals Inventory to the extent that the applicable vendor or supplier in possession of such Precious Metals Inventory executes a release agreement or similar agreement agreeing to turn over such Precious Metals Inventory to the Collateral Agent upon its exercise of remedies in accordance with the Credit Documents.         “Eligible Spare Parts Inventory” means any Spare Parts Inventory owned by a Borrower that constitutes Eligible Inventory (disregarding clauses (g), (j) and (t) of the definition thereof).        “Eligible Transferee” shall mean and include a commercial bank, an insurance company, a finance company, a financial institution, any fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act), but in any event excluding natural persons, the Credit Parties and their respective Subsidiaries and Affiliates and CVR Energy, Inc. and its Subsidiaries and Affiliates; provided, however, that, notwithstanding any provision of this Agreement to the contrary, any Affiliated Lender may constitute an Eligible Transferee, if each of the conditions set forth in Section 13.04(c) is satisfied with respect to any assignment or purported assignment to such Affiliated Lender of any Revolving Loan Commitment and/ or Obligations..        “End Date” shall have the meaning provided in the definition of Applicable Margin.         “Environmental Claims” shall mean any and all actions, suits, demands, demand letters, directives, claims, liens and/or notices, including notices of noncompliance, violation or liability, investigations and/or proceedings (hereafter, “Claims”) relating in any way to Environmental Law or to any permit issued, or any approval given, under any Environmental Law, including (a) any and all Claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages related to any Environmental Law, and (b) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief arising out of or relating to an alleged injury or threat of injury to human health and safety (as it relates to the exposure to Hazardous Materials), or natural resources or the environment.         “Environmental Law” shall mean any Federal, state, foreign or local statute, law (including principles of common law), rule, regulation, ordinance, code, directive, judgment, order, or any other requirements of, or agreements with,  Governmental Authorities, now or hereafter in effect and in each case as amended, and any binding judicial or administrative interpretation thereof, relating to pollution or the protection of the environment, natural resources, human health and safety (as it relates to the exposure to Hazardous Materials) or the presence, Release, threatened Release, manufacture, generation, use, transportation, treatment, storage, disposal or recycling of Hazardous Materials, or the arrangement of any such activities.        “Equity Interests” of any Person shall mean any and all shares, interests, rights to purchase, warrants, options, participation or other equivalents of or interest in (however designated) equity of such Person, including any common stock, preferred stock, any limited or general partnership interest and any limited liability company membership interest.        “ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended, from time to time, and the regulations promulgated and rulings issued thereunder. Section references to                                            19  #93457508v14

 

ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.         “ERISA Affiliate” shall mean any person that for purposes of Title I or Title IV of ERISA or Section 412 of the Code would be deemed at any relevant time to be a single employer or otherwise aggregated with any Credit Party or any of their respective Subsidiaries and Unrestricted Subsidiaries under Section 414 of the Code or Section 4001(14) of ERISA.        “ERISA Event” shall mean any one or more of the following:        (a)    any Reportable Event;        (b)    the filing of a notice of intent to terminate any Plan, if such termination would require material additional contributions in order to be considered a standard termination within the meaning of Section 4041(b) of ERISA, the filing under Section 4041(c) of ERISA of a notice of intent to terminate any Plan or the termination of any Plan under Section 4041(c) of ERISA;        (c)    the institution of proceedings, or the occurrence of an event or condition which would reasonably be expected to constitute grounds for the institution of proceedings by the PBGC under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan;        (d)    the failure to make a required contribution to any Plan that would result in the imposition of a lien or other encumbrance or the provision of security under Section 430 of the Code or Section 303 or 4068 of ERISA, or the arising of such a lien or encumbrance; there being or arising any “unpaid minimum required contribution” or “accumulated funding deficiency” (as defined or otherwise set forth in Section 4971 of the Code or Part 3 of Subtitle B of Title I of ERISA), whether or not waived; or the filing of any request for or receipt of a minimum funding waiver under Section 412 of the Code with respect to any Plan, or that such filing may be made or a determination that any Plan is, or is expected to be, considered an at-risk plan or in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 or 305 of ERISA;        (e)    engaging in a non-exempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA;        (f)    the complete or partial withdrawal of any Credit Party or any of their respective Subsidiaries or Unrestricted Subsidiaries or any ERISA Affiliate from a Multiemployer Plan, the insolvency under Title IV of ERISA of any Multiemployer Plan; or the receipt by any Credit Party or any of their respective Subsidiaries or Unrestricted Subsidiaries or any ERISA Affiliate, of any notice, or the receipt by any Multiemployer Plan from any of any Credit Party, any of their respective Subsidiaries or Unrestricted Subsidiaries or any ERISA Affiliate of any notice, that a Multiemployer Plan is in endangered or critical status under Section 305 of ERISA; or        (g)    any Credit Party, any of their respective Subsidiaries or Unrestricted Subsidiaries or an ERISA Affiliate incurring any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA).        “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.        “Event of Default” shall have the meaning provided in Section 11.                                            20  #93457508v14

 

      “Excess Availability” shall mean, as of any date of determination, the amount by which Availability at such time exceeds the Aggregate Exposure at such time.         “Excluded Accounts” shall mean (x) Deposit Accounts or Securities Accounts the balance of which consist exclusively of (i) withheld income taxes and federal, state, local or foreign employment taxes in such amounts as are required in the reasonable judgment of any Borrower to be paid to the Internal Revenue Service or any other U.S. federal, state or local or foreign government agencies within the following two months with respect to employees of any of the Credit Parties or with respect to payments made to other Persons subject to withholding, (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg.  Sec. 2510.3-102 or any foreign plan on behalf of or for the benefit of employees of one or more Credit Parties, (iii) amounts which are required to be pledged or otherwise provided as security pursuant to any law, other requirements of any Governmental Authority or foreign pension requirement, (iv) any accounts opened and amounts or deposits relating to Liens permitted by Section 10.01(l), (n) and/or (u), in each case which are permittednot prohibited hereunder, and (v) amounts to be used to fund payroll obligations, (y) all other Deposit Accounts or Securities Accounts established (or otherwise maintained) by any Credit Party or any of their respective Domestic Subsidiaries (excluding Collection Accounts and Concentration Accounts and UBS Accounts) that do not have balances (including the value of Cash Equivalents and other securities) at any time exceeding $1,000,000 for any individual Deposit Account or Securities Account or $2,500,000 in the aggregate for all such Deposit Accounts and Securities Accounts and (z) each Asset Sale Proceeds Account.         “Excluded Assets” shall have the meaning given to such term in the Security Agreement.         “Excluded Hedging Obligation” means, with respect to any Guarantor, any payment obligation in respect of a Secured Hedging Agreement (a “Hedging Obligation”) if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Hedging Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof)  by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such Guarantor or the grant of such security interest becomes effective with respect to such Hedging Obligation. If a Hedging Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Hedging Obligation that is attributable to the derivatives for which such guarantee or security interest is or becomes illegal.         “Excluded Taxes” shall have the meaning provided in Section 5.04(a).        “Executive Order” shall have the meaning provided in Section 8.23(a).         “Existing Indebtedness” shall have the meaning provided in Section 8.21.         “Expenses” shall mean all present and future reasonable and invoiced out-of-pocket expenses incurred by or on behalf of the Administrative Agent, the Collateral Agent, or any Issuing Lender in connection with this Agreement, any other Credit Document or otherwise in its capacity as the Administrative Agent, the Collateral Agent or an Issuing Lender under this Agreement or the Collateral Agent under any Security Document, whether incurred heretofore or hereafter, which expenses shall include the expenses set forth in Section 13.01, the cost of record searches, the reasonable fees and expenses of attorneys and paralegals, all reasonable and invoiced out-of-pocket costs and expenses incurred by the Administrative Agent (and the Collateral Agent) in opening bank accounts, depositing checks, electronically or otherwise receiving and transferring funds, and any other charges imposed on                                            21  #93457508v14

 

the Administrative Agent (and the Collateral Agent) due to insufficient funds of deposited checks and the standard fee of the Administrative Agent (and the Collateral Agent) relating thereto, collateral examination and environmental assessment fees and expenses, reasonable fees and expenses of accountants, appraisers or other consultants, experts or advisors employed or retained by the Administrative Agent, the Collateral Agent or the Collateral Agent in accordance with (or to the extent permitted by) the terms of this Agreement or any other Credit Documents, fees and taxes related to the filing of financing statements, out-of-pocket costs of preparing and recording any other Credit Documents, all expenses, costs and fees set forth in this Agreement and the other Credit Documents, all other fees and expenses required to be paid pursuant to any other letter agreement and all reasonable and invoiced out-of-pocket fees and expenses incurred in connection with releasing Collateral and the amendment or termination of any of the Credit Documents.; provided, that, in the case of legal fees, unless the Company otherwise agrees, the Administrative Agent, Collateral Agent and Issuing Lender shall be limited to reimbursement for the reasonable and documented out-of-pocket fees and disbursements of one primary counsel to the Administrative Agent, Collateral Agent and Issuing Lender and one local counsel in each relevant jurisdiction).        “Extended Loan” shall mean each Revolving Loan and each Swingline Loan made pursuant to an Extended Revolving Commitment.         “Extended Revolving Commitment Termination Date” shall mean, with respect to any Extended Loan or Extended Revolving Loan Commitment, the agreed upon date occurring after the Initial Revolving Commitment Termination Date.         “Extended Revolving Loan Commitment” shall have the meaning provided in Section 2.16.         “Extension” shall have the meaning provided in Section 2.16(a).        “Extension Offer” shall have the meaning provided in Section 2.16(a).        “Facing Fee” shall have the meaning provided in Section 4.01(c).        “Fair Market Value” shall mean, with respect to any asset (including any Equity Interests of any Person), the price at which a willing buyer under no compulsion to buy, not an Affiliate of the seller, and a willing seller under no compulsion to sell, would agree to purchase and sell such asset, as determined in good faith by the board of directors or other governing body or, pursuant to a specific delegation of authority by such board of directors or governing body, a designated senior executive officer, of the Company or the Subsidiary selling such asset.        “FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement, treaty or convention entered into in connection with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or official practices adopted pursuant to such intergovernmental agreement.         “FCPA” shall have the meaning provided in Section 8.23.        “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System, as published for such day (or, if such day is not a Business Day,                                            22  #93457508v14

 

for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent; provided, that, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.        “Federal Reserve Bank of New York’s Website” shall have the meaning provided in Section 2.17(e).        “Fees” shall mean all amounts payable pursuant to or referred to in Section 4.01.         “Finance Lease Obligations” shall mean, with respect to any Person, all rental obligations of such Person which, under GAAP, are or will be required to be capitalized on the books of such Person, in each case taken at the amount thereof accounted for as indebtedness in accordance with such principles; provided that for the avoidance of doubt, any lease that is accounted for by any Person as an operating lease in accordance with GAAP as of December 31, 2018 and any similar lease entered into after such date by any Person may, in the sole discretion of such Person, be treated as an operating lease and not a finance lease.        “First Priority” shall mean, with respect to any Lien purported to be created on any Collateral pursuant to any Security Document, that such Lien is prior in right to any other Lien thereon, other than any Permitted Liens (excluding Specified Permitted Liens) applicable to such Collateral which as a matter of law (and giving effect to any actions taken pursuant to the last paragraph of Section 10.01) have priority over the respective Liens on such Collateral created pursuant to the relevant Security Document.         “Fiscal Quarter” shall mean, for any Fiscal Year, (i) the fiscal period commencing on January 1 of such Fiscal Year and ending on March 31 of such Fiscal Year, (ii) the fiscal period commencing on April 1 of such Fiscal Year and ending on June 30 of such Fiscal Year, (iii) the fiscal period commencing on July 1 of such Fiscal Year and ending on September 30 of such fiscal year and (iv) the fiscal period commencing on October 1 of such Fiscal Year and ending on December 31 of such Fiscal Year.        “Fiscal Year” shall mean, with respect to the Company, the fiscal period commencing on January 1 of a calendar year and ending on December 31 of such calendar year.         “Fixed Charge Coverage Ratio” shall mean, for any period, the ratio of (a)(i) Consolidated EBITDA for such period minus (ii) the aggregate amount of all Capital Expenditures made by the Company and its Subsidiaries during such period (other than expenditures that constitute a Permitted Acquisition or other Investment permitted by Section 10.02 and Capital Expenditures to the extent financed with the proceeds of any sale or issuance of Equity Interests or any equity contributions, the proceeds of any asset sale (other than sales of inventory in the ordinary course of business), the proceeds of any Recovery Event or the proceeds of any incurrence of Indebtedness (other than the incurrence of any Loans or any loans under any other revolving credit (or similar) facility), but including Capital Expenditures to the extent financed with proceeds of Loans and loans under any other revolving credit (or similar) facility, minus (iii) the aggregate amount of all cash payments (including cash Dividends pursuant to Section 10.03(d)) made by the Company and its Subsidiaries in respect of income taxes or income tax liabilities (net of cash income tax refunds) during such period (excluding such cash payments related to asset sales not in the ordinary course of business) to (b) Fixed Charges for such period.        “Fixed Charges” shall mean, for any period, the sum of (a) any amortization or other scheduled payments made during such period on all Indebtedness of the Company and its Subsidiaries for such period (including the principal component of all obligations in respect of all CapitalizedFinance Lease Obligations), plus (b) Consolidated Interest Expense of the Company as so defined and its Subsidiaries                                            23  #93457508v14

 

for such period, plus (c) the aggregate amount of all cash Dividends paid by the Company and its Subsidiaries as permitted under Section 10.03 for such period in respect of Disqualified Equity Interests).         “Foreign Lender” shall have the meaning provided in Section 5.04(c).        “Foreign Pension Plan” shall mean any plan, fund (including any superannuation fund) or other similar program established or maintained outside the United States by one or more Credit Parties or any one or more of their respective Subsidiaries primarily for the benefit of employees of such Credit Parties or such Subsidiaries residing outside the United States, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code.        “Foreign Subsidiary” of any Person shall mean any Subsidiary of such Person that is not a Domestic Subsidiary of such Person.         “FSHCO” shall mean any direct or indirect Domestic Subsidiary (including any Domestic Subsidiary that is a disregarded entity under the Code) of any Credit Party that has no material assets (held directly or indirectly) other than Equity Interests or indebtedness of one or more Foreign Subsidiaries that are CFCs.        “GAAP” shall mean generally accepted accounting principles in the United States as in effect from time to time; provided, that, determinations in accordance with GAAP for purposes of Sections 9.13 and 10 and the calculation of the Fixed Charge Coverage Ratio, the Total Leverage Ratio and the Secured Leverage Ratio, including defined terms as used therein, are subject (to the extent provided therein) to Section 13.07(a).         “Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.        “Guaranteed Creditors” shall mean and include each of the Administrative Agent, the Collateral Agent, the Issuing Lenders, the Lenders, the Swingline Lender, each Lender Counterparty and each Treasury Services Creditor.         “Guaranteed Obligations” shall mean (i) the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all Obligations of any Borrower to the Administrative Agent, the Collateral Agent, the Issuing Lenders, the Swingline Lender and the Lenders (or any of them) now existing or hereafter incurred under, arising out of or in connection with this Agreement and each other Credit Document and the due performance and compliance by such Borrower with all the terms, conditions and agreements contained in this Agreement and in each such other Credit Document, (ii) the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all Secured Hedging Obligations of any Borrower or any Subsidiary thereof to any Secured Hedging Creditor now existing or hereafter incurred under, arising out of or in connection with any Secured Hedging Agreement to which such Secured Hedging Creditor is a party, and the due performance and compliance by such Borrower or such Subsidiary with all terms, conditions and agreements contained in such Secured Hedging Agreement, and (iii) the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all Secured Cash Management Obligations of any Borrower or any Subsidiary thereof to any Secured Cash Management Creditor now existing or hereafter incurred under, arising out of or in connection with any Secured Cash Management Agreement to which such                                            24  #93457508v14

 

Secured Cash Management Creditor is a party, and the due performance and compliance by such Borrower or such Subsidiary with all terms, conditions and agreements contained in such Secured Cash Management Agreement; provided that the Guaranteed Obligations shall exclude all Excluded Hedging Obligations.        “Guarantor” shall mean CVR Nitrogen GP and CVR Finance and each Borrower (in its capacity as a guarantor under the Guaranty), in each case together with each other entity that becomes a Guarantor pursuant to Section 16.13.         “Guaranty” shall mean the guaranty of the Guarantors pursuant to Section 16.         “Hazardous Materials” shall mean any chemicals, materials, wastes, pollutants, contaminants, or substances defined, designated, regulated or classified as hazardous or toxic or words of similar import, or as a hazardous waste, hazardous substance, hazardous material, solid waste, pollutant, contaminant or toxic substance under, or which can form the basis for liability under, any Environmental Law, including any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation or urea in any form, dielectric fluid containing levels of polychlorinated biphenyls, and radon gas.         “Highest Adjustable Applicable Margins” shall have the meaning provided in the definition of Applicable Margin.        “Historical Excess Availability” shall mean, for the purposes of the definition of Applicable Margin, in the case of each Start Date, an amount equal to (x) the sum of each day’s Excess Availability during the most recently ended Fiscal Quarter divided by (y) the number of days in such Fiscal Quarter; provided, that, Excess Availability shall be determined on a Pro Forma Basis in accordance with the requirements of the definition of “Pro Forma Basis” contained herein.         “Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate.”         “Incremental Commitment” shall mean, for any Lender, any Revolving Loan Commitment provided by such Lender after the Effective Date in an Incremental Commitment Agreement delivered pursuant to Section 2.15; it being understood, however, that on each date upon which an Incremental Commitment of any Lender becomes effective, such Incremental Commitment of such Lender shall be added to (and thereafter become a part of) the Revolving Loan Commitment of such Lender for all purposes of this Agreement as contemplated by Section 2.15.        “Incremental Commitment Agreement” shall mean each Incremental Commitment Agreement in substantially the form of Exhibit O (appropriately completed, and with such modifications as may be reasonably satisfactory to the Administrative Agent) executed and delivered in accordance with Section 2.15.         “Incremental Commitment Date” shall mean each date upon which an Incremental Commitment under an Incremental Commitment Agreement becomes effective as provided in Section 2.15(b).         “Incremental Commitment Requirements” shall mean, with respect to any provision of an Incremental Commitment on a given Incremental Commitment Date, the satisfaction of each of the following conditions on the Incremental Commitment Date of the respective Incremental Commitment Agreement: (i) no Default or Event of Default exists or would exist after giving effect thereto; (ii) all of the representations and warranties contained in the Credit Documents shall be true and correct in all                                            25  #93457508v14

 

material respects at such time (unless stated to relate to a specific earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date) (it being understood and agreed that any representation or warranty that is qualified by “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of any such date); (iii) the delivery by the Company to the Administrative Agent of an acknowledgment, in form and substance reasonably satisfactory to the Administrative Agent and executed by each Credit Party, acknowledging that such Incremental Commitment and all Revolving Loans subsequently incurred, and Letters of Credit issued, as applicable, pursuant to such Incremental Commitment shall constitute Obligations under the Credit Documents and secured on a pari passu basis with the Obligations under the Security Documents; (iv) the Company shall have delivered a certificate executed by an Authorized Officer of the Company, certifying to the best of such officer’s knowledge, compliance with the requirements of preceding clauses (i) and (ii) and shall have delivered a Borrowing Base Certificate pursuant to Section 9.01(j); and (v) the completion by each Credit Party of (x) such other actions as the Administrative Agent may reasonably request in connection with such Incremental Commitment in order to create, continue or maintain the security interests of the Collateral Agent in the Collateral and the perfection thereof (including any amendments to Security Documents, additional Security Documents and such other documents reasonably requested by the Administrative Agent to be delivered in connection therewith) and (y) such other conditions that may be specified in the applicable Incremental Commitment Agreement.        “Incremental Lender” shall have the meaning provided in Section 2.15(b).         “Incremental Security Documents” shall have the meaning provided in Section 2.15(b).         “Indebtedness” as applied to any Person shall mean, without duplication, (i) all indebtedness for borrowed money; (ii) that portion of obligations with respect to CapitalizedFinance Lease Obligations that is classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of property or services (excluding (x) trade payables and accrued expenses arising in the ordinary course of business and (y) obligations incurred under ERISA), which purchase price is (a) due more than six months from the date of incurrence of the obligation in respect thereof or (b) evidenced by a note or similar written instrument; (v) all indebtedness secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is non-recourse to the credit of that Person; provided, however, in the case of non-recourse Indebtedness, the amount of such Indebtedness shall be limited to the value of the assets securing such indebtedness; (vi) the face amount of any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (vii) the direct or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the Indebtedness of another; (viii) any obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; provided, that, such obligation shall not be deemed Indebtedness unless the underlying obligation would be deemed Indebtedness; (ix) any liability of such Person for an obligation of another through any agreement (contingent or otherwise) (a) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (b) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under subclauses (a) or (b) of this clause (ix), the primary purpose or intent thereof is as described in clause (viii) above; provided, that, such obligation shall not be deemed Indebtedness unless                                            26  #93457508v14

 

the underlying obligation would be deemed Indebtedness; (x) all net obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including any Interest Rate Protection Agreement or Other Hedging Agreement, whether entered into for hedging or speculative purposes; and (xi) all Off-Balance Sheet Liabilities of such Person.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is directly liable therefore as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.  The Indebtedness of any Person shall not include indebtedness that has been legally and irrevocably defeased or satisfied and discharged.         “Indemnified Person” shall have the meaning provided in Section 13.01(a).        “Individual Exposure” of any Lender shall mean, at any time, the sum of (a) the aggregate principal amount of all Revolving Loans made by such Lender and then outstanding, (b) such Lender’s RL Percentage of the aggregate principal amount of all Swingline Loans then outstanding and (c) such Lender’s RL Percentage of the aggregate amount of all Letter of Credit Outstandings at such time.         “Initial Revolving Commitment Termination Date” means September 2930, 20212022.        “Insolvency Proceeding” shall mean any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any state or foreign bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.         “Intercompany Debt” shall mean any Indebtedness, payables or other obligations, whether now existing or hereafter incurred, owed by any Credit Party or Subsidiary of a Credit Party to any Credit Party or any Subsidiary or Unrestricted Subsidiary of a Credit Party.         “Intercompany Loans” shall have the meaning provided in Section 10.05(h).         “Intercompany Note” shall mean a promissory note (which may be a global promissory note) evidencing Intercompany Loans, duly executed and delivered substantially in the form of Exhibit J (or such other form as shall be reasonably satisfactory to the Administrative Agent), with blanks completed in conformity herewith.        “Intercreditor Agreement” shall mean the Intercreditor Agreement substantially in the form of Exhibit N (as amended, restated, amended and restated, or otherwise modified from time to time) or any other intercreditor agreement reasonably acceptable to the Administrative Agent and the Company.         “Interest Determination Date” shall mean, with respect to any LIBOR Loan, the second Business Day prior to the commencement of any Interest Period relating to such LIBOR Loan.        “Interest Period” shall have the meaning provided in Section 2.09.        “Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other similar agreement or arrangement.        “Interpolated Rate” shall mean, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that                                            27  #93457508v14

 

results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period for which the LIBO Screen Rate is available (for the applicable currency) that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available (for the applicable currency) that exceeds the Impacted Interest Period, in each case, at such time         “Interest Determination Date” shall mean, with respect to any LIBOR Loan, the second Business Day prior to the commencement of any Interest Period relating to such LIBOR Loan.        “Interest Period” shall have the meaning provided in Section 2.09.        “Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other similar agreement or arrangement.        “Inventory” shall mean (a) all “inventory” as such term is defined in Article 9 of the UCC and (ii) all goods held for sale or lease or to be furnished under contracts of service or so leased or furnished, all raw materials, work in process, finished goods and materials used or consumed in the manufacturing, packing, shipping, advertising, selling, leasing furnishing or production of such inventory or otherwise used or consumed in the Borrowers’ business (including, for the avoidance of doubt, Spare Parts Inventory and Precious Metals Inventory).         “Inventory Reserve” shall mean reserves established by the Collateral Agent in its Permitted Discretion to reflect declines in market value or to reflect factors that may negatively impact the value of Inventory, including change in salability, obsolescence, seasonality, change in composition or mix, markdowns and vendor chargebacks.         “Investment Grade Securities” shall mean (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided, that, the full faith and credit of the United States is pledged in support thereof), (ii) debt securities or debt instruments with an investment grade rating (but not including any debt securities or instruments of any Credit Party or any Subsidiary, Unrestricted Subsidiary or Affiliate thereof), (iii) investments in any fund that invests exclusively in investments of the type set forth in clauses (i) and (ii) above which fund may also hold immaterial amounts of cash pending investment or distribution, and (iv) corresponding instruments in countries other than the United States customarily utilized for high quality investments.         “Investments” shall have the meaning provided in Section 10.05.         “ISP” shall mean, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance).         “Issuing Lender” shall mean each of (i) UBS AG, Stamford Branch (except as otherwise provided in Section 12.09) and (ii) any other Lender reasonably acceptable to the Administrative Agent which agrees to issue Letters of Credit hereunder; provided, that, if the Extension is effected in accordance with Section 2.16, then on the occurrence of the Initial Revolving Commitment Termination Date, each Issuing Lender shall have the right to resign as such on, or on any date within twenty (20) Business Days after, the Initial Revolving Commitment Termination Date, upon not less than ten (10) days’ prior written notice thereof to the Company and the Administrative Agent and, in the event of any such resignation and upon the effectiveness thereof, the resigning Issuing Lender shall retain all of its rights hereunder and under the other Credit Documents as Issuing Lender with respect to all Letters of Credit theretofore issued                                            28  #93457508v14

 

by it (which Letters of Credit shall remain outstanding in accordance with the terms hereof until their respective expirations) but shall not be required to issue any further Letters of Credit hereunder.  If at any time and for any reason (including as a result of resignations as contemplated by the last proviso to the preceding sentence), an Issuing Lender has resigned in such capacity in accordance with the preceding sentence and no Issuing Lenders exist at such time, then no Person shall be an Issuing Lender hereunder obligated to issue Letters of Credit unless and until (and only for so long as) a Lender (or Affiliate of a Lender) reasonably satisfactory to the Administrative Agent and the Company agrees to act as Issuing Lender hereunder.  Any Issuing Lender may, in its discretion, arrange for one or more Letters of Credit to be issued by one or more Affiliates of such Issuing Lender (and such Affiliate shall be deemed to be an “Issuing Lender” for all purposes of the Credit Documents).         “Issuing Lender Sublimit” shall mean (a) with respect to UBS AG, Stamford Branch, $10,000,000 and (b) with respect to each other Issuing Lender party hereto from time to time, Letter of Credit Outstandings at any time not to exceed in the aggregate an amount to be agreed between the Company and such Issuing Lender (upon notice to the Administrative Agent) (as such amount may be adjusted as provided below) and, in any case of clause (a), such other amount to be agreed in writing between the Company and such Issuing Lender (in its sole discretion).         “Joinder Agreement” shall mean, collectively, (i) a Joinder Agreement substantially in the form of Exhibit L, (ii) a joinder or counterpart agreement in the form attached to the Security Agreement and (iii) a joinder or counterpart agreement in the form attached to the Intercreditor Agreement (in each case, appropriately completed).        “Junior Indebtedness Document” shall mean any indenture, purchase agreement, credit agreement, loan agreement or similar agreement or arrangement evidencing or governing any Junior Indebtedness, and also shall include all guarantee agreements and other documents, agreements or instruments from time to time relating thereto.         “Landlord Personal Property Collateral Access Agreement” shall mean a Landlord Waiver and Consent Agreement substantially in the form of Exhibit K, with such amendments, modifications or supplements thereto as may be approved by the Administrative Agent.        “Lead Arrangers” shall mean UBS AG, Stamford Branch and Credit Suisse Securities (USA) LLC, in their capacity as Joint Lead Arrangers and Joint Book Runners for the credit facility hereunder, and any successors thereto.         “Leaseholds” of any Person shall mean all the right, title and interest of such Person as lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures.         “Lender” shall mean each financial institution listed on Schedule 1.01(a), as well as any Person that becomes a “Lender” hereunder pursuant to Section 2.13, Section 2.15 or Section 13.04(b).         “Lender Default” shall mean, as to any Lender, (i) the wrongful refusal (which has not been retracted) of such Lender or the failure of such Lender (which has not been cured) to make available its portion of any Borrowing (including any Mandatory Borrowing) or to fund its portion of any unreimbursed payment with respect to a Letter of Credit pursuant to Section 3.04(c), which refusal or failure is not cured within two Business Days after the date of such refusal or failure unless subject to a good faith dispute, (ii) such Lender having been deemed insolvent or having become the subject of a bankruptcy or insolvency proceeding or a takeover by a regulatory authority, (iii) such Lender has, or has a direct or indirect parent company that has, become the subject of a Bail-in Action or (iv) such Lender having notified the Administrative Agent, the Swingline Lender, any Issuing Lender and/or any Credit                                            29  #93457508v14

 

Party (x) that it does not intend to comply with its obligations under Section 2.01(a) or (c), Section 2.04 or Section 3, as the case may be, in circumstances where such non-compliance would constitute a breach of such Lender’s obligations under the respective Section (unless such notice, in the case of this sub- clause (x), has been retracted by such Lender) or (y) of the events described in preceding clause (ii); provided, that, for purposes of (and only for purposes of) Sections 2.01(b), 3.03(b) and 5.02(g) and any documentation entered into pursuant to the Back Stop Arrangements (and the term “Defaulting Lender” as used therein), the term “Lender Default” shall also include, as to any Lender, (i) any Affiliate of such Lender that has “control” (within the meaning provided in the definition of “Affiliate”) of such Lender having been deemed insolvent or having become the subject of a bankruptcy or insolvency proceeding or a takeover by a regulatory authority, (ii) any previously cured “Lender Default” of such Lender under this Agreement, unless such Lender Default has ceased to exist for a period of at least 90 consecutive days, (iii) any default by such Lender with respect to its funding obligations under any other credit facility to which it is a party and which the Swingline Lender, any Issuing Lender or the Administrative Agent believes in good faith has occurred and is continuing after notice thereof to such Lender, unless subject to a good faith dispute, and (iv) the failure of such Lender to make available its portion of any Borrowing (including any Mandatory Borrowing) or to fund its portion of any unreimbursed payment with respect to a Letter of Credit pursuant to Section 3.04(c) within two Business Days of the date (x) the Administrative Agent (in its capacity as a Lender) or (y) Lenders constituting the Required Lenders with Revolving Loan Commitments has or have, as applicable, funded its or their portion thereof; provided, however, a Lender shall not be deemed in Lender Default solely as a result of the acquisition or maintenance of an ownership in such Lender or any Person controlling such Lender or the exercise of control over such Lender or any Person controlling such Lender by a Governmental Authority or an instrumentality thereof.        “Letter of Credit” shall have the meaning provided in Section 3.01(a).         “Letter of Credit Back-Stop Arrangements” shall have the meaning provided in Section 3.03(b).        “Letter of Credit Fee” shall have the meaning provided in Section 4.01(b).         “Letter of Credit Outstandings” shall mean, at any time, the sum of (i) the Stated Amount of all outstanding Letters of Credit at such time and (ii) the aggregate amount of all Unpaid Drawings in respect of all Letters of Credit at such time.         “Letter of Credit Request” shall have the meaning provided in Section 3.03(a).         “LIBO Rate” shall mean with respect to any LIBOR Loan for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Bloomberg screen that displays such rate (or, in the event such rate does not appear on a Bloomberg page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; in each case the “LIBO Screen Rate”), at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate shall be less than zero0.50%, such rate shall be deemed to be zero0.50% for the purposes of this Agreement; provided further that if the LIBO Screen Rate shall not be available at such time for such Interest Period, but is available for periods shorter than and in excess of the applicable Interest Period with respect to Dollars (an “Impacted Interest Period”), then the LIBO Rate shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero0.50%, such rate shall be deemed to be zero0.50% for purposes of this Agreement.                                            30  #93457508v14

 

      “LIBO Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate.”         “LIBOR Loan” shall mean each Loan (other than a Swingline Loan) designated as such by the applicable Borrower at the time of the incurrence thereof or conversion thereto.        “Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority, license or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, any financing or similar statement or notice filed under the UCC or any other similar recording or notice statute, and any lease having substantially the same effect as any of the foregoing).         “Loan” shall mean each Revolving Loan and each Swingline Loan.         “Major Scheduled Turnaround” shall mean with respect to the Coffeyville Facility or the Dubuque Facility, a scheduled shutdown of fertilizer processing units primarily for purposes of conducting maintenance of at least fifteen (15) consecutive days, which shutdown shall occur no more than three times with respect to each such facility prior to the Initial Revolving Commitment Termination Date.         “Major Scheduled Turnaround Expenses” shall mean expenses which have been incurred by the Credit Parties and/or their Subsidiaries to complete a Major Scheduled Turnaround but only to the extent such amounts are included in determining Consolidated Net Income for the respective period.         “Mandatory Borrowing” shall have the meaning provided in Section 2.01(c).         “Margin Stock” shall have the meaning provided in Regulation U.        “Material Adverse Effect” shall mean (a) a material adverse change in, or a material adverse effect on, the business, operations, property, assets, liabilities (actual or contingent) or condition (financial or otherwise) of the Credit Parties taken as a whole or (b) a material impairment of the rights and remedies of the Lenders, the Administrative Agent or the Collateral Agent hereunder or under any other Credit Document or of the ability of any Credit Party to perform its obligations hereunder or under any other Credit Document to which it is a party or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Credit Party of any Credit Document to which it is a party.         “Material Contract” shall mean any contract or other arrangement to which any Credit Party or any of their respective Subsidiaries is a party (other than the Credit Documents) for which breach, nonperformance, cancellation or failure to renew could reasonably be expected to have a Material Adverse Effect.         “Maximum Letter of Credit Amount” shall mean $10,000,000.         “Maximum Rate” shall have the meaning provided in Section 13.20.        “Maximum Swingline Amount” shall mean, at any time, an amount equal to the lesser of (i) $5,000,000 and (ii) 1015% of the Total Revolving Loan Commitment at such time.                                             31  #93457508v14

 

      “Minimum Borrowing Amount” shall mean (i) for Revolving Loans, $500,000, and (ii) for Swingline Loans (x) at all times when a Dominion Period is not in existence, $100,000, and (y) at all other times, there shall be no Minimum Borrowing Amount.         “Minimum Extension Condition” shall have the meaning provided in Section 2.16(d).         “Moody’s” shall mean Moody’s Investors Service, Inc., and any successor thereto.         “Mortgage” shall mean a mortgage, leasehold mortgage, deed of trust, leasehold deed of trust, deed to secure debt, leasehold deed to secure debt, debenture or similar security instrument.        “Mortgage Policy” shall mean a lender’s title insurance policy (Form 2006).        “Mortgaged Property” shall mean (i) as of the Effective Date, (a) the Coffeyville Facility, and  (b) the East Dubuque Facility, and (ii) from and after the Effective Date, any Real Property (other than Excluded Assets) owned or leased by any Credit Party which is encumbered (or required to be encumbered) by a Mortgage pursuant to the terms of this Agreement.         “Multiemployer Plan” shall mean any Plan that is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.         “NAIC” shall mean the National Association of Insurance Commissioners.         “Net Insurance Proceeds” shall mean, with respect to any Recovery Event, the cash proceeds received by the respective Person in connection with such Recovery Event (net of (a) reasonable costs and taxes incurred in connection with such Recovery Event (including cash Dividends pursuant to Section  10.03(d) made by the Company and its Subsidiaries in respect of income taxes or income tax liabilities with respect to such cash proceeds) and (b) required payments of any Indebtedness (other than Indebtedness secured pursuant to the Security Documents and Indebtedness secured by a junior Lien on the ABL Priority Collateral) which is secured by the respective assets which are the subject of such Recovery Event).         “Net Orderly Liquidation Value” means, with respect to Eligible Inventory, an amount equal to the most recently determined Net Orderly Liquidation Value Factor multiplied by the book value of all Eligible Inventory.         “Net Orderly Liquidation Value Factor” means the orderly liquidation value (net of costs and expenses estimated to be incurred in connection with such liquidation) of such Eligible Inventory that is estimated to be recoverable in an orderly liquidation of such Eligible Inventory (expressed as a percentage of book value) as determined by reference to the most recent appraisal delivered to the Administrative Agent pursuant to Section 9.02(b).        “Net Sale Proceeds” shall mean, for any sale or other disposition of assets, the gross cash proceeds (including any cash received by way of deferred payment pursuant to a promissory note, receivable or otherwise, but only as and when received) received from such sale or other disposition of assets, net of (i) reasonable transaction costs (including any underwriting, brokerage or other customary selling commissions, reasonable legal, advisory and other fees and expenses (including title and recording expenses), associated therewith and sales, VAT and transfer taxes arising therefrom), (ii) payments of unassumed liabilities relating to the assets sold or otherwise disposed of, (iii) the amount of such gross cash proceeds required to be used to permanently repay any Indebtedness (other than Indebtedness secured pursuant to the Security Documents), which is secured by the respective assets which were sold                                            32  #93457508v14

 

or otherwise disposed of, and (iv) the estimated net marginal increase in income taxes which will be payable by the Credit Parties’ consolidated group or any Subsidiary of any Credit Party (including cash Dividends pursuant to Section  10.03(d) made by the Credit Parties or any Subsidiary of any Credit Party in respect of income taxes or income tax liabilities) with respect to the Fiscal Year in which the sale or other disposition occurs as a result of such sale or other disposition; provided, however, that such gross proceeds shall not include any portion of such gross cash proceeds which the Company determines in good faith should be reserved for post-closing adjustments (to the extent the Company delivers to the Administrative Agent a certificate signed by an Authorized Officer of the Company as to such determination), it being understood and agreed that on the day that all such post-closing adjustments have been determined, the amount (if any) by which the reserved amount in respect of such sale or disposition exceeds the actual post-closing adjustments payable by any Credit Party or any of their respective Subsidiaries shall constitute Net Sale Proceeds on such date received by any Credit Party and/or any of their respective Subsidiaries from such sale or other disposition.         “Non-Affiliated Lender” shall mean and includes each Lender, other than an Affiliated Lender.        “Non-Defaulting Lender” shall mean and include each Lender, other than a Defaulting Lender.         “Non-Wholly Owned Subsidiary” shall mean, as to any Person, each Subsidiary of such Person which is not a Wholly Owned Subsidiary of such Person.        “Note” shall mean each Revolving Note and the Swingline Note.        “Notes Priority Collateral” shall have the meaning provided in the Intercreditor Agreement.        “Notice Date” shall have the meaning provided in Section 2.16(a).         “Notice of Borrowing” shall have the meaning provided in Section 2.03(a).         “Notice of Conversion/Continuation” shall have the meaning provided in Section 2.06.        “Notice of Swingline Loan” shall have the meaning provided in Section 7.02(a).        “Notice Office” shall mean (i) for credit notices, the office of the Administrative Agent located at UBS AG, Stamford Branch, Banking Products Services, Loan Administration Team, 600 Washington Blvd., Stamford, CT 06901 (ii) for operational notices, the office of the Administrative Agent located at UBS AG, Stamford Branch, Banking Products Services, Loan Administration Team, 600 Washington Blvd., Stamford, CT 06901 and (iii) in either case such other office or person as the Administrative Agent may hereafter designate in writing as such to the other parties hereto.        “Obligations” shall mean (x) the principal of, premium, if any, and interest on the Notes issued by, and the Loans made to, the Borrowers under this Agreement, and all reimbursement obligations and Unpaid Drawings with respect to Letters of Credit, (y) all other payment obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), indebtedness and liabilities owing by the Borrowers and the other Credit Parties to the Administrative Agent, the Collateral Agent, any Issuing Lender, the Swingline Lender or any Lender under this Agreement and each other Credit Document to which any Borrower or other Credit Party is a party (including indemnities, expenses (including Expenses), Fees and interest thereon (including in each case any interest, Fees or expenses (including Expenses) accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in this Agreement, whether or not such interest, Fees or expenses (including Expenses) are an allowed claim in any such                                            33  #93457508v14

 

proceeding)) and (z) all Secured Hedging Obligations owing to any Secured Hedging Creditor and all Secured Cash Management Obligations owing to any Secured Cash Management Creditor, in each case of (x), (y) and (z) whether now existing or hereafter incurred under, arising out of or in connection with each such Credit Document and including all guaranties of the foregoing obligations, indebtedness and liabilities; provided that the Obligations shall exclude all Excluded Hedging Obligations.         “OFAC” shall have the meaning provided in Section 8.24(a).         “Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any sale and leaseback transactions that does not create a liability on the balance sheet of such Person, or (iii) any obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person (but excluding, for the avoidance of doubt, any operating leases).        “Other Hedging Agreements” shall mean any foreign exchange contracts, currency swap agreements, commodity agreements (including Commodity Agreements) or other similar arrangements, or arrangements designed to protect against fluctuations in currency values or commodity prices.         “Participant” shall have the meaning provided in Section 3.04(a).         “Participant Register” shall have the meaning provided in Section 13.04(a).         “Partnership Agreement” shall mean the Limited Partnership Agreement of the Company  among the Company and the other parties thereto, as it may be amended, restated, modified, supplemented and/or replaced from time to time in accordance with the terms thereof and hereof.         “Patriot Act” shall have the meaning provided in Section 13.17.         “Payment Conditions” shall mean that each of the following conditions are satisfied on a Pro Forma Basis immediately after giving effect to the proposed action (and in the case of clauses (i) and (ii), immediately prior to taking such action): (i) there is no Specified Default (or, in the case of Sections  10.03(h) and  10.08(a), no Event of Default) existing immediately before or after the action or proposed action, (ii) Excess Availability on the date of the action or proposed action immediately after giving effect thereto (calculated after giving effect to the Borrowing of any Loans or issuance of any Letters of Credit in connection with the action or proposed action) and throughout the immediately preceding thirty (30) days on an average basis shall exceed (A) in the case of Sections 9.13(a) and 10.05(t), the greater of (I) 15% of Availability and (II) $5,000,000 and (B) in the case of Sections 10.03(h), 10.04(g) and 10.08(a), the greater of (I) 17.5% of Availability and (II) $5,000,000; provided, that, in the event that Excess Availability as determined in accordance with this clause (ii) is greater than (A) in the case of Sections 9.13(a) and 10.05(t), the greater of (I) 20.0% of the Total Revolving Loan Commitment at all timesand (II) $7,000,000 and (B) in the case of Sections 10.03(h), 10.04(g) and 10.08(a), (I) 22.5% of the Total Revolving Loan Commitment at all timesand (II) $7,000,000, then the condition in clause (iii) below shall not be applicable, (iii) the Company shall be in compliance with a Fixed Charge Coverage Ratio of not less than 1.00:1.00, in each case for the Test Period then most recently ended for which financial statements have been delivered to the Lenders pursuant to this Agreement on a Pro Forma Basis as if such action or proposed action had occurred on the first day of such Test Period, and (iv) the Company shall have delivered to the Administrative Agent a certificate of an Authorized Officer of the Company certifying as to compliance with preceding clauses (i) through (iii) and demonstrating (in reasonable detail) the calculations required by preceding clauses (ii) and (iii).                                            34  #93457508v14

 

      “Payment Office” shall mean the office of the Administrative Agent located at UBS AG, Stamford Branch, Banking Products Services, Loan Administration Team, 600 Washington Blvd., Stamford, CT 06901, or such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto.         “PBGC” shall mean the U.S. Pension Benefit Guaranty Corporation.         “Permitted Acquisition” shall mean the acquisition by a Credit Party of an Acquired Entity or Business; provided, that, (in each case) (a) the consideration paid or to be paid by the Credit Party consists solely of cash (including proceeds of Loans), Equity Interests of any parent company of any Credit Party, Equity Interests of the Company, the issuance or incurrence of Indebtedness otherwise permitted by Section 10.04 and the assumption/acquisition of any Indebtedness (calculated at face value) which is permitted to remain outstanding in accordance with the requirements of Section 10.04, (b) the Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition is in a business permitted by Section 10.11, (c) the Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition is acquired in a “non-hostile” transaction approved by the board of directors (or similar body) of such Acquired Entity or Business, (d) to the extent applicable at that time, all requirements of Sections 9.13, 10.02 and 10.12 applicable to Permitted Acquisitions are satisfied, and (e) no assets or properties so acquired shall be deemed to constitute, or contribute to the calculation of, Eligible Accounts, or Eligible Inventory, in each case unless and until  the Collateral Agent, unless otherwise agreed by the Collateral Agent, has either conducted a field examination or completed other due diligence with respect thereto as it may require.  Notwithstanding anything to the contrary contained in the immediately preceding sentence, an acquisition which does not otherwise meet the requirements set forth above in the definition of “Permitted Acquisition” shall constitute a Permitted Acquisition if, and to the extent, the Required Lenders agree in writing, prior to the consummation thereof, that such acquisition shall constitute a Permitted Acquisition for purposes of this Agreement.        “Permitted Discretion” means the Administrative Agent’s or Collateral Agent’s commercially reasonable credit judgment (from the perspective of an asset-based lender), exercised in good faith in accordance with customary business practices for similar asset based lending facilities, based upon its consideration of any factor that it reasonably believes (i) could materially adversely affect the quantity, quality, mix or value of Collateral, the enforceability or priority of the Collateral Agent’s Liens thereon, or the amount that the Collateral Agent, the Lenders or the Issuing Lenders could receive in liquidation of any Collateral; (ii) that renders or would cause any collateral report or financial information delivered by any Credit Party to be incomplete, inaccurate or misleading in any material respect; or (iii) creates an Event of Default; provided that circumstances, conditions, events or contingencies existing or arising prior to the Effective Date and known to the Administrative Agent, in each case, prior to the Effective Date shall not be the basis for any establishment of any reserves after the Effective Date, unless such circumstances, conditions, events or contingencies shall have changed in a material respect since the Effective Date.; provided further that circumstances, conditions, events or contingencies existing or arising prior to the Amendment No. 1 Effective Date and known to the Administrative Agent, in each case, prior to the Amendment No. 1 Effective Date shall not be the basis for any establishment of any reserves after the Amendment No. 1 Effective Date, unless such circumstances, conditions, events or contingencies shall have changed in a material respect since the Amendment No. 1 Effective Date.        “Permitted Encumbrance” shall mean, with respect to any Mortgaged Property, such exceptions to title as are set forth in the Mortgage Policy delivered with respect thereto, all of which exceptions must be acceptable to the Administrative Agent in its reasonable discretion, provided that any exceptions to title that are contained in any lender’s title insurance policy covering such Mortgaged Property that insures the Lien of  any Secured Notes Security Documents, Refinancing Notes Security Documents or Qualified Secured Debt Documents shall be deemed to be acceptable to the Administrative Agent, and                                            35  #93457508v14

 

Permitted Encumbrances shall further  expressly include, for any Mortgaged Property, Liens created by or pursuant to the Secured Notes Security Documents, Refinancing Notes Security Documents and Qualified Secured Debt Documents.        “Permitted Liens” shall have the meaning provided in Section 10.01.        “Person” shall mean any individual, partnership, joint venture, firm, corporation, association, limited liability company, trust or other enterprise or any Governmental Authority.        “Plan” shall mean an “employee benefit plan” as defined in Section 3 of ERISA (other than a Multiemployer Plan) maintained or contributed to by any Credit Party, any of their respective Subsidiaries or any of their respective ERISA Affiliates or any Unrestricted Subsidiaries that are ERISA Affiliates or with respect to which any Credit Party, any of their respective Subsidiaries or any of their respective ERISA Affiliates or any Unrestricted Subsidiaries that are ERISA Affiliates has any obligation to contribute or any liability.         “Precious Metals Inventory” means platinum, rhodium, palladium and any other precious metal approved by the Administrative Agent in its Permitted Discretion, in each case to the extent owned by a Borrower to facilitate production of Inventory (but excluding any such precious metals then being used in production of Inventory).        “Preferred Equity”, as applied to the Equity Interests of any Person, means Equity Interests of such Person (other than common Equity Interests of such Person) of any class or classes (however designed) that ranks prior, as to the payment of dividends or as to the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of such Person, to shares of Equity Interests of any other class of such Person, and shall include any Qualified Preferred Stock.        “Prime Lending Rate” shall mean the rate which the Administrative Agent establishes from time to time as its prime lending rate, the Prime Lending Rate to change when and as such prime lending rate changes.  The Prime Lending Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer by the Administrative Agent, which may make commercial loans or other loans at rates of interest at, above or below the Prime Lending Rate.         “Pro Forma Basis” shall mean, in connection with any calculation of compliance with any financial covenant or financial term, the calculation thereof after giving effect on a pro forma basis to (a) the incurrence of any Indebtedness (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness, to finance a Permitted Acquisition or other Investment or to finance a Dividend) after the first day of the relevant Calculation Period or Test Period, as the case may be, as if such Indebtedness had been incurred (and the proceeds thereof applied) on the first day of such Test Period or Calculation Period, as the case may be, (b) the permanent repayment, irrevocable defeasance or satisfaction and discharge of any Indebtedness (other than revolving Indebtedness, except to the extent accompanied by a corresponding permanent commitment reduction) after the first day of the relevant Test Period or Calculation Period, as the case may be, as if such Indebtedness had been retired, repaid, irrevocably defeased or satisfied and discharged on the first day of such Test Period or Calculation Period, as the case may be, and (c) any Permitted Acquisition or any Significant Asset Sale then being consummated as well as any other Permitted Acquisition or any other Significant Asset Sale if consummated after the first day of the relevant Test Period or Calculation Period, as the case may be, and on or prior to the date of the respective Permitted Acquisition or Significant Asset Sale, as the case may be, then being effected, with the following rules to apply in connection therewith:                                             36  #93457508v14

 

      (i)    all Indebtedness (a) (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness, to finance Permitted Acquisitions or other Investments or to finance a Dividend) incurred or issued after the first day of the relevant Test Period or Calculation Period (whether incurred to finance a Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed to have been incurred or issued (and the proceeds thereof applied) on the first day of such Test Period or Calculation Period, as the case may be, and remain outstanding through the date of determination and (b) (other than revolving Indebtedness, except to the extent accompanied by a corresponding permanent commitment reduction) permanently retired or redeemed,  irrevocably defeased or satisfied and discharged after the first day of the relevant Test Period or Calculation Period, as the case may be, shall be deemed to have been retired, redeemed, defeased or satisfied and discharged on the first day of such Test Period or Calculation Period, as the case may be, and remain retired through the date of determination;        (ii)   all Indebtedness assumed to be outstanding pursuant to preceding clause (i) shall be deemed to have borne interest at (a) the rate applicable thereto, in the case of fixed rate indebtedness, or (b) the rates which would have been applicable thereto during the respective period when same was deemed outstanding, in the case of floating rate Indebtedness (although interest expense with respect to any Indebtedness for periods while same was actually outstanding during the respective period shall be calculated using the actual rates applicable thereto while same was actually outstanding); provided, that, all Indebtedness (whether actually outstanding or deemed outstanding) bearing interest at a floating rate of interest shall be tested on the basis of the rates applicable at the time the determination is made pursuant to said provisions; and         (iii) in making any determination of Consolidated EBITDA on a Pro Forma Basis, pro forma effect shall be given to any Permitted Acquisition or any Significant Asset Sale as if same had occurred on the first day of the respective Calculation Period or Test Period, as the case may be, and taking into account, in the case of any Permitted Acquisition, any Pro Forma Cost Savings (in an aggregate amount not to exceed 20% of Consolidated EBITDA prior to adjustment made on account of such Pro Forma Cost Savings), as if such cost savings or expenses were realized on the first day of the respective period.         “Pro Forma Cost Savings” shall mean, with respect to any period, the reduction in net costs, integration and other synergies (including improvements to gross margins) and related adjustments that (a) are directly attributable to an acquisition that occurred during the four-quarter period or after the end of the four-quarter period and on or prior to the respective Calculation Period, (b) were actually implemented with respect to any acquisition within 12 months after the date of the acquisition and prior to the respective Calculation Period that are supportable and quantifiable by underlying accounting records or (c) the Company reasonably determines are expected to be realized within 12 months of the respective Calculation Period (regardless of whether those cost savings or operating improvements or synergies could then be reflected in pro forma financial statements in accordance with Regulation S-X promulgated under the Securities Act or any other regulation or policy of the SEC related thereto) and, in each case are set forth, as provided below, in an officer’s certificate of an Authorized Officer of the Company, as if all such reductions in costs and integration and other synergies had been effected as of the beginning of such period.  “Pro Forma Cost Savings” set forth above shall be established by a certificate delivered to the Administrative Agent from an Authorized Officer of the Company that outlines the specific actions taken or to be taken and the benefit achieved or to be achieved from each such action and, in the case of clause (c) above, that states such benefits have been determined to be probable.         “Qualified Cash Equivalents” shall mean, as to any Person, (a) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided, that, the full faith and credit of the United States is pledged in support thereof) having maturities of not more than six months from the date of acquisition, (b) commercial paper rated at least P-                                            37  #93457508v14

 

1 by Moody’s or at least A-1 by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another rating agency) and in each case maturing within six months after the date of acquisition, (c) marketable short-term money market and similar securities having a rating of at least P-2 or A-2 from either Moody’s or S&P, respectively, or liquidity funds or other similar money market mutual funds, with a rating of at least Aaa by Moody’s or AAAm by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another rating agency), (d) money market funds at least 95% of the assets of which constitute Qualified Cash Equivalents of the kinds set forth in clauses (a), (b), (c), (d) and (e) of this definition, (e) Dollar denominated time deposits, demand deposits, money market deposits, certificates of deposit and eurodollar time deposits in each case with maturities of six months or less from the date of acquisition and Dollar denominated overnight bank deposits, in each case maintained with any domestic commercial bank (including domestic commercial banks that are Subsidiaries of non-U.S. banks) having capital and surplus in excess of $250,000,000, (f) securities issued by any state of the United States or any political subdivision or taxing authority of any such state, or any public instrumentality thereof, maturing within six months from the date of acquisition thereof and having one of the three highest ratings obtainable from Moody’s or S&P and (g) repurchase obligations for underlying securities of the types set forth in clauses (a) and (e) of this definition entered into with any financial institution meeting the qualifications specified in clause (e) above and having a term of no more than seven days.        “QFC” shall have the meaning provided in Section 13.22(b).        “QFC Credit Support” shall have the meaning provided in Section 13.22.         “Qualified Debt” shall mean Indebtedness permitted to be incurred pursuant to Sections 10.04(o), (p) and (q).         “Qualified Debt Conditions” shall mean that each of the following conditions are satisfied: (i) such Indebtedness is not a working capital facility; (ii) except as provided in clause (v) below, such Indebtedness does not have any maturity, redemption, mandatory repayment or prepayment or similar requirements earlier than six months after the Revolving Commitment Termination Date (other than customary mandatory prepayments or offers to prepay pursuant to customary asset sale and insurance or condemnation recovery event provisions (other than with respect to ABL Priority Collateral) and change of control provisions or to the extent such Indebtedness is incurred under a customary “bridge” facility); (iii) such Indebtedness is either (x) not secured by a Lien on any ABL Priority Collateral or (y) if secured by a Lien on ABL Priority Collateral, such Lien is junior and subordinate to any Liens purported to be created on any ABL Priority Collateral pursuant to the Security Documents and the Collateral Agent (on behalf of the Secured Parties) has been granted a Lien on any collateral (that is not otherwise Collateral) securing (or purporting to secure) such Indebtedness; (iv) if such Indebtedness is secured, the holders of such Indebtedness (or the collateral (or similar) agent for such holders), each Credit Party that is an obligor under such Indebtedness and the Collateral Agent shall have entered into the Intercreditor Agreement establishing the relative rights and priorities (and related creditor rights) with respect to the ABL Priority Collateral and such other Collateral; (v) such Indebtedness does not have any interim annual scheduled amortization, redemption, maturity, repayment or similar requirement in excess of 2.00% of the aggregate principal amount of such Indebtedness; (vi) the Company  shall be in compliance with a Fixed Charge Coverage Ratio at the time of the incurrence of such Indebtedness of not less than 1.00:1.00 for the Test Period then most recently ended for which financial statements have been delivered to the Lenders pursuant to this Agreement on a Pro Forma Basis as if such Indebtedness had been incurred on the first day of such Test Period; (vii) no Default or Event of Default then exists or would result therefrom; (viii) the aggregate principal amount of all Qualified Debt incurred by Subsidiaries of the Company that are not Credit Parties at any one time outstanding shall not exceed $20,000,000; and (ix) prior to the date of the incurrence of such Indebtedness, the Company shall have delivered to the                                            38  #93457508v14

 

Administrative Agent a certificate of an Authorized Officer of the Company certifying as to compliance with preceding clauses (i) through (viii) and demonstrating (in reasonable detail) the calculations required by preceding clause (vi).         “Qualified Debt Documents” shall mean any indenture, purchase agreement, credit agreement, loan agreement or similar agreement or arrangement evidencing or governing any Qualified Debt, and also shall include all guarantee agreements and other documents, agreements or instruments from time to time relating thereto.         “Qualified Preferred Stock” shall mean any Preferred Equity of any Credit Party that is not a Disqualified Equity Interest.         “Qualified Secured Debt” shall mean any Qualified Debt that is secured by a Lien on any asset or property of any Credit Party or any of their respective Subsidiaries.        “Qualified Secured Debt Agent” shall mean any trustee, collateral agent, collateral trustee or similar representative for any issue of Qualified Secured Debt.         “Qualified Secured Debt Documents” shall mean any Qualified Debt Documents evidencing or governing any Qualified Secured Debt, and also shall include all pledge agreements, security agreements, mortgages, deeds of trust, collateral documents and other documents, agreements or instruments from time to time creating (or purporting to create) Liens on any assets or properties of any Credit Party or any of their respective Subsidiaries to secure any obligations under any Qualified Secured Debt Documents.         “Qualified Secured Debt Secured Parties” shall mean and include any Qualified Secured Debt Agent, any other agent, trustee, representative or similar Person for the holders of any Qualified Secured Debt and the holders from time to time of any Qualified Secured Debt.         “Qualifying Owners” shall mean, collectively, (i) Icahn Enterprises L.P., the Related Parties and/or one or more of their respective Affiliates; and (ii) CVR Energy and Coffeyville Resources, LLC, Inc. and/or one or more of its Subsidiaries.        “Quarterly Payment Date” shall mean the last Business Day of each Fiscal Quarter occurring after the Effective Date.         “Quarterly Pricing Certificate” shall have the meaning provided in the definition of Applicable Margin.         “Real Estate Collateral Requirements” shall mean the requirement that, with respect to the Mortgaged Properties, the Administrative Agent shall have received a Mortgage for each Mortgaged Property in form and substance reasonably acceptable to the Administrative Agent and suitable for recording or filing, together, with respect to each Mortgage for any property located in the United States, the following documents: (a) a fully paid Mortgage Policy (or pro forma or marked up commitment having the same effect of a title insurance policy) (i) in a form approved by Administrative Agent in its reasonable discretion, insuring the Lien of the Mortgage encumbering such property as a valid Lien subject only to Permitted Liens, (ii) in an amount reasonably satisfactory to the Administrative Agent, (iii) issued by a nationally recognized title insurance company reasonably satisfactory to the Administrative Agent (the “Title Company”),  and (iv) that includes (A) such coinsurance and direct access reinsurance as the Administrative Agent may deem reasonably necessary or desirable and (B) such endorsements or affirmative insurance reasonably required by the Administrative Agent and available in the applicable jurisdiction at commercially reasonable rates (including, if applicable without limitation,                                            39  #93457508v14

 

endorsements on matters relating to usury, zoning, variable rate, address, separate tax lot, subdivision, tie in or cluster, contiguity, access and so-called comprehensive coverage over covenants and restrictions), provided, however, that, notwithstanding the foregoing provisions of this clause (a), any Mortgage Policy covering a Mortgaged Property that is substantially identical, in form and substance, to any lender’s title insurance policy covering such Mortgaged Property insuring the Lien of any Secured Notes Security Documents shall be deemed to satisfy the requirements of this clause (a), and any title insurance company issuing such lender’s title insurance policy shall be deemed to be reasonably satisfactory to the Administrative Agent; (b) all existing surveys and no change affidavits as may be reasonably required to cause the Title Company to issue the Mortgage Policy required pursuant to clause (a) above; (c) a written opinion from local counsel in each state in which Mortgaged Property is located with respect to enforceability, creation, perfection and payment of mortgage tax with respect to the applicable Mortgage and any related fixture filings, in customary form and substance and subject to customary assumptions, limitations and qualifications; (d) with respect to each Mortgaged Property, such affidavits, certificates, instruments of indemnification and other items (including a so-called “gap” indemnification) as shall be reasonably required by the title insurance company to induce the Title Company to issue the Mortgage Policy contemplated above; (e) evidence reasonably acceptable to the Administrative Agent of payment of all Mortgage Policy premiums, search and examination charges escrow charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgages, fixture filings and issuance of the Mortgage Policies referred to above; and (f) with respect to each Mortgaged Property, a flood hazard determination and, if the area in which any improvements located on any Mortgaged Property is designated a “flood hazard area” in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), flood insurance, with loss payee endorsements in favor of the Collateral Agent, to the extent (including with respect to amounts) required in order to comply with applicable law.        “Real Property” of any Person shall mean all the right, title and interest of such Person in and to land, improvements and fixtures, including Leaseholds.        “Recovery Event” shall mean any event that gives rise to the receipt by any Credit Party or any of their respective Subsidiaries of any cash insurance proceeds or condemnation awards payable (i) by reason of theft, loss, physical destruction, damage, taking or any other similar event with respect to any property or assets of any Credit Party or any of their respective Subsidiaries or (ii) under any policy of insurance maintained by any of them.         “Refinancing Notes” shall mean any Indebtedness of any Credit Party the net cash proceeds of which are used to refinance, replace, defease, discharge or refund all or a portion of the then outstanding Secured Notes and/or Refinancing Notes so long as (a) such Indebtedness does not have any maturity, amortization, mandatory redemption, mandatory repayment or prepayment, mandatory sinking fund or similar requirement earlier than six months after the Revolving Commitment Termination Date (other than customary mandatory offers to prepay pursuant to customary asset sale and insurance or condemnation recovery event provisions and change of control provisions), (b) such Indebtedness has a weighted average life to maturity greater than the weighted average life to maturity of the Secured Notes or Refinancing Notes, as applicable, (c) such Indebtedness does not (i) exceed the aggregate principal amount of the Secured Notes or Refinancing Notes being refinanced, replaced, defeased, discharged or refunded other than as a result of the refinancing of accrued and unpaid interest and premiums (including applicable prepayment premiums) and the fees and the costs of issuing such refinancing Indebtedness or (ii) add guarantors, obligors (unless they are Borrowers or Guarantors) or the type of security from that which applied to the Secured Notes or Refinancing Notes, as applicable, (d) if such Indebtedness is secured, such Indebtedness shall be subject to the terms and conditions of the Intercreditor Agreement on the same basis as (or on less favorable terms to the holders of such Refinancing Notes than) the Secured Notes or Refinancing Notes, as applicable, and (e) the terms of such Indebtedness are on market terms (or                                            40  #93457508v14

 

more favorable terms to the Credit Parties) for unsecured or secured debt securities or loans for similar issuers; provided, that, a certificate of an Authorized Officer of the Company delivered to the Administrative Agent in good faith prior to the incurrence of such Indebtedness certifying that the Company has determined in good faith that such terms satisfy the requirements of this clause (e) shall be conclusive evidence that such terms satisfy such requirements.         “Refinancing Notes Agent” shall mean the respective trustee, collateral agent, collateral trustee or similar Person for the holders of the Refinancing Notes.         “Refinancing Notes Documents” shall mean the Refinancing Notes, the Refinancing Notes Indenture, the Refinancing Security Documents, all guarantee agreements relating to the Refinancing Notes and all other documents, agreements or instruments from time to time relating thereto.         “Refinancing Notes Indenture” shall mean any indenture, purchase agreement, credit agreement, loan agreement or similar agreement or arrangement from time to time evidencing or governing the Refinancing Notes.         “Refinancing Notes Secured Parties” shall mean the Refinancing Notes Agent and any other agent, trustee, representative or similar Person for the holders of any Refinancing Notes and the holders from time to time of any Refinancing Notes.         “Refinancing Notes Security Documents” shall mean all pledge agreements, security agreements, mortgages, deeds of trust, collateral documents and other documents, agreements or instruments from time to time that create (or purport to create) Liens on any assets or properties of any Credit Party or any of their respective Subsidiaries to secure any obligations under the Refinancing Notes Documents.        “Register” shall have the meaning provided in Section 13.15.        “Regulation D” shall mean Regulation D of the Board as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements.        “Regulation T” shall mean Regulation T of the Board as from time to time in effect and any successor to all or a portion thereof.         “Regulation U” shall mean Regulation U of the Board as from time to time in effect and any successor to all or a portion thereof.        “Related Parties” shall mean (i) Carl Icahn and his siblings, his and their respective spouses and descendants (including stepchildren and adopted children) and the spouses of such descendants (including stepchildren and adopted children) (collectively, the “Family Group”); (ii) any trust, estate, partnership, corporation, company, limited liability company or unincorporated association or organization (each an “Entity” and collectively “Entities”) Controlled by one or more members of the Family Group; (iii) any Entity over which one or more members of the Family Group, directly or indirectly, have rights that, either legally or in practical effect, enable them to make or veto significant management decisions with respect to such Entity, whether pursuant to the constituent documents of such Entity, by contract, through representation on a board of directors or other governing body of such Entity, through a management position with such Entity or in any other manner (such rights hereinafter referred to as “Veto Power”); (iv) the estate of any member of the Family Group; (v) any trust created (in whole or in part) by any one or more members of the Family Group; (vi) any individual or Entity who receives an interest in any estate or trust listed in clauses (iv) or (v), to the extent of such interest; (vii) any trust or estate, substantially all the beneficiaries of which (other than charitable organizations or foundations) consist of one or more                                            41  #93457508v14

 

members of the Family Group; (viii) any organization described in Section 501(c) of the Code, over which any one or more members of the Family Group and the trusts and estates listed in clauses (iv), (v) and (vii) have direct or indirect Veto Power, or to which they are substantial contributors (as such term is defined in Section 507 of the Code); (ix) any organization described in Section 501(c) of the Code of which a member of the Family Group is an officer, director or trustee; or (x) any Entity, directly or indirectly (a) owned or Controlled by or (b) a majority of the economic interests in which are owned by, or are for or accrue to the benefit of, in either case, any Person or Persons identified in clauses (i) through (ix) above. For purposes of this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of a Person, whether through the ownership of Voting Stock, by agreement or otherwise and “Controlled” has a corresponding meaning. For the purposes of this definition, and for the avoidance of doubt, in addition to any other Person or Persons that may be considered to possess Control, (x) a partnership shall be considered Controlled by a general partner or managing general partner thereof, (y) a limited liability company shall be considered Controlled by a managing member of such limited liability company and (z) a trust or estate shall be considered Controlled by any trustee, executor, personal representative, administrator or any other Person or Persons having authority over the control, management or disposition of the income and assets therefrom.         “Release” shall mean actively or passively disposing, discharging, injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping, migrating or the like, into or upon any land, subsurface, water, groundwater or indoor or outdoor air, or otherwise entering into the environment.         “Relevant Governmental Body” shall have the meaning provided in Section 2.17(e).        “Rent and Costs Reserve” shall mean a reserve established by the Collateral Agent in respect of (a) all past due rent and other amounts owing by a Borrower to any landlord, warehouseman, processor, repairman, mechanic, freight forwarder, shipper, pipeline or barge owner or operator, or other Person who possesses or handles any ABL Priority Collateral or could assert a Lien on any ABL Priority Collateral and (b) rent payments or storage charges (not to exceed three months’ rent or storage charges) made by a Borrower for each location at which Inventory of a Borrower is located that is not subject to a Landlord Personal Property Collateral Access Agreement or similar agreement (as reported to the Collateral Agent by the Company from time to time as requested by the Collateral Agent), in each case as adjusted from time to time by the Collateral Agent in its Permitted Discretion.         “Replaced Lender” shall have the meaning provided in Section 2.13.        “Replacement Lender” shall have the meaning provided in Section 2.13.        “Reportable Event” shall mean an event described in Section 4043(c) of ERISA with respect to a Plan that is subject to Title IV of ERISA other than those events as to which the 30-day notice period is waived under applicable regulations.        “Required Lenders” shall mean, at any time, Non-Defaulting Lenders and Non-Affiliated Lenders, the sum of whose outstanding Revolving Loan Commitments at such time (or, after the termination thereof, outstanding Revolving Loans and RL Percentages of (x) outstanding Swingline Loans at such time and (y) Letter of Credit Outstandings at such time) represents at least a majority of the sum of the Total Revolving Loan Commitment in effect at such time less the Revolving Loan Commitments of all Defaulting Lenders and Affiliated Lenders at such time (or, after the termination thereof, the sum of thenthe total outstanding Revolving Loans of Non-Defaulting Lenders and Non- Affiliated Lenders and the aggregate RL Percentages of all Non-Defaulting Lenders and Non-Affiliated                                            42  #93457508v14

 

Lenders of the total outstanding Swingline Loans and Letter of Credit Outstandings at such time), in each case subject to Section 13.04(c)(ii).         “Reserves” shall mean reserves, if any, established by the Collateral Agent from time to time hereunder in their Permitted Discretion against the Borrowing Base, including (i) Bank Product Reserves, (ii) Rent and Costs Reserves, (iii) potential dilution related to Accounts, (iv) Inventory Reserves, (v) sums that the Borrowers are or will be required to pay (such as taxes, assessments and insurance premiums) and have not yet paid, (vi) amounts owing by any Borrower to any Person to the extent secured by a Lien on, or trust over, any Collateral, (vii) amounts which pursuant to applicable insolvency legislation must be paid in priority to or pari passu with any Obligations and (viii) such other events, conditions or contingencies as to which the Collateral Agent, in its Permitted Discretion, determine reserves should be established from time to time hereunder; provided, however, that (i) the Collateral Agent may not implement reserves with respect to matters which are already specifically reflected as ineligible Accounts or Inventory, (ii) the establishment of any new reserve category by the Collateral Agent shall only become effective three Business Days after the date of written notice by any of the Collateral Agent to the Company of such establishment and (iii) if an event giving rise to the establishment of any reserves ceases to exist, any Borrower may request in writing that Collateral Agent discontinue the applicable reserves and the Collateral Agent shall promptly do so (unless Collateral Agent determines there is a reasonable prospect that the event will occur again within a reasonable period of time thereafter).        “Resolution Authority” shall mean an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.        “Restricted” shall mean, when referring to cash, Cash Equivalents or Qualified Cash Equivalents of any Credit Party or any of their respective Subsidiaries, that such cash, or Cash Equivalents or Qualified Cash Equivalents (i) appears (or would be required to appear) as “restricted” on the consolidated balance sheet of the Company (unless such appearance is related to the Liens permitted under Section 10.01(d)), (ii) are subject to any Lien in favor of any Person other than (x) the Collateral Agent for the benefit of the Secured Parties and (y) the other Liens permitted in Section 10.01(d) or (iii) are not otherwise generally available for use by such Credit Party or such Subsidiary.         “Returns” shall have the meaning provided in Section 8.09.        “Revolving Commitment Termination Date” shall mean the Initial Revolving Commitment Termination Date; provided, that, with respect to any Extended Loans and any Extended Revolving Loan Commitments, the Revolving Commitment Termination Date with respect thereto instead shall be the Extended Revolving Commitment Termination Date.         “Revolving Loan” shall have the meaning provided in Section 2.01(a).         “Revolving Loan Commitment” shall mean, for each Lender, the amount set forth opposite such Lender’s name in Schedule 1.01(a) directly below the column entitled “Revolving Loan Commitment,” as same may be (x) reduced from time to time or terminated pursuant to Sections 4.02, 4.03 and/or 11, as applicable, (y) adjusted from time to time as a result of assignments to or from such Lender pursuant to Section 2.13 or Section 13.04(b) or (z) increased from time to time pursuant to Section 2.15.  In addition, the Revolving Loan Commitment of each Lender shall include, subject to the consent of such Lender, any Extended Revolving Loan Commitment of such Lender. As of the Amendment No. 1 Effective Date, the Revolving Loan Commitment shall be $35,000,000.        “Revolving Note” shall have the meaning provided in Section 2.05(a).                                            43  #93457508v14

 

      “RL Percentage” of any Lender at any time shall mean a fraction (expressed as a percentage) the numerator of which is the Revolving Loan Commitment of such Lender at such time and the denominator of which is the Total Revolving Loan Commitment at such time; provided, that, if the RL Percentage of any Lender is to be determined after the Total Revolving Loan Commitment has been terminated, then the RL Percentages of such Lender shall be determined immediately prior (and without giving effect) to such termination.         “S&P” shall mean Standard & Poor’s Rating Services, a Standard & Poor’s Financial Services, LLC, a subsidiary of S&P Global Inc. business, and any successor thereto.        “Sale Leaseback” shall mean any transaction or series of related transactions consummated pursuant to which the Company or any of its Subsidiaries (a) sells, transfers or otherwise disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents or leases such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred or disposed.         “Sanctions” shall have the meaning provided in Section 8.23.        “SEC” shall have the meaning provided in Section 9.01(h).        “Section 5.04(c)(ii) Certificate” shall have the meaning provided in Section 5.04(c)(ii).        “Secured Cash Management Agreement” shall mean each written agreement among one or more Credit Parties and a Secured Cash Management Creditor evidencing arrangements to provide Cash Management Services to the Credit Parties and their Subsidiaries (where such Secured Cash Management Agreements may be evidenced by standard account terms of such Secured Cash Management Creditor).        “Secured Cash Management Creditor” shall mean the Administrative Agent and/or any Lender (and/or one or more of banking affiliates of the Administrative Agent or any Lender) that provides Cash Management Services to the Credit Parties or any of their Subsidiaries.        “Secured Cash Management Obligations” shall mean all payment obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), indebtedness and liabilities (including any interest, fees and expenses accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in the respective Secured Cash Management Agreements, whether or not such interest, fees or expenses is an allowed claim in any such proceeding) owing by a Credit Party under each Secured Cash Management Agreement to which any Secured Cash Management Creditor is a party, whether now in existence or hereafter arising in each case under any Secured Cash Management Agreement.         “Secured Hedging Agreement” shall mean each Interest Rate Protection Agreement and/or Other Hedging Agreements entered into by a Credit Party with a Secured Hedging Creditor provided, that, (i) such Interest Rate Protection Agreement and/or Other Hedging Agreement expressly states that (x) it constitutes a “Secured Hedging Agreement” for purposes of this Agreement and the other Credit Documents and (y) does not constitute a “Secured Hedging Agreement” (or substantially similar definition) for purposes of any other Indebtedness subject to the Intercreditor Agreement, (ii) the Company and the other parties thereto shall have delivered to the Administrative Agent a written notice specifying that such Interest Rate Protection Agreement and/or Other Hedging Agreement (x) constitutes a “Secured Hedging Agreement” for purposes of this Agreement and the other Credit Documents, (y) does not constitute a “Secured Hedging Agreement” (or substantially similar definition) for purposes of any other Indebtedness subject to the Intercreditor Agreement and (z) in the case of the Company, that                                            44  #93457508v14

 

such Interest Rate Protection Agreement and/or Other Hedging Agreement and the obligations of the Company and its Subsidiaries thereunder have been, and will be, incurred in compliance with this Agreement and (iii) on the effective date of such Interest Rate Protection Agreement and/or Other Hedging Agreement and from time to time thereafter, at the request of the Administrative Agent, the Company and the other parties thereto shall have notified the Administrative Agent in writing of the aggregate amount of exposure under such Interest Rate Protection Agreement and/or Other Hedging Agreement.         “Secured Hedging Creditor” shall mean any counterparty to an Interest Rate Protection Agreement and/or Other Hedging Agreement that is the Administrative Agent, a Lender or an affiliate of the Administrative Agent or a Lender, in each case at the time such Person enters into such Interest Rate Protection Agreement and/or Other Hedging Agreement (even if the Administrative Agent or such Lender subsequently ceases to be the Administrative Agent or a Lender, as the case may be, under this Agreement for any reason), so long as the Administrative Agent, such Lender or such affiliate participates in such Interest Rate Protection Agreement and/or Other Hedging Agreement.        “Secured Hedging Obligations” shall mean all payment obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), indebtedness and liabilities (including any interest, fees and expenses accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in the respective Secured Hedging Agreements, whether or not such interest, fees or expenses is an allowed claim in any such proceeding) owing by a Credit Party under each Secured Hedging Agreement to which any Secured Hedging Creditor is a party, whether now in existence or hereafter arising in each case under any Secured Hedging Agreement.         “Secured Leverage Ratio” shall mean, on any date of determination, the ratio of (x) Consolidated Secured Indebtedness on such date to (y) Consolidated EBITDA for the Test Period most recently ended on or prior to such date; provided, that, for purposes of any calculation of the Secured Leverage Ratio pursuant to this Agreement, Consolidated EBITDA and Indebtedness shall be determined on a Pro Forma Basis in accordance with the requirements of the definition of “Pro Forma Basis” contained herein.         “Secured Notes” shall mean the 9.250% senior secured notes due 2023, issued pursuant to the Secured Notes Indenture, as in effect on the Effective Date and as the same may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and thereof.         “Secured Notes Documents” shall mean the Secured Notes, the Secured Notes Indenture, the Secured Notes Security Documents and all other documents executed and delivered with respect to the Secured Notes or the Secured Notes Indenture, as in effect on the Effective Date and as the same may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and thereof.        “Secured Notes Indenture” shall mean the Indenture, dated as of June 10, 2016, among the Company  and CVR Finance, as issuers, the Secured Notes Trustee, and the guarantors named therein, as in effect on the Effective Date and as the same may be amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.         “Secured Notes Secured Parties” shall mean the “Secured Parties” as defined in the Notes Security Documents.         “Secured Notes Security Documents” shall mean all security agreements, pledge agreements, mortgages and other security documents, as they may be further amended, restated or modified from time                                            45  #93457508v14

 

to time, and any other documents, agreements or instruments now existing or entered into after the date hereof that create (or purport to create) Liens on any assets or properties to secure any obligations under the Secured Notes Documents.         “Secured Notes Trustee” shall mean Wilmington Trust, National Association, as trustee and collateral trustee under the Secured Notes, together with its successors and assigns in such capacity.         “Secured Parties” shall mean the Lenders, each Issuing Lender, the Swingline Lender, the Secured Cash Management Creditors and the Secured Hedging Creditors.         “Securities Account” shall mean a securities account (as that term is defined in the UCC).        “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.         “Security Agreement” shall have the meaning provided in Section 6.08.         “Security Agreement Collateral” shall mean all “Collateral” as defined in the Security Agreement.        “Security Document” shall mean and include each of the Security Agreement, each Mortgage, after the execution and delivery thereof, each Additional Security Document and each Incremental Security Document and any other related document, agreement or grant pursuant to which any Credit Party or any of their respective Subsidiaries grants, perfects or continues a security interest in favor of the Collateral Agent for the benefit of the Secured Parties.         “Settlement Date” shall have the meaning provided in Section 2.04(b)(i).         “Significant Asset Sale” shall mean any Asset Sale or series of related Assets Sales (i.e., separate assets being sold, transferred or otherwise disposed of as part of an identifiable group of assets and within a reasonably limited time period) where the aggregate consideration therefor is equal to, or in excess of, $10,000,000.         “SOFR” shall have the meaning provided in Section 2.17(e).        “Spare Parts Inventory” means spare parts capable of being used and affixed to, but not yet being use or affixed to, production machinery employed by any Borrower to create Inventory in the ordinary course of business.  Spare Parts Inventory shall not include catalysts, refractory, production chemicals or emissions credits.         “Specified Default” shall mean the occurrence of any Event of Default specified in Sections 11.01., 11.02 (solely to the extent related to the Borrowing Base Certificate), 11.03 (with respect to Sections 5.03(d), 9.01(j), 10.07 (subject to clause (b) thereof) only) and 11.05.         “Specified Permitted Liens” shall mean Liens permitted pursuant to clauses (w) and (x) of Section 10.01.        “Start Date” shall have the meaning provided in the definition of Applicable Margin.         “Stated Amount” of each Letter of Credit shall mean, at any time, the maximum amount available to be drawn thereunder in each case determined (x) as if any future automatic increases in the maximum                                            46  #93457508v14

 

amount available that are provided for in any such Letter of Credit had in fact occurred at such time and (y) without regard to whether any conditions to drawing could then be met but after giving effect to all previous drawings made thereunder.         “Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person or (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Subsidiaries of such Person (A) has more than a 50% outstanding general partner interests, member interests or other Voting Stock at the time, (B) is the sole general partner or member, or (C) if there is more than a single general partner or member, are the only managing general partners or managing members (or any combination thereof).  Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of any Credit Party. Notwithstanding the foregoing (except for the purposes of Sections 8.09, 8.10, 8.15, 8.18, 9.01(b), 9.01(c), 9.01(i), 9.05, 9.06, 9.07, 9.10, 11.06 and 13.01(c)(ii)  and the definition of Unrestricted Subsidiary contained herein), no Unrestricted Subsidiary shall be deemed to be a Subsidiary of any Credit Party or any of their other Subsidiaries for the purposes of this Agreement and the other Credit Documents.         “Subsidiary Guarantor” shall mean each Guarantor that is a Subsidiary of the Company.        “Supermajority Lenders” shall mean those Non-Affiliated Lenders and Non-Defaulting Lenders which would constitute the Required Lenders under, and as defined in, this Agreement, if the reference to “a majority” contained therein were changed to “66 2/3%”.        “Supported QFC” shall have the meaning provided in Section 13.22.        “Swingline Back-Stop Arrangements” shall have the meaning provided in Section 2.01(b).         “Swingline Expiry Date” shall mean that date which is five Business Days prior to the Revolving Commitment Termination Date.         “Swingline Lender” shall mean the Administrative Agent, in its capacity as Swingline Lender hereunder; provided, that, if the Extension is effected in accordance with Section 2.16, then on the occurrence of the Initial Revolving Commitment Termination Date, the Swingline Lender at such time shall have the right to resign as the Swingline Lender on, or on any date within twenty (20) Business Days after, the Initial Revolving Commitment Termination Date, upon not less than ten (10) days’ prior written notice thereof to the Company and the Administrative Agent and, in the event of any such resignation and upon the effectiveness thereof, the applicable Borrowers shall repay any outstanding Swingline Loans made by the respective entity so resigning and such entity shall not be required to make any further Swingline Loans hereunder.  If at any time and for any reason (including as a result of resignations as contemplated by the proviso to the preceding sentence), the Swingline Lender has resigned in such capacity in accordance with the preceding sentence, then no Person shall be the Swingline Lender hereunder obligated to make Swingline Loans unless and until (and only for so long as) a Lender reasonably satisfactory to the Administrative Agent and the Company agrees to act as the Swingline Lender hereunder.        “Swingline Loan” shall have the meaning provided in Section 2.01(b).                                            47  #93457508v14

 

      “Swingline Note” shall have the meaning provided in Section 2.05(a).         “Tax Benefit” shall have the meaning provided in Section 5.04(d).         “Taxes” shall have the meaning provided in Section 5.04(a).         “Term SOFR” shall have the meaning provided in Section 2.17(e).        “Test Period” shall mean each period of four consecutive Fiscal Quarters of the Company then last ended, in each case taken as one accounting period.         “Total Leverage Ratio” shall mean, on any date of determination, the ratio of (x) Consolidated Indebtedness on such date to (y) Consolidated EBITDA for the Test Period most recently ended on or prior to such date; provided, that, for purposes of any calculation of the Total Leverage Ratio pursuant to this Agreement, Consolidated EBITDA and Indebtedness shall be determined on a Pro Forma Basis in accordance with the requirements of the definition of “Pro Forma Basis” contained herein.        “Total Revolving Loan Commitment” shall mean, at any time, the sum of the Revolving Loan Commitments of each of the Lenders at such time.         “Total Unutilized Revolving Loan Commitment” shall mean, at any time, an amount equal to the remainder of (a) the Total Revolving Loan Commitment in effect at such time less (b) the sum of (i) the aggregate principal amount of all Revolving Loans and Swingline Loans outstanding at such time plus (ii) the aggregate amount of all Letter of Credit Outstandings at such time.         “Transaction” shall mean, collectively, (a) the execution, delivery and performance by each Credit Party of the Credit Documents to which it is a party, (b) all transactions entered into in connection with the foregoing and (c) the payment of all costs and expenses in connection therewith.        “Type” shall mean the type of Loan determined with regard to the interest option applicable thereto, i.e., whether a Base Rate Loan or a LIBOR Loan.        “UBS Account” shall have the meaning provided in Section 5.03(d).        “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the relevant jurisdiction.         “UCP” shall mean, with respect to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the time of issuance).         “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.        “UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.                                             48  #93457508v14

 

      “Unadjusted Benchmark Replacement” shall have the meaning provided in Section 2.17(e).        “Unfunded Pension Liability” of any Plan subject to Title IV of ERISA shall mean the amount, if any, by which the value of the accumulated plan benefits under such Plan determined on a plan termination basis in accordance with actuarial assumptions at such time consistent with those prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds the Fair Market Value of all plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions).        “United States” and “U.S.” shall each mean the United States of America.         “U.S. Special Resolution Regimes” shall have the meaning provided in Section 13.22.        “Unpaid Drawing” shall have the meaning provided in Section 3.05(a).         “Unrestricted” shall mean, when referring to cash, Cash Equivalents or Qualified Cash Equivalents of any Credit Party or any of their respective Subsidiaries, that such cash, Cash Equivalents or Qualified Cash Equivalents are not Restricted.        “Unrestricted Subsidiary” shall mean any Subsidiary of the Company that is designated by the Company as an Unrestricted Subsidiary hereunder by written notice to the Administrative Agent and shall include any Subsidiary of such Unrestricted Subsidiary; provided, that, the Company shall only be permitted to designate a Subsidiary as an Unrestricted Subsidiary so long as (a) no Default or Event of Default then exists or would result therefrom and the other Payment Conditions are satisfied immediately after (and, in the case of clauses (i) and (ii) of the definition thereof, immediately before) giving effect to such designation, (b) such Unrestricted Subsidiary does not own any Equity Interests in, or have any Lien on any property of, any Credit Party or any Subsidiary of any Credit Party, other than a Subsidiary of the Unrestricted Subsidiary, (c) any Indebtedness and other obligations of such Unrestricted Subsidiary are not recourse to any Credit Party and their other Subsidiaries (other than Unrestricted Subsidiaries) and to any of their respective assets, and (d) the Company has designated such Subsidiary as an Unrestricted Subsidiary also for purposes of the Secured Notes, the Refinancing Notes and any Qualified Debt to the extent that such concept is applicable to any such Indebtedness and such Indebtedness is outstanding. The Company may not designate a Borrower as an Unrestricted Subsidiary.         “Unutilized Revolving Loan Commitment” shall mean, with respect to any Lender at any time, such Lender’s Revolving Loan Commitment at such time less the sum of (a) the aggregate outstanding principal amount of all Revolving Loans made by such Lender at such time and (b) such Lender’s RL Percentage of the Letter of Credit Outstandings at such time.         “Value” means, with respect to Inventory, its market value.         “Weekly Borrowing Base Period” shall mean any period (a) commencing on the date on which (a) either (i) a Specified Default has occurred and is continuing or (ii) Excess Availability is less than the greater of (X) 15.0% of Availability and (Y) $5,000,000, in each case, for three consecutive Business Days and (b) ending on the first date thereafter on which (i) no Specified Default exists and (ii) Excess Availability has been equal to or greater than the greater of (X) 15.0% of Availability and (Y) $5,000,000, in each case, for 30 consecutive days.        “Wholly Owned Domestic Subsidiary” shall mean, as to any Person, any Domestic Subsidiary of such Person that is a Wholly Owned Subsidiary.                                             49  #93457508v14

 

      “Wholly Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of whose capital stock is at the time owned by such Person and/or one or more Wholly Owned Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Wholly Owned Subsidiaries of such Person has a 100% equity interest at such time (other than, in the case of a Foreign Subsidiary of any Credit Party with respect to the preceding clauses (i) and (ii), directors’ qualifying shares and/or other nominal amounts of shares required to be held by Persons other than the Credit Party and its Subsidiaries under applicable law).         “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule., and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.        1.02   Other Definitional Provisions.                 (a)  Unless otherwise specified therein, all terms defined in this Agreement shall have  the defined meanings when used in the other Credit Documents or any certificate or other document  made or delivered pursuant hereto or thereto.                 (b)  As used herein and in the other Credit Documents, and any certificate or other  document made or delivered pursuant hereto or thereto, (i) accounting terms not defined in Section 1.01  shall have the respective meanings given to them under GAAP, (ii) the words “include”, “includes” and  “including” shall be deemed to be followed by the phrase “without limitation”, (iii) the word “incur”  shall be construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist  (and the words “incurred” and “incurrence” shall have correlative meanings), (iv) unless the context  otherwise requires, the words “asset” and “property” shall be construed to have the same meaning and  effect and to refer to any and all tangible and intangible assets and properties, including cash, Equity  Interests, securities, revenues, accounts, leasehold interests and contract rights, (v) the word “will” shall  be construed to have the same meaning and effect as the word “shall”, and (vi) unless the context  otherwise requires, any reference herein (A) to any Person shall be construed to include such Person’s  successors and assigns and (B) to the Company or any other Credit Party shall be construed to include  the Company or such Credit Party as debtor and debtor-in-possession and any receiver or trustee for  any the Company or any other Credit Party, as the case may be, in any insolvency or liquidation  proceeding.                 (c)  The words “hereof”, “herein” and “hereunder” and words of similar import, when   used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of   this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise   specified.                 (d)  The meanings given to terms defined herein shall be equally applicable to both   the singular and plural forms of such terms.         1.03  Divisions.                                            50  #93457508v14

 

      For all purposes under the Credit Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.  SECTION 2.   Amount and Terms of Credit.         2.01  The Commitments.                 (a)  Subject to and upon the terms and conditions set forth herein, each Lender  severally agrees to make, at any time and from time to time on or after the Effective Date and prior to  the Revolving Commitment Termination Date, a revolving loan or revolving loans (each, a “Revolving  Loan” and, collectively, the “Revolving Loans”) to the Borrowers (on a joint and several basis), which  Revolving Loans (i) shall be denominated in Dollars, (ii) shall, at the option of the respective Borrower,  be incurred and maintained as, and/or converted into, Base Rate Loans or LIBOR Loans; provided, that,   except as otherwise specifically provided in Section 2.10(b), all Revolving Loans comprising the same   Borrowing shall at all times be of the same Type, (iii) may be repaid and reborrowed in accordance   with the provisions hereof, (iv) shall not be made (and shall not be required to be made) by any Lender   in any instance where the incurrence thereof (after giving effect to the use of the proceeds thereof on the   date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to this Agreement)   would cause the Individual Exposure of such Lender to exceed the amount of its Revolving Loan   Commitment at such time and (v) shall not be made (and shall not be required to be made) by any   Lender in any instance where the incurrence thereof (after giving effect to the use of the proceeds  thereof on the date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to  this Agreement) would cause (A) the Aggregate Exposure to exceed the Total Revolving Loan  Commitment as then in effect or (B) the Aggregate Exposure to exceed the Borrowing Base at such  time.                 (b)  Subject to and upon the terms and conditions set forth herein, the Swingline  Lender agrees to make, at any time and from time to time on or after the Effective Date and prior to the  Swingline Expiry Date, a revolving loan or revolving loans (each, a “Swingline Loan” and, collectively,   the “Swingline Loans”) to the Borrowers (on a joint and several basis), which Swingline Loans (i) shall   be denominated in Dollars, (ii) shall be incurred and maintained as Base Rate Loans; (iii) may be repaid   and reborrowed in accordance with the provisions hereof, (iv) shall not be made (and shall not be   required to be made) by the Swingline Lender in any instance where the incurrence thereof (after giving   effect to the use of the proceeds thereof on the date of the incurrence thereof to repay any amounts   theretofore outstanding pursuant to this Agreement) would cause (A) the Aggregate Exposure to exceed   the Total Revolving Loan Commitment as then in effect or (B) the Aggregate Exposure to exceed the   Borrowing Base at such time, and (v) shall not exceed in aggregate principal amount at any time   outstanding the Maximum Swingline Amount.  Notwithstanding anything to the contrary contained in   this Section 2.01(b), (1) the Swingline Lender shall not be obligated to make any Swingline Loans at a   time when a Lender Default exists unless the Swingline Lender has entered into arrangements   satisfactory to it and the Company to eliminate the Swingline Lender’s risk with respect to the   Defaulting Lender’s or Defaulting Lenders’ participation in such Swingline Loans (which arrangements   are hereby consented to by the Lenders), including by cash collateralizing such Defaulting Lender’s or   Defaulting Lenders’ RL Percentage of the outstanding Swingline Loans (such arrangements, the   “Swingline Back-Stop Arrangements”) and (2) the Swingline Lender shall not make any Swingline   Loan after it has received written notice from any Borrower, any other Credit Party or the Required   Lenders stating that a Default or an Event of Default exists and is continuing until such time as the                                            51  #93457508v14

 

 Swingline Lender shall have received written notice (x) of rescission of all such notices from the party  or parties originally delivering such notice or notices or (y) of the waiver of such Default or Event of  Default by the Required Lenders.                 (c)  On any Business Day, the Swingline Lender may, in its sole discretion give  notice to the Lenders that the Swingline Lender’s outstanding Swingline Loans shall be funded with  one or more Borrowings of Revolving Loans (provided, that, such notice shall be deemed to have been  automatically given upon the occurrence of a Default or an Event of Default under Section 11.05 or  upon the exercise of any of the remedies provided in the last paragraph of Section 11), in which case  one or more Borrowings of Revolving Loans constituting Base Rate Loans (each such Borrowing, a  “Mandatory Borrowing”) shall be made on the immediately succeeding Business Day by all Lenders   pro rata based on each such Lender’s RL Percentage (determined before giving effect to any   termination of the Revolving Loan Commitments pursuant to the last paragraph of Section 11) and the   proceeds thereof shall be applied directly by the Swingline Lender to repay the Swingline Lender for   such outstanding Swingline Loans.  Each Lender hereby irrevocably agrees to make Revolving Loans   upon one Business Day’s notice pursuant to each Mandatory Borrowing in the amount and in the   manner specified in the preceding sentence and on the date specified in writing by the Swingline Lender   notwithstanding (i) the amount of the Mandatory Borrowing may not comply with the Minimum   Borrowing Amount otherwise required hereunder, (ii) whether any conditions specified in Section 7 are   then satisfied, (iii) whether a Default or an Event of Default then exists, (iv) the date of such Mandatory   Borrowing, and (v) the amount of the Borrowing Base or the Total Revolving Loan Commitment at   such time.  In the event that any Mandatory Borrowing cannot for any reason be made on the date   otherwise required above (including as a result of the commencement of a proceeding under the   Bankruptcy Code with respect to any Borrower), then each Lender hereby agrees that it shall forthwith   purchase (as of the date the Mandatory Borrowing would otherwise have occurred, but adjusted for any   payments received from any Borrower on or after such date and prior to such purchase) from the   Swingline Lender such participations in the outstanding Swingline Loans as shall be necessary to cause   the Lenders to share in such Swingline Loans ratably based upon their respective RL Percentages   (determined before giving effect to any termination of the Revolving Loan Commitments pursuant to   the last paragraph of Section 11); provided, that, (A) all interest payable on the Swingline Loans shall   be for the account of the Swingline Lender until the date as of which the respective participation is   required to be purchased and, to the extent attributable to the purchased participation, shall be payable   to the participant from and after such date and (B) at the time any purchase of participations pursuant to   this sentence is actually made, the purchasing Lender shall be required to pay the Swingline Lender   interest on the principal amount of participation purchased for each day from and including the day   upon which the Mandatory Borrowing would otherwise have occurred to but excluding the date of   payment for such participation, at the overnight Federal Funds Rate for the first three days and at the   interest rate otherwise applicable to Revolving Loans maintained as Base Rate Loans hereunder for   each day thereafter.                 (d)  Notwithstanding anything to the contrary in Section 2.01(a) or elsewhere in this   Agreement, the Collateral Agent shall have the right to establish Reserves, subject to the proviso in the   definition thereof, in such amounts, and with respect to such matters, as the Collateral Agent in its   Permitted Discretion shall deem necessary or appropriate, against the Borrowing Base (which reserves   shall reduce the then existing Borrowing Base in an amount equal to such reserves).                 (e)  (i) In the event that the Borrowers are unable to comply with the Borrowing Base   limitations set forth in Section 2.01(a) or (ii) the Borrowers are unable to comply with the conditions   precedent to the making of Revolving Loans set forth in Section 7, in either case, the Lenders, subject   to the immediately succeeding proviso, hereby authorize the Administrative Agent, for the account of   the Lenders, to make Revolving Loans to the Borrowers (on a joint and several basis), in either case                                            52  #93457508v14

 

 solely in the event that the Collateral Agent in its Permitted Discretion deems necessary or desirable (A)  to preserve or protect the Collateral, or any portion thereof, (B) to enhance the likelihood of repayment  of the Obligations, or (C) to pay any other amount chargeable to the Borrowers pursuant to the terms of  this Agreement, including Expenses and Fees, which Revolving Loans may only be made as Base Rate  Loans (each, an “Agent Advance”) for a period commencing on the date the Administrative Agent first  receives a Notice of Borrowing requesting an Agent Advance until the earliest of (1) the twentieth  (20th) Business Day after such date, (2) the date the respective Borrowers are again able to comply with  the Borrowing Base limitations and the conditions precedent to the making of Revolving Loans, or  obtain an amendment or waiver with respect thereto, and (3) the date the Required Lenders instruct the  Administrative Agent to cease making Agent Advances (in each case, the “Agent Advance Period”);  provided, that, the Administrative Agent shall not make any Agent Advance to the extent that at the  time of the making of such Agent Advance, the amount of such Agent Advance (x) when added to the  aggregate outstanding amount of all other Agent Advances made to the Borrowers at such time, would  exceed 10.0 % of the Borrowing Base at such time (the “Agent Advance Amount”) or (y) when added  to the Aggregate Exposure as then in effect (immediately prior to the incurrence of such Agent  Advance), would exceed the Total Revolving Loan Commitment at such time.  Agent Advances may be  made by the Administrative Agent in its sole discretion and the Borrowers shall have no right  whatsoever to require that any Agent Advances be made.  Agent Advances will be subject to periodic  settlement with the Lenders pursuant to Section 2.04(b).                 (f)  If the Initial Revolving Commitment Termination Date shall have occurred at a  time when Extended Revolving Loan Commitments are in effect, then on the Initial Revolving  Commitment Termination Date all then outstanding Swingline Loans shall be repaid in full on such  date (and there shall be no adjustment to the participations in such Swingline Loans as a result of the  occurrence of such Initial Revolving Commitment Termination Date); provided, that, if on the  occurrence of the Initial Revolving Commitment Termination Date (after giving effect to any  repayments of Revolving Loans and any reallocation of Letter of Credit participations as contemplated  in Section 3.07), there shall exist sufficient unutilized Extended Revolving Loan Commitments so that  the respective outstanding Swingline Loans could be incurred pursuant the Extended Revolving Loan  Commitments which will remain in effect after the occurrence of the Initial Revolving Commitment  Termination Date, then there shall be an automatic adjustment on such date of the participations in such  Swingline Loans and same shall be deemed to have been incurred solely pursuant to the Extended  Revolving Loan Commitments and such Swingline Loans shall not be so required to be repaid in full on  the Initial Revolving Commitment Termination Date.        2.02   Minimum Amount of Each Borrowing.  .      The aggregate principal amount of each Borrowing of Loans of a specific Type shall not be less than the Minimum Borrowing Amount applicable thereto.  More than one Borrowing may occur on the same date, but at no time shall there be outstanding more than five Borrowings of LIBOR Loans (or such greater number of Borrowings of LIBOR Loans as may be agreed to from time to time by the Administrative Agent).         2.03  Notice of Borrowing.                 (a)  Whenever a Borrower desires to incur (x) LIBOR Loans hereunder, such  Borrower shall give the Administrative Agent at the Notice Office notice thereof, which notice must be  received by the Administrative Agent prior to 1:00 P.M. (New York City time) at least three Business  Days’ prior to the date that such LIBOR Loan is to be incurred hereunder (otherwise such notice shall  be deemed to have been given on the immediately succeeding Business Day) and (y) Base Rate Loans  hereunder (including Agent Advances, but excluding Swingline Loans and Revolving Loans made                                            53  #93457508v14

 

 pursuant to a Mandatory Borrowing), such Borrower shall give the Administrative Agent at the Notice   Office notice thereof, which notice must be received by the Administrative Agent prior to 11:00 A.M.   (New York City time) on the Business Day that such Base Rate Loan is to be incurred hereunder   (otherwise such notice shall be deemed to have been given on the immediately succeeding Business   Day).  Each such notice (each, a “Notice of Borrowing”), except as otherwise expressly provided in  Section 2.10, shall be irrevocable and shall be in writing, or by telephone promptly confirmed in  writing, in the form of Exhibit A-1, appropriately completed to specify: (i) the aggregate principal  amount of the Revolving Loans to be incurred pursuant to such Borrowing, (ii) the date of such  Borrowing (which shall be a Business Day), (iii) whether the Revolving Loans made pursuant to such  Borrowing constitute Agent Advances (it being understood that the Administrative Agent shall be under  no obligation to make such Agent Advances) and(iv) whether the Revolving Loans being incurred  pursuant to such Borrowing are to be initially maintained as Base Rate Loans or, to the extent permitted  hereunder, LIBOR Loans and, if LIBOR Loans, the initial Interest Period to be applicable thereto.  Except as provided in Section 2.04(b), the Administrative Agent shall promptly give each Lender notice  of such proposed Borrowing, of such Lender’s proportionate share thereof and of the other matters  required by the immediately preceding sentence to be specified in the Notice of Borrowing.                 (b)  (i)    Whenever a Borrower desires to incur Swingline Loans hereunder, such  Borrower shall give the Swingline Lender no later than 1:00 P.M. (New York City time) on the date  that a Swingline Loan is to be incurred, written notice or telephonic notice promptly confirmed in  writing of each Swingline Loan to be incurred hereunder.  Each such notice shall be irrevocable and  specify in each case (A) the date of Borrowing (which shall be a Business Day) and (B) the aggregate  principal amount of the Swingline Loans to be incurred pursuant to such Borrowing.                      (ii)   Mandatory Borrowings shall be made upon the notice specified in Section 2.01(c), with the respective Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of the Mandatory Borrowings as set forth in Section 2.01(c).                 (c)  Without in any way limiting the obligation of any Borrower to confirm in writing  any telephonic notice of any Borrowing or prepayment of Loans, the Administrative Agent or the  Swingline Lender, as the case may be, may act without liability upon the basis of telephonic notice of  such Borrowing or prepayment, as the case may be, believed by the Administrative Agent or the  Swingline Lender, as the case may be, in good faith to be from an Authorized Officer of such Borrower,  prior to receipt of written confirmation.  In each such case, such Borrower hereby waives the right to  dispute the Administrative Agent’s or the Swingline Lender’s record of the terms of such telephonic  notice of such Borrowing or prepayment of Loans, as the case may be, absent manifest error.        2.04   Disbursement of Funds.                 (a)  No later than 1:00 P.M. (New York City time) on the date specified in each  Notice of Borrowing (or (i) in the case of Revolving Loans that are Base Rate Loans that are to be made  on same day notice, no later than 3:00 P.M. (New York City time) on the date specified pursuant to  Section 2.03(a), (ii)in the case of Swingline Loans, no later than 4:00 P.M. (New York City time) on the  date specified in Section 2.03(b) or (iii) in the case of Mandatory Borrowings, no later than 1:00 P.M.  (New York City time) on the date specified in Section 2.01(c)), each Lender will make available its pro  rata portion (determined in accordance with Section 2.07) of each such Borrowing requested to be made  on such date (or in the case of Swingline Loans, the Swingline Lender will make available the full  amount thereof).  All such amounts will be made available in Dollars and in immediately available  funds at the Payment Office, and the Administrative Agent will make available to the relevant Borrower  at the Payment Office, or to such other account as the relevant Borrower may specify in writing prior to  the Initial Borrowing Date, the aggregate of the amounts so made available by the Lenders; provided,                                            54  #93457508v14

 

 that, if, on the date of a Borrowing of Revolving Loans (other than a Mandatory Borrowing), there are   Unpaid Drawings or Swingline Loans then outstanding, then the proceeds of such Borrowing shall be   applied, first, to the payment in full of any such Unpaid Drawings with respect to Letters of Credit,   second, to the payment in full of any such Swingline Loans, and third, to the relevant Borrower as   otherwise provided above.  Unless the Administrative Agent shall have been notified by any Lender   prior to the date of Borrowing that such Lender does not intend to make available to the Administrative   Agent such Lender’s portion of any Borrowing to be made on such date, the Administrative Agent may   assume that such Lender has made such amount available to the Administrative Agent on such date of   Borrowing and the Administrative Agent may (but shall not be obligated to), in reliance upon such   assumption, make available to the relevant Borrower a corresponding amount.  If such corresponding   amount is not in fact made available to the Administrative Agent by such Lender, the Administrative   Agent shall be entitled to recover such corresponding amount on demand from such Lender.  If such   Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand   therefor, the Administrative Agent shall promptly notify the relevant Borrower, and the relevant   Borrower shall immediately pay such corresponding amount to the Administrative Agent.  The   Administrative Agent also shall be entitled to recover on demand from such Lender or the relevant   Borrower, as the case may be, interest on such corresponding amount in respect of each day from the   date such corresponding amount was made available by the Administrative Agent to the relevant   Borrower until the date such corresponding amount is recovered by the Administrative Agent, at a rate   per annum equal to (1) if recovered from such Lender, the overnight Federal Funds Rate for the first   three days and at the interest rate otherwise applicable to such Loans for each day thereafter and (2) if   recovered from the relevant Borrower or Borrowers, the rate of interest applicable to the respective   Borrowing, as determined pursuant to Section 2.08.  Nothing in this Section 2.04 shall be deemed to   relieve any Lender from its obligation to make Loans hereunder or to prejudice any rights which any   Borrower may have against any Lender as a result of any failure by such Lender to make Loans   hereunder.                 (b)  Unless the Required Lenders have instructed the Administrative Agent to the   contrary, the Administrative Agent on behalf of the Lenders may, but shall not be obligated to, make   Revolving Loans to the Borrower that are maintained as Base Rate Loans under Section 2.01(a) without   prior notice of the proposed Borrowing to the Lenders as follows:                      (i)    The amount of each Lender’s RL Percentage of Revolving Loans shall be computed weekly (or more frequently in the Administrative Agent’s sole discretion) and shall be adjusted upward or downward on the basis of the amount of outstanding Revolving Loans as of 5:00 P.M. (New York time) on the last Business Day of each week, or such other period specified by the Administrative Agent (each such date, a “Settlement Date”).  The Lenders shall transfer to the Administrative Agent, or the Administrative Agent shall transfer to the Lenders, such amounts as are necessary so that (after giving effect to all such transfers) the amount of Revolving Loans made by each Lender shall be equal to such Lender’s RL Percentage of the aggregate amount of Revolving Loans outstanding as of such Settlement Date.  If a notice from the Administrative Agent of any such necessary transfer is received by a Lender on or prior to 12:00 Noon (New York time) on any Business Day, then such Lender shall make transfers described above in immediately available funds no later than 3:00 P.M. (New York time) on the day such notice was received; and if such notice is received by a Lender after 12:00 Noon (New York time) on any Business Day, such Lender shall make such transfers no later than 1:00 P.M. (New York time) on the next succeeding Business Day.  The obligation of each of the Lenders to transfer such funds shall be irrevocable and unconditional and without recourse to, or without representation or warranty by, the Administrative Agent.  Each of the Administrative Agent and each Lender agrees and the Lenders agree to mark their respective books and records on each Settlement Date                                             55  #93457508v14

 

to show at all times the dollar amount of their respective RL Percentage of the outstanding Revolving Loans on such date.                      (ii)   To the extent that the settlement described in preceding clause (i) shall not yet have occurred with respect to any particular Settlement Date, upon any repayment of Revolving Loans by any Borrower prior to such settlement, the Administrative Agent may apply such amounts repaid directly to the amounts that would otherwise be made available by the Administrative Agent pursuant to this Section 2.04(b).                      (iii)  Because the Administrative Agent on behalf of the Lenders may be advancing and/or may be repaid Revolving Loans prior to the time when the Lenders will actually advance and/or be repaid Revolving Loans, interest with respect to Revolving Loans shall be allocated by the Administrative Agent to each Lender and the Administrative Agent in accordance with the amount of Revolving Loans actually advanced by and repaid to each Lender and the Administrative Agent and shall accrue from and including the date such Revolving Loans are so advanced to but excluding the date such Revolving Loans are either repaid by the Borrower in accordance with the terms of this Agreement or actually settled by the Administrative Agent or the applicable Lender as described in this Section 2.04(b).         2.05  Notes.                 (a)  Each Borrower’s joint and several obligation to pay the principal of, and interest  on, the Loans made by each Lender shall be evidenced in the Register maintained by the Administrative  Agent pursuant to Section 13.15 and shall, if requested by such Lender, also be evidenced (i) in the case  of Revolving Loans, by a promissory note duly executed and delivered by each Borrower substantially  in the form of Exhibit B-1, with blanks appropriately completed in conformity herewith (each, a  “Revolving Note” and, collectively, the “Revolving Notes”), and (ii) in the case of Swingline Loans, by  a promissory note duly executed and delivered by each Borrower substantially in the form of Exhibit B-  2, with blanks appropriately completed in conformity herewith (the “Swingline Note”).                 (b)  Each Lender will note on its internal records the amount of each Loan made by it  and each payment in respect thereof and prior to any transfer of any of its Notes will record on the  reverse side thereof the outstanding principal amount of Loans evidenced thereby.  Failure to make any  such notation or any error in such notation shall not affect any Borrower’s obligations in respect of such  Loans.                 (c)  Notwithstanding anything to the contrary contained above in this Section 2.05 or   elsewhere in this Agreement, Notes shall only be delivered to Lenders which at any time specifically   request the delivery of such Notes.  No failure of any Lender to request, obtain, maintain or produce a   Note evidencing its Loans to any Borrower shall affect, or in any manner impair, the obligations of any   Borrower to pay the Loans (and all related Obligations) incurred by such Borrower which would   otherwise be evidenced thereby in accordance with the requirements of this Agreement, and shall not in   any way affect the security or guaranties therefor provided pursuant to any Credit Document.  Any   Lender which does not have a Note evidencing its outstanding Loans shall in no event be required to   make the notations otherwise described in preceding clause (b).  At any time when any Lender requests   the delivery of a Note to evidence any of its Loans, the respective Borrower shall promptly execute and   deliver to the respective Lender the requested Note in the appropriate amount or amounts to evidence   such Loans.         2.06  Conversions.                                             56  #93457508v14

 

.     Each Borrower shall have the option to convert, on any Business Day, all or a portion equal to at least the Minimum Borrowing Amount of the outstanding principal amount of Revolving Loans made pursuant to one or more Borrowings of one or more Types of Revolving Loans into a Borrowing of another Type of Revolving Loan; provided, that, (a) except as otherwise provided in Section 2.10(b), LIBOR Loans may be converted into Base Rate Loans only on the last day of an Interest Period applicable to the Revolving Loans being converted and no such partial conversion of LIBOR Loans shall reduce the outstanding principal amount of such LIBOR Loans made pursuant to a single Borrowing to less than the Minimum Borrowing Amount applicable thereto, (b) unless the Required Lenders otherwise agree, Base Rate Loans may only be converted into LIBOR Loans if no Event of Default is in existence on the date of the conversion, and (c) no conversion pursuant to this Section 2.06 shall result in a greater number of Borrowings of LIBOR Loans than is permitted under Section 2.02.  Each such conversion shall be effected by the respective Borrower by giving the Administrative Agent at the Notice Office notice thereof, which notice must be received by the Administrative Agent prior to 1:00 P.M. (New York City time) at least (i) in the case of conversions of Base Rate Loans into LIBOR Loans, three Business Days’ prior notice and (ii) in the case of conversions of LIBOR Loans into Base Rate Loans, one Business Day’s prior notice (each, a “Notice of Conversion/Continuation”), in each case in the form of Exhibit A- 2, appropriately completed to specify the Revolving Loans to be so converted, the Borrowing or Borrowings pursuant to which such Revolving Loans were incurred and, if to be converted into LIBOR Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall give each Lender prompt notice of any such proposed conversion affecting any of its Revolving Loans.        2.07   Pro Rata Borrowings.  .     All Borrowings of Revolving Loans under this Agreement shall be incurred from the Lenders pro rata on the basis of their Revolving Loan Commitments; provided, that, all Mandatory Borrowings shall be incurred from the Lenders pro rata on the basis of their RL Percentages.  It is understood that no Lender shall be responsible for any default by any other Lender of its obligation to make Loans hereunder and that each Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.        2.08   Interest.                 (a)  Each Borrower jointly and severally agrees to pay interest in respect of the  unpaid principal amount of each Base Rate Loan from the date of Borrowing thereof until the earlier of  (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Base Rate  Loan to a LIBOR Loan pursuant to Section 2.06 or 2.09, as applicable, at a rate per annum which shall  be equal to the sum of the relevant Applicable Margin plus the Base Rate, each as in effect from time to  time.                 (b)  Each Borrower jointly and severally agrees to pay interest in respect of the  unpaid principal amount of each LIBOR Loan from the date of Borrowing thereof until the earlier of (i)  the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such LIBOR Loan  to a Base Rate Loan pursuant to Section 2.06, 2.09 or 2.10, as applicable, at a rate per annum which  shall, during each Interest Period applicable thereto, be equal to the sum of the relevant Applicable  Margin as in effect from time to time during such Interest Period plus the LIBO Rate for such Interest  Period.                 (c)  (i)  Overdue principal and, to the extent permitted by law, overdue interest in  respect of each Loan shall, in each case, bear interest at a rate per annum equal to the rate which is 2%  in excess of the rate then borne by such Loans, and (ii) all other overdue amounts payable hereunder  and under any other Credit Document shall bear interest at a rate per annum equal to the rate which is                                            57  #93457508v14

 

 2% in excess of the rate applicable to Base Rate Loans from time to time.  Interest that accrues under   this Section 2.08(c) shall be payable on demand.                 (d)  Accrued (and theretofore unpaid) interest shall be payable (i) in respect of each   Base Rate Loan, (A) quarterly in arrears on each Quarterly Payment Date, (B) on the date of any   repayment or prepayment in full of all outstanding Base Rate Loans, and (C) at maturity (whether by   acceleration or otherwise) and, after such maturity, on demand, and (ii) in respect of each LIBOR Loan,   (A) on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in   excess of three months, on each date occurring at three month intervals after the first day of such   Interest Period, and (B) on the date of any repayment or prepayment (on the amount repaid or prepaid),   at maturity (whether by acceleration or otherwise) and, after such maturity, on demand.                 (e)  Upon each Interest Determination Date, the Administrative Agent shall  determine the LIBO Rate for each Interest Period applicable to the respective LIBOR Loans and shall  promptly notify the Company and the Lenders thereof.  Each such determination shall, absent manifest  error, be final and conclusive and binding on all parties hereto.        2.09   Interest Periods.  .     At the time any Borrower gives any Notice of Borrowing or Notice of Conversion/Continuation in respect of the making of, or conversion into, any LIBOR Loan (in the case of the initial Interest Period applicable thereto) or prior to 1:00 P.M. (New York City time) on the third Business Day prior to the expiration of an Interest Period applicable to such LIBOR Loan (in the case of any subsequent Interest Period), such Borrower shall have the right to elect the interest period (each, an “Interest Period”) applicable to such LIBOR Loan, which Interest Period shall, at the option of the Borrower, be a one, two, three or six month period; provided, that, (in each case):  (a) all LIBOR Loans comprising a Borrowing shall at all times have the same Interest Period; (b) the initial Interest Period for any LIBOR Loan shall commence on the date of Borrowing of such LIBOR Loan (including the date of any conversion thereto from a Base Rate Loan) and each Interest Period occurring thereafter in respect of such LIBOR Loan shall commence on the day on which the next preceding Interest Period applicable thereto expires; (c) if any Interest Period for a LIBOR Loan begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month; (d) if any Interest Period for a LIBOR Loan would otherwise expire on a day which is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided, however, that if any Interest Period for a LIBOR Loan would otherwise expire on a day which is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; (e) unless the Required Lenders otherwise agree, no Interest Period may be selected at any time when an Event of Default is then in existence; and (f) no Interest Period in respect of any Borrowing shall be selected which extends beyond the Revolving Commitment Termination Date.  If by 1:00 P.M. (New York City time) on the third Business Day prior to the expiration of any Interest Period applicable to a Borrowing of LIBOR Loans, any Borrower has failed to elect, or is not permitted to elect, a new Interest Period to be applicable to such LIBOR Loans as provided above, such Borrower shall be deemed to have elected to convert such LIBOR Loans into Base Rate Loans effective as of the expiration date of such current Interest Period.         2.10  Increased Costs, Illegality, etc.                 (a)  In the event that any Lender shall have determined (which determination shall,  absent manifest error, be final and conclusive and binding upon all parties hereto but, with respect to                                             58  #93457508v14

 

 clause (i) below, may be made only by the Administrative Agent) and shall have certified to the   Company in writing that it has made such determination with respect to similarly-situated borrowers:                      (i)    on any Interest Determination Date that, by reason of any changes arising after the date of this Agreement affecting the London interbank market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of LIBO Rate; or                      (ii)   at any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any Loan because of (A) any change since the Effective Date in any applicable law or governmental rule, regulation, order, guideline or request (whether or not having the force of law) or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, order, guideline or request, such as, but not limited to:  (1) a change in the basis of taxation of payment to any Lender of the principal of or interest on the Loans or the Notes or any other amounts payable hereunder (but excluding, for these purposes, any Taxes payable or subject to indemnification or reimbursement under Section 5.04 and any Excluded Taxes) or (2) a change in official reserve requirements, but, in all events, excluding reserves required under Regulation D to the extent included in the computation of the LIBO Rate and/or (B) other circumstances arising since the Effective Date affecting such Lender, the London interbank market or the position of such Lender in such market (including that the LIBO Rate with respect to such LIBOR Loan does not adequately and fairly reflect the cost to such Lender of funding such LIBOR Loan); or                      (iii)  at any time, that the making or continuance of any LIBOR Loan has been made (A) unlawful by any law or governmental rule, regulation or order, (B) impossible by compliance by any Lender in good faith with any governmental request (whether or not having force of law) or (C) impracticable as a result of a contingency occurring after the Effective Date which materially and adversely affects the London interbank market;  then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i) above) shall promptly give notice (by telephone promptly confirmed in writing) to the Company and, except in the case of clause (i) above, to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause (i) above, LIBOR Loans shall no longer be available until such time as the Administrative Agent notifies the Company and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing or Notice of Conversion/Continuation given by any Borrower with respect to LIBOR Loans which have not yet been incurred (including by way of conversion) shall be deemed rescinded by such Borrower, (y) in the case of clause (ii) above, the Borrowers jointly and severally agree to pay to such Lender, upon such Lender’s written request therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender in its sole discretion shall determine) as shall be required to compensate such Lender for such increased costs or reductions in amounts received or receivable hereunder (a written notice as to the additional amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the Company by such Lender shall, absent manifest error, be final and conclusive and binding on all the parties hereto) and (z) in the case of clause (iii) above, the respective Borrower or Borrowers shall take one of the actions specified in Section 2.10(b) as promptly as possible and, in any event, within the time period required by law.                 (b)  At any time that any LIBOR Loan is affected by the circumstances described in  Section 2.10(a)(iii), the affected Borrower shall, either (i) if the affected LIBOR Loan is then being  made initially or pursuant to a conversion, cancel such Borrowing by giving the Administrative Agent  telephonic notice (confirmed in writing) on the same date that such Borrower was notified by the                                            59  #93457508v14

 

 affected Lender or the Administrative Agent pursuant to Section 2.10(a)(iii) or (ii) if the affected  LIBOR Loan is then outstanding, upon at least three Business Days’ written notice to the  Administrative Agent, require the affected Lender to convert such LIBOR Loan into a Base Rate Loan;  provided, that, if more than one Lender is affected at any time, then all affected Lenders must be treated   the same pursuant to this Section 2.10(b).                 (c)  If any Lender determines that after the Effective Date the introduction of or any   change in any applicable law or governmental rule, regulation, order, guideline, directive or request   (whether or not having the force of law) concerning liquidity, capital adequacy, or any change in   interpretation or administration thereof by the NAIC or any Governmental Authority, central bank or   comparable agency, will have the effect of increasing the amount of capital required or expected to be   maintained by such Lender or any corporation controlling such Lender based on the existence of such   Lender’s Revolving Loan Commitment hereunder or its obligations hereunder, then the Borrowers   jointly and severally agree to pay to such Lender, upon its written demand therefor, such additional   amounts as shall be required to compensate such Lender or such other corporation for the increased cost   to such Lender or such other corporation or the reduction in the rate of return to such Lender or such   other corporation as a result of such increase of capital or liquidity.  In determining such additional   amounts, each Lender will act reasonably and in good faith and will use averaging and attribution   methods which are reasonable; provided, that, such Lender’s determination of compensation owing   under this Section 2.10(c) shall, absent manifest error, be final and conclusive and binding on all the   parties hereto.  Each Lender, upon determining that any additional amounts will be payable pursuant to   this Section 2.10(c), will give prompt written notice thereof to the Company, which notice shall show in   reasonable detail the basis for calculation of such additional amounts.          (d)         Notwithstanding anything herein to the contrary, (A) the Dodd-Frank Wall Street   Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or   issued in connection therewith and (B) all requests, rules, guidelines or directives promulgated by the   Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or   similar authority) or the United States or foreign regulatory authorities, in each case pursuant to The   Basel III Accord published by The Basel Committee on Banking Supervision, shall in each case be   deemed to be a change in law or regulation after the date hereof (including this Section 2.10 and   Section 3.06).        2.11   Compensation.  .     Each Borrower jointly and severally agrees to compensate each Lender, upon its written request (which request shall set forth in reasonable detail the basis for requesting such compensation), for all losses, expenses and liabilities (including any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its LIBOR Loans but excluding loss of anticipated profits) which such Lender may sustain:  (a) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing of, or conversion from or into, LIBOR Loans does not occur on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn by the respective Borrower or Borrowers or deemed withdrawn pursuant to Section 2.10(a)); (b) if any prepayment or repayment (including any prepayment or repayment made pursuant to Section 5.01, Section 5.02 or as a result of an acceleration of the Loans pursuant to Section 11) or conversion of any of its LIBOR Loans occurs on a date which is not the last day of an Interest Period with respect thereto; (c) if any prepayment of any of its LIBOR Loans is not made on any date specified in a notice of prepayment given by any Borrower; or (d) as a consequence of (i) any other default by any Borrower to repay LIBOR Loans when required by the terms of this Agreement or any Note held by such Lender or (ii) any election made pursuant to Section 2.10(b).                                            60  #93457508v14

 

      2.12   Change of Lending Office.  .      Each Lender and each Issuing Lender agrees that on the occurrence of any event giving rise to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(c), Section 3.06 or Section 5.04 with respect to such Lender or such Issuing Lender, it will, if requested by the Company, use reasonable efforts (subject to overall policy considerations of such Lender or such Issuing Lender) to designate another lending office for any Loans or Letters of Credit affected by such event; provided, that, such designation is made on such terms that such Lender or such Issuing Lender and its lending office suffer no legal, regulatory or unreimbursed economic disadvantage, with the object of avoiding the consequence of the event giving rise to the operation of such Section.  Nothing in this Section 2.12 shall affect or postpone any of the obligations of any Borrower or the right of any Lender provided in Sections 2.10, 3.06 and 5.04.        2.13   Replacement of Lenders.                 (a)  (i) If any Lender becomes a Defaulting Lender, if any Lender or Issuing Lender  requests payment of additional amounts under Section 2.10(a)(ii) or (iii), Section 2.10(c), Section 3.06  or Section 5.04 or if any Borrower is required to pay any additional amount to any Lender, any Issuing  Lender or any Governmental Authority for the account of any Lender or any Issuing Lender pursuant to  such Sections, (ii) in the case of a refusal by a Lender to consent to a proposed change, waiver,  discharge or termination with respect to this Agreement which has been approved by the Required  Lenders as (and to the extent) provided in Section 13.12(b) or (iii) in the case of rejection (or deemed  rejection) by a Lender of the Extension under Section 2.16(a) which Extension has been accepted under  Section 2.16(a) by the Required Lenders, the Company shall have the right, in accordance with Section  13.04(b), if no Default or Event of Default would exist after giving effect to such replacement, to  replace such Lender or Issuing Lender (the “Replaced Lender”) with one or more other Eligible  Transferees, none of whom shall constitute a Defaulting Lender at the time of such replacement  (collectively, the “Replacement Lender”) and each of which shall be reasonably acceptable to the   Administrative Agent and each Issuing Lender; provided, that:                      (i)    at the time of any replacement pursuant to this Section 2.13, the Replacement Lender shall enter into one or more Assignment and Assumption Agreements pursuant to Section 13.04(b) (and with all fees payable pursuant to said Section 13.04(b) to be paid by the Borrowers) pursuant to which the Replacement Lender shall acquire the entire Revolving Loan Commitment and all outstanding Revolving Loans of, and all participations in Letters of Credit by, the Replaced Lender and, in connection therewith, shall pay to (A) the Replaced Lender in respect thereof an amount equal to the sum of (1) an amount equal to the principal of, and all accrued interest on, all outstanding Revolving Loans of the respective Replaced Lender, (2) an amount equal to all Unpaid Drawings that have been funded by (and not reimbursed to) such Replaced Lender, together with all then unpaid interest with respect thereto at such time and (3) an amount equal to all accrued, but theretofore unpaid, Fees owing to the Replaced Lender pursuant to Section 4.01, (B) each Issuing Lender an amount equal to such Replaced Lender’s RL Percentage of any Unpaid Drawing relating to Letters of Credit issued by such Issuing Lender (which at such time remains an Unpaid Drawing) to the extent such amount was not theretofore funded by such Replaced Lender and (C) the Swingline Lender an amount equal to such Replaced Lender’s RL Percentage of any Mandatory Borrowing to the extent such amount was not theretofore funded by such Replaced Lender to the Swingline Lender; and (D) all obligations of the Borrowers then owing to the Replaced Lender (other than those specifically described in clause (A) above in respect of which the assignment purchase price has been, or is concurrently being, paid, but including all amounts, if any, owing under Section 2.11) shall be paid in full to such Replaced Lender concurrently with such replacement.                                             61  #93457508v14

 

               (b)  Upon receipt by the Replaced Lender of all amounts required to be paid to it  pursuant to this Section 2.13, the Administrative Agent shall be entitled (but not obligated) and is  authorized (which authorization is coupled with an interest) to execute an Assignment and Assumption  Agreement on behalf of such Replaced Lender, and any such Assignment and Assumption Agreement  so executed by the Administrative Agent and the Replacement Lender shall be effective for purposes of  this Section 2.13 and Section 13.04.  Upon the execution of the respective Assignment and Assumption  Agreement, the payment of amounts referred to in clauses (A) and (B) above, recordation of the  assignment on the Register by the Administrative Agent pursuant to Section 13.15 and, if so requested  by the Replacement Lender, delivery to the Replacement Lender of the appropriate Note or Notes  executed by the relevant Borrowers, (i) the Replacement Lender shall become a Lender hereunder and  the Replaced Lender shall cease to constitute a Lender hereunder, except with respect to  indemnification provisions under this Agreement (including Sections 2.10, 2.11, 3.06, 5.04, 12.06,  13.01 and 13.06), which shall survive as to such Replaced Lender and (ii) the RL Percentages of the  Lenders shall be automatically adjusted at such time to give effect to such replacement.        2.14   Company as Agent for Borrowers.  .     Each Borrower hereby irrevocably appoints the Company as its agent and attorney-in-fact for all purposes under this Agreement and each other Credit Document, which appointment shall remain in full force and effect unless and until the Administrative Agent shall have received prior written notice signed by the respective appointing Borrower that such appointment has been revoked.  Each Borrower hereby irrevocably appoints and authorizes the Company (a) to provide the Administrative Agent with all notices with respect to Loans and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement or any other Credit Document and (b) to take such action as the Company deems appropriate on its behalf to obtain Loans and Letters of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement and the other Credit Documents.  It is understood that the handling of the Credit Account and the Collateral of the Borrowers in a combined fashion, as more fully set forth herein, is done solely as an accommodation to the Borrowers in order to utilize the collective borrowing powers of the Borrowers in the most efficient and economical manner and at their request, and that the Administrative Agent, each Issuing Lender and each Lender shall not incur liability to any Borrower as a result hereof.  Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Credit Account and the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the continued successful performance of the consolidated group.  To induce the Administrative Agent, each Issuing Lender and each Lender to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify and hold harmless the Administrative Agent, each Issuing Lender and each Lender against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses, or disbursements of whatsoever kind or nature made against the Administrative Agent, any Issuing Lender or any Lender by any Borrower or by any third party whosoever, arising from or incurred by reason of (i) the handling of the Credit Account and Collateral of the Borrowers as herein provided, (ii) the Administrative Agent’s, the Issuing Lenders’ or the Lenders’ relying on any instructions of the Company, or (iii) any other action taken by the Lenders hereunder or under the other Credit Documents; provided, that, no Borrower shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses, or disbursements resulting from (A) the gross negligence or willful misconduct of the Administrative Agent, such Issuing Lender, such Lender or the Collateral Agent, as the case may be (as determined by a court of competent jurisdiction in a final and non- appealable decision), and (B) any disputes solely among the Administrative Agent, any Issuing Lender and/or any Lender (other than  (1) any disputes relating to any act or omission of any Credit Party or its Affiliates and (2) any claim against the Administrative Agent, the Collateral Agent or any Issuing Lender                                             62  #93457508v14

 

in its capacity or in fulfilling such roles under or pursuant to this Agreement and the other Credit Documents).         2.15  Incremental Commitments.                 (a)  The Borrowers shall have the right, without requiring the consent of the  Administrative Agent (except as otherwise provided in this Section 2.15) or the Lenders (except for the  Issuing Lenders as provided below), to request at any time and from time to time after the Effective  Date and prior to the Revolving Commitment Termination Date that one or more Lenders (and/or one  or more other Persons which are Eligible Transferees and which will become Lenders) provide  Incremental Commitments and, subject to the applicable terms and conditions contained in this  Agreement and the relevant Incremental Commitment Agreement, make Revolving Loans and  participate in Letters of Credit and Swingline Loans pursuant thereto; provided, that, (i) no Lender shall  be obligated to provide an Incremental Commitment, and until such time, if any, as such Lender has  agreed in its sole discretion to provide an Incremental Commitment and has executed and delivered to  the Administrative Agent, the Company and the other Borrowers an Incremental Commitment  Agreement as provided in clause (b) of this Section 2.15, such Lender shall not be obligated to fund any  Revolving Loans in excess of its Revolving Loan Commitment (if any) or participate in any Letters of  Credit or Swingline Loans in excess of its RL Percentage, in each case, as in effect prior to giving effect  to such Incremental Commitment provided pursuant to this Section 2.15; provided, that, the Lenders   shall have at least 10 Business Days following the Borrowers’ request for Incremental Commitments to   decide whether or not to provide any such Incremental Commitments (and, to the extent that any such   Lender fails to respond within such 10 Business Day period, such Lender shall be deemed to have   rejected to provide an Incremental Commitment), (ii) any Lender (including any Person which is an   Eligible Transferee who will become a Lender) may so provide an Incremental Commitment without   the consent of the Administrative Agent or any other Lender; provided, that, any Person that is not a   Lender prior to the effectiveness of its Incremental Commitment shall require the consent of the   Administrative Agent, the Swingline Lender and each Issuing Lender (each of which consents shall not   be unreasonably withheld) to provide an Incremental Commitment pursuant to this Section 2.15, (iii)   the aggregate amount of each request (and provision therefor) for Incremental Commitments shall be in   a minimum aggregate amount for all Lenders which provide an Incremental Commitment pursuant to a   given Incremental Commitment Agreement pursuant to this Section 2.15 (including Persons who are   Eligible Transferees and will become Lenders) of at least $5,000,000 (or such lesser amount that is   acceptable to the Administrative Agent), (iv) the aggregate amount of all Incremental Commitments   permitted to be provided pursuant to this Section 2.15 shall not exceed in the aggregate $25,000,000,   (v) the Borrowers shall not increase the Total Revolving Loan Commitment pursuant to this Section   2.15 more than five times, (vi) all Revolving Loans incurred pursuant to an Incremental Commitment   (and all interest, fees and other amounts payable thereon) shall be Obligations under this Agreement   and the other applicable Credit Documents and shall be secured by the relevant Security Documents,   and guaranteed under the Guaranty, on a pari passu basis with all other Obligations secured by each   relevant Security Document and guaranteed under the Guaranty, and (vii) each Lender (including any   Person which is an Eligible Transferee who will become a Lender) agreeing to provide an Incremental   Commitment pursuant to an Incremental Commitment Agreement shall, subject to the satisfaction of the   relevant conditions set forth in this Agreement, participate in Swingline Loans and Letters of Credit   pursuant to Sections 2.01(b) and 3.04, respectively, and make Revolving Loans as provided in Section   2.01(a) on a pro rata basis and such Revolving Loans shall constitute Revolving Loans for all purposes   of this Agreement and the other applicable Credit Documents.                 (b)  At the time of the provision of Incremental Commitments pursuant to this   Section 2.15, (i) the Credit Parties, the Administrative Agent and each such Lender or other Eligible   Transferee which agrees to provide an Incremental Commitment (each, an “Incremental Lender”) shall                                            63  #93457508v14

 

 execute and deliver to the Borrowers and the Administrative Agent an Incremental Commitment  Agreement, appropriately completed (with the effectiveness of the Incremental Commitment provided  therein to occur on the date set forth in such Incremental Commitment Agreement, which date in any  event shall be no earlier than the date on which (A)all fees required to be paid in connection therewith  at the time of such effectiveness shall have been paid, (B) all Incremental Commitment Requirements  have been satisfied, (C)all conditions set forth in this Section 2.15 shall have been satisfied and ((D) all  other conditions precedent that may be set forth in such Incremental Commitment Agreement shall have  been satisfied) and (ii) the Credit Parties and the Collateral Agent and each Incremental Lender (as  applicable) shall execute and deliver to the Administrative Agent such additional Security Documents  and/or amendments to the Security Documents which are necessary to ensure that all Loans incurred  pursuant to the Incremental Commitments and any Additional Margin are secured by each relevant  Security Document (the “Incremental Security Documents”).  The Administrative Agent shall promptly  notify each Lender as to the effectiveness of each Incremental Commitment Agreement and, at such  time, Schedule 1.01(a) shall be deemed modified to reflect the Incremental Commitments of such  Incremental Lenders.                 (c)  It is understood and agreed that the Incremental Commitments provided by an  Incremental Lender or Incremental Lenders, as the case may be, pursuant to each Incremental  Commitment Agreement shall constitute part of, be added to, and have the same terms and conditions  as, the Total Revolving Loan Commitment and each Incremental Lender shall constitute a Lender for  all purposes of this Agreement and each other applicable Credit Document.                 (d)  At the time of any provision of Incremental Commitments pursuant to this  Section 2.15, each Borrower shall, in coordination with the Administrative Agent, repay outstanding  Revolving Loans of certain of the Lenders, and incur additional Revolving Loans from certain other  Lenders (including the Incremental Lenders), in each case to the extent necessary so that all of the  Lenders participate in each outstanding Borrowing of Revolving Loans pro rata on the basis of their  respective Revolving Loan Commitments (after giving effect to any increase in the Total Revolving  Loan Commitment pursuant to this Section 2.15) and with the Borrowers being obligated to pay to the  respective Lenders any costs of the type referred to in Section 2.11 in connection with any such  repayment and/or Borrowing.                 (e)  At the time of any provision of Incremental Commitments pursuant to this  Section 2.15, all dollar thresholds included in any determination made with respect to Excess  Availability shall be increased automatically in an amount equal to the percentage by which the  Incremental Commitments increase the Total Revolving Loan Commitments.        2.16   Extensions of Loans and Commitments.               (a)    Notwithstanding anything to the contrary in this Agreement, subject to the terms of this Section 2.16, the Borrowers may extend the maturity date, and otherwise modify the terms of the Total Revolving Loan Commitment, or any portion thereof (including by increasing the interest rate or fees payable in respect of any Loans and/or Revolving Loan Commitments or any portion thereof (and related outstandings) (the “Extension”) pursuant to a written offer (the “Extension Offer”) made by the Company to all Lenders, in each case on a pro rata basis (based on the aggregate outstanding principal amount of the respective outstanding Revolving Loans and unfunded Revolving Loan Commitments) and on the same terms to each such Lender.  In connection with the Extension, the Company will provide notification to the Administrative Agent (for distribution to the Lenders).  In connection with the Extension, each Lender, acting in its sole and individual discretion, wishing to participate in the Extension shall, prior to the date (the “Notice Date”) that is 30 days after delivery of notice by the Administrative Agent to such Lender, provide the Administrative Agent with a written notice thereof in a                                            64  #93457508v14

 

form reasonably satisfactory to the Administrative Agent.  Any Lender that does not respond to the Extension Offer by the Notice Date shall be deemed to have rejected such Extension.  The Administrative Agent shall promptly notify the Company of each Lender’s determination under this Section 2.16(a).  The election of any Lender to agree to the Extension shall not obligate any other Lender to so agree.  After giving effect to the Extension, the Revolving Loan Commitments so extended shall cease to be a part of the tranche of the Revolving Loan Commitments they were a part of immediately prior to the Extension and shall be a new tranche of Extended Revolving Loan Commitments hereunder.               (b)    The Company shall have the right to replace each Lender that shall have rejected (or be deemed to have rejected) the Extension under Section 2.16(a) with, and add as “Lenders” under this Agreement in place thereof, one or more Replacement Lenders as provided in Section 2.13; provided, that, each of such Replacement Lenders shall enter into an Assignment and Assumption Agreement pursuant to which such Replacement Lender shall, effective as of a closing date selected by the Administrative Agent in consultation with the Company (which shall occur no later than 30 days following the Notice Date and shall occur on the same date as the effectiveness of the Extension as to the Lenders which have consented thereto pursuant to Section 2.16(a)), undertake the Revolving Loan Commitment of such Replaced Lender (and, if any such Replacement Lender is already a Lender, its Revolving Loan Commitment shall be in addition to such Lender’s Revolving Loan Commitment hereunder on such date).               (c)    The Extension shall be subject to the following:  (i) no Default or Event of Default shall have occurred and be continuing at the time any offering document in respect of the Extension Offer is delivered to the Lenders and at the time of the Extension; (ii) except as to interest rates, utilization fees, unused fees and final maturity, the Revolving Loan Commitment of any Lender extended pursuant to the Extension (the “Extended Revolving Loan Commitment”), and the related outstandings, shall be a Revolving Loan Commitment (or related outstandings, as the case may be) with the same terms as the original Revolving Loan Commitments (and related outstandings); provided, that, subject to the provisions of Sections 3.07 and 2.01(f) to the extent dealing with Swingline Loans and Letters of Credit which mature or expire after the Initial Revolving Commitment Termination Date, all Swingline Loans and Letters of Credit shall be participated in on a pro rata basis by all Lenders with Revolving Loan Commitments and/or Extended Revolving Loan Commitments in accordance with their RL Percentages (and except as provided in Sections 3.07 and 2.01(f), without giving effect to changes thereto on the Initial Revolving Commitment Termination Date with respect to Swingline Loans and Letters of Credit theretofore incurred or issued) and all borrowings under Revolving Loan Commitments and Extended Revolving Loan Commitments and repayments thereunder shall be made on a pro rata basis (except for (x) payments of interest and fees at different rates on Extended Revolving Loan Commitments (and related outstandings) and (y) repayments required upon any Revolving Commitment Termination Date of any tranche of Revolving Loan Commitments or Extended Revolving Loan Commitments); (iii) if the aggregate principal amount of Revolving Loan Commitments in respect of which Lenders shall have accepted the Extension Offer shall exceed the maximum aggregate principal amount of Revolving Loan Commitments offered to be extended by the Company pursuant to the Extension Offer, then the Revolving Loan Commitments of such Lenders shall be extended ratably up to such maximum amount based on the respective principal amounts (but not to exceed actual holdings of record) with respect to which such Lenders have accepted the Extension Offer; (iv) all documentation in respect of the Extension shall be consistent with the foregoing, and all written communications by the Borrowers generally directed to the Lenders in connection therewith shall be in form and substance consistent with the foregoing and otherwise reasonably satisfactory to the Administrative Agent; (v) the Minimum Extension Condition shall be satisfied; and (vi) the Extension shall not become effective unless, on the proposed effective date of the Extension, (x) the Company shall deliver to the Administrative Agent a certificate of an Authorized Officer of each Credit Party dated the applicable date of the Extension and executed by an Authorized Officer of such Credit Party certifying and attaching the resolutions adopted by such Credit                                            65  #93457508v14

 

Party approving or consenting to such Extension and (y) the conditions set forth in Section 7 shall be satisfied (with all references in such Section to any Credit Event being deemed to be references to the Extension on the applicable date of the Extension) and the Administrative Agent shall have received a certificate to that effect dated the applicable date of the Extension and executed by an Authorized Officer of the Company.               (d)    With respect to the Extension consummated by the Borrowers pursuant to this Section 2.16, (i) the Extension shall not constitute voluntary or mandatory payments or prepayments for purposes of Sections 5.01, 5.02, 5.03, 13.02 or 13.06, (ii) the Extension Offer shall contain a condition (a “Minimum Extension Condition”) to consummating the Extension that at least 50% of the aggregate amount of the Revolving Loan Commitments in effect immediately prior to the Initial Revolving Commitment Termination Date (unless another amount is agreed to by the Administrative Agent) shall be in effect immediately following the Initial Revolving Commitment Termination Date, (iii) if the amount extended is less than the Maximum Letter of Credit Amount, the Maximum Letter of Credit Amount shall be reduced upon the date that is five (5) Business Days prior to the Initial Revolving Commitment Termination Date (to the extent needed so that the Maximum Letter of Credit Amount does not exceed the aggregate Revolving Loan Commitments which would be in effect after the Initial Revolving Commitment Termination Date), and, if applicable, the Borrowers shall cash collateralize obligations under any issued Letters of Credit in an amount equal to 105% of the Stated Amount of such Letters of Credit, and (iv) if the amount extended is less than the Maximum Swingline Amount, the Maximum Swingline Amount shall be reduced upon the date that is five (5) Business Days prior to the Initial Revolving Commitment Termination Date (to the extent needed so that the Maximum Swingline Amount does not exceed the aggregate Revolving Loan Commitments which would be in effect after the Initial Revolving Commitment Termination Date), and, if applicable, the Borrowers shall prepay any outstanding Swingline Loans.  The Administrative Agent and the Lenders hereby consent to the Extension and the other transactions contemplated by this Section 2.16 (including, for the avoidance of doubt, payment of any interest or fees in respect of any Extended Revolving Loan Commitments on such terms as may be set forth in the Extension Offer) and hereby waive the requirements of any provision of this Agreement (including Sections 5.01, 5.02, 5.03, 13.02 or 13.06) or any other Credit Document that may otherwise prohibit the Extension or any other transaction contemplated by this Section 2.16; provided, that, such consent shall not be deemed to be an acceptance of the Extension Offer.               (e)    The Lenders hereby irrevocably authorize the Administrative Agent to enter into amendments to this Agreement and the other Credit Documents with the Credit Parties as may be necessary in order establish new tranches in respect of Revolving Loan Commitments so extended and such technical amendments as may be necessary in connection with the establishment of such new tranches, in each case on terms consistent with this Section 2.16.  Without limiting the foregoing, in connection with the Extension, the respective parties shall (at the expense of the Credit Parties) amend (and the Administrative Agent is hereby authorized to amend) any Mortgage that has a maturity date prior to the Extended Revolving Commitment Termination Date so that such maturity date is extended to the Extended Revolving Commitment Termination Date (or such later date as may be advised by local counsel to the Administrative Agent).               (f)    In connection with the Extension, the Company shall provide the Administrative Agent at least ten (10) Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior written notice thereof, and shall agree to such procedures, if any, as may be reasonably established by, or reasonably acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Section 2.16.        2.17   Effect of Benchmark Transition Effect.                                            66  #93457508v14

 

             (a)    Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Credit Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Company may amend this Agreement to replace the LIBO Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Company so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of the LIBO Rate with a Benchmark Replacement pursuant to this Section 2.17 will occur prior to the applicable Benchmark Transition Start Date.               (b)    Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Credit Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.               (c)    Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Company and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 2.17 including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.17.               (d)    Benchmark Unavailability Period. Upon the Company’s receipt of notice of the commencement of a Benchmark Unavailability Period, any applicable Borrower may revoke any request for a LIBOR Loan, conversion to or continuation of LIBOR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, such Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period, the component of the Base Rate based upon the LIBO Rate will not be used in any determination of the Base Rate.               (e)    Certain Defined Terms. As used in this Section 2.17:        “Benchmark Replacement” shall mean the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Company giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the LIBO Rate for U.S. dollar- denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than 0.50%, the Benchmark Replacement will be deemed to be 0.50% for the purposes of this Agreement; provided, further, notwithstanding anything herein to the contrary, the Benchmark Replacement and any amendments pursuant to this                                            67  #93457508v14

 

Section 2.17 shall comply with the terms of Proposed Treasury Regulations § 1.1001-6 (or any successor United States Treasury Regulations or other official Internal Revenue Service guidance promulgated that supersedes such Proposed Treasury Regulations), as reasonably determined by the Company and the Administrative Agent.       “Benchmark Replacement Adjustment” shall mean, with respect to any replacement of the LIBO Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Company giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBO Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBO Rate with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.       “Benchmark Replacement Conforming Changes” shall mean, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).        “Benchmark Replacement Date” shall mean the earlier to occur of the following events with  respect to the LIBO Rate:        (1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later            of (a) the date of the public statement or publication of information referenced therein and (b)            the date on which the administrator of the LIBO Rate permanently or indefinitely ceases to            provide the LIBO Rate; or        (2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the            public statement or publication of information referenced therein.        “Benchmark  Transition Event” shall mean the occurrence of one or more of the following  events with respect to the LIBO Rate:        (1) a public statement or publication of information by or on behalf of the administrator of the            LIBO Rate announcing that such administrator has ceased or will cease to provide the            LIBO Rate, permanently or indefinitely; provided that, at the time of such statement or            publication, there is no successor administrator that will continue to provide the LIBO Rate;        (2) a public statement or publication of information by the regulatory supervisor for the            administrator of the LIBO Rate, the U.S. Federal Reserve System, an insolvency official            with jurisdiction over the administrator for  the LIBO Rate, a resolution authority with            jurisdiction over the administrator for the LIBO Rate or a court or an entity with similar            insolvency or resolution authority over the administrator for the LIBO Rate, which states            that the administrator of the LIBO Rate has ceased or will cease to provide the LIBO Rate                                           68  #93457508v14

 

           permanently or indefinitely; provided that, at the time of such statement or publication,            there is no successor administrator that will continue to provide the LIBO Rate; or        (3) a public statement or publication of information by the regulatory supervisor for the            administrator of the LIBO Rate announcing that the LIBO Rate is no longer representative.       “Benchmark Transition Start Date” shall mean (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Company, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders.       “Benchmark Unavailability Period” shall mean, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the LIBO Rate and solely to the extent that the LIBO Rate has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the LIBO Rate for all purposes hereunder in accordance with this Section 2.17 and (y) ending at the time that a Benchmark Replacement has replaced the LIBO Rate for all purposes hereunder pursuant to this Section 2.17.        “Early Opt-in Election” shall mean the occurrence of:        (1) (i) a determination by the Administrative Agent or (ii) a notification by the Required            Lenders to the Administrative Agent (with a copy to the Company that the Required            Lenders have determined that U.S. dollar-denominated syndicated credit facilities being            executed at such time, or that include language similar to that contained in this Section            2.17 are being executed or amended, as applicable, to incorporate or adopt a new            benchmark interest rate to replace the LIBO Rate, and        (2) (i) the election by the Administrative Agent or (ii) the election by the Required Lenders to            declare that an Early Opt-in Election has occurred and the provision, as applicable, by the            Administrative Agent of written notice of such election to the Company and the Lenders or            by the Required Lenders of written notice of such election to the Administrative Agent.        “Federal Reserve Bank of New York’s Website” shall mean the website of the Federal  Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.       “Relevant Governmental Body” shall mean the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.       “SOFR” with respect to any day shall mean 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.       “Term SOFR” shall mean the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.        “Unadjusted Benchmark Replacement” shall mean the Benchmark Replacement  excluding the Benchmark Replacement Adjustment.                                             69  #93457508v14

 

SECTION 3.   Letters of Credit.         3.01  Letters of Credit.                 (a)  Subject to and upon the terms and conditions set forth herein, any Borrower may  request that an Issuing Lender issue, at any time and from time to time on and after the Effective Date  and prior to the 10th day prior to the Revolving Commitment Termination Date, for the joint and  several account of the Borrowers, an irrevocable standby letter of credit, in a form customarily used by  such Issuing Lender or in such other form as is reasonably acceptable to such Issuing Lender (each such  letter of credit, a “Letter of Credit” and, collectively, the “Letters of Credit”) (although without limiting  the joint and several nature of the Borrowers’ obligations in respect of the Letters of Credit, any  particular Letter of Credit may name only one or more Borrowers as the account party therein).  All  Letters of Credit shall be issued on a sight basis only.  No Letter of Credit shall be a trade or  commercial letter of credit. Unless otherwise expressly agreed by the applicable Issuing Lender and the  applicable Borrower when a Letter of Credit is issued, each Letter of Credit shall be governed by, and  shall be construed in accordance with the rules of the ISP, and as to matters not governed by the ISP,  the laws of the State of New York.  Notwithstanding the foregoing, no Issuing Lender shall be  responsible to any Borrower for, and no Issuing Lender’s rights and remedies against any Borrower  shall be impaired by, any action or inaction of such Issuing Lender required or permitted under any law,  order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement,  including the applicable law or any order of a jurisdiction where the Issuing Lender or the beneficiary is  located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice  statements, or official commentary of the International Chamber of Commerce Banking Commission,  the Bankers Association for Finance and Trade - International Financial Services Association (BAFT-  IFSA), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit  chooses such law or practice.                 (b)  Subject to and upon the terms and conditions set forth herein, each Issuing  Lender agrees that it will, at any time and from time to time on and after the Effective Date and prior to  the 10th day prior to the Revolving Commitment Termination Date, following its receipt of the  respective Letter of Credit Request, issue for the joint and several account of the Borrowers, one or  more Letters of Credit as are permitted to remain outstanding hereunder without giving rise to a Default  or an Event of Default; provided, that, no Issuing Lender shall be under any obligation to issue any   Letter of Credit of the types described above if at the time of such issuance: (i) any order, judgment or   decree of any Governmental Authority or arbitrator shall purport by its terms to enjoin or restrain such   Issuing Lender from issuing such Letter of Credit or any requirement of law applicable to such Issuing   Lender or any request or directive (whether or not having the force of law) from any Governmental   Authority with jurisdiction over such Issuing Lender shall prohibit, or request that such Issuing Lender   refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall   impose upon such Issuing Lender with respect to such Letter of Credit any restriction or reserve or   capital requirement (for which such Issuing Lender is not otherwise compensated hereunder) not in   effect with respect to such Issuing Lender on the date hereof, or any unreimbursed loss, cost or expense   which was not applicable or in effect with respect to such Issuing Lender as of the date hereof and   which such Issuing Lender reasonably and in good faith deems material to it; or (ii) such Issuing Lender   shall have received from such Borrower, any other Credit Party or the Required Lenders prior to the   issuance of such Letter of Credit notice of the type described in the second sentence of Section 3.03(b).        3.02   Maximum Letter of Credit Outstandings; Final Maturities  .     Notwithstanding anything to the contrary contained in this Agreement, (a) no Letter of Credit shall be issued (or required to be issued) if the Stated Amount of such Letter of Credit, when added to the                                            70  #93457508v14

 

Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid on the date of, and prior to the issuance of, the respective Letter of Credit) at such time, would exceed the Maximum Letter of Credit Amount at such time, (b) no Letter of Credit shall be issued (or required to be issued) at any time when the Aggregate Exposure exceeds (or would after giving effect to such issuance exceed) either (i) the Total Revolving Loan Commitment at such time or (ii) the Borrowing Base at such time, (c) no Letter of Credit shall be issued (or required to be issued) by any particular Issuing Lender if the aggregate Letter of Credit Outstandings for such Issuing Lender (after giving effect to the requested Letter of Credit) would exceed the Issuing Lender Sublimit for such Issuing Lender, (d) each Letter of Credit shall be denominated in Dollars, and (e) each standby Letter of Credit shall by its terms terminate on or before the earlier of (i) the date which occurs 12 months after the date of the issuance thereof (although any such standby Letter of Credit may be extendible for successive periods of up to 12 months, but, in each case, not beyond the fifth Business Day prior to the Revolving Commitment Termination Date, on terms acceptable to the respective Issuing Lender)) and (ii) five Business Days prior to the Revolving Commitment Termination Date.         3.03  Letter of Credit Requests.                 (a)  Whenever any Borrower desires that a Letter of Credit be issued for its account,   such Borrower shall give the Administrative Agent and the respective Issuing Lender at least two   Business Days’ (or such shorter period as is acceptable to such Issuing Lender) written notice thereof   (including by way of facsimile); provided, that, any such notice shall be deemed to have been given on   a certain day only if received by the Administrative Agent and the respective Issuing Lender before   11:00 A.M. (New York City time) on such day.  Each notice shall be in the form of a letter of credit   application, and accompanied by such other documentation the applicable Issuing Lender may   reasonably request, in each case in a form reasonably acceptable to such Issuing Bank and appropriately   completed (each, a “Letter of Credit Request”).                 (b)  The making of each Letter of Credit Request shall be deemed to be a  representation and warranty by the respective Borrower to the Lenders that such Letter of Credit may be  issued in accordance with, and will not violate the requirements of, Section 3.02.  Unless the respective  Issuing Lender has received notice from any Borrower, any other Credit Party or the Required Lenders  before it issues a Letter of Credit that one or more of the conditions specified in Section 6 or 7 are not  then satisfied, or that the issuance of such Letter of Credit would violate Section 3.02, then such Issuing  Lender shall, subject to the terms and conditions of this Agreement, issue the requested Letter of Credit  for the account of the respective Borrower in accordance with such Issuing Lender’s usual and  customary practices.  Upon the issuance of or modification or amendment to any standby Letter of  Credit, each Issuing Lender shall promptly notify the respective Borrower and the Administrative  Agent, in writing of such issuance, modification or amendment and such notice shall be accompanied  by a copy of such Letter of Credit or the respective modification or amendment thereto, as the case may  be.  Without limiting the foregoing, the payment of an Issuing Lender’s fees and expenses contemplated  by Section  4.01(d) shall be a condition to such Issuing Lender’s obligation to issue, modify or amend a  Letter of Credit (unless otherwise agreed by such Issuing Lender).        Promptly after receipt of such notice the Administrative Agent shall notify the Participants, in writing, of such issuance, modification or amendment.  Notwithstanding anything to the contrary contained in this Agreement, in the event that a Lender Default exists with respect to a Lender, no Issuing Lender shall be required to issue, renew, extend or amend any Letter of Credit unless such Issuing Lender has entered into arrangements satisfactory to it and the Company to eliminate such Issuing Lender’s risk with respect to the participation in Letters of Credit by the Defaulting Lender (which arrangements are hereby consented to by the Lenders), including by cash collateralizing such Defaulting Lender’s or                                            71  #93457508v14

 

Lenders’ RL Percentage of the Letter of Credit Outstandings with respect to such Letters of Credit (such arrangements, the “Letter of Credit Back-Stop Arrangements”).         3.04  Letter of Credit Participations.                 (a)  Immediately upon the issuance by an Issuing Lender of any Letter of Credit, such  Issuing Lender shall be deemed to have sold and transferred to each Lender, and each such Lender (in  its capacity under this Section 3.04, a “Participant”) shall be deemed irrevocably and unconditionally to  have purchased and received from such Issuing Lender, without recourse or warranty, an undivided  interest and participation, to the extent of such Participant’s RL Percentage, in such Letter of Credit,   each drawing or payment made thereunder and the obligations of the Borrowers under this Agreement   with respect thereto, and any security therefor or guaranty pertaining thereto.  Upon any change in the   Revolving Loan Commitments or RL Percentages of the Lenders pursuant to Section 2.13, 2.15 or   13.04(b), it is hereby agreed that, with respect to all outstanding Letters of Credit and Unpaid Drawings  relating thereto, there shall be an automatic adjustment to the participations pursuant to this Section  3.04 to reflect the new RL Percentages of the assignor and assignee Lender, as the case may be.                 (b)  In determining whether to pay under any Letter of Credit, no Issuing Lender shall  have any obligation relative to the other Lenders other than to confirm that any documents required to  be delivered under such Letter of Credit appear to have been delivered and that they appear to  substantially comply on their face with the requirements of such Letter of Credit.  Any action taken or  omitted to be taken by an Issuing Lender under or in connection with any Letter of Credit issued by it  shall not create for such Issuing Lender any resulting liability to any Borrower, any other Credit Party,  any Lender or any other Person unless such action is taken or omitted to be taken with gross negligence  or willful misconduct on the part of such Issuing Lender (as determined by a court of competent  jurisdiction in a final and non-appealable decision).                 (c)  In the event that an Issuing Lender makes any payment under any Letter of  Credit issued by it and the Borrowers shall not have reimbursed such amount in full to such Issuing  Lender pursuant to Section 3.05(a), such Issuing Lender shall promptly notify the Administrative  Agent, which shall promptly notify each Participant of such failure, and each Participant shall promptly  and unconditionally pay to such Issuing Lender the amount of such Participant’s RL Percentage of such  unreimbursed payment in Dollars and in same day funds.  If the Administrative Agent so notifies, on or  prior to 12:00 Noon (New York City time) on any Business Day, any Participant required to fund a  payment under a Letter of Credit, such Participant shall make available to the respective Issuing Lender  in Dollars such Participant’s Percentage of the amount of such payment on such Business Day in same  day funds; provided, that, if any such notice is given to any Participant after 12:00 Noon (New York  City time) on such Business Day, such payment will be made available by such Participant to such  Issuing Lender on the immediately succeeding Business Day.  If and to the extent such Participant shall  not have so made its RL Percentage of the amount of such payment available to the respective Issuing  Lender, such Participant agrees to pay to such Issuing Lender, forthwith on demand such amount,  together with interest thereon, for each day from such date until the date such amount is paid to such  Issuing Lender at the overnight Federal Funds Rate for the first three days and at the interest rate  applicable to Loans that are maintained as Base Rate Loans for each day thereafter.  The failure of any  Participant to make available to an Issuing Lender its RL Percentage of any payment under any Letter  of Credit issued by such Issuing Lender shall not relieve any other Participant of its obligation  hereunder to make available to such Issuing Lender its RL Percentage of any payment under any Letter  of Credit on the date required, as specified above, but no Participant shall be responsible for the failure  of any other Participant to make available to such Issuing Lender such other Participant’s RL  Percentage of any such payment.                                            72  #93457508v14

 

               (d)  Whenever an Issuing Lender receives a payment of a reimbursement obligation  as to which it has received any payments from the Participants pursuant to clause (c) above, such  Issuing Lender shall pay to each such Participant which has paid its RL Percentage thereof, in Dollars  and in same day funds, an amount equal to such Participant’s share (based upon the proportionate  aggregate amount originally funded by such Participant to the aggregate amount funded by all  Participants) of the principal amount of such reimbursement obligation and interest thereon accruing  after the purchase of the respective participations.                 (e)  Upon the request of any Participant, each Issuing Lender shall furnish to such  Participant copies of any standby Letter of Credit issued by it and such other documentation as may  reasonably be requested by such Participant.                 (f)  The obligations of the Participants to make payments to each Issuing Lender with  respect to Letters of Credit shall be irrevocable and not subject to any qualification or exception  whatsoever and shall be made in accordance with the terms and conditions of this Agreement under all  circumstances, including any of the following circumstances:  (i) any lack of validity or enforceability  of this Agreement or any of the other Credit Documents; (ii) the existence of any claim, setoff, defense  or other right which any Credit Party or any of their respective Subsidiaries may have at any time  against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person  for whom any such transferee may be acting), the Administrative Agent, any Participant, or any other  Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated  herein or any unrelated transactions (including any underlying transaction between any Credit Party or  any Subsidiary of any Credit Party and the beneficiary named in any such Letter of Credit); (iii) any  draft, certificate or any other document presented under any Letter of Credit proving to be forged,  fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in  any respect; (iv) the surrender or impairment of any security for the performance or observance of any  of the terms of any of the Credit Documents; or (v) the occurrence of any Default or Event of Default.        3.05   Agreement to Repay Letter of Credit Drawings.                 (a)  Each Borrower hereby jointly and severally agrees to reimburse each Issuing  Lender, by making payment to the Administrative Agent in Dollars in immediately available funds at  the Payment Office, for any payment or disbursement made by such Issuing Lender under any Letter of  Credit issued by it (each such amount, so paid until reimbursed by the respective Borrower, an “Unpaid  Drawing”), not later than one Business Day following receipt by the respective Borrower of notice of   such payment or disbursement (provided, that, no such notice shall be required to be given if a Default   or an Event of Default under Section 11.05 shall have occurred and be continuing, in which case the   Unpaid Drawing shall be due and payable immediately without presentment, demand, protest or notice   of any kind (all of which are hereby waived by the Borrowers)), with interest on the amount so paid or   disbursed by such Issuing Lender, to the extent not reimbursed prior to 12:00 Noon (New York City   time) on the date of such payment or disbursement from and including the date paid or disbursed to but   excluding the date such Issuing Lender was reimbursed by the respective Borrower therefor at a rate per   annum equal to the Base Rate as in effect from time to time plus the Applicable Margin as in effect   from time to time for Loans that are maintained as Base Rate Loans; provided, however, to the extent  such amounts are not reimbursed prior to 12:00 Noon (New York City time) on the third Business Day  following the receipt by the respective Borrower of notice of such payment or disbursement or  following the occurrence of a Default or an Event of Default under Section 11.05, interest shall  thereafter accrue on the amounts so paid or disbursed by such Issuing Lender (and until reimbursed by  the Borrowers) at a rate per annum equal to the Base Rate as in effect from time to time plus the  Applicable Margin for Loans that are maintained as Base Rate Loans as in effect from time to time plus  2%, with such interest to be payable on demand.  Each Issuing Lender shall give the respective                                            73  #93457508v14

 

 Borrower prompt written notice of each Drawing under any Letter of Credit issued by it; provided, that,  the failure to give any such notice shall in no way affect, impair or diminish the Borrowers’ obligations  hereunder.                 (b)  The joint and several obligations of the Borrowers under this Section 3.05 to  reimburse each Issuing Lender with respect to drafts, demands and other presentations for payment  under Letters of Credit issued by it (each, a “Drawing”) (including, in each case, interest thereon) shall   be absolute and unconditional under any and all circumstances and irrespective of any setoff,   counterclaim or defense to payment which any Credit Party or any Subsidiary of any Credit Party may   have or have had against any Lender (including in its capacity as an Issuing Lender or as a Participant),   including any defense based upon the failure of any drawing under a Letter of Credit to conform to the   terms of the Letter of Credit or any non-application or misapplication by the beneficiary of the proceeds   of such Drawing.         3.06  Increased Costs.  .     If at any time after the Effective Date, the introduction of or any change in any applicable law, rule, regulation, order, guideline or request or in the interpretation or administration thereof by the NAIC or any Governmental Authority charged with the interpretation or administration thereof, or compliance by any Issuing Lender or any Participant with any request or directive by the NAIC or by any such Governmental Authority (whether or not having the force of law), shall either (a) impose, modify or make applicable any reserve, deposit, capital adequacy or similar requirement against letters of credit issued by any Issuing Lender or participated in by any Participant, or (b) impose on any Issuing Lender or any Participant any other conditions relating, directly or indirectly, to this Agreement or any Letter of Credit; and the result of any of the foregoing is to increase the cost to any Issuing Lender or any Participant of issuing, maintaining or participating in any Letter of Credit, or reduce the amount of any sum received or receivable by any Issuing Lender or any Participant hereunder or reduce the rate of return on its capital with respect to Letters of Credit (but excluding, for these purposes, any Taxes payable or subject to indemnification or reimbursement under Section 5.04 and any Excluded Taxes), then, upon the delivery of the certificate referred to below to the Company by any Issuing Lender or any Participant (a copy of which certificate shall be sent by such Issuing Lender or such Participant to the Administrative Agent), the Borrowers jointly and severally agree to pay to such Issuing Lender or such Participant such additional amount or amounts as will compensate such Issuing Lender or such Participant for such increased cost or reduction in the amount receivable or reduction on the rate of return on its capital.  Any Issuing Lender or any Participant, upon determining that any additional amounts will be payable to it pursuant to this Section 3.06, will give prompt written notice thereof to the Company, which notice shall include a certificate submitted to the Company by such Issuing Lender or such Participant (a copy of which certificate shall be sent by such Issuing Lender or such Participant to the Administrative Agent), setting forth in reasonable detail the basis for the calculation of such additional amount or amounts necessary to compensate such Issuing Lender or such Participant and certifying to the Company that such Issuing Lender or such Participant has made such determination with respect to similarly-situated borrowers.  The certificate required to be delivered pursuant to this Section 3.06 shall, absent manifest error, be final and conclusive and binding on the Borrowers.         3.07  Extended Commitments.  .     If the Initial Revolving Commitment Termination Date shall have occurred at a time when Extended Revolving Loan Commitments are in effect, then such Letters of Credit shall automatically be deemed to have been issued (including for purposes of the obligations of the Lenders to purchase participations therein and to make payments in respect thereof pursuant to Sections 3.04 and 3.05) under (and ratably participated in by Lenders under the applicable tranche pursuant to) the Extended Revolving                                            74  #93457508v14

 

Loan Commitments up to an aggregate amount not to exceed the aggregate principal amount of the unutilized Extended Revolving Loan Commitments thereunder at such time (it being understood that no partial face amount of any Letter of Credit may be so reallocated).  Except to the extent of reallocations of participations pursuant to the prior sentence, the occurrence of the Initial Revolving Commitment Termination Date shall have no effect upon (and shall not diminish) the percentage participations of the Lenders in any Letter of Credit issued before the Initial Revolving Commitment Termination Date.  SECTION 4.   Commitment Commission; Fees; Reductions of Commitment.         4.01  Fees.                 (a)  The Borrowers jointly and severally agree to pay to the Administrative Agent for  distribution to each Non-Defaulting Lender a commitment commission (the “Commitment  Commission”) for the period from and including the Effective Date to and including the Revolving  Commitment Termination Date (or such earlier date on which the Total Revolving Loan Commitment  has been terminated) computed at a rate per annum equal to the Applicable Commitment Commission  Percentage of the Unutilized Revolving Loan Commitment of such Non-Defaulting Lender as in effect  from time to time.  Accrued Commitment Commission shall be due and payable quarterly in arrears on  each Quarterly Payment Date and on the date upon which the Total Revolving Loan Commitment is  terminated.                 (b)  The Borrowers jointly and severally agree to pay to the Administrative Agent for  distribution to each Non-Defaulting Lender (based on each such Lender’s respective RL Percentage) a  fee in respect of each Letter of Credit (the “Letter of Credit Fee”) for the period from and including the   date of issuance of such Letter of Credit to and including the date of termination or expiration of such   Letter of Credit, computed at a rate per annum equal to in the case of standby Letters of Credit, the   Applicable Margin as in effect from time to time during such period with respect to Revolving Loans   that are maintained as LIBOR Loans on the daily Stated Amount of each such Letter of Credit.   Accrued Letter of Credit Fees shall be due and payable quarterly in arrears on each Quarterly Payment   Date and on the first day on or after the termination of the Total Revolving Loan Commitment upon   which no Letters of Credit remain outstanding.                 (c)  The Borrowers jointly and severally agree to pay to each Issuing Lender, for its   own account, a facing fee in respect of each Letter of Credit issued by it (the “Facing Fee”) for the   period from and including the date of issuance of such Letter of Credit to and including the date of   termination or expiration of such Letter of Credit, computed at a rate per annum equal to 1/8 of 1% on   the daily Stated Amount of such Letter of Credit.  Accrued Facing Fees shall be due and payable   quarterly in arrears on each Quarterly Payment Date and upon the first day on or after the termination   of the Total Revolving Loan Commitment, upon which no Letters of Credit remain outstanding.                 (d)  The Borrowers jointly and severally agree to pay to each Issuing Lender, for its   own account, upon each payment under, issuance of, or amendment to, any Letter of Credit issued by it,   such amount as shall at the time of such event be the administrative charge and the reasonable expenses   which such Issuing Lender is generally imposing in connection with such occurrence with respect to   letters of credit.                 (e)  The Borrowers jointly and severally agree to pay to the Administrative Agent   such fees as may have been, or are hereafter, agreed to in writing from time to time by any Credit Party   or any of their respective Subsidiaries and the Administrative Agent.                                             75  #93457508v14

 

      4.02   Voluntary Termination of Unutilized Commitments.                 (a)  Upon at least three Business Days’ prior written notice to the Administrative  Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of  the Lenders), the Company shall have the right, at any time or from time to time, without premium or  penalty to terminate the Total Unutilized Revolving Loan Commitment in whole, or reduce it in part,  pursuant to this Section 4.02(a), in an integral multiple of $1,000,000 in the case of partial reductions to  the Total Unutilized Revolving Loan Commitment; provided, that, (i) each such reduction shall apply   proportionately to permanently reduce the Revolving Loan Commitment of each Lender and (ii) after   giving effect to such termination (A) the aggregate amount of the Letter of Credit Outstandings shall   not exceed the Maximum Letter of Credit Amount and (B) the aggregate principal amount of Swingline   Loans then outstanding shall not exceed the Maximum Swingline Amount.                 (b)  In the event of certain refusals by a Lender to consent to certain proposed   changes, waivers, discharges or terminations with respect to this Agreement which have been approved   by the Required Lenders as (and to the extent) provided in Section 13.12(b), the Company shall have   the right, subject to obtaining the consents required by Section 13.12(b), upon five Business Days’ prior   written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent   shall promptly transmit to each of the Lenders), to terminate the entire Revolving Loan Commitment of   such Lender, so long as all Loans, together with accrued and unpaid interest, Fees and all other   amounts, owing to such Lender (including all amounts, if any, owing pursuant to Section 2.11) are   repaid concurrently with the effectiveness of such termination (at which time Schedule 1.01(a) shall be  deemed modified to reflect such changed amounts) and such Lender’s RL Percentage of all outstanding   Letters of Credit is cash collateralized in a manner satisfactory to the Administrative Agent and the   respective Issuing Lenders, and at such time such Lender shall no longer constitute a “Lender” for   purposes of this Agreement, except with respect to indemnifications under this Agreement (including   Sections 2.10, 2.11, 3.06, 5.04, 12.06, 13.01 and 13.06), which shall survive as to such repaid Lender.         4.03  Mandatory Reduction of Commitments.  .     The Total Revolving Loan Commitment (and the Revolving Loan Commitment of each Lender) shall terminate in its entirety upon the Revolving Commitment Termination Date.  SECTION 5.   Prepayments; Payments; Taxes.         5.01  Voluntary Prepayments.                 (a)  Each Borrower shall have the right to prepay the Loans, without premium or  penalty, in whole or in part at any time and from time to time on the following terms and conditions: (i)  such Borrower shall give the Administrative Agent prior to 12:00 Noon (New York City time) (or  11:00 A.M. (New York City time) in the case of succeeding clause (A)) at the Notice Office (A) same  day written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay Base Rate  Loans and (B) at least three Business Days’ prior written notice (or telephonic notice promptly  confirmed in writing) of its intent to prepay LIBOR Loans, which notice (in each case) shall specify  whether Revolving Loans or Swingline Loans shall be prepaid, the amount of such prepayment and the  Types of Loans to be prepaid and, in the case of LIBOR Loans, the specific Borrowing or Borrowings  pursuant to which such LIBOR Loans were made, and which notice the Administrative Agent shall,  except in the case of a prepayment of Swingline Loans, promptly transmit to each of the Lenders; (ii)  (A) each partial prepayment of Revolving Loans pursuant to this Section 5.01(a) shall be in an  aggregate principal amount of at least $250,000 (or such lesser amount as is acceptable to the  Administrative Agent) and (B) each partial prepayment of Swingline Loans pursuant to this Section                                            76  #93457508v14

 

 5.01(a) shall be in an aggregate principal amount of at least $100,000 (or such lesser amount as is  acceptable to the Administrative Agent in any given case); provided, that, if any partial prepayment of  LIBOR Loans made pursuant to any Borrowing shall reduce the outstanding principal amount of  LIBOR Loans made pursuant to such Borrowing to an amount less than the Minimum Borrowing  Amount applicable thereto, then such Borrowing may not be continued as a Borrowing of LIBOR  Loans (and same shall automatically be converted into a Borrowing of Base Rate Loans) and any  election of an Interest Period with respect thereto given by such Borrower shall have no force or effect;  and (iii) each prepayment pursuant to this Section 5.01(a) in respect of any Revolving Loans made  pursuant to a Borrowing shall be applied pro rata among such Revolving Loans; provided, that, at such   Borrower’s election in connection with any prepayment of Revolving Loans pursuant to this Section   5.01(a), such prepayment shall not, so long as no Default or Event of Default then exists, be applied to   any Revolving Loan of a Defaulting Lender (it being understood and agreed that, if at any time   thereafter any such Defaulting Lender ceases to be a Defaulting Lender under this Agreement, each   Borrower shall, in coordination with the Administrative Agent, repay outstanding Revolving Loans of   certain of the Lenders, and incur additional Revolving Loans from certain other Lenders, in each case to   the extent necessary so that all of the Lenders participate in each outstanding Borrowing of Revolving   Loans pro rata on the basis of their respective Revolving Loan Commitments and with the Borrowers   being obligated to pay to the respective Lenders any costs of the type referred to in Section 2.11 in   connection with any such repayment and/or Borrowing).                 (b)  In the event of certain refusals by a Lender to consent to certain proposed   changes, waivers, discharges or terminations with respect to this Agreement which have been approved   by the Required Lenders as (and to the extent) provided in Section 13.12(b), the Borrowers may, upon   five Business Days’ prior written notice to the Administrative Agent at the Notice Office (which notice   the Administrative Agent shall promptly transmit to each of the Lenders), repay all Revolving Loans of   such Lender, together with accrued and unpaid interest, Fees and all other amounts then owing to such   Lender (including all amounts, if any, owing pursuant to Section 2.11) in accordance with, and subject   to the requirements of, Section 13.12(b), so long as (i) (A) the Revolving Loan Commitment of such   Lender is terminated concurrently with such repayment pursuant to Section 4.02(b) (at which time   Schedule 1.01(a) shall be deemed modified to reflect the changed Revolving Loan Commitments) and   (B) such Lender’s RL Percentage of all outstanding Letters of Credit is cash collateralized in a manner   satisfactory to the Administrative Agent and the respective Issuing Lenders and (ii) the consents, if any,   required by Section 13.12(b) in connection with the repayment pursuant to this clause (b) shall have   been obtained.         5.02  Mandatory Repayments; Cash Collateralization.                 (a)  (i)  On any day on which the Aggregate Exposure exceeds (A) 100% (or, during  an Agent Advance Period, 110%) of the Borrowing Base at such time and/or (B) the Total Revolving  Loan Commitment at such time, then in each case, the Borrowers jointly and severally shall repay on   such day the principal of Swingline Loans and, after all Swingline Loans have been repaid in full or if   no Swingline Loans are outstanding, Revolving Loans in an amount equal to such excess.  If, after   giving effect to the repayment of all outstanding Swingline Loans and Revolving Loans, the aggregate   amount of the Letter of Credit Outstandings exceeds (1) the Borrowing Base at such time and/or (2) the   Total Revolving Loan Commitment at such time, then in each case, the Borrowers jointly and severally   shall pay to the Administrative Agent at the Payment Office on such day an amount of cash and/or Cash   Equivalents equal to the amount of such excess (up to a maximum amount equal to the Letter of Credit   Outstandings at such time), such cash and/or Cash Equivalents to be held as security for all Obligations   of the Borrowers to each applicable Issuing Lender and the Lenders hereunder in a cash collateral   account to be established by, and under the sole dominion and control of, the Administrative Agent.                                            77  #93457508v14

 

                    (ii)   On any day on which either (A) the aggregate amount of the Letter of Credit Outstandings exceeds the Maximum Letter of Credit Amount or (B) the aggregate amount of Letter of Credit Outstandings in respect of Letters of Credit issued by a particular Issuing Lender exceeds the Issuing Lender Sublimit for such Issuing Lender, the Borrowers jointly and severally shall pay to the Administrative Agent at the Payment Office on such day an amount of cash and/or Cash Equivalents equal to the amount of either such excess, such cash and/or Cash Equivalents to be held as security for all Obligations of the Borrowers to each applicable Issuing Lender and the Lenders hereunder in a cash collateral account to be established by, and under the sole dominion and control of, the Administrative Agent.                      (iii)  On any day on which the aggregate principal amount of Swingline Loans then outstanding exceeds the Maximum Swingline Amount, the Borrowers jointly and severally shall repay on such day the principal of Swingline Loans in an amount equal to such excess.                 (b)  In addition to any other mandatory repayments pursuant to this Section 5.02, on  each date on or after the Effective Date upon which any Credit Party or any of its Subsidiaries receives  any cash proceeds from any Asset Sale of ABL Priority Collateral (other than Asset Sales or series of  related Asset Sales where the Net Sale Proceeds therefrom do not exceed $1,000,000 in any Fiscal  Year) during a Dominion Period, an amount equal to 100% of the Net Sale Proceeds therefrom shall be  applied within three Business Days of receipt thereof as a mandatory repayment in accordance with the  requirements of Sections 5.02(d) and (e).                 (c)  In addition to any other mandatory repayments pursuant to this Section 5.02, on  each date on or after the Effective Date upon which any Credit Party or any of its Subsidiaries receives  any cash proceeds from any Recovery Event in respect of ABL Priority Collateral (other than Recovery   Events where the Net Insurance Proceeds therefrom do not exceed $1,000,000 in any Fiscal Year)   during a Dominion Period, an amount equal to 100% of the Net Insurance Proceeds from such   Recovery Event shall be applied within three Business Days of receipt thereof as a mandatory   repayment in accordance with the requirements of Sections 5.02(d) and (e).                 (d)  Each amount required to be applied pursuant to Sections 5.02(b) and (c) in   accordance with this Section 5.02(d) shall be applied (i) first, to repay the outstanding principal amount   of Swingline Loans without any reduction in the Total Revolving Loan Commitment, (ii) second, if no   Swingline Loans are or remain outstanding, to repay the outstanding principal amount of Revolving   Loans without any reduction in the Total Revolving Loan Commitment and (iii) third, if no Swingline   Loans or Revolving Loans are or remain outstanding and a Default or an Event of Default then exists,   to cash collateralize Letters of Credit (such cash collateral to be held by the Administrative Agent in a   cash collateral account to be established by, and under the sole dominion and control of, the   Administrative Agent and applied to the Obligations of the applicable Borrowers to the Issuing Lenders   and/or Lenders in respect of any Drawings made under any such Letters of Credit).                 (e)  With respect to each repayment of Loans required by this Section 5.02, the  Borrowers may designate the Types of Loans which are to be repaid and, in the case of LIBOR Loans,  the specific Borrowing or Borrowings pursuant to which such LIBOR Loans were made; provided, that:  (i) repayments of LIBOR Loans pursuant to this Section 5.02 made on a day other than the last day of  an Interest Period applicable thereto shall be subject to Section 2.11; (ii) if any repayment of LIBOR  Loans made pursuant to a single Borrowing shall reduce the outstanding LIBOR Loans made pursuant  to such Borrowing to an amount less than the Minimum Borrowing Amount applicable thereto, such  Borrowing shall be automatically converted into a Borrowing of Base Rate Loans; and (iii) each  repayment of any Revolving Loans made pursuant to a Borrowing shall be applied pro rata among the  Lenders holding such Revolving Loans.  In the absence of a designation by a Borrower as described in                                            78  #93457508v14

 

 the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in  its sole discretion.                 (f)  In addition to any other mandatory repayments pursuant to this Section 5.02, (i)  all then outstanding Swingline Loans shall be repaid in full on the earlier of (A) the tenth Business Day  following the date the incurrence of such Swingline Loans and (B) Swingline Expiry Date, and (ii) all  then outstanding Revolving Loans shall be repaid in full on the Revolving Commitment Termination  Date.                 (g)  If any Lender becomes a Defaulting Lender at any time that any Letter of Credit  issued by any Issuing Lender is outstanding, the Borrower shall enter into the applicable Letter of  Credit Back Stop Arrangements with such Issuing Lender no later than 10 Business Days after the date  such Lender becomes a Defaulting Lender.        5.03   Method and Place of Payment.                 (a)  Except as otherwise specifically provided herein, all payments under this  Agreement and under any Note shall be made to the Administrative Agent for the account of the Lender  or Lenders entitled thereto not later than 2:00 p.m. (New York City time) on the date when due and  shall be made in Dollars in immediately available funds at the Payment Office.  Whenever any payment  to be made hereunder or under any Note shall be stated to be due on a day which is not a Business Day,  the due date thereof shall be extended to the next succeeding Business Day and, with respect to  payments of principal, interest shall be payable at the applicable rate during such extension.                 (b)  Each Borrower and each Guarantor shall, along with the Collateral Agent and   certain financial institutions with which the Borrowers and Guarantors maintain Deposit Accounts (the   “Collection Banks”), enter into on or prior to (x) in the case of any Deposit Account containing   amounts included in the Borrowing Base pursuant to clause (i) of the definition thereof, the 5th Business  Day following the Effective Date (it being understood that the Borrowers may deliver an updated  Borrowing Base Certificate removing such amounts from the Borrowing Base, in which case clause (y)  below shall apply) and (y) in any other case, the 90th day following the Effective Date (in each case, as  such date may be extended from time to time by the Administrative Agent in its sole discretion) and  thereafter maintain separate Cash Management Control Agreements with respect to all Deposit  Accounts (other than Excluded Accounts).  Each Credit Party shall instruct all Account Debtors of the  Credit Parties to remit all payments to the applicable “P.O.  Boxes” or “Lockbox Addresses” of the  applicable Collection Bank (or to remit such payments to the applicable Collection Bank by electronic  settlement) with respect to all Accounts of such Account Debtor, which remittances shall be collected  by the applicable Collection Bank and deposited in the applicable Collection Account.  All amounts  received by any Credit Party and any Collection Bank in respect of any Account, in addition to all other  cash received from any other source, shall upon receipt be deposited into a Collection Account or  directly into a Concentration Account or, to the extent permitted hereunder in the case of amounts not  constituting payments in respect of Accounts of a Credit Party, an Excluded Account.  Each Credit  Party shall, along with the Collateral Agent and each of those banks or other Persons in which any  Securities Accounts (other than Excluded Accounts) are maintained, enter into on or prior to the 90th  day following the Effective Date (as such date may be extended from time to time by the  Administrative Agent in its sole discretion) and thereafter maintain separate Cash Management Control  Agreements.                 (c)  All amounts held in all of the Collection Accounts and Disbursement Accounts  (but not Excluded Accounts) with respect to each Credit Party shall be wired by the close of business  on each Business Day into one or more concentration accounts (each, a “Concentration Account”) with                                            79  #93457508v14

 

 the Collateral Agent, one or more Lenders and/or one or more other institutions reasonably acceptable  to the Administrative Agent (it being understood that any institution with which the Company or any  other Credit Party maintains a Deposit Account as of the Effective Date shall be reasonably satisfactory   to the Administrative Agent) unless such amounts are otherwise required or permitted to be applied   pursuant to Section 5.02.  All of the Collection Accounts and Disbursement Accounts (other than an   Excluded Account) shall be “zero” balance accounts.  So long as no Dominion Period then exists, the   Borrowers and the Subsidiary Guarantors shall be permitted to transfer cash from the Concentration   Accounts to the Disbursement Accounts to be used for working capital and general corporate (or  equivalent) purposes, all subject to the requirements of this Section 5.03(c) and pursuant to procedures  and arrangements to be determined by the Administrative Agent.  If a Dominion Period exists, all  collected amounts held in the Concentration Accounts shall be applied as provided in Section 5.03(d).                 (d)  Each Cash Management Control Agreement relating to a Concentration Account  and each Securities Account shall (unless otherwise agreed by the Administrative Agent in its  reasonable discretion) include provisions that allow, during any Dominion Period, for all collected and  other amounts held in such Concentration Account and such Securities Account from and after the date  requested by the Administrative Agent, to be sent by ACH or wire transfer or similar electronic transfer  no less frequently than once per Business Day to one or more accounts maintained with the  Administrative Agent (each, a “UBS Account”).  Subject to the terms of the respective Security  Document, all amounts received in a UBS Account shall be applied (and allocated) by the  Administrative Agent on a daily basis in the following order (in each case, to the extent the  Administrative Agent has actual knowledge of the amounts owing or outstanding as described below  and after giving effect to the application of any such amounts otherwise required to be applied pursuant  to Section 5.02(b) or (c) constituting proceeds from any Collateral otherwise required to be applied  pursuant to the terms of the respective Security Document): (i) first, to the payment (on a ratable basis)  of any outstanding Expenses actually due and payable to the Administrative Agent or the Collateral  Agent under any of the Credit Documents and to repay or prepay outstanding Swingline Loans and  Loans advanced by the Administrative Agent on behalf of the Lenders pursuant to Sections 2.01(e) and  2.04(b); (ii) second, to the extent all amounts referred to in preceding clause (i) have been paid in full,  to pay (on a ratable basis) all outstanding Expenses actually due and payable to each Issuing Lender  under any of the Credit Documents and to repay all outstanding Unpaid Drawings and all interest  thereon; (iii) third, to the extent all amounts referred to in preceding clauses (i) and (ii) have been paid  in full, to pay (on a ratable basis) all accrued and unpaid interest actually due and payable on the Loans  and all accrued and unpaid Fees actually due and payable to the Administrative Agent, the Issuing  Lenders and the Lenders under any of the Credit Documents; (iv) fourth, to the extent all amounts  referred to in preceding clauses (i) through (iii), inclusive, have been paid in full, to repay (on a ratable  basis) the outstanding principal of Revolving Loans (whether or not then due and payable); and (v)  fifth, to the extent all amounts referred to in preceding clauses (i) through (iv), inclusive, have been paid  in full, to pay (on a ratable basis) all other outstanding Obligations then due and payable to the  Administrative Agent, the Collateral Agent and the Lenders under any of the Credit Documents.                 (e)  Without limiting the provisions set forth in Section 13.15, the Administrative  Agent shall maintain accounts on its books in the name of each Borrower (collectively, the “Credit  Account”) in which each Borrower will be charged with all loans and advances made by the Lenders to  the respective Borrower for the respective Borrower’s account, including the Loans, the Letter of Credit  Outstandings, and the Fees, Expenses and any other Obligations relating thereto.  Each Borrower will  be credited, in accordance with this Section 5.03, with all amounts received by the Lenders from such  Borrower or from others for its account, including, as set forth above, all amounts received by the  Administrative Agent and applied to the Obligations.  In no event shall prior recourse to any Accounts  or other Collateral be a prerequisite to the Administrative Agent’s right to demand payment of any  Obligation upon its maturity.  Further, the Administrative Agent shall have no obligation whatsoever to                                            80  #93457508v14

 

 perform in any respect any of the Borrowers’ or the Subsidiary Guarantors’ contracts or obligations  relating to the Accounts.        5.04   Taxes.                 (a)  All payments made by the Borrowers hereunder and under any Credit Document   will be made without setoff, counterclaim or other defense.  All such payments will be made free and   clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties,   fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or   by any political subdivision or taxing authority thereof or therein with respect to such payments (but   excluding, (i) any tax, levy, impost, duty, fee, assessment or other charge imposed on or measured by   the net income or net profits of a Lender or Issuing Lender or any franchise taxes, in each case (x)  imposed pursuant to the laws of the jurisdiction in which such Lender or Issuing Lender is organized or  the jurisdiction in which the principal office or applicable lending office of such Lender or Issuing  Lender is located or any subdivision thereof or therein or (y) that is a Connection Tax, (ii) any United  States federal withholding tax imposed on amounts payable to or for the account of a Lender or Issuing  Lender with respect to an applicable interest in a Loan pursuant to a law in effect on the date on which   such Lender or Issuing Lender acquires such interest in a Loan or such Lender or Issuing Lender   changes its lending office, except in each case to the extent that amounts with respect to such taxes were   payable either (x) to such Lender or Issuing Lender’s assignor immediately before such Lender or   Issuing Lender became a party hereto or (y) to such Lender or Issuing Lender immediately before it   changed its lending office, (iii) any U.S. federal withholding taxes imposed under FATCA, (iv) any  branch profits tax imposed by the United States or any comparable tax imposed by any foreign   jurisdiction, and (v) in the case of a Lender or Issuing Lender, any tax imposed, deducted or withheld  on or from any payments made by the Borrowers under any Credit Document that are attributable to  such Lender’s or Issuing Lender’s failure, inability or ineligibility to comply with Section 5.04(c),  except to the extent such failure, inability or ineligibility is due to a Change in Tax Law occurring after  the date on which such Foreign Lender became a party to this Agreement (except, in the case of an  assignment, to the extent that such Foreign Lender’s assignor was entitled, at the time of such  assignment, to receive additional payments from the Borrowers with respect to such tax) (all such  excluded taxes being referred to collectively as “Excluded Taxes”), and all interest, penalties or similar  liabilities with respect to taxes, levies, imposts, duties, deduction, withholdings, fees, assessments or  other charges that are not Excluded Taxes (all such non-excluded taxes being referred to collectively as  “Taxes”), unless such withholding or deduction is required by applicable law.  If any Taxes are so   levied or imposed, the Borrowers jointly and severally agree to pay the full amount of such Taxes, and   such additional amounts as may be necessary so that every payment to a Lender or Issuing Lender of all   amounts due under any Credit Document, will not be less than the amount provided for in such Credit   Document after withholding or deduction for or on account of any such Taxes (including any   withholding or deduction of Taxes applicable to additional sums payable under this Section  5.04).  The   Borrowers will furnish to the Administrative Agent within 45 days after the date the payment of any   Taxes is due pursuant to applicable law certified copies of tax receipts evidencing such payment by   such Borrowers.  The Borrowers jointly and severally agree to indemnify and hold harmless each   Lender and each Issuing Lender and reimburse such Lender and such Issuing Lender upon its written   request, for the amount of any Taxes so levied or imposed and paid by such Lender or such Issuing   Lender with respect to any payment made by or on account of any obligations of any Credit Party under   any Credit Document, within 15 days of receipt of such written request.                 (b)  Each Lender shall severally indemnify the Administrative Agent, within 10 days   after demand therefor, for (i) any Taxes attributable to such Lender (but only to the extent that the   Borrowers have not already indemnified the Administrative Agent for such Taxes and without limiting   the obligation of the Borrowers to do so), (ii) any Taxes or Excluded Taxes attributable to such                                            81  #93457508v14

 

 Lender’s failure to comply with the provisions of Section 13.04 relating to the maintenance of a   Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are   payable or paid by the Administrative Agent in connection with any Credit Document, and any   reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes or Excluded   Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A   certificate as to the amount of such payment or liability delivered to any Lender by the Administrative   Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative  Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit  Document or otherwise payable by the Administrative Agent to the Lender from any other source  against any amount due to the Administrative Agent under this clause (b).                 (c)  Each Lender and each Issuing Lender that is not a United States person (as such  term is defined in Section 7701(a)(30) of the Code) (a “Foreign Lender”) agrees to deliver to the  Company and the Administrative Agent on or prior to the date such Foreign Lender becomes a party to  this Agreement, when a lapse in time or change in circumstances renders the previous certification  obsolete or inaccurate in any material respect, and upon the request of a Borrower or the Administrative  Agent, whichever of the following is applicable: (i) two accurate and complete signed copies of Internal  Revenue Service Form W-8ECI, Form W-8BEN-E or Form W-8BEN (or applicable successor form)  certifying to such Lender’s or such Issuing Lender’s entitlement as of such date to an exemption from,  or reduction of, United States federal withholding tax with respect to payments to be made under any  Credit Document, (ii) two accurate and complete signed certificates substantially in the form of Exhibit  D-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A)  of the Code, a “10 percent shareholder” of any Borrower within the meaning of Section 881(c)(3)(B) of  the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (any such  certificate, a “Section 5.04(c)(ii) Certificate”), as well as two accurate and complete signed copies of  Internal Revenue Service Form W-8BEN-E or Form W-8BEN (or successor form), or (iii) two accurate  and complete signed copies of Internal Revenue Service Form W-8IMY (or applicable successor form)   accompanied by Internal Revenue Service Form W-8ECI, Form W-8BEN-E, Form W-8BEN, or Form   W-9, a Section 5.04(c)(ii) Certificate substantially in the form of Exhibit D-2 or Exhibit D-3 and/or   other certification documents from each beneficial owner, as applicable; provided that if the Foreign   Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming   the portfolio interest exemption, such Foreign Lender may provide a Section 5.04(c)(ii) Certificate   substantially in the form of Exhibit D-4 on behalf of each such direct or indirect partner or (1) executed  copies of any other form prescribed by applicable Law as a basis for claiming exemption from or a  reduction in United States federal withholding tax, duly completed, together with such supplementary  documentation as may be prescribed by applicable Law to permit the Borrowers or the Administrative  Agent to determine the withholding or deduction required to be made.  In addition, each Foreign Lender  shall provide to the Borrowers and the Administrative Agent at the time or times prescribed by law and   at such time or times reasonably requested by any Borrower or the Administrative Agent any forms,  documentation, or other information prescribed by applicable law and such additional documentation  reasonably requested by any Borrower or the Administrative Agent as may be necessary for the  BorrowerBorrowers and the Administrative Agent to comply with their obligations under FATCA and  to determine that such Foreign Lender has complied with the applicable reporting requirements of  FATCA (including those contained in Sections 1471(b) or 1472(b) of the Code, as applicable), so that  such payments made to such Lender or such Issuing Lender hereunder would not be subject to U.S.  federal withholding taxes imposed by FATCA or to determine the amount to deduct and withhold from  such payment.  Solely for purposes of this Section 5.04(c), “FATCA” shall include any amendments  made to FATCA after the date of this Agreement.  Each Lender or Issuing Lender that is a United  States person (as defined in Section 7701(a)(30) of the Code) shall deliver to the Company and the  Administrative Agent on or before the date on which it becomes a party to this Agreement (and from  time to time thereafter upon the reasonable request of the BorrowerBorrowers or the Administrative                                            82  #93457508v14

 

 Agent) two accurate and complete signed copies of Internal Revenue Service Form W-9 (or applicable  successor form) certifying that such Lender or Issuing Lender is exempt from U.S. federal backup  withholding. In addition, any Lender or Issuing Lender that is entitled to an exemption from or  reduction of withholding tax with respect to payments made under any Credit Document shall deliver to  the Company and the Administrative Agent, at the time or times reasonably requested by the Company  or the Administrative Agent, such properly completed and executed documentation reasonably  requested by the Borrowers or the Administrative Agent as will permit such payments to be made  without withholding or at a reduced rate of withholding, and any Lender or Issuing Lender, if  reasonably requested by the Company or the Administrative Agent, shall deliver such other  documentation prescribed by applicable law or reasonably requested by the Company or the  Administrative Agent as will enable the Company or the Administrative Agent to determine whether or   not such Lender or Issuing Lender is subject to backup withholding or information reporting   requirements.  Notwithstanding anything to the contrary in the preceding sentence, the completion,   execution and submission of the documentation described in the preceding sentence (other than such  documentation set forth in (i), (ii), or (iii) of this Section 5.04(c) or the FATCA documentation set forth  in this Section 5.04(c)) shall not be required if in the Lender’s or the Issuing Lender’s reasonable  judgment, such completion, execution or submission would subject such Lender or such Issuing Lender  to any material unreimbursed cost or expense or would materially prejudice the legal or commercial  position of such Lender or such Issuing Lender.                 (d)  On or before the date on which UBS AG, Stamford Branch (and any successor  replacement Administrative Agent) becomes the Administrative Agent hereunder, it shall deliver to the  BorrowerBorrowers two duly executed copies of either (i) Internal Revenue Service Form W-9, or (ii)  Internal Revenue Service Form W-8ECI (with respect to any payments to be received on its own  behalf) and Internal Revenue Service Form W-8IMY (for all other payments), establishing that the  BorrowerBorrowers can make payments to the Administrative Agent without deduction or withholding  of any taxes imposed by the United States, including taxes imposed under FATCA.                 (e)  If any Borrower pays any additional amounts or makes any indemnity payments  pursuant to this Section  5.04 with respect to the Administrative Agent, any Lender or any Issuing   Lender and the Administrative Agent, such Lender or such Issuing Lender, as the case may be,   determines in its sole discretion that it has actually received in connection therewith any refund of its   Tax liabilities in or with respect to the taxable year in which the additional amount is paid (a “Tax   Benefit”), the Administrative Agent, such Lender or such Issuing Lender shall pay to such Borrower an   amount that the Administrative Agent, such Lender or such Issuing Lender shall determine, in its sole   discretion, is equal to the net benefit, after tax, that was obtained by the Administrative Agent, such   Lender or such Issuing Lender in such year as a consequence of such Tax Benefit; provided, however,  that (i) the Administrative Agent, such Lender or such Issuing Lender may determine, in its sole  discretion consistent with its policies, whether to seek a Tax Benefit; (ii) any Taxes that are imposed on  the Administrative Agent, such Lender or such Issuing Lender as a result of a disallowance or reduction  of any Tax Benefit with respect to which the Administrative Agent, such Lender or such Issuing Lender  has made a payment to such Borrower pursuant to this Section  5.04(e) shall be treated as a Tax in the   amount for which such Borrower is obligated to indemnify the Administrative Agent, such Lender or   such Issuing Lender; (iii) nothing in this Section  5.04(e) shall require the Administrative Agent, such   Lender or such Issuing Lender to disclose any confidential information to such Borrower (including its   tax returns); and (iv) the Administrative Agent, such Lender or such Issuing Lender shall not be   required to pay any amounts pursuant to this Section  5.04(e) at any time which an Event of Default   exists or any Default under Section 11.01 or 11.05 exists.  Notwithstanding anything to the contrary in   this clause (d), in no event will the Administrative Agent, any Lender or any Issuing Lender be required   to pay any amount to any Borrower pursuant to this clause  (e) the payment of which would place the   Administrative Agent, such Lender or such Issuing Lender in a less favorable net after-Tax position                                            83  #93457508v14

 

 than the Administrative Agent, such Lender or such Issuing Lender would have been in if the Tax  giving rise to such refund had not been deducted, withheld or otherwise imposed and the  indemnification payments or additional amounts with respect to such Tax had never been paid.                 (f)  Each party’s obligations under this Section  5.04 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a  Lender and the repayment, satisfaction or discharge of all obligations under any Credit Document.  SECTION 6.   Conditions Precedent to Credit Events on the Effective Date.         The occurrence of the Effective Date and the obligation of each Lender to make Loans, and the obligation of each Issuing Lender to issue Letters of Credit, on the Effective Date, are subject to the satisfaction of the following conditions:         6.01  Effective Date; Notes.  .  On or prior to the Effective Date, (a) this Agreement shall have been executed and delivered as provided in Section 13.10 and (b) there shall have been delivered to the Administrative Agent for the account of each of the Lenders that has requested same the appropriate Revolving Notes executed by the Borrowers and if requested by the Swingline Lender, the appropriate Swingline Notes executed by the Borrowers, in each case, in the amount, maturity and as otherwise provided herein.         6.02  Officer’s Certificate.  .  On the Effective Date, the Administrative Agent shall have received a certificate, dated the Effective Date and signed on behalf of the Company by an Authorized Officer of the Company, certifying on behalf of the Company that all of the conditions in Sections 6.05, 6.06 and 7.01 have been satisfied on such date.         6.03  Opinions of Counsel.  .  On the Effective Date, the Administrative Agent shall have received from Vinson & Elkins LLP, special counsel to the Credit Parties, an opinion, in form and substance reasonably satisfactory to the Administrative Agent, addressed to the Administrative Agent, the Collateral Agent and each of the Lenders and dated the Effective Date covering such matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request.         6.04  Company Documents; Proceedings; etc.                 (a)  On the Effective Date, the Administrative Agent shall have received a certificate  from each Credit Party, dated the Effective Date, signed by the chairman of the board, the chief  executive officer, the chief financial officer, the president or any vice president of such Credit Party,  and attested to by the secretary or any assistant secretary of such Credit Party, in the form of Exhibit E  with appropriate insertions, together with copies of the certificate or articles of incorporation and by-  laws (or other equivalent organizational documents), as applicable, of such Credit Party and the  resolutions of such Credit Party referred to in such certificate, and each of the foregoing shall be in  form and substance reasonably acceptable to the Administrative Agent.                 (b)  On the Effective Date, the Administrative Agent shall have received all  information and copies of all documents and papers, including board (or equivalent) resolutions,  governmental approvals, good standing certificates and bring-down telegrams or facsimiles, if any,                                            84  #93457508v14

 

 which the Administrative Agent reasonably may have requested in connection therewith, such  documents and papers where appropriate to be certified by proper Business or Governmental  Authorities.        6.05   Material Adverse Change, Approvals.                 (a)  Since December 31, 2015, nothing shall have occurred which has had, or could  reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.                 (b)  On or prior to the Effective Date, all necessary governmental (domestic and  foreign) and material third party approvals and/or consents in connection with this Agreement, the other  related transactions contemplated hereby and the granting of Liens under the Credit Documents shall  have been obtained and remain in effect, and all applicable waiting periods with respect thereto shall  have expired without any action being taken by any competent authority which restrains, prevents or  imposes materially adverse conditions upon the consummation of any such transaction.  On the  Effective Date, there shall not exist any judgment, order, injunction or other restraint issued or filed or a  hearing seeking injunctive relief or other restraint pending or notified prohibiting or imposing  materially adverse conditions upon the execution and performance of this Agreement and the other  Credit Documents.        6.06   Litigation.  On the Effective Date, there shall be no actions, suits or proceedings pending or threatened (a) with respect to this Agreement or any other Credit Document, or (b) which has had, or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.         6.07  Intercreditor Agreement.  The Intercreditor Agreement shall be in full force and effect and no party thereto shall be in breach of any of the provisions thereof.         6.08  Security Agreement.  On the Effective Date, each Credit Party shall have duly authorized, executed and delivered the Security Agreement in the form of Exhibit F (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”), together with:                 (a)  proper financing statements (Form UCC-1 or the equivalent) fully authorized for  filing under the UCC or other appropriate filing offices of each jurisdiction as may be necessary or, in  the reasonable opinion of the Collateral Agent, desirable, to perfect the security interests purported to  be created by the Security Agreement;                 (b)  subject to the Intercreditor Agreement, delivery of (i) all certificates or other   instruments (to the extent issuable, including by amending any applicable governing documents, in   certificate form) representing all such Equity Interests required to be delivered to the Collateral Agent   pursuant to the Security Agreement, together with undated stock powers or other instruments of transfer   with respect thereto endorsed in blank and (ii) all promissory notes required to be delivered to the   Collateral Agent pursuant to the Security Agreement, together with undated instruments of transfer with   respect thereto endorsed in blank;                                             85  #93457508v14

 

               (c)  delivery of a completed Collateral Questionnaire dated the Effective Date and  executed by an Authorized Officer of each Credit Party, together with all attachments contemplated  thereby, including the results of a recent search, by a Person reasonably satisfactory to the Collateral  Agent, of all effective UCC financing statements (or equivalent filings) made with respect to any  personal property the creation of security interests in which is governed by the UCC of any Credit Party  in the jurisdictions specified in the Collateral Questionnaire, together with copies of all such filings  disclosed by such search;                 (d)  evidence of the completion of all other recordings and filings of, or with respect  to, the Security Agreement as may be necessary to perfect and protect the security interests intended to  be created by the Security Agreement to the extent required thereby; and                 (e)  evidence that all other actions necessary to perfect and protect the security  interests purported to be created by the Security Agreement have been taken, and the Security  Agreement shall be in full force and effect.        6.09   Financial Statements.  Financial StatementsOn or prior to the Effective Date, the Administrative Agent shall have received true and correct copies of the historical financial statements referred to in Section 8.05(a), which shall be in form and substance reasonably satisfactory to the Administrative Agent.         6.10  Solvency Certificate; Insurance Certificates.  On the Effective Date, the Administrative Agent shall have received:                 (a)  a solvency certificate from the chief financial officer of the Company in the  form   of Exhibit G; and                 (b)  certificates of liability insurance of the Credit Parties complying with the  requirements of Section 9.03 (c), in form and substance reasonably satisfactory to the Administrative  Agent and naming the Collateral Agent as an additional insured.        6.11   Fees, etc.  .  On the Effective Date, the Borrowers shall have paid to the Administrative Agent, the Lead Arrangers, the Collateral Agent and each Lender all costs, fees and expenses (including reasonable legal fees and expenses) and other compensation contemplated hereby payable to the Administrative Agent, the Lead Arrangers, the Collateral Agent or such Lender to the extent then due.         6.12  Initial Borrowing Base Certificate; Excess Availability.                 (a)  On the Effective Date, the Administrative Agent and the Collateral Agent shall   have received the initial Borrowing Base Certificate meeting the requirements of Section 9.01(j).                 (b)  On the Effective Date and after giving effect to the Transaction (and the Credit  Events hereunder on such date), Excess Availability (after giving effect to any loans made, and Letters  of Credit issued on the Effective Date) shall equal or exceed $25,000,000 and the Company shall have  delivered an officer’s certificate from its chief financial officer demonstrating in reasonable detail such  Excess Availability.                                            86  #93457508v14

 

      6.13   Field Examinations; etc.         On or prior to the Effective Date, the Company shall have provided to the Administrative Agent and the Collateral Agent a collateral examination of the Accounts and Inventory and related accounts, in each case, in scope, and from a third-party consultant, reasonably satisfactory to the Administrative Agent and the Collateral Agent, and the results of such collateral examination shall be in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent.         6.14  Patriot Act.  PATRIOT Act. The Administrative Agent and the Lenders shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti- money laundering rules and regulations, including the PATRIOTPatriot Act 3 Business Days prior to the Effective Date.         6.15  Federal Reserve Board.        All Loans and all other financings to the Borrowers (and all guaranties thereof and security therefor), as well as the Transaction and the consummation thereof, shall be in compliance with all applicable requirements of law, including Regulations T, U and X of the Federal Reserve Board.  SECTION 7.   Conditions Precedent to All Credit Events.  .     The obligation of each Lender (including the Swingline Lender) to make Loans (including Loans made on the Effective Date), and the obligation of each Issuing Lender to issue Letters of Credit (including Letters of Credit issued on the Effective Date), are subject, at the time of each such Credit Event (except as hereinafter indicated), to the occurrence of the Effective Date and the satisfaction of the following conditions:        7.01   No Default; Representations and Warranties.  .     At the time of each such Credit Event and also after giving effect thereto (a) there shall exist no Default or Event of Default and (b) all representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of such Credit Event (it being understood and agreed that (i) 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 (ii) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on any such date).         7.02  Notice of Borrowing; Letter of Credit Request.                 (a)  Prior to the making of each Loan (other than a Swingline Loan or a Revolving  Loan made pursuant to a Mandatory Borrowing), the Administrative Agent shall have received a Notice  of Borrowing meeting the requirements of Section 2.03(a).  Prior to the making of each Swingline  Loan, the Swingline Lender shall have received the notice referred to in Section 2.03(b)(i) (a “Notice of  Swingline Loan”).                                             87  #93457508v14

 

               (b)  Prior to the issuance of each Letter of Credit, the Administrative Agent and the  respective Issuing Lender shall have received a Letter of Credit Request meeting the requirements of  Section 3.03(a).                 (c) In the event that, after giving effect to the making of any Loan or Swingline Loan or  the issuance of a Letter of Credit contemplated by a Notice of Borrowing, Notice of Swingline Loan or  Letter of Credit Request, as applicable, the Aggregate Exposure would exceed the Borrowing Base  determined as if clause (i) of the definition thereof were $0.00, the Notice of Borrowing, Notice of  Swingline Loan or Letter of Credit Request, as applicable, shall also require that applicable Borrower  certify as to the aggregate amount of Unrestricted cash and Unrestricted Qualified Cash Equivalents  eligible for inclusion in the Borrowing Base pursuant to clause (i) of the definition thereof as of the date  of such notice or request (but without taking into account the proceeds of any Loan or Swingline Loan).        7.03   Borrowing Base Limitations.  .     Notwithstanding anything to the contrary set forth herein (but subject to Section 2.01(e)), it shall be a condition precedent to each Credit Event that after giving effect thereto (and the use of the proceeds thereof):                 (a)  the Aggregate Exposure would not exceed 100% (or, during an Agent Advance  Period 110%) of the Borrowing Base at such time; and                 (b)  the Aggregate Exposure at such time would not exceed the Total Revolving Loan  Commitment at such time.        7.04   Affiliated Lender Conditions.  .     So long as any Lender is an Affiliated Lender, it shall be a condition precedent to the obligation of each Non-Affiliated Lender to honor any request for a Borrowing of Revolving Loans that each Affiliated Lender shall have made its pro rata share (determined in accordance with Section 2.07) of the principal amount of Revolving Loans so requested available to the Administrative Agent in immediately available funds.         The acceptance of the benefits of each Credit Event shall constitute a representation and warranty by the Credit Parties to the Administrative Agent and each of the Lenders that all the conditions specified in Section 6 (with respect to the occurrence of the Effective Date and Credit Events on the Effective Date) and in this Section 7 (with respect to the occurrence of the Effective Date and Credit Events on or after the Effective Date) and applicable to the occurrence on the Effective Date and such Credit Event are satisfied as of that time.  All of the Notes, certificates, legal opinions and other documents and papers referred to in Section 6 and in this Section 7, unless otherwise specified, shall be delivered to the Administrative Agent at the Notice Office for the account of each of the Lenders and, shall be in form and substance reasonably satisfactory to the Administrative Agent.         Notwithstanding  anything to the contrary in this Agreement (including Section 7.04), the Lenders and other parties hereto agree that the Administrative Agent shall have no liability to the Lenders or any other Person for, and each Lender and other party hereto expressly waives any right of action whatsoever arising from, the Administrative Agent’s honoring of a request for a Borrowing of Revolving Loans prior to satisfaction of the condition precedent set forth in Section 7.04 at any time when there is an Affiliated Lender.  In addition, each Credit Party and Lender agrees that any action taken by the Administrative Agent in honoring a request for a Borrowing prior to satisfaction of the condition precedent set forth in Section 7.04 at any time there is an Affiliated Lender shall be subject to the                                            88  #93457508v14

 

indemnities set forth in Sections 12.06 and 13.01 and that the honoring of such request at such time shall not constitute gross negligence or willful misconduct.  SECTION 8.   Representations and Warranties.        In order to induce the Lenders to enter into this Agreement and to make the Loans, and issue (or participate in) the Letters of Credit as provided herein, each Credit Party makes the following representations and warranties, in each case after giving effect to the Transaction, all of which shall survive the execution and delivery of this Agreement and the Notes and the making of the Loans and the issuance of the Letters of Credit, with the occurrence of the Effective Date and each Credit Event on or after the Effective Date being deemed to constitute a representation and warranty that the matters specified in this Section 8 are true and correct in all material respects on and as of the Effective Date and on the date of each Credit Event (it being understood and agreed that (a) 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 (b) any representation or warranty that is qualified by “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects).        8.01   Company Status.        Each of the Credit Parties and each of their respective Subsidiaries (a) is a duly organized and validly existing Business in good standing under the laws of the jurisdiction of its organization, (b) has the Business power and authority to own its property and assets and to transact the business in which it is engaged and presently proposes to engage and (c) is duly qualified and is authorized to do business and is in good standing in each jurisdiction where the ownership, leasing or operation of its property or the conduct of its business requires such qualifications except, in the case of this clause (c), for failures to be so qualified or authorized which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.        8.02   Power and Authority.        Each Credit Party has the Business power and authority to execute, deliver and perform the terms and provisions of each of the Credit Documents to which it is party and has taken all necessary Business action to authorize the execution, delivery and performance by it of each of such Credit Documents.  Each Credit Party has duly executed and delivered each of the Credit Documents to which it is party, and each of such Credit Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).        8.03   No Violation.        Neither the execution, delivery or performance by any Credit Party of the Credit Documents to which it is a party, nor compliance by it with the terms and provisions thereof, (a) will contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or Governmental Authority, except for contraventions which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (b) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents, the Secured Notes Security Documents and, the Refinancing Notes Security Documents and the Qualified Secured Debt Documents) upon any of the property or assets of any Credit Party or any of their respective Subsidiaries pursuant to the terms of any indenture, mortgage, deed of                                            89  #93457508v14

 

trust, credit agreement or loan agreement, or any other agreement, contract or instrument, in each case to which any Credit Party or any of their respective Subsidiaries is a party or by which it or any its property or assets is bound or to which it may be subject including the Secured Notes Indenture, except for conflicts, breaches, defaults or impositions of Liens which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, or (c) will violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or bylaws (or equivalent organizational documents), as applicable, of any Credit Party or any of their respective Subsidiaries.         8.04  Approvals.  No material order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except for (x) those that have otherwise been obtained or made on or prior to the Effective Date and which remain in full force and effect on the Effective Date and (y) filings which are necessary to perfect the security interests created or intended to be created under the Security Documents, or exemption by, any Governmental Authority is required to be obtained or made by, or on behalf of, any Credit Party to authorize, or is required to be obtained or made by, or on behalf of, any Credit Party in connection with, (a) the execution, delivery and performance of any Credit Document or (b) the legality, validity, binding effect or enforceability of any such Credit Document.         8.05  Financial Statements; Financial Condition; Undisclosed Liabilities.                 (a)  (i)    The audited consolidated balance sheet of the Company at December 31,   2015 and December 31, 2014 and the related consolidated statements of income and cash flows and   changes in shareholders’ equity of the Company for the Fiscal Years ended on such dates, in each case   furnished to the Lenders prior to the Effective Date, present fairly in all material respects the   consolidated financial position of the Company at the date of said financial statements and the results   for the respective periods covered thereby and (ii) the unaudited consolidated balance sheet of the   Company at June 30, 2016 and the related consolidated statements of income and cash flows and   changes in shareholders’ equity of the Company for the three-month period ended on such date,   furnished to the Lenders prior to the Effective Date, present fairly in all material respects the   consolidated financial condition of the Company at the date of said financial statements and the results   for the period covered thereby, subject to normal year end adjustments.  All such financial statements   have been prepared in accordance with GAAP consistently applied except to the extent provided in the   notes to said financial statements and subject, in the case of the unaudited financial statements, to   normal year-end audit adjustments (all of which are of a recurring nature and none of which,   individually or in the aggregate, would be material) and the absence of footnotes.                      (ii)   [Reserved]                 (b)  As of the Effective Date, (i) the sum of the fair value of the assets, at a fair   valuation, of the Credit Parties (taken as a whole) will exceed its or their respective debts, (ii) the sum   of the present fair saleable value of the assets of the Credit Parties (taken as a whole) will exceed its or   their respective debts, (iii) the Credit Parties (taken as a whole) have not incurred and do not intend to   incur, and do not believe that they will incur, debts beyond their respective ability to pay such debts as   such debts mature, and (iv) the Credit Parties (taken as a whole) will have sufficient capital with which   to conduct their respective businesses.  For purposes of this Section 8.05(b), “debt” means any liability   on a claim, and “claim” means (A) right to payment, whether or not such a right is reduced to judgment,   liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,   secured, or unsecured or (B) right to an equitable remedy for breach of performance if such breach   gives rise to a payment, whether or not such right to an equitable remedy is reduced to judgment, fixed,   contingent, matured, unmatured, disputed, undisputed, secured or unsecured.  The amount of contingent   liabilities at any time shall be computed as the amount that, in the light of all the facts and                                            90  #93457508v14

 

 circumstances existing at such time, represents the amount that can reasonably be expected to become  an actual or matured liability.                 (c)  Except as fully disclosed in the financial statements delivered pursuant to Section  8.05(a), there were as of the Effective Date no liabilities or obligations with respect to the Company or  any of its Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or otherwise  and whether or not due) which, either individually or in the aggregate, could reasonably be expected to  be material to the Company and its Subsidiaries taken as a whole.  As of the Effective Date, no Credit  Party knows of any basis for the assertion against it or any of its Subsidiaries of any liability or  obligation of any nature whatsoever that is not fully disclosed in the financial statements delivered  pursuant to Section 8.05(a) or referred to in the immediately preceding sentence which, either  individually or in the aggregate, could reasonably be expected to be material to the Credit Parties and  their respective Subsidiaries taken as a whole.                 (d)  Since December 31, 2015, nothing has occurred that has had, or could reasonably  be expected to have, either individually or in the aggregate, a Material Adverse Effect.        8.06   Litigation.        Except as (and to the extent) disclosed in Schedule 8.06, there are no actions, suits or proceedings pending or, to the knowledge of any Credit Party, threatened (a) with respect to any Credit Document or (b) that has had, or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.         8.07  True and Complete Disclosure.  As of the Effective Date, all factual information (taken as a whole) furnished by or on behalf of any Credit Party in writing to the Administrative Agent or any Lender (including all information contained in the Credit Documents) for purposes of or in connection with this Agreement, the other Credit Documents or any transaction contemplated herein or therein is true and accurate in all material respects and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided, it being understood and agreed that for purposes of this Section 8.07, such factual information shall not include any projections or any pro forma financial information.         8.08  Use of Proceeds; Margin Regulations.                 (a)  All proceeds of the Loans will be used for Capital Expenditures and the working  capital and general corporate (or equivalent) purposes of the Credit Parties and their Subsidiaries;  provided, that, the proceeds of Swingline Loans shall not be used to refinance then outstanding   Swingline Loans.                 (b)  No part of any Credit Event (or the proceeds thereof) will be used to purchase or   carry any Margin Stock or to extend credit for the purpose of purchasing or carrying any Margin Stock.   Neither the making of any Loan nor the use of the proceeds thereof nor the occurrence of any other   Credit Event will violate or be inconsistent with the provisions of Regulation T, U or X.         8.09  Tax Returns and Payments.        (a) Each of the Credit Parties and each of their respective Subsidiaries has timely filed or caused to be timely filed with the appropriate taxing authority all federal income tax returns and other material                                            91  #93457508v14

 

returns, statements, forms and reports for taxes (the “Returns”) required to be filed by, or with respect to the income, properties or operations of, any Credit Party and/or any of their respective Subsidiaries, (b) the Returns accurately reflect in all material respects all liability for taxes of the Credit Parties and their respective Subsidiaries, as applicable, for the periods covered thereby, (c) each of the Credit Parties and each of their respective Subsidiaries has paid or caused to be paid all taxes and assessments payable by it which have become due, other than those that are immaterial or those that are being contested in good faith and adequately disclosed and fully provided for on the financial statements of the Company in accordance with GAAP, and (d) there is no material action, suit, proceeding, investigation, audit or claim now pending or threatened in writing by any taxing authority regarding any material taxes relating to any Credit Party or any of their respective Subsidiaries.  As of the Effective Date, no Credit Party and none of their respective Subsidiaries has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of any Credit Party or any of their respective Subsidiaries.        8.10   Compliance with ERISA.                 (a)  Except as could not reasonably be expected to have, either individually or in the   aggregate, a Material Adverse Effect:  (i) each Plan is in compliance in form and operation with its   terms and with ERISA and the Code (including the Code provisions compliance with which is   necessary for any intended favorable tax treatment) and all other applicable laws and regulations; (ii)   each Plan (and each related trust, if any) which is intended to be qualified under Section 401(a) of the   Code has received a favorable determination letter from the IRS to the effect that it meets the   requirements of Sections 401(a) and 501(a) of the Code covering all applicable tax law changes or is   comprised of a master or prototype plan that has received a favorable opinion letter from the IRS, and   to the knowledge of any Credit Party or any of their respective Subsidiaries, nothing has occurred since   the date of such determination that would reasonably be expected to adversely affect such determination   (or, in the case of a Plan with no determination, to the knowledge of any Credit Party or any of their   respective Subsidiaries, nothing has occurred that would reasonably be expected to adversely affect the   issuance of a favorable determination letter or otherwise adversely affect such qualification); and (iii)   no ERISA Event has occurred, or is reasonably expected to occur.                 (b)  There exists no Unfunded Pension Liability with respect to any Plan, which  either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.                 (c)  Except as could not reasonably be expected to have, either individually or in the  aggregate, a Material Adverse Effect:  (i) no Multiemployer Plan is insolvent; (ii)  none of the Credit  Parties or any of their respective Subsidiaries or any ERISA Affiliate has incurred a complete or partial  withdrawal from any Multiemployer Plan; and (iii) none of the Credit Parties, any of their respective  Subsidiaries, or any of their respective ERISA Affiliates would incur any withdrawal liability if any of  them were to withdraw in a complete withdrawal as of the date this assurance is given or deemed given.                 (d)  Except as could not reasonably be expected to have, either individually or in the  aggregate, a Material Adverse Effect, there are no actions, suits or claims pending against or involving  a Plan (other than routine claims for benefits) or, to the knowledge of any Credit Party, which would  reasonably be expected to be asserted successfully against any Plan and, if so asserted successfully,  could reasonably be expected either singly or in the aggregate to result in liability.                 (e)  Except as could not reasonably be expected to have, either individually or in the   aggregate, a Material Adverse Effect, the Credit Parties, their respective Subsidiaries and any ERISA   Affiliate have made all material contributions to or under each Plan and Multiemployer Plan required   by law within the applicable time limits prescribed thereby, the terms of such Plan or Multiemployer                                            92  #93457508v14

 

 Plan, respectively, or any contract or agreement requiring contributions to a Plan or Multiemployer Plan  save where any failure to comply, individually or in the aggregate, could not reasonably be expected to   result in liability.                 (f)  Except as could not reasonably be expected to have, either individually or in the   aggregate, a Material Adverse Effect:  (i) no Plan which is subject to Section 412 of the Code or Section   302 of ERISA has applied for or received an extension of any amortization period, within the meaning   of Section 412 of the Code or Section 303 or 304 of ERISA; (ii) the Credit Parties, their respective   Subsidiaries and any ERISA Affiliate have not ceased operations at a facility so as to become subject to   the provisions of Section 4068(a) of ERISA, withdrawn as a substantial employer so as to become   subject to the provisions of Section 4063 of ERISA or ceased making contributions to any Plan subject   to Section 4064(a) of ERISA to which it made contributions; (iii) none of the Credit Parties, their   respective Subsidiaries or any ERISA Affiliate have incurred or reasonably expect to incur liability to   the PBGC; (iv) no lien imposed under the Code or ERISA on the assets of the Credit Parties, their   respective Subsidiaries or any ERISA Affiliate exists or is likely to arise on account of any Plan; and   (v) none of the Credit Parties, their respective Subsidiaries or any ERISA Affiliate has any liability   under Section 4069 or 4212(c) of ERISA.                 (g)  Except as could not reasonably be expected to have, either individually or in the   aggregate, a Material Adverse Effect:  (i) each Foreign Pension Plan has been maintained in compliance   with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and   orders and has been maintained, where required, in good standing with applicable regulatory   authorities; (ii) all contributions required to be made with respect to a Foreign Pension Plan have been   timely made; (iii) neither any Credit Party nor any of their respective Subsidiaries has incurred any   obligation in connection with the termination of, or withdrawal from, any Foreign Pension Plan; and   (iv) the present value of the accrued benefit liabilities (whether or not vested) under each Foreign   Pension Plan, determined as of the end of the Credit Parties’ most recently ended fiscal year on the   basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the   assets of such Foreign Pension Plan allocable to such benefit liabilities.         8.11  Security Documents.                 (a)  The provisions of the Security Agreement are effective to create in favor of the  Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in  all right, title and interest of the Credit Parties in all of the Security Collateral described therein, and the  Collateral Agent, for the benefit of the Secured Parties, has (or within 10 days following the Effective  Date will have) a fully perfected security interest in all right, title and interest in all of the Security  Collateral described therein (to the extent required by the Security Agreement), subject to no Liens  other than Permitted Liens (it being understood that the Permitted Liens described in Section 10.01(d)  are subject to the terms of the Intercreditor Agreement).                 (b)  Each Mortgage creates, as security for the obligations purported to be secured  thereby, a valid and enforceable perfected security interest in and mortgage lien on the respective  Mortgaged Property in favor of the Collateral Agent (or such other trustee as may be required or desired  under local law) for the benefit of the Secured Parties, subject to no Liens other than Permitted Liens (it  being understood that the Permitted Liens described in Section 10.01(d) are subject to the terms of the  Intercreditor Agreement).        8.12   Properties.                                             93  #93457508v14

 

      .  All Real Property owned or leased by any Credit Party or any of their respective Subsidiaries as of the Effective Date (except for such Real Property that constitutes Excluded Assets), and the nature of the interest therein, is correctly set forth in Schedule 8.12.  Each of the Credit Parties and each of their respective Subsidiaries, as applicable, has (i) good and valid insurable title to the Mortgaged Property owned by it in fee (including all buildings, fixtures and improvements located thereon), and (ii) good and indefeasible title to all other material Real Property owned by it in fee, including all material Real Property reflected in the most recent historical balance sheets referred to in Section 8.05(a) (except as sold or otherwise disposed of since the date of such balance sheet in the ordinary course of business or as permitted by the terms of this Agreement), in each case free and clear of all Liens, other than Permitted Liens.  Each of the Credit Parties and each of their respective Subsidiaries has a valid leasehold interest in the material Real Property leased by it free and clear of all Liens other than Permitted Liens. Each of the Credit Parties and each of their respective Subsidiaries has materially complied with all obligations under all material Real Property leases to which it is a party and enjoys peaceful and undisturbed possession under all such material Real Property leases.         8.13  Capitalization.  .  On the Effective Date, the authorized capital stock of the Credit Parties consists of the number of shares of capital stock, at a par value per share (if applicable), with the number of which shares are issued and outstanding (if applicable), in each case as set forth on Schedule 8.13.  All such outstanding capital stock has been duly and validly issued, are fully paid and non-assessable and have been issued free of preemptive rights, except as otherwise provided in the Partnership Agreement.  As of the Effective Date, except as set forth on Schedule 8.13 hereto, no Credit Party has outstanding any capital stock or other securities convertible into or exchangeable for its capital stock or any rights to subscribe for or to purchase, or any options for the purchase of, or any agreement providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating to, its capital stock or any stock appreciation or similar rights.         8.14  Subsidiaries.        On and as of the Effective Date, the Credit Parties have no Subsidiaries other than those Subsidiaries listed on Schedule 8.14.  Schedule 8.14 sets forth, as of the Effective Date, the percentage ownership (direct and indirect) of the Credit Parties in each class of capital stock or other Equity Interests of each of their respective Subsidiaries and also identifies the direct owner thereof.  All outstanding shares of Equity Interests of each Subsidiary of any Credit Party have been duly and validly issued, are fully paid and non-assessable and have been issued free of preemptive rights.  No Subsidiary of any Credit Party has outstanding any securities convertible into or exchangeable for its Equity Interests or outstanding any right to subscribe for or to purchase, or any options or warrants for the purchase of, or any agreement providing for the issuance (contingent or otherwise) of or any calls, commitments or claims of any character relating to, its Equity Interests or any stock appreciation or similar rights.        8.15   Compliance with Statutes, etc.        Each of the Credit Parties and each of their respective Subsidiaries is in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of its business and the ownership of its property, except such non- compliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.        8.16   Governmental Regulation.                                            94  #93457508v14

 

      No Credit Party nor any of its Subsidiaries is subject to regulation under the Federal Power Act or the Investment Company Act or under other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable.  No Credit Party or any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.        8.17   Borrowing Base Calculation.        The calculation by the Company of the Borrowing Base and the valuation thereunder is complete and accurate in all material respects.        8.18   Environmental Matters.                 (a)  Except as could not reasonably be expected to have, either individually or in the   aggregate, a Material Adverse Effect:  (i) each of the Credit Parties and each of their respective   Subsidiaries is and has been in compliance with all applicable Environmental Laws and has obtained,   maintained and renewed, and is and has been in compliance with the terms of any permits, licenses,   franchises, certificates, approvals and other similar authorizations of Governmental Authorities required   under Environmental Laws (“Environmental Permits”); (ii) there are no Environmental Claims pending   or to the knowledge of any Credit Party, threatened, against any Credit Party or any of their respective   Subsidiaries; (iii) no Lien, other than a Permitted Lien, has been recorded or to the knowledge of any   Credit Party, threatened under any Environmental Law with respect to any Real Property owned, leased   or operated by any Credit Party or any Subsidiary; (iv) no Credit Party nor any of their respective   Subsidiaries has agreed in writing to assume or accept responsibility for any liability of any other   Person under any Environmental Law; and (v) there is no obligation or liability of any Credit Party or   any of their respective Subsidiaries relating to any Environmental Law, Environmental Permit or   Hazardous Material, and there are no facts, circumstances, conditions or occurrences that could   reasonably be expected to give rise to any Environmental Claim related to any Credit Party or any of   their respective Subsidiaries or any such liability or obligation.                 (b)  No Credit Party nor any of their respective Subsidiaries has received any letter or   request for information under Section 104(e) of the Comprehensive Environmental Response,   Compensation, and Liability Act (42 U.S.C.  § 9601, et seq.) or any comparable state law with regard to   any matter that could reasonably be expected, individually or in the aggregate, to result in a Material   Adverse Effect.         8.19  Employment and Labor Relations.        Neither any Credit Party nor any of its respective Subsidiaries is engaged in any unfair labor practice that could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.  There is (i) no unfair labor practice complaint pending against any Credit Party or any of their respective Subsidiaries or, to the knowledge of any Credit Party, threatened against any of them, before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against any Credit Party or any of their respective Subsidiaries or, to the knowledge of any Credit Party, threatened against any of them, (ii) no strike, labor dispute, slowdown or stoppage pending against any Credit Party or any of their respective Subsidiaries or, to the knowledge of any Credit Party, threatened against any Credit Party or any of their respective Subsidiaries, (iii) no union representation question exists with respect to the employees of any Credit Party or any of their respective Subsidiaries, (iv) no equal employment opportunity charges or other claims of employment discrimination are pending or, to any Credit Party’s knowledge, threatened                                            95  #93457508v14

 

against any Credit Party or any of their respective Subsidiaries, and (v) no wage and hour department investigation has been made of any Credit Party or any of their respective Subsidiaries, except (with respect to any matter specified in clauses (i) – (v) above, either individually or in the aggregate) such as could not reasonably be expected to have a Material Adverse Effect.         8.20  Intellectual Property, etc.        Each of the Credit Parties and each of their respective Subsidiaries owns or has the right to use all the patents, trademarks, permits, domain names, service marks, trade names, copyrights, licenses, franchises, inventions, trade secrets, proprietary information and know-how of any type, whether or not written (including, but not limited to, rights in computer programs and databases) and formulas, or rights with respect to the foregoing, used in the conduct of its business, without any known conflict with the rights of others which, or the failure to own or have which, as the case may be, could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.        8.21   Indebtedness.        Schedule 8.21 sets forth a list of all Indebtedness of the Credit Parties and their respective Subsidiaries as of the Effective Date and which is to remain outstanding after giving effect to the Transaction (excluding (a) the Obligations and (b) the Secured Notes) (all such non-excluded Indebtedness, “Existing Indebtedness”), in each case showing the aggregate principal amount thereof and the name of the respective borrower and guarantors thereof.        8.22   Insurance.        Schedule 8.22 sets forth a listing of all insurance maintained by the Company and its Subsidiaries as of the Effective Date, with the amounts insured (and any deductibles) set forth therein.        8.23   Sanctions and Anti-Corruption Laws.        None of the Company or any of its Subsidiaries, nor, to the knowledge of the Company, any director, officer, employee or agent of the Company or any of its Subsidiaries that, in each case, will act in any capacity in connection with or benefit from the credit facility established hereby are: (i) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control  or the U.S. State Department, the United Nations Security Council, the European Union or Her Majesty’s Treasury (collectively, “Sanctions”), or (ii) located, organized, or resident in a country or territory that is, or whose government is the subject of Sanctions (currently, Crimea, Cuba, Iran, North Korea, Sudan and Syria). The Company and its Subsidiaries are in compliance in all material respects with all applicable Sanctions and with the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”) and all other applicable anti-corruption laws.        8.24   Material Contract.        All Material Contracts in effect on the Effective Date are in full force and effect and no defaults currently exist thereunder other than defaults the consequence of which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.         8.25  No Defaults.        No Credit Party nor any of its Subsidiaries is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual                                            96  #93457508v14

 

Obligations, and no condition exists which, with the giving of notice or lapse of time or both, could constitute such default, except where the consequences, direct or indirect, of such default or defaults, if any, individually or in aggregate had not had, or could not be reasonably expected to have, a Material Adverse Effect.         8.26  [Reserved.]        8.27   Notes.        .  All Obligations hereunder and under the other Credit Documents (including the Guaranty and the Security Documents) are permitted under the Secured Notes Documents. The Secured Notes in all respects constitute “Note Obligations” (as defined in the Intercreditor Agreement) subject to the terms of the Intercreditor Agreement.         8.28  Beneficial Ownership.         As of the Amendment No. 1 Effective Date, the information included in the Beneficial Ownership Certification, if applicable, is true and correct in all material respects.  SECTION 9.   Affirmative Covenants.  Affirmative CovenantsEach Credit Party hereby covenants and agrees that on and after the Effective Date and until the Total Revolving Loan Commitment and all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings (in each case together with interest thereon), Fees and all other Obligations (other than indemnities and expense reimbursement obligations which, in either case, are not then due and payable, and Secured Hedging Obligations and Secured Cash Management Obligations) incurred hereunder and thereunder, are paid in full:         9.01  Information Covenants.  Information Covenants  The Company will furnish to the Administrative Agent (for delivery to each Lender):                 (a)  [Reserved]                 (b)  Quarterly Financial Statements.  Within 45 days after the close of each of the   first three Fiscal Quarters in each Fiscal Year (commencing with the Fiscal Quarter ending September   30, 2016), (i) the consolidated balance sheet of the Company and its Subsidiaries (which, for the   purposes of this Section 9.01(b), may include Unrestricted Subsidiaries in each case to the extent that   such Persons are required to be consolidated with the Company and its Subsidiaries in the Company’s   consolidated financial statements in accordance with GAAP) as at the end of such Fiscal Quarter and   the related consolidated statements of income and stockholders’ equity and statement of cash flows for   such Fiscal Quarter and for the elapsed portion of the Fiscal Year ended with the last day of such Fiscal   Quarter, in each case setting forth comparative figures for the corresponding Fiscal Quarter in the prior   Fiscal Year and comparable budgeted figures for such Fiscal Quarter as set forth in the respective   budget delivered pursuant to Section 9.01(e), all of which shall be certified by an Authorized Officer of   the Company that they fairly present in all material respects in accordance with GAAP the financial   condition of the Company and its Subsidiaries as of the dates indicated and the results of their   operations for the periods indicated, subject to normal year-end audit adjustments and the absence of   footnotes, and (ii) management’s discussion and analysis of the important operational and financial   developments during such Fiscal Quarter; provided, that, if the Company has filed with the SEC its                                            97  #93457508v14

 

 quarterly report on Form 10-Q for the respective Fiscal Quarter containing management’s discussion  and analysis of financial condition and results of operations (which includes the financial condition and  results of operations of the Company and its Subsidiaries) as required by Item 303 of Regulation S-K,  such report shall be deemed to meet the requirement that the Company provide management’s  discussion and analysis of the important operational and financial developments as otherwise required  above for the respective Fiscal Quarter.                 (c)  Annual Financial Statements.  Within 90 days after the close of each Fiscal Year  (commencing with its Fiscal Year ending December 31, 2016), (i) the consolidated balance sheet of the  Company and its Subsidiaries (which, for purposes of this Section 9.01(c), may include Unrestricted  Subsidiaries, in each case to the extent that such Persons are required to be consolidated with the  Company and its Subsidiaries in the Company’s consolidated financial statements in accordance with  GAAP) as at the end of such Fiscal Year and the related consolidated statements of income and  stockholders’ equity and statement of cash flows for such Fiscal Year setting forth, comparative figures  for the preceding Fiscal Year and audited by Grant Thornton LLP or other independent certified public  accountants of recognized national standing, accompanied by a report of such accounting firm (which  report shall be unqualified as to going concern and scope of audit (other than with respect to, or  resulting from, (x) any potential inability to satisfy any financial maintenance covenant on a future date  or in a future period or (y) an upcoming maturity date under Indebtedness that is scheduled to occur  within one year from the time such report and opinion are delivered), and shall state that such  consolidated financial statements fairly present, in all material respects, the consolidated financial  position of the Company and its Subsidiaries as at the dates indicated and the results of their operations  and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent  with prior years (except as otherwise disclosed in such financial statements) and that the audit by such  accountants in connection with such consolidated financial statements has been made in accordance  with auditing standards generally accepted in the United States and, concurrently with the delivery of  the financial statements referred to in this Section 9.01(c), a report of the independent auditors reporting  on such financial statements stating that in connection with their audit, nothing came to their attention  that caused them to believe that the Company failed to comply with the terms, covenants, provisions or  conditions of Section 10.07(a), insofar as they relate to accounting matters, except as may be specified  in such report (it being understood that such report shall be limited to the items that the independent  auditors are permitted to cover in such reports pursuant to their professional standards), and (ii)  management’s discussion and analysis of the important operational and financial developments during  such Fiscal Year; provided, that, if the Company has filed with the SEC its annual report on Form 10-K  for the respective Fiscal Year containing management’s discussion and analysis of financial condition  and results of operations (which includes the financial condition and results of operations of the  Company and its Subsidiaries) as required by Item 303 of Regulation S-K, such report shall be deemed  to meet the requirement that the Company provide management’s discussion and analysis of the  important operational and financial developments as otherwise required above for the respective Fiscal  Year.                 (d)  Management Letters.  If requested by the Administrative Agent or any Lender,   promptly after the Company’s or any of its Subsidiaries’ receipt thereof, a copy of any “management   letter” received from its certified public accountants and management’s response thereto.                 (e)  Budgets.  No later than the 60th day after the close of each Fiscal Year   (commencing with its Fiscal Year ending December 31, 2017), a budget in form reasonably satisfactory   to the Administrative Agent (including (x) budgeted statements of income, sources and uses of cash and   balance sheets for the Company and its Subsidiaries on a consolidated basis and (y) expected timing   and duration of any Major Scheduled Turnaround) for each of the twelve months of such Fiscal Year                                            98  #93457508v14

 

 prepared in detail setting forth, with appropriate discussion, the principal assumptions upon which such  budget is based.                 (f)  Officer’s Certificates.  At the time of the delivery of the financial statements  provided for in Sections 9.01(b) and (c), a compliance certificate from an Authorized Officer of the  Company in the form of Exhibit H certifying on behalf of the Company that, to such officer’s  knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if any  Default or Event of Default has occurred and is continuing, specifying the nature and extent thereof,  which certificate shall set forth in reasonable detail the calculations required to establish whether the  Company and its Subsidiaries were in compliance with the provisions of Section 10.07, at the end of  such Fiscal Quarter or Fiscal Year, as the case may be (setting forth, for the purposes of such certificate,  calculations setting forth the Fixed Charge Coverage Ratio for the Test Period ended on the last day of  such fiscal period irrespective of whether a Compliance Period exists at such time (other than to the  extent set forth above)), at the end of such Fiscal Quarter or Fiscal Year, as the case may be.                 (g)  Notice of Default, Litigation, Facility Disruption and Material Adverse Effect.   Promptly, and in any event within three Business Days after any officer of any Credit Party or any of   their respective Subsidiaries obtains knowledge thereof (or, in the case succeeding clause (iii), no later   than the time by which any Credit Party issues a public press release or files a Form 8-K with the SEC),   notice of (i) the occurrence of any event which constitutes a Default or an Event of Default, (ii) any   litigation or governmental investigation or proceeding pending against any Credit Party or any of their   respective Subsidiaries (x) which, either individually or in the aggregate, has had, or could reasonably   be expected to have, a Material Adverse Effect or (y) with respect to any Credit Document, (iii) any   event at the Coffeyville Facility or the Dubuque Facility which halts or materially disrupts production   for a period of greater than 10 days, or (iv) any other event, change or circumstance that has had, or   could reasonably be expected to have, a Material Adverse Effect.                 (h)  Other Reports and Filings.  Promptly after the filing or delivery thereof, copies of   all financial information, proxy materials and reports, if any, which any Credit Party or any of their   respective Subsidiaries shall (i) publicly file with the Securities and Exchange Commission or any   successor thereto (the “SEC”) or (ii) deliver to holders (or any trustee, agent or other representative   therefor) of any Secured Notes or any of its other material Indebtedness pursuant to the terms of the   documentation governing the same.                 (i)  Environmental Matters.  Promptly after any Credit Party or any of their   respective Subsidiaries obtains knowledge thereof, notice of the following environmental matters, to the   extent that such matters, either individually or when aggregated with all such other environmental   matters, could reasonably be expected to have a Material Adverse Effect:                      (i)    any pending or threatened Environmental Claim against any Credit Party or any of their respective Subsidiaries or any Real Property currently or formerly owned, leased or operated by any Credit Party or any of their respective Subsidiaries;                      (ii)   any condition or occurrence on any Real Property owned, leased or operated by any Credit Party or any of their respective Subsidiaries that could reasonably be expected to cause such real property to be subject to any restrictions on the ownership, lease, occupancy, use or transferability by any Credit Party or any of their respective Subsidiaries of such Real Property under any Environmental Law; or                      (iii)  the taking of any removal, response or remedial action to the extent required by any Environmental Law or any Governmental Authority in response to any Environmental                                            99  #93457508v14

 

Claim or to the Release or threatened Release of any Hazardous Materials on any Real Property currently or formerly owned, leased or operated by any Credit Party or any of their respective Subsidiaries.  All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal, response or remedial action and the Credit Party’s or such Subsidiary’s response thereto.                 (j)  Borrowing Base Certificate.  (i) On the Effective Date, (ii)  unless clause (iii)   below applies, each month, not later than 5:00 P.M. (New York time) on or before the 12th Business   Day of each such month, (iii) during any period in which a Weekly Borrowing Base Period is in effect,   each week, not later than 5:00 P.M. (New York time) on or before the third Business Day of each such   week (or at such other times as the Administrative Agent may request), (iv) at the time of the   consummation of a Permitted Acquisition, (v) at the time of the consummation of a disposition pursuant   to Section 10.02(e) involving assets included in the Borrowing Base in excess of the $5,000,000 and   (vi) at the time any Borrower ceases to be a wholly-owned Subsidiary of the Company or is designated  as an Unrestricted Subsidiary (in each case under clauses (i) -(vi) hereof with supporting calculations in  reasonable detail including, without limitation, with respect to cash balances, accounts receivable,  accounts payable and inventory amounts), a certificate substantially in the form of Exhibit M (each, a   “Borrowing Base Certificate”) shall be prepared as of the last Business Day of the preceding month in  the case of each subsequent Borrowing Base Certificate (or, if any such Borrowing Base Certificate is  delivered more frequently than monthly, as of the last Business Day of the week preceding such  delivery).  Each such Borrowing Base Certificate shall include such other supporting information as  may be reasonably requested from time to time by the Administrative Agent or the Collateral Agent.  Notwithstanding the generality of the foregoing provisions of this clause (j), within five (5) Business  Days of the Effective Date (as such date may be extended from time to time by the Administrative  Agent in its sole discretion), the Company shall be allowed (but not required) to deliver the updated  Borrowing Base Certificate pursuant to Section 5.03(b) that shall be, in form and in substance, in  compliance with requirements of this clause (j) and that shall be prepared as of August 31, 2016 (other  than any cash balances, which shall be as of the date of delivery thereof), which shall be recognized as a  Borrowing Base Certificate for all purposes of this Agreement.                 (k)  Notice of Dominion Period or Compliance Period.  Promptly after any  Authorized Officer of any Credit Party or any of their respective Subsidiaries obtains knowledge  thereof, notice of the commencement of a Dominion Period or a Compliance Period.                 (l)  Past Due Accounts.  At least monthly at the time of delivery of a Borrowing Base  Certificate pursuant to Section 9.01(j), and at any other time promptly upon, and in any event within 10  Business Days after, any request therefor by the Administrative Agent or the Collateral Agent: (i) a  detailed aged trial balance and a detailed summary of all Accounts indicating which Accounts are thirty,  sixty and ninety days past due and listing the names of all Account Debtors, (ii) a detailed listing and a  detailed summary of the Borrowers’ accounts payable indicating which accounts payable are more than  thirty days past due, (iii) detailed inventory listings and a detailed inventory listing summary, and (iv) a  reconciliation of Accounts, accounts payable and inventory to the financial statements delivered  pursuant to clause (b) of this Section 9.01 and to the Borrowing Base Certificate delivered pursuant to  clause (j) of this Section 9.01 (for each fiscal month which is the last fiscal month of a Fiscal Quarter).                 (m)  Annual Collateral Verification.  Each year, at the time of delivery of annual   financial statements with respect to the preceding Fiscal Year pursuant to Section 9.01(c), an officer’s   certificate of an Authorized Officer of the Company (i) either confirming that there has been no   material change in such information since the date of the Collateral Questionnaire delivered on the   Effective Date or the date of the most recent certificate delivered pursuant to this Section 9.01(m)                                            100  #93457508v14

 

 and/or identifying such material changes and (ii) certifying that all Uniform Commercial Code  financing statements (including fixtures filings, as applicable) or other appropriate filings, recordings or  registrations, have been filed of record in each governmental, municipal or other appropriate office in  each jurisdiction identified pursuant to clause (i) above to the extent necessary to protect and perfect the  security interests under the Security Documents for a period of not less than 18 months after the date of  such certificate (except as noted therein with respect to any continuation statements to be filed within  such period).                 (n)  [Reserved].                 (o)  Patriot Act; etc.  Promptly following the Administrative Agent’s or any Lender’s  request therefor, all documentation and other information that the Administrative Agent or such Lender  reasonably requests in order to comply with its ongoing obligations under the applicable “know your  customer” and anti-money laundering rules and regulations, including the Patriot Act and the Beneficial  Ownership Regulation (including, if any Borrower qualifies as a “legal entity customer” under the  Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to such Borrower).                 (p)  Reconciliation.  If the Company has designated any of its Subsidiaries as   Unrestricted Subsidiaries the quarterly and annual financial information required by Sections 9.01(b)   and (c) will then include a reasonably detailed presentation prepared by the Company of the financial   condition and results of operations of the Company and its Subsidiaries separate from the financial   condition and results of operations of the Unrestricted Subsidiaries of the Company.                 (q)  Other Information.  From time to time, such other information or documents  (financial or otherwise) with respect to any Credit Party or any of their respective Subsidiaries as the  Administrative Agent, the Collateral Agent or any Lender (through the Administrative Agent) may  reasonably request.        9.02   Books, Records and Inspections; and Field Examinations and Appraisals.                 (a)  Each of the Credit Parties will, and will cause each of their respective  Subsidiaries to, keep proper books of record and accounts in which full, true and correct entries in  conformity with GAAP and all requirements of law shall be made of all dealings and transactions in  relation to its business and activities.  Each of the Credit Parties will, and will cause each of their  respective Subsidiaries to, permit officers and designated representatives of the Administrative Agent,  any other Agent and, upon the occurrence and during the continuance of any Event of Default, any  Lender (i) to visit and inspect, under guidance of officers of such Credit Party or such Subsidiary, any  of the properties of such Credit Party or such Subsidiary, (ii) to examine the books of account of such  Credit Party or such Subsidiary and discuss the affairs, finances and accounts of such Credit Party or  such Subsidiary with, and be advised as to the same by, its and their officers and independent  accountants and (iii) to verify Eligible Accounts and/or Eligible Inventory, all upon reasonable prior  notice and at such reasonable times and intervals and to such reasonable extent as the Administrative  Agent, any such other Agent or any such Lender may reasonably request.                 (b)  In the case of sub-clauses (x) and (y) below, (i) up to one time in each Fiscal  Year, (ii) if, for any period of 15 consecutive Business Days in any twelve month period, Excess  Availability has been less than 20% of Availability, up to two times in each Fiscal Year during which  any such Business Day was included, (iii) if any Dominion Period is in effect, (A) in the case of sub-  clause (x) below, up to two times in each Fiscal Year, and (B) in the case of sub-clause (y) below, up to  three times in each Fiscal Year, and (iv) at any time that any Event of Default exists, as often as the  Administrative Agent or the Collateral Agent may reasonably request, the Company will, and will cause                                            101  #93457508v14

 

 each of its Subsidiaries to, permit officers and designated representatives of the Administrative Agent   and/or the Collateral Agent or any third-party appraiser or consultant engaged by, and reasonably  satisfactory to, the Administrative Agent and the Collateral Agent, to visit and inspect (at the  Borrowers’ joint and several expense), and the Administrative Agent and/or the Collateral Agent shall  so visit and inspect, under guidance of officers of the Company or such Subsidiary, any of the  properties of the Company or such Subsidiary and to verify the Eligible Accounts and Eligible  Inventory in order to complete (x) an appraisal of the Inventory of the Borrowers and (y) a collateral  examination of the Inventory and Accounts and related accounts of the Borrowers, and in connection  therewith the Company shall provide the Administrative Agent, the Collateral Agent and any field  examiner or appraiser reasonable access to the books and records and the Collateral and shall cooperate  with such field examiner or appraiser with respect to the foregoing.        9.03   Maintenance of Property; Insurance.                 (a)  Each of the Credit Parties will, and will cause each of their respective  Subsidiaries to, (i) keep all property necessary to the business of the Credit Parties and their respective  Subsidiaries in good working order and condition, ordinary wear and tear excepted and subject to the  occurrence of casualty events, (ii) maintain with financially sound and reputable insurance companies  insurance on all such property and against all such risks as is consistent and in accordance with industry  practice for companies similarly situated owning similar properties and engaged in similar businesses as  the Credit Parties and their respective Subsidiaries, and (iii) furnish to the Administrative Agent, upon  its request therefor, full information as to the insurance carried.  In addition to the requirements of the  immediately preceding sentence, the Credit Parties will at all times cause insurance of the types  described in Schedule 8.22 to be maintained (with the same scope of coverage as that described in   Schedule 8.22) at levels which are consistent with their practices immediately before the Effective Date.  Such insurance shall include physical damage insurance on all real and personal property (whether now   owned or hereafter acquired) on an all risk basis and business interruption insurance.  The provisions of   this Section 9.03 shall be deemed supplemental to, but not duplicative of, the provisions of any Security   Documents that require the maintenance of insurance.                 (b)  Subject to clause (g) of this Section 9.03, each of the Credit Parties will, and will   cause each of their respective Subsidiaries to, at all times keep its property insured in favor of the   Collateral Agent, and all policies or certificates (or certified copies thereof) with respect to such   property insurance (i) shall be endorsed to the Collateral Agent’s satisfaction for the benefit of the   Collateral Agent (including, without limitation, by naming the Collateral Agent as a loss payee), (ii)   shall state that such insurance policies shall not be canceled without at least 30 days’ prior written   notice thereof by the respective insurer to the Collateral Agent, and (iii) shall provide that the respective   insurers irrevocably waive any and all rights of subrogation with respect to the Collateral Agent and the   other Secured Parties.                 (c)  Each of the Credit Parties will, and will cause each of their respective   Subsidiaries to, ensure that all policies or certificates (or certified copies thereof) with respect to   liability insurance and any insurance maintained by such Credit Party and/or such Subsidiaries (other   than property insurance covered by clause (b) of this Section 9.03) (i) shall be endorsed to the   Collateral Agent’s satisfaction for the benefit of the Collateral Agent (including, without limitation, by   naming the Collateral Agent as loss payee and/or additional insured) and (ii) shall provide that the   respective insurers irrevocably waive any and all rights of subrogation with respect to the Collateral   Agent and the other Secured Parties.                 (d)  Each of the Credit Parties will, and will cause each of their respective   Subsidiaries to, exercise their commercially reasonable efforts to: (i) ensure that all policies or                                            102  #93457508v14

 

 certificates with respect to liability and other insurance maintained by such Credit Party and/or such  Subsidiaries (other than property insurance covered by clause (b) of this Section 9.03) shall not be  canceled without at least 30 days’ prior written notice thereof by the respective insurer to the Collateral  Agent; and (ii) deliver to the Collateral Agent certificates of insurance evidencing compliance with the   item (i) of this clause (d) in form and substance reasonably satisfactory to the Administrative Agent.                 (e)  If any Credit Party or any of their respective Subsidiaries shall fail to maintain  insurance in accordance with this Section 9.03, or if any Credit Party or any of their respective  Subsidiaries shall fail to so endorse all policies or certificates with respect thereto, the Administrative  Agent shall have the right (but shall be under no obligation) to procure such insurance and the Credit  Parties jointly and severally agree to reimburse the Administrative Agent for all costs and expenses of  procuring such insurance.                 (f)  If at any time the improvements on a Mortgaged Property are located in an area  identified as a special flood hazard area by the Federal Emergency Management Agency or any  successor thereto or other applicable agency, the Credit Parties will, and will cause their respective  Subsidiaries to, at all times keep and maintain flood insurance in an amount sufficient to comply with  the National Flood Insurance Reform Act of 1994 and related legislation (including the regulations of  the Board of Governors of the Federal Reserve System).                 (g)  Promptly after the Effective Date, but in any event no later than 15 days after the  Effective Date, the Credit Parties shall deliver to the Collateral Agent certificates of property insurance  complying with the requirements set forth in clause (b) of this Section 9.03 for the properties of the  Credit Parties, in form and substance reasonably satisfactory to the Administrative Agent, naming the  Collateral Agent as a loss payee and stating that such insurance shall not be canceled without at least 30  days’ prior written notice by the insurer to the Collateral Agent. With respect to property insurance  policies in effect on the Effective Date, the Credit Parties shall not be required to comply with the  obligations set forth in clause (b) of this Section 9.03 until the date when certificates of insurance are  delivered (or shall have been delivered) in accordance with this clause (g).         9.04  Existence; Franchises.  .  Each of the Credit Parties will, and will cause each of their respective Subsidiaries to, do or cause to be done, all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises, licenses, permits, copyrights, trademarks and patents; provided, however, that nothing in this Section 9.04 shall prevent (a) sales of assets and other transactions by any Credit Party or any of their respective Subsidiaries otherwise permittednot prohibited hereunder or (b) the withdrawal by any Credit Party or any of their respective Subsidiaries of its qualification as a foreign Business in any jurisdiction if such withdrawal could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.         9.05  Compliance with Statutes, etc.        Each of the Credit Parties will, and will cause each of their respective Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of its business and the ownership of its property, except such non-compliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.         9.06  Compliance with Environmental Laws.                                            103  #93457508v14

 

               (a)  Each of the Credit Parties will comply, and will cause each of their respective  Subsidiaries to comply, with all Environmental Laws and Environmental Permits, except for such non-  compliances as could not, either individually or in the aggregate, reasonably be expected to have a  Material Adverse Effect, and will promptly pay or cause to be paid all costs and expenses incurred in  connection with such compliance, and will keep or cause to be kept all such Real Property owned,  leased or operated by any Credit Party or any of their respective Subsidiaries free and clear of any Liens  imposed pursuant to such Environmental Laws, other than Permitted Liens.                 (b)  Subject to Section 9.06(c), the Company will deliver to the Administrative Agent  and the Lenders with reasonable promptness, such documents and information as from time to time may  be reasonably requested by Administrative Agent in relation to any matters addressed by this Section  9.06.                 (c)  Right of Access and Inspection.                      (i)    After the receipt by the Administrative Agent or any Lender of any notice of the type described in Section 9.01(i), or if an Event of Default has occurred and is continuing, then, at the reasonable request of the Administrative Agent, the Company will prepare an environmental report reasonably satisfactory to the Administrative Agent with respect to any matter disclosed pursuant to Section 9.01(i) and/or, if an Event of Default has occurred and is continuing with respect to the environmental condition of any owned, leased or operated Real Property or facility of any Credit Party or any Subsidiary thereof (the “Environmental Report”); provided, however, that any such Environmental Report shall not include the taking of samples of air, soil, surface water, groundwater, effluent, and building materials, in, on or under such Real Property or facility unless the Administrative Agent reasonably concludes that such sampling is commercially reasonable and necessary.  Any such sampling shall be conducted by a qualified environmental consulting firm reasonably acceptable to the Administrative Agent.  If an Event of Default has occurred and is continuing, or if the Company does not prepare an Environmental Report or conduct the requested site visits, inspections, sampling, tests and investigations in a reasonably timely manner, the Administrative Agent may, upon prior notice to the Company, retain an environmental consultant, at the Credit Parties’ expense, to prepare an Environmental Report and conduct such sampling as it reasonably concludes is commercially reasonable and necessary. The Credit Parties and their respective Subsidiaries will provide the Administrative Agent and its consultants with access to such Real Property or facility during normal business hours in order to complete any necessary site visits, inspections, tests, investigations or sampling in accordance with this Section 9.06(c).  The Administrative Agent will make commercially reasonable efforts to conduct any such site visits, inspections, sampling, tests and investigations so as to avoid interfering with the operation of such Real Property or facility.                      (ii)   The exercise of the Administrative Agent’s rights under Section 9.06(c)(i) shall not constitute a waiver of any default by the Credit Parties or their respective Subsidiaries and shall not impose any liability on the Administrative Agent or any of the Lenders or any of their respective Affiliates.  In no event will any site visit, observation, test, sampling, inspection or investigation by the Administrative Agent or its consultants be deemed a representation that Hazardous Materials are or are not present in, on or under any of the facilities, or that there has been or will be compliance with any Environmental Law, and the Administrative Agent, the Lenders or any of their respective Affiliates shall not be deemed to have made any representation or warranty to any party regarding the truth, accuracy or completeness of any Environmental Report or other report or findings with regard thereto.  Without express written authorization of the Administrative Agent, which shall not be unreasonably withheld, neither any Credit Party nor any other party shall be entitled to rely on any site visits, inspections, tests, investigations or sampling by or on behalf of by the Administrative Agent or its consultants.  The Administrative Agent, the Lenders and their respective Affiliates owe no duty of care to                                            104  #93457508v14

 

protect any Credit Party or any other party against, or to inform any Credit Party or any other party of, any Hazardous Materials or any other environmental condition.  The Administrative Agent may in its reasonable discretion disclose to any Credit Party or, if so required by law, to any third party, any Environmental Report or other report or findings made as a result of, or in connection with, any site visits, inspections, tests, investigations or sampling by the Administrative Agent or its consultants.  If the Administrative Agent reasonably believes that it is legally required to disclose any such Environmental Report or other report or finding to any third party, then the Administrative Agent shall use its reasonable efforts to give the Company prior notice of such disclosure and afford the Company the opportunity to object or defend against such disclosure at its own and sole cost; provided, that, the failure of the Administrative Agent to give any such notice or afford the Company the opportunity to object or defend against such disclosure shall not result in any liability to the Administrative Agent and Lender, or any of their respective Affiliates.  Each Credit Party acknowledges that it or its Subsidiaries may be obligated to notify relevant Governmental Authorities regarding the results of any site visits, inspections, tests, investigations or sampling by the Administrative Agent or its consultants and that such reporting requirements are site and fact-specific, and are to be evaluated by such Credit Party or Subsidiary without advice or assistance from the Administrative Agent or its consultants, the Lenders or any of their respective Affiliates.  Nothing contained in this Section 9.06(c)(ii) shall be construed as releasing the Administrative Agent or the Lenders from any liability to the extent incurred as a result of their gross negligence or willful misconduct in connection with such site visits, inspections, tests, investigations or sampling performed by the Administrative Agent or its consultants (as determined by a court of competent jurisdiction in a final and non-appealable decision).                      (iii)  If counsel to any Credit Party or any of their respective Subsidiaries reasonably determines that provision to the Administrative Agent of a document otherwise required to be provided pursuant to Section 9.01(i) or Section 9.06(b) (or any other provisions of this Agreement or any other Credit Document relating to environmental matters) would jeopardize an applicable attorney-client or work product privilege pertaining to such document, then the Credit Parties or their respective Subsidiaries shall not be obligated to deliver such document to the Administrative Agent but shall provide the Administrative Agent with a notice identifying the author and recipient of such document and generally describing in reasonable detail the contents of the document.  Upon request of the Administrative Agent, the Credit Parties and their respective Subsidiaries shall take all reasonable steps necessary to provide the Administrative Agent with the factual information contained in any such privileged document.         9.07  ERISA.  .     Except as could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, the Company shall supply to the Administrative Agent (in sufficient copies for all Lenders, if the Administrative Agent so requests);                 (a)  promptly and in any event within 15 days after receiving a request from the  Agent a copy of IRS Form 5500 (including the Schedule B) with respect to a Plan subject to Title IV of   ERISA;                 (b)  promptly and in any event within 30 days after any Credit Party, any Subsidiary   of any Credit Party or any ERISA Affiliate knows or has reason to know that any ERISA Event has   occurred that would reasonably be expected to result in liability to any Credit Party or any Subsidiaries   of any Credit Party, a certificate of the chief financial officer of the Company describing such ERISA   Event and the action, if any, proposed to be taken with respect to such ERISA Event and a copy of any   notice filed with the PBGC or the IRS pertaining to such ERISA Event and any notices received by any   Credit Party, any Subsidiary of any Credit Party or ERISA Affiliate from the PBGC or any other                                            105  #93457508v14

 

 governmental agency with respect thereto; provided, that, in the case of ERISA Events under paragraph  (d) of the definition thereof, the 30-day period set forth above shall be a 10-day period, and, in the case  of ERISA Events under paragraph (b) of the definition thereof, in no event shall notice be given later  than 10 days after the occurrence of the ERISA Event; and                 (c)  promptly, and in any event within 30 days, after becoming aware that any of the  following has occurred if such event is reasonably expected to result in liability to any Credit Party, any  Subsidiary or any ERISA Affiliate, (i) an increase in Unfunded Pension Liabilities (taking into account  only Plans with positive Unfunded Pension Liabilities) since the date the representations hereunder are  given or deemed given, or from any prior notice, as applicable, (ii) an increase since the date the  representations hereunder are given or deemed given, or from any prior notice, as applicable, in  potential withdrawal liability under Section 4201 of ERISA, if any Credit Party, any Subsidiary of any  Credit Party and the ERISA Affiliates were to withdraw completely from any and all Multiemployer  Plans, (iii) any contribution required to made with respect to a Foreign Pension Plan has not been  timely made or (iv) the adoption of any amendment to a Plan which results in an increase in  contribution obligations of any Credit Party or any Subsidiary of any Credit Party, a detailed written  description thereof from the chief financial officer of the Company.        9.08   End of Fiscal Years; Fiscal Quarters.  .     The Company will cause (i) its and each of its Subsidiaries’ Fiscal Years to end on the last day of the period described in the definition of “Fiscal Year” and (ii) its and each of their respective Subsidiaries’ fiscal quarters to end on the last day of each period described in the definition of “Fiscal Quarter”.         9.09  Performance of Obligations.  .  .  Each of the Credit Parties will, and will cause each of their respective Subsidiaries to, perform all of its obligations under the terms of each Contractual Obligation by which it is bound, except such non- performances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.         9.10  Payment of Taxes.  .     Each of the Credit Parties will pay and discharge, and will cause each of their respective Subsidiaries to pay and discharge, all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it prior to the date on which penalties attach thereto, and all lawful claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its properties or assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided, that, no Credit Party and none of their respective Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings if it has maintained adequate reserves with respect thereto in accordance with GAAP.         9.11  Use of Proceeds.  Use of Proceeds.    The Borrowers will use the proceeds of the Loans only as provided in Section 8.08.                                             106  #93457508v14

 

      9.12   Additional Security; Further Assurances; etc.                 (a)  Each of the Credit Parties will, and will cause each other Credit Party to, grant to  the Collateral Agent for the benefit of the Secured Parties security interests in such assets of such Credit  Party and such other Credit Party (other than any Excluded Assets) as are not covered by the original  Security Documents and as may be reasonably requested from time to time by the Administrative Agent  (or otherwise required at such time pursuant to the Intercreditor Agreement) (collectively, the  “Additional Security Documents”).  All such security interests shall be granted pursuant to   documentation reasonably satisfactory in form and substance to the Collateral Agent and shall   constitute valid and enforceable perfected security interests subject to no Liens (except for Permitted   Liens, it being understood that Liens permitted by Section 10.01(d) shall be subject to the terms of the   Intercreditor Agreement).  The Additional Security Documents or instruments related thereto shall have   been duly recorded or filed in such manner and in such places as are required by law to establish,   perfect, preserve and protect the Liens in favor of the Collateral Agent required to be granted pursuant   to the Additional Security Documents and all taxes, fees and other charges payable in connection   therewith shall have been paid in full.                 (b)  Each of the Credit Parties will, and will cause each of the other Credit Parties to,   at the expense of the Credit Parties, make, execute, endorse, acknowledge, file and/or deliver to the   Collateral Agent from time to time such vouchers, invoices, schedules, confirmatory assignments,   conveyances, financing statements, transfer endorsements, certificates, reports, landlord waivers, bailee   agreements, control agreements and other assurances or instruments and take such further steps relating   to the Collateral covered by any of the Security Documents as the Collateral Agent may reasonably   require (to the extent such steps would not be inconsistent with the Security Agreement or the   Mortgages).  Furthermore, each of the Credit Parties will, and will cause the other Credit Parties to,   deliver to the Collateral Agent such opinions of counsel and other related documents as may be   reasonably requested by the Collateral Agent to assure itself that this Section 9.12 has been complied   with.                 (c)  If the Administrative Agent reasonably determines that it or any of the Lenders   are required by law or regulation to have appraisals prepared in respect of any Real Property of the   Credit Parties constituting Collateral, each Credit Party will, at its own expense, provide to the   Administrative Agent appraisals which satisfy the applicable requirements of the Real Estate Appraisal   Reform Amendments of the Financial Institution Reform, Recovery and Enforcement Act of 1989, as   amended, and which shall otherwise be in form and substance reasonably satisfactory to the   Administrative Agent and, if Real Property is then being included in the Borrowing Base, each Lender.                 (d)  Each Credit Party agrees that each action required by clauses (a) through (c) of   this Section 9.12 shall be completed as soon as possible, but in no event later than 90 days after such   action is requested to be taken by the Administrative Agent (as such date may be extended by the   Administrative Agent in its sole discretion); provided, that, in no event will any Credit Party or any of  their respective Subsidiaries be required to take any action that is inconsistent with the Security  Agreement or Mortgages, or any action, other than using its commercially reasonable efforts, to obtain  consents from third parties with respect to its compliance with this Section 9.12.                 (e)  Each Borrower and each Guarantor shall within the time periods specified in  Section 5.03(b) enter into one or more Cash Management Control Agreements as, and to the extent,  required by Section 5.03(b).                                             107  #93457508v14

 

      9.13   Permitted Acquisitions.                 (a)  Subject to the provisions of this Section 9.13 and the requirements contained in  the definition of Permitted Acquisition, the Credit Parties may from time to time effect Permitted  Acquisitions, so long as (in each case except to the extent the Required Lenders otherwise specifically  agree in writing in the case of a specific Permitted Acquisition): (i) the Company shall have given to the  Administrative Agent prior written notice of any Permitted Acquisition, which notice shall describe in  reasonable detail the principal terms and conditions of such Permitted Acquisition, (ii) all  representations and warranties contained herein and in the other Credit Documents shall be true  and  correct in all material respects with the same effect as though such representations and warranties had  been made on and as of the date of such Permitted Acquisition (both before and after giving effect  thereto), unless stated to relate to a specific earlier date, in which case such representations and  warranties shall be true and correct in all material respects as of such earlier date (it being understood  and agreed that any representation or warranty that is qualified by “materiality”, “Material Adverse  Effect” or similar language shall be true and correct in all respects as of any such date); and (iii) the  Payment Conditions are satisfied immediately after (and, in the case of clauses (i) and (ii) of the  definition thereof, immediately before) giving effect to such Permitted Acquisition.                 (b)  AtUnless otherwise designated as an Unrestricted Subsidiary in accordance with  the terms hereof, at the time of each Permitted Acquisition involving the creation or acquisition of a  Subsidiary, or the acquisition of capital stock or other Equity Interest of any Person, the capital stock or   other Equity Interests thereof created or acquired in connection with such Permitted Acquisition shall  be pledged for the benefit of the Secured Parties pursuant to (and to the extent required by) the Security  Agreement.                 (c)  TheUnless otherwise designated as an Unrestricted Subsidiary in accordance  with the terms hereof, the Company will cause each Subsidiary which is formed to effect, or is acquired  pursuant to, a Permitted Acquisition to comply with, and to execute and deliver all of the  documentation as and to the extent required by, Sections 9.12 and 10.12, to the reasonable satisfaction  of the Administrative Agent.        9.14   Landlords’ Agreements, Mortgages Agreements, Bailee Letters and Storage Agreements.  .  Each Credit Party shall timely and fully pay and perform its obligations under all leases and other agreements with respect to each leased location or public warehouse where any Collateral is or may be located or transmitted except to the extent that the same are being contested in good faith.  Each Credit Party shall, and shall cause its Subsidiaries to, provide to the Administrative Agent and the Collateral Agent, promptly after execution thereof, copies of all material storage and similar agreements and material amendments and modifications thereto, between any Borrower or any other Credit Party and any landlord, warehouseman, or other Person that owns or operates any premises or facility where any assets constituting the Borrowing Base having a market value in excess of $5,000,000 are located.         9.15  Real Property Post-Closing Obligations.        Promptly after the Effective Date, but in any event no later than on November 25, 2016, the Credit Parties shall satisfy Real Estate Collateral Requirements.  SECTION 10. Negative Covenants.  .     Each Credit Party hereby covenants and agrees that on and after the Effective Date and until the Total Revolving Loan Commitment and all Letters of Credit have terminated and the Loans, Notes and                                            108  #93457508v14

 

Unpaid Drawings (in each case, together with interest thereon), Fees and all other Obligations (other than any indemnities and expense reimbursement obligations which, in either case are not then due and payable, and Secured Hedging Obligations and Secured Cash Management Obligations) incurred hereunder and thereunder, are paid in full:         10.01 Liens.  .     Each Credit Party will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or intangible) of any Credit Party or any of their respective Subsidiaries, whether now owned or hereafter acquired, or sell any such property or assets subject to an understanding or agreement, contingent or otherwise, to repurchase such property or assets (including sales of accounts receivable with recourse to any Credit Party or any of their respective Subsidiaries), or assign any right to receive income or permit the filing of any financing statement under the UCC or any other similar notice of Lien under any similar recording or notice statute; provided, that, the provisions of this Section 10.01 shall not prevent the creation, incurrence, assumption or existence of the following (Liens described below are herein referred to as “Permitted Liens”):                 (a)  inchoate Liens for (i) taxes, assessments or governmental charges or levies not   yet due and Liens for taxes, assessments or governmental charges or levies being contested in good   faith and by appropriate proceedings for which adequate reserves have been established in accordance   with GAAP and (ii) real estate taxes due but not yet delinquent;                 (b)  Liens in respect of property or assets of any Credit Party or any of their   respective Subsidiaries imposed by law, which were incurred in the ordinary course of business and do   not secure Indebtedness for borrowed money, such asincluding carriers’, warehousemen’s,  materialmen’s and mechanics’ liens and other similar Liens arising in the ordinary course of business,  and (i) which do not in the aggregate materially detract from the value of such Credit Party’s or such  Subsidiary’s property or assets or materially impair the use thereof in the operation of the business of  such Credit Party or such Subsidiary or (ii) which are being contested in good faith by appropriate   proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or   assets subject to any such Lien;                 (c)  Liens in existence on the Effective Date which are listed, and the property subject  thereto described, in Schedule 10.01, plus renewals, replacements and extensions of such Liens;  provided, that, (i) the aggregate principal amount of the Indebtedness, if any, secured by such Liens   does not increase from that amount outstanding at the time of any such renewal, replacement or   extension and (ii) any such renewal, replacement or extension does not encumber any additional assets   or properties of any Credit Party or any of their respective Subsidiaries;                 (d)  (i) Liens created by or pursuant to this Agreement and the Security Documents,   (ii) Liens created by or pursuant to the Secured Notes Indenture and the Secured Notes Security   Documents, (iii) Liens created by or pursuant to the Refinancing Notes Indenture and the Refinancing   Notes Security Documents and (iv) Liens created by or pursuant to the Qualified Secured Debt   Documents (in each case in respect of preceding clauses (ii), (iii) and (iv), subject to the terms of the   Intercreditor Agreement);                 (e)  (i) licenses, sublicenses, leases or subleases granted by any Credit Party or any of   their respective Subsidiaries to other Persons not materially interfering with the conduct of the business   of any Credit Party or any of their respective Subsidiaries and (ii) any interest or title of a lessor,   sublessor or licensor under any lease or license agreement (including any Sale Leaseback permitted by                                            109  #93457508v14

 

 Section 10.02(o)) permitted by this Agreement to which the Borrower or any of its Subsidiaries is a   party;                 (f)  Liens upon assets of the Company or any of its Subsidiaries subject to   CapitalizedFinance Lease Obligations to the extent such CapitalizedFinance Lease Obligations are  permittednot prohibited by Section 10.04(d); provided, that, (i) such Liens only serve to secure the  payment of Indebtedness arising under such CapitalizedFinance Lease Obligation and (ii) the Lien  encumbering the asset giving rise to the CapitalizedFinance Lease Obligation does not encumber any  other asset of the Company or any Subsidiary of the Company (other than after-acquired property that  is (A) affixed or incorporated into the property covered by such Lien and (B) the proceeds and products  thereof);                 (g)  Liens placed upon equipment or machinery improved or acquired after the  Effective Date and used in the ordinary course of business of the Company or any of its Subsidiaries  and pledged at the time of the improvement or acquisition thereof by the Company or such Subsidiary  or within 90 days thereafter to secure Indebtedness incurred to pay all or a portion of the purchase price  thereof or cost to improve or to secure Indebtedness incurred solely for the purpose of financing the  improvement or acquisition of any such equipment or machinery or extensions, renewals or  replacements of any of the foregoing for the same or a lesser amount; provided, that, (i) the  Indebtedness secured by such Liens is permittednot prohibited by Section 10.04(d) and (ii) in all events,  the Lien encumbering the equipment or machinery so improved or acquired does not encumber any  other asset of the Company or any Subsidiary of the Company;                 (h)  easements, rights-of-way, restrictions, encroachments and other similar charges  or encumbrances, and minor title deficiencies, in each case not securing Indebtedness and not materially  interfering with the conduct of the business of any Credit Party or any of their respective Subsidiaries;                 (i)  “protective” Liens granted in connection with sales permittednot prohibited  hereunder that are intended to be “true sales”, or bailment, storage or similar arrangements in which a   counterparty holds title to the assets that are the subject of such transaction, which Liens are intended to   protect such counterparty in the event that such transaction is re-characterized as a secured financing  and attach only to the assets that are subject of such transaction; provided, that, (A) no assets  encumbered by such Liens are commingled with any Eligible Accounts or Eligible Inventory, (B) no  proceeds of sales of such assets are comingled with proceeds of sales of Eligible Accounts or Eligible  Inventory, and (C) no assets encumbered by such Liens constitute Eligible Accounts or Eligible  Inventory;                 (j)  Liens arising out of the existence of judgments or awards not constituting an  Event of Default so long as such Liens are adequately bonded; provided, that, the aggregate amount of  all cash and the Fair Market Value of all other property subject to such Liens does not exceed  $35,000,000 at any time outstanding;                 (k)  statutory and common law landlords’ liens under leases to which the Company or  any of its Subsidiaries is a party and with respect to any leasehold interest where the Company or any of  its Subsidiaries is a lessee, tenant, subtenant or other occupant, mortgages, obligations, liens and other  encumbrances incurred, created, assumed or permitted to exist and arising by, through or under a  landlord or sublandlord of such leased real property encumbering such landlord’s or sublandlord’s  interest in such lease;                 (l)  Liens (other than Liens imposed under ERISA) incurred in the ordinary course of  business in connection with workers compensation claims, unemployment insurance and social security                                            110  #93457508v14

 

 benefits and Liens securing the performance of bids, tenders, leases and contracts in the ordinary course  of business, statutory obligations, surety bonds, performance bonds and other obligations of a like  nature incurred in the ordinary course of business and consistent with past practices (exclusive of  obligations in respect of the payment for borrowed money);                 (m)  Permitted Encumbrances;                 (n)  Liens on property or assets or Equity Interests of a Person acquired pursuant to a  Permitted Acquisition, or on property or assets of a Subsidiary in existence at the time such Subsidiary  is acquired pursuant to a Permitted Acquisition; provided, that, (i) the existence of any Indebtedness  that is secured by such Liens is permitted to existnot prohibited hereunder, and (ii) such Liens are not  incurred in connection with, or in contemplation or anticipation of, such Permitted Acquisition and do   not attach to any other asset of the Company or any of its Subsidiaries (other than after-acquired  property that is (A) affixed or incorporated into the property covered by such Lien and (B) the proceeds  and products thereof);                 (o)  Liens arising out of any conditional sale, title retention, consignment or other  similar arrangements for the sale of goods entered into by the Company or any of its Subsidiaries in the  ordinary course of business to the extent such Liens do not attach to any assets other than the goods  subject to such arrangements;                 (p)  Liens (i) incurred in the ordinary course of business in connection with the  purchase or shipping of goods or assets (or the related assets and proceeds thereof), which Liens are in  favor of the seller or shipper of such goods or assets and only attach to such goods or assets, and (ii) in  favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties  in connection with the importation of goods;                 (q)  subject to the terms of any Cash Management Control Agreement, bankers’  Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents  on deposit in one or more accounts maintained by any Credit Party or any of their respective  Subsidiaries, in each case granted in the ordinary course of business in favor of the bank or banks with  which such accounts are maintained, securing amounts owing to such bank or banks with respect to  cash management and operating account arrangements;                 (r)  Liens granted in the ordinary course of business on the unearned portion of  insurance premiums securing the financing of insurance premiums to the extent the financing is  permitted under Section 10.04;                 (s)  Liens on earnest money deposits made in connection with any letter of intent or   purchase agreement permittednot prohibited hereunder;                 (t)  Liens which arise by operation of law in favor of a Person that is an “interest  owner” that provides crude oil or gas products to the Company or any of its Subsidiaries;                 (u)  Liens on cash or Cash Equivalents securing obligations under Interest Rate  Protection Agreements and Other Hedging Agreements permittednot prohibited hereunder; provided,  that, such cash and Cash Equivalents are held in accounts segregated from any cash, Cash Equivalents  or other assets constituting ABL Priority Collateral;                 (v)  [reserved];                                            111  #93457508v14

 

               (w)  any customary encumbrance or restriction (including customary put and call  arrangements) with respect to Equity Interests of any joint venture (other than in respect of the Equity  Interests of a Credit Party) or similar arrangement pursuant to any joint venture or similar agreement  permittednot prohibited hereunder;                 (x)  Liens encumbering reasonable customary initial deposits and margin deposits  and similar Liens attaching to commodity trading accounts or other brokerage accounts incurred in the  ordinary course of business and not for speculative purposes;                 (y)  Liens (other than Liens on assets included in the Borrowing Base) permitted by  the (i) Cross-Easement Agreement and (ii) the Coke SupplyCoffeyville Master Service Agreement, as  such agreementsagreement may be amended, restated, modified, supplemented and/or replaced from  time to time; provided that any such amendment is not materially more disadvantageous to the   Company and its Subsidiaries than the agreement in effect on the Effective Date;                 (z)  [reserved];                 (aa) Liens deemed to exist in connection with Investments in repurchase agreements   permittednot prohibited hereunder; provided, that, such Liens do not extend to any assets other than the  Cash Equivalents that are the subject of such repurchase agreement;                 (bb) Liens arising from precautionary UCC financing statement filings regarding   operating leases entered into in the ordinary course of business; and                 (cc) Liens on and pledges of the Equity Interest of any Unrestricted Subsidiary or any  joint venture owned by the Company or any Restricted Subsidiary to the extent securing Indebtedness  of such Unrestricted Subsidiary or joint venture, but only to the extent that such Indebtedness is non-  recourse to the Company or any Credit Party; and                 (dd) (cc) additional Liens (other than Liens on ABL Priority Collateral) of the Credit  Parties or any of its Subsidiaries not otherwise permitted by this Section 10.01 that do not secure  obligations in excess of $15,000,000 in the aggregate for all such Liens at any time.  In connection with the granting of Liens of the type described in clauses (c), (e), (f), (g), (i) and (n) of this Section 10.01 by the Company of any of its Subsidiaries, the Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate by it in connection therewith (including by executing appropriate lien releases or lien subordination agreements in favor of the holder or holders of such Liens, in either case solely with respect to the item or items of equipment or other assets subject to such Liens).        10.02  Consolidation, Merger, Purchase or Sale of Assets, etc.        Each Credit Party will not, and will not permit any of their respective Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any partnership, joint venture, or transaction of merger or consolidation, or convey, sell, lease or otherwise dispose of all or any part of its property or assets, or enter into any Sale Leaseback, or purchase or otherwise acquire (in one or a series of related transactions) any part of the property or assets of any Person constituting all or substantially all of the property and assets of such Person or assets constituting a business unit, line of business or division of such Person, except that:                                             112  #93457508v14

 

               (a)  [Reserved];                 (b)  the Company and its Subsidiaries may sell inventory and other assets (excluding  accounts receivable) in the ordinary course of business;                 (c)  the Company and its Subsidiaries may liquidate or otherwise dispose of obsolete  or worn-out property in the ordinary course of business;                 (d)  transactions to the extent permitted by Section 10.01, 10.03 or 10.05;                 (e)  the Company and its Subsidiaries may convey, sell, lease or otherwise dispose of  its assets, so long as (i) no Event of Default then exists or would result therefrom, (ii) each such  conveyance, sale, lease or disposition is in an arm’s-length transaction and the Company or the  respective Subsidiary receives at least Fair Market Value (measured at the time the contract for such  asset sale is entered into), (iii) the consideration received by the Company or such Subsidiary consists  of at least 75% (or, in the case of ABL Priority Collateral, 100%) cash or Cash Equivalents (and is paid  at the time of the closing of such sale), (provided that, for the purposes of this clause (iii), (A) any  liabilities (as shown on the Company’s or such Subsidiary’s most recent balance sheet provided  hereunder or in the footnotes thereto) of the Company or such Subsidiary, other than liabilities  constituting Indebtedness subordinated in right of payment to the Loans that are assumed by the  transferee with respect to the applicable conveyance, sale, lease or disposition, (B) any securities  received by the Company or such Subsidiary from such transferee that are converted by the Company  or such Subsidiary into cash (to the extent of the cash received) within one hundred and eighty (180)  days following the closing of the applicable transaction, and (C) any Designated Non-Cash  Consideration received in respect of such conveyance, lease sale or disposition having a Fair Market  Value, taken together with all other Designated Non-Cash Consideration received pursuant to this  clause (iii) that is at that time outstanding, not in excess of the greater of $20,000,000 and 1.5% of  Consolidated Total Assets of the Company and its Subsidiaries for the most recently ended Test Period  at the time of the receipt of such Designated Non-Cash Consideration, with the Fair Market Value of  each item of Designated Non-Cash Consideration being measured at the time received and without  giving effect to subsequent changes in value, shall be deemed to be cash (other than in respect of a  disposition of ABL Priority Collateral)), and (iv) the Net Sale Proceeds therefrom are applied as (and to  the extent) required by Section 5.02(c); provided, however, in no event shall (i) all or substantially all   of the assets of the Company and its Subsidiaries (taken as a whole) be sold pursuant to this clause (e)   or (ii) all or substantially all of the Coffeyville Facility or the Dubuque Facility (or the Equity Interests   of any Subsidiary that owns the Coffeyville Facility or the Dubuque Facility) be sold pursuant to this   clause (e);                 (f)  the Company and its Subsidiaries may lease (as lessee) or license (as licensee)   real or personal property (so long as any such lease or license does not create a CapitalizedFinance  Lease Obligation except to the extent permitted by Section 10.04(d));                 (g)  the Company and its Subsidiaries may sell or discount, in each case without  recourse and in the ordinary course of business, accounts receivable arising in the ordinary course of  business, but only in connection with the compromise or collection thereof and not as part of any  financing transaction;                 (h)  the Company and its Subsidiaries may grant licenses, sublicenses, leases or  subleases to other Persons not materially interfering with the conduct of the business of the Company or                                             113  #93457508v14

 

 any of its Subsidiaries, in each case so long as no such grant otherwise affects the Collateral Agent’s  security interest in the asset or property subject thereto;                 (i)  the Company or any Subsidiary of the Company may convey, sell or otherwise  transfer all or any part of its business, properties and assets to any Credit Party, so long as any security  interests granted to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security  Documents in the assets so transferred shall remain in full force and effect and perfected (to at least the  same extent as in effect immediately prior to such transfer) and all actions required to maintain said  perfected status have been taken;                 (j)  any Subsidiary of the Company may merge or consolidate with and into, or be  dissolved or liquidated into, any Credit Party (except that ABL Priority Collateral may only be  transferred among Borrowers), so long as (i) in the case of any such merger, consolidation, dissolution   or liquidation involving the Company, the Company is the surviving or continuing entity of any such   merger, consolidation, dissolution or liquidation, (ii) in the case of any such merger, consolidation,   dissolution or liquidation involving a Borrower, such Borrower is the surviving or continuing entity of   any such merger, consolidation, dissolution or liquidation, (iii) in all other cases, a Credit Party is the   surviving or continuing corporation of any such merger, consolidation, dissolution or liquidation, and   (iv) any security interests granted to the Collateral Agent for the benefit of the Secured Parties pursuant   to the Security Documents in the assets of such Subsidiary shall remain in full force and effect and   perfected (to at least the same extent as in effect immediately prior to such merger, consolidation,   dissolution or liquidation) and all actions required to maintain said perfected status have been taken;                 (k)  any Subsidiary of the Company that is not a Credit Party may merge or   consolidate with and into, or be dissolved or liquidated into, any other Subsidiary of the Company that   is not a Credit Party, so long as (i) in the case of any such merger, consolidation, dissolution or  liquidation involving a Wholly Owned Subsidiary of the Company, a Wholly Owned Subsidiary of the  Company is the surviving or continuing entity of any such merger, consolidation, dissolution or  liquidation, and (ii) to the extent that the Collateral Agent has a pledge of the Equity Interests of either  of the Subsidiaries subject to such transaction pursuant to the Security Agreement, such pledge shall  continue in the Equity Interests of the surviving or continuing entity of any such merger, consolidation,  dissolution or liquidation and all actions required to maintain said pledge have been taken;                 (l)  Permitted Acquisitions (including by merger) may be consummated in  accordance with the requirements of Section 9.13;                 (m)  the Credit Parties and their respective Subsidiaries may liquidate or otherwise  dispose of Cash Equivalents in the ordinary course of business, in each case for cash at Fair Market  Value;                 (n)  [reserved]; and                 (o)  the Company and its Subsidiaries may engage in Sale Leasebacks (other than in   respect of ABL Priority Collateral), so long as (i) no Default or Event of Default then exists or would   result therefrom, (ii) each such Sale Leaseback is in an arm’s-length transaction and the Company or the   respective Subsidiary receives at least Fair Market Value, (iii) the consideration received by the   Company or such Subsidiary consists of at least 75% cash and Cash Equivalents and is paid at the time   of the closing of such Sale Leaseback and (iv) the aggregate amount the cash and non-cash proceeds   received from all Sale Leasebacks pursuant to this clause (o) shall not exceed $10,000,000.                                             114  #93457508v14

 

      To the extent the Required Lenders waive the provisions of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold as permitted by this Section 10.02 (other than to any Credit Party or a Subsidiary thereof), such Collateral shall be sold free and clear of the Liens created by the Security Documents, and the Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate in order to effect and/or evidence the foregoing.        10.03  Dividends.  .     Each Credit Party will not, and will not permit any of their respective Subsidiaries to, authorize, declare or pay any Dividends with respect to any Credit Party or any of their respective Subsidiaries, except that:                 (a)  (i) any Subsidiary of the Company may pay Dividends to the Company or to any  Wholly Owned Subsidiary of the Company and (ii) any Credit Party may pay Dividends to any other  Credit Party;                 (b)  any Non-Wholly Owned Subsidiary of the Company may pay Dividends to its  shareholders, members or partners generally, so long as the Company or its respective Subsidiary which  owns the Equity Interest in the Subsidiary paying such Dividends receives at least its proportionate  share thereof (based upon its relative holding of the Equity Interest in the Subsidiary paying such  Dividends and taking into account the relative preferences, if any, of the various classes of Equity  Interests of such Subsidiary);                 (c)  the Company may pay Dividends to any parent company (and such parent  company may pay Dividends to its parent company), so long as the proceeds thereof are promptly used  by such parent company (or its parent company) to pay legal, accounting and reporting expenses in the  ordinary course of business, reasonable and customary general administrative costs and expenses and to  pay reasonable and customary directors fees and expenses in the ordinary course of business and  directly related to any such parent company’s ownership of the Credit Parties and their Subsidiaries and  fees and expenses related to any equity or debt offering or acquisition;                 (d)  the Company may pay Dividends to any direct or indirect owner at the times and  in the amounts necessary to enable such Person to pay its tax obligations; provided, that, the amount of  Dividends paid pursuant to this clause (d) shall not exceed the amount of estimated or actual (as  applicable) income that is allocable to such Person multiplied by the highest marginal federal, state and  local tax rates applicable to an individual (or, if higher, a corporate) resident of New York, New York;                 (e)  the Company may pay Dividends, to any parent company (and such parent  company may pay Dividends to its parent company) in an aggregate amount for all such Dividends  (together with the aggregate amount of all Intercompany Loans made pursuant to Section 10.05(h) for  such purpose) not to exceed the sum of (I) $2,500,000 in any Fiscal Year plus (II) the proceeds of key  man life insurance policies received after the Effective Date to the extent utilized for the purposes  described in this clause (e), in each case for the purpose of enabling such Person to redeem, repurchase  or otherwise acquire for value, and such Person may redeem, repurchase or otherwise acquire for value  (and any such parent company may pay a Dividend to its parent company for the purpose of enabling  its parent company to redeem, repurchase or otherwise acquire for value), outstanding shares of capital  stock of the Company or such parent company (or its parent company) (or options or warrants to  purchase capital stock of the Company or such parent company (or its parent company)) following the  death, disability or termination of employment of officers, directors or employees of any parent  company or any of their respective Subsidiaries;                                            115  #93457508v14

 

               (f)  each Credit Party may pay regularly scheduled Dividends on its Preferred Equity  pursuant to the terms thereof solely through the issuance of additional shares of such Preferred Equity  (but not in cash); provided, that, in lieu of issuing additional shares of such Preferred Equity as   Dividends, such Credit Party may increase the liquidation preference of the shares of Preferred Equity   in respect of which such Dividends have accrued;                 (g)  any Credit Party may pay Dividends in exchange for, or out of the cash proceeds   of the substantially concurrent sale for cash of, Equity Interests of any Credit Party or any direct or   indirect parent of any Credit Party (other than Equity Interests sold to another Credit Party, the   Company or a Subsidiary or an Unrestricted Subsidiary of the Company or to an employee stock   ownership plan or any trust established by Company, any Credit Party or any Subsidiary or   Unrestricted Subsidiary thereof);                 (h)  each Credit Party and their Subsidiaries may pay additional Dividends so long as   the Payment Conditions are satisfied immediately after (and, in the case of clauses (i) and (ii) of the   definition thereof, immediately before) giving effect to the payment of such Dividends;                 (i)  the Company and its Subsidiaries may pay Dividends in an aggregate amount not   to exceed $5,000,000 during the term of this Agreement;                 (j)  each Credit Party and its Subsidiaries may pay Dividends within 60 days after the   date of declaration thereof if at said date of declaration such Dividend would have complied with the   provisions of this Section 10.03; and                 (k)  any Credit Party and its Subsidiaries may repurchase its Equity Interests that may   be deemed to occur (i) upon the exercise of options or warrants if such Equity Interests represent all or   a portion of the exercise price thereof and (ii) in connection with the withholding of a portion of the   Equity Interests granted or awarded to a director or an employee to pay for the taxes payable by such   director or employee upon such grant or award shall be permitted so long as in any such case, no cash is   paid by any Credit Party or Subsidiary thereof in respect of the repurchase of any such Equity Interests.         10.04 Indebtedness.         Each Credit Party will not, and will not permit any of their respective Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, except:                 (a)  Indebtedness incurred pursuant to this Agreement and the other Credit  Documents;                 (b)  Existing Indebtedness outstanding on the Effective Date and listed on Schedule  8.21, plus subsequent extensions, renewals or refinancings thereof; provided, that, the aggregate   principal amount of the Indebtedness to be extended, renewed or refinanced does not increase from that   amount outstanding at the time of any such extension, renewal or refinancing and, provided, further,   that any Intercompany Debt listed on Schedule 8.21 (and subsequent extensions, refinancings,   renewals, replacements and refundings thereof shall be subject to the requirements of Section 10.05(h);                 (c)  Indebtedness (i) under Interest Rate Protection Agreements entered into with   respect to other Indebtedness permitted under this Section 10.04 and (ii) under Other Hedging   Agreements entered into in the ordinary course of business and providing protection to the Company   and its Subsidiaries against fluctuations in currency values or commodity prices in connection with the   Company’s or any of its Subsidiaries’ operations, in either case so long as the entering into of such                                            116  #93457508v14

 

 Interest Rate Protection Agreements or Other Hedging Agreements are bona fide hedging activities and  are not for speculative purposes;                 (d)    Indebtedness of the Company and its Subsidiaries evidenced by  CapitalizedFinance Lease Obligations and purchase money Indebtedness described in Sections 10.01(f)  and (g); provided, that, in no event shall the sum of the aggregate principal amount of all such   Indebtedness permitted by this clause (d) (other than in respect of such Indebtedness incurred pursuant  to that certain On-Site Product Supply Agreement dated as of July 31, 2020 between Messer LLC and  Coffeyville Resources) exceed the greater of (i) 2.0% of Consolidated Total Assets at the time of  incurrence of such Indebtedness and (ii) $25,000,000;                 (e)  Indebtedness constituting Intercompany Loans to the extent permitted by  Sections 10.05;                 (f)  Indebtedness consisting of guaranties by the Credit Parties of each other’s  Indebtedness and lease and other contractual obligations permitted under this Agreement;                 (g)  Indebtedness of a Subsidiary of the Company acquired pursuant to a Permitted   Acquisition (or Indebtedness assumed at the time of a Permitted Acquisition of an asset securing such   Indebtedness), plus subsequent extensions, renewals or refinancings thereof; provided, that, the  aggregate principal amount of the Indebtedness to be extended, renewed or refinanced does not increase  from that amount outstanding at the time of any such extension, renewal or refinancing (except to pay  premiums, underwriting discounts, defeasance costs and other fees and expenses in connection  therewith); provided, further, that (i) such Indebtedness was not incurred in connection with, or in   anticipation or contemplation of, such Permitted Acquisition and (ii) the aggregate principal amount of   all Indebtedness permitted by this clause (g) shall not exceed, unless the Payment Conditions are   satisfied immediately after (on a Pro Forma Basis) (and, in the case of clauses (i) and (ii) of the   definition thereof, immediately before) such Indebtedness is incurred, extended, renewed or refinanced   pursuant to this clause (g), $10,000,000 at any one time outstanding;                 (h)  Indebtedness arising from the honoring by a bank or other financial institution of   a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business,   so long as such Indebtedness is extinguished within four Business Days of the incurrence thereof;                 (i)  Indebtedness of the Company and its Subsidiaries with respect to performance   bonds, surety bonds, appeal bonds or customs bonds required in the ordinary course of business or in   connection with the enforcement of rights or claims of the Company or any of its Subsidiaries or in   connection with judgments that do not result in a Default or an Event of Default;                 (j)  [reserved];                 (k)  Indebtedness owed to any Person providing property, casualty, liability or other   insurance to any Credit Party or any of its Subsidiaries, so long as the amount of such Indebtedness is   not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of such   insurance for the period in which such Indebtedness is incurred and such Indebtedness is outstanding   only for a period not exceeding twelve months;                 (l)  Indebtedness of the Company or any of its Subsidiaries which may be deemed to   exist in connection with agreements providing for indemnification, purchase price adjustments and   similar obligations in connection with the acquisition or disposition of assets in accordance with the   requirements of this Agreement, so long as any such obligations are those of the Person making the                                            117  #93457508v14

 

 respective acquisition or sale, and are not guaranteed by any other Person except as permitted by  Section 10.04(f);                 (m)  [reserved];                 (n)  Indebtedness of the Credit Parties and their Subsidiaries under (x) the Secured  Notes in an aggregate principal amount not to exceed $645,000,000 (as reduced by any repayments or  prepayments of principal thereof made on or after the Effective Date) and (y) the Refinancing Secured  Notes (as reduced by any repayments or prepayments of principal thereof made after the incurrence  thereof);                 (o)  Indebtedness of the Credit Parties and their Subsidiaries the proceeds of which  are concurrently used to finance a Permitted Acquisition and to pay the fees and expenses related  thereto so long as (i)(x) in the case of unsecured Indebtedness, clauses (i), (ii), (v), (vi), (vii), (viii) and  (ix) of the definition of Qualified Debt Conditions are satisfied and the Company shall be in compliance  with a Total Leverage Ratio of not greater than 4.50:1.00 for the Test Period then most recently ended  for which financial statements are available on a Pro Forma Basis as if such incurrence of Indebtedness  had occurred on the first day of (and had remained outstanding throughout) such Test Period and (y) in  the case of secured Indebtedness, the Qualified Debt Conditions are satisfied and the Company shall be  in compliance with a Secured Leverage Ratio of not greater than 3.25:1.00 for the Test Period then  most recently ended for which financial statements are available on a Pro Forma Basis as if such  incurrence of Indebtedness had occurred on the first day of (and had remained outstanding throughout)  such Test Period and (ii) prior to the date of the incurrence of such Indebtedness, the Company shall  have delivered to the Administrative Agent a certificate of an Authorized Officer of the Company  certifying as to compliance with preceding clause (i) and demonstrating (in reasonable detail) the  calculations required by preceding clause (i), plus subsequent extensions, renewals or refinancings  thereof; provided, that, (i) the aggregate principal amount of the Indebtedness to be extended, renewed   or refinanced does not increase from that amount outstanding at the time of any such extension, renewal   or refinancing and (ii) the Qualified Debt Conditions are satisfied at the time of the subsequent   extension, renewal or refinancing;                 (p)  so long as no Default or Event of Default then exists or would result therefrom,   unsecured Indebtedness incurred by the Company and its Subsidiaries, including unsecured extensions,   renewals and refinancings thereof by the Company and its Subsidiaries, in an aggregate principal   amount for all such unsecured Indebtedness not to exceed the greater of (i) 3.0% of Consolidated Total   Assets at the time of the incurrence of any such Indebtedness and (ii) $40,000,000 at any time   outstanding; provided, however, if, at the time of any subsequent extension, renewal or refinancing of   any Indebtedness theretofore incurred and outstanding in accordance with this clause (p), the aggregate   principal amount of all Indebtedness that would be outstanding under this clause (p) would exceed   3.0% of Consolidated Total Assets at such time, then such extended, renewed or refinanced   Indebtedness may be incurred so long as (A) no Default or Event of Default then exists or would result   therefrom, (B) the aggregate principal amount of the Indebtedness to be so extended, renewed or   refinanced shall not increase from that aggregate principal amount outstanding at the time of any such   extension, renewal or refinancing (except to pay premiums, underwriting discounts, defeasance costs   and other fees and expenses in connection therewith) and (C) such Indebtedness as so extended,   renewed or refinanced shall not have a final maturity that is earlier than, or a weighted average life to   maturity that is shorter than, the final maturity or remaining weighted average life to maturity, as   applicable, of the Indebtedness to be so extended, renewed or refinanced;                 (q)  Indebtedness incurred by the Company and the other Credit Parties, including   extensions, renewals and refinancings thereof by the Company and the other Credit Parties, so long as                                            118  #93457508v14

 

 (i)(x) in the case of unsecured Indebtedness, clauses (i), (ii), (v), (vi), (vii), (viii) and (ix) of the  definition of Qualified Debt Conditions are satisfied and the Company shall be in compliance with a  Total Leverage Ratio of not greater than 4.50:1.00 for the Test Period then most recently ended for  which financial statements are available on a Pro Forma Basis as if such incurrence of Indebtedness had  occurred on the first day of (and had remained outstanding throughout) such Test Period and (y) in the  case of secured Indebtedness, the Qualified Debt Conditions are satisfied and the Company shall be in  compliance with a Secured Leverage Ratio of not greater than 3.25:1.00 for the Test Period then most  recently ended for which financial statements are available on a Pro Forma Basis as if such incurrence  of Indebtedness had occurred on the first day of (and had remained outstanding throughout) such Test  Period and (ii) prior to the date of the incurrence of such Indebtedness, the Company shall have  delivered to the Administrative Agent a certificate of an Authorized Officer of the Company certifying  as to compliance with preceding clause (i) and demonstrating (in reasonable detail) the calculations  required by preceding clause (i); provided, however, if, at the time of any subsequent extension,   renewal or refinancing of any Indebtedness theretofore incurred and outstanding in accordance with this   clause (q), the aggregate principal amount of all Indebtedness that would be outstanding under this   clause (q) would cause (x) in the case of unsecured Indebtedness, the Total Leverage Ratio for the   respective most recently ended Test Period for which financial statements are available to exceed   4.50:1.00, or (y) in the case of secured Indebtedness, the Secured Leverage Ratio for the respective   most recently ended Test Period for which financial statements are available to exceed 3.25:1.00, then   such extended, renewed or refinanced Indebtedness may be incurred so long as (A) the other conditions   set forth above in this clause (q) are satisfied at such time, (B) the aggregate principal amount of the   Indebtedness to be so extended, renewed or refinanced shall not increase from that aggregate principal   amount outstanding at the time of any such extension, renewal or refinancing (except to pay premiums,   underwriting discounts, defeasance costs and other fees and expenses in connection therewith) and (C)   such Indebtedness as so extended, renewed or refinanced shall not have a final maturity that is earlier   than, or a weighted average life to maturity that  is shorter than, the final maturity or remaining   weighted average life to maturity, as applicable, of the Indebtedness to be so extended, renewed or   refinanced;                 (r)  [reserved];                 (s)  Indebtedness of the Company or any Subsidiary of the Company consisting of   take-or-pay obligations contained in supply arrangements incurred in the ordinary course of business   and on a basis consistent with past practice;                 (t)  unsecured guarantees incurred by the Company and its Subsidiaries in the   ordinary course of business in respect of obligations of suppliers, customers, franchisees, lessors and   licensees of the Company and its Subsidiaries that, in each case, are non-Affiliates of any Credit Party   or Subsidiary thereof; and                 (u)  CapitalizedFinance Lease Obligations incurred by the Company and its  Subsidiaries in connection with any Sale and Leaseback Transaction permitted under Section 10.02(o)   in an aggregate amount not to exceed $10,000,000.        10.05  Advances, Investments and Loans.  .     Each Credit Party will not, and will not permit any of their respective Subsidiaries to, directly or indirectly, lend money or credit or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other Equity Interest in, or make any capital contribution to, any other                                             119  #93457508v14

 

Person (each of the foregoing an “Investment” and, collectively, “Investments”), except that the following shall be permitted:                 (a)  the Company and its Subsidiaries may acquire and hold accounts receivables  owing to any of them, if created or acquired in the ordinary course of business and payable or  dischargeable in accordance with customary trade terms of the Company or such Subsidiary;                 (b)  [Reserved];                 (c)  the Credit Parties and their respective Subsidiaries may hold the Investments held  by them on the Effective Date and described on Schedule 10.05; provided, that, any additional  Investments made with respect thereto shall be permitted only if permitted under the other provisions of  this Section 10.05;                 (d)  the Company and its Subsidiaries may acquire and own investments (including  debt obligations) received in connection with the bankruptcy or reorganization of suppliers and  customers and in good faith settlement of delinquent obligations of, and other disputes with, customers  and suppliers arising in the ordinary course of business;                 (e)  the Company and its Subsidiaries may make loans and advances to their officers,  directors and employees for moving, relocation and travel expenses and other similar expenditures, in  each case in the ordinary course of business in an aggregate amount not to exceed $5,000,000 at any  time (determined without regard to any write-downs or write-offs of such loans and advances);                 (f)  the Credit Parties and their respective Subsidiaries may acquire and hold  obligations of their officers and employees in connection with such officers’ and employees’  acquisition of shares of any Credit Parties’ stock (so long as no cash is actually advanced by any Credit  Party or any of their respective Subsidiaries in connection with the acquisition of such obligations);                 (g)  the Company and its Subsidiaries may enter into Interest Rate Protection  Agreements and Other Hedging Agreements to the extent permitted by Section 10.04(c);                 (h)  (i) any Credit Party may make intercompany loans and advances to any Credit  Party, (ii) any Subsidiary of the Company which is not a Credit Party may make intercompany loans  and advances to any Credit Party or any other Subsidiary which is not a Credit Party and (iii) any Credit  Party may make intercompany loans and advances to any Subsidiary which is not a Credit Party (such  intercompany loans and advances referred to in preceding clauses (i) through (iii), collectively, the  “Intercompany Loans”); provided, that, (A) the Intercompany Loans made pursuant to preceding  subclause (iii) of this clause (h) shall not exceed, when added to the aggregate amount of Investments  made pursuant to Section 10.05(i)(iii), $10,000,000 in the aggregate at any time outstanding  (determined without regard to any write-offs or write-downs thereof) and may not be made at any time  during the existence of a Default or an Event of Default, (B) each Intercompany Loan shall be  evidenced by an Intercompany Note, (C) each such Intercompany Note owned or held by a Credit Party  shall be pledged to the Collateral Agent pursuant to the Pledge Agreement, (D) each Intercompany  Loan made to a Credit Party shall be subject to the subordination provisions attached as an Annex to the  respective Intercompany Note and (E) any Intercompany Loans made to any Credit Party or other  Subsidiary of the Company pursuant to this clause (h) shall cease to be permitted by this clause (h) if  such Credit Party or other Subsidiary of the Company ceases to constitute a Credit Party or a Subsidiary  of the Company, as the case may be;                                             120  #93457508v14

 

               (i)  (i) any Credit Party may make capital contributions to any other Credit Party, (ii)  any Subsidiary of the Company that is not a Credit Party may make capital contributions to, or acquire  Equity Interests of, other Subsidiaries of the Company that are not Credit Parties and (iii) any Credit  Party may make capital contributions to, or acquire Equity Interests of, any Subsidiary that is not a  Credit Party; provided, that, (A) the aggregate amount of any contributions to, or acquisition of the  Equity Interests of, Subsidiaries of the Company that are not Credit Parties by Credit Parties, when  added to the aggregate amount of outstanding Intercompany Loans under Section 10.05(h)(iii), shall not  exceed $10,000,000 (determined without regard to any write-offs or write-downs thereof) and may not  be made at any time during the existence of a Default or an Event of Default, (B) any security interest  granted to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security  Documents in any assets so contributed shall remain in full force and effect and perfected (to at least the  same extent as in effect immediately prior to such contribution) and all actions required to maintain said  perfected status have been taken and (C) any Investment made in or to any Credit Party or any other  Subsidiary of the Company pursuant to this clause (i) shall cease to be permitted hereunder if such  Credit Party or other Subsidiary of the Company ceases to constitute a Credit Party or a Subsidiary of  the Company, as the case may be;                 (j)  the Credit Parties and their respective Subsidiaries may own the Equity Interests  of their respective Subsidiaries created or acquired in accordance with the terms of this Agreement (so  long as all amounts invested in such Subsidiaries are independently justified under another provision of  this Section 10.05);                 (k)  guarantees permittednot prohibited hereunder to the extent constituting  Investments;                 (l)  (i)  Permitted Acquisitions shall be permitted in accordance with the  requirements of Section 9.13 and (ii) Investments then held by any Person acquired in a Permitted  Acquisition to the extent that such Investments were not made in contemplation of or in connection  with such Permitted Acquisition;                 (m)  the Company and its Subsidiaries may receive and hold promissory notes and  other non-cash consideration received in connection with any asset sale permitted by Section 10.02(e);                 (n)  the Company and its Subsidiaries may make advances in the form of a  prepayment of expenses to vendors, suppliers and trade creditors consistent with their past practices, so  long as such expenses were incurred in the ordinary course of business of the Company or such  Subsidiary;                 (o)  the Company and its Subsidiaries may acquire and hold Investment Grade  Securities;                 (p)  the Company and its Subsidiaries may make Investments to the extent acquired  in exchange for the issuance of Equity Interests of the Company or any direct or indirect parent  company;                 (q)  the Company and its Subsidiaries may make Investments consisting of the  licensing or contribution of intellectual property pursuant to joint marketing arrangements with other  Persons;                                             121  #93457508v14

 

               (r)  the Company and its Subsidiaries may make Capital Expenditures consisting of  purchases and acquisitions of inventory, supplies, material or equipment in the ordinary course of  business;                 (s)  the Company and its Subsidiaries may make other Investments in any Person  having an aggregate Fair Market Value (measured on the date such Investment was made and without  giving effect to subsequent changes in value), when taken together with all other Investments made  pursuant to this clause (s) and then outstanding, not to exceed $20,000,000; and                 (t)  so long as the Payment Conditions are satisfied immediately after (on a Pro  Forma Basis) (and, in the case of clauses (i) and (ii) of the definition thereof, immediately before)  giving effect to such Investments, the Company and its Subsidiaries may make additional Investments  not otherwise permitted under this Section 10.05.        10.06  Transactions with Affiliates.  .     Each Credit Party will not, and will not permit any of their respective Subsidiaries to, enter into any transaction or series of related transactions with any Affiliate of any Credit Party or any of their respective Subsidiaries, other than on terms and conditions substantially as favorable to such Credit Party or such Subsidiary as would reasonably be obtained by such Credit Party or such Subsidiary at that time in a comparable arm’s-length transaction with a Person other than an Affiliate, except that the following in any event shall be permitted:                 (a)  Dividends may be paid to the extent provided in Section 10.03;                 (b)  loans may be made and other transactions may be entered into by the Credit  Parties and their respective Subsidiaries to the extent permitted by Sections 10.02, 10.04 and/or 10.05;                 (c)  customary fees, indemnities and reimbursements may be paid to non-officer  directors of the Credit Parties and their respective Subsidiaries;                 (d)  each of the Credit Parties may issue shares of its Equity Interests otherwise  permitted to be issued hereunder;                 (e)  the Credit Parties and their respective Subsidiaries may enter into, and may make  payments under, employment, consulting, service or termination agreements, employee benefits plans,  stock option plans, indemnification provisions and other similar compensatory arrangements with  current, former or future officers, employees and directors of the Credit Parties and their respective  Subsidiaries in the ordinary course of business;                 (f)  Subsidiaries and Unrestricted Subsidiaries of the Company may pay management  fees, licensing fees and similar fees to the Company;                 (g)  any contracts, instruments or other agreements or arrangements in each case as in  effect on the Effective Date as set forth on Schedule 10.06(g), and any transactions pursuant thereto or   in the ordinary course of business, or any amendment, modification or supplement thereto or any   replacement thereof entered into from time to time, so long as such agreement or arrangement as so   amended, modified, supplemented or replaced, taken as a whole, is not more disadvantageous in any   material respect to the Credit Parties and their respective Subsidiaries at the time executed than the   original agreement or agreement as in effect on the Effective Date;                                            122  #93457508v14

 

               (h)  any contracts, agreements or other arrangements solely among the Company and  its Subsidiaries to the extent that such underlying transactions are otherwise permitted under this  Agreement; and                 (i)  any guarantee by any direct or indirect parent company of any Credit Party of  Indebtedness of any Credit Party or any of its Subsidiaries otherwise permittednot prohibited hereunder  so long as (i) no cash or other consideration is given by any Credit Party or any Subsidiary thereof in  exchange for such guarantee and (ii) any rights of subrogation of such direct or indirect parent company   in respect thereto shall be subordinated to the Obligations on a basis reasonably satisfactory to the   Administrative Agent and may not be exercised until all Obligations have been paid in full.        10.07  Fixed Charge Coverage Ratio.                 (a)  During each Compliance Period, the Company shall not permit (i) the Fixed  Charge Coverage Ratio for the last Test Period ended prior to the beginning of such Compliance Period  for which financial statements are available to be less than 1.00:1.00, (ii) the Fixed Charge Coverage  Ratio for any Test Period for which financial statements first become available during such Compliance  Period to be less than 1.00:1.00 or (iii) the Fixed Charge Coverage Ratio for any Test Period ending  during such Compliance Period (or before such Compliance Period and after the Test Period referenced  in clause (i) above) to be less than 1.00:1.00.  Within three Business Days after the beginning of a  Compliance Period, the Company shall provide to the Administrative Agent a compliance certificate  (whether or not a Compliance Period is in effect on the date such compliance certificate is required to  be delivered) calculating the Fixed Charge Coverage Ratio for the Test Period for which financial  statements are required to be delivered ended immediately prior to the beginning of such Compliance  Period based on the most recent financial statements required to be delivered pursuant to Section  9.01(b) or 9.01(c), as the case may be.                 (b)  Right to Cure.  (A) Notwithstanding anything to the contrary contained in   Section 10.07(a), in the event that the Company shall fail to comply with the requirements of such   Section 10.07(a) in respect of any Test Period, until the expiration of the 10th day subsequent to the due   date for delivery of the financial statements and related compliance certificate for such Test Period   pursuant to Section 9.01(b) or 9.01(c), as the case may be, and Section 9.01(f), the Company shall have   the right to issue shares of its Equity Interests permitted to be issued hereunder for cash or otherwise   receive cash common contributions to its capital.  Subject to the limitations set forth in clause (b)(B)   below, such amounts shall be added to Consolidated EBITDA for the last fiscal quarter of the Company   for the applicable Test Period and then solely for purposes of determining compliance with Section   10.07(a) for such Test Period and any subsequent Test Period which includes such fiscal quarter and not   for any other purpose under this Agreement (including for calculations testing pro forma compliance   with the financial covenant set forth in Section 10.07(a) (whether in connection with the Payment   Conditions or otherwise) or the Total Leverage Ratio).  If after giving effect to the foregoing   recalculation, the Company shall then be in compliance with the requirements of Section 10.07(a) for   the applicable Test Period, then the Company shall be deemed to have satisfied the requirements of   Section 10.07(a) as of the relevant date of determination with the same effect as though there had been   no failure to comply therewith at such date, and the applicable Event of Default which had occurred as   a result of such failure shall be deemed cured for all purposes of the Credit Documents.         (B) Notwithstanding anything herein to the contrary, (i) in no event shall the Credit Parties be entitled to exercise the right described in clause (b)(A) above (x) more than twice in any twelve-month period or (y) more than four times in the aggregate, (ii) any cash contribution or issuance of stock described in clause (b)(A) above shall be permitted in an unlimited amount; provided, that, the amount added to Consolidated EBITDA for such fiscal quarter shall be no greater than the amount required to                                            123  #93457508v14

 

cause the Company to be in compliance with Section 10.07(a) for the applicable Test Period and (iii) to the extent that any cash proceeds received in connection with any exercise of the right described in clause (b)(A) above is used to repay Indebtedness, such Indebtedness shall not be deemed to have been repaid for purposes of calculating the Fixed Charge Coverage Ratio or the Total Leverage Ratio for the period with respect to which such compliance certificate applies or any other compliance certificate including such fiscal quarter in respect of which such Consolidated EBITDA has been so increased.         10.08 Modifications of Certificate of Incorporation, By-Laws and Certain Other Agreements; Limitations on Voluntary Payments, etc.  Each Credit Party will not, and will not permit any of their respective Subsidiaries to:                 (a)  make (or give any notice in respect of) any voluntary or optional payment or  prepayment on or voluntary or optional redemption, repurchase or acquisition for value of, any  unsecured Indebtedness incurred pursuant to Section 10.04(o) or (q) or Indebtedness subordinated in  right of payment to the Loans incurred pursuant to Section 10.04(o) or (q) (“Junior Indebtedness”),   provided that (i) the Company and its Subsidiaries may make any payment or prepayment on, or   redemption or acquisition for value of, any Junior Indebtedness not otherwise permitted under this   Section 10.08, so long as the Payment Conditions are satisfied immediately after (and, in the case of   clauses (i) and (ii) of the definition thereof, immediately before) giving effect to such payment,   prepayment, redemption or acquisition for value, (ii) Company and its Subsidiaries may refinance   outstanding Junior Indebtedness with other Junior Indebtedness permitted to be incurred hereunder; and   (iii) the Company and its Subsidiaries may repay, redeem, repurchase or acquire for value any Junior   Indebtedness with Equity Interests (other than Disqualified Equity Interests) or the proceeds thereof;                 (b)  amend, modify, change or waive any term or provision of any Junior   Indebtedness Document in a manner which is adverse to the interests of the Lenders in any material   respect;                 (c)  amend, modify or change its certificate or articles of incorporation (including by   the filing or modification of any certificate or articles of designation), certificate of formation, limited   liability company agreement or by-laws (or the equivalent organizational documents), as applicable, or   any agreement entered into by it with respect to its capital stock or other Equity Interests (including any   shareholders’ agreement), in each case in a manner which is adverse to the interests of the Lenders in   any material respect; or                 (d)  amend, modify or change any provision of any tax sharing agreement in a   manner which is adverse to the Lenders in any material respect or enter into any new tax sharing   agreement, tax allocation agreement or similar agreement without the prior written consent of the   Administrative Agent.        10.09  Limitation on Certain Restrictions on Subsidiaries.  Each Credit Party will not, and will not permit any of their respective Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (a) pay dividends or make any other distributions on its capital stock or any other Equity Interest or participation in its profits owned by any Credit Party or any of their respective Subsidiaries, or pay any Indebtedness owed to any Credit Party or any of their respective Subsidiaries, (b) make loans or advances to any Credit Party or any of their respective Subsidiaries or (c) transfer any of its properties or assets to any Credit Party or any of their respective Subsidiaries, except for such encumbrances or restrictions existing under, by reason of or with respect to (i) applicable law, rule, regulation or administrative or court order, (ii) this Agreement and the other Credit Documents, (iii) (A) the Secured Notes Indenture and the other Secured Notes Documents, (B) the Refinancing Notes Indenture and the other Refinancing                                            124  #93457508v14

 

Notes Documents and (C) the Qualified Debt Documents with respect to Qualified Debt incurred under Sections 10.04(o), (p), (q) and (v) so long as the respective restrictions in such Qualified Debt Documents are customary for similar financings (as determined in good faith by the Company) or are no more restrictive in any material respect than the comparable provisions under this Agreement, (iv) customary provisions restricting transfers, subletting or assignment of any property or asset that is a lease governing any leasehold interest of any Credit Party or any of their respective Subsidiaries, (v) customary provisions restricting assignment of any licensing agreement (in which any Credit Party or any of their respective Subsidiaries is the licensee) or other contract entered into by any Credit Party or any of their respective Subsidiaries in the ordinary course of business, (vi) restrictions on the transfer of any asset pending the close of the sale of such asset, (vii) restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01(c), (f), (g), (n) or (u), (viii) any agreement or instrument governing Indebtedness incurred under Section 10.04(g), which encumbrance or restriction is not applicable to any Person or the properties or assets of any Person, other than the Person or the properties or assets of the Person acquired pursuant to the respective Permitted Acquisition and so long as the respective encumbrances or restrictions were not created (or made more restrictive) in connection with or in anticipation of the respective Permitted Acquisition, (ix) customary provisions in joint venture agreements and other similar agreements applicable to joint ventures permittednot prohibited hereunder and applicable solely to such joint venture, (x)  restrictions or encumbrances restricting cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business and (xi) the Partnership Agreement, so long as such restrictions apply only to the Company, Subsidiaries of the Company, and the Equity Interests of Company and its Subsidiaries.         10.10 Limitation on Issuance of Equity Interests.  Each Credit Party will not, and will not permit any of their respective Subsidiaries to, issue (i) any Preferred Equity or (ii) any redeemable common stock or other redeemable common Equity Interests other than (x) common stock or other redeemable common Equity Interests that is or are redeemable at the sole option of such Credit Party or such Subsidiary, as the case may be and (y) Qualified Preferred Stock of a Credit Party. For the avoidance of doubt, such Preferred Equity or Equity Interest (that is not otherwise exempted under this Section 10.10) will constitute Indebtedness under Section 10.04.         10.11 Business.        Each Credit Party will not, and will not permit any of their respective Subsidiaries to, engage directly or indirectly in any business other than the businesses engaged in by the Credit Parties and their respective Subsidiaries as of the Effective Date and reasonable extensions thereof and businesses ancillary or complimentary thereto.        10.12  Limitation on Creation of Subsidiaries and Unrestricted Subsidiaries.                 (a)  Each Credit Party will not, and will not permit any of their respective  Subsidiaries to, establish, create or acquire after the Effective Date any Subsidiary; provided, that the  Company and its Subsidiaries shall be permitted to establish, create and acquire Subsidiaries to the  extent permitted under this Agreement, so long as, in each case, (i) the capital stock or other Equity  Interests of such new Subsidiary are promptly pledged pursuant to (but only to the extent required by)  the Security Agreement and the certificates, if any, representing such stock or other Equity Interests,  together with stock or other appropriate powers duly executed in blank, are delivered to the Collateral  Agent (to the extent required by the Security Agreement but otherwise subject to the terms of the  Intercreditor Agreement); provided, that no such pledge shall be required in respect of any of the   outstanding capital stock or other Equity Interests of a CFC, FSHCO or Subsidiary of a CFC (other than   65% of the outstanding voting Equity Interests of a CFC or FSHCO that is owned directly or indirectly   by a Borrower or a Guarantor, not including Equity Interests owned directly or indirectly by a CFC),                                            125  #93457508v14

 

 (ii) each such new Domestic Subsidiary (other than a Domestic Subsidiary that is a FSHCO or a   Subsidiary of a CFC) becomes a party to each of the Security Agreement, the Intercreditor Agreement,   this Agreement (either as a Subsidiary Guarantor or Borrower as determined by the Administrative   Agent) and, to the extent that such Domestic Subsidiary (other than a Domestic Subsidiary that is a   FSHCO or a Subsidiary of a CFC) becomes a Borrower hereunder (which only shall be permitted if the   same is a Wholly Owned Domestic Subsidiary and the prior consent of the Administrative Agent is   obtained), each Note, in each case by executing and delivering to the Administrative Agent a   counterpart of a Joinder Agreement and (iii) each such new Domestic Subsidiary, to the extent   requested by the Administrative Agent, takes all actions required pursuant to Section 9.12.  In addition,   each new Domestic Subsidiary that is required to execute any Credit Document shall execute and   deliver, or cause to be executed and delivered, all other relevant documentation (including opinions of   counsel) of the type described in Section 6 as such new Domestic Subsidiary would have had to deliver   if such new Domestic Subsidiary were a Credit Party on the Effective Date.                 (b)  Notwithstanding anything to the contrary contained in this Agreement, the   Company will not, and will not permit any of its Subsidiaries to, establish, create or acquire after the   Effective Date any Unrestricted Subsidiary, except to the extent that (i) such establishment, creation or   acquisition constitutes an Investment permitted under Section 10.05, and (ii) such Unrestricted   Subsidiary meets all of the requirements of the definition thereof.        10.13  No Additional Deposit Accounts; etc.  Each of the Credit Parties will not, and will not permit any other Credit Party to, directly or indirectly, open, maintain or otherwise have any checking, savings, deposit, securities or other accounts at any bank or other financial institution where cash, Cash Equivalents or other securities are or may be deposited or maintained with any Person, other than (b) the Concentration Accounts set forth on Part A of Schedule 10.13, (c) the Collection Accounts set forth on Part B of Schedule 10.13, (d) the Disbursement Accounts set forth on Part C of Schedule 10.13, (e) the other Deposit Accounts set forth on Part D of Schedule 10.13, (f) the Securities Accounts set forth on Part E of Schedule 10.13, and (g) the Excluded Accounts set forth on Part F of Schedule 10.13; provided, that, the Company or any other Credit Party may open a new Concentration Account, Collection Account, Disbursement Account, other Deposit Account, Securities Account or Excluded Account not set forth in such Schedule 10.13, so long as prior to opening any such account (i) the Company has delivered an updated Schedule 10.13 to the Administrative Agent listing such new account and (ii) in the case of any new Concentration Account, Collection Account, Disbursement Account, other Deposit Account (other than an Excluded Account) or Securities Account (other than an Excluded Account), the financial institution with which such account is opened, together with the applicable Credit Party which has opened such account and the Collateral Agent have executed and delivered to the Administrative Agent a Cash Management Control Agreement reasonably acceptable to the Administrative Agent.         10.14 Persons Subject to Sanctions and/or Anti-Corruption Laws.                 (a)  The Company will not, directly or, to the knowledge of the Company, indirectly,  use the proceeds of the Loans (i) to fund any activities or business of or with any Person, or in any  country or territory, that, at the time of such funding is, or whose government is, the subject of  Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Credit Party.                 (b)  No part of the proceeds of the Loans will be used, directly or, to the knowledge  of the Company, indirectly, in furtherance of an offer, payment, promise to pay, or authorization of the  payment or giving of money, or anything else of value, to any Person in violation of the FCPA or any  other applicable anti-corruption law.                                             126  #93457508v14

 

SECTION 11. Events of Default.  .  Upon the occurrence of any of the following specified events (each, an “Event of Default”):        11.01  Payments.  .     Any Borrower shall (i) default in the payment when due of any principal of any Loan or any Note or any Unpaid Drawing, or (ii) default, and such default shall continue unremedied for three or more Business Days, in the payment when due of any interest on any Loan, Note or any Unpaid Drawing or any Fees or any other amounts owing hereunder or under any other Credit Document; or         11.02 Representations, etc.  Any representation, warranty or statement made or deemed made by any Credit Party herein or in any other Credit Document or in any certificate delivered to the Administrative Agent or any Lender pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made or deemed made (it being understood and agreed that any representation or warranty that is qualified by “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects as of any such date); or        11.03   Covenants.  .     Any Credit Party or any of their respective Subsidiaries shall (a) default in the due performance or observance by it of any term, covenant or agreement contained in Section 5.03(d), 9.01(g)(i), 9.01(j)(v), 9.04, 9.11, 9.13 or Section 10, (b) default in the due performance or observance by it of any term, covenant or agreement contained in Sections 9.01(j)(iii), (iv) or (vi) and such default shall continue unremedied for a period of one Business Day, (c) default in the due performance or observance by it of any term, covenant or agreement contained in Section 9.01(j)(ii) and such default shall continue unremedied for a period of two Business Days, or (d) default in the due performance or observance by it of any other term, covenant or agreement contained in this Agreement or in any other Credit Document (other than those set forth in Sections 11.01 and 11.02) and such default shall continue unremedied for a period of 30 days after the earlier of (i) the date on which such default shall first become known to any officer of or any Credit Party or (ii) the date on which written notice thereof is given to the defaulting party by the Administrative Agent or the Required Lenders; or         11.04 Default Under Other Agreements.  .    (a) Any Credit Party or any of their respective Subsidiaries shall (i) default in any payment of any Indebtedness (other than the Obligations) beyond the period of grace, if any, provided in an instrument or agreement under which such Indebtedness was created or (ii) default in the observance or performance of any agreement or condition relating to any Indebtedness (other than the Obligations) or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause (determined without regard to whether any notice is required), any such Indebtedness to become due prior to its stated maturity (other than (1) with respect to Secured Hedging Obligations, termination events or equivalent events pursuant to the terms of Secured Hedge Agreements, (2) any event requiring prepayment pursuant to customary asset sale or change of control provisions and (3) as a result of a sale, conveyance, lease or other disposition of any property or assets securing Indebtedness permitted under this Agreement), or (b) any Indebtedness (other than the Obligations) of any Credit Party or any of their respective Subsidiaries shall be declared to be (or shall become) due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof (other than (1) in connection with termination events or equivalent events pursuant to the terms of                                            127  #93457508v14

 

Secured Hedge Agreements, (2) pursuant to customary asset sale or change of control provisions or (3)  as a result of a sale, conveyance, lease or other disposition of any property or assets securing Indebtedness permitted under this Agreement); provided, that, it shall not be a Default or an Event of Default under this Section 11.04 unless the aggregate principal amount of all Indebtedness as described in preceding clauses (a) and (b) is at least $35,000,000; or        11.05  Bankruptcy, etc.         Any Credit Party or any of their respective Subsidiaries shall commence a voluntary case concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against any Credit Party or any of their respective Subsidiaries, and the petition is not controverted within 10 days, or is not dismissed within 60 days after the filing thereof; provided, however, that during the pendency of such period, each Lender shall be relieved of its obligation to extend credit hereunder; or a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or substantially all of the property of any Credit Party or any of their respective Subsidiaries, to operate all or any substantial portion of the business of any Credit Party or any of their respective Subsidiaries, or any Credit Party or any of their respective Subsidiaries commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency, bankruptcy or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to any Credit Party or any of their respective Subsidiaries, or there is commenced against any Credit Party or any of their respective Subsidiaries any such proceeding which remains undismissed for a period of 60 days after the filing thereof, or any Credit Party or any of their respective Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or a receiver, receiver manager, administrator, custodian, monitor, trustee or other similar official is appointed for it or for any substantial portion of its assets; or any Credit Party or any of their respective Subsidiaries makes a general assignment for the benefit of creditors.         11.06 ERISA.                 (a)  One or more ERISA Events shall have occurred:                 (b)  there is or arises an Unfunded Pension Liability (taking into account only Plans  with positive Unfunded Pension Liability);                 (c)  any material contribution required to made with respect to a Foreign Pension  Plan has not been timely made; or                 (d)  there is or arises any potential withdrawal liability under Section 4201 of ERISA,  if any Credit Party, any Subsidiary of any Credit Party or the ERISA Affiliates were to withdraw  completely from any and all Multiemployer Plans;  and the liability of any or all of any Credit Party, any Subsidiary of any Credit Party and the ERISA Affiliates contemplated by the foregoing clauses (a), (b), (c) and (d), either individually or in the aggregate, has had, or could be reasonably expected to have, a Material Adverse Effect; or        11.07  Security Documents.  .     Any of the Security Documents shall cease to be in full force and effect, or shall cease to give the Collateral Agent for the benefit of the Secured Parties the Liens, rights, powers and privileges purported to be created thereby (including a perfected security interest in, and Lien on, all of the Collateral, in favor                                            128  #93457508v14

 

of the Collateral Agent, superior to and prior to the rights of all third Persons (except as permitted by Section 10.01), and subject to no other Liens (except as permitted by Section 10.01); or         11.08 Guaranty.  .     The Guaranty or any provision thereof shall cease to be in full force or effect as to any Guarantor (except as a result of a release of any Guarantor in accordance with the terms thereof), or any Guarantor or any Person acting for or on behalf of such Guarantor shall deny or disaffirm such Guarantor’s obligations under the Guaranty to which it is a party; or         11.09 Judgments.  .     One or more judgments or decrees shall be entered against any Credit Party or any Subsidiary of any Credit Party involving in the aggregate for the Credit Parties and their respective Subsidiaries a liability (to the extent not paid or not covered by a reputable and solvent insurance company) and such judgments and decrees either shall be final and non-appealable or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 60 consecutive days, and the aggregate amount of all such judgments equals or exceeds $35,000,000; or         11.10 Change of Control.  .  A Change of Control shall occur; or        11.11  Intercreditor Agreement.  .     The Intercreditor Agreement or any provision thereof shall cease to be in full force and effect (except in accordance with its terms), any Credit Party shall deny or disaffirm its obligations thereunder or any Credit Party shall default in the due performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant to the terms thereof,         then, and in any such event, and at any time thereafter, if any Event of Default shall then be continuing, the Administrative Agent, upon the written request of the Required Lenders shall, by written notice to the Company, take any or all of the following actions, without prejudice to the rights of the Administrative Agent, any Lender or the holder of any Note to enforce its claims against any Credit Party (provided, that, if an Event of Default specified in Section 11.05 shall occur with respect to any Borrower, the result which would occur upon the giving of written notice by the Administrative Agent as specified in clauses (a) and (b) below, shall occur automatically without the giving of any such notice): (a) declare the Total Revolving Loan Commitment terminated, whereupon the Revolving Loan Commitment of each Lender shall forthwith terminate immediately and any Commitment Commission shall forthwith become due and payable without any other notice of any kind; (b) declare the principal of and any accrued interest in respect of all Loans and the Notes and all Obligations owing hereunder and thereunder to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Credit Party; (c) terminate any Letter of Credit which may be terminated in accordance with its terms; (d) direct the Borrowers to pay (and the Borrowers jointly and severally agree that upon receipt of such notice, or upon the occurrence of an Event of Default specified in Section 11.05 with respect to any Borrower, they will pay) to the Collateral Agent at the Payment Office such additional amount of cash or Cash Equivalents, to be held as security by the Collateral Agent, as is equal to the aggregate Stated Amount of all Letters of Credit issued for the account of the Company and then outstanding; (e) enforce, as Collateral Agent, all of the Liens and security                                             129  #93457508v14

 

interests created pursuant to the Security Documents; (f) enforce the Guaranty; and (g) apply any cash collateral held by the Administrative Agent pursuant to Section 5.02 to the repayment of the Obligations.  SECTION 12. The Agents.         12.01 Appointment.  .     The Lenders hereby irrevocably designate and appoint UBS AG, Stamford Branch, as Administrative Agent and Collateral Agent, in each case to act as specified herein and in the other Credit Documents.  Each Lender hereby irrevocably authorizes, and each holder of any Note by the acceptance of such Note shall be deemed irrevocably to authorize each Agent to take such action on its behalf under the provisions of this Agreement, the other Credit Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of such Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto.  Each Agent may perform any of its duties hereunder or under the other Credit Documents by or through its officers, directors, agents, employees or affiliates.         12.02 Nature of Duties.                 (a)  Each Agent in its capacity as such shall not have any duties or responsibilities  except those expressly set forth in this Agreement and in the other Credit Documents.  No Agent in its  capacity as such nor any of its officers, directors, agents, employees or affiliates shall be liable for any  action taken or omitted by it or them hereunder or under any other Credit Document or in connection  herewith or therewith, unless caused by its or their gross negligence or willful misconduct (as  determined by a court of competent jurisdiction in a final and non-appealable decision).  The duties of  each Agent shall be mechanical and administrative in nature; no Agent shall have by reason of this  Agreement or any other Credit Document a fiduciary relationship in respect of any Lender or the holder  of any Note; and nothing in this Agreement or in any other Credit Document, expressed or implied, is  intended to or shall be so construed as to impose upon any Agent any obligations in respect of this  Agreement or any other Credit Document except as expressly set forth herein or therein.                 (b)  Notwithstanding any other provision of this Agreement or any provision of any  other Credit Document and each Lead Arranger is named as such for recognition purposes only, and in  its capacity as such shall have no powers, duties, responsibilities or liabilities with respect to this  Agreement or the other Credit Documents or the transactions contemplated hereby and thereby; it being  understood and agreed that each Lead Arranger shall be entitled to all indemnification and  reimbursement rights in favor of the Administrative Agent as, and to the extent, provided for under  Sections 12.06 and 13.01.  Without limitation of the foregoing, no Lead Arranger shall, solely by  reason of this Agreement or any other Credit Document, have any fiduciary relationship in respect of  any Lender or any other Person.        12.03  Lack of Reliance on the Administrative Agent.  .     Independently and without reliance upon any Agent, each Lender and the holder of each Note, to the extent it deems appropriate, has made and shall continue to make (a) its own independent investigation of the financial condition and affairs of the Credit Parties and their respective Subsidiaries in connection with the making and the continuance of the Loans and the taking or not taking of any action in connection herewith and (b) its own appraisal of the creditworthiness of the Credit Parties and their respective Subsidiaries and, except as expressly provided in this Agreement, no Agent shall have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note                                            130  #93457508v14

 

with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter.  No Agent shall be responsible to any Lender or the holder of any Note for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of this Agreement or any other Credit Document or the financial condition of any Credit Party or any of their respective Subsidiaries or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Credit Document, or the financial condition of any Credit Party or any of their respective Subsidiaries or the existence or possible existence of any Default or Event of Default.         12.04 Certain Rights of the Agents.. If any Agent shall request instructions from the Required Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Credit Document, such Agent shall be entitled to refrain from such act or taking such action unless and until such Agent shall have received instructions from the Required Lenders; and no Agent shall incur liability to any Lender or the Credit Parties or any of their Subsidiaries by reason of so refraining.  Without limiting the foregoing, neither any Lender nor the holder of any Note shall have any right of action whatsoever against any Agent as a result of such Agent acting or refraining from acting hereunder or under any other Credit Document in accordance with the instructions of the Required Lenders.         12.05 Reliance..   Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by any Person that such Agent believed to be the proper Person, and, with respect to all legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder and thereunder, upon advice of counsel selected by such Agent.         12.06 Indemnification..   To the extent any Agent (or any affiliate thereof) is not reimbursed and indemnified by the Borrowers, the Lenders will reimburse and indemnify such Agent (and any affiliate thereof) in proportion to their respective “percentage” as used in determining the Required Lenders (determined as if there were no Defaulting Lenders) for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature which may be imposed on, asserted against or incurred by such Agent (or any affiliate thereof) in performing its duties hereunder or under any other Credit Document or in any way relating to or arising out of this Agreement or any other Credit Document; provided, that, no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s (or such affiliates’) gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).        12.07  Each Agent in Its Individual Capacity.. With respect to its obligation to make Loans, or issue or participate in Letters of Credit, under this Agreement, each Agent shall have the rights and powers specified herein for a “Lender” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term “Lender,” “Required Lenders,” “Supermajority Lenders” or any similar terms shall, unless the context clearly indicates otherwise, include each Agent in its individual capacity.  Each Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory services) to any Credit Party or any Affiliate of any Credit Party (or any Person engaged in a similar business with any Credit Party or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and                                            131  #93457508v14

 

other consideration from any Credit Party or any Affiliate of any Credit Party for services in connection with this Agreement and otherwise without having to account for the same to the Lenders.         12.08 Holders..    The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof, as the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee or assignee, as the case may be, of such Note or of any Note or Notes issued in exchange therefor.         12.09 Resignation by the Administrative Agent or the Collateral Agent..    (a) The Administrative Agent may resign from the performance of all its functions and duties hereunder and/or under the other Credit Documents at any time by giving 15 Business Days’ prior written notice to the Lenders and, unless a Default or an Event of Default under Section 11.05 then exists, the Company. Any such resignation by the Administrative Agent hereunder shall also constitute its resignation as an Issuing Lender and the Swingline Lender, in which case the resigning Administrative Agent (i) shall not be required to issue any further Letters of Credit or make any additional Swingline Loans hereunder and (ii) shall maintain all of its rights as Issuing Lender or Swingline Lender, as the case may be, with respect to any Letters of Credit issued by it, or Swingline Loans made by it, prior to the date of such resignation. Such resignation shall take effect upon the appointment of a successor Administrative Agent pursuant to clauses (b) and (c) below or as otherwise provided below.                 (b)  Upon any such notice of resignation by the Administrative Agent, the Required   Lenders shall appoint a successor Administrative Agent hereunder or thereunder who shall be a   commercial bank or trust company reasonably acceptable to the Company, which acceptance shall not   be unreasonably withheld or delayed (provided, that, the Company’s approval shall not be required if   an Event of Default then exists).                 (c)  If a successor Administrative Agent shall not have been so appointed within such   15 Business Day period, the Administrative Agent, with the consent of the Company (which consent   shall not be unreasonably withheld or delayed; provided, that, the Company’s consent shall not be   required if an Event of Default then exists), shall then appoint a successor Administrative Agent who  shall serve as Administrative Agent hereunder or thereunder until such time, if any, as the Required  Lenders appoint a successor Administrative Agent as provided above.                 (d)  If no successor Administrative Agent has been appointed pursuant to clause (b)  or (c) above by the 20th Business Day after the date such notice of resignation was given by the  Administrative Agent, the Administrative Agent’s resignation shall become effective and the Required  Lenders shall thereafter perform all the duties of the Administrative Agent hereunder and/or under any  other Credit Document until such time, if any, as the Required Lenders appoint a successor  Administrative Agent as provided above.                 (e)  Upon a resignation of the Administrative Agent pursuant to this Section 12.09,  the Administrative Agent shall remain indemnified to the extent provided in this Agreement and the  other Credit Documents and the provisions of this Section 12 (and the analogous provisions of the other  Credit Documents) shall continue in effect for the benefit of the Administrative Agent for all of its  actions and inactions while serving as an Agent hereunder.                                             132  #93457508v14

 

               (f)  The Collateral Agent may resign at any time upon written notice to the Company,  the Administrative Agent and each Lender and the resignation of Collateral Agent shall become  effective immediately upon the delivery of such written notice.                 (g)  Upon any such resignation of the Collateral Agent, at the option of the Company,   the Administrative Agent shall appoint a successor Collateral Agent hereunder who shall be a Lender   hereunder who has agreed to act in such capacity and who shall be reasonably acceptable to the   Company.                 (h)  Upon a resignation of the Collateral Agent pursuant to Section 12.09(f), the   Collateral Agent shall remain indemnified to the extent provided in this Agreement and the other Credit   Documents and the provisions of this Section 12 (and the analogous provisions of the other Credit   Documents) shall continue in effect for the benefit of the Collateral Agent for all of its actions and   inactions while serving as the Collateral Agent hereunder and under the other Credit Documents.         12.10 Collateral Matters.                 (a)  Each Lender authorizes and directs the Collateral Agent to enter into the Security  Documents (which, for purposes of this Section 12, also shall include all Cash Management Control  Agreements, Landlord Personal Property Collateral Access Agreements, bailee agreements and similar  agreements) and the Intercreditor Agreement for the benefit of the Lenders and the other Secured  Parties.  Each Lender hereby agrees, and each holder of any Note by the acceptance thereof will be  deemed to agree, that, except as otherwise set forth herein, any action taken by the Required Lenders in  accordance with the provisions of this Agreement, the Security Documents or the Intercreditor  Agreement, and the exercise by the Required Lenders of the powers set forth herein or therein, together  with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of  the Lenders.  The Collateral Agent is hereby authorized on behalf of all of the Lenders, without the  necessity of any notice to or further consent from any Lender, from time to time prior to an Event of  Default, to take any action with respect to any Collateral or Security Documents which may be  necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted  pursuant to the Security Documents.                 (b)  The Lenders hereby authorize the Collateral Agent, at its option and in its   discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral, and such   Lien shall be released by the Collateral Agent (i) upon termination of the Total Revolving Loan   Commitment (and all Letters of Credit) and payment and satisfaction of all of the Obligations (other   than inchoate indemnification obligations) at any time arising under or in respect of this Agreement or   the Credit Documents or the transactions contemplated hereby or thereby, (ii) constituting property   being sold or otherwise disposed of (to Persons other than the Company and its Subsidiaries) upon the   sale or other disposition thereof in compliance with Section 10.02, (iii) constituting all property owned   by any Credit Party or its Subsidiary, (x) all of which Equity Interests are sold or otherwise disposed of   (including by merger or consolidation) to Persons other than the Company and its Subsidiaries in   accordance with the terms and conditions of this Agreement or (y) which is designated or otherwise   becomes an Unrestricted Subsidiary in accordance with the terms and conditions of this Agreement, (iv)   if approved, authorized or ratified in writing by the Required Lenders (or all of the Lenders hereunder,   to the extent required by Section 13.12) or (v) as otherwise may be expressly provided in the relevant   Security Documents, the last sentence of each of Sections 10.01 and 10.02 or in the Intercreditor   Agreement.                 (c)  The Collateral Agent shall have no obligation whatsoever to the Lenders or to   any other Person to assure that the Collateral exists or is owned by any Credit Party or is cared for,                                            133  #93457508v14

 

 protected or insured or that the Liens granted to the Collateral Agent herein or pursuant hereto have  been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any  particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of  care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Collateral  Agent in this Section 12.10 or in any of the Security Documents, it being understood and agreed that in  respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent may act in  any manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in  the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or liability  whatsoever to the Lenders, except for its gross negligence or willful misconduct (as determined by a  court of competent jurisdiction in a final and non-appealable decision).        12.11  Delivery of Information..  The Administrative Agent shall not be required to deliver to any Lender originals or copies of any documents, instruments, notices, communications or other information received by the Administrative Agent from any Credit Party, any Subsidiary thereof, the Required Lenders, any Lender or any other Person under or in connection with this Agreement or any other Credit Document except (a) as specifically provided in this Agreement or any other Credit Document and (b) as specifically requested from time to time in writing by any Lender with respect to a specific document, instrument, notice or other written communication received by and in the possession of the Administrative Agent at the time of receipt of such request and then only in accordance with such specific request.  SECTION 13. Miscellaneous.         13.01 Payment of Expenses, etc.        The Borrowers hereby jointly and severally agree to:  (a) pay all reasonable out-of-pocket costs and expenses (including Expenses) of the Agents (including the reasonable fees and disbursements of counsel to the Agents, and expenses in connection with the appraisals and collateral examinations required pursuant to Section 9.02(b)) in connection with the preparation, execution, delivery and administration of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein and any amendment, waiver or consent relating hereto or thereto, of the Administrative Agent and its Affiliates in connection with its or their syndication efforts with respect to this Agreement and of the Administrative Agent, each Issuing Lender and the Swingline Lender in connection with the Back Stop Arrangements entered into by such Persons (provided, that, in the case of legal fees, unless the Company otherwise agrees, the Administrative Agent shall be limited to reimbursement for the reasonable fees and disbursements of one primary counsel to the Administrative Agent and one local counsel in each relevant jurisdiction) and, after the occurrence of an Event of Default, each of the Administrative Agent, the Collateral Agent, the Issuing Lenders, the Swingline Lender and Lenders in connection with the enforcement of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings (including, in each case, the reasonable fees and disbursements of one counsel, one consultant and one local counsel in each relevant jurisdiction, for the Administrative Agent and, after the occurrence of an Event of Default, one counsel and one financial advisor for the group of Issuing Lenders and the Swingline Lender and one counsel and one financial advisor for the group of Lenders and, solely in the case of a conflict of interest as determined by the affected Person, one additional counsel in each applicable jurisdiction to the affected Person); (b) pay and hold the Administrative Agent, the Collateral Agent, each of the Issuing Lenders, the Swingline Lender and each of the Lenders harmless from and against any and all present and future stamp, transfer and other similar documentary taxes with respect to the execution, delivery and administration of any Credit Document (other than any such taxes that are Connection Taxes imposed                                            134  #93457508v14

 

with respect to an assignment (other than an assignment made pursuant to Section 2.13)) and save the Administrative Agent, the Collateral Agent, each of the Issuing Lenders, the Swingline Lender and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to the Administrative Agent, such Issuing Lender, the Swingline Lender or such Lender) to pay such taxes; and (c) indemnify the Administrative Agent, the Collateral Agent, each Issuing Lender, the Swingline Lender and each Lender, and each of their respective officers, directors, employees, representatives, agents, affiliates, trustees and investment advisors (each, an “Indemnified Person”) from and hold each of them harmless against any and all liabilities, obligations (including removal or remedial actions), losses, damages, penalties, claims, actions, judgments, suits, costs, expenses and disbursements (including reasonable attorneys’ and consultants’ fees and disbursements) incurred by, imposed on or assessed against any of them as a result of, or arising out of, or in any way related to, or by reason of, (i) any investigation, litigation or other proceeding (whether or not the Administrative Agent, the Collateral Agent, any Issuing Lender, the Swingline Lender or any Lender is a party thereto and whether or not such investigation, litigation or other proceeding is brought by or on behalf of any Credit Party) related to the entering into and/or performance of this Agreement or any other Credit Document or the use of any Letter of Credit or the proceeds of any Loans hereunder or the consummation of the Transaction or any other transactions contemplated herein or in any other Credit Document or the exercise of any of their rights or remedies provided herein or in the other Credit Documents, or (ii) the actual or alleged presence or Release of Hazardous Materials at, in, on under or from any real property at any time owned, leased or operated by any Credit Party or any of their respective Subsidiaries, the manufacture, generation, use, transportation, treatment, storage, disposal or recycling of Hazardous Materials, or the arrangement of any such activities, by or on behalf of any Credit Party or any of their respective Subsidiaries at any location, whether or not owned, leased or operated by any Credit Party or any of their respective Subsidiaries, the non-compliance by any Credit Party or any of their respective Subsidiaries with any Environmental Law or Environmental Permits, any Environmental Claim asserted against or relating to any Credit Party, any of their respective Subsidiaries or any real property at any time owned, leased or operated by any Credit Party or any of their respective Subsidiaries, or any obligation or liability of or relating to any Credit Party or any of its Subsidiaries arising from or relating to any Environmental Law, Environmental Permit or Hazardous Material, including, in each case, the reasonable fees and disbursements of counsel and other consultants incurred in connection with any such investigation, litigation or other proceeding (but excluding (x) any losses, liabilities, claims, damages or expenses to the extent incurred by reason of the gross negligence or willful misconduct of the Indemnified Person to be indemnified (as determined by a court of competent jurisdiction in a final and nonappealable decision), (y) any disputes solely among Indemnified Persons (other than (A) any disputes relating to any act or omission of any Credit Party or its Affiliates and (B) any claim against the Administrative Agent, the Collateral Agent, any Lead Arranger, the Swingline Lender or any Issuing Lender in its capacity or in fulfilling such roles under or pursuant to this Agreement) and (z) any losses, liabilities, claims, damages or expenses relating to the matters referred to in Sections 2.10, 2.11, 3.06 and 5.04 (which shall be the sole remedy in respect of the matters set forth therein)).  To the extent that the undertaking to indemnify, pay or hold harmless the Administrative Agent, the Collateral Agent, any Issuing Lender, the Swingline Lender or any Lender set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, the Borrowers jointly and severally shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities which is permissible under applicable law.         To the full extent permitted by applicable law, no Credit Party or Indemnified Person shall assert, and each Credit Party shall not assert, andand Indemnified Person hereby waives, any claim against any Indemnified Person or Credit Party, respectively, on any theory of liability, for special, indirect, consequential or incidental damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any Loan, Letter of                                            135  #93457508v14

 

Credit or the use of the proceeds thereof.  No Credit Party or Indemnified Person shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby, except to the extent the liability of such Indemnified Person results from such Indemnified Person’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and nonappealable decision).  In addition, the Borrowers jointly and severally agree to reimburse the Administrative Agent and the Collateral Agent for all reasonable third party administrative, audit and monitory expenses incurred in connection with the Borrowing Base and determinations thereunder.         13.02 Right of Setoff.        In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent, each Issuing Lender and each Lender is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by the Administrative Agent, such Issuing Lender or such Lender (including by branches and agencies of the Administrative Agent, such Issuing Lender or such Lender wherever located) to or for the credit or the account of any Credit Party or any of their respective Subsidiaries against and on account of the Obligations and liabilities of the Credit Parties to the Administrative Agent, such Issuing Lender or such Lender under this Agreement or under any of the other Credit Documents, including all interests in Obligations purchased by such Lender pursuant to Section 13.04(b), and all other claims of any nature or description arising out of or connected with this Agreement or any other Credit Document, irrespective of whether or not the Administrative Agent, such Issuing Lender or such Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured.         13.03 Notices.                 (a)  Except as otherwise expressly provided herein, all notices and other  communications provided for hereunder shall be in writing (including telegraphic, telecopier or cable  communication) and mailed, telegraphed, telecopied, cabled or delivered: if to any Credit Party, at the  address specified opposite its signature below or in the other relevant Credit Documents; if to any  Lender, at its address specified on Schedule 13.03; if to the Administrative Agent or Collateral Agent,  at the Notice Office; or, as to any Credit Party or the Administrative Agent, at such other address as  shall be designated by such party in a written notice to the other parties hereto and, as to each Lender, at  such other address as shall be designated by such Lender in a written notice to the Company and the  Administrative Agent.  All such notices and communications shall, when mailed, telegraphed,  telecopied, or cabled or sent by overnight courier, be effective when deposited in the mails, delivered to  the telegraph company, cable company or overnight courier, as the case may be, or sent by telecopier,  except that notices and communications to the Administrative Agent, the Collateral Agent and the  Company shall not be effective until received by the Administrative Agent, the Collateral Agent or the  Company, as the case may be.                 (b)  Notices and other communications to the Lenders hereunder may be delivered or  furnished by electronic communications pursuant to procedures approved by the Administrative Agent;  provided, that, the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by  the Administrative Agent and the applicable Lender.  Each of the Administrative Agent and each Credit  Party may, in its discretion, agree to accept notices and other communications to it hereunder by                                            136  #93457508v14

 

 electronic communications pursuant to procedures approved by it; provided, that, approval of such  procedures may be limited to particular notices or communications.        13.04  Benefit of Agreement; Assignments; Participations.                 (a)  This Agreement shall be binding upon and inure to the benefit of and be  enforceable by the respective successors and assigns of the parties hereto; provided, however, no Credit   Party may assign or transfer any of its rights, obligations or interest hereunder without the prior written   consent of the Lenders and, provided, further, that, although any Lender may grant participations to   Eligible Transferees in its rights hereunder, such Lender shall remain a “Lender” for all purposes   hereunder (and may not transfer or assign all or any portion of its Revolving Loan Commitment   hereunder except as provided in Sections 2.13 and 13.04(b)) and the transferee, assignee or participant,   as the case may be, shall not constitute a “Lender” hereunder and, provided further, that no Lender shall  transfer or grant any participation under which the participant shall have rights to approve any  amendment to or waiver of this Agreement or any other Credit Document except to the extent such  amendment or waiver would (i) extend the final scheduled maturity of any Loan, Note or Letter of  Credit (unless such Letter of Credit is not extended beyond the Revolving Commitment Termination  Date) in which such participant is participating, or reduce the rate or extend the time of payment of  interest or Fees thereon (except in connection with a waiver of applicability of any post-default increase  in interest rates) or reduce the principal amount thereof (it being understood that any amendment or  modification to the financial definitions in this Agreement or to Section 13.07(a) shall not constitute a  reduction in the rate of interest or Fees payable hereunder), or increase the amount of the participant’s  participation over the amount thereof then in effect (it being understood that a waiver of any Default or  Event of Default or of a mandatory reduction in the Total Revolving Loan Commitment shall not  constitute a change in the terms of such participation, and that an increase in any Revolving Loan  Commitment (or the available portion thereof) or Loan shall be permitted without the consent of any  participant if the participant’s participation is not increased as a result thereof), (ii) consent to the  assignment or transfer by any Borrower of any of its rights and obligations under this Agreement or (iii)  release all or substantially all of the Collateral under all of the Security Documents (except as expressly  provided in the Credit Documents) supporting the Loans or Letters of Credit hereunder in which such  participant is participating.  In the case of any such participation, the participant shall not have any  rights under this Agreement or any of the other Credit Documents (the participant’s rights against such  Lender in respect of such participation to be those set forth in the agreement executed by such Lender in  favor of the participant relating thereto) and all amounts payable by the Borrowers hereunder shall be  determined as if such Lender had not sold such participation; provided, however, that the Borrowers  agree that each participant shall be entitled to the benefits of Section  5.04 if such participant agrees to  comply with the requirements of Section 5.04 to the same extent as if it were a Lender and had acquired  its interest by assignment pursuant to Section 13.04(b) (provided, however, that no participant shall be   entitled to receive any greater payment pursuant to Section  3.06 than the participating Lender would   have been entitled to receive, except to the extent such entitlement to receive a greater payment results   from a Change in Tax Law that occurs after the Participant acquired the applicable participation).  Each   Lender that sells a participation pursuant to this Section 13.04(a) shall, acting solely for this purpose as   a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of   each participant and the principal amounts (and stated interest) of each participant’s interest in the   Loans or other obligations under this Agreement (a “Participant Register”).  The entries in a Participant   Register shall be conclusive and such Lender shall treat each Person whose name is recorded in its   Participant Register as the owner of such participation for all purposes of this Agreement   notwithstanding any notice to the contrary.  For the avoidance of doubt, it is understood and agreed that   no Lender shall have any obligation to disclose all or any portion of its Participant Register to any   Person (including the identity of any participant or any information relating to a participant’s interest in   any Loan or other obligation under this Agreement) except to the extent that such disclosure is                                            137  #93457508v14

 

 necessary to establish that such Loan or other obligation is in registered form under Treasury   Regulation Section 5f.103-1(c).                 (b)  Any Lender (or any Lender together with one or more other Lenders) may (x)   assign all or a portion of its Revolving Loan Commitment and related outstanding Obligations (or, if the   Revolving Loan Commitment has terminated, outstanding Obligations) hereunder to (i) (A) its parent   company and/or any affiliate of such Lender or (B) to one or more other Lenders or any affiliate of any   such other Lender (provided, that, any fund that invests in loans and is managed or advised by the same  investment advisor of another fund which is a Lender (or by an Affiliate of such investment advisor)  shall be treated as an affiliate of such other Lender for the purposes of this sub-clause (x)(i)(B)), or (ii)  in the case of any Lender that is a fund that invests in loans, any other fund that invests in loans and is  managed or advised by the same investment advisor of any Lender or by an Affiliate of such investment  advisor or (y) assign all, or if less than all, a portion equal to at least $5,000,000 (or such lesser amount  as the Administrative Agent and, so long as no Event of Default then exists and is continuing, the  Company may otherwise agree) in the aggregate for the assigning Lender or assigning Lenders, of such  Revolving Loan Commitments and related outstanding Obligations (or, if the Revolving Loan  Commitments have terminated, outstanding Obligations) hereunder to one or more Eligible Transferees  (treating any fund that invests in loans and any other fund that invests in loans and is managed or  advised by the same investment advisor of such fund or by an Affiliate of such investment advisor as a  single assignor or Eligible Transferee (as applicable) (if any)), each of which assignees shall become a  party to this Agreement as a Lender by execution of an Assignment and Assumption Agreement,  provided, that, no such assignment may be made to any such Person that is, or would at such time  constitute, a Defaulting Lender, provided, further, that (i) at such time, Schedule 1.01(a) shall be   deemed modified to reflect the Revolving Loan Commitments and/or outstanding Revolving Loans, as   the case may be, of such new Lender and of the existing Lenders, (ii) upon the surrender of the relevant   Notes by the assigning Lender (or, upon such assigning Lender’s indemnifying the Borrowers for any   lost Note pursuant to a customary indemnification agreement) new Notes will be issued, at the   Borrowers’ joint and several expense, to such new Lender and to the assigning Lender upon the request   of such new Lender or assigning Lender, such new Notes to be in conformity with the requirements of   Section 2.05 (with appropriate modifications) to the extent needed to reflect the revised Revolving Loan   Commitments and/or outstanding Revolving Loans, as the case may be, (iii) so long as no Event of   Default then exists, the consent of the Company shall be required in connection with any such   assignment pursuant to clause (y) above (such consent, in any case, not to be unreasonably withheld,   delayed or conditioned); provided, that, the Company shall be deemed to have consented to any such   assignment unless it shall object thereto by written notice to the Administrative Agent within ten   Business Days after having received notice thereof, (iv) the consent of the Administrative Agent, the   Swingline Lender and each Issuing Lender shall be required in connection with any such assignment of   Revolving Loan Commitments (and related Obligations) (each such consent, in any case, not to be   unreasonably withheld, delayed or conditioned), (v) the Administrative Agent shall receive at the time   of each such assignment, from the assigning or assignee Lender, the payment of a non-refundable   assignment fee of $3,500 (provided, that, only one such fee shall be payable in the case of one or more  concurrent assignments by or to investment funds managed or advised by the same investment advisor  or an affiliated investment advisor), and (vi) no such transfer or assignment will be effective until  recorded by the Administrative Agent on the Register pursuant to Section 13.15.  To the extent of any  assignment pursuant to this Section 13.04(b), the assigning Lender shall be relieved of its obligations  hereunder with respect to its assigned Revolving Loan Commitment and outstanding Revolving Loans.  To the extent that an assignment of all or any portion of a Lender’s Revolving Loan Commitment and  related outstanding Obligations pursuant to Section 2.13 or this Section 13.04(b) would, at the time of  such assignment, result in increased costs under Section 2.10, 3.06 or 5.04 from those being charged by  the respective assigning Lender prior to such assignment, then the Borrowers shall not be obligated to  pay such increased costs (although the Borrowers, in accordance with and pursuant to the other                                            138  #93457508v14

 

 provisions of this Agreement, shall be obligated to pay any other increased costs of the type described  above resulting from changes after the date of the respective assignment).                 (c)  (i) Notwithstanding the foregoing or any other provision of this Agreement to the  contrary and in addition to the requirements provided in Section 13.04(b), any assignment of any  Revolving Loan Commitment and/or related Obligations to any Affiliated Lender shall be subject to  each of the following conditions and agreements:                      (A)    Affiliated Lenders shall not receive information provided by Agent or  any other Lender (other than administrative notices and certain other information as may be agreed) and  shall not be permitted to attend or participate (including by telephone) in any meetings or discussions  (or portion thereof) between or among Agents and/or Lenders;                      (B)    Affiliated Lenders shall not have any right to vote any of their interests  under the Credit Facility, except with respect to any amendment (1) to increase the Revolving Loan  Commitment of such Affiliated Lender, (2) to extend or postpone the final maturity or any scheduled  date of amortization with respect to their Loans, (3) to reduce the amount of principal payable to such   Affiliated Lender in its capacity as a Lender or (4) that disproportionately affect such Affiliated Lender   in its capacity as a Lender as compared to other Lenders;                      (C)    Each Affiliated Lender hereby agrees that, if any Credit Party shall be   subject to any Insolvency Proceeding, such Affiliated Lender (solely in its capacity as Lender) shall not   take any step or action in such Insolvency Proceeding to object to, impede or delay the exercise of any  right or the taking of any action by any Agent (or the taking of any action by a third party (including   the Credit Parties) that is supported by any Agent or the Required Lenders) in relation to such Affiliated   Lender’s claim (the “Affiliated Lender’s Claim”) (including, without limitation, acting solely as a  Lender, objecting to any debtor in possession financing, use of cash collateral, grant of adequate  protection, sale or disposition, bidding procedures or credit bid, compromise or plan of reorganization  or liquidation), and such Affiliated Lender agrees that it shall not vote in favor of any plan of  reorganization or liquidation that is not consented to by the Super Majority Lenders;                      (D)    Affiliated Lenders may not direct any Agent or any Lender to take or  refrain from taking any action under the Credit Documents, shall not be entitled to the advice of counsel  to the Agent or the Lenders (and hereby waives any conflict of interest relating to such counsel to the  Agent or the Lenders), and may not challenge attorney-client privilege between the Agents, other  Lenders and such counsel;                      (E)   Subject to the applicable law, each Affiliated Lender hereby expressly  and irrevocably waives, for the benefit of the Agents and the Lenders, any principles or provisions of  law (including as set forth in the Bankruptcy Code or other bankruptcy law, statutory or otherwise)  which are or might be in conflict with the terms of this Agreement and any legal or equitable discharge  of such Affiliated Lender’s obligations hereunder.                       (F)   Affiliated Lenders shall automatically be deemed to have waived any  right (in their capacity as an Affiliated Lender) to bring any action against any Agent or any Lender for  breach of fiduciary duty;                      (G)    The amount of Revolving Loan Commitments purchased by Affiliated  Lenders shall not in the aggregate at any time exceed 10% of the outstanding amount of the Total  Revolving Loan Commitments;                                            139  #93457508v14

 

                    (ii)   Unless the Administrating Agent and each Issuing Lender provides prior written consent, (A) no Affiliated Lender may assign its Revolving Loans or Revolving Loan Commitments to any of its Affiliates and (B) no Affiliated Lender may provide Incremental Commitments.                 (d)  Nothing in this Agreement shall prevent or prohibit any Lender from pledging its  Loans and Notes hereunder to a Federal Reserve Bank in support of borrowings made by such Lender  from such Federal Reserve Bank, any Lender which is a fund may pledge all or any portion of its Loans  and Notes to its trustee or to a collateral agent providing credit or credit support to such Lender in  support of its obligations to such trustee, such collateral agent or a holder of such obligations, as the  case may be.  No pledge pursuant to this clause (c) shall (i) release the transferor Lender from any of its  obligations hereunder or (ii) constitute a sale or assignment unless and until such pledge shall be  realized upon (and any such realization or foreclosure must comply this Section 13.04).                 (e)  Any Lender which assigns all of its Revolving Loan Commitment and/or Loans  hereunder in accordance with Section 13.04(b) shall cease to constitute a “Lender” hereunder, except  with respect to indemnification provisions under this Agreement (including Sections 2.10, 2.11, 3.06,  5.04, 12.06, 13.01 and 13.06), which shall survive as to such assigning Lender.        13.05  No Waiver; Remedies Cumulative  .     No failure or delay on the part of the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no course of dealing between the Borrower or any other Credit Party and the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in any other Credit Document expressly provided are cumulative and not exclusive of any rights, powers or remedies which the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender would otherwise have.  No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender to any other or further action in any circumstances without notice or demand.         13.06 Payments Pro Rata.                 (a)  Except as otherwise provided in this Agreement, the Administrative Agent agrees  that promptly after its receipt of each payment from or on behalf of any Borrower in respect of any  Obligations hereunder, the Administrative Agent shall distribute such payment to the Lenders entitled  thereto (other than any Lender that has consented in writing to waive its pro rata share of any such  payment) pro rata based upon their respective shares, if any, of the Obligations with respect to which  such payment was received.                 (b)  Each of the Lenders agrees that, if it should receive any amount hereunder  (whether by voluntary payment, by realization upon security, by the exercise of the right of setoff or  banker’s lien, by counterclaim or cross action, by the enforcement of any right under the Credit  Documents, or otherwise), which is applicable to the payment of the principal of, or interest on, the  Loans, Unpaid Drawings, Commitment Commission or Letter of Credit Fees, of a sum which with  respect to the related sum or sums received by other Lenders is in a greater proportion than the total of  such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and                                            140  #93457508v14

 

 due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess   payment shall purchase for cash without recourse or warranty from the other Lenders an interest in the   Obligations of the respective Credit Party to such Lenders in such amount as shall result in a   proportional participation by all the Lenders in such amount; provided, that, if all or any portion of such  excess amount is thereafter recovered from such Lenders, such purchase shall be rescinded and the  purchase price restored to the extent of such recovery, but without interest.                 (c)  Notwithstanding anything to the contrary contained herein, the provisions of the  preceding Sections 13.06(a) and (b) shall be subject to the express provisions of this Agreement which  require, or permit, differing payments to be made to Non-Defaulting Lenders as opposed to Defaulting  Lenders.        13.07  Calculations; Computations.                 (a)  The financial statements to be furnished to the Lenders pursuant hereto shall be  made and prepared in accordance with GAAP consistently applied throughout the periods involved  (except as set forth in the notes thereto or as otherwise disclosed in writing by the Company to the  Lenders); provided, that, (i) except as otherwise specifically provided herein, all computations and all   definitions (including accounting terms) used in determining the Total Leverage Ratio, Secured   Leverage Ratio and the Fixed Charge Coverage Ratio and in determining compliance with Section 9.13   and Section 10.07, shall utilize GAAP and policies in conformity with those used to prepare the audited   financial statements of the Company referred to in Section 8.05(a) for its Fiscal Year ended December   31, 2015, (ii) (ii) notwithstanding anything to the contrary contained herein, all such financial  statements shall be prepared, and all financial covenants contained herein or in any other Credit  Document shall be calculated, in each case, without giving effect to any election under FASB ASC 825  (or any similar accounting principle permitting a Person to value its financial liabilities at the fair value  thereof), (iii) (iii) to the extent expressly provided herein, certain calculations shall be made on a Pro  Forma Basis and (iv) (iv) the financial covenant set forth in Section  10.07 shall be calculated on a Pro  Forma Basis with respect to any Permitted Acquisition or Significant Asset Sale occurring during the  relevant Test Period.                 (b)  All computations of interest, Commitment Commission and other Fees hereunder  shall be made on the basis of a year of 360 days for the actual number of days (including the first day  but excluding the last day) occurring in the period for which such interest, Commitment Commission or  Fees are payable.        13.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.                 (a)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND  THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER  SHALL, EXCEPT AS OTHERWISE PROVIDED IN ANY MORTGAGE, BE CONSTRUED IN  ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW  YORK (WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, EXCEPT FOR NEW  YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402).  ANY LEGAL  ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER  CREDIT DOCUMENT SHALL (EXCEPT AS OTHERWISE PERMITTED BELOW) BE  BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED  STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE  LOCATED IN THE COUNTY OF NEW YORK, BOROUGH OF MANHATTAN, AND, BY  EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT                                            141  #93457508v14

 

 DOCUMENT, EACH PARTY HERETO HEREBY IRREVOCABLY ACCEPTS FOR ITSELF  AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE  EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH PARTY HERETO  HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS  LACK PERSONAL JURISDICTION OVER SUCH PERSON, AND AGREES NOT TO PLEAD  OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS  AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE  AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION  OVER SUCH PERSON.  EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS  TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN  ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY  REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PERSON AT ITS  ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO  BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH PARTY HERETO  HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS  AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN  ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER  CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR  INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE  ADMINISTRATIVE AGENT, ANY ISSUING LENDER, ANY LENDER OR THE HOLDER OF  ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO  COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY  CREDIT PARTY IN ANY OTHER JURISDICTION.                 (b)  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY  OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE  OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN  CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT  BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY  FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY  SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH  COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.                 (c)  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY  IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS  AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY.        13.09  Counterparts.. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with the Company and the Administrative Agent.  Delivery of an executed counterpart hereof by facsimile or, electronic transmission, telecopy or other electronic imaging means (e.g., “pdf” or “tif”) or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, shall be as effective as delivery of an original executed counterpart hereof.         13.10 Effectiveness.. This Agreement shall become effective on the date (the “Effective Date”) on which the (a) Credit Parties, the Administrative Agent, the Collateral Agent and each of the Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have                                            142  #93457508v14

 

delivered (by electronic means or otherwise) the same to the Administrative Agent at the Notice Office or, in the case of the Lenders, shall have given to the Administrative Agent telephonic (confirmed in writing), written or telex notice (actually received) at such office that the same has been signed and mailed to it and (b) the conditions contained in Section 6 have been met to the reasonable satisfaction of the Administrative Agent and the Collateral Agent.  Unless the Administrative Agent has received actual notice from any Lender that the conditions described in clause (b) of the preceding sentence have not been met to its satisfaction, upon the satisfaction of the condition described in clause (a) of the immediately preceding sentence and upon the Administrative Agent’s and the Collateral Agent’s good faith determination that the conditions described in clause (b) of the immediately preceding sentence have been met, then the Effective Date shall have deemed to have occurred, regardless of any subsequent determination that one or more of the conditions thereto had not been met (although the occurrence of the Effective Date shall not release the Borrower from any liability for failure to satisfy one or more of the applicable conditions contained in Section 6).  The Administrative Agent will give each Credit Party and each Lender prompt written notice of the occurrence of the Effective Date.         13.11 Headings Descriptive.. The headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.         13.12 Amendment or Waiver; etc.                 (a)  Neither this Agreement nor any other Credit Document nor any terms hereof or  thereof may be changed, waived, discharged or terminated unless such change, waiver, discharge or  termination is in writing signed by the respective Credit Parties party hereto or thereto and the Required  Lenders (although (A) additional parties may be added (and annexes may be modified) to reflect such  additions, and Credit Parties and Subsidiaries of the Company may be released from, the Guaranty and  the Security Documents in accordance with the provisions hereof, and (B) the Borrowers shall have the  right, without requiring the consent of the Administrative Agent or the Lenders (except to the extent  otherwise provided in Section 2.15), to incur the Incremental Commitments and related Loans, in each  case in accordance with Section 2.15); provided, that, no such change, waiver, discharge or termination  shall, without the consent of each Lender (other than, except with respect to the following clauses (i)  and (iii) (but, in the case of such clause (iii), only to the extent relating to following clause (i)), a  Defaulting Lender) (with Obligations being directly affected in the case of following clause (i)), (i)  extend the final scheduled maturity of any Loan or Note or extend the stated expiration date of any  Letter of Credit beyond the Revolving Commitment Termination Date, or reduce the rate or extend the  time of payment of interest or Fees thereon (except (x) in connection with the waiver of applicability of  any post-default increase in interest rates and (y) extensions expressly permitted by Section 2.16), or  reduce (or forgive) the principal amount thereof (it being understood that any amendment or  modification to the financial definitions in this Agreement or to Section 13.07(a) shall not constitute a  reduction in the rate of interest or Fees for the purposes of this clause (i)), (ii) release all or substantially  all of the Collateral under all the Security Documents (except as expressly provided in the Credit  Documents) or release all or substantially all of the value of the Guaranty made by the Guarantors  (except as expressly provided in the Credit Documents), (iii) amend, modify or waive any provision of  this Section 13.12(a) (except for technical amendments with respect to additional extensions of credit  pursuant to this Agreement which afford the protections to such additional extensions of credit of the  type provided to the Revolving Loan Commitments and the Loans on the Effective Date) or Section  13.06, (iv) reduce the “majority” voting threshold specified in the definition of Required Lenders (it  being understood that, with the consent of the Required Lenders, additional extensions of credit  pursuant to this Agreement may be included in the determination of the Required Lenders on  substantially the same basis as the extensions of Revolving Loan Commitments are included on the  Effective Date), (v) consent to the release, assignment or transfer by any Borrower of any of its rights                                            143  #93457508v14

 

 and obligations under this Agreement, (vi) amend Section 2.16 the effect of which is to extend the  maturity of Revolving Loan Commitment or Revolving Loans of any Lender without its consent or (vii)   amend the priority of payments set forth in Section 8.1(a) of Security Agreement or Section 5.03(d)   hereof; provided, further, that no such change, waiver, discharge or termination shall (1) increase the   Revolving Loan Commitment of any Lender (including a Defaulting Lender) over the amount thereof   then in effect without the consent of such Lender (it being understood that waivers or modifications of   conditions precedent, covenants, Defaults or Events of Default or of a mandatory reduction in the Total   Revolving Loan Commitment shall not constitute an increase of the Revolving Loan Commitment of   any Lender, and that an increase in the available portion of the Revolving Loan Commitment of any   Lender shall not constitute an increase of the Revolving Loan Commitment of such Lender), (2) without   the consent of each Issuing Lender, amend, modify or waive any provision of Section 3 or alter its   rights or obligations with respect to Letters of Credit, (3) without the consent of the Swingline Lender,   alter the Swingline Lender’s rights or obligations with respect to Swingline Loans, (4) without the   consent of the Administrative Agent, amend, modify or waive any provision of Section 12 or any other   provision of this Agreement or any other Credit Document as same relates to the rights or obligations of   the Administrative Agent, (5) without the consent of the Collateral  Agent, amend, modify or waive any   provision of the Agreement or any other Credit Documents relating to the rights or obligations of the   Collateral Agent or (6) without the consent of the Supermajority Lenders, (x) amend the definition of   Supermajority Lenders (it being understood that, with the consent of the Required Lenders, additional   extensions of credit pursuant to this Agreement may be included in the determination of the   Supermajority Lenders on substantially the same basis as the extensions of Loans and Revolving Loan   Commitments are included on the Effective Date), or (y) increase the advance rates applicable to the   Borrowing Base over those in effect on the Effective Date or amend or expand any of the following   definitions, in each case the effect of which would be to increase the amounts available for borrowing   hereunder: Borrowing Base, Eligible Accounts and Eligible Inventory (including, in each case, the   defined terms used therein) (it being understood that the establishment, modification or elimination of   Reserves and adjustment, establishment and (to the extent established after the Effective Date)   elimination of criteria for Eligible Accounts and Eligible Inventory, in each case by the Collateral   Agent in accordance with the terms hereof, will not be deemed to require a Supermajority Lender   consent).                 (b)  If, in connection with any proposed change, waiver, discharge or termination of   or to any of the provisions of this Agreement as contemplated by clauses (i) through (vii), inclusive, of   the first proviso to Section 13.12(a), the consent of the Required Lenders is obtained but the consent of   one or more of such other Lenders whose consent is required is not obtained, then the Borrowers shall   have the right, so long as all non-consenting Lenders whose individual consent is required are treated as   described in either clause (A) or (B) below, to either (A) replace each such non-consenting Lender or   Lenders with one or more Replacement Lenders pursuant to Section 2.13 so long as at the time of such   replacement, each such Replacement Lender consents to the proposed change, waiver, discharge or   termination or (B) terminate such non-consenting Lender’s Revolving Loan Commitment and/or repay   all outstanding Revolving Loans of such Lender and/or cash collateralize its applicable RL Percentage   of the Letter of Credit Outstandings in accordance with Sections 4.02(b) and/or 5.01(b); provided, that,   unless the Revolving Loan Commitments which are terminated and Revolving Loans which are repaid   pursuant to preceding clause (B) are immediately replaced in full at such time through the addition of   new Lenders or the increase of the Revolving Loan Commitments and/or outstanding Revolving Loans   of existing Lenders (who in each case must specifically consent thereto), then in the case of any action   pursuant to preceding clause (B), the Required Lenders (determined after giving effect to the proposed   action) shall specifically consent thereto, provided, further, that the Borrowers shall not have the right  to replace a Lender, terminate its Revolving Loan Commitment or repay its Revolving Loans solely as a                                             144  #93457508v14

 

 result of the exercise of such Lender’s rights (and the withholding of any required consent by such  Lender) pursuant to the second proviso to Section 13.12(a).                 (c)  Notwithstanding the foregoing, (x) any provision of this Agreement may be  amended by an agreement in writing entered into by each Credit Party, the Required Lenders and the  Administrative Agent (and, if their rights or obligations are affected thereby, the Collateral Agent, each  Issuing Lender and the Swingline Lender) if (i) by the terms of such agreement the Revolving Loan  Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon  the effectiveness of such amendment and (ii) at the time such amendment becomes effective, each  Lender not consenting thereto receives payment (including pursuant to an assignment to a replacement  Lender in accordance with Section 13.04) in full of this principal of and interest accrued on each Loan  made by it and all other amounts owing to it or accrued for its account under this Agreement, (y) this  Agreement may be amended (or amended and restated) with the written consent of the Required  Lenders, the Administrative Agent and the Borrowers (a) to add one or more additional credit facilities  to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and  the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the  other Credit Documents with the Revolving Loans and the accrued interest and fees in respect thereof  and (b) to include appropriately the Lenders holding such credit facilities in any determination of the  Required Lenders and (z) this Agreement and the other Credit Documents may be amended (or  amended and restated) as contemplated by Section 2.16.                 (d)  Notwithstanding anything to the contrary contained in this Section 13.12, (x)  Security Documents (including any Additional Security Documents) and related documents executed  by Subsidiaries in connection with this Agreement may be amended, supplemented and waived with the  consent of the Administrative Agent and the Borrowers without the need to obtain the consent of any  other Person if such amendment, supplement or waiver is delivered in order (i) to comply with local law   or advice of local counsel, or (ii) to cause such Security Document or other document to be consistent   with this Agreement and the other Credit Documents and (y) if following the Effective Date, the   Administrative Agent and any Credit Party shall have jointly identified an ambiguity, inconsistency,  obvious error or any error or omission of a technical or immaterial nature, in each case, in any provision  of the Credit Documents (other than the Security Documents), then the Administrative Agent and the  Credit Parties shall be permitted to amend such provision and such amendment shall become effective  without any further action or consent of any other party to any Credit Documents if the same is not  objected to in writing by the Required Lenders within five (5) Business Days following receipt of  notice thereof.        13.13  Survival..   All indemnities set forth in the Credit Documents, including in Sections 2.10, 2.11, 3.06, 5.04, 12.06 and 13.01 hereof, shall survive the execution, delivery and termination of this Agreement and the Notes and the making and repayment of the Obligations.         13.14 Domicile of Loans.. Each Lender may transfer and carry its Loans at, to or for the account of any office, Subsidiary or Affiliate of such Lender.  Notwithstanding anything to the contrary contained herein, to the extent that a transfer of Loans pursuant to this Section 13.14 would, at the time of such transfer, result in increased costs under Section 2.10, 2.11, 3.06 or 5.04 from those being charged by the respective Lender prior to such transfer, then the Borrowers shall not be obligated to pay such increased costs (although the Borrowers shall be jointly and severally obligated to pay any other increased costs of the type described above resulting from changes in any applicable law, treaty, government rule, regulation, guidelines or order, or in the official interpretation thereof, after the date of the respective transfer).                                             145  #93457508v14

 

      13.15  Register..   The Borrowers hereby designate the Administrative Agent to serve as its agent, solely for purposes of this Section 13.15, to maintain a register (the “Register”) on which it will record the Revolving Loan Commitments (and stated interest) from time to time of each of the Lenders, the Loans made by each of the Lenders, the Letter of Credit Outstandings with respect to each Issuing Lender and each repayment in respect of the principal amount of the Loans of each Lender and the Letter of Credit Outstandings with respect to such Issuing Lender.  Failure to make any such recordation, or any error in such recordation, shall not affect the Borrowers’ obligations in respect of such Loans.  The transfer of the Revolving Loan Commitment of such Lender and the Letter of Credit Outstandings with respect to such Issuing Lender, and the rights to the principal thereof, and interest thereon, shall not be effective until such transfer is recorded on the Register maintained by the Administrative Agent with respect to ownership of such Revolving Loan Commitment, Letters of Credit and Loans, and prior to such recordation all amounts owing to the transferor with respect to such Revolving Loan Commitment, Letters of Credit and Loans shall remain owing to the transferor.  The registration of assignment or transfer of all or part of any Revolving Loan Commitments, Letters of Credit and Loans shall be recorded by the Administrative Agent on the Register only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment and Assumption Agreement pursuant to Section 13.04(b). Upon such acceptance and recordation, the assignee specified therein shall be treated as a Lender for all purposes of this Agreement.  Coincident with the delivery of such an Assignment and Assumption Agreement to the Administrative Agent for acceptance and registration of assignment or transfer of all or part of a Loan, or as soon thereafter as practicable, the assigning or transferor Lender shall surrender the Note (if any) evidencing such Loan, and thereupon one or more new Notes in the same aggregate principal amount shall be issued to the assigning or transferor Lender and/or the new Lender at the request of any such Lender.  The Borrowers jointly and severally agree to indemnify the Administrative Agent from and against any and all losses, claims, damages and liabilities of whatsoever nature which may be imposed on, asserted against or incurred by the Administrative Agent in performing its duties under this Section 13.15 (other than any losses, claims, damages and liabilities to the extent incurred by reason of the gross negligence or willful misconduct of the Administrative Agent (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  Each Lender shall have the right, upon written request to the Administrative Agent, to view the Register as to its own holdings and liabilities.        13.16  Confidentiality.                 (a)  Subject to the provisions of clause (b) of this Section 13.16, each Lender agrees  that it will not disclose without the prior consent of the Company (other than to its employees, directors,  auditors, bank examiners, advisors, agents, or counsel or to another Lender if such Lender or such  Lender’s holding or parent company in its sole discretion determines that any such party should have  access to such information, provided such Persons (other than auditors or bank examiners) shall be  subject to the provisions of this Section 13.16 to the same extent as such Lender) any non-public  information with respect to any Credit Party or any of their respective Subsidiaries which is now or in  the future furnished pursuant to this Agreement or any other Credit Document; provided, that, any  Lender may disclose any such information (i) as has become generally available to the public other than  by virtue of a breach of this Section 13.16(a) by the respective Lender, (ii) as may be required or  appropriate in any report, statement or testimony submitted to any municipal, state or Federal  regulatory body having or claiming to have jurisdiction over such Lender or to the Federal Reserve  Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United  States or elsewhere) or their successors, (iii) as may be required or appropriate in respect to any  summons or subpoena or in connection with any litigation, (iv) in order to comply with any law, order,  regulation or ruling applicable to such Lender, (v) to the Administrative Agent or the Collateral Agent,  (vi) to any direct or indirect contractual counterparty in any swap, hedge or similar agreement (or to any  such contractual counterparty’s professional advisor), so long as such contractual counterparty (or such                                            146  #93457508v14

 

 professional advisor) agrees to be bound by the provisions of this Section 13.16 and (vii) to any  prospective or actual transferee, pledgee or participant in connection with any contemplated transfer,   pledge or participation of any of the Notes or Revolving Loan Commitments or any interest therein by   such Lender; provided, that, such prospective transferee, pledgee or participant agrees to be bound by   the confidentiality provisions contained in this Section 13.16.                 (b)  Each of the Credit Parties hereby acknowledges and agrees that each Lender may   share with any of its affiliates (including its affiliates’ respective employees, directors, auditors,   advisors and counsel) and such affiliates may share with such Lender, any information related to any   Credit Party or any of their respective Subsidiaries (including any non-public customer information   regarding the creditworthiness of the Credit Parties and their respective Subsidiaries); provided, that,   (x) such Persons shall be subject to the provisions of this Section 13.16 to the same extent as such   Lender and (y) such information shall be utilized by such Lender or its affiliates solely in connection   with the matters related to the Credit Documents and the transactions contemplated thereby.         13.17 Patriot Act.  .     Each Lender subject to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Pub. L. 109-177 (signed into law March 9, 2009) (as amended from time to time, the “Patriot Act”) and of the Beneficial Ownership Regulation hereby notifies each Credit Party that, pursuant to the requirements of the Patriot Act and/or the Beneficial Ownership Regulation, it is required to obtain, verify and record information that identifies the Credit Parties and other information that will allow such Lender to identify the Credit Parties in accordance with the Patriot Act and the Beneficial Ownership Regulation, as applicable.        13.18  OTHER LIENS ON COLLATERAL; TERMS OF INTERCREDITOR AGREEMENT; ETC.                 (a)  EACH LENDER UNDERSTANDS, ACKNOWLEDGES AND AGREES  THAT LIENS HAVE BEEN CREATED ON THE COLLATERAL PURSUANT TO THE SECURED  NOTES DOCUMENTS AND MAY BE CREATED UNDER THE REFINANCING NOTES  DOCUMENTS, THE NOTES DOCUMENTS, THE REFINANCING NEW NOTES DOCUMENTS  AND THE QUALIFIED SECURED DEBT DOCUMENTS, WHICH LIENS SHALL BE SUBJECT  TO THE TERMS AND CONDITIONS OF THE INTERCREDITOR AGREEMENT.  PURSUANT  TO THE EXPRESS TERMS OF THE INTERCREDITOR AGREEMENT, IN THE EVENT OF ANY  CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND ANY OF  THE CREDIT DOCUMENTS, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT  SHALL GOVERN AND CONTROL.                 (b)  EACH LENDER AUTHORIZES AND INSTRUCTS THE ADMINISTRATIVE  AGENT AND THE COLLATERAL AGENT TO ENTER INTO THE INTERCREDITOR  AGREEMENT ON BEHALF OF THE LENDERS, AND TO TAKE ALL ACTIONS (AND  EXECUTE ALL DOCUMENTS) REQUIRED (OR DEEMED ADVISABLE) BY IT IN  ACCORDANCE WITH THE TERMS OF THE INTERCREDITOR AGREEMENT.                 (c)  THE PROVISIONS OF THIS SECTION 13.18 ARE NOT INTENDED TO  SUMMARIZE ALL RELEVANT PROVISIONS OF THE INTERCREDITOR AGREEMENT, THE  FORM OF WHICH IS ATTACHED AS AN EXHIBIT TO THIS AGREEMENT.  REFERENCE  MUST BE MADE TO THE INTERCREDITOR AGREEMENT ITSELF TO UNDERSTAND ALL  TERMS AND CONDITIONS THEREOF.  EACH LENDER IS RESPONSIBLE FOR MAKING ITS  OWN ANALYSIS AND REVIEW OF THE INTERCREDITOR AGREEMENT AND THE TERMS                                            147  #93457508v14

 

 AND PROVISIONS THEREOF, AND NEITHER THE ADMINISTRATIVE AGENT NOR ANY OF  ITS AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER AS TO THE  SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED IN THE  INTERCREDITOR AGREEMENT.        13.19  Interest Rate Limitation.. Notwithstanding anything to the contrary contained in any Credit Document, the interest paid or agreed to be paid under the Credit Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.         13.20 No Fiduciary Duty.. Each Agent, each Lender, and their respective Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”) may have economic interests that conflict with those of the Credit Parties, their stockholders and/or their respective affiliates.  Each Credit Party agrees that nothing in the Credit Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and any Credit Party, its respective stockholders or its respective affiliates, on the other.  The Credit Parties acknowledge and agree that: (a) the transactions contemplated by the Credit Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, each Credit Party, on the other, and (b) in connection therewith and with the process leading thereto, (i) no Lender has assumed an advisory or fiduciary responsibility in favor of any Credit Party, its respective stockholders or its respective affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise any Credit Party, its respective stockholders or its respective Affiliates on other matters) or any other obligation to any Credit Party except the obligations expressly set forth in the Credit Documents and (ii) each Lender is acting solely as principal and not as the agent or fiduciary of such Credit Party, its respective management, stockholders, creditors or any other Person.  Each Credit Party acknowledges and agrees that such Credit Party has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  Each Credit Party agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to such Credit Party, in connection with such transaction or the process leading thereto.         13.21 Acknowledgment and Consent to Bail-In of EEA Financial Institutions..  Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEAAffected Financial Institution arising under any Credit Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEAthe applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:                 (a)  the application of any Write-Down and Conversion Powers by an EEAthe  applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by  any party hereto that is an EEAAffected Financial Institution; and                                            148  #93457508v14

 

               (b)  the effects of any Bail-in Action on any such liability, including, if applicable:                      (i)    a reduction in full or in part or cancellation of any such liability;                      (ii)   a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEAAffected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document; or                      (iii)  the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEAthe applicable Resolution Authority.        13.22  Acknowledgment Regarding Any Supported QFCs.        To the extent that the Credit Documents provide support, through a guarantee or otherwise, for Secured Hedging Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC, a “Supported QFC”), the parties hereto 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 Credit 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 Credit 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 Credit 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 hereto 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 13.22, 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:                                             149  #93457508v14

 

                    (i)   a “covered entity” as that term is defined in, and interpreted in                     accordance with, 12 C.F.R. § 252.82(b);                      (ii)  a “covered bank” as that term is defined in, and interpreted in accordance                     with, 12 C.F.R. § 47.3(b); or                      (iii) a “covered FSI” as that term is defined in, and interpreted in accordance                     with, 12 C.F.R. § 382.2(b).                       “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).  SECTION 14. Nature of Borrower Obligations.         14.01 Nature of Borrower Obligations..  Notwithstanding anything to the contrary contained elsewhere in this Agreement, it is understood and agreed by the various parties to this Agreement that all Obligations to repay principal of, interest on, and all other amounts with respect to, all Loans, Letters of Credit and all other Obligations pursuant to this Agreement and each other Credit Document (including all fees, indemnities, taxes and other Obligations in connection therewith or in connection with the related Revolving Loan Commitments) shall constitute the joint and several obligations of each of the Borrowers.  In addition to the direct (and joint and several) obligations of the Borrowers with respect to Obligations as described above, all such Obligations shall be guaranteed pursuant to, and in accordance with the terms of, the Guaranty.         14.02 Independent Obligation..   The obligations of each Borrower with respect to the Obligations are independent of the obligations of each other Borrower or any Guarantor under the Guaranty of such Obligations, and a separate action or actions may be brought and prosecuted against each Borrower, whether or not any other Borrower or any Guarantor is joined in any such action or actions.  Each Borrower waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement thereof.  Any payment by any Borrower or other circumstance which operates to toll any statute of limitations as to any Borrower shall, to the fullest extent permitted by law, operate to toll the statute of limitations as to each Borrower.         14.03 Authorization.. Each of the Borrowers authorizes the Administrative Agent, the Issuing Lenders and the Lenders without notice or demand (except as shall be required by applicable statute and cannot be waived), and without affecting or impairing its liability hereunder, from time to time to:                 (a)  exercise or refrain from exercising any rights against any other Borrower or any  Guarantor or others or otherwise act or refrain from acting;                 (b)  release or substitute any other Borrower, endorsers, Guarantors or other obligors;                 (c)  settle or compromise any of the Obligations of any other Borrower or any other  Credit Party, any security therefor or any liability (including any of those hereunder) incurred directly  or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to  the payment of any liability (whether due or not) of any Borrower to its creditors other than the  Lenders;                                            150  #93457508v14

 

               (d)  apply any sums paid by any other Borrower or any other Person, howsoever  realized to any liability or liabilities of such other Borrower or other Person regardless of what liability  or liabilities of such other Borrower or other Person remain unpaid; and/or                 (e)  consent to or waive any breach of, or act, omission or default under, this  Agreement or any of the instruments or agreements referred to herein, or otherwise, by any other  Borrower or any other Person.        14.04  Reliance..   It is not necessary for the Administrative Agent, any Issuing Lender or any Lender to inquire into the capacity or powers of any Credit Party or any of its Subsidiaries or the officers, directors, members, partners or agents acting or purporting to act on its behalf, and any Obligations made or created in reliance upon the professed exercise of such powers shall constitute the joint and several obligations of the Borrowers hereunder.         14.05 Contribution; Subrogation.. No Borrower shall have any rights of contribution or subrogation with respect to any other Borrower as a result of payments made by it hereunder, in each case unless and until the Total Revolving Loan Commitment and all Letters of Credit have been terminated and all Obligations have been paid in full in cash (other than indemnities and expense reimbursement obligations which, in either case, are not then due and payable, and Secured Hedging Obligations and Secured Cash Management Obligations).        14.06  Waiver..     Each Borrower waives any right to require the Administrative Agent, the Collateral Agent, the Issuing Lenders or the Lenders to (a) proceed against any other Borrower, any Guarantor or any other party, (b) proceed against or exhaust any security held from any Borrower, any Guarantor or any other party or (c) pursue any other remedy in the Administrative Agent’s, the Collateral Agent’s, the Collateral Agent, any Issuing Lender’s or Lenders’ power whatsoever.  Each Borrower waives any defense based on or arising out of suretyship or any impairment of security held from any Borrower, any Guarantor or any other party or on or arising out of any defense of any other Borrower, any Guarantor or any other party other than payment in full in cash of the Obligations, including any defense based on or arising out of the disability of any other Borrower, any Guarantor or any other party, or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any other Borrower, in each case other than as a result of the payment in full in cash of the Obligations.        14.07  Discharge Upon Sale of Borrower or Designation as Unrestricted Subsidiary.  .     In case all of the Equity Interests of any Borrower (other than the Company) or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) in accordance with the terms and conditions of this Agreement or the designation of any Borrower as an Unrestricted Subsidiary, all obligations of such Borrower or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any Guaranteed Creditor or any other Person effective as of the time of such sale, or other disposition or designation, as applicable, so long as after giving effect to such Borrower no longer being a Borrower hereunder (including pursuant to thefollowing delivery of an updated Borrowing Base Certificate delivered pursuant to Section 9.01(j)(vi)) no mandatory prepayment would be required pursuant to Section 5.02(a)(i).  Upon release of any Borrower pursuant to this Section 14.07, the Company and each other Borrower shall automatically, and without further action, assume all Obligations of the released Borrower.                                             151  #93457508v14

 

SECTION 15. [RESERVED].  SECTION 16. Guaranty.         16.01 Guaranty of the Guaranteed Obligations.. The Guarantors jointly and severally hereby irrevocably and unconditionally guaranty to Administrative Agent for the ratable benefit of the Guaranteed Creditors the due and punctual payment in full of all Guaranteed Obligations when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)).         16.02 Contribution by Guarantors.. All Guarantors desire to allocate among themselves (collectively, the “Contributing Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty.  Accordingly, in the event any payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”) under this Guaranty such that its Aggregate Payments (as defined below) exceeds its Fair Share (as defined below) as of such date, such Funding Guarantor shall be entitled to a contribution from each of the other Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such date.  “Fair Share” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount (as defined below) with respect to such Contributing Guarantor to (ii) the aggregate of the Fair Share Contribution Amounts with respect to all Contributing Guarantors multiplied by (b) the aggregate amount paid or distributed on or before such date by all Funding Guarantors under this Guaranty in respect of the obligations Guaranteed.  “Fair Share Contribution Amount” means, with respect to a Contributing Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such Contributing Guarantor under this Guaranty that would not render its obligations hereunder or thereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code or any comparable applicable provisions of state law; provided, solely for purposes of calculating the “Fair Share Contribution Amount” with respect to any Contributing Guarantor for purposes of this Section 16.02, any assets or liabilities of such Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement or indemnification or any rights to or obligations of contribution hereunder shall not be considered as assets or liabilities of such Contributing Guarantor.  “Aggregate Payments” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate amount of all payments and distributions made on or before such date by such Contributing Guarantor in respect of this Guaranty (including in respect of this Section 16.02), minus (2) the aggregate amount of all payments received on or before such date by such Contributing Guarantor from the other Contributing Guarantors as contributions under this Section 16.02.  The amounts payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is made by the applicable Funding Guarantor.  The allocation among Contributing Guarantors of their obligations as set forth in this Section 16.02 shall not be construed in any way to limit the liability of any Contributing Guarantor hereunder. Each Guarantor is a third party beneficiary to the contribution agreement set forth in this Section 16.02.         16.03 Payment by Guarantors..    The Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right which any Guaranteed Creditor may have at law or in equity against any Guarantor by virtue hereof, that upon the failure of any Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), the Guarantors will upon demand pay, or cause to be paid, in cash, to the Administrative Agent for the ratable benefit of Guaranteed Creditors, an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed                                           152  #93457508v14

 

Obligations (including interest which, but for such Borrower’s becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against such Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to Guaranteed Creditors as aforesaid.         16.04 Liability of Guarantors Absolute.. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations.  In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:                 (a)  this Guaranty is a guaranty of payment when due and not of collectability.  This  Guaranty is a primary obligation of each Guarantor and not merely a contract of surety;                 (b)  the Administrative Agent may enforce this Guaranty upon the occurrence of an  Event of Default notwithstanding the existence of any dispute between any Credit Party or any of  its  Subsidiaries and any Guaranteed Creditor with respect to the existence of such Event of Default;                 (c)  the obligations of each Guarantor hereunder are independent of the obligations of  each Borrower and the obligations of any other guarantor (including any other Guarantor) of the  obligations of any Borrower, and a separate action or actions may be brought and prosecuted against  such Guarantor whether or not any action is brought against any Borrower or any of such other  guarantors (including any other Guarantor) and whether or not any Borrower or other guarantor is  joined in any such action or actions;                 (d)  payment by any Guarantor of a portion, but not all, of the Guaranteed  Obligations shall in no way limit, affect, modify or abridge any Guarantor’s liability for any portion of  the Guaranteed Obligations which has not been paid.  Without limiting the generality of the foregoing,  if the Administrative Agent is awarded a judgment in any suit brought to enforce any Guarantor’s  covenant to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release  such Guarantor from its covenant to pay the portion of the Guaranteed Obligations that is not the  subject of such suit, and such judgment shall not, except to the extent satisfied by such Guarantor, limit,  affect, modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed  Obligations;                 (e)  any Guaranteed Creditor, upon such terms as it deems appropriate, without notice  or demand and without affecting the validity or enforceability hereof or giving rise to any reduction,  limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time to  time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time,  place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise, release or  discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the  Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same  to the payment of any other obligations; (iii) request and accept other guaranties of the Guaranteed  Obligations and take and hold security for the payment hereof or the Guaranteed Obligations; (iv)  release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or  modify, with or without consideration, any security for payment of the Guaranteed Obligations, any  other guaranties of the Guaranteed Obligations, or any other obligation of any Person (including any  other Guarantor) with respect to the Guaranteed Obligations; (v) enforce and apply any security now or  hereafter held by or for the benefit of such Guaranteed Creditor in respect hereof or the Guaranteed  Obligations and direct the order or manner of sale thereof, or exercise any other right or remedy that  such Guaranteed Creditor may have against any such security, in each case as such Guaranteed Creditor                                            153  #93457508v14

 

 in its discretion may determine consistent herewith or the applicable Secured Hedging Agreement or  Secured Cash Management Agreement and any applicable security agreement, including foreclosure on  any such security pursuant to one or more judicial or nonjudicial sales, whether or not every aspect of  any such sale is commercially reasonable, and even though such action operates to impair or extinguish   any right of reimbursement or subrogation or other right or remedy of any Guarantor against any   Borrower or any security for the Guaranteed Obligations; and (vi) exercise any other rights available to   it under the Credit Documents, Secured Hedging Agreements or Secured Cash Management   Agreements; and                 (f)  this Guaranty and the obligations of the Guarantors hereunder shall be valid and  enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination  for any reason (other than payment in full in cash of the Guaranteed Obligations in accordance with its  terms), including the occurrence of any of the following, whether or not any Guarantor shall have had  notice or knowledge of any of them:  (i) any failure or omission to assert or enforce or agreement or  election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or   otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy   (whether arising under the Credit Documents, Secured Hedging Agreements or Secured Cash   Management Agreements, at law, in equity or otherwise) with respect to the Guaranteed Obligations or   any agreement relating thereto, or with respect to any other guaranty of or security for the payment of   the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent   to departure from, any of the terms or provisions (including provisions relating to events of default)   hereof, any of the other Credit Documents, any of the Secured Hedging Agreements or any of the   Secured Cash Management Agreements or any agreement or instrument executed pursuant thereto, or   of any other guaranty or security for the Guaranteed Obligations, in each case whether or not in   accordance with the terms hereof or such Credit Document, such Secured Hedging Agreement or such   Secured Cash Management Agreement or any agreement relating to such other guaranty or security;   (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be   illegal, invalid or unenforceable in any respect; (iv) the application of payments received from any   source (other than payments received pursuant to the other Credit Documents or any of the Commodity   Agreements or from the proceeds of any security for the Guaranteed Obligations, except to the extent   such security also serves as collateral for indebtedness other than the Guaranteed Obligations) to the   payment of indebtedness other than the Guaranteed Obligations, even though any Guaranteed Creditor   might have elected to apply such payment to any part or all of the Guaranteed Obligations; any   Guaranteed Creditor’s consent to the change, reorganization or termination of the corporate structure or   existence of any Credit Party or any of their respective Subsidiaries and to any corresponding   restructuring of the Guaranteed Obligations; (v) any failure to perfect or continue perfection of a   security interest in any collateral which secures any of the Guaranteed Obligations; (vi) any defenses,   set offs or counterclaims which Company may allege or assert against any Guaranteed Creditor in   respect of the Guaranteed Obligations, including failure of consideration, breach of warranty, payment,   statute of frauds, statute of limitations, accord and satisfaction and usury; (vii) any other act or thing or   omission, or delay to do any other act or thing, which may or might in any manner or to any extent vary   the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations; and (viii) any law,   regulation, decree or order of any jurisdiction adversely affecting the Guaranteed Obligations.         16.05 Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Guaranteed Creditors:  (a) any right to require any Guaranteed Creditor, as a condition of payment or performance by such Guarantor, to (i) proceed against any Borrower, any other guarantor (including any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against or exhaust any security held from any Borrower, any such other guarantor (including any other Guarantor) or any other Person, (iii) proceed against or have resort to any balance of any deposit account or credit on the books of any Guaranteed Creditor in favor of any Borrower or any other Person, or (iv) pursue any other remedy in the power of                                            154  #93457508v14

 

any Guaranteed Creditor whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of any Borrower or any Guarantor including any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of any Borrower or any Guarantor from any cause other than payment in full in cash of the Guaranteed Obligations in accordance with their terms; (c) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based upon any Guaranteed Creditor’s errors or omissions in the administration of the Guaranteed Obligations; (e) (i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set offs, recoupments and counterclaims, and (iv) promptness, diligence and any requirement that any Guaranteed Creditor protect, secure, perfect or insure any security interest or lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance hereof, notices of default hereunder, the Secured Hedging Agreements, the Secured Cash Management Agreements or any agreement or instrument related thereto, notices of any renewal, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to any Borrower and notices of any of the matters referred to in Section 14.04 and any right to consent to any thereof; and (g) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.        16.06  Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations (other than indemnities and expense reimbursement obligations which, in either case, are not then due and payable, and Secured Hedging Obligations and Secured Cash Management Obligations) shall have been paid in full in cash in accordance with their terms and the Total Revolving Loan Commitments shall have terminated and all Letters of Credit shall have expired or been cancelled, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against any Borrower or any other Guarantor or any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against any Borrower with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that any Guaranteed Creditor now has or may hereafter have against any Borrower, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by any Guaranteed Creditor.  In addition, until the Guaranteed Obligations (other than indemnities and expense reimbursement obligations which, in either case, are not then due and payable, and Secured Hedging Obligations and Secured Cash Management Obligations) shall have been paid in full in cash in accordance with their terms and the Total Revolving Loan Commitments shall have terminated and all Letters of Credit shall have expired or been cancelled, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations, including any such right of contribution as contemplated by Section 16.02.  Each Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against any Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor (including any other Guarantor), shall be junior and subordinate to any rights any Guaranteed Creditor may have against any Borrower, to all right, title and interest any Guaranteed Creditor may have in any such collateral or security, and to any right any                                            155  #93457508v14

 

Guaranteed Creditor may have against such other guarantor (including any other Guarantor).  If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been indefeasibly paid in full in cash in accordance with their terms, such amount shall be held in trust for the Administrative Agent on behalf of Guaranteed Creditors and shall forthwith be paid over to the Administrative Agent for the benefit of Guaranteed Creditors to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof.        16.07  Subordination of Other Guaranteed Obligations..Any Indebtedness of any Borrower or any Guarantor now or hereafter held by any Guarantor (the “Obligee Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Administrative Agent on behalf of Guaranteed Creditors and shall forthwith be paid over to the Administrative Agent for the benefit of Guaranteed Creditors to be credited and applied against the Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.         16.08 Continuing Guaranty.. This Guaranty is a continuing guaranty and shall remain in effect until all of the Guaranteed Obligations shall have been paid in full and the Total Revolving Loan Commitments shall have terminated and all Letters of Credit shall have expired or been cancelled.  Each Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations.         16.09 Authority of Guarantors or the Borrowers.. It is not necessary for any Guaranteed Creditor to inquire into the capacity or powers of any Guarantor or any Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.  The Guarantors hereby authorize the Borrowers to enter into the Intercreditor Agreement and agree to be bounds by the provisions thereof to the same extent as the Borrowers.         16.10 Financial Condition of Company..  Any Credit Event may be made to, or for the benefit of, any Borrower or continued from time to time, and any Secured Hedging Agreements or any Secured Cash Management Agreements may be entered into from time to time, in each case without notice to or authorization from any Guarantor regardless of the financial or other condition of such Borrower at the time of any such grant or continuation or at the time such Secured Hedging Agreement or Secured Cash Management Agreement is entered into, as the case may be.  No Guaranteed Creditor shall have any obligation to disclose to or discuss with any Guarantor its assessment, or any Guarantor’s assessment, of the financial condition of any Borrower.  Each Guarantor has adequate means to obtain information from the Borrowers on a continuing basis concerning the financial condition of the Borrowers and their ability to perform its obligations under the Credit Documents, the Secured Hedging Agreements and Secured Cash Management Agreements, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrowers and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.  Each Guarantor hereby waives and relinquishes any duty on the part of any Guaranteed Creditor to disclose any matter, fact or thing relating to the business, operations or conditions of the Borrowers now known or hereafter known by any Guaranteed Creditor.         16.11 Bankruptcy, etc.                 (a)  Without limiting any Guarantor’s ability to file a voluntary bankruptcy petition  in respect of itself, so long as any Guaranteed Obligations remain outstanding, no Guarantor shall,  without the prior written consent of the Administrative Agent acting pursuant to the instructions of                                            156  #93457508v14

 

 Required Lenders, commence or join with any other Person in commencing any bankruptcy,  reorganization or insolvency case or proceeding of or against any Borrower or any other Guarantor.  The obligations of the Guarantors hereunder shall not be reduced, limited, impaired, discharged,   deferred, suspended or terminated by any case or proceeding, voluntary or involuntary, involving the  bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of any Borrower or  any Guarantor or by any defense which any Borrower or any Guarantor may have by reason of the  order, decree or decision of any court or administrative body resulting from any such proceeding.                 (b)  Each Guarantor acknowledges and agrees that any interest on any portion of the  Guaranteed Obligations which accrues after the commencement of any case or proceeding referred to in  clause (a) above (or, if interest on any portion of the Guaranteed Obligations ceases to accrue by  operation of law by reason of the commencement of such case or proceeding, such interest as would  have accrued on such portion of the Guaranteed Obligations if such case or proceeding had not been  commenced) shall be included in the Guaranteed Obligations because it is the intention of the  Guarantors and the Guaranteed Creditors that the Guaranteed Obligations which are guaranteed by the   Guarantors pursuant hereto should be determined without regard to any rule of law or order which may   relieve any Borrower of any portion of such Guaranteed Obligations.  The Guarantors will permit any   trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar   person to pay the Administrative Agent, or allow the claim of Administrative Agent in respect of, any   such interest accruing after the date on which such case or proceeding is commenced.                 (c)  In the event that all or any portion of the Guaranteed Obligations are paid by any   Borrower, the obligations of the Guarantors hereunder shall continue and remain in full force and effect   or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or   recovered directly or indirectly from any Guaranteed Creditor as a preference, fraudulent transfer or   otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed   Obligations for all purposes hereunder.         16.12 Discharge of Guaranty Upon Sale of Guarantor.. In case (a) all of the Equity Interests of any Guarantor or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) in accordance with the terms and conditions of this Agreement or (b) any Guarantor is designated or otherwise becomes an Unrestricted Subsidiary in accordance with the terms and conditions of this Agreement, the Guaranty of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any Guaranteed Creditor or any other Person effective as of the time of such sale, other disposition or designation as Unrestricted Subsidiary, as applicable.        16.13  Additional Guarantors.. It is understood and agreed that any Subsidiary of any Credit Party that is required (or desires) to become a Guarantor hereunder shall do so by (i) executing a Joinder Agreement substantially in the form of Exhibit L and delivering same to the Administrative Agent, and (ii) taking all actions as specified in this Agreement as would have been taken by such Guarantor had it been an original party to this Agreement, in each case with all documents and actions required to be taken above to be taken to the reasonable satisfaction of the Administrative Agent. Notwithstanding the foregoing, in no event shall a Subsidiary of any Credit Party that is (i) a CFC, (ii) a FSHCO, or (iii) a Subsidiary of a CFC be a Guarantor hereunder.                              [SIGNATURE PAGES FOLLOW]                                             157  #93457508v14

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