Document:

Exhibit 10.4

 

EXECUTION

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of November 14, 2018 by and among GFL ENVIRONMENTAL INC., a corporation existing under the laws of Ontario, Canada (the “Borrower”), GFL ENVIRONMENTAL HOLDINGS (US), INC., a corporation organized under the laws of Delaware (“GFL USA”), BETTY MERGER SUB INC., a corporation organized under the laws of Delaware (“Buyer”) the Subsidiary Guarantors party hereto, BARCLAYS BANK PLC, as Successor Administrative Agent (as defined below), CITIBANK, N.A., as administrative agent (in such capacity, the “Existing Administrative Agent”) and collateral agent for the Lenders under the Existing Credit Agreement (as defined below), each Lender party hereto providing the Additional 2018 Incremental Term Loans (as defined below) (in such capacity, each an “Additional 2018 Incremental Term Lender” and collectively, the “Additional 2018 Incremental Term Lenders”) and each other Lender party hereto.

 

RECITALS:

 

1.                                      The Borrower, Citibank, N.A., as administrative agent and collateral agent, and each lender from time to time party thereto are parties to that certain Term Loan Credit Agreement, dated as of September 30, 2016 (as amended by First Amendment to Credit Agreement, dated as of May 31, 2018, by and among the Borrower, the subsidiary guarantors party thereto, the Existing Administrative Agent, the Successor Administrative Agent and the lenders party thereto and as otherwise amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”).

 

2.                                      The Borrower intends to acquire (the “Acquisition”), indirectly through Buyer, a newly-formed Delaware corporation and an indirect, wholly-owned subsidiary of the Borrower, Wrangler Super Holdco Corp., a corporation organized under the laws of Delaware (the “Target”), from the equity holders thereof pursuant to the Agreement and Plan of Merger, dated as of October 9, 2018 (together with all exhibits, schedules and other disclosure letters thereto, collectively, and as amended prior to the date hereof, the “Merger Agreement”) by and among the Buyer, GFL Environmental Holdings (US), Inc., a Delaware corporation and the indirect subsidiary of the Borrower, the Target, solely for purposes of Article X thereof, the Borrower and the securityholder representative identified therein pursuant to which Buyer will merge with and into the Target, with the Target remaining as the surviving corporation of the merger and becoming a wholly-owned, indirect subsidiary of the Borrower.

 

3.                                      In connection with the foregoing and pursuant to Section 2.14 of the Amended Credit Agreement (as defined below), the Borrower has requested the Additional 2018 Incremental Term Lenders to provide, and the Additional 2018 Incremental Term Lenders are willing to provide, on the terms and subject to the conditions set forth herein, an incremental term loan facility (the “Additional 2018 Incremental Term Facility”) to the Borrower in an aggregate principal amount not exceeding $1,710,000,000 (the “Additional 2018 Incremental Term Loans”), which will be used on the Second Amendment Effective Date to finance a portion of the Acquisition (including the Second Amendment Refinancing (as defined below)) and to pay the fees and expenses incurred in connection with the Acquisition and the other transactions contemplated herein and in the Merger Agreement (including fees and expenses incurred in connection with this Amendment) (collectively, the “Second Amendment Transaction Expenses”).  In accordance with Section 2.14 of the Amended Credit Agreement, the Additional 2018 Incremental Term Loans shall constitute additional “2018 Incremental Term Loans” and shall, as of the Second Amendment Effective Date, have the terms and conditions set forth herein and in the Amended Credit Agreement (as defined below) applicable to the 2018 Incremental Term Loans immediately prior to the Second Amendment Effective Date.

 

 

4.                                      The Existing Administrative Agent has agreed to resign as “administrative agent” under the Existing Credit Agreement (but not, for the avoidance of doubt, as “collateral agent” thereunder) and Barclays Bank, PLC has agreed to be appointed as “administrative agent” under the Amended Credit Agreement (in such capacity, the “Successor Administrative Agent”), in each case, on and from the Second Amendment Effective Date.

 

5.                                      The Existing Administrative Agent, the Successor Administrative Agent and each of the Lenders (which collectively constitute the Required Lenders) party hereto have agreed, subject to the terms and conditions hereinafter set forth, to (a) amend the Existing Credit Agreement to provide for the Additional 2018 Incremental Term Loans extended by the Additional 2018 Incremental Term Lenders and (b) make certain other amendments to the Existing Credit Agreement, in each case, as further set forth below.

 

In consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.                         Defined Terms.  Capitalized terms used and not otherwise defined herein have the meanings assigned to them in the Existing Credit Agreement as amended hereby (the “Amended Credit Agreement”).

 

SECTION 2.                         Additional 2018 Incremental Term Loans.

 

(a)                                 Subject to the terms and conditions set forth herein, each Additional 2018 Incremental Term Lender severally agrees to make Additional 2018 Incremental Term Loans to the Borrower on the Second Amendment Effective Date in a principal amount not to exceed such Additional 2018 Incremental Term Lender’s Additional 2018 Incremental Term Commitment (as defined below). The amount of each Additional 2018 Incremental Term Lender’s Additional 2018 Incremental Term Commitment is set forth on Schedule 1 hereto.

 

As used in this Amendment:

 

“Additional 2018 Incremental Term Commitments” means, with respect to each Additional 2018 Incremental Term Lender, its commitment to make Additional 2018 Incremental Term Loans to the Borrower, as the same may be (i) reduced from time to time pursuant to Section 2.06 of the Amended Credit Agreement and (ii) reduced or increased from time to time pursuant to (A) assignments by or to such Additional 2018 Incremental Term Lender pursuant to an Assignment and Assumption in accordance with the terms of the Amended Credit Agreement, (B) an Incremental Amendment, (C) a Refinancing Amendment, (D) an Extension Amendment or (E) an amendment to the Amended Credit Agreement in respect of Replacement Term Loans. The aggregate amount of Additional 2018 Incremental Term Commitments on the Second Amendment Effective Date is $1,710,000,000.  The Additional 2018 Incremental Term Commitments shall automatically terminate on the Second Amendment Effective Date upon the funding of the Additional 2018 Incremental Term Loans.

 

“Loan Parties” means the Borrower, GFL USA, Buyer and the Subsidiary Guarantors party hereto.

 

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“Specified Merger Agreement Representations” means the representations made by, or with respect to, the Target and its Subsidiaries in the Merger Agreement as are material to the interests of the Additional 2018 Incremental Term Lender, but only to the extent that the Borrower (or its Affiliate) has the right (taking into account any applicable cure provisions) to terminate the Borrower’s (or its Affiliate’s) obligations under the Merger Agreement or decline to consummate the Acquisition (in each case, in accordance with the terms thereof) as a result of a breach of such representations in the Merger Agreement.

 

“Specified Representations” means those representations and warranties made by the Loan Parties in Section 5.01(a) (with respect to organizational existence of the Loan Parties only), Section 5.01(b)(ii), Section 5.02(a), Section 5.02(b)(A), Section 5.04, Section 5.13, Section 5.16(c), Section 5.18(a) (solely with respect to the use of proceeds of the Additional 2018 Incremental Term Loans being in compliance with the PATRIOT Act), Section 5.18(b) (solely with respect to the use of proceeds of the Additional 2018 Incremental Term Loans), Section 5.18(c) (solely with respect to the use of proceeds of the Additional 2018 Incremental Term Loans) and Section 5.19.

 

(b)                                 The Additional 2018 Incremental Term Loans shall be made available in U.S. Dollars in immediately available funds in accordance with the Amended Credit Agreement.  On the Second Amendment Effective Date, the proceeds of the Additional 2018 Incremental Term Loans will be used to finance a portion of the Acquisition and to pay the Second Amendment Transaction Expenses.

 

(c)                                  The obligation of each Additional 2018 Incremental Term Lender to make Additional 2018 Incremental Term Loans on the Second Amendment Effective Date is subject to the satisfaction (or waiver by the Additional 2018 Incremental Term Lenders and the Successor Administrative Agent) of the conditions set forth in Section 5 of this Amendment.

 

(d)                                 The Additional 2018 Incremental Term Lenders, the Borrower and the Existing Administrative Agent acknowledge and agree that the Additional 2018 Incremental Term Loans shall constitute an increase of and comprise a single Class with the 2018 Incremental Term Loans outstanding under the Existing Credit Agreement, and, accordingly, shall have identical terms as the 2018 Incremental Term Loans outstanding under the Existing Credit Agreement immediately prior to the Second Amendment Effective Date (including, without limitation, with respect to the Applicable Rate, Maturity Date, prepayment premiums and other terms of repayment and prepayment).

 

(e)                                  Except as set forth herein, each Additional 2018 Incremental Term Loan made pursuant to the Additional 2018 Incremental Term Commitments provided hereunder shall be subject to all of the terms and provisions of the Amended Credit Agreement and the other Loan Documents (each as modified by this Amendment) pertaining thereto.

 

(f)                                   Each Additional 2018 Incremental Term Lender and each Lender party hereto irrevocably consents to this Amendment and all modifications to the Existing Credit Agreement contemplated hereby.

 

SECTION 3.                         Amendments to the Existing Credit Agreement.  In accordance with Sections 2.14 and 10.01 of the Existing Credit Agreement and effective as of the Second Amendment Effective Date, the parties hereto agree that the Existing Credit Agreement, including schedules and exhibits thereto, is hereby amended to (i) delete the stricken text (indicated textually in the same manner as the 

 

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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 (ii) add as Exhibit R to the Credit Agreement the pages attached as Exhibit B hereto.  The amendments to the Existing Credit Agreement effected pursuant to this Section 3 shall occur immediately following the incurrence of the Additional 2018 Incremental Term Loans.

 

SECTION 4.                         Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, each Loan Party represents and warrants to the other parties hereto on the Second Amendment Effective Date as follows:

 

(a)                                 The execution, delivery and performance by each Loan Party of this Amendment has been duly authorized by all necessary corporate or other organizational action. This Amendment and the Amended Credit Agreement constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws or other Laws affecting creditors’ rights generally and by general principles of equity and principles of good faith and fair dealing.

 

(b)                                 The Specified Representations are true and correct in all material respects on and as of the Second Amendment Effective Date (immediately after giving effect to this Amendment), except for representations and warranties that are already qualified by materiality, which representations and warranties are true and correct after giving effect to such materiality qualifier.

 

SECTION 5.                         Second Amendment Effective Date. This Amendment shall become effective as of the first date (the “Second Amendment Effective Date”) on which each of the following conditions shall have been satisfied (or waived by the Additional 2018 Incremental Term Lenders and the Successor Administrative Agent):

 

(a)                                 The Successor Administrative Agent shall have received a counterpart signature page of this Amendment duly executed by each Loan Party, the Existing Administrative Agent, the Successor Administrative Agent, each Additional 2018 Incremental Term Lender and the Lenders constituting the Required Lenders.

 

(b)                                 The Successor Administrative Agent shall have received a certificate signed by a Responsible Officer of each Loan Party (i) attaching the articles of formation or other or formation documents of such Loan Party and the bylaws, operating agreement or comparable governing document of such Loan Party, in each case, certified by an appropriate Governmental Authority, to the extent applicable, (ii) certifying that attached thereto are the resolutions of the Board of Directors (or other governing body) of such Loan Party approving and authorizing the execution, delivery and performance of this Amendment and the other Loan Documents, as applicable, as being in full force and effect without modification or amendment as of the Second Amendment Effective Date, (iii) attaching signature and incumbency certificates of the Responsible Officers of such Loan Party executing Loan Documents to which it is a party and (iv) attaching the good standing certificates described in clause (c) below.

 

(c)                                  The Successor Administrative Agent shall have received a certificate of good standing, existence or its equivalent with respect to each Loan Party certified as of a recent date 

 

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by the appropriate Governmental Authority of the state of incorporation or formation, as the case may be and to the extent such concept exists.

 

(d)                                 (i) At least three (3) Business Days prior to the Second Amendment Effective Date, the Successor Administrative Agent and the Lenders shall have received all documentation and other information about the Loan Parties that shall have been reasonably requested in writing at least ten (10) Business Days (with respect to the Borrower) and at least six (6) Business Days (with respect to GFL USA and Buyer) prior to the Second Amendment Effective Date and that the Successor Administrative Agent and the Lenders reasonably determine is required by United States regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act and (ii) if the Borrower, GFL USA or Buyer qualifies as a “legal entity” customer under 31 C.F.R. § 1010.230 and the Successor Administrative Agent has provided the Borrower, GFL USA or Buyer the name of each requesting Lender and its electronic delivery requirements at least ten (10) Business Days (with respect to the Borrower) and at least six (6) Business Days (with respect to GFL USA and Buyer) prior to the Second Amendment Effective Date, the Successor Administrative Agent and each such Lender requesting a beneficial ownership certification, which certification shall be substantially similar to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association (a “Beneficial Ownership Certification”) (which request is made through the Successor Administrative Agent) will have received, at least three (3) Business Days prior to the Second Amendment Effective Date, the Beneficial Ownership Certification in relation to the Borrower, GFL USA or Buyer.

 

(e)                                  The Successor Administrative Agent shall have received a written legal opinion reasonably satisfactory to it (addressed to it, the Existing Administrative Agent and each Additional 2018 Incremental Term Lender party hereto and dated the Second Amendment Effective Date) of:

 

(i)                                     Simpson Thacher & Bartlett LLP, New York counsel to the Loan Parties;

 

(ii)                                  Stikeman Elliot LLP, Alberta, British Columbia, Ontario and Quebec counsel to the Loan Parties;

 

(iii)                               McInnes Cooper, New Brunswick, Nova Scotia and Newfoundland and Labrador counsel to the Loan Parties;

 

(iv)                              D’Arcy & Deacon LLP, Manitoba counsel to the Loan Parties; and

 

(v)                                 Miller Thomson LLP, Saskatchewan counsel to the Loan Parties.

 

(f)                                   All fees required to be paid on the Second Amendment Effective Date pursuant to that certain Amended and Restated Commitment Letter, dated as of October 17, 2018 (the “Commitment Letter”), among the Borrower, Barclays Bank PLC, Bank of Montreal and Royal Bank of Canada, each other Commitment Party (as defined therein) party thereto and each other financial institution which signs or has signed a joinder thereto or pursuant to the Fee Letter (as defined in the Commitment Letter) and the reasonable out-of-pocket expenses required to be paid on the Second Amendment Effective Date pursuant to the Commitment Letter, to the extent invoiced at least three (3) Business Days prior to the Second Amendment Effective Date (except 

 

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as otherwise reasonably agreed by the Borrower), shall, upon the borrowing of the Additional 2018 Incremental Term Loans, have been, or will be substantially simultaneously, paid (which amounts may be offset against the proceeds of the Additional 2018 Incremental Term Loans).

 

(g)                                  The Acquisition shall have been consummated, or substantially simultaneously with the borrowing under the Additional 2018 Incremental Term Facility, shall be consummated, in all material respects in accordance with the terms of the Merger Agreement, after giving effect to any modifications, amendments, consents or waivers thereto by the Borrower (or its Affiliates), other than those modifications, amendments, consents or waivers that are materially adverse to the interests of the Additional 2018 Incremental Term Lenders or the Commitment Parties (as defined in the Commitment Letter) in their capacities as such, unless consented to in writing by the Lead Arrangers (as defined in the Commitment Letter) (such consent not to be unreasonably withheld, delayed or conditioned).

 

(h)                                 Since December 31, 2017, there shall not have been a Material Adverse Effect (as such term is defined in the Merger Agreement as in effect on October 9, 2018).

 

(i)                                     The Equity Contribution (as defined in the Commitment Letter) shall have been made, or substantially simultaneously with the borrowing under the Additional 2018 Incremental Term Facility, shall be made, in at least the amount set forth in Exhibit A to the Commitment Letter.

 

(j)                                    The Collateral and Guarantee Requirement shall have been satisfied with respect to the Loan Parties (it being understood that the Collateral and Guarantee Requirement with respect to the Target and its Subsidiaries (other than any such Subsidiary which constitutes an Excluded Subsidiary) shall be satisfied subject to and in accordance with the terms and conditions of Section 6.12 of the Amended Credit Agreement); provided that to the extent received by the Buyer pursuant to the Merger Agreement, the Borrower shall deliver (or shall cause to be delivered) to the Administrative Agent (as sub-agent for the Collateral Agent) the certificated equity securities of the Target1.

 

(k)                                 The Refinancing (as defined in the Commitment Letter) shall be consummated (the “Second Amendment Refinancing”) substantially simultaneously with the borrowing of the Additional 2018 Incremental Term Loans and the consummation of the Acquisition.

 

(l)                                     The Successor Administrative Agent shall have received a Loan Notice in respect of the Additional 2018 Incremental Term Loans to be made on the Second Amendment Effective Date.

 

(m)                             The Successor Administrative Agent shall have received a solvency certificate, dated the Second Amendment Effective Date, and after giving effect to the Acquisition, substantially in the form of Annex I to Exhibit C of the Commitment Letter (adjusted to reference the solvency of the Borrower and its Subsidiaries) of the Borrower’s chief financial officer.

 

(n)                                 On and as of the Second Amendment Effective Date (i) the Specified Representations shall be true and correct in all material respects (except for representations and warranties that are already qualified by materiality, which representations and warranties shall be true and correct after giving effect to such materiality qualifier) and (ii) the Specified Merger Agreement Representations shall be true and correct in all material respects (except for 

 

1  NTD:  The Target and its Subsidiaries (other than Excluded Subsidiaries) will be required to sign guarantees and collateral documents no later than 60 days post-closing in accordance with Section 6.12 of the Amended Credit Agreement.

 

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representations and warranties that are already qualified by materiality, which representations and warranties shall be true and correct in all respects after giving effect to such materiality qualifier).

 

(o)                                 This Amendment shall comply with Section 2.14(c) of the Existing Credit Agreement.

 

SECTION 6.                         Appointment of Successor Administrative Agent.

 

(a)                                 Pursuant to Section 9.09 of the Existing Credit Agreement, effective as of the Second Amendment Effective Date, the Existing Administrative Agent resigns as the “administrative agent” under the Amended Credit Agreement and the other Loan Documents.  On and as of the Second Amendment Effective Date, the Existing Administrative Agent’s rights, powers and duties (other than such rights expressly provided herein) as “administrative agent” thereunder shall be terminated, without any further act or deed on the part of the Existing Administrative Agent or any of the parties to the Amended Credit Agreement or the other Loan Documents.

 

(b)                                 On and as of the Second Amendment Effective Date, (i) the Lenders party hereto (constituting the Required Lenders) hereby appoint, with the consent of the Borrower, in accordance with Section 9.09 of the Amended Credit Agreement, the Successor Administrative Agent as the “Administrative Agent” under the Amended Credit Agreement, (ii) the Successor Administrative Agent hereby accepts its appointment as the “Administrative Agent” under the Credit Agreement and any other Loan Documents and (iii) the Successor Administrative Agent, as the Administrative Agent, shall succeed to, and be vested with, all of the rights, powers and duties of the Administrative Agent under the Amended Credit Agreement and any other Loan Documents; provided, that the Existing Administrative Agent shall remain the Collateral Agent under the Amended Credit Agreement as provided for therein.

 

(c)                                  For the purposes of Section 5.14 of the First Lien Intercreditor Agreement and notwithstanding anything in the First Lien Intercreditor Agreement as of the Second Amendment Effective Date to the contrary, on and from the Second Amendment Effective Date, Barclays Bank PLC will act in the capacity of First Lien Term Loan Administrative Agent (as defined in the First Lien Intercreditor Agreement) and Citibank, N.A. will act in the capacity of First Lien Term Loan Collateral Agent (as defined in the First Lien Intercreditor Agreement) (acting at the instruction of the First Lien Term Loan Administrative Agent, the Applicable Authorized Representative and/or the Required First Lien Term Loan Lenders, in each case, as provided for in the First Lien Intercreditor Agreement) solely for the First Lien Term Loan Secured Parties, in each case, for all purposes thereunder.

 

(d)                                 The parties hereto agree that neither Citibank, N.A., in its individual capacity and in its capacity as the Existing Administrative Agent, nor any of its Affiliates, shall bear any responsibility or liability for any actions taken or omitted to be taken by the Successor Administrative Agent or otherwise under this Amendment or, on and after the Second Amendment Effective Date, the Amended Credit Agreement or the other Loan Documents.  The parties hereto agree that Barclays Bank PLC, in its individual capacity and in its capacity as the Successor Administrative Agent, shall bear no responsibility or liability for any actions taken or omitted to be taken by Citibank, N.A. in its capacity as the Existing Administrative Agent under the Existing Credit Agreement or the other Loan Documents prior to the Second Amendment Effective Date or otherwise under this Amendment.

 

(e)                                  The Lenders party hereto (constituting the Required Lenders) and each other party hereto agree to, and approve, on a date after the Second Amendment Effective Date, the resignation of Citibank, N.A. as the “collateral agent” (the “Resigning Collateral Agent”) under the Amended Credit 

 

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Agreement and the other Loan Documents and the appointment of Barclays Bank PLC as successor “collateral agent” (the “Successor Collateral Agent”) under the Amended Credit Agreement and the other Loan Documents.  The Lenders party hereto (constituting the Required Lenders) and each other party hereto approve and authorize all documentation entered into by the Resigning Collateral Agent and the Successor Collateral Agent to effect such resignation and appointment and to assign to the Successor Collateral Agent for its benefit and for the benefit of the Secured Parties each of the Liens and security interests granted to the Resigning Collateral Agent in its capacity as “collateral agent” under the Loan Documents, and no further action by the Lenders shall be required to effect such documentation and assignment of collateral.  The Borrower, the Resigning Collateral Agent and the Successor Collateral Agent agree to use commercially reasonable efforts to effect such resignation and appointment within 15 calendar days of the Second Amendment Effective Date.

 

(f)                                   On and after the Second Amendment Effective Date, each party hereto agrees that (a) as set forth in Section 9.09 of the Amended Credit Agreement, the provisions of Article IX and Sections 10.04 and 10.05 of the Amended Credit Agreement shall inure to the benefit of the Existing Administrative Agent (and, as and to the extent provided therein, its officers, directors, employees, affiliates, agents, sub-agents, advisors and controlling persons (collectively, the “Related Parties”)) as to any actions taken or omitted to be taken while it was “Administrative Agent” under the Existing Credit Agreement and the other Loan Documents and (b) the Successor Administrative Agent shall receive all of the benefits, indemnifications and exculpations provided for in the Amended Credit Agreement (including without limitation under the provisions of Article IX and Sections 10.04 and 10.05 therein) that are stated therein to apply to the “Administrative Agent” from and after the Second Amendment Effective Date. The Existing Administrative Agent shall retain all claims and rights to indemnification under the Amended Credit Agreement and the other Loan Documents for acts, omissions, events or circumstances occurring or existing on or prior to the Second Amendment Effective Date in its capacity as “Administrative Agent” under the Existing Credit Agreement and the other Loan Documents. The Borrower shall promptly reimburse the Existing Administrative Agent following written demand for all out-of-pocket costs and expenses incurred by the Existing Administrative Agent in connection with any actions taken pursuant to this Amendment.

 

SECTION 7.                         Effect of Amendment.

 

(a)                                 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 Agents under the Amended Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other provision of the Amended Credit Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle the Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other Loan Document in similar or different circumstances.

 

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(b)                                 From and after the Second Amendment Effective Date, (i) each reference in the Existing Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the “Credit Agreement” in any other Loan Document shall be deemed a reference to the Amended Credit Agreement and (ii) each reference in any Loan Document to the “Term Lender”, “Term  Loans”, “Lender” or “Loan” shall be deemed a reference to the Additional 2018 Incremental Term Lenders or Additional 2018 Incremental Term Loans, as applicable.  This Amendment shall constitute a “Loan Document” for all purposes of the Amended Credit Agreement and the other Loan Documents and shall be deemed to be an “Incremental Amendment” as defined in the Amended Credit Agreement.

 

(c)                                  Each Loan Party hereby (i) acknowledges that it has reviewed the terms and provisions of this Amendment, (ii) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party, (iii) ratifies and reaffirms each grant of a lien on, or security interest in, its property made pursuant to the Loan Documents (including, without limitation, each grant of security made by such Loan Party pursuant to the Collateral Documents) and confirms that such liens and security interests continue to secure the Obligations under the Loan Documents (including, for the avoidance of doubt, all Obligations, Obligations Secured and Guaranteed Obligations in respect of the Additional 2018 Incremental Term Loans made available hereunder, each as defined in the applicable Loan Document), subject to the terms thereof, (iv) acknowledges and agrees that each Loan Document to which it is a party or otherwise bound shall continue and remain in full force and effect and all of its obligations thereunder shall be valid and enforceable and not be impaired or limited by the execution of this Amendment and (v) in the case of each Guarantor, ratifies and reaffirms its guaranty of the Obligations, Obligations Secured, and Guaranteed Obligations (each as defined in the applicable Loan Document) (including, for the avoidance of doubt, all such obligations in respect of the Additional 2018 Incremental Term Loans made available hereunder) pursuant to the Guaranty.

 

(d)                                 Each party hereto agrees and acknowledges that this Amendment constitutes all notices or requests required under Sections 2.14 of the Existing Credit Agreement, and to the extent inconsistent with any requirement or provision thereof, hereby waives any such inconsistency in effecting the amendments, agreements and undertakings provided herein.

 

SECTION 8.                         Amendments; Severability.  This Amendment may not be amended nor may any provision hereof be waived except pursuant to Section 10.01 of the Amended Credit Agreement.  If any provision of this Amendment is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 9.                         GOVERNING LAW; Waiver of Jury Trial; Jurisdiction.  THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  The provisions of Sections 10.15(b) and (c), 10.16 and 10.21 of the Amended Credit Agreement are incorporated herein by reference, mutatis mutandis.

 

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SECTION 10.                  Headings.  Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Amendment.

 

SECTION 11.                  Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile or other electronic imaging means of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

	
 
    	
GFL ENVIRONMENTAL INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
1877984 ONTARIO INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GFL INFRASTRUCTURE GROUP INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
2191660 ONTARIO INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President and Secretary
    
	
 
    	
 
    
	
 
    	
MID CANADA ENVIRONMENTAL   SERVICES LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President and Secretary
    
	
 
    	
 
    
	
 
    	
GFL MARITIMES INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
SERVICES MATREC INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
2481638 ONTARIO INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
2533901 ONTARIO INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
GFL ENVIRONMENTAL HOLDINGS   (US), INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
GFL HOLDCO (US), LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
GFL ENVIRONMENTAL recycling services llc
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
GFL ENVIRONMENTAL USA INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
BALDWIN PONTIAC LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
GFL ENVIRONMENTAL INC. 2018
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
ACCUWORX INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
SMITHRITE EQUIPMENT PAINTING   & REPAIR LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
GFL ENVIRONMENTAL REAL   PROPERTY, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
WATER X INDUSTRIAL SERVICES   LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    
	
 
    	
BETTY MERGER SUB INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick   Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title: President
    

 

[SIGNATURE PAGE – SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
TOTTENHAM AIRFIELD CORPORATION   INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Bailey
    
	
 
    	
 
    	
Name: John   Bailey
    
	
 
    	
 
    	
Title:   President and Secretary
    
	
 
    	
 
    
	
 
    	
MOUNT ALBERT PIT INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Bailey
    
	
 
    	
 
    	
Name: John   Bailey
    
	
 
    	
 
    	
Title:   President and Secretary
    
	
 
    	
 
    
	
 
    	
1248544 ONTARIO LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick Dovigi
    
	
 
    	
 
    	
Name: Patrick Dovigi
    
	
 
    	
 
    	
Title:   President
    

 

[SIGNATURE PAGE - SECOND AMENDMENT TO CREDIT AGREEMENT]

 

 

	
 
    	
CITIBANK, N.A.,   
    
	
 
    	
as Existing Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Justin Tichaver
    
	
 
    	
 
    	
Name:
    	
Justin Tichaver
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Second Amendment]

 

 

	
 
    	
BARCLAYS   BANK PLC, 
    
	
 
    	
as Successor Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ronnie Glenn
    
	
 
    	
 
    	
Name:
    	
Ronnie Glenn
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment]

 

 

	
 
    	
BARCLAYS   BANK PLC., 
    
	
 
    	
as an Additional 2018 Incremental Term Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ronnie Glenn
    
	
 
    	
 
    	
Name:
    	
Ronnie Glenn
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment]

 

 

SCHEDULE 1

 

	
Additional 2018
   Incremental Term
   Lender
    	
 
    	
Additional 2018 Incremental
   Term Commitment
    	
 
    
	
Barclays Bank, PLC
    	
 
    	
$
    	
1,710,000,000
    	
 
    
					

 

 

EXHIBIT A

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

[Attached]

 

 

EXHIBIT A

	
 
    

 

AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT

 

Originally dated as of September 30, 2016

 

as amended and restated as of May 31, 2018

 

among

 

GFL ENVIRONMENTAL INC.,
 as the Borrower,

 

CITIBANK, N.A.,
 as the Administrative Agent,

 

BARCLAYS BANK PLC,
 as the Collateral Agent,

 

and

 

THE LENDERS PARTY HERETO

	
 
    

 

CITIGROUP GLOBAL MARKETS INC.,
 ROYAL BANK OF CANADA,
 BARCLAYS BANK PLC
 and 
 BMO CAPITAL MARKETS CORP.
 as Joint Lead Arrangers and Joint Bookrunners,

 

 THE BANK OF NOVA SCOTIA,
 NATIONAL BANK OF CANADA,
 CANADIAN IMPERIAL BANK OF COMMERCE,
 and 
 MACQUARIE CAPITAL (USA) INC.
 as Co-Managers

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
ARTICLE I
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Definitions   and Accounting Terms
    	
12
    
	
Section 1.01
    	
Defined Terms
    	
12
    
	
Section 1.02
    	
Other Interpretive   Provisions
    	
6668
    
	
Section 1.03
    	
Accounting Terms
    	
6768
    
	
Section 1.04
    	
Rounding
    	
6768
    
	
Section 1.05
    	
References to   Agreements, Laws, Etc.
    	
6769
    
	
Section 1.06
    	
Times of Day
    	
6769
    
	
Section 1.07
    	
Certain Calculations
    	
69
    
	
Section 1.08
    	
Pro Forma Calculations
    	
6869
    
	
Section 1.09
    	
Currency Equivalents   Generally
    	
72
    
	
Section 1.10
    	
Certifications
    	
7173
    
	
Section 1.11
    	
Payment or Performance
    	
7173
    
	
Section 1.12
    	
Quebec Interpretation   Clause
    	
7173
    
	
Section 1.13
    	
Treatment of   Subsidiaries Prior to Joinder
    	
73
    
	
Section 1.14
    	
Limited Condition   Transactions
    	
7273
    
	
Section 1.15
    	
Divisions
    	
75
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The   Commitments and Borrowings
    	
7375
    
	
Section 2.01
    	
The Loans
    	
7375
    
	
Section 2.02
    	
Borrowings, Conversions   and Continuations of Loans
    	
7476
    
	
Section 2.03
    	
[reserved]
    	
7678
    
	
Section 2.04
    	
[reserved]
    	
7678
    
	
Section 2.05
    	
Prepayments
    	
7678
    
	
Section 2.06
    	
Termination or   Reduction of Commitments
    	
8890
    
	
Section 2.07
    	
Repayment of Loans
    	
8891
    
	
Section 2.08
    	
Interest
    	
8991
    
	
Section 2.09
    	
Fees
    	
8992
    
	
Section 2.10
    	
Computation of Interest   and Fees
    	
9092
    
	
Section 2.11
    	
Evidence of   Indebtedness
    	
9093
    
	
Section 2.12
    	
Payments Generally
    	
9193
    
	
Section 2.13
    	
Sharing of Payments,   Etc.
    	
9395
    
	
Section 2.14
    	
Incremental Credit   Extensions
    	
9396
    
	
Section 2.15
    	
Refinancing Amendments
    	
9799
    
	
Section 2.16
    	
[Reserved]
    	
101103
    
	
Section 2.17
    	
Extended Term Loans
    	
101103
    
	
Section 2.18
    	
[Reserved]
    	
104106
    
	
Section 2.19
    	
Defaulting Lenders
    	
104106
    
	
Section 2.20
    	
Loan Repricing   Protection
    	
104106
    
	
Section 2.21
    	
Appointment of Joint and Several Co-Borrowers
    	
107
    

 

i

 

Table of Contents

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Taxes, Increased   Costs Protection and Illegality
    	
104109
    
	
Section 3.01
    	
Taxes
    	
104109
    
	
Section 3.02
    	
Illegality
    	
109113
    
	
Section 3.03
    	
Inability to Determine   Rates
    	
109114
    
	
Section 3.04
    	
Increased Cost and   Reduced Return; Capital Adequacy; Reserves on Eurocurrency Rate   Loans, etc.
    	
110115
    
	
Section 3.05
    	
Funding Losses
    	
112116
    
	
Section 3.06
    	
Matters Applicable to   All Requests for Compensation
    	
113117
    
	
Section 3.07
    	
Replacement of Lenders   under Certain Circumstances
    	
114118
    
	
Section 3.08
    	
Survival
    	
115120
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
 
    	
 
    
	
 
    	
 
    
	
Conditions   Precedent to Credit Extensions
    	
116120
    
	
Section 4.01
    	
Conditions to Initial   Credit Extension
    	
116120
    
	
Section 4.02
    	
Conditions to All   Credit Extensions after the Closing Date
    	
118122
    
	
Section 4.03
    	
Conditions to First   Amendment Effectiveness
    	
118123
    
	
Section 4.04
    	
Conditions to All   Borrowings of Delayed Draw Term Loans
    	
118123
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
 
    	
 
    
	
 
    	
 
    
	
Representations   and Warranties
    	
119123
    
	
Section 5.01
    	
Existence,   Qualification and Power
    	
119124
    
	
Section 5.02
    	
Authorization; No   Contravention
    	
120124
    
	
Section 5.03
    	
Governmental   Authorization; Other Consents
    	
120124
    
	
Section 5.04
    	
Binding Effect
    	
120124
    
	
Section 5.05
    	
Financial Statements;   No Material Adverse Effect
    	
120125
    
	
Section 5.06
    	
Litigation
    	
120125
    
	
Section 5.07
    	
Labor Matters
    	
121125
    
	
Section 5.08
    	
Ownership of Property;   Liens
    	
121125
    
	
Section 5.09
    	
Environmental Matters
    	
121125
    
	
Section 5.10
    	
Taxes
    	
121125
    
	
Section 5.11
    	
Benefits
    	
121126
    
	
Section 5.12
    	
Subsidiaries
    	
122126
    
	
Section 5.13
    	
Margin Regulations;   Investment Company Act
    	
122126
    
	
Section 5.14
    	
Disclosure
    	
122126
    
	
Section 5.15
    	
Intellectual Property;   Licenses, Etc.
    	
122127
    
	
Section 5.16
    	
Solvency
    	
123127
    
	
Section 5.17
    	
[Reserved]
    	
123127
    
	
Section 5.18
    	
Compliance with Laws;   PATRIOT Act; FCPA; OFAC
    	
123127
    
	
Section 5.19
    	
Collateral Documents
    	
123128
    

 

ii

 

Table of Contents

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Affirmative   Covenants
    	
124128
    
	
Section 6.01
    	
Financial Statements
    	
124129
    
	
Section 6.02
    	
Certificates; Other   Information
    	
125130
    
	
Section 6.03
    	
Notices
    	
127132
    
	
Section 6.04
    	
Payment of Taxes
    	
128132
    
	
Section 6.05
    	
Preservation of   Existence, Etc.
    	
128132
    
	
Section 6.06
    	
Maintenance of   Properties
    	
128133
    
	
Section 6.07
    	
Maintenance of   Insurance
    	
128133
    
	
Section 6.08
    	
Compliance with Laws
    	
128133
    
	
Section 6.09
    	
Sanctions and   Anti-Corruption
    	
129133
    
	
Section 6.10
    	
Lender Conference Calls
    	
129133
    
	
Section 6.11
    	
Books and Records;   Inspection and Audit Rights
    	
129133
    
	
Section 6.12
    	
Covenant to Guarantee   Obligations and Give Security
    	
130134
    
	
Section 6.13
    	
Compliance with   Environmental Laws
    	
131135
    
	
Section 6.14
    	
Further Assurances
    	
131136
    
	
Section 6.15
    	
Designation of   Subsidiaries
    	
132137
    
	
Section 6.16
    	
Maintenance of Ratings
    	
133137
    
	
Section 6.17
    	
Post-Closing Actions
    	
133137
    
	
Section 6.18
    	
Use of Proceeds
    	
133138
    
	
Section 6.19
    	
Change in Nature of   Business
    	
133138
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
 
    	
 
    
	
 
    	
 
    
	
Negative   Covenants
    	
134138
    
	
Section 7.01
    	
Liens
    	
134138
    
	
Section 7.02
    	
Investments
    	
140145
    
	
Section 7.03
    	
Indebtedness
    	
144149
    
	
Section 7.04
    	
Fundamental Changes
    	
149153
    
	
Section 7.05
    	
Dispositions
    	
150154
    
	
Section 7.06
    	
Restricted Payments
    	
153158
    
	
Section 7.07
    	
Changes in Fiscal   Periods
    	
157161
    
	
Section 7.08
    	
Transactions with   Affiliates
    	
157162
    
	
Section 7.09
    	
Burdensome Agreements
    	
160165
    
	
Section 7.10
    	
Negative Pledge
    	
162166
    
	
Section 7.11
    	
[Reserved]
    	
162167
    
	
Section 7.12
    	
Prepayments, Etc. of   Indebtedness; Certain Amendments
    	
162167
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
 
    	
 
    
	
 
    	
 
    
	
Events   of Default and Remedies
    	
163168
    
	
Section 8.01
    	
Events of Default
    	
163168
    
	
Section 8.02
    	
Remedies upon Event of   Default
    	
165170
    

 

iii

 

Table of Contents

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 8.03
    	
Application of Funds
    	
166170
    
	
Section 8.04
    	
[Reserved]
    	
166171
    
	
Section 8.05
    	
Clean Up Period
    	
166171
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
 
    	
 
    
	
 
    	
 
    
	
Administrative   Agent and Other Agents
    	
167172
    
	
Section 9.01
    	
Appointment and   Authority of the Administrative Agent
    	
167172
    
	
Section 9.02
    	
Rights as a Lender
    	
168173
    
	
Section 9.03
    	
Exculpatory Provisions
    	
168173
    
	
Section 9.04
    	
Reliance by Agents
    	
169174
    
	
Section 9.05
    	
Delegation of Duties
    	
169174
    
	
Section 9.06
    	
Non-Reliance on   Administrative Agent, Collateral Agent and Other Lenders; Disclosure of   Information by Agents
    	
170175
    
	
Section 9.07
    	
Indemnification of   Agents
    	
170175
    
	
Section 9.08
    	
No Other Duties; Other   Agents, Lead Arrangers, Managers, Etc.
    	
171176
    
	
Section 9.09
    	
Resignation and Removal   of Administrative Agent
    	
171176
    
	
Section 9.10
    	
Administrative Agent   May File Proofs of Claim
    	
172177
    
	
Section 9.11
    	
Collateral and Guaranty   Matters
    	
173178
    
	
Section 9.12
    	
Appointment of   Supplemental Administrative Agents
    	
174179
    
	
Section 9.13
    	
Intercreditor   Agreements
    	
175180
    
	
Section 9.14
    	
Secured Cash Management   Agreements and Secured Hedge Agreements
    	
176181
    
	
Section 9.15
    	
Withholding Taxes
    	
176181
    
	
 
    	
 
    	
 
    
	
ARTICLE X
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Miscellaneous
    	
 
    	
176181
    
	
Section 10.01
    	
Amendments, Etc.
    	
176181
    
	
Section 10.02
    	
Notices and Other Communications;   Facsimile Copies
    	
180185
    
	
Section 10.03
    	
No Waiver; Cumulative   Remedies
    	
182187
    
	
Section 10.04
    	
Attorney Costs and   Expenses
    	
182187
    
	
Section 10.05
    	
Indemnification by the   Borrower
    	
183188
    
	
Section 10.06
    	
Marshaling; Payments   Set Aside
    	
185190
    
	
Section 10.07
    	
Successors and Assigns
    	
186191
    
	
Section 10.08
    	
Confidentiality
    	
194199
    
	
Section 10.09
    	
Set-off
    	
195200
    
	
Section 10.10
    	
Interest Rate   Limitation
    	
196201
    
	
Section 10.11
    	
Counterparts;   Integration; Effectiveness
    	
196201
    
	
Section 10.12
    	
Electronic Execution of   Assignments and Certain Other Documents
    	
196201
    
	
Section 10.13
    	
Survival of   Representations and Warranties
    	
197202
    
	
Section 10.14
    	
Severability
    	
197202
    
	
Section 10.15
    	
GOVERNING LAW,   JURISDICTION AND ARBITRATION
    	
197202
    
	
Section 10.16
    	
WAIVER OF RIGHT TO   TRIAL BY JURY
    	
198203
    

 

iv

 

Table of Contents

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 10.17
    	
Binding Effect
    	
198203
    
	
Section 10.18
    	
Lender Action
    	
198203
    
	
Section 10.19
    	
[Reserved]
    	
199204
    
	
Section 10.20
    	
PATRIOT Act Notice
    	
199204
    
	
Section 10.21
    	
Service of Process
    	
199204
    
	
Section 10.22
    	
No Advisory or   Fiduciary Responsibility
    	
199204
    
	
Section 10.23
    	
Judgment Currency
    	
199204
    
	
Section 10.24
    	
Cashless Settlement
    	
200205
    
	
Section 10.25
    	
Appointment of   Hypothecary Representative for Quebec Security
    	
200205
    
	
Section 10.26
    	
Acknowledgement and   Consent to Bail-In of EEA Financial Institutions
    	
200205
    

 

v

 

Table of Contents

(continued)

 

	
 
    	
 
    	
Page
    

 

SCHEDULES

 

	
1.01B
    	
Material   Real Property
    
	
1.01C
    	
Certain   Security Interests and Guarantees
    
	
2.01
    	
Commitments
    
	
5.12
    	
Subsidiaries   and Other Equity Investments
    
	
6.17
    	
Post-Closing   Actions
    
	
7.01(b)
    	
Existing   Liens
    
	
7.02(f)
    	
Existing   Investments
    
	
7.03(b)
    	
Existing   Indebtedness
    
	
7.05(w)
    	
Dispositions
    
	
7.08
    	
Transactions   with Affiliates
    
	
10.02
    	
Administrative   Agent’s Office, Certain Addresses for Notices
    

 

EXHIBITS

 

	
Form of
    	
 
    
	
 
    	
 
    
	
A
    	
Loan   Notice
    
	
B
    	
[reserved]
    
	
C
    	
Compliance   Certificate
    
	
D
    	
Term   Note
    
	
E-1
    	
Assignment   and Assumption
    
	
E-2
    	
Affiliate   Assignment Notice
    
	
F
    	
Guaranty
    
	
G-1
    	
U.S.   Security Agreement
    
	
G-2
    	
General   Security Agreement
    
	
G-3
    	
Deed   of Hypothec
    
	
H-1
    	
Non-Bank   Certificate (For Foreign Lenders Not Treated as Partnerships)
    
	
H-2
    	
Non-Bank   Certificate (For Foreign Lenders Treated as Partnerships)
    
	
H-3
    	
Non-Bank   Certificate (For Foreign Participants Not Treated as Partnerships)
    
	
H-4
    	
Non-Bank   Certificate (For Foreign Participants Treated as Partnerships)
    
	
I
    	
Intercompany   Note
    
	
J
    	
Discount   Range Prepayment Notice
    
	
K
    	
Discount   Range Prepayment Offer
    
	
L
    	
Solicited   Discounted Prepayment Notice
    
	
M
    	
Solicited   Discounted Prepayment Offer
    
	
N
    	
Specified   Discount Prepayment Notice
    
	
O
    	
Specified   Discount Prepayment Response
    
	
P
    	
Acceptance   and Prepayment Notice
    
	
Q
    	
Solvency   Certificate
    
	
R
    	
Co-Borrower Joinder Agreement
    

 

vi

 

AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT

 

This AMENDED AND RESTATED TERM LOAN CREDIT AGREEMENT (this “Agreement”) is entered into as of May 31, 2018, by and among GFL Environmental Inc., a corporation amalgamated and existing under the laws of the Province of Ontario, as the Borrower (the “Initial Borrower”), Citibank, N.A., as administrative agent, and Barclays Bank PLC, as collateral agent under the Loan Documents, and each lender from time to time party hereto (collectively, the “Lenders” and, individually, each, a “Lender”).

 

PRELIMINARY STATEMENTS

 

The Borrower, Barclays Bank PLC, as administrative agent and collateral agent (the “Existing Administrative Agent”), and each Lender from time to time party thereto are parties to the Term Loan Credit Agreement dated as of September 30, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”).

 

The Existing Credit Agreement provided the Borrower with Initial Canadian Term Loans on the Closing Date in an initial aggregate principal amount of C$130,000,000 and Initial U.S. Term Loans on the Closing Date in an initial aggregate principal amount of $370,000,000.

 

andThe Borrower has requested the 2018 Incremental Term Lenders to provide, on the terms and subject to the conditions set forth herein, , on the First Amendment Effective Date, the Borrower was provided an incremental term loan facility in an aggregate principal amount not exceeding $905,000,000, comprising (a) term loans available, which were incurred on the First Amendment Effective Date in an aggregate principal amount of $805,000,000 to beand were used to repay in full the Initial Term Loans outstanding as of the First Amendment Effective Date (together with any accrued and unpaid interest thereon),and to finance a portion of the cash consideration paid to shareholders of the Borrower in connection with the First Amendment Transactions and to pay the fees and expenses incurred in connection with the First Amendment Transactions and the other transactions contemplated thereby herein (including fees and expenses in connection with the First Amendment) and (b) delayed draw term loans in an aggregate principal amount of up to $100,000,000 which will be used on and/or from time to time after the First Amendment Effective Date to provide financing for, or to refinance indebtedness incurred or to replace cash used, which were incurred on October 15, 2018 in connection with, Pre-Approved Acquisitions.

 

As of the First Amendment Effective Date, all Initial Term Loans (and any accrued and unpaid interest thereon) under the Existing Credit Agreement  shall bewas repaid in full.

 

The Borrower has requested the Additional 2018 Incremental Term Lenders to provide, on the terms and subject to the conditions set forth in the Second Amendment and herein, New Term Loans on the Second Amendment Effective Date (as defined below) in an aggregate principal amount of $1,710,000,000 to be used to finance a portion of the consideration paid in connection with the Borrower’s acquisition (the “Acquisition”), indirectly through Betty Merger Sub Inc., a newly-formed Delaware corporation and an indirect, wholly-owned subsidiary of the Borrower (the “Buyer”), of Wrangler Super Holdco Corp., a corporation organized under the laws of Delaware (the “Target”), from the equity holders thereof, pursuant to the Agreement and Plan of Merger, dated as of October 9, 2018 (together with all exhibits, schedules and other disclosure letters thereto, collectively, and as amended prior to the date hereof, the “Merger Agreement”) by and among the Buyer, GFL Environmental Holdings (US), Inc., a Delaware corporation and the indirect parent of the Borrower, the Target, solely for 

 

 

purposes of Article X thereof, the Borrower and the securityholder representative identified therein. Pursuant to the Merger Agreement, the Buyer will merge with and into the Target, with the Target remaining as the surviving corporation of the merger and becoming a wholly-owned, indirect subsidiary of the Borrower.

 

The Existing Administrative Agent, the Administrative Agent, the Collateral Agent and each of the Lenders party to the First Amendment have agreed to (a) amend the Existing Credit Agreement to provide for the 2018 Incremental Term Loans extended by the 2018 Incremental Term Lenders and (b) make certain other amendments to the Existing Credit Agreement.

 

The Lenders have indicated their willingness to lend on the terms and subject to the conditions set forth herein.

 

In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree that the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

ARTICLE I

 

Definitions and Accounting Terms

 

Section 1.01                            Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“2018 Incremental Term Commitment” has the meaning specified in the First Amendment.

 

“2018 Incremental Term Lender” has the meaning specified in the First Amendment.

 

“2018 Incremental Term Loan” has the meaning specifiedmeans (i) prior to the Second Amendment Effective Date, the “2018 Incremental Term Loans” under and as defined in the First Amendment. and (ii) on and following the Second Amendment Effective Date, the collective reference to the 2018 Incremental Term Loans made to the Borrower pursuant to the First Amendment on the First Amendment Effective Date and the Additional 2018 Incremental Term Loans made to the Borrower pursuant to the Second Amendment on the Second Amendment Effective Date.

 

“Acceptable Discount” has the meaning specified in Section 2.05(a)(v)(D)(2).

 

“Acceptable Prepayment Amount” has the meaning specified in Section 2.05(a)(v)(D)(3).

 

“Acceptance and Prepayment Notice” means a notice of the applicable Borrower Party’s acceptance of the Acceptable Discount in substantially the form of Exhibit P.

 

“Acceptance Date” has the meaning specified in Section 2.05(a)(v)(D)(2).

 

“Additional 2018 Incremental Term Commitment” means, with respect to each Additional  2018 Incremental Term Lender, its commitment to make Additional 2018 Incremental Term Loans to the Borrower on the Second Amendment Effective Date, as the same may be (i) reduced from time to time pursuant to Section 2.06 hereof and (ii) reduced or increased from time to time pursuant to (A) assignments by or to such Additional  Incremental Term Lender pursuant to an Assignment and Assumption in accordance with the terms hereof, (B) an Incremental Amendment, (C) a Refinancing Amendment, (D) an Extension Amendment or (E) an amendment hereof in respect of Replacement Term 

 

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Loans. The aggregate amount of Additional 2018 Incremental Term Commitments on the Second Amendment Effective Date is $1,710,000,000. The Additional 2018 Incremental Term Commitments shall automatically terminate on the Second Amendment Effective Date upon the funding of the Additional 2018 Incremental Term Loans.

 

“Additional 2018 Incremental Term Lender” means each Lender party to the Second Amendment providing the Additional 2018 Incremental Term Loans on the Second Amendment Effective Date.

 

“Additional 2018 Incremental Term Loan” means the New Term Loans provided to the Borrower pursuant to the Second Amendment on the Second Amendment Effective Date in an aggregate principal amount not exceed $1,710,000,000.

 

“Additional Lender” means, at any time, any bank, other financial institution or other entity that, in any case, is not an existing Lender and that agrees to provide any portion of any (a) New Revolving Commitment, New Term Commitment or New Term Loan in accordance with Section 2.14, (b) Refinancing Loans or Refinancing Term Commitments in accordance with Section 2.15 or (c) Replacement Term Loans pursuant to Section 10.01; provided that each Additional Lender shall be subject to the approval of the Administrative Agent (such approval not to be unreasonably withheld or delayed), in each case to the extent any such consent would be required from the Administrative Agent under Section 10.07(b)(iii)(B) for an assignment of Loans to such Additional Lender, and the consent of the Borrower, to the extent required under Section 10.07(b)(iii)(A); provided further that no Additional Lender shall be a Disqualified Institution, any other Person that is not an Eligible Assignee or the Borrower or any Subsidiary thereof.

 

“Adjusted Eurocurrency Rate” means an interest rate per annum equal to the Eurocurrency Rate, multiplied by the Statutory Reserve Rate; provided that the Eurocurrency Rate with respect to Initial Term Loans and 2018 Incremental Term Loans will be deemed not to be less than 1.00% per annum and with respect to all other Loans will be deemed not to be less than zero.  The Adjusted Eurocurrency Rate will be adjusted automatically as of the effective date of any change in the Statutory Reserve Rate.

 

“Administrative Agent” means, prior to the FirstSecond Amendment Effective Date, BarclaysCiti, and on and after the FirstSecond Amendment Effective Date, CitiBarclays and any successor thereto.

 

“Administrative Agent Fee Letter” means the Agency Fee Letter, dated as of September 30, 2016the Second Amendment Effective Date, between Barclays and the Borrower.

 

“Administrative Agent’s Office” means the Administrative Agent’s address and account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify the Borrower and the Lenders.

 

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

 

“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controls” and “Controlled” have meanings correlative thereto.

 

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“Affiliated Debt Fund” means any Affiliate of any Equity Sponsor (other than a natural person) that is a bona fide debt fund, proprietary trading desk, investment vehicle or other similar business or entity organized for the purpose of underwriting, arranging, syndicating, investing in, trading or managing debt obligations that is either primarily engaged in, or advises funds, entities or other investment vehicles that are engaged in underwriting, arranging, syndicating, making, purchasing, holding or otherwise investing in loans, bonds and similar extensions of credit or securities in the ordinary course, but only to the extent that no personnel involved with the investment in any equity fund which has a direct or indirect equity investment in Borrower or any other Subsidiary makes (or has the right to make or participate with others in making) investment decisions on such Affiliate’s behalf.

 

“Affiliated Lender” means, at any time, any Affiliate of the Borrower (other than (a) a natural Person, (b) the Borrower or any of its Subsidiaries and (c) any Affiliated Debt Fund) that is a Lender under the Facility.

 

“Affiliated Lender Cap” has the meaning specified in Section 10.07(h)(iii).

 

“Agent Parties” has the meaning specified in Section 10.02(d).

 

“Agent-Related Distress Event” means with respect to the Agents or any Person that directly or indirectly Controls the Agents, as the case may be (each, a “Distressed Agent-Related Person”), a voluntary or involuntary case with respect to such Distressed Agent-Related Person under any Debtor Relief Law, or a custodian, conservator, receiver or similar official is appointed for such Distressed Agent-Related Person or any substantial part of such Distressed Agent-Related Person’s assets, or such Distressed Agent-Related Person makes a general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental Authority (having regulatory authority over such Distressed Agent-Related Person) to be, insolvent or bankrupt; provided that an Agent-Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any Equity Interests in the Agents or any Person that directly or indirectly Controls the Agents, as the case may be, by a Governmental Authority.

 

“Agent-Related Persons” means the Agents, together with their respective Affiliates, and the officers, directors, employees, agents, attorney-in-fact, partners, trustees and advisors of such Persons and of such Persons’ Affiliates.

 

“Agents” means, collectively, the Administrative Agent, the Collateral Agent and the Supplemental Administrative Agents (if any).

 

“Aggregate Commitments” means the Commitments of all the Lenders.

 

“Agreement” has the meaning specified in the introductory paragraph to this Agreement.

 

“AHYDO Catch-Up Payment” means any payment, including subordinated debt obligations, in each case to avoid the disallowance of deductions pursuant to Section 163(e)(5) of the Code.

 

“All-In Yield” means, as to any Indebtedness, the yield thereof, whether in the form of interest rate, margin, OID, upfront fees, a Eurocurrency Rate floor, Base Rate floor, CDOR Rate floor, Canadian Prime Rate floor or otherwise, in each case, payable by the Borrower; provided that OID and upfront fees shall be equated to interest rate assuming a 4-year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness); and provided, further, that “All-In Yield” shall not include (x) arrangement fees, commitment fees, structuring fees or underwriting or similar fees paid to arrangers for such Indebtedness (regardless of whether paid in whole or in part to any or all lenders under 

 

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the applicable Indebtedness) or other fees that are not paid generally to all lenders of such Indebtedness, (y) bona fide ticking fees or unused line fees, it being understood, in each case, that whether such fee is bona fide is determined at the time the amount of such fee is agreed and (z) customary consent fees paid generally to consenting Lenders.

 

“Annual Financial Statements” means the audited consolidated balance sheet of the Borrower as of December 31, 2015, and the related consolidated statement of operations, stockholders’ equity and cash flows for the Borrower for the fiscal years then ended.

 

“Applicable Discount” has the meaning specified in Section 2.05(a)(v)(C)(2).

 

“Applicable Rate” means a percentage per annum equal to, (A) with respect to Initial Term Loans, (i) 1.75% in the case of Base Rate Loans, (ii) 2.75% in the case of Eurocurrency Rate Loans and Canadian Prime Rate Loans (iii) and 3.75% in the case of CDOR Rate Loans and (B) with respect to the 2018 Incremental Term Loans, (i) 1.752.00% in the case of Base Rate Loans and (ii) 2.753.00% in the case of Eurocurrency Rate Loans.

 

Notwithstanding the foregoing, the Applicable Rate in respect of Extended Term Loans of any Term Loan Extension Series, Refinancing Term Loans, New Revolving Commitments, New Term Commitments, New Term Loans, or Replacement Term Loans shall be the applicable percentages per annum provided pursuant to the applicable Extension Amendment, Refinancing Amendment, Incremental Amendment or amendment to this Agreement in respect of Replacement Term Loans, as the case may be.  The Applicable Rate in respect of Extended Term Loans of any Term Loan Extension Series, Refinancing Term Loans, New Revolving Commitments, New Term Commitments, New Term Loans, or Replacement Term Loans may be further adjusted as may be agreed by the relevant Lenders and the Borrower in connection with any Extension Amendment, Refinancing Amendment, Incremental Amendment or amendment to this Agreement in respect of Replacement Term Loans, as the case may be.

 

“Appropriate Lender” means, at any time, with respect to Loans or Commitments of any Class, the Lenders of such Class.

 

“Approved Fund” means, with respect to any Lender, any Fund that is administered, advised or managed by (a) such Lender, (b) an Affiliate of such Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages such Lender.

 

“Asset Sale Percentage” has the meaning specified in Section 2.05(b)(ii).

 

“Assignment and Assumption” means an Assignment and Assumption substantially in the form of Exhibit E-1 or any other form approved by the Administrative Agent.

 

“Assumed Indebtedness” has the meaning specified in Section 7.03(g).

 

“Attorney Costs” means all reasonable and documented (in reasonable detail) fees and expenses of any law firm or other external legal counsel.

 

“Attributable Indebtedness” means, on any date, in respect of any Capitalized Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP.

 

“Auction Agent” means (a) the Administrative Agent or (b) any other financial institution or advisor employed by the Borrower (whether or not an Affiliate of the Administrative Agent) to act as an 

 

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arranger in connection with any Discounted Loan Prepayment pursuant to Section 2.05(a)(v); provided that the Borrower shall not designate the Administrative Agent as the Auction Agent without the written consent of the Administrative Agent (it being understood that the Administrative Agent shall be under no obligation to agree to act as the Auction Agent); provided, further, that neither the Borrower nor any of its Affiliates may act as the Auction Agent.

 

“Available Amount” means, at any time (the “Reference Date”), the sum of (without duplication):

 

(a)                                 C$200,000,000; plus

 

(b)                                 an amount equal to the CNI Growth Amount; plus

 

(c)                                  to the extent not included in the definition of “Excluded Contribution,” the amount of any capital contributions made in cash, Cash Equivalents or Net Cash Proceeds from Permitted Equity Issuances (or issuances of debt securities that have been converted into or exchanged for Qualified Equity Interests) and the fair market value of any in-kind amounts received by the Borrower (or any other direct or indirect parent thereof and contributed by such parent to the Borrower) during the period from and including the Business Day immediately following the Closing Date through and including the Reference Date and Not Otherwise Applied; plus

 

(d)                                 to the extent not (A) included in clause (b) above or (B) already reflected as a return of capital with respect to such Investment for purposes of determining the amount of such Investment, the aggregate amount of all Returns (including all cash repayment of principal) received in cash or Cash Equivalents by the Borrower or any Restricted Subsidiary from any Investment (including from any Unrestricted Subsidiary) during the period from and including the Business Day immediately following the Closing Date through and including the Reference Date, in each case, to the extent any such Investment was made using the Available Amount pursuant to Section 7.02(j); plus

 

(e)                                  to the extent not (A) included in clause (b) or (d) above, (B) already reflected as a return of capital with respect to such Investment for purposes of determining the amount of such Investment or (C) required to be applied to prepay Term Loans in accordance with Section 2.05(b)(ii), the aggregate amount of all Net Cash Proceeds received by the Borrower or any Restricted Subsidiary in connection with the sale, transfer or other disposition of any Investment or its ownership interest in any Unrestricted Subsidiary during the period from and including the Business Day immediately following the Closing Date through and including the Reference Date, in each case, to the extent any such Investment was made using the Available Amount pursuant to Section 7.02(j); plus

 

(f)                                   to the extent not (A) included in clause (b), (d) or (e) above or (B) already reflected as a return of capital with respect to such Investment for purposes of determining the amount of such Investment, in the event that the Borrower redesignates as a Restricted Subsidiary any Unrestricted Subsidiary that was designated as an Unrestricted Subsidiary after the Closing Date (which, for purposes hereof, shall be deemed to also include (1) the merger, consolidation, liquidation or similar amalgamation of any such Unrestricted Subsidiary into the Borrower or any Restricted Subsidiary, so long as the Borrower or such Restricted Subsidiary is the surviving Person, and (2) the transfer of all or substantially all of the assets of any such Unrestricted Subsidiary to the Borrower or any Restricted Subsidiary), the fair market value (as determined in good faith by the Borrower) of the Investment in such Unrestricted

 

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Subsidiary at the time of such redesignation, in each case, to the extent such Investment in such Unrestricted Subsidiary was made using the Available Amount pursuant to Section 7.02(j); plus

 

(g)                                  the Net Cash Proceeds received by the Borrower or any of its Restricted Subsidiaries of any Indebtedness or Disqualified Equity Interests incurred or issued by the Borrower or any of its Restricted Subsidiaries following the Closing Date (other than Indebtedness owing to the Borrower or a Subsidiary) that is exchanged or converted into Qualified Equity Interests of the Borrower (or any direct or indirect parent of the Borrower); plus

 

(h)                                 Borrower Retained Prepayment Amounts; minus

 

(i)                                     any Investments made pursuant to Section 7.02(j), any Restricted Payment made pursuant to Section 7.06(c) or any payment made pursuant to Section 7.12(a)(v), in each case, during the period commencing on the First Amendment Effective Date and ending on the Reference Date (and, for purposes of this clause (i), without taking account of the intended usage of the Available Amount on such Reference Date in the contemplated transaction).

 

“Available Incremental Amount” means an aggregate principal amount of up to (a) the greater of (x) C$400,000,000 and (y) 100% of Consolidated EBITDA for the Test Period ended most recently prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt, as the case may be (which amount (i) shall be reduced by the aggregate principal amount of any New Term Loans, New Revolving Commitments and Incremental Equivalent Debt incurred in reliance on this clause (a), but (ii) shall not be reduced by any amount incurred or issued in reliance on the immediately succeeding clause (b)); plus (b) an unlimited amount of New Term Loans, New Revolving Commitments and any Incremental Equivalent Debt so long as, if such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt are secured on a pari passu basis with respect to the Liens securing the Term Loans, the Total Net First Lien Leverage Ratio for the Test Period ended most recently prior to the incurrence or issuance of such New Term Loans and/or Incremental Equivalent Debt, as the case may be, after giving Pro Forma Effect to such incurrence or issuance, is less than or equal to (A) 4.25:1.00 or (B) in the case of any New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net First Lien Leverage Ratio immediately prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt and consummation of such Permitted Acquisition or permitted Investment (or, (I) if such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt will rank junior in right of security with respect to the Liens securing the Term Loans, an unlimited amount of New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt so long as the Total Net Senior Secured Leverage Ratio for the Test Period ended most recently prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt, as the case may be, after giving Pro Forma Effect to such incurrence or issuance, is less than or equal to (A) 5.50:1.00 or (B) in the case of any New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net Senior Secured Leverage Ratio immediately prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt and consummation of such Permitted Acquisition or permitted Investment, or (II) if such New Term Loans, New Revolving Commitments and/or Incremental 

 

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Equivalent Debt will be unsecured, an unlimited amount of New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt so long as the Total Net Leverage Ratio for the Test Period ended most recently prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt, as the case may be, after giving Pro Forma Effect to such incurrence or issuance, is less than or equal to (A) 6.75:1.00 or (B) in the case of any New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net Leverage Ratio immediately prior to the incurrence or issuance of such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt and consummation of such Permitted Acquisition or permitted Investment); plus (c) the aggregate principal amount of all voluntary prepayments of any Loans (including any reduction resulting from any assignment of such Loans to (and/or purchase of such Loans by) the Borrower and/or any Restricted Subsidiary, with credit given the aggregate principal amount of Loans subject to such assignment), except to the extent financed with the proceeds of long-term indebtedness (other than revolving indebtedness); provided that (i) the Borrower may elect to use clause (b) prior to clause (a) or (c) above, and if clause (a) and/or (c) above and clause (b) are available and the Borrower does not make an election, the Borrower will be deemed to have elected clause (b) above and (ii) to the extent the proceeds of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt are intended to be applied to finance a Permitted Acquisition or permitted Investment, the Total Net First Lien Leverage Ratio, Total Net Senior Secured Leverage Ratio or Total Net Leverage Ratio, as applicable, applicable thereto shall be tested instead only at the time the relevant agreement with respect to such Permitted Acquisition or permitted Investment is entered into giving Pro Forma Effect to such Permitted Acquisition or permitted Investment and the incurrence of all Indebtedness to be incurred in connection therewith as if such transactions had occurred on such date. For purposes of determining compliance with this definition of “Available Incremental Amount”, (x) New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt need not be incurred solely by reference to one of clauses (a) through (c) above but may be incurred under any combination of such clauses (including in part under one such category and in part under any other such category), (y) in the event that New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt (or any portion thereof) meets the criteria of one or more of such clauses (a) through (c) above, the Borrower, in its sole discretion, may classify or may subsequently reclassify at any time such New Term Loans, New Revolving Commitments and/or Incremental Equivalent Debt (or any portion thereof) in any manner that  complies with this definition and (z) any New Revolving Commitments to be incurred in compliance with this definition of “Available Incremental Amount” shall be deemed to be fully drawn as of the date of such calculation.

 

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

 

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

 

“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” the Bankruptcy & Insolvency Act (Canada) and the Companies Creditors’ Arrangement Act (Canada), as now or hereafter in effect, or any successor thereto.

 

“Barclays” means Barclays Bank PLC.

 

“Base Rate” means, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent), in each case, as notified to the Borrower, (c) to the extent ascertainable, the Adjusted Eurocurrency Rate plus 1.00% and (d) solely, in 

 

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the case of Initial Term Loans and 2018 Incremental Term Loans, 2.00%; and if Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“Board of Directors” means, with respect to any Person, (i) in the case of any corporation, the board of directors of such Person, (ii) in the case of any limited liability company, the board of managers or board of directors, as applicable, of such Person, or if such limited liability company does not have a board of managers or board of directors, the functional equivalent of the foregoing, (iii) in the case of any partnership, the board of directors or board of managers, as applicable, of the general partner of such Person and (iv) in any other case, the functional equivalent of the foregoing.

 

“Borrower” means, as applicable, the Initial Borrower and any Co-Borrower appointed by the Initial Borrower as a “Co-Borrower” for all purposes hereunder on and after the Second Amendment Effective Date pursuant to Section 2.21.

 

“Borrower Applicant” has the meaning specified in the introductory paragraph to this Agreementset forth in Section 2.21.

 

“Borrower Materials” has the meaning specified in the last paragraph of Section 6.02.

 

“Borrower Offer of Specified Discount Prepayment” means the offer by the applicable Borrower Party to make a voluntary prepayment of Term Loans at a specified discount to par pursuant to Section 2.05(a)(v)(B).

 

“Borrower Parties” means the collective reference to the Borrower and its Subsidiaries, including the Borrower, and “Borrower Party” means any one of them.

 

“Borrower Prepayment Parties” has the meaning specified in Section 2.05(a)(v)(A).

 

“Borrower Retained Prepayment Amounts” has the meaning specified in Section 2.05(b)(vii).

 

“Borrower Solicitation of Discount Range Prepayment Offers” means the solicitation by the applicable Borrower Party of offers for, and the corresponding acceptance by a Lender of, a voluntary prepayment of Term Loans at a specified range of discounts to par pursuant to Section 2.05(a)(v)(C).

 

“Borrower Solicitation of Discounted Prepayment Offers” means the solicitation by the applicable Borrower Party of offers for, and the subsequent acceptance, if any, by a Lender of, a voluntary prepayment of Term Loans at a discount to par pursuant to Section 2.05(a)(v)(D).

 

“Borrowing” means (a) a borrowing consisting of simultaneous Term Loans of the same Class and Type and, in the case of Eurocurrency Rate Loans and CDOR Rate Loans, having the same Interest Period made by each of the applicable Term Lenders pursuant to Section 2.01, (b) the making of a New Term Loan by a Lender or an Additional Lender to the Borrower pursuant to Section 2.14 and the applicable Incremental Amendment, (c) the making of a Refinancing Term Loan by a Lender or an Additional Lender to the Borrower pursuant to Section 2.15 and the applicable Refinancing Amendment, (d) the making of an Extended Term Loan of a given Term Loan Extension Series by a Lender to the Borrower pursuant to Section 2.17 and the applicable Corrective Term Loan Extension Amendment and (e) the making of a Replacement Term Loan by a Lender or an Additional Lender to the Borrower 

 

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pursuant to Section 10.01(B)(c) and the applicable amendment to this Agreement in respect of such Replacement Term Loan.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the jurisdiction where the Administrative Agent’s Office is located and if such day relates to any interest rate settings as to (a) a Eurocurrency Rate Loan, any fundings, disbursements, settlements and payments in respect of any such Eurocurrency Rate Loan, or any other dealings to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such day on which dealings in deposits in U.S. Dollars are conducted by and between banks in the London interbank market and (b) a Canadian Prime Rate or CDOR Rate Loan, means any such day on which commercial banks are authorized to close or in fact closed in Toronto, Ontario.

 

“Caesar Acquisition” means the “Acquisition” (as defined in the Existing Credit Agreement).

 

“Caesar Repo Transaction” means the repurchase transactions entered into among the Borrower and its Subsidiaries in connection with the Caesar Acquisition consummated in connection with the Existing Credit Agreement.

 

“Canadian Dollars” or “C$” means lawful money of Canada.

 

“Canadian Multi-Employer Plan” means a “multi-employer pension plan”, as such term is defined under the Pension Benefits Act (Ontario) or any similar plan registered under pension standards legislation in another jurisdiction in Canada, under which a Loan Party is required to contribute pursuant to a collective bargaining agreement and under which the sole obligation of the Loan Party is to make the contributions specified in the applicable collective bargaining agreement.

 

“Canadian Pension Plan” means any “registered pension plan” as such term is defined in the ITA, which is maintained, administered and contributed to by any Borrower Party in respect of any person’s employment in Canada or a province or territory thereof with any Borrower Party, other than a Canadian Multi-Employer Plan.

 

“Canadian Pledge Agreement” means, collectively, one or more Securities Pledge Agreements executed by the Loan Parties party thereto, together with any supplemental pledge agreement executed and delivered pursuant to Section 6.12, as amended, restated amended and restated, supplemented or otherwise modified from the time to time.

 

“Canadian Prime Rate” means on any day, the annual rate of interest equal to the greater of (i) the annual rate of interest established by Bank of Montreal as the reference rate of interest it will use on such day for determining interest rates on Canadian Dollar denominated commercial loans in Canada and commonly known as “prime rate” and (ii) the annual rate of interest equal to the sum of (A) the one-month CDOR Loan Rate in effect on such day and (B) 1.00%, with any such rate to be adjusted automatically, without notice, as of the opening of business on the effective date of any change in such rate; and if Canadian Prime Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

 

“Canadian Prime Rate Loan” means a Loan that bears interest based on the Canadian Prime Rate.

 

“Canadian Security Agreement” means, collectively, (i) one or more General Security Agreements executed by the Loan Parties party thereto, substantially in the form of Exhibit G-2, and (ii) 

 

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one or more Deeds of Hypothec, dated on or prior to the date hereof, made by the Loan Parties party thereto in favour of Barclays in its capacity as hypothecary representative of the Secured Parties, substantially in the form of Exhibit G-3, together with any Security Agreement Supplement executed and delivered pursuant to Section 6.12, as amended, restated amended and restated, supplemented or otherwise modified from the time to time.

 

“Canadian Subsidiary” means any Subsidiary that is organized under the Laws of Canada or any province thereof.

 

“Capital Expenditures” means, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and including in all events all amounts expended or capitalized under Capitalized Leases) by the Borrower and the Restricted Subsidiaries during such period that, in conformity with GAAP, are or are required to be included as capital expenditures, additions to property, plant or equipment or comparable items (or in intangible accounts subject to amortization) on the consolidated statement of cash flows of the Borrower and the Restricted Subsidiaries.

 

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

 

“Capitalized Leases” means all leases that have been or are required to be, in accordance with GAAP, recorded as capitalized leases; provided that for all purposes hereunder the amount of obligations under any Capitalized Lease shall be the Capitalized Lease Obligation with respect thereto; provided further that any lease that is or would be characterized as an operating lease in accordance with GAAP on the Closing Date (whether or not such lease was in effect on such date) shall be accounted for as an operating lease (and not as a Capitalized Lease) for purposes of this Agreement regardless of any change in GAAP or any change in the application of GAAP following the Closing Date that would otherwise require such lease to be characterized (on a prospective or retroactive basis or otherwise) as a Capitalized Lease.

 

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

 

“Captive Insurance Subsidiary” means any Subsidiary of the Borrower that is subject to regulation as an insurance company (or any Subsidiary thereof).

 

“Cash Collateral Account” means an account subject to the sole dominion and control of the Collateral Agent.

 

“Cash Equivalents” means any of the following types of Investments, to the extent owned by the Borrower or any Restricted Subsidiary:

 

(a)                                 Canadian Dollars and U.S. Dollars;

 

(b)                                 readily marketable direct obligations issued or directly and fully guaranteed or insured by the Canadian or United States government or any agency or instrumentality thereof the 

 

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securities of which are unconditionally guaranteed as a full faith and credit obligation of such government with maturities of 24 months or less from the date of acquisition;

 

(c)                                  certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition, demand deposits, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any domestic or foreign commercial bank having capital and surplus of not less than $500,000,000 in the case of U.S. banks (or the U.S. Dollar equivalent as of the date of determination in the case of any non-U.S. banks);

 

(d)                                 repurchase obligations for underlying securities of the types described in clauses (b) and (c) above or clause (f) below entered into with any financial institution meeting the qualifications specified in clause (c) above;

 

(e)                                  commercial paper rated at least P-2 by Moody’s or at least A-2 by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency) and in each case maturing within 12 months after the date of creation thereof;

 

(f)                                   marketable short-term money market and similar highly liquid funds having a rating of at least P-2 or A-2 from either Moody’s or S&P, respectively (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency);

 

(g)                                  readily marketable direct obligations issued or directly and fully guaranteed or insured by any state, province, commonwealth or territory of the United States or Canada or any political subdivision or taxing authority thereof having an Investment Grade Rating from either Moody’s or S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency) with maturities of 24 months or less from the date of acquisition;

 

(h)                                 Investments with average maturities of 12 months or less from the date of acquisition in money market funds rated AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or the equivalent thereof) or better by Moody’s (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency);

 

(i)                                     investment funds investing substantially all of their assets in securities of the types described in clauses (a) through (h) above; and

 

(j)                                    solely with respect to any Captive Insurance Subsidiary, any investment that a Captive Insurance Subsidiary is not prohibited to make in accordance with applicable Laws.

 

In the case of Investments made in a country outside the United States or Canada in the ordinary course of business, Cash Equivalents shall also include (i) investments of the type and maturity described in clauses (a) through (j) above of obligors, which Investments or obligors (or the parents of such obligors), if required under such clauses, have the ratings described in such clauses or equivalent ratings from comparable foreign rating agencies and (ii) other short-term investments utilized by the Borrower or Restricted Subsidiaries in accordance with normal investment practices for cash management in investments analogous to the foregoing investments described in clauses (a) through (j) and in this paragraph.

 

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“Cash Management Bank” means any Person that is an Agent, a Lender, a Lead Arranger or an Affiliate of any of the foregoing at the time (or within thirty (30) days after) it initially provides any Cash Management Services pursuant to a Secured Cash Management Agreement (or, in the case of Secured Cash Management Agreements existing on the Closing Date, on the Closing Date), whether or not such Person subsequently ceases to be an Agent, a Lender, a Lead Arranger or an Affiliate of any of the foregoing.

 

“Cash Management Obligations” means obligations owed by the Borrower or any Restricted Subsidiary in respect of or in connection with any Cash Management Services.

 

“Cash Management Services” means any agreement or arrangement to provide cash management services, including automatic clearinghouse, controlled disbursements, information reporting, lockbox, stop payment, wire transfer services, treasury, depository, overdraft, credit card processing, credit or debit card, purchase card, electronic funds transfer, ACH transactions and other cash management arrangements.

 

“Casualty Event” means any event that gives rise to the receipt by the Borrower or any Restricted Subsidiary of any insurance proceeds or condemnation or expropriation awards in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace or repair such equipment, fixed assets or real property.

 

“CDOR Rate” means, for any day, a rate per annum equal to the annual rate of interest that is the rate equal to the average discount rate for Canadian dollar bankers’ acceptances issued on such day for a term equal or comparable to the interest period of the CDOR Loan Rate Loan requested as such rate appears on the “Reuters Screen CDOR Page” (as defined in the International Swaps and Derivatives Association, Inc. 2000, definitions, as modified and amended from time to time or any successor thereto) rounded to the nearest 1/l00th of 1% (with 0.005% being rounded up), as of 10:00 a.m. (Toronto, Ontario time) on such day, or if such day is not a Business Day, then on the immediately preceding Business Day; provided, that, if such rate does not appear on the Reuters Screen CDOR Page as contemplated, then the CDOR Rate on any day shall be the average of the annual discount rate applicable in respect of an issue of Canadian Dollar bankers’ acceptances having a term equal or comparable to the Interest Period of CDOR Loan Rate Loan requested, quoted by Royal Bank of Canada as of 10:00 a.m. (Toronto, Ontario time) on such day, or if such day is not a Business Day, then on the immediately preceding Business Day; provided, that the CDOR Rate shall not be less than 1.00% per annum.

 

“CDOR Rate Loan” means a Loan that bears interest based on the CDOR Rate.

 

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

 

“CFC Holdco” means any Subsidiary that has no material assets other than Equity Interests in (or Equity and Indebtedness of) one or more Subsidiaries that are CFCs.

 

“CFPOA” means the Corruption of Foreign Public Officials Act (Canada), as amended.

 

“Change in Law” means the occurrence, after the Closing Date (or, with respect to the 2018 Incremental Term Loans, the First Amendment Effective Date), of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in implementation thereof and (y) all requests, rules, 

 

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guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States, Canadian or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted, issued or implemented.

 

“Change of Control” means the earliest to occur after the Closing Date of:

 

(a)                                 at any time:

 

(i)             prior to the consummation of a Qualifying IPO, the Permitted Holders ceasing to own, in the aggregate, directly or indirectly, beneficially, at least a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; or

 

(ii)          upon and after the consummation of a Qualifying IPO, (1) any Person (other than a Permitted Holder) or (2) Persons (other than one or more Permitted Holders) constituting a “group”, directly or indirectly, of Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower and the percentage of aggregate ordinary voting power so held is greater than the percentage of the aggregate ordinary voting power represented by the Equity Interests of the Borrower beneficially owned, directly or indirectly, in the aggregate by the Permitted Holders;

 

unless, in the case of either clause (a)(i) or (a)(ii) above, the Permitted Holders have, at such time, the right or the ability by voting power, contract or otherwise to elect or designate for election directors entitled to cast the majority of votes on the board of directors of the Borrower; or

 

(b)                                 any “Change of Control” (or any comparable term) in any document pertaining to any Incremental Equivalent Debt, any Refinancing Equivalent Debt or any other Junior Financing, in each case, the aggregate outstanding principal amount of which is in excess of the Threshold Amount (or any Permitted Refinancing in respect of any of the foregoing).

 

For purposes of this definition, including other defined terms used herein in connection with this definition and notwithstanding anything to the contrary in this definition or any provision of Section 13d-3 of the Exchange Act, (i) “beneficial ownership” shall be as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act as in effect on the date hereof, (ii) the phrase Person or group is within the meaning of Section 13(d) or 14(d) of the Exchange Act, but excluding any employee benefit plan of such Person or group or its subsidiaries and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan, (iii) if any group includes one or more Permitted Holders, the issued and outstanding Equity Interests of the Borrower, directly or indirectly owned by the Permitted Holders that are part of such group shall not be treated as being beneficially owned by such group or any other member of such group for purposes of clause (a) of this definition and (iv) Person or group shall not be deemed to beneficially own Equity Interests to be acquired by such Person or group pursuant to a stock or asset purchase agreement, merger agreement, option agreement, warrant agreement or similar agreement (or voting or option or similar agreement related thereto) until the consummation of the acquisition of the Equity Interests in connection with the transactions contemplated by such agreement.

 

“Citibank” means Citibank, N.A. and its successors.

 

“Claims” has the meaning specified in the definition of “Environmental Claim.”

 

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“Class” when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Initial Term Loans, 2018 Incremental Term Loans or a separate Class of New Term Loans, Refinancing Term Loans, Extended Term Loans or Replacement Term Loans, (b) any Commitment, refers to whether such Commitment is a Commitment in respect of Initial Term Commitments, 2018 Incremental Term Loans or a Commitment in respect of a Class of Loans to be made pursuant to an Incremental Amendment, a Refinancing Amendment, an Extension Amendment, Corrective Term Loan Extension Amendment or an amendment to this Agreement in respect of Replacement Term Loans and (c) any Lender, refers to whether such Lender has a Loan or Commitment with respect to a particular Class of Loans or Commitments and includes, as a separate Class, Term Lenders with Initial Term Loans, Term Lenders with 2018 Incremental Term Loans, Refinancing Term Lenders with Refinancing Term Commitments or Refinancing Term Loans, Extending Term Lenders for a given Term Loan Extension Series of Extended Term Commitments or Extended Term Loans, New Term Lenders with New Term Commitments or New Term Loans, or Lenders with Replacement Term Loans.  Refinancing Term Commitments, Refinancing Term Loans, New Revolving Commitments, New Term Commitments, New Term Loans, Extended Term Commitments, Extended Term Loans, commitments in respect of Replacement Term Loans and Replacement Term Loans that have different terms and conditions shall be construed to be in different Classes.

 

“Clean Up Period” has the meaning specified in Section 8.05.

 

“Closing Date” means the first date on which all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01.

 

“CNI Growth Amount” means, at any date of determination, an amount determined on a cumulative basis equal to 50% of Consolidated Net Income for the period (treated as one accounting period) from the first day of the first full fiscal quarter for which financial statements are delivered pursuant to Section 6.01(a) or (b), as applicable, after the First Amendment Effective Date.

 

“Co-Borrower Joinder Agreement” has the meaning set forth in Section 2.21.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

“Collateral” means all the “Collateral” (or equivalent term) as defined in any Collateral Document, all Material Real Property and any other assets pledged (or purported to be pledged) pursuant to any Collateral Document.

 

“Collateral Agent” means Barclays Bank PLC and any successor thereto.

 

“Collateral and Guarantee Requirement” means, at any time, the requirement that:

 

(a)                                 the Collateral Agent shall have received each Collateral Document required to be delivered (i) on the Closing Date pursuant to Section 4.01(a)(iii) or (ii) on such other dates as required pursuant to Section 6.12 or Section 6.14 or the Collateral Documents, duly executed by each Loan Party party thereto;

 

(b)                                 all Obligations (other than, with respect to any Guarantor, any Excluded Swap Obligations of such Guarantor) shall have been unconditionally guaranteed by the Borrower and each Restricted Subsidiary of the Borrower that is a Canadian Subsidiary or a U.S. Subsidiary (and not an Excluded Subsidiary) (each, a “Guarantor”) and any Restricted Subsidiary of the Borrower that is a Canadian Subsidiary or a U.S. Subsidiary and that Guarantees any Indebtedness incurred by the Borrower pursuant to (i) Junior Financing (other than Junior Financing designated by the Borrower which has an 

 

15

 

aggregate outstanding principal amount for all such Indebtedness so designated since the First Amendment Effective Date not to exceed C$40,000,000) or (ii) any Incremental Equivalent Debt or Refinancing Equivalent Debt (or, in the case of the preceding clause (ii), any Permitted Refinancing thereof) shall be a Guarantor hereunder; provided that no Guarantor will be required to provide a Guarantee of its own direct obligations under (x) any Loan Document or (y) any Secured Hedge Agreement or Secured Cash Management Agreement to which it is a party as a direct obligor;

 

(c)                                  the Obligations (other than, with respect to any Guarantor, any Excluded Swap Obligations of such Guarantor) of each Loan Party shall have been secured by a first-priority security interest (subject to Liens permitted by Section 7.01) in (i) all Equity Interests of each Restricted Subsidiary that is a Wholly Owned Canadian Subsidiary or U.S. Subsidiary (other than a such Subsidiary (x) that is an Immaterial Subsidiary, or (y) described in the following clause (ii)(B)) directly owned by the Borrower or any Guarantor and (ii) 65% of the issued and outstanding voting Equity Interests (and 100% of the issued and outstanding non-voting Equity Interests) of, (A) each Restricted Subsidiary that is a CFC and is directly owned by the Borrower or any Guarantor and (B) each Restricted Subsidiary that is a CFC Holdco (in the case of clauses (A) and (B), other than a Subsidiary that is an Immaterial Subsidiary);

 

(d)                                 except to the extent otherwise provided hereunder or under any Collateral Document, and subject to Liens permitted by Section 7.01 or under any Collateral Document, the Obligations (other than, with respect to any Guarantor, any Excluded Swap Obligations of such Guarantor) shall have been secured by a valid and perfected security interest in substantially all tangible and intangible assets of each Loan Party (including accounts receivable, inventory, equipment, investment property, contract rights, registered intellectual property (including applications for registered intellectual property, but excluding any “intent-to-use” application for registration of a trademark or service mark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d), or an “Amendment to Allege Use” pursuant to Section 1(c), of the Lanham Act, to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such application under applicable federal Laws), other general intangibles, and solely to the extent required by Sections 6.12 and 6.14, Mortgages on Material Real Property and, in each case, proceeds of the foregoing), in each case, with the priority required by the Collateral Documents (to the extent such security interest may be perfected by delivering certificated securities and Material Debt Instruments, solely to the extent required by Sections 6.12 and 6.14, filing any Mortgages in the appropriate filing or land registry office of the county or municipality where the respective mortgaged property is located, filing financing statements under the Uniform Commercial Code or PPSA or making any necessary filings with the United States Patent and Trademark Office or United States Copyright Office or the Canadian Intellectual Property Office); and

 

(e)                                  the Collateral Agent shall have received counterparts of a Mortgage and other documentation required to be delivered, with respect to each Material Real Property, if any, pursuant to Sections 6.12 and 6.14.

 

The foregoing definition shall not require, and the Loan Documents shall not contain any requirements as to, the creation or perfection of pledges of or security interests in, mortgages on, or the obtaining of title insurance, surveys, abstracts or appraisals or taking other actions with respect to, any Excluded Assets.  The Collateral Agent may grant extensions of time for the perfection of security interests in or the delivery of the Mortgages and the obtaining of title insurance, surveys and abstracts with respect to particular assets and the delivery of assets (including extensions beyond the Closing Date for the perfection of security interests in the assets of the Loan Parties) where it reasonably determines, in consultation with the Borrower, that perfection cannot be accomplished without undue effort or expense

 

16

 

by the time or times at which it would otherwise be required by this Agreement or the Collateral Documents.

 

Notwithstanding anything to the contrary, there shall be no requirement for (and no Default under the Loan Documents shall arise out of the lack of) (A) actions in, or required by the Laws of, any jurisdiction other than the United States (or any state thereof or the District of Columbia) or Canada (or any province thereof) in order to create, perfect or maintain any security interests in any assets (including, without limitation, any intellectual property registered outside the United States or Canada and all real property located outside the United States or Canada) (it being understood that there shall be no security agreements, pledge agreements or similar security documents governed by the Laws of any jurisdiction outside the United States or Canada) and (B) actions required to be taken to perfect by “control” with respect to any Collateral (other than delivery of certificated securities required to be pledged in accordance with clause (c) of this definition), including control agreements or similar agreements in respect of any deposit accounts, securities accounts, commodities accounts or other bank accounts.

 

“Collateral Documents” means, collectively, the U.S. Security Agreement, the Canadian Security Agreement, the U.S. Pledge Agreement, the Canadian Pledge Agreement, the Intellectual Property Security Agreements, the Mortgages (if any), each of the mortgages, debentures, charges, collateral assignments, security agreements, pledge agreements or other similar agreements delivered to the Agents and the Lenders pursuant to this Agreement, the Guaranty, and each of the other agreements, instruments or documents executed by a Loan Party that creates or purports to create a Lien or Guarantee in favor of the Collateral Agent for the benefit of the Secured Parties.

 

“Commitment” means a Term Commitment.

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.) as amended from time to time, any successor statute and any regulations promulgated thereunder from time to time.

 

“Competitors” has the meaning specified in the definition of “Disqualified Institution.”

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit C and which certificate shall in any event be a certificate of a Responsible Officer of the Borrower (a) certifying as to whether a Default has occurred and is continuing and, if applicable, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (b) setting forth reasonably detailed calculations, in the case of financial statements delivered under Section 6.01(a), beginning with the financial statements for the fiscal year of the Borrower ending December 31, 2017, of Excess Cash Flow for such fiscal year and (c) in the case of financial statements delivered under Section 6.01(a), setting forth a reasonably detailed calculation of the Net Cash Proceeds received during the applicable period by or on behalf of, the Borrower or any of its Restricted Subsidiaries in respect of any Disposition subject to prepayment pursuant to Section 2.05(b)(ii)(A) and the portion of such Net Cash Proceeds that has been invested or is intended to be reinvested in accordance with Section 2.05(b)(ii)(B).

 

“Consolidated Current Assets” means, as at any date of determination, the total assets of the Borrower and the Restricted Subsidiaries on a consolidated basis that may properly be classified as current assets in conformity with GAAP, excluding cash and Cash Equivalents, amounts related to current or deferred taxes based on income or profits, assets held for sale, loans (permitted) to third parties, pension assets, deferred bank fees and derivative financial instruments.

 

“Consolidated Current Liabilities” means, as at any date of determination, the total liabilities of the Borrower and the Restricted Subsidiaries on a consolidated basis that may properly be classified as 

 

17

 

current liabilities in conformity with GAAP, but excluding (a) the current portion of any Funded Debt, (b) the current portion of interest, (c) accruals for current or deferred taxes based on income or profits, (d) accruals of any costs or expenses related to restructuring reserves or severance, (e) revolving loans, swing line loans and letter of credit obligations under any revolving credit facility, (f) the current portion of any Capitalized Lease Obligation, (g) deferred revenue, (h) liabilities in respect of unpaid earn-outs or other similar acquisition related liabilities, (i) the current portion of any other long-term liabilities, and, furthermore, excluding the effects of adjustments pursuant to GAAP resulting from the application of recapitalization accounting or purchase accounting, as the case may be, in relation to the Original Transaction, the First Amendment Transactions or any consummated acquisition and (j) Non-Cash Compensation Liabilities.

 

“Consolidated Depreciation and Amortization Expense” means, with respect to any Person for any period, the total amount of depreciation, amortization and depletion and accretion expense, including amortization or write-off of intangibles and non-cash organization costs and of deferred financing fees or costs and Capitalized Software Expenditures, of such Person, including the amortization of deferred financing fees or costs for such period on a consolidated basis and otherwise determined in accordance with GAAP and the amortization of OID resulting from the issuance of Indebtedness at less than par, and any write down of assets or asset value carried on the balance sheet.

 

“Consolidated EBITDA” means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period:

 

(a)                                 increased by (without duplication, and as determined in accordance with GAAP to the extent applicable):

 

(i)                                     solely to the extent such amounts were deducted in computing Consolidated Net Income (A) provision for Taxes based on income or profits or capital, plus state, provincial, franchise, property or similar taxes and foreign withholding taxes and foreign unreimbursed value added taxes, of such Person for such period (including, in each case, penalties and interest related to such taxes or arising from tax examinations) deducted in computing Consolidated Net Income and (B) amounts paid to the Borrower or any direct or indirect parent of the Borrower in respect of taxes in accordance with Section 7.06(g); plus

 

(ii)                                  (A) total interest expense of such Person and, to the extent not reflected in such total interest expense, any net losses on hedging obligations or other derivative instruments entered into for the purpose of hedging interest rate risk, and (B) bank fees and costs owed with respect to letters of credit, bankers acceptances and surety bonds, in each case under this clause (B), in connection with financing activities and, in each case under clauses (A) and (B), to the extent the same were deducted in computing Consolidated Net Income; plus

 

(iii)                               Consolidated Depreciation and Amortization Expense of such Person for such period to the extent such expenses were deducted in computing Consolidated Net Income; plus

 

(iv)                              any (A) Original Transaction Expenses, (B) First Amendment Transaction Expenses and (C)(I)  reasonable fees, costs, expenses or charges incurred in connection with (x) any issuance or offering of Equity Interests (including any Qualifying IPO), Investment, acquisition (including any costs incurred in connection with any Permitted Acquisition or any other Investment permitted hereunder after the Closing Date), non-ordinary course Disposition, recapitalization or the issuance, incurrence, redemption, exchange or repayment of Indebtedness (including, with respect to Indebtedness, a refinancing thereof), including any costs and expenses relating to any registration statement, or registered exchange offer, in respect of any Indebtedness 

 

18

 

permitted hereunder, (y) any amendment, waiver, consent or modification to any documentation governing the terms of any transaction described in the immediately preceding subclause (x) or (z) any amendment, waiver, consent or modification to any Loan Document or any other document governing any Indebtedness, in each case under subclauses (x), (y) and (z), whether or not such transaction or amendment, waiver, consent or modification is successful and (II) fees, costs, expenses and charges to the extent payable or reimbursable by third parties, pursuant to indemnification provisions, in each case, deducted in computing Consolidated Net Income; plus

 

(v)                                 to the extent deducted in calculating Consolidated Net Income, any charges, losses or expenses related to signing, retention, relocation, recruiting or completion bonuses or recruiting costs, severance costs, transition costs, curtailments or modifications to pension and post-retirement employee benefit plans (including any settlement of pension liabilities), pre-opening, opening, closing and consolidation costs and expenses with respect to any New Projects, facilities, facility start-up costs, costs and expenses relating to implementation of operational and reporting systems and technology initiatives, costs incurred in connection with product and intellectual property development and new systems design, project start-up costs, integration and systems establishment costs, business optimization expenses or costs (including costs and expenses relating to intellectual property restructurings) and cash restructuring charges, expenses and reserves and expenses attributable to the implementation of cost savings initiatives, costs associated with tax projects/audits and costs consisting of professional consulting or other fees relating to any of the foregoing; plus

 

(vi)                              accretion of asset retirement obligations; plus

 

(vii)                           any other non-cash charges, expenses, losses or items, including any write offs or write downs, reducing such Consolidated Net Income for such period (provided that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, (1) the Borrower may determine not to add back such non-cash charge in the current period and (2) to the extent the Borrower does decide to add back such non-cash charge, the cash payment in respect thereof in such future period shall be subtracted from Consolidated EBITDA to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period); plus

 

(viii)                        the amount of any minority interest expense or non-controlling interest consisting of Subsidiary income attributable to minority equity interests of third parties in any non-Wholly Owned Subsidiary deducted in calculating Consolidated Net Income; plus

 

(ix)                              the amount of fees, out-of-pocket costs, indemnities and expenses paid or accrued in such period to any Permitted Holder or any of their Affiliates to the extent permitted under Section 7.08 and deducted in such period in computing Consolidated Net Income; plus

 

(x)                                 the amount of any net loss from operations expected to be disposed of, abandoned or discontinued within twelve months after the end of such period; plus

 

(xi)                              the amount of “run rate” cost savings, operating expense reductions and synergies related to the Original Transactions, the First Amendment Transactions, any Specified Transactions, any restructurings, cost savings initiatives and other initiatives (without duplication of any amounts added back pursuant to Section 1.08(c) in connection with a Specified Transaction or entry into an Municipal Waste Contract or Put-or-Pay Agreement) projected by the Borrower in good faith to result from actions taken, committed to be taken or expected to be taken no later than twenty-four (24) months after the end of such period (which “run rate” cost savings, operating expense reductions and synergies shall be calculated on a pro forma basis as 

 

19

 

though such “run rate” cost savings, operating expense reductions and synergies had been realized on the first day of the period for which Consolidated EBITDA is being determined and realized during the entirety of such period and each subsequent period through the period ending on the last day of the eighth fiscal quarter commencing after the end of the fiscal quarter in which such pro forma adjustment was originally made, and without duplication of any pro forma adjustment for any such subsequent period that would otherwise be permitted under this clause (xi) with respect to the same cost savings, operating expense reductions and synergies), net of the amount of actual benefits realized during such period from such actions; provided that such “run rate” cost savings, operating expense reductions and synergies are reasonably identifiable and factually supportable (in the good faith determination of the Borrower) (it being understood that pro forma adjustments need not be prepared in compliance with Regulation S-X); plus

 

(xii)                           to the extent reducing such Consolidated Net Income, any costs or expenses incurred by the Borrower or a Restricted Subsidiary pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement or any stock subscription or stockholders agreement, to the extent that such costs or expenses are funded with cash proceeds contributed to the capital of the Borrower or net cash proceeds of issuance of Equity Interests of the Borrower (other than Disqualified Equity Interests), in each case, solely to the extent that such cash proceeds are excluded from the calculation of the Available Amount and have not been used as an Excluded Contribution; plus

 

(xiii)                        to the extent deducted in calculating Consolidated Net Income, Specified Legal Expenses in an amount not to exceed C$5,000,000 for the applicable four quarter period; plus

 

(xiv)                       accruals and reserves that are established or adjusted within 12 months after the closing of any acquisition that are so required as a result of such acquisition in accordance with GAAP, or changes as a result of the adoption or modification of accounting policies, whether effected through a cumulative effect adjustment, restatement or a retroactive application; plus

 

(xv)                          the amount of any loss attributable to a New Project, until the date that is 12 months after the date of completing the construction, acquisition, assembling or creation of such New Project, as the case may be; provided that (a) such losses are reasonably identifiable and factually supportable and certified by a Responsible Officer of the Borrower and (b) losses attributable to such New Project after 12 months from the date of completing such construction, acquisition, assembling or creation, as the case may be, shall not be included in this clause (xv); and

 

(b)                                 decreased by (without duplication, and as determined in accordance with GAAP to the extent applicable) any non-cash gains increasing Consolidated Net Income of such Person for such period, excluding any gains that represent the reversal of any accrual of, or cash reserve for, anticipated cash charges in any prior period (other than such cash charges that have been added back to Consolidated Net Income in calculating Consolidated EBITDA in accordance with this definition).

 

For the avoidance of doubt, Consolidated EBITDA shall be calculated, including pro forma adjustments, in accordance with Section 1.08.

 

“Consolidated First Lien Net Debt” means, as of any date of determination, (a) Consolidated Total Debt of the Borrower and the Restricted Subsidiaries that is secured by a Lien on all or substantially all of the assets or property of the Borrower and the Guarantors constituting Collateral (other than any Indebtedness secured by Liens that are expressly subordinated to the Liens securing the Obligations) minus (b) the aggregate amount of cash and Cash Equivalents of the Borrower and the Restricted 

 

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Subsidiaries as of such date that is not Restricted and cash and Cash Equivalents restricted in favor of (x) any Agent for the benefit of the Secured Parties, (y) any Lender or (z) any lender of Indebtedness for borrowed money that is included in clause (a) above; provided that in calculating the Total Net First Lien Leverage Ratio for the purposes of determining the Available Incremental Amount on any date of determination in respect of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt, in each case incurred as such, the proceeds thereof issued or otherwise incurred on such date shall be excluded from the immediately preceding clause (b); provided further that (and without limiting the application of Section 1.08(e)) to the extent proceeds of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt are to be used to repay Indebtedness (including by repurchase, redemption, retirement, extinguishment, defeasance, discharge, escrow or similar arrangements), the Borrower shall be permitted to give Pro Forma Effect to such repayment of Indebtedness.

 

“Consolidated Interest Expense” means, for any period, the total interest expense of the Borrower and its Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP (excluding any accretion or accrual of discounted liabilities not constituting Indebtedness), plus, to the extent not included in such total interest expense, and to the extent incurred by the Borrower and its Restricted Subsidiaries (determined on a consolidated basis in accordance with GAAP), without duplication:

 

(1) the amortization of debt discount and debt issuance costs; plus

 

(2) the amortization of all fees (including, without limitation, fees with respect to Swap Contracts) payable in connection with the incurrence of Indebtedness; plus

 

(3) interest payable on Capitalized Lease Obligations; plus

 

(4) payments in the nature of interest pursuant to Swap Contracts; plus

 

(5) interest accruing on any Indebtedness of any other Person, to the extent such Indebtedness is guaranteed by, or secured by a Lien on any asset of, the Borrower or any of its Restricted Subsidiaries.

 

“Consolidated Net Debt” means, as of any date of determination, (a) Consolidated Total Debt of the Borrower and the Restricted Subsidiaries minus (b) the aggregate amount of cash and Cash Equivalents of the Borrower and the Restricted Subsidiaries as of such date that is not Restricted and cash and Cash Equivalents restricted in favor of (a) any Agent for the benefit of the Secured Parties, (b) any Lender or (c) any lender of Indebtedness for borrowed money included in Consolidated Total Debt; provided that in calculating the Total Net Leverage Ratio for the purposes of determining the Available Incremental Amount on any date of determination in respect of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt, the proceeds thereof incurred on such date shall be excluded from clause (b); provided further that (and without limiting the application of Section 1.08(e)) to the extent proceeds of any such Indebtedness are to be used to repay Indebtedness (including by repurchase, redemption, retirement, extinguishment, defeasance, discharge, escrow or similar arrangements), the Borrower shall be permitted to give Pro Forma Effect to such repayment of Indebtedness.

 

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

 

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(a)                                 any net after-tax extraordinary, non-recurring or unusual gains or losses, charges or expenses, Original Transaction Expenses and First Amendment Transaction Expenses, severance costs and expenses and one-time compensation charges shall be excluded;

 

(b)                                 the Net Income for such period shall not include the cumulative effect of a change in accounting principles during such period, whether effected through a cumulative effect adjustment or a retroactive application, in each case in accordance with GAAP;

 

(c)                                  effects of adjustments (including the effects of such adjustments pushed down to the Borrower and its Subsidiaries) in such Person’s consolidated financial statements pursuant to GAAP (including in the property and equipment, software, goodwill, intangible assets, deferred revenue and debt line items thereof) resulting from the application of recapitalization accounting or purchase accounting, as the case may be, in relation to any consummated acquisition or the amortization or write-off of any amounts thereof (including any write-off of in process research and development), net of taxes, shall be excluded;

 

(d)                                 any net after-tax income (loss) from disposed, abandoned, transferred, closed or discontinued operations and any net after-tax gains or losses on disposal of disposed, abandoned, transferred, closed or discontinued operations shall be excluded;

 

(e)                                  any net after-tax gains or losses (less all fees and expenses relating thereto) attributable to asset sales or other dispositions or impairments or the sale or other disposition of any Equity Interests of any Person, in each case, other than in the ordinary course of business, as determined in good faith by the Borrower, shall be excluded;

 

(f)                                   the Net Income for such period of any Person that is not a Subsidiary, or is an Unrestricted Subsidiary, or that is accounted for by the equity method of accounting, shall be excluded; provided that the Borrower’s or any Restricted Subsidiary’s equity in the Net Income of such Person or Unrestricted Subsidiary shall be included in the Consolidated Net Income of the Borrower or such Restricted Subsidiary up to the aggregate amount of dividends or distributions or other payments that are actually paid in cash (or to the extent converted into cash) by such Person or Unrestricted Subsidiary to the Borrower or a Restricted Subsidiary in respect of such period;

 

(g)                                  solely for the purpose of determining the Available Amount for application pursuant to Section 7.06(c), the Net Income for such period of any Restricted Subsidiary (other than any Subsidiary Guarantor) shall be excluded to the extent the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of its Net Income is not at the date of determination permitted without any prior governmental approval (which has not been obtained) or, directly or indirectly, by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation applicable to that Restricted Subsidiary or its equity holders, unless such restriction with respect to the payment of dividends or similar distributions has been legally waived; provided that Consolidated Net Income of the Borrower will be increased by the amount of dividends or other distributions or other payments actually paid in cash (or to the extent converted into cash) to the Borrower or a Restricted Subsidiary thereof in respect of such period, to the extent not already included therein;

 

(h)                                 (i) any net unrealized gain or loss (after any offset) resulting in such period from obligations in respect of Swap Contracts and the application of Accounting Standards for Private Enterprises, CPA Handbook - Part II, Section 3856 or any ineffectiveness recognized in earnings related to qualifying hedge transactions or the fair value of changes therein recognized in earnings for derivatives that do not qualify as hedge transactions, in each case, in respect of Swap Contracts, (ii) any net gain or 

 

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loss resulting in such period from currency translation gains or losses related to currency re-measurements of Indebtedness (including the net loss or gain resulting from Swap Contracts for currency exchange risk) and all other foreign currency translation gains or losses, and (iii) any net after-tax income (loss) for such period attributable to the early extinguishment or conversion of (A) Indebtedness, (B) obligations under any Swap Contracts or (C) other derivative instruments and all deferred financing costs written off or amortized and premiums paid or other expenses incurred directly in connection therewith, shall be excluded;

 

(i)                                     any goodwill or impairment charge or asset write-off or write-down, including impairment charges or asset write-offs or write-downs related to intangible assets, long-lived assets, investments in debt and equity securities or as a result of a change in law or regulation, in each case pursuant to GAAP, the amortization of intangibles arising pursuant to GAAP and the amortization of Capitalized Software Expenditures, shall be excluded;

 

(j)                                    any expenses, charges or losses that are covered by indemnification or other reimbursement provisions in connection with any Investment, Permitted Acquisition, acquisitions completed prior to the Closing Date or any sale, conveyance, transfer or other disposition of assets permitted under this Agreement or that are consummated prior to the Closing Date, to the extent actually reimbursed, or, so long as the Borrower has made a determination that a reasonable basis exists for indemnification or reimbursement and only to the extent that such amount is in fact indemnified or reimbursed within 365 days of such determination (with a deduction in the applicable future period for any amount so added back to the extent not so indemnified or reimbursed within such 365 days), shall be excluded;

 

(k)                                 to the extent covered by insurance and actually reimbursed, or, so long as the Borrower has made a determination that a reasonable basis exists that such amount will in fact be reimbursed within 365 days of the date of such determination (with a deduction in the applicable future period for any amount so added back to the extent not so reimbursed within such 365 days), expenses, charges or losses with respect to liability or casualty events shall be excluded;

 

(l)                                     any non-cash compensation charge or expense, including any such charge or expense arising from the grants of stock appreciation or similar rights, stock options, restricted stock or other rights or equity incentive programs shall be excluded;

 

(m)                             any income (loss) attributable to deferred compensation plans or trusts and any non-cash deemed finance charges in respect of any pension liabilities or other provisions or on the revaluation of any benefit plan obligation shall be excluded;

 

(n)                                 proceeds from any business interruption insurance, to the extent not already included in Consolidated Net Income, shall be included;

 

(o)                                 the amount of any expense to the extent a corresponding amount relating to such expense is received in cash by the Borrower and the Restricted Subsidiaries from a Person other than the Borrower or any Restricted Subsidiaries; provided such amount received has not been included in determining Consolidated Net Income, shall be excluded (it being understood that if the amounts received in cash under any such agreement in any period exceed the amount of expense in respect of such period, such excess amounts received may be carried forward and applied against expense in future periods);

 

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(p)                                 any adjustments resulting from the application of Accounting Standards for Private Enterprises, CPA Handbook - Part II, Accounting Guideline 14, or any comparable regulation, shall be excluded; and

 

(q)                                 earn-out and contingent consideration obligations (including adjustments thereof and purchase price adjustments) incurred in connection with any Permitted Acquisition or other permitted Investment, and any acquisitions completed prior to the Closing Date, shall be excluded.

 

“Consolidated Senior Secured Net Debt” means, as of any date of determination, (a) Consolidated Total Debt of the Borrower and the Restricted Subsidiaries that is secured by a Lien on any asset or property of the Borrower or any Guarantor minus (b) the aggregate amount of cash and Cash Equivalents of the Borrower and the Restricted Subsidiaries as of such date that is not Restricted and cash and Cash Equivalents restricted in favor of (x) any Agent for the benefit of the Secured Parties, (y) any Lender or (z) any lender of Indebtedness for borrowed money that is included in clause (a) above; provided that in calculating the Total Net Senior Secured Leverage Ratio for the purposes of determining the Available Incremental Amount on any date of determination in respect of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt, in each case incurred as such, the proceeds thereof issued or otherwise incurred on such date shall be excluded from the immediately preceding clause (b); provided further that (and without limiting the application of Section 1.08(e)) to the extent proceeds of any New Term Loans, New Revolving Commitments or Incremental Equivalent Debt are to be used to repay Indebtedness (including by repurchase, redemption, retirement, extinguishment, defeasance, discharge, escrow or similar arrangements), the Borrower shall be permitted to give Pro Forma Effect to such repayment of Indebtedness.

 

“Consolidated Total Assets” means, as of any date of determination, the net book value of all assets of the Borrower and the Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP, as at the end of the most recently ended fiscal quarter of the Borrower reflected in the Quarterly Financial Statements or the Annual Financial Statements or for which financial statements have been made available (or were required to be made available) pursuant to Section 6.01(a) or 6.01(b).

 

“Consolidated Total Debt” means, as of any date of determination, the aggregate principal amount of Indebtedness of the Borrower and the Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP (but excluding the effects of any discounting of Indebtedness resulting from the application of recapitalization accounting or purchase accounting in connection with any Permitted Acquisition or any other Investment permitted hereunder, acquisitions completed prior to the Closing Date or for any other purpose), consisting of Indebtedness for borrowed money, unreimbursed obligations in respect of drawn letters of credit and Capitalized Lease Obligations; provided that Consolidated Total Debt shall not include Indebtedness in respect of (i) any letter of credit, except to the extent of unreimbursed obligations in respect of any such drawn other letters of credit (provided that any unreimbursed obligations in respect of any such drawn other letters of credit shall not be included as Consolidated Total Debt until three (3) Business Days after such amount is drawn (it being understood that any borrowing, whether automatic or otherwise, to fund such reimbursement shall be included)) and (ii) obligations under Swap Contracts.

 

“Consolidated Working Capital” means, as at any date of determination, the excess of Consolidated Current Assets over Consolidated Current Liabilities; provided that Consolidated Working Capital shall be calculated without giving effect to (w) recapitalization or purchase accounting, (x) any assets or liabilities acquired, assumed, sold or transferred in any acquisition or Disposition (other than a sale of any current assets in the ordinary course of business), (y) changes as a result of the reclassification of items from short-term to long-term and vice versa or (z) changes to Consolidated Working Capital 

 

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resulting from non-cash charges and credits to Consolidated Current Assets and Consolidated Current Liabilities (including, without limitation, derivatives and deferred income tax).

 

“Contract Consideration” has the meaning specified in the definition of “Excess Cash Flow.”

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Contributed EBITDA” means, on any date of calculation, with respect to any Pre-Approved Acquisition, the amount in U.S. Dollars that such Pre-Approved Acquisition contributes to the Consolidated EBITDA of the Borrower (calculated on a Pro Forma Basis assuming such Pre-Approved Acquisition occurred on the first day of the most recent Test Period ended prior to such date of calculation).

 

“Control” has the meaning specified in the definition of “Affiliate.”

 

“Corrective Term Loan Extension Amendment” has the meaning specified in Section 2.17(f).

 

“Co-Managers” means The Bank of Nova Scotia, National Bank of Canada, Canadian Imperial Bank of Commerce and Macquarie Capital (USA) Inc., each in its capacity as co-manager.

 

“Credit Extension” means each Borrowing.

 

“Debtor Relief Laws” means Title 11 of the United States Code (11 U.S.C. § 101 et seq.), the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada) and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, arrangement or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and, in each case, affecting the rights of creditors generally.

 

“Declined Amounts” has the meaning specified in Section 2.05(b)(vii).

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Rate” means an interest rate equal to (a) the Base Rate plus (b) the Applicable Rate applicable to Base Rate Loans plus (c) 2.0% per annum; provided that (i) with respect to a Eurocurrency Rate Loan and CDOR Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan (giving effect to Section 2.02(c)) plus 2.0% per annum and (ii) with respect to a Canadian Prime Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2.0% per annum.

 

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Term Loans required to be funded by it hereunder within two (2) Business Days of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (c) has notified the Borrower, the Administrative Agent or any Lender in writing that it does not intend to comply with its funding obligations hereunder, or generally under other agreements in which it commits to extend credit, or has made a public statement to that effect, (d) has failed, within three (3) Business 

 

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Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower, in a manner reasonably satisfactory to the Administrative Agent or the Borrower, as applicable, that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (d) upon receipt of such written confirmation by the Administrative Agent and the Borrower), (e) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state, provincial or federal regulatory authority acting in such a capacity or (f) has become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (f) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Borrower and each Lender; provided that, for the avoidance of doubt, such a determination by the Administrative Agent shall not be required for a Lender to constitute a Defaulting Lender.

 

“Delayed Draw Commitment” has the meaning specified in the First Amendment.

 

“Delayed Draw Commitment Period” means, the period from the First Amendment Effective Date to the Delayed Draw Commitment Termination Date.

 

“Delayed Draw Commitment Termination Date” means, the earliest to occur of (i) the Delayed Draw Term Loan Expiration Date, (ii) the date on which the Delayed Draw Commitments are reduced to $0 pursuant to Section 2.06 and (iii) the date on which all Delayed Draw Commitments then outstanding have been funded in one or more Borrowings pursuant to Section 2.01(c).

 

“Delayed Draw Funding Date” means, the date of any Borrowing of Delayed Draw Term Loans.

 

“Delayed Draw Term Loan” has the meaning specified in the First Amendment.

 

“Delayed Draw Term Loan Funding Conditions” means, in connection with the funding of Delayed Draw Term Loans on any Delayed Draw Funding Date, each of the conditions precedent to the obligation of the Lenders to make a Delayed Draw Term Loan on a Delayed Draw Funding Date set forth in Section 4.04.

 

“Delayed Draw Term Loan Expiration Date” means October 31, 2018.

 

“Delayed Draw Ticking Fee” has the meaning specified in Section 2.09(a).

 

“Designated Non-Cash Consideration” means the fair market value (as determined in good faith by the Borrower) of non-cash consideration received by the Borrower or a Restricted Subsidiary in connection with a Disposition pursuant to Section 7.05(j) that is designated as Designated Non-Cash Consideration pursuant to a certificate of a Responsible Officer, setting forth the basis of such valuation (which amount will be reduced by the fair market value of the portion of the non-cash consideration

 

26

 

converted to cash or Cash Equivalents following the consummation of the applicable Disposition) (including as a result of a subsequent payment, redemption, retirement, sale or other disposition of such Designated Non-Cash Consideration).

 

“Designated Person” means a person or entity:

 

(a)                                 listed in the annex to, or otherwise subject to the provisions of, the Executive Order;

 

(b)                                 named as a “Specially Designated National and Blocked Person” (“SDN”) on the most current list published by OFAC at its official website or any replacement website or other replacement official publication of such list;

 

(c)                                  in which an entity on the SDN list has 50% or greater ownership interest or that is otherwise controlled by an SDN; or

 

(d)                                 included on Her Majesty’s Treasury’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority.

 

“Discount Prepayment Accepting Lender” has the meaning specified in Section 2.05(a)(v)(B)(2).

 

“Discount Range” has the meaning specified in in Section 2.05(a)(v)(C)(1).

 

“Discount Range Prepayment Amount” has the meaning specified in Section 2.05(a)(v)(C)(1).

 

“Discount Range Prepayment Notice” means a written notice of a Borrower Solicitation of Discount Range Prepayment Offers made pursuant to Section 2.05(a)(v)(C) substantially in the form of Exhibit J or any other form approved by the Administrative Agent and the Borrower.

 

“Discount Range Prepayment Offer” means the irrevocable written offer by a Lender, substantially in the form of Exhibit K or any other form approved by the Administrative Agent and the Borrower, submitted in response to an invitation to submit offers following the Auction Agent’s receipt of a Discount Range Prepayment Notice.

 

“Discount Range Prepayment Response Date” has the meaning specified in Section 2.05(a)(v)(C)(1).

 

“Discount Range Proration” has the meaning specified in Section 2.05(a)(v)(C)(3).

 

“Discounted Loan Prepayment” has the meaning specified in Section 2.05(a)(v)(A).

 

“Discounted Prepayment Determination Date” has the meaning specified in Section 2.05(a)(v)(D)(3).

 

“Discounted Prepayment Effective Date” means in the case of a Borrower Offer of Specified Discount Prepayment, Borrower Solicitation of Discount Range Prepayment Offer or Borrower Solicitation of Discounted Prepayment Offer, eight (8) Business Days following the Specified Discount Prepayment Response Date, the Discount Range Prepayment Response Date or the Solicited Discounted Prepayment Response Date, as applicable, in accordance with Section 2.05(a)(v)(B), Section 

 

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2.05(a)(v)(C) or Section 2.05(a)(v)(D), respectively, unless a shorter period is agreed to between the applicable Borrower Party and the Auction Agent.

 

“Disposition” or “Dispose” means the sale, transfer, license tantamount to a sale, lease or other disposition (including any sale-leaseback transaction and any sale or issuance of Equity Interests in a Restricted Subsidiary) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith; provided that “Disposition” and “Dispose” shall not include any issuance by the Borrower of any of its Equity Interests to another Person.

 

“Disqualified Equity Interests” means any Equity Interest that, by its terms (or by the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Qualified Equity Interests of the Borrower or any direct or indirect parent of the Borrower), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control, initial public offering or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control, initial public offering or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable (other than (i) contingent obligations that by their terms survive and (ii) Obligations under Secured Hedge Agreements and Secured Cash Management Agreements) and the termination of the Commitments), (b) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests of the Borrower or any direct or indirect parent of the Borrower and other than as a result of a change of control, initial public offering or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control, initial public offering or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable (other than (i) contingent obligations that by their terms survive and (ii) Obligations under Secured Hedge Agreements and Secured Cash Management Agreements) and the termination of the Commitments), in whole or in part or (c) is or becomes automatically or at the option of the holder convertible into or exchangeable for Indebtedness or any other Equity Interests that are not Qualified Equity Interests of the Borrower or any direct or indirect parent of the Borrower, in the case of each of clauses (a), (b), and (c), prior to the date that is ninety-one (91) days after the Latest Maturity Date of the Loans at the time of issuance; provided that if such Equity Interests are issued to any employees, other service providers, directors, officers or members of management or pursuant to a plan for the benefit of employees, other service providers, directors, officers or members of management of the Borrower or their respective Subsidiaries or by any such plan to such employees, other service providers, directors, officers or members of management, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower or their respective Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employees’, other service providers’, directors’, officers’ or management members’ termination, death or disability.

 

“Disqualified Institution” means (a) Persons that have been specified in writing by the Borrower to the Lead Arrangers on or prior to the First Amendment Effective Date and Affiliates of the foregoing to the extent such Affiliates are clearly identifiable on the basis of their names (or, to the extent not clearly identifiable, have been specified in writing by the Borrower (i) to the Lead Arrangers prior to the First Amendment Effective Date, or (ii) to the Administrative Agent from time to time after the First Amendment Effective Date), (b) competitors of the Borrower or any of its Subsidiaries that are in the same or a similar line of business as the Borrower and its Subsidiaries that have been specified in writing by the Borrower (i) to the Lead Arrangers prior to the First Amendment Effective Date, or (ii) to the Administrative Agent from time to time after the First Amendment Effective Date (all such Persons under this clause (b), “Competitors” and together with all such Persons under preceding clause (a), “Primary Disqualified Institutions”), (c) Affiliates of Competitors (other than bona fide debt funds or investment 

 

28

 

vehicles (unless otherwise included as a Disqualified Institution by clause (a) above) that are engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of business and which are not managed, sponsored or advised by any Primary Disqualified Institution or any Person controlling, controlled by or under common control with a Primary Disqualified Institution or Affiliate thereof, as applicable, and for which no personnel involved with the investment by such Affiliate makes (or has the right to make or participate with others in making) any investment decisions for a Primary Disqualified Institution) to the extent such Affiliates are clearly identifiable on the basis of their names (or, to the extent not clearly identifiable, have been specified in writing by the Borrower (i) to the Lead Arrangers prior to the First Amendment Effective Date, or (ii) to the Administrative Agent from time to time after the First Amendment Effective Date) and (d) Persons that are not legally entitled to deliver , on the date on which such Person would otherwise become a party to this Agreement, the documentation described in Section 3.01(c)(i) or (c)(iii), as applicable, and documentation described in Section 3.01(c)(ii) indicating an exemption from FATCA withholding; provided that “Disqualified Institutions” shall exclude any Person that the Borrower has designated as no longer being a “Disqualified Institution” by written notice delivered to the Administrative Agent from time to time. For the avoidance of doubt, no retroactive disqualification of the Lenders that later become Disqualified Institutions shall be permitted.

 

“Distressed Agent-Related Person” has the meaning specified in the definition of “Agent-Related Distress Event.”

 

“ECF Payment Amount” has the meaning specified in Section 2.05(b)(i).

 

“ECF Percentage” has the meaning specified in Section 2.05(b)(i).

 

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

 

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

 

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

 

“Effective Date Incremental Term Commitment” has the meaning specified in the First Amendment.

 

“Effective Date Incremental Term Loan” has the meaning specified in the First Amendment.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Sections 10.07(b)(iii) and (v) (subject to such consents, if any, as may be required under Section 10.07(b)(iii)) and that is legally entitled to deliver, on the date on which such Person would otherwise become an assignee, the documentation described in Section 3.01(c)(i) or (c)(iii), as applicable, and documentation described in Section 3.01(c)(ii) indicating an exemption from FATCA withholding; provided that, in any event, Eligible Assignees shall not include (x) any natural person, (y) any Disqualified Institution unless consented to in writing by the Borrower in its sole discretion (which 

 

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consent shall be required regardless of whether a Default shall be continuing), or (z) any Defaulting Lender.

 

“Environment” means ambient air, indoor air, surface water, drinking water, land surface, sediments, and subsurface strata & natural resources such as wetlands, flora and fauna.

 

“Environmental Claim” means any administrative, regulatory or judicial action, suits, demand letter, claim, lien, notice of noncompliance or violation, investigation (other than internal reports prepared by any Loan Party or any of its Subsidiaries) with respect to any Environmental Liability (hereinafter “Claims”), including (i) any and all Claims by governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any Environmental Law and (ii) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief pursuant to any Environmental Law.

 

“Environmental Laws” means Laws relating to pollution and the protection of the Environment or of human health (to the extent related to exposure to Hazardous Materials), including those related to the manufacture, generation, handling, transport, storage, treatment, Release or threatened Release of Hazardous Materials.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities) of any Loan Party or any Restricted Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the Environment or (e) any contract or other written agreement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“Equity Interests” means, with respect to any Person, all of the shares, interests, rights, participations or other equivalents (however designated) of capital stock of (or other ownership or profit interests or units in, including any limited or general partnership interest and any limited liability company membership interest) such Person and all of the warrants, options or other rights for the purchase, acquisition or exchange from such Person of any of the foregoing (including through convertible securities, but excluding debt securities).

 

“Equity Sponsor” means (i) each of (a) GFL Environmental Holdings Inc., (b) BC Partners Advisors L.P. and its Affiliates (including BC European Capital X LP and the other funds, partnerships or other vehicles managed, advised or controlled thereby, together with any entity (directly or indirectly) wholly owned by any such fund, partnership or vehicle, but not including, however, any portfolio operating company of the foregoing), (c) Ontario Teachers’ Pension Plan Board and its Affiliates (including the funds, partnerships or other vehicles managed, advised or controlled thereby, together with any entity (directly or indirectly) wholly owned by any such fund, partnership or vehicle, but not including, however, any portfolio operating company of the foregoing), (d) GIC Private Ltd. and its Affiliates (including the funds, partnerships or other vehicles managed, advised or controlled thereby, together with any entity (directly or indirectly) wholly owned by any such fund, partnership or vehicle, but not including, however, any portfolio operating company of the foregoing) and (e) Padov Holdings Ltd. and its Affiliates and (ii) any successor of any Person identified in clause (i).

 

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

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower or any Guarantor within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any of its ERISA Affiliates from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) the failure to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA), whether or not waived, with respect to a Pension Plan; (d) the failure to make any required contribution to a Multiemployer Plan; (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to a complete or partial withdrawal by the Borrower or any of its ERISA Affiliates from a Multiemployer Plan or notification that a Multiemployer Plan is “insolvent” (within the meaning of Section 4245 of ERISA) or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (f) a failure by the Borrower or any of its ERISA Affiliates to pay when due (after expiration of any applicable grace period) any installment payment with respect to withdrawal liability (within the meaning of Title IV of ERISA); (g) a determination that any Pension Plan is in “at-risk” status (within the meaning of Section 430(i)(4) of the Code or Section 303(i)(4) of ERISA); (h) the filing under Section 4041(c) of ERISA of a notice of intent to terminate a Pension Plan, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination under Section 4041 or Section 4041A of ERISA, or the receipt by the Borrower or any of its ERISA Affiliates from the PBGC of any notice relating to the intention to terminate a Pension Plan or Multiemployer Plan; or (i) the imposition of any liability under Title IV of ERISA with respect to the termination of any Pension Plan or Multiemployer Plan, other than for the payment of PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any of its ERISA Affiliates.

 

“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.

 

“Eurocurrency Rate” means, for any Interest Period:

 

(a)                                 for any Interest Period as to any Eurocurrency Rate Loan, (i) the rate per annum determined by the Administrative Agent to be the offered rate which appears on the page of the Reuters Screen which displays the London interbank offered rate administered by ICE Benchmark Administration Limited (such page currently being the LIBOR01 page) (“LIBOR”) for deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period in Dollars, determined as of approximately 11:00 a.m. (London, England time), two Business Days prior to the commencement of such Interest Period, or (ii) in the event the rate referenced in the preceding clause (i) does not appear on such page or service or if such page or service shall cease to be available, the rate determined by the Administrative Agent to be the offered rate on such other page or other service which displays LIBOR for deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period in Dollars, determined as of approximately 11:00 a.m. (London, England time) two Business Days prior to the commencement of such Interest Period; provided that if LIBOR is quoted under either of the preceding clauses (i) or (ii), but there is no such quotation for the Interest Period elected, LIBOR shall be equal to the Interpolated Rate; provided that in no event shall the Eurocurrency Rate for Initial Term Loans and 2018 Incremental Term Loans be less than 1.00% per annum; and

 

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(b)                                 for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at or about 11:00 a.m., London time, determined two (2) Business Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day;

 

provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further, that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

 

“Eurocurrency Rate Borrowing” means a Borrowing comprised of Eurocurrency Rate Loans.

 

“Eurocurrency Rate Loan” means a Loan that bears interest at a rate based on the applicable Adjusted Eurocurrency Rate (other than a Base Rate Loan).

 

“Event of Default” has the meaning specified in Section 8.01.

 

“Excess Cash Flow” means, for any period, an amount equal to the excess of:

 

(a)                                 the sum, without duplication, of:

 

(i)                                     Consolidated Net Income of the Borrower for such period; plus

 

(ii)                                  an amount equal to the amount of all non-cash charges (including Consolidated Depreciation and Amortization Expense) to the extent deducted in arriving at such Consolidated Net Income, but excluding any such non-cash charges representing an accrual or reserve for potential cash items in any future period and excluding amortization of a prepaid cash item that was paid in a prior period; plus

 

(iii)                               decreases in Consolidated Working Capital for such period (other than any such decreases arising from changes in deferred revenue); plus

 

(iv)                              an amount equal to the aggregate net non-cash loss on Dispositions by the Borrower and the Restricted Subsidiaries during such period (other than Dispositions in the ordinary course of business) to the extent deducted in arriving at such Consolidated Net Income; plus

 

(v)                                 the amount deducted as tax expense in determining Consolidated Net Income to the extent in excess of cash taxes paid or payable in respect of such periods; plus

 

(vi)                              cash receipts in respect of Swap Contracts during such fiscal year to the extent not otherwise included in such Consolidated Net Income; over

 

(b)                                 the sum, without duplication; of:

 

(i)                                     an amount equal to the amount of all non-cash gains or credits (including, to the extent constituting non-cash credits, without limitation, amortization of deferred revenue acquired as a result of any Permitted Acquisition or any permitted Investment) included in arriving at such Consolidated Net Income (but excluding any non-cash gains or credit to the extent representing the reversal of an accrual or reserve described in clause (a)(ii) above) and cash charges, losses or 

 

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expenses excluded by virtue of clauses (a) through (q) of the definition of “Consolidated Net Income”; plus

 

(ii)                                  without duplication of amounts deducted pursuant to clause (xi) below in prior fiscal years, the amount of Capital Expenditures, Capitalized Software Expenditures or acquisitions of IP Rights made in cash during such period by the Borrower or the Restricted Subsidiaries to the extent not financed with long term Indebtedness (other than revolving or intercompany Indebtedness), in each case, of the Borrower and its Subsidiaries; plus

 

(iii)                               the aggregate amount of all principal payments of Indebtedness of the Borrower and the Restricted Subsidiaries (including (A) the principal component of payments in respect of Capitalized Leases, (B) the amount of any scheduled repayment of Loans pursuant to Section 2.07, and (C) the amount of any mandatory prepayment of Term Loans pursuant to Section 2.05(b)(ii) to the extent required due to a Disposition or Casualty Event that resulted in an increase to such Consolidated Net Income and not in excess of the amount of such increase, but excluding (W) all other prepayments of Term Loans (other than those specified in preceding clauses (B) and (C)) and all voluntary prepayments of Refinancing Equivalent Debt and Incremental Equivalent Debt, (X) all prepayments in respect of any revolving credit facility (except, in the case of clause (X), to the extent there is an equivalent permanent reduction in commitments thereunder) and (Y) payments of any Junior Financing, except in each case under this clause (Y) to the extent permitted to be paid pursuant to Section 7.12(a), in each case except to the extent financed with the proceeds of other long term Indebtedness (other than revolving or intercompany Indebtedness) of the Borrower or the Restricted Subsidiaries and, in the case of clause (Y) above, except to the extent made in reliance on clause (b) of the definition of “Available Amount” in any basket); plus

 

(iv)                              an amount equal to the aggregate net non-cash gain on Dispositions by the Borrower and the Restricted Subsidiaries during such period (other than Dispositions in the ordinary course of business) to the extent included in arriving at such Consolidated Net Income and the net cash loss on Dispositions to the extent otherwise added to arrive at Consolidated Net Income; plus

 

(v)                                 increases in Consolidated Working Capital for such period (excluding any such increases to the extent resulting from changes in deferred revenue); plus

 

(vi)                              cash payments by the Borrower and the Restricted Subsidiaries during such period in respect of long-term liabilities of the Borrower and the Restricted Subsidiaries (other than Indebtedness) to the extent such payments are not expensed during such period or are not deducted in calculating Consolidated Net Income; plus

 

(vii)                           without duplication of amounts deducted pursuant to clauses (viii) and (xi) below in prior fiscal years, the amount of Investments made pursuant to Sections 7.02(b), (f) (other than Investments in Restricted Subsidiaries, to the extent made in reliance on clause (ii) thereof (or any modification, replacement, renewal, reinvestment or extension thereof in accordance with clause (iii) thereof)), (i), (m), (n), (s) (other than to the extent funded with Investments pursuant to Section 7.02(n) to the extent the amount of such Investments under Section 7.02(n) were already deducted under this clause (vii)), (u) (other than Investments in Restricted Subsidiaries), (v) (other than Investments in Restricted Subsidiaries), (aa) (other than Investments in Restricted Subsidiaries) and (ff), and the amount of acquisitions made during such period to the extent that such Investments and acquisitions were not financed with the proceeds of other long term 

 

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Indebtedness (other than revolving or intercompany Indebtedness) of the Borrower or the Restricted Subsidiaries; plus

 

(viii)                        the amount of Restricted Payments paid during such period pursuant to Sections 7.06(c), (f), (g), (h), (i) (to the extent of any cash expenditures), (j), (o), and (p) in each case to the extent such Restricted Payments were not financed with the proceeds of other long term Indebtedness (other than revolving or intercompany Indebtedness) of the Borrower or the Restricted Subsidiaries and not made in reliance on clause (b) of the definition of “Available Amount” in any basket; plus

 

(ix)                              [reserved]; plus

 

(x)                                 the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the Borrower and the Restricted Subsidiaries during such period that are made in connection with any payment of Indebtedness to the extent such amounts are not expensed during such period or are not deducted in calculating Consolidated Net Income and such payments of Indebtedness reduced Excess Cash Flow pursuant to clause (b)(iii) above or reduced the mandatory prepayment required by Section 2.05(b)(i); plus

 

(xi)                              without duplication of amounts deducted from Excess Cash Flow in prior periods, at the option of the Borrower, the aggregate consideration required to be paid in cash by the Borrower or any of the Restricted Subsidiaries pursuant to binding contracts (the “Contract Consideration”) entered into prior to or during such period or otherwise budgeted to be paid in cash, in either case, relating to Investments, Permitted Acquisitions, Municipal Waste Contracts, Put-or-Pay Agreements, Capital Expenditures, Capitalized Software Expenditures or acquisitions of intellectual property expected to be consummated or made during the period of four consecutive fiscal quarters of the Borrower following the end of such period; provided that, to the extent the aggregate amount of cash actually utilized to finance such Investments, Permitted Acquisitions, Municipal Waste Contracts, Put-or-Pay Agreements, Capital Expenditures, Capitalized Software Expenditures or acquisitions of intellectual property during such period of four consecutive fiscal quarters is less than the Contract Consideration or amount otherwise budgeted for, the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters; plus

 

(xii)                           the amount of cash taxes paid or tax reserves set aside or payable (without duplication) in such period, to the extent they exceed the amount of tax expense deducted in determining Consolidated Net Income for such period; plus

 

(xiii)                        cash expenditures in respect of Swap Contracts during such fiscal year to the extent not deducted in arriving at such Consolidated Net Income.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Excluded Assets” means any of the following:

 

(a)                                 (i) assets for which the grant of a security interest, therein (A) is prohibited by Law (including, without limitation, financial assistance laws, corporate benefit laws or otherwise), rule, regulation or requires Governmental Authority or similar third party consent or (B) is prohibited by contract permitted hereunder and existing on the Closing Date (and not entered into in contemplation thereof) or, in the case of any Subsidiary acquired after the Closing Date, at the time of acquisition of such Subsidiary (and not entered into in contemplation thereof) or would trigger termination under any 

 

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such permitted contract binding on such assets (in each case, after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code, PPSA or other applicable Laws), or (ii) any lease, license, franchise, charter, authorization, contract or other agreement (including any purchase money security interest, capital lease obligation or other similar arrangement) to the extent a security interest therein is prohibited by or in violation of a term, provision or condition of, or would invalidate or give any other party thereto (other than the Borrower or any Subsidiary) the right to terminate, any such lease, license, franchise, charter, authorization, contract or agreement (in each case, after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code, the PPSA or other applicable Laws in any relevant jurisdiction); provided, however, that the Collateral shall include (and such security interest shall attach) at such time as the contractual prohibition shall no longer be applicable and to the extent severable, shall attach to any portion of any lease, license, franchise, charter, authorization, contract, agreement or other asset not subject to the prohibitions specified above; provided, further, that the exclusions referred to in this clause (a) shall not include any proceeds of any such lease, license, franchise, charter, authorization, contract or agreement the assignment of which is expressly deemed effective under applicable Law notwithstanding such prohibition (unless such proceeds or receivables would independently constitute Excluded Assets);

 

(b)                                 (i) Equity Interests in excess of 65% of the total issued and outstanding voting Equity Interests of (x) a CFC or (y) any CFC Holdco, (ii) Equity Interests in any Person (other than any Subsidiary Guarantor, any Wholly Owned Restricted Subsidiaries of the Borrower or any Subsidiary Guarantor that are Material Subsidiaries), (iii) Equity Interests in any Excluded Subsidiary (other than (A) any Subsidiary that is not a U.S. Subsidiary or Canadian Subsidiary or (B) CFC Holdco or (C) any Subsidiary which is an Excluded Subsidiary solely pursuant to clause (k) of the definition of Excluded Subsidiary), (iv) Equity Interests in partnerships, joint ventures or any non-wholly owned Subsidiaries which cannot be pledged without the consent of one or more third-parties, (v) Equity Interests of any Subsidiary of the Borrower that is a Subsidiary of an Excluded Subsidiary and (vi) Margin Stock;

 

(c)                                  any “intent-to-use” application for registration of a trademark or service mark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d), or an “Amendment to Allege Use” pursuant to Section 1(c), of the Lanham Act, or similar applications pursuant to any applicable Laws in any other applicable jurisdiction, to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such application under applicable Laws;

 

(d)                                 (i) any leasehold interest (including any ground lease interest) in real property (it being agreed that no Loan Party shall be required to deliver landlord or other third party lien waivers, estoppels or collateral access letters), (ii) any fee interest in owned real property (subject to the requirements of Section 6.12 and Section 6.14 with respect to Material Real Property) and (iii) any fixtures affixed to any real property to the extent a security interest in such fixtures may not be perfected by a UCC-1 or PPSA financing statement in the jurisdiction of organization of the applicable Loan Party or jurisdiction where such real property is located, as applicable, or, solely in the case of fixtures affixed to any Material Real Property, to the extent a security interest in such fixtures may not be perfected by the recording of a Mortgage or the filing of a fixture filing in the jurisdiction where such Material Real Property is located; provided that Excluded Assets shall not include any real property subject to a Mortgage or other Material Real Property for which the Collateral Agent has requested a valid and perfected Lien pursuant to Section 6.12 or  Section 6.14;

 

(e)                                  vehicles and other assets subject to certificates of title or ownership and aircraft;

 

(f)                                   non-U.S. and non-Canadian intellectual property (to the extent a security interest therein cannot be perfected by filing a Uniform Commercial Code or PPSA financing statement), in 

 

35

 

relation to U.S. Subsidiaries, letters of credit and letter of credit rights that do not constitute supporting obligations in respect of other Collateral, except to the extent such letter of credit rights may be perfected by the filing of a Uniform Commercial Code financing statement;

 

(g)                                  in relation to U.S. Subsidiaries, commercial tort claims that, in the reasonable determination of the Borrower, are not expected to result in a judgment (or settlement) in excess of C$5,000,000;

 

(h)                                 assets for which the grant of security interest therein would result in material adverse tax or regulatory costs or consequences as reasonably determined by the Borrower in consultation with the Collateral Agent;

 

(i)                                     any preferred stock issued by GFL Holdco (US), LLC;

 

(j)                                    [reserved]; and

 

(k)                                 particular assets as agreed between the Borrower and the Collateral Agent if and for so long as, in the reasonable judgment of the Collateral Agent and the Borrower, the cost, difficulty, burden or consequences of obtaining, perfecting or maintaining a security interest in such assets exceeds the practical benefits to the Lenders afforded thereby; provided, however, that Excluded Assets shall not include any proceeds of any Excluded Assets referred to in clauses (a) through and including (j) above (unless such proceeds would constitute Excluded Assets referred to in any such clause).

 

“Excluded Contribution” means (1) the cash, Cash Equivalents or other assets (valued at their fair market value as determined in good faith by the Borrower) received by the Borrower after the Closing Date from:

 

(a)                                 contributions in respect of Qualified Equity Interests, and

 

(b)                                 the sale (other than to a Subsidiary of the Borrower or to any Subsidiary management equity plan or stock option plan or any other management or employee benefit plan or agreement) of Qualified Equity Interests of the Borrower, plus

 

(2)         the Net Cash Proceeds received by the Borrower or any of its Restricted Subsidiaries from issuances of debt securities or Disqualified Equity Interests incurred or issued by the Borrower or any of its Restricted Subsidiaries that have been converted into or exchanged for Qualified Equity Interests of the Borrower or any direct or indirect parent thereof,

 

in each case, so long as same is designated as Excluded Contributions pursuant to a certificate of a Responsible Officer.

 

“Excluded Subsidiary” means (a) Immaterial Subsidiaries, (b) Unrestricted Subsidiaries, (c) any Subsidiary that is prohibited or restricted by Law, rule, regulation or Contractual Obligation (so long as, in respect to any such Contractual Obligation, such prohibition existed on the Closing Date or, if later, on the date the applicable Subsidiary is acquired and is not incurred in contemplation of such acquisition) from providing a Guaranty or that would require a governmental (including regulatory) consent, approval, license or authorization in order to provide a Guaranty (including, in each case, under any financial assistance, corporate benefit or thin capitalization rule), in each case, for so long as such prohibition or circumstance exists, (d) any Subsidiary that is not a Wholly Owned Subsidiary of the Borrower or any Guarantor, (e) any Subsidiary that is neither a U.S. Subsidiary nor a Canadian Subsidiary, (f) any U.S. Subsidiary that is a Subsidiary of a CFC, (g) any CFC Holdco, (h) any Subsidiary that is a not-for-profit

 

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organization, (i) Captive Insurance Subsidiaries, (j) any Subsidiary that is a special purpose entity for a securitization transaction or a similar special purpose, (k) any Subsidiary with respect to which providing a Guaranty would result in material adverse tax consequences (including as a result of Section 956 of the Code or any similar Law in any applicable jurisdiction) to the Borrower or any of its Subsidiaries as reasonably determined by the Borrower (in consultation with the Administrative Agent) and (l) any other Subsidiary with respect to which, as reasonably determined by the Administrative Agent and the Borrower, the burden or cost of providing a Guaranty outweighs the benefits afforded to the Lenders thereby.

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, and only for so long as, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the U.S. 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 Swap Obligation.  If a Swap Obligation arises under a Master Agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest 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).

 

“Excluded Taxes” means, with respect to any Administrative Agent, any Lender or any other recipient, (i) any Taxes imposed on or measured by such recipient’s net income (however denominated, and including branch profits and similar Taxes) and franchise Taxes (in lieu of net income Taxes) and capital Taxes imposed under the ITA or similar laws of a province or territory in Canada or the Code or similar laws of a state or other taxing jurisdiction in the United States, in each case, imposed by a jurisdiction as a result of (a) such recipient being organized or having its principal office or, in the case of any Lender, its applicable Lending Office in such jurisdiction, or (b) any other present or former connection between such recipient and such jurisdiction, other than any connection arising solely from such recipient having executed or entered into any Loan Document, having delivered, having received payments thereunder or having been a party to, having performed its obligations under, having received or perfected a security interest under, having entered into any other transaction pursuant to and/or having enforced, any Loan Documents, (ii) with respect to any Lender (other than any Lender becoming a party hereto pursuant to a request under Section 3.07), who (a) makes Additional 2018 Incremental Term Loans on the Second Amendment Effective Date or takes Additional 2018 Incremental Term Loans by assignment in connection with the primary syndication thereof on or after the Second Amendment Effective Date, (b) becomes a party hereto (or changes its applicable Lending Office) on or after the Second Amendment Effective Date or (c) acquires or makes any Loans on or after the Second Amendment Effective Date (solely with respect to such Loans), any U.S. federal withholding Tax that is imposed on amounts payable to such Lender pursuant to Laws in effect at the time such Lender becomes a party hereto (or changes its applicable Lending Office), except to the extent that such Lender (or its assignor, if any), immediately prior to the time of designation of a new Lending Office (or assignment), was entitled to receive additional amounts from a Loan Party in respect of such withholding Tax pursuant to this Section 3.01, (iii) any Taxes imposed as a result of the failure of a Lender to comply with the provisions of Section 3.01(b) or Section 3.01(c) or attributable to such recipient’s failure to comply with or arising as a result of a breach of any representation made in Section 3.01(b) or Section 3.01(c), (iv) any Taxes imposed pursuant to FATCA, and (v) any Canadian withholding taxes imposed as a result of (a) any person not dealing at arm’s length (within the meaning of the ITA-) with any Borrower or Guarantor,  or (b) any person being a “specified shareholder” (as defined in subsection 18(5) of the ITA) of the 

 

37

 

Borrower or any Guarantor or not dealing at arm’s length (for the purposes of the Income Tax Act (Canada)) with a “specified shareholder” (as defined in subsection 18(5) of the ITA) of any Borrower or Guarantor.

 

“Executive Order” means the Executive Order No. 13224 of September 23, 2001, entitled Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism.

 

“Existing Administrative Agent” has the meaning specified in the recitals hereto.

 

“Existing Credit Agreement” has the meaning specified in the recitals hereto.

 

“Existing Term Loan Facility” has the meaning specified in Section 2.17(a).

 

“Existing U.S. 2020 Notes” means the 7.875% Senior Notes due 2020 issued pursuant to the indenture by and among the Borrower, as issuer, the guarantors party thereto and Computershare Trust Company, N.A., as trustee, dated as of March 24, 2015, as amended, supplemented or otherwise modified from time to time.

 

“Existing U.S. 2021 Notes” means the 9.875% Senior Notes due 2021 issued pursuant to the indenture by and among the Borrower, as issuer, the guarantors party thereto and Computershare Trust Company, N.A., as trustee, dated as of February 1, 2016, as amended, supplemented or otherwise modified from time to time.

 

“Existing U.S. 2022 Notes” means the 5.625% Senior Notes due 2022 issued pursuant to the indenture by and among the Borrower, as issuer, the guarantors party thereto and Computershare Trust Company, N.A., as trustee, dated as of May 12, 2017, as amended, supplemented or otherwise modified from time to time.

 

“Existing U.S. 2023 Notes” means the 5.375% Senior Notes due 2023 issued pursuant to the indenture by and among the Borrower, as issuer, the guarantors party thereto and Computershare Trust Company, N.A., as trustee, dated as of February 26, 2018, as amended, supplemented or otherwise modified from time to time.

 

“Existing U.S. 2026 Notes” means the 7.00% Senior Notes due 2026 issued pursuant to the indenture by and among the Borrower, as issuer, the guarantors party thereto and Computershare Trust Company, N.A., as trustee, dated as of May 31, 2018, as amended, supplemented or otherwise modified from time to time.

 

“Extended Term Commitment” means one or more commitments hereunder to convert Term Loans under an Existing Term Loan Facility to Extended Term Loans of a given Term Loan Extension Series pursuant to an Extension Amendment.

 

“Extended Term Loans” has the meaning specified in Section 2.17(a).

 

“Extending Term Lender” has the meaning specified in Section 2.17(b).

 

“Extension” means the establishment of an Extension Series by amending a Loan or a Commitment pursuant to Section 2.17 and the applicable Extension Amendment.

 

38

 

“Extension Amendment” means an amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent and the Borrower executed by each of (a) the Borrower, (b) the Administrative Agent and (c) each Lender that agrees to provide any Extended Term Commitments or Extended Term Loans being incurred pursuant thereto, in accordance with Section 2.17.

 

“Extension Minimum Condition” means a condition to consummating any Extension Amendment that a minimum amount (to be determined and specified by the Borrower in its sole discretion in the relevant Extension Request) of any Loans or Commitments or all applicable Class(es) be submitted for Extension.

 

“Extension Request” means a notice to the Administrative Agent setting forth the proposed terms of Extended Term Loans in accordance with Section 2.17(a).

 

“Extension Series” means and includes each Term Loan Extension Series.

 

“Facility” means the Initial Term Loans and all extensions of credit pursuant thereto, the 2018 Incremental Term Loans and all extensions of credit pursuant thereto, any Refinancing Term Loans, any Extended Term Loans, any New Term Loans, New Revolving Commitments or any Replacement Term Loans, as the context may require.

 

“FATCA” means Section 1471 through Section 1474 of the Code as in effect on the date hereof or any amended or successor provision that is substantively comparable and not materially more onerous to comply with, any current or future regulations promulgated thereunder or official interpretations thereof, any agreements entered into pursuant to current Section 1471(b)(1) of the Code (or any amended or successor provision described above), and any intergovernmental agreement with implementing the foregoing and any law, regulation or practice adopted pursuant to any such intergovernmental agreement.

 

“FCPA” means the United States Foreign Corrupt Practices Act of 1977 (Pub. L. No. 95213, §§ 101.104), as amended.

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Citi (or if a successor Administrative Agent has succeeded Citi as Administrative Agent, such other bank as is designated by such Administrative Agent at the time it becomes Administrative Agent) on such day on such transactions as determined by the Administrative Agent.

 

“First Amendment” means that certain First Amendment, dated as of the First Amendment Effective Date, among the Borrower, the other Loan Parties party thereto, the Existing Administrative Agent, the Administrative Agent, the Collateral Agent, the 2018 Incremental Term Lenders, and the other Lenders and Persons party thereto.

 

“First Amendment Effective Date” means May 31, 2018.

 

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“First Amendment Equity Contribution” means the cash equity contribution (in the form of common equity) from the Equity Sponsor and any roll-over equity from certain investors to the Buyer (as defined in the First Amendment) in connection with the First Amendment Transactions.

 

“First Amendment Specified Representations” means those representations and warranties made by the Borrower in Section 5.01(a) (with respect to organizational existence of the Loan Parties only), Section 5.01(b)(ii), Section 5.02(a), Section 5.02(b)(A), Section 5.02(b)(B)(I) (with respect to the Existing U.S. 2022 Notes and the Existing U.S. 2023 Notes only), Section 5.04, Section 5.13, Section 5.16(b), Section 5.18(a) (solely with respect to the use of proceeds of the 2018 Incremental Term Loans being in compliance with the PATRIOT Act), Section 5.18(b) (solely with respect to the use of proceeds of the 2018 Incremental Term Loans), Section 5.18(c) (solely with respect to the use of proceeds of the 2018 Incremental Term Loans) and Section 5.19.

 

“First Amendment Transactions” means, collectively, (a) the First Amendment Transaction (as defined in the First Amendment) and other related transactions contemplated by the First Amendment Transaction Agreement (as defined in the First Amendment), (b) the First Amendment Equity Contribution (as defined in the First Amendment), (c) the First Amendment Refinancing (as defined in the First Amendment), (d) the execution and delivery of the First Amendment and related documents to be entered into on the First Amendment Effective Date, (e) the funding of the 2018 Incremental Term Loans and (f) the payment of the First Amendment Transaction Expenses (as defined in the First Amendment).

 

“First Lien Intercreditor Agreement” means the “pari passu” intercreditor agreement, dated as of the Closing Date, among the Collateral Agent, the Revolving Agent and one or more other Representatives from time to time for holders of applicable Indebtedness that is secured (and permitted hereunder to be secured) on a pari passu basis with the Obligations.

 

“Fixed Charge Coverage Ratio” means, for any period, the ratio of Consolidated EBITDA to Fixed Charges for the Borrower and its Restricted Subsidiaries for such period.

 

“Fixed Charges” means, for any period, the sum, without duplication, of (a) the Consolidated Interest Expense (excluding amortization or write-off of deferred financing costs or debt issuance costs which have been paid) of the Borrower and its Restricted Subsidiaries for such period, whether paid or accrued plus (b) the amount of all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of the Borrower or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Borrower (other than Disqualified Equity Interests) or to the Borrower or a Restricted Subsidiary of the Borrower.

 

“Foreign Casualty Event” has the meaning specified in Section 2.05(b).

 

“Foreign Disposition” has the meaning specified in Section 2.05(b).

 

“Foreign Lender” has the meaning specified in Section 3.01(c)(i).

 

“Foreign Plan” means any retirement benefit or pension plan maintained or contributed to by, or entered into with, the Borrower or any Restricted Subsidiary with respect to any employees employed outside the United States or Canada other than a retirement benefit or pension plan maintained exclusively by a Governmental Authority.

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

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

 

“Funded Debt” means, in respect of any Person, all third-party Indebtedness of such Person for borrowed money that matures more than one year from the date of its creation or matures within one year from such date that is renewable or extendable, at the option of such Person, to a date more than one year from such date or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year from such date, including, to the extent applicable, Indebtedness in respect of the Loans.

 

“GAAP” means (a) generally accepted accounting principles, including to the extent applicable, Canadian accounting standards for private enterprises, as in effect from time to time in Canada, applicable to the relevant period, applied in a consistent manner from period to period or (b) if elected by the Borrower by written notice to the Administrative Agent, IFRS or any accounting principles that are recognized as being generally accepted in the United States (“U.S. GAAP”), as in effect from time to time, applicable to the relevant period, applied in a consistent manner from period to period; provided, however, that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the application thereof (including through conforming changes made consistent with IFRS or U.S. GAAP) on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof (including through conforming changes made consistent with IFRS or U.S. GAAP), then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

“Governmental Authority” means the government of the United States or Canada or any other nation, or of any political subdivision thereof, whether state, local, county, provincial or otherwise 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 (including any supra-national bodies such as the European Union or the European Central Bank and including a Minister of the Crown, Superintendent of Financial Institutions or other comparable authority or agency).

 

“Granting Lender” has the meaning specified in Section 10.07(g).

 

“Guarantee” means, as to any Person, without duplication, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary obligation, (b) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance of such Indebtedness or other monetary obligation, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other monetary obligation, or (d) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided that the term “Guarantee” shall not 

 

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include endorsements for collection or deposit, in either case in the ordinary course of business, or customary and reasonable indemnity obligations in effect on the Closing Date or entered into in connection with any acquisition or Disposition of assets permitted under this Agreement (other than such obligations with respect to Indebtedness).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantors” has the meaning specified in the definition of “Collateral and Guarantee Requirement.”

 

“Guaranty” means (a) the guaranty made by the Guarantors in favor of the Collateral Agent on behalf of the Secured Parties pursuant to clause (b) of the definition of “Collateral and Guarantee Requirement,” substantially in the form of Exhibit F and (b) each other guaranty and guaranty supplement or joinder delivered pursuant to this Agreement or any other Loan Document.

 

“Hazardous Materials” means any substance, pollutant or contaminant material or waste that is regulated, pursuant to or which can give rise to liability under any Environmental Law.

 

“Hedge Bank” means any Person that is an Agent, a Lender, a Lead Arranger or an Affiliate of any of the foregoing at the time (or within thirty (30) days after) it enters into a Secured Hedge Agreement (or, in the case of Secured Hedge Agreements existing on the Closing Date, on the Closing Date), in its capacity as a party to a Secured Hedge Agreement, whether or not such Person subsequently ceases to be an Agent, a Lender, a Lead Arranger or an Affiliate of any of the foregoing.

 

“Hypothecary Representative” has the meaning specified in Section 10.25.

 

“Identified Participating Lenders” has the meaning specified in Section 2.05(a)(v)(C)(3).

 

“Identified Qualifying Lenders” has the meaning specified in Section 2.05(a)(v)(D)(3).

 

“IFRS” means International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor to either such Board, or the SEC, as the case may be), as in effect from time to time.

 

“Immaterial Subsidiaries” means any Restricted Subsidiary with respect to which, as of the last day of the most recently ended Test Period on or prior to the date of determination, Consolidated EBITDA or Consolidated Total Assets attributable to such Restricted Subsidiary for the period of four consecutive fiscal quarters ending on such date does not exceed 2.5% of the Consolidated EBITDA or Consolidated Total Assets of the Borrower and the Restricted Subsidiaries for such period; provided that if the aggregate Consolidated EBITDA or Consolidated Total Assets attributable to Restricted Subsidiaries that are Immaterial Subsidiaries shall exceed 5.0% of Consolidated EBITDA or Consolidated Total Assets of the Borrower and its Restricted Subsidiaries for such four-quarter period, then the Borrower shall re-designate one or more of such Restricted Subsidiaries to not be Immaterial Subsidiaries within twenty (20) Business Days after delivery of the Compliance Certificate for such fiscal quarter such that only Restricted Subsidiaries as shall then have aggregate Consolidated EBITDA and or Consolidated 

 

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Total Assets of 5.0% or less of the Consolidated EBITDA and Consolidated Total Assets of the Borrower and the Restricted Subsidiaries shall constitute Immaterial Subsidiaries.

 

“Incremental Amendment” has the meaning specified in Section 2.14(c).

 

“Incremental Amount Date” has the meaning specified in Section 2.14(c).

 

“Incremental Equivalent Debt” means one or more series of senior unsecured notes or loans, senior secured first lien or junior lien notes or loans, subordinated (secured or unsecured) notes or loans, or secured (first lien or junior lien) or unsecured mezzanine Indebtedness, in the case of securities, whether issued in a public offering, Rule 144A or other private placement or any bridge facility in lieu of the foregoing or otherwise, unsecured or secured by all or a portion of the Collateral on a pari passu (but without regard to control of remedies) or junior basis with the Obligations, which Indebtedness is issued or made in lieu of New Revolving Commitments, New Term Commitments and/or New Term Loans pursuant to an indenture, loan agreement, credit agreement, note purchase agreement or otherwise; provided that (i) the aggregate principal amount of any Incremental Equivalent Debt incurred or issued pursuant to this Agreement shall not, together with the aggregate principal amount of any New Revolving Commitments, New Term Commitments and/or New Term Loans incurred or issued substantially simultaneously with such Incremental Equivalent Debt, exceed the Available Incremental Amount at the time of incurrence or issuance thereof, (ii) such Incremental Equivalent Debt shall not be subject to any Guarantee by any Person other than a Loan Party, (iii) the optional prepayment or redemption provisions and the interest rate (including margin and floors) applicable to any such Incremental Equivalent Debt will be determined by the Borrower and the Persons providing such Incremental Equivalent Debt; provided that, with respect to any Incremental Equivalent Debt that constitutes term loans that are pari passu in right of payment with, and secured by Collateral on a pari passu basis (but without regard to control of remedies) with, the Obligations that would be permitted to be incurred as a New Term Loan pursuant to Section 2.14, if the All-In Yield applicable to any such Incremental Equivalent Debt incurred prior to the first anniversary of the First Amendment Effective Date pursuant to clause (a) of the Available Incremental Amount exceeds the All-In Yield of the Initial Term Loans or the 2018 Incremental Term Loans denominated in the same currency as such Incremental Equivalent Debt at such time by more than 50 basis points, then the interest rate margins for the Initial Term Loans and the 2018 Incremental Term Loans shall be increased to the extent necessary so that the All-In Yield of the Initial Term Loans and the 2018 Incremental Term Loans denominated in the same currency as such Incremental Equivalent Debt is equal to the All-In Yield of such Incremental Equivalent Debt minus 50 basis points; provided that any increase in All-In Yield to any Initial Term Loan or 2018 Incremental Term Loan due solely to the application or imposition of a Eurocurrency Rate or Base Rate floor on any such Incremental Equivalent Debt shall be effected, at the Borrower’s option, (x) through an increase in (or implementation of, as applicable) any Eurocurrency Rate or Base Rate floor applicable to such Initial Term Loan or 2018 Incremental Term Loan, (y) through an increase in the Applicable Rate for such Initial Term Loan or 2018 Incremental Term Loan or (z) any combination of (x) and (y) above, and in each case, solely to the extent that the application or imposition of such floor would cause an increase in the effective interest rate then in effect under the Initial Term Loans or 2018 Incremental Term Loans, (iv) in the case of Incremental Equivalent Debt that is secured, (A) the obligations in respect thereof shall not be secured by any Lien on any asset of the Borrower or any Restricted Subsidiary other than any asset constituting Collateral, (B) [reserved] and (C) such Incremental Equivalent Debt shall be subject to the First Lien Intercreditor Agreement or a Junior Lien Intercreditor Agreement, as appropriate, (v) immediately after the incurrence of such Indebtedness (or, in the case of Indebtedness to be incurred in connection with a Permitted Acquisition or permitted Investment, on the date of the execution of (x) the definitive agreement in connection therewith and (y) any commitment in respect of such Incremental Equivalent Debt), no Event of Default (or, in the case of Indebtedness to be incurred in connection with a Permitted Acquisition or permitted Investment, no Specified Default) exists, (vi) [reserved], (vii) no Incremental

 

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Equivalent Debt (other than any Incremental Equivalent Debt constituting a bridge facility which converts into Indebtedness complying with this clause (vii)) shall mature earlier than the Latest Maturity Date (as of the time of incurrence of such Incremental Equivalent Debt), (viii) no Incremental Equivalent Debt (other than any Incremental Equivalent Debt constituting a bridge facility which converts into Indebtedness complying with this clause (viii)) shall have a Weighted Average Life to Maturity of less than the Weighted Average Life to Maturity as then in effect for any Term Loans outstanding as of the time of incurrence of such Incremental Equivalent Debt (prior to any extension thereto), (ix) any Incremental Equivalent Debt (to the extent pari passu in right of payment with, and secured by all or a portion of the Collateral on a pari passu basis with, the Obligations) may provide for the ability to participate on a pro rata basis or less than pro rata basis in any mandatory repayments or prepayments of principal of Term Loans hereunder and (x) the covenants and events of default applicable to such Incremental Equivalent Debt shall not be, when taken as a whole, materially more favorable, to the holders of such Indebtedness than those applicable to the Term Loans (except for covenants or other provisions applicable only to periods after the Latest Maturity Date) unless such covenants and events of default for such Incremental Equivalent Debt are reflective of market terms and conditions for the type of Indebtedness incurred or issued at the time of issuance or incurrence thereof (in each case, as determined by the Borrower in good faith); provided that that the covenants applicable thereto shall not include any financial maintenance covenant unless such covenant is also added to this Agreement for the benefit of the Lenders; provided, further, that a certificate of the Borrower delivered to the Administrative Agent at least two (2) Business Days prior to the incurrence of such Indebtedness stating that the Borrower has reasonably determined in good faith that such covenants and defaults satisfy the foregoing requirement shall be conclusive evidence that such covenants and defaults satisfy the foregoing requirement unless the Administrative Agent notifies the Borrower within such two (2) Business Day period that it disagrees with such determination (including a reasonably detailed description of the basis upon which it disagrees).

 

“Incremental Facility Closing Date” has the meaning specified in Section 2.14(c).

 

“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)                                 all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)                                 the maximum amount (after giving effect to any prior drawings or reductions that may have been reimbursed) of all outstanding letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created for the account of such Person;

 

(c)                                  net obligations of such Person under any Swap Contract;

 

(d)                                 all obligations of such Person to pay the deferred purchase price of property or services (other than (i) trade accounts payable and accrued expenses payable in the ordinary course of business, (ii) any earn-out obligation until such obligation is not paid after becoming due and payable and (iii) accruals for payroll and other liabilities accrued in the ordinary course of business);

 

(e)                                  indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements and mortgage, industrial revenue bond, industrial development bond and similar financings), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

 

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(f)                                   all Attributable Indebtedness;

 

(g)                                  all obligations of such Person in respect of Disqualified Equity Interests; and

 

(h)                                 all Guarantees of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any Person shall (A) include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, except to the extent such Person’s liability for such Indebtedness is otherwise limited and only to the extent such Indebtedness would be included in the calculation of Consolidated Total Debt (and, in any event, excluding any Capitalized Lease Obligations) and (B) in the case of Non-Loan Parties, exclude loans and advances made by Loan Parties having a term not exceeding 364 days and made in the ordinary course of business.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of Indebtedness of any Person for purposes of clause (e) shall be deemed to be equal to the lesser of (i) the aggregate unpaid amount of such Indebtedness and (ii) the fair market value (as determined by such Person in good faith) of the property encumbered thereby as determined by such Person in good faith.

 

“Indemnified Liabilities” has the meaning specified in Section 10.05.

 

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

 

“Indemnitees” has the meaning specified in Section 10.05.

 

“Independent Financial Advisor” means an accounting, appraisal, investment banking firm or consultant of nationally recognized standing that is, in the good faith judgment of the Borrower, qualified to perform the task for which it has been engaged and that is independent of the Borrower and its Affiliates.

 

“Information” has the meaning specified in Section 10.08.

 

“Initial Borrower” has the meaning specified in the introductory paragraph to this Agreement.

 

“Initial Canadian Term Commitment” means, as to each applicable Term Lender, its obligation to make an Initial Canadian Term Loan to the Borrower pursuant to Section 2.01(a) in an aggregate amount not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 (as in effect on the Closing Date) under the caption “Initial Canadian Term Commitment,” as such amount may be adjusted from time to time in accordance with this Agreement.  The initial aggregate amount of the Initial Canadian Term Commitments is C$130,000,000.

 

“Initial Canadian Term Loan” and “Initial Canadian Term Loans” have the meanings specified in Section 2.01(a).

 

“Initial Term Commitment” means, collectively, the Initial Canadian Term Commitment and the Initial U.S. Term Commitment.

 

“Initial Term Loan” and “Initial Term Loans” have the meanings specified in Section 2.01(b).

 

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“Initial U.S. Term Commitment” means, as to each applicable Term Lender, its obligation to make an Initial U.S. Term Loan to the Borrower pursuant to Section 2.01(b) in an aggregate amount not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 (as in effect on the Closing Date) under the caption “Initial U.S. Term Commitment,” as such amount may be adjusted from time to time in accordance with this Agreement.  The initial aggregate amount of the Initial U.S. Term Commitments is $370,000,000.

 

“Initial U.S. Term Loan” and “Initial U.S. Term Loans” have the meanings specified in Section 2.01(b).

 

“Intellectual Property Security Agreements” means one or more intellectual property security agreements contemplated to be executed and delivered pursuant to the applicable Security Agreements.

 

“Intercompany Note” means any intercompany note substantially in the form of Exhibit I.

 

“Intercreditor Agreements” means each First Lien Intercreditor Agreement and each Junior Lien Intercreditor Agreement.

 

“Interest Payment Date” means, (a) as to any Loan of any Class other than a Base Rate Loan and Canadian Prime Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan was made; provided that if any Interest Period for a Eurocurrency Rate Loan or CDOR Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates with respect to such Eurocurrency Rate Loan or CDOR Rate Loan, as applicable ; and (b) as to any Base Rate Loan or Canadian Prime Rate Loan of any Class, the last Business Day of each March, June, September and December (commencing with the last Business Day of December, 2016), and the Maturity Date of the Facility under which such Loan was made.

 

“Interest Period” means, as to each Eurocurrency Rate Loan and CDOR Rate Loan, the period commencing on the date such Eurocurrency Rate Loan or CDOR Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan or CDOR Rate Loan, as applicable, and ending on the date one, two, three or six months thereafter (in each case, subject to availability), or to the extent consented to by each applicable Lender of such Eurocurrency Rate Loan or CDOR Rate Loan, as applicable, such other period as selected by the Borrower in its Loan Notice; provided that:

 

(a)                                 any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the immediately preceding Business Day;

 

(b)                                 any Interest Period pertaining to a Eurocurrency Rate Loan or CDOR Rate Loan having a duration of less than one month that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

 

(c)                                  no Interest Period shall extend beyond the Maturity Date of the Facility under which such Loan was made.

 

“Interpolated Rate” means, in relation to LIBOR, the rate which results from interpolating on a linear basis between:

 

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(a) the applicable LIBOR for the longest period (for which that LIBOR is available) which is less than the Interest Period of that Loan; and

 

(b) the applicable LIBOR for the shortest period (for which that LIBOR is available) which exceeds the Interest Period of that Loan,

 

each as of approximately 11:00 a.m. (London, England time) two Business Days prior to the commencement of such Interest Period of that Loan.

 

“Investment” means, as to any Person, the acquisition or investment by such Person, by means of (a) the purchase or other acquisition (including without limitation by merger or otherwise) of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person (excluding, in the case of the Borrower and its Subsidiaries, intercompany loans, advances, or Indebtedness having a term not exceeding 364 days and made in the ordinary course of business) or (c) the purchase or other acquisition (in one transaction or a series of transactions, including without limitation by merger or otherwise) of all or substantially all of the property and assets of another Person or assets constituting a business unit, line of business or division of such Person; provided that, in the event that any Investment is made by the Borrower or any Restricted Subsidiary in any Person through substantially concurrent interim transfers of any amount through the Borrower or any Restricted Subsidiaries, then such other substantially concurrent interim transfers shall be disregarded for purposes of Section 7.02.  For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made (which, in the case of any Investment constituting the contribution of an asset or property, shall be based on the Borrower’s good faith estimate of the fair market value of such asset or property at the time such Investment is made)), without adjustment for subsequent changes in the value of such Investment (including any write-downs or write-offs thereof), net of any Returns with respect to such Investment.

 

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

 

“IP Rights” means all rights to intellectual property, whether arising under United States, Canadian, multinational or foreign laws or otherwise, including but not limited to patents, trademarks, service marks, trade names, copyrights, trade dress, logos, domain names, trade secrets, know-how and processes, design rights, social media or mobile identifiers and other intellectual property or proprietary rights therein, inventions (whether or not patentable), franchises, software, database rights, proprietary confidential information, and all applications or registrations for any of the foregoing.

 

“IRS” means the Internal Revenue Service of the United States.

 

“ITA” means the Income Tax Act (Canada) and the regulations promulgated thereunder, as amended from time to time.

 

“Joint Venture” means (a) any Person which would constitute an “equity method investee” of the Borrower or any of the Restricted Subsidiaries and (b) any Person in whom the Borrower or any of the Restricted Subsidiaries beneficially owns any Equity Interest that is not a Subsidiary.

 

“Junior Financing” has the meaning specified in Section 7.12(a).

 

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“Junior Financing Documentation” means any documentation governing any Junior Financing.

 

“Junior Lien Intercreditor Agreement” means a customary “junior lien” intercreditor agreement among the Administrative Agent, the Collateral Agent and one or more Representatives for the holders of applicable Indebtedness that is secured (and permitted hereunder to be secured) on a junior basis to the Obligations in form reasonably satisfactory to the Borrower and the Administrative Agent.

 

“Latest Maturity Date” means, at any date of determination, the latest maturity or expiration date applicable to any Loan or Commitment hereunder at such time, including the latest maturity or expiration date of any Initial Term Loan, 2018 Incremental Term Loan, any New Revolving  Commitment, any New Term Commitment, any New Term Loan, any Refinancing Loan, any Refinancing Term Commitment, any Extended Term Loan, any Extended Term Commitment or any Replacement Term Loan, in each case as extended in accordance with this Agreement from time to time.

 

“Laws” means, collectively, all applicable international, foreign, federal, provincial, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities and executive orders, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority.

 

“LCA Election” has the meaning specified in Section 1.13.

 

“LCA Test Date” has the meaning specified in Section 1.13.

 

“Lead Arrangers” means Citigroup Global Markets Inc., Royal Bank of Canada, Barclays Bank PLC and Bank of Montreal, each in its capacity as a joint lead arranger and joint bookrunner under this Agreement.

 

“Lender” and “Lenders” have the meanings specified in the introductory paragraph to this Agreement and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a “Lender.”  Each Additional Lender shall be a Lender to the extent any such Person has executed and delivered a Refinancing Amendment, an Incremental Amendment or an amendment to this Agreement in respect of Replacement Term Loans, as the case may be, and such Refinancing Amendment, Incremental Amendment or amendment to this Agreement in respect of Replacement Term Loans, as the case may be, shall have become effective in accordance with the terms hereof and thereof, and each Extending Term Lender shall continue to be a Lender.  As of the Closing Date, Schedule 2.01 sets forth the name of each Lender.

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent by not less than five (5) Business Days’ written notice; provided that such Lender, acting through such office, would be legally entitled to deliver the IRS form(s) and other documentation described in Section 3.01(c), as applicable, demonstrating a complete exemption from U.S. federal withholding tax pursuant to Laws in effect on the date on which such Person designates such Lending Office.

 

“Lien” means any mortgage, pledge, exclusive license, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever; provided that in no event shall an operating lease in and of itself be deemed a Lien.  For

 

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purposes of Section 7.01 and the definition of “Consolidated First Lien Net Debt,” assets leased by the Borrower or a Restricted Subsidiary under a Capitalized Lease giving rise to a Capitalized Lease Obligation shall be deemed to be assets of the Borrower or such Restricted Subsidiary subject to a Lien securing such Capitalized Lease Obligation.

 

“Limited Condition Transaction” means any acquisition or Investment permitted by this Agreement, in each case whose consummation is not conditioned on the availability of, or on obtaining, third party financing.

 

“Loan” means an extension of credit by a Lender to the Borrower under Article II in the form of a loan pursuant to any Commitment.

 

“Loan Documents” means, collectively, (a) this Agreement, (b) the Term Notes, (c) any Refinancing Amendment, Incremental Amendment, Extension Amendment or amendment to this Agreement in respect of Replacement Term Loans, (d) the Collateral Documents and (e) any Intercreditor Agreement.

 

“Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Loans or CDOR Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed or authenticated by a Responsible Officer of the Borrower.

 

“Loan Parties” means, collectively, (a) the Borrower and (b) each Guarantor.

 

“Management Equityholders” means any of (i) any current or former director, officer, employee or member of management of the Borrower or any of its Subsidiaries or any direct or indirect parent thereof who, at any time, is an investor in the Borrower or any direct or indirect parent thereof, (ii) any trust, partnership, limited liability company, corporate body or other entity established by any such director, officer, employee or member of management of the Borrower or any of its Subsidiaries (or by any Person described in the succeeding clauses (iii) and (iv), as applicable) to hold an investment in the Borrower or any direct or indirect parent thereof in connection with such Person’s estate or tax planning, (iii) any spouse, parents or grandparents of any such director, officer, employee or member of management of the Borrower or any of its Subsidiaries and any and all descendants of the foregoing, together with any spouse of any of the foregoing Persons, who are transferred an investment in the Borrower or any direct or indirect parent thereof by any such director, officer, employee or member of management of  the Borrower or any of its Subsidiaries in connection with such Person’s estate or tax planning and (iv) any Person who acquires an investment in the Borrower or any direct or indirect parent thereof by will or by the Laws of intestate succession as a result of the death of an employee of the Borrower or any of its Subsidiaries.

 

“Margin Stock” has the meaning set forth in Regulation U of the FRB, or any successor thereto.

 

“Master Agreement” has the meaning specified in the definition of “Swap Contract.”

 

“Material Adverse Effect” means (a) a material adverse effect on the business, assets, financial condition or results of operations of the Borrower and its Restricted Subsidiaries, taken as a whole, (b) a material adverse effect on the material rights and remedies of the Lenders, and the Agents, taken as a 

 

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whole, under any Loan Document and (c) a material adverse effect on the ability of the Loan Parties, taken as a whole, to perform their material payment obligations under the Loan Documents.

 

“Material Debt Instrument” means any physical instrument evidencing obligations in excess of C$5,000,000.

 

“Material Real Property” means any fee-owned real property located in the United States or Canada that is owned by a Loan Party and (x) is set forth on Schedule 1.01B or (y) is acquired after the Closing Date with an individual book value in excess of C$15,000,000 (as determined by the Borrower acting in good faith), except for any such real property that is located in a mortgage tax jurisdiction.

 

“Material Subsidiary” means any Restricted Subsidiary that is not an Immaterial Subsidiary.

 

“Maturity Date” means (i) with respect to the Initial Term Loans that have not been extended pursuant to Section 2.17, the date that is seven (7) years after the Closing Date, (ii) with respect to the 2018 Incremental Term Loans that have not been extended pursuant to Section 2.17, the date that is seven (7) years after the First Amendment Effective Date, (iii) with respect to any Extended Term Loans of a given Term Loan Extension Series, the final maturity date as specified in the applicable Extension Amendment accepted by the respective Lender or Lenders, (iv) with respect to any Refinancing Term Loans, the final maturity date as specified in the applicable Refinancing Amendment, (v) with respect to any New Term Loan or New Revolving Commitments, the final maturity date as specified in the applicable Incremental Amendment and (vi) with respect to Replacement Term Loans, the final maturity date as specified in the applicable amendment to this Agreement in respect of such Replacement Term Loans; provided, in each case, that if such day is not a Business Day, the applicable Maturity Date shall be the Business Day immediately preceding such day.

 

“Maximum Rate” has the meaning specified in Section 10.10.

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

“Mortgage Policies” has the meaning specified in Section 6.14(b)(ii).

 

“Mortgages” means collectively, the deeds of trust, trust deeds, deeds to secure debt, hypothecs, debentures and mortgages made by the Loan Parties in favor or for the benefit of the Collateral Agent on behalf of the Secured Parties in form and substance reasonably satisfactory to the Administrative Agent, executed, delivered and filed, registered or recorded, as applicable, pursuant to Section 6.12 and Section 6.14.

 

“Multiemployer Plan” means any multiemployer plan as defined in Section 4001(a)(3) of ERISA and subject to Title IV of ERISA, to which the Borrower, any Guarantor or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

 

“Municipal Waste Contract” means any contract or franchise agreement with a municipality for waste management services, including collection, hauling, disposal and/or processing services, or any local ordinance granting an exclusive waste management services franchise, including collection, hauling disposal and/or processing services.

 

“Net Cash Proceeds” means:

 

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(a)                                 with respect to the Disposition of any asset by the Borrower or any of the Restricted Subsidiaries or any Casualty Event, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such Disposition or Casualty Event (including any cash and Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received and, with respect to any Casualty Event, any insurance proceeds or condemnation or expropriation awards in respect of such Casualty Event actually received by or paid to or for the account of the Borrower or any of the Restricted Subsidiaries) over (ii) the sum of (A) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness that is secured by the asset subject to such Disposition or Casualty Event and required to be repaid in connection with such Disposition or Casualty Event (other than Indebtedness under the Loan Documents, Incremental Equivalent Debt, Refinancing Equivalent Debt, and any other Indebtedness secured by a Lien that is pari passu with or expressly subordinated to the Lien on the Collateral securing the Obligations), (B) the out-of-pocket fees and expenses (including attorneys’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees) actually incurred by the Borrower or such Restricted Subsidiary in connection with such Disposition or Casualty Event and restoration costs following a Casualty Event, (C) Taxes (including Restricted Payments in respect thereof pursuant to Section 7.06) paid or reasonably estimated to be payable in connection therewith (including Taxes imposed on, or that would be payable upon, the distribution or repatriation of any such Net Cash Proceeds), (D) in the case of any Disposition or Casualty Event by a non-Wholly Owned Restricted Subsidiary, the pro-rata portion of the Net Cash Proceeds thereof (calculated without regard to this clause (D)) attributable to minority interests and not available for distribution to or for the account of the Borrower or a Wholly Owned Restricted Subsidiary as a result thereof, and (E) any reserve for adjustment in respect of (x) the sale price of such asset or assets established in accordance with GAAP and (y) any liabilities associated with such asset or assets and retained by the Borrower or any Restricted Subsidiary after such sale or other disposition thereof, including pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations associated with such transaction, it being understood that “Net Cash Proceeds” shall include the amount of any reversal (without the satisfaction of any applicable liabilities in cash in a corresponding amount) of any reserve described in this clause (E); provided that for purposes of Section 2.05(b) (x) no net cash proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Cash Proceeds unless such net cash proceeds shall exceed C$2,500,000 (and thereafter only net cash proceeds in excess of such amount shall constitute Net Cash Proceeds under this clause (a)) and (y) no such net cash proceeds calculated in accordance with the foregoing realized in any fiscal year shall constitute Net Cash Proceeds under this clause (a) in such fiscal year until the aggregate amount of all such net cash proceeds in such fiscal year shall exceed C$10,000,000 (and thereafter only net cash proceeds in excess of such amount shall constitute Net Cash Proceeds under this clause (a));

 

(b)                                 with respect to the incurrence or issuance of any Indebtedness by the Borrower or any Restricted Subsidiary or any Permitted Equity Issuance by the Borrower or any direct or indirect parent of the Borrower, the excess, if any, of (A) the sum of the cash and Cash Equivalents received in connection with such incurrence or issuance over (B) the investment banking fees, underwriting discounts, commissions, costs and other out-of-pocket expenses and other customary expenses, incurred in connection with such incurrence or issuance; and

 

(c)                                  with respect to any Permitted Equity Issuance by any direct or indirect parent of the Borrower, the amount of cash from such Permitted Equity Issuance contributed to the capital of the Borrower.

 

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“Net Income” means, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP.

 

“New Project” means, (x) each plant, facility, branch, office, transfer station, landfill, convenience site which is either a new plant, facility, branch, office, transfer station, landfill, convenience site or an expansion, relocation, remodeling, refurbishment or substantial modernization of an existing plant, facility, branch, office, transfer station, landfill, convenience site owned by the Borrower or the Restricted Subsidiaries which in fact commences operations and (y) each creation (in one or a series of related transactions) of a, business unit, product line, line of operations or service offering to the extent such business unit, product line, line of operations or service offering is offered or each expansion (in one or series of related transactions) of business into a new market or service or through a new distribution method or channel.

 

“New Refinancing Term Commitments” has the meaning specified in Section 2.15(a).

 

“New Revolving Commitments” has the meaning specified in Section 2.14(a).

 

“New Term Commitments” has the meaning specified in Section 2.14(a).

 

“New Commitments” has the meaning specified in Section 2.14(a).

 

“New Term Lender” means each existing Lender or Additional Lender that provides New Term Loans.

 

“New Term Loans” has the meaning specified in Section 2.14(a).

 

“Non-Bank Certificate” has the meaning specified in Section 3.01(c)(i).

 

“Non-Cash Compensation Liabilities” means any non-cash liabilities recorded in connection with stock-based awards, partnership interest-based awards, awards of profits interests, deferred compensation awards and similar incentive based compensation awards or arrangements.

 

“Non-Consenting Lender” has the meaning specified in the penultimate paragraph of Section 3.07.

 

“Non-Debt Fund Affiliate” means an Affiliate of any Equity Sponsor that is neither the Borrower, a Subsidiary nor an Affiliated Debt Fund.

 

“Non-Loan Party” means any Subsidiary that is not a Loan Party.

 

“Not Otherwise Applied” means, with reference to any amount of net cash proceeds of any transaction or event that is proposed to be applied to a particular use or transaction, that such amount has not previously been (and is not simultaneously being) applied to anything other than that such particular use or transaction.

 

“Obligations” means all (a) advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees and expenses that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest, fees and expenses are allowed claims in 

 

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such proceeding, (b) for purposes of the Collateral Documents and Section 8.03 only, obligations of any Loan Party arising under any Secured Hedge Agreement now existing or hereafter arising and including interest, fees and expenses that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest, fees and expenses are allowed claims in such proceeding and (c) for purposes of the Collateral Documents and Section 8.03 only, obligations under Secured Cash Management Agreements now existing or hereafter arising and including interest, fees and expenses that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest, fees and expenses are allowed claims in such proceeding; provided that in the case of clauses (b) and (c), only to the extent that, and for so long as, the other Obligations with respect to any Guarantor are so secured or guaranteed, and any release of Collateral or Guarantees effected in a manner permitted by this Agreement shall not require the consent of holders of obligations under Secured Hedge Agreements or obligations under Secured Cash Management Agreements; provided further that the Obligations with respect to any Guarantor shall exclude all Excluded Swap Obligations of such Guarantor.  Without limiting the generality of the foregoing, the Obligations of the Loan Parties under the Loan Documents include the obligation (including guarantee obligations) to pay principal, interest, charges, expenses, fees, Attorney Costs, indemnities and other amounts payable by any Loan Party under any Loan Document.

 

“OFAC” has the meaning specified in the definition of “Sanctions Laws and Regulations.”

 

“Offered Amount” has the meaning specified in Section 2.05(a)(v)(D)(1).

 

“Offered Discount” has the meaning specified in Section 2.05(a)(v)(D)(1).

 

“OID” means original issue discount.

 

“Organization Documents” means (a) with respect to any corporation, the certificate or articles of incorporation or amalgamation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. or Canadian jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction).

 

“Original Transaction” means, collectively, (a) the funding of the Initial Term Loans, and the execution and delivery of the Loan Documents entered into, on the Closing Date, (b) the Refinancing, (c) the Caesar Acquisition and the Caesar Repo Transaction, (d) the execution and delivery of the Revolving Credit Agreement and documents in connection therewith on the Closing Date, (e) the consummation of any other transactions in connection with any of the foregoing and (f) the payment of the fees and expenses incurred in connection with any of the foregoing, including the Original Transaction Expenses.

 

“Original Transaction Expenses” means any fees, premiums, expenses and other transaction costs incurred or paid by the Borrower or any of its Subsidiaries or the Equity Sponsor (as defined in the 

 

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Existing Credit Agreement) or any direct or indirect parent of the Borrower in connection with the Original Transaction (including to fund any OID and upfront fees).

 

“Other Applicable Indebtedness” has the meaning specified in Section 2.05(b)(ii)(A).

 

“Other Taxes” has the meaning specified in Section 3.01(d).

 

“Outstanding Amount” means with respect to the Term Loans of any Class, the Canadian Dollar amount or U.S. Dollar amount, as applicable, thereof after giving effect to any borrowings and prepayments or repayments of Term Loans of any Class.

 

“Participant” has the meaning specified in Section 10.07(d).

 

“Participant Register” has the meaning specified in Section 10.07(e).

 

“Participating Lender” has the meaning specified in Section 2.05(a)(v)(C)(2).

 

“PATRIOT Act” has the meaning specified in the definition of “Sanctions Laws and Regulations.”

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan or a Foreign Plan, that is subject to Title IV of ERISA or Section 412 of the Code and is sponsored or maintained by the Borrower, any Guarantor or any ERISA Affiliate or to which the Borrower, any Guarantor or any ERISA Affiliate contributes or has an obligation  to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time in the preceding five plan years.

 

“Permitted Acquisition” has the meaning specified in Section 7.02(i).

 

“Permitted Equity Issuance” means any sale or issuance of any Qualified Equity Interests of the Borrower or any direct or indirect parent of the Borrower, in each case to the extent not prohibited hereunder.

 

“Permitted Exclusive Licenses” has the meaning specified in Section 7.01(j)(i).

 

“Permitted Holder” means any of (i) any Equity Sponsor, (ii) the Management Equityholders, (iii) the Permitted Transferees of any of the foregoing Persons and (iv) any “group” of which any of the foregoing are members; provided that in the case of such “group” and without giving effect to the existence of such “group” or any other “group,” such Persons specified in clauses (i), (ii), and/or (iii) above, collectively, have beneficial ownership, directly or indirectly, of more than 50% of the aggregate ordinary voting power for election of directors represented by the issued and outstanding Equity Interests of the Borrower held, directly or indirectly, by such “group.”

 

“Permitted Junior Secured Refinancing Debt” has the meaning specified in Section 2.15(i).

 

“Permitted Pari Passu Secured Refinancing Debt” has the meaning specified in Section 2.15(i).

 

“Permitted Ratio Debt” means Indebtedness of the Borrower or any Restricted Subsidiary; provided that (a) such Indebtedness is either (i) pari passu or (ii) subordinated in right of payment to the 

 

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Obligations, (b) immediately after giving effect thereto and to the use of the proceeds thereof, (i) no Event of Default shall exist or result therefrom and (ii) (A) if such Indebtedness is secured on a pari passu basis with the Liens securing the Term Loans, the Total Net First Lien Leverage Ratio is less than or equal to either (x) 4.25:1.00 (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination or (y) in the case of any Permitted Ratio Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net First Lien Leverage Ratio immediately prior to the incurrence or issuance of such Permitted Ratio Debt and consummation of such Permitted Acquisition or permitted Investment, (B) if such Indebtedness will rank junior in right of security with respect to the Liens securing the Term Loans, the Total Net Senior Secured Leverage Ratio is less than or equal to either (x) 5.50:1.00 (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination or (y) in the case of any Permitted Ratio Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net Senior Secured Leverage Ratio immediately prior to the incurrence or issuance of such Permitted Ratio Debt and consummation of such Permitted Acquisition or permitted Investment or (C) if such Permitted Ratio Debt is unsecured, (I) the Total Net Leverage Ratio is less than or equal to either (x) 6.75:1.00 (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination or (y) in the case of any Permitted Ratio Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Total Net Senior Secured Leverage Ratio immediately prior to the incurrence or issuance of such Permitted Ratio Debt and consummation of such Permitted Acquisition or permitted Investment or (II) the Fixed Charge Coverage Ratio after giving Pro Forma Effect to the incurrence of such Indebtedness is greater than or equal to either (x) 2.00:1.00 (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination or (y) in the case of any Permitted Ratio Debt incurred or issued, as the case may be, to finance a Permitted Acquisition or permitted Investment, the Fixed Charge Coverage Ratio immediately prior to the incurrence or issuance of such Permitted Ratio Debt and consummation of such Permitted Acquisition or permitted Investment, (c) such Indebtedness is issued on market terms for the type of Indebtedness issued or with covenants that are not more restrictive (taken as a whole) with respect to the Borrower and the Restricted Subsidiaries than the covenants in this Agreement as reasonably determined by the Borrower in good faith; provided that the covenants applicable thereto shall not include any financial maintenance covenant unless such covenant is also added to this Agreement for the benefit of the Lenders; provided, further, that a certificate of the Borrower as to the satisfaction of the conditions described in clause (c) above delivered at least two (2) Business Days prior to the incurrence of such Indebtedness stating that the Borrower has reasonably determined in good faith that such covenants satisfy the foregoing requirements, shall be conclusive unless the Administrative Agent notifies the Borrower within such two (2) Business Day period that it disagrees with such determination (including a reasonably detailed description of the basis upon which it disagrees) and (d) if secured, is secured on a junior basis to the Obligations and to the extent incurred by a Loan Party, (i) such Indebtedness shall only be secured by Collateral and (ii) such Liens are subject to a Junior Lien Intercreditor Agreement; provided that the aggregate principal amount of any Permitted Ratio Debt of Restricted Subsidiaries that are Non-Loan Parties shall not exceed the greater of (A) C$45,000,000 and (B) 1.5% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis).

 

“Permitted Refinancing” means, with respect to any Person, any modification, refinancing, refunding, replacement, renewal or extension of any Indebtedness of such Person; provided that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced, refunded, replaced, renewed or extended except by an amount equal to unpaid accrued interest, fees, premium (including call and tender premiums) thereon, defeasance costs, and fees and expenses incurred (including OID, upfront fees and similar items), in connection with such modification, refinancing, refunding, replacement, renewal or extension and by an amount equal to any existing commitments unutilized thereunder, (b) other than with 

 

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respect to a Permitted Refinancing in respect of Indebtedness permitted pursuant to Section 7.03(b), Section 7.03(e) and Section 7.03(g), such modification, refinancing, refunding, replacement, renewal or extension has a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended, (c) if such Indebtedness being modified, refinanced, refunded, replaced, renewed, or extended is Junior Financing, (i) to the extent such Indebtedness being modified, refinanced, refunded, replaced, renewed, or extended is subordinated in right of payment to the Obligations, such modification, refinancing, refunding, replacement, renewal, or extension is subordinated in right of payment to the Obligations on terms, taken as a whole, at least as favorable to the Lenders, in all material respects, as those contained in the documentation governing the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended, (ii) to the extent such Indebtedness being modified, refinanced, refunded, replaced, renewed, or extended is secured by Liens, (x) such modification, refinancing, refunding, replacement, renewal or extension is unsecured, is not secured by any Liens that do not also secure the Obligations and/or is secured by Liens otherwise permitted under Section 7.01 to the extent the Indebtedness being modified, refinanced, refunded, replaced or extended would have been permitted to be secured by such Lien and (y) to the extent that such Liens are contractually subordinated to the Liens securing the Obligations, such modification, refinancing, refunding, replacement, renewal or extension is either unsecured or is secured (A) by Liens that are contractually subordinated to the Liens securing the Obligations on terms, taken as a whole, at least as favorable to the Lenders, in all material respects, as those contained in the documentation (including any intercreditor or similar agreements) governing the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended or (B) by Liens otherwise permitted under Section 7.01 to the extent the Indebtedness being modified, refinanced, refunded, replaced or extended is then permitted to be secured by such Liens, (iii) to the extent such Indebtedness being modified, refinanced, refunded, replaced, renewed or extended is unsecured, such modification, refinancing, refunding, replacement, renewal or extension shall also be unsecured, (iv) the covenants and defaults of any such modified, refinanced, refunded, replaced, renewed or extended Indebtedness (other than Indebtedness designated by the Borrower with an aggregate original principal amount for all such Indebtedness so designated since the First Amendment Effective Date not to exceed C$40,000,000) are (x) not materially more restrictive with respect to the Borrower and the Restricted Subsidiaries, as reasonably determined by the Borrower in good faith, than the covenants and defaults of the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended or (y) reflective of market terms and conditions for the type of Indebtedness incurred or issued at the time of issuance or incurrence thereof (as determined by the Borrower in good faith); provided that the covenants applicable thereto shall not include any financial maintenance covenant unless such covenant is also added to this Agreement for the benefit of the Lenders; provided, further,  that a certificate of the Borrower delivered to the Administrative Agent at least two (2) Business Days prior to the incurrence of such Indebtedness stating that the Borrower has reasonably determined in good faith that such covenants and defaults satisfy the foregoing requirement shall be conclusive evidence that such covenants and defaults satisfy the foregoing requirement unless the Administrative Agent notifies the Borrower within such two (2) Business Day period that it disagrees with such determination (including a reasonably detailed description of the basis upon which it disagrees) and (v) such modification, refinancing, refunding, replacement, renewal or extension is incurred by the Person who is the obligor of the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended and no additional obligors become liable for such Indebtedness except to the extent such Person guaranteed the Indebtedness being modified, refinanced, refunded, replaced, renewed or extended (or such guarantee would have otherwise been permitted under Section 7.03), and (d) in the case of any secured Indebtedness incurred or issued in a Permitted Refinancing in respect of any Incremental Equivalent Debt, any Permitted Pari Passu Secured Refinancing Debt, any Permitted Junior Secured Refinancing Debt or any Permitted Refinancing in respect of any of the foregoing, in each case, such Indebtedness incurred or issued in such Permitted Refinancing is secured only by assets pursuant to one or more security agreements permitted by and subject to a First Lien

 

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Intercreditor Agreement or a Junior Lien Intercreditor Agreement, as applicable.  Any reference to a Permitted Refinancing in this Agreement or any other Loan Document shall be interpreted to mean (a) a Permitted Refinancing of the subject Indebtedness and (b) any further refinancings constituting a Permitted Refinancing of the Indebtedness resulting from a prior Permitted Refinancing.

 

“Permitted Transferees” means (a) in the case of the Equity Sponsor, (i) any Affiliate of any of the Equity Sponsor (other than any portfolio operating company of any of the foregoing), (ii) any managing director, general partner, limited partner, director, officer or employee of an Equity Sponsor or any Person described in clause (i) above (collectively, the “Sponsor Associates”), (iii) the heirs, executors, administrators, testamentary trustees, legatees or beneficiaries of any Sponsor Associate and (iv) any trust, the beneficiaries of which, or a corporation or partnership, the stockholders or partners of which, include only a Sponsor Associate, his or her spouse, parents, siblings, members of his or her immediate family (including adopted children and step children) and/or direct lineal descendants; and (b) in the case of any Management Equityholder, (i) his or her executor, administrator, testamentary trustee, heirs, legatee or beneficiaries, (ii) his or her spouse, parents, siblings, members of his or her immediate family (including adopted children and step children) and/or direct lineal descendants or (iii) a trust, the beneficiaries of which, or a corporation or partnership, the stockholders or partners of which, include only a Management Equityholder, as applicable, and his or her spouse, parents, siblings, members of his or her immediate family (including adopted and step children) and/or direct lineal descendants.

 

“Permitted Unsecured Refinancing Debt” has the meaning specified in Section 2.15(i).

 

“Person” means any natural person, corporation, limited liability company, unlimited liability company, trust, joint venture, association, company, partnership (including any exempted limited partnership), Governmental Authority or other entity.

 

“Platform” has the meaning specified in the last paragraph of Section 6.02.

 

“Pledge Agreement” means each of the U.S. Pledge Agreement and the Canadian Pledge Agreement.

 

“PPSA” means the Personal Property Security Act (Ontario) in effect from time to time, provided however, that, at any time, if by reason of mandatory provisions of law, any or all of the perfection or priority of the Collateral Agent’s security interest in any item or portion of the Collateral is governed by the PPSA as in effect in a Canadian jurisdiction other than the Province of Ontario, the term “PPSA” shall mean the Personal Property Security Act or such other applicable legislation (including the Civil Code of Quebec) as in effect, at such time, in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

 

“Pre-Approved Acquisition” means one or more purchases or acquisitions of all or substantially all of the property and assets of any person or of assets constituting a business unit, a line of business or division of such person or more than a majority of the equity interest in a person made after April 22, 2018 but prior to the Delayed Draw Commitment Termination Date, in each case in accordance with Section 7.02(i).

 

“Pro Forma Basis” and “Pro Forma Effect” mean, with respect to compliance with any test or covenant or calculation hereunder, or the calculation of Consolidated Total Assets or Consolidated EBITDA hereunder, the determination or calculation of such test, covenant, ratio or Consolidated Total Assets or Consolidated EBITDA (including in connection with Specified Transactions or entry into Municipal Waste Contracts or Put-or-Pay Agreements) in accordance with Section 1.08.

 

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“Pro Rata Share” means, with respect to each Lender under any one or more applicable Facilities or Classes at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Commitment and, if applicable and without duplication, Term Loans of such Lender under the applicable Facility or Facilities (or Class or Classes, as the case may be) at such time and the denominator of which is the amount of the Aggregate Commitments of all Lenders under the applicable Facility or Facilities (or Class or Classes, as the case may be) and, if applicable and without duplication, Term Loans of all Lenders under the applicable Facility or Facilities (or Class or Classes, as the case may be) at such time.

 

“Projected Run Rate EBITDA” means, with respect to any Municipal Waste Contract or Put-or-Pay Agreement for any 12-month period, the Consolidated EBITDA which the Borrower reasonably estimates will be generated by and attributable to the relevant contract for the 12-month period commencing on the first day of the fourth month after the Service Commencement Date for such contract.

 

“Public Lender” has the meaning specified in the last paragraph of Section 6.02.

 

“Put-or-Pay Agreement” means, with respect to a Borrower Party, any put-or-pay volume contract, entered into by any Obligor with a counterparty, pursuant to which the counterparty retains the Borrower Party or the Borrower Party retains the counterparty, to provide waste management services including collection, hauling, disposal or processing services and guarantees a minimum tonnage for such services or payment in lieu of such services.

 

“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.

 

“Qualifying IPO” means any transaction whereby, or upon the consummation of which common Equity Interests of the Borrower (or any direct or indirect parent of the Borrower) are offered or sold (whether through an initial primary underwritten public offering or otherwise) pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act, or pursuant to the equivalent registration documents filed with the equivalent authority in any applicable Canadian or foreign jurisdiction (whether alone or in connection with a secondary public offering).

 

“Qualifying Lender” has the meaning specified in Section 2.05(a)(v)(D)(3).

 

“Quarterly Financial Statements” means the unaudited consolidated balance sheets and related statements of operations and cash flows of the Borrower for the fiscal quarter ended June 30, 2016.

 

“Reference Date” has the meaning specified in the definition of “Available Amount.”

 

“Refinanced Debt” has the meaning specified in Section 2.15(a).

 

“Refinanced Loans” has the meaning specified in Section 2.15(i).

 

“Refinancing” has the meaning specified in the preliminary statements to this Agreement.

 

“Refinancing Amendment” has the meaning specified in Section 2.15(f).

 

“Refinancing Equivalent Debt” has the meaning specified in Section 2.15(i).

 

“Refinancing Facility Closing Date” has the meaning specified in Section 2.15(d).

 

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“Refinancing Lenders” has the meaning specified in Section 2.15(c).

 

“Refinancing Loan Request” has the meaning specified in Section 2.15(a).

 

“Refinancing Term Commitments” has the meaning specified in Section 2.15(a).

 

“Refinancing Term Lender” has the meaning specified in Section 2.15(c).

 

“Refinancing Term Loan” has the meaning specified in Section 2.15(b).

 

“Register” has the meaning specified in Section 10.07(c).

 

“Regulation S-X” means Regulation S-X under the Securities Act.

 

“Rejection Notice” has the meaning specified in in Section 2.05(b)(vii).

 

“Related Indemnified Person” of an Indemnitee means (a) any controlling person or controlled Affiliate of such Indemnitee, (b) the respective directors, officers, members, or employees of such Indemnitee or any of its controlling Persons or controlled Affiliates and (c) the respective agents of such Indemnitee or any of its controlling Persons or controlled Affiliates, in the case of this clause (c), acting at the instructions of such Indemnitee, controlling Person or such controlled Affiliate; provided that each reference to a controlled Affiliate or controlling Person in this definition shall pertain to a controlled Affiliate or controlling Person involved in the negotiation or syndication of the Facilities.

 

“Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into or through the Environment or within, from or into any building, structure, facility, landfill or fixture.

 

“Replaced Term Loans” has the meaning specified in Section 10.01(B)(b).

 

“Replacement Term Loans” has the meaning specified in Section 10.01(B)(b).

 

“Reportable Event” means, with respect to any Pension Plan, any of the events set forth in Section 4043(c) of ERISA or the regulations issued thereunder, other than events for which the thirty (30) day notice period has been waived.

 

“Representative” means, with respect to any series of Indebtedness and any Permitted Refinancing of the foregoing, the trustee, administrative agent, collateral agent, security agent or similar agent or representative under the indenture or agreement pursuant to which such Indebtedness is issued, incurred or otherwise obtained, as the case may be, and each of their successors in such capacities.

 

“Repricing Transaction” means (i) any prepayment or repayment of all or a portion of the Initial Term Loans or the 2018 Incremental Term Loans with the proceeds of, or any conversion or replacement of Initial Term Loans or the 2018 Incremental Term Loans into, any new, converted or replacement tranche of term loans the primary purpose of which is to reduce the All-In Yield of such term loans relative to the All-In Yield of the Initial Term Loans or the 2018 Incremental Term Loans that are so prepaid, repaid or converted but excluding Indebtedness incurred in connection with a Qualifying IPO, Change of Control or Transformative Acquisition and (ii) any amendment to this Agreement the primary purpose of which is to reduce the All-In Yield applicable to the Initial Term Loans or the 2018 

 

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Incremental Term Loans except for a reduction consummated in connection with a Qualifying IPO, Change of Control or Transformative Acquisition.

 

“Request for Credit Extension” means with respect to a Borrowing, conversion or continuation of Term Loans, a Loan Notice.

 

“Required Facility Lenders” means, with respect to any Facility on any date of determination, Lenders having more than 50% of the sum of (i) the Total Outstandings under such Facility and (ii) the aggregate unused Commitments under such Facility; provided that the unused Commitments of, and the portion of the Total Outstandings under such Facility or Facilities held, or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of the Required Facility Lenders; provided, further, that, to the same extent set forth in Section 10.07(i) with respect to determination of Required Lenders, the Loans of any Affiliated Lender shall be excluded for purposes of making a determination of Required Facility Lenders.

 

“Required Lenders” means, as of any date of determination, Lenders having more than 50% of the sum of the (a) Total Outstandings, and (b) aggregate unused Term Commitments; provided that the unused Term Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; provided, further, that the Loans of any Affiliated Lender shall be excluded for purposes of making a determination of Required Lenders to the extent set forth in Section 10.07(i).

 

“Responsible Officer” means the chief executive officer, president, any senior vice president, vice president, chief financial officer, chief operating officer, chief administrative officer, secretary, assistant secretary, controller, treasurer or assistant treasurer or other similar officer or Person performing similar functions of a Loan Party (or, if applicable to any Subsidiary pursuant to local law, director or managing partner or similar official) and, solely for purposes of notices given pursuant to Article II, any other officer of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.  Unless otherwise specified, all references herein to a “Responsible Officer” shall refer to a Responsible Officer of the Borrower.

 

“Restricted” means, when referring to cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries, that such cash or Cash Equivalents (i) appear (or would be required to appear) as “restricted” on a consolidated balance sheet of the Borrower or such Restricted Subsidiary (unless such appearance is related to the Loan Documents (or the Liens created thereunder) or other Indebtedness permitted under Section 7.03 which is permitted to be secured by a Lien on the Collateral) or (ii) are subject to any Lien (other than Liens permitted by Section 7.01); provided that any cash in a trust account of counsel to the Borrower or counsel of a vendor in connection with the deposit of an amount on account of the purchase price for a Permitted Acquisition or permitted Investment shall not be deemed to be Restricted cash.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of the Borrower or any of the Restricted Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to the Borrower’s or any 

 

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Restricted Subsidiary’s equity holders, partners or members (or the equivalent Persons thereof); provided that it is expressly understood and agreed that (i) the payment of compensation in the ordinary course of business to future, present or former officers, directors, members of management or consultants and employees of the Borrower or any Restricted Subsidiary shall be deemed not to be Restricted Payments unless such compensation is made to such officers, directors, members of management or consultants and employees solely in their capacities as holders of Equity Interests in the Borrower or any Restricted Subsidiary and (ii) payments of intercompany indebtedness permitted under this Agreement shall be deemed not to be Restricted Payments.

 

“Restricted Subsidiary” means any Subsidiary of the Borrower other than an Unrestricted Subsidiary.

 

“Return” means, with respect to any Investment, any dividend, distribution, interest, fee, premium, return of capital, repayment of principal, income, profit (from a disposition or otherwise) and any other amount received or realized in respect thereof.

 

“Revolving Agent” means Bank of Montreal, in its capacity as administrative agent and collateral agent under the Revolving Credit Agreement.

 

“Revolving Credit Agreement” means that certain Third Amended and Restated Credit Agreement, dated as of September 30, 2016, among the Borrower, the guarantors party thereto, the financial institutions party thereto, and the Revolving Agent, as amended on October 2, 2017, November 30, 2017 and April 19, 2018 and as may further be amended, restated, supplemented or otherwise modified from time to time.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

“Same Day Funds” means disbursements and payments in immediately available funds.

 

“Sanctions Laws and Regulations” means any sanctions or requirements imposed by, or based upon the obligations or authorities set forth in, the Executive Order, the USA PATRIOT Act of 2001 (the “PATRIOT Act”), the U.S. Trading with the Enemy Act (50 U.S.C. App. §§ 1 et seq.) or any other law or executive order relating to economic or financial sanctions administered by the U.S. Department of the Treasury Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, the Canadian Government (including the Department of Foreign Affairs and International Trade Canada and the Department of Public Safety Canada) or other relevant sanctions authority.

 

“SDN” has the meaning specified in the definition of “Designated Person.”

 

“SEC” means the U.S. Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Second Amendment” means that certain Second Amendment to Credit Agreement, dated as of the Second Amendment Effective Date, among the Borrower, the other Loan Parties party thereto, the Additional 2018 Incremental Term Lenders party thereto, Barclays Bank PLC, as Successor Administrative Agent (as defined therein), Citibank, N.A. as Existing Administrative Agent (as defined therein) and the other parties thereto.

 

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“Second Amendment Effective Date” means [  ], 2018.

 

“Second Amendment Transactions” means, collectively, (a) the Acquisition and other related transactions contemplated by the Merger Agreement, (b) the Equity Contribution (as defined in the Second Amendment), (c) the Second Amendment Refinancing (as defined in the Second Amendment), (d) the execution and delivery of the Second Amendment and related documents to be entered into on the Second Amendment Effective Date, (e) the funding of the Additional 2018 Incremental Term Loans and (f) the payment of the Second Amendment Transaction Expenses (as defined in the Second Amendment).

 

“Secured Cash Management Agreement” means any Cash Management Obligation permitted under Article VII that is entered into by and between the Borrower or any Restricted Subsidiary and any Cash Management Bank.

 

“Secured Hedge Agreement” means any Swap Contract permitted under Article VII that is entered into by and between the Borrower or any Restricted Subsidiary and any Hedge Bank.

 

“Secured Parties” means, collectively, the Agents, the Lenders, each Hedge Bank, each Cash Management Bank, the Supplemental Administrative Agents, the Collateral Agent and each co-agent or sub-agent appointed by the Agents from time to time pursuant to Section 9.05.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Security Agreement” means each of the U.S. Security Agreement and the Canadian Security Agreement.

 

“Security Agreement Supplement” means any supplement required in accordance with the terms of any Security Agreement.

 

“Service Commencement Date” means, with respect to any Municipal Waste Contract or Put-or-Pay Agreement, the date that the provision of the services required under such contract have commenced.

 

“Solicited Discount Proration” has the meaning specified in Section 2.05(a)(v)(D)(3).

 

“Solicited Discounted Prepayment Amount” has the meaning specified in Section 2.05(a)(v)(D)(1).

 

“Solicited Discounted Prepayment Notice” means a written notice of the Borrower of Solicited Discounted Prepayment Offers made pursuant to Section 2.05(a)(v)(D) substantially in the form of Exhibit L.

 

“Solicited Discounted Prepayment Offer” means the irrevocable written offer by each Lender, substantially in the form of Exhibit M, submitted following the Auction Agent’s receipt of a Solicited Discounted Prepayment Notice.

 

“Solicited Discounted Prepayment Response Date” has the meaning specified in Section 2.05(a)(v)(D)(1).

 

“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair or realizable value of the assets of such Person and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise, (b) the present fair saleable value of the property of such Person and its Subsidiaries, on a 

 

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consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured, (c) such Person and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured or due and do not intend to, and do not believe that they will, incur debts or liabilities beyond their ability to pay such debts and liabilities as they mature or become due, and (d) such Person and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital.  The amount of any contingent liability at any time shall be computed as the amount that would reasonably be expected to become an actual and matured liability or due.

 

“SPC” has the meaning specified in Section 10.07(g).

 

“Specified Default” means any Event of Default under Sections 8.01(a) or (f) (solely with respect to the Borrower).

 

“Specified Discount” has the meaning specified in Section 2.05(a)(v)(B)(1).

 

“Specified Discount Prepayment Amount” has the meaning specified in Section 2.05(a)(v)(B)(1).

 

“Specified Discount Prepayment Notice” means a written notice of the Borrower of an offer of Specified Discount prepayment made pursuant to Section 2.05(a)(v)(B) substantially in the form of Exhibit N.

 

“Specified Discount Prepayment Response” means the irrevocable written response by each Lender, substantially in the form of Exhibit O, to a Specified Discount Prepayment Notice.

 

“Specified Discount Prepayment Response Date” has the meaning specified in Section 2.05(a)(v)(B)(1).

 

“Specified Discount Proration” has the meaning specified in Section 2.05(a)(v)(B)(3).

 

“Specified Legal Expenses” means, to the extent not constituting an extraordinary, non-recurring or unusual loss, charge or expense, all attorneys’ and experts’ fees and expenses and all other costs, liabilities (including all damages, penalties, fines and indemnification and settlement payments) and expenses paid or payable in connection with any threatened, pending, completed or future claim, demand, action, suit, proceeding, inquiry or investigation (whether civil, criminal, administrative, governmental or investigative).

 

“Specified Representations” means those representations and warranties made by the Borrower in Section 5.01(a) (with respect to organizational existence of the Loan Parties only), Section 5.01(b)(ii), Section 5.02(a), Section 5.02(b)(A), Section 5.04, Section 5.13, Section 5.18(a) (solely with respect to compliance with the PATRIOT Act and the FCPA), Section 5.18(b), Section 5.18(c) and Section 5.19.

 

“Specified Transaction” means any Investment that results in a Person becoming a Restricted Subsidiary, any designation of a Subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary, any Permitted Acquisition, any Disposition that results in a Restricted Subsidiary ceasing to be a Subsidiary of the Borrower or constitutes a Disposition of a line of business or division that has an identifiable earnings stream, any Investment constituting an acquisition of assets constituting a business unit, line of business or division of another Person or any Disposition of a business unit, line of business or division of 

 

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the Borrower or a Restricted Subsidiary, in each case, whether by merger, consolidation, amalgamation or otherwise, or any incurrence or repayment of Indebtedness, including any New Term Loans, any New Revolving Commitments, any Restricted Payment, any New Project or other event (other than the incurrence or repayment of Indebtedness under any revolving credit facility in the ordinary course of business for working capital purposes), that by the terms of this Agreement requires Consolidated EBITDA, Consolidated Total Assets or a financial ratio or test to be calculated on a “Pro Forma Basis” or after giving “Pro Forma Effect.”

 

“Sponsor Associates” has the meaning specified in the definition of “Permitted Transferee.”

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the FRB to which the Administrative Agent is subject with respect to the Adjusted Eurocurrency Rate, for Eurocurrency Rate funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the FRB).  Such reserve percentages shall include those imposed pursuant to such Regulation D.  Eurocurrency Rate Loans shall be deemed to constitute Eurocurrency Rate funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Submitted Amount” has the meaning specified in Section 2.05(a)(v)(C)(1).

 

“Submitted Discount” has the meaning specified in Section 2.05(a)(v)(C)(1).

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity (excluding, for the avoidance of doubt, charitable foundations) of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Subsidiary Guarantor” means any Guarantor other than the Borrower.

 

“Supplemental Administrative Agent” and “Supplemental Administrative Agents” have the meanings specified in Section 9.12(a).

 

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master 

 

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agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined in good faith by the Borrower.

 

“Taxes” has the meaning specified in Section 3.01(a).

 

“Term Commitment” means, (x) a 2018 Incremental Term Commitment or (y) as to each Term Lender, its obligation to make a Term Loan to the Borrower, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender under this Agreement, as such commitment may be (a) reduced from time to time pursuant to Section 2.06 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Assumption, (ii) an Incremental Amendment, (iii) a Refinancing Amendment, (iv) an Extension Amendment or (v) an amendment to this Agreement in respect of Replacement Term Loans.  The amount of each Lender’s Initial Term Commitment as of the Closing Date is set forth on Schedule 2.01 under the caption “Initial Term Commitment”; and the amount of each Lender’s other Term Commitments shall be  as set forth in the Assignment and Assumption, Incremental Amendment, Refinancing Amendment, Extension Amendment or amendment to this Agreement in respect of Replacement Term Loans pursuant to which such Lender shall have assumed its Term Commitment, as the case may be, as such amounts may be adjusted from time to time in accordance with this Agreement.

 

“Term Lender” means, at any time, any Lender that has a Term Commitment or a Term Loan at such time.

 

“Term Loan” means (i) the Initial Term Loans, (ii) the 2018 Incremental Term Loans and (iii) any New Term Loan, Refinancing Term Loan, Extended Term Loan or Replacement Term Loan effected pursuant to Section 2.14, Section 2.15, Section 2.17 or Section 10.01(B)(c) as applicable, and the related Incremental Amendment, Refinancing Amendment, Extension Amendment or amendment to this Agreement in respect of Replacement Term Loans.

 

“Term Loan Extension” means any establishment of Extended Term Commitments and Extended Term Loans pursuant to Section 2.17 and the applicable Extension Amendment.

 

“Term Loan Extension Election” has the meaning specified in Section 2.17(b).

 

“Term Loan Extension Series” has the meaning specified in Section 2.17(a).

 

“Term Loan Increase” has the meaning specified in Section 2.14(a).

 

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“Term Note” means a promissory note of the Borrower payable to any Term Lender or its registered assigns, in substantially the form of Exhibit D hereto, evidencing the aggregate Indebtedness of the Borrower to such Term Lender resulting from the Term Loans held by such Term Lender.

 

“Termination Date” has the meaning specified in Section 9.11(a).

 

“Test Period” in effect at any time means the most recent period of four consecutive fiscal quarters of the Borrower ended on or prior to such time (taken as one accounting period) in respect of which financial statements for each quarter or fiscal year in such period have been or are required to be delivered pursuant to Section 6.01(a) or (b), as applicable.  A Test Period may be designated by reference to the last day thereof (i.e., the “December 31, 2016 Test Period” refers to the period of four consecutive fiscal quarters of the Borrower ended December 31, 2016), and a Test Period shall be deemed to end on the last day thereof.

 

“Threshold Amount” means C$50,000,000.

 

“Total Net First Lien Leverage Ratio” means, with respect to any Test Period, the ratio of (a) Consolidated First Lien Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA of the Borrower for such Test Period.

 

“Total Net Leverage Ratio” means, with respect to any Test Period, the ratio of (a) Consolidated Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA of the Borrower for such Test Period.

 

“Total Net Senior Secured Leverage Ratio” means, with respect to any Test Period, the ratio of (a) Consolidated Senior Secured Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA of the Borrower for such Test Period.

 

“Total Outstandings” means the aggregate Outstanding Amount of all Loans.

 

“Trade Date” has the meaning specified in Section 10.07(b)(i)(B).

 

“TransForce Acquisition” means the acquisition by the Borrower from TFI Holdings Inc. of all of the outstanding shares of Services Matrec Inc. and of the other indirect wholly-owned Subsidiary companies of TFI Holdings Inc. comprising the solid waste division of TransForce Inc. pursuant to the TransForce Share Purchase Agreement.

 

“TransForce Share Purchase Agreement” means the share purchase agreement made the 28th day of October 2015 between TFI Holdings Inc., as vendor, the Borrower, as purchaser, and TransForce Inc., as vendor’s guarantor, relating to the TransForce Acquisition, as amended on February 1, 2016.

 

“Transformative Acquisition” means any acquisition by the Borrower or any Restricted Subsidiary that is either (a) not permitted by the terms of this Agreement immediately prior to the consummation of such acquisition or (b) permitted by the terms of this Agreement immediately prior to the consummation of such acquisition, but would not provide the Borrower and its Restricted Subsidiaries with adequate flexibility under the this Agreement for the continuation and/or expansion of the combined operations following such consummation, as determined by the Borrower acting in good faith.

 

“Type” means, with respect to a Loan, its character as a Base Rate Loan, Canadian Prime Rate Loan, CDOR Rate Loan or a Eurocurrency Rate Loan.

 

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“Uniform Commercial Code” means the Uniform Commercial Code or any successor provision thereof as the same may from time to time be in effect in the State of New York or the Uniform Commercial Code or any successor provision thereof (or similar code or statute) of another jurisdiction, to the extent it may be required to apply to any item or items of Collateral.

 

“United States” and “U.S.” mean the United States of America.

 

“Unrestricted Subsidiary” means any Subsidiary of the Borrower designated by the Borrower as an Unrestricted Subsidiary pursuant to Section 6.15 subsequent to the date hereof, in each case, until such Person ceases to be an Unrestricted Subsidiary of the Borrower in accordance with Section 6.15 or ceases to be a Subsidiary of the Borrower.

 

“U.S. Dollar” and “$” mean lawful money of the United States.

 

“U.S. Lender” has the meaning specified in Section 3.01(c)(iv).

 

“U.S. Loan Party” means a Loan Party or other Subsidiary of the Borrower that is a U.S. Person.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“U.S. Pledge Agreement” means, collectively, one or more Securities Pledge Agreements executed by the U.S. Loan Parties party thereto, together with any supplemental pledge agreement executed and delivered pursuant to Section 6.12, as amended, restated amended and restated, supplemented or otherwise modified from the time to time.

 

“U.S. Security Agreement” means, collectively, the U.S. Security Agreement executed by the Loan Parties party thereto, substantially in the form of Exhibit G-1, together with any Security Agreement Supplement executed and delivered pursuant to Section 6.12, as amended, restated amended and restated, supplemented or otherwise modified from the time to time.

 

“U.S. Subsidiary” means any Subsidiary that is organized under the Laws of the United States, any state thereof or the District of Columbia.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining scheduled installment, sinking fund, serial maturity or other required scheduled payments of principal, including payment at final scheduled maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment by (b) the then outstanding principal amount of such Indebtedness; provided that for purposes of determining the Weighted Average Life to Maturity of any Indebtedness that is being modified, refinanced, refunded, renewed, replaced or extended, the effects of any prepayments or amortization made on such Indebtedness prior to the date of the applicable modification, refinancing, refunding, renewal, replacement or extension shall be disregarded.

 

“Wholly Owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (x) director’s qualifying shares and (y) nominal shares issued to foreign nationals to the extent required by applicable Laws) are owned by such Person and/or by one or more wholly owned Subsidiaries of such Person.

 

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“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

Section 1.02                            Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)                                 The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.

 

(b)                                 (i)                                     The words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

 

(ii)                                  References in this Agreement and any other Loan Document to the introductory paragraph, preliminary statements, an Exhibit, Schedule, Article, Section, clause or sub-clause refer (A) to the appropriate introductory paragraph, preliminary statements, Exhibit or Schedule to, or Article, Section, clause or sub-clause in, this Agreement or (B) to the extent such references are not present in this Agreement, to the Loan Document in which such reference appears.

 

(iii)                               The terms “include,” “includes” and “including” are by way of example and not limitation.

 

(iv)                              The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

 

(v)                                 The words “assets” and “property” shall be construed to have the same meaning and effect.

 

(vi)                              The word “or” is not exclusive.

 

(c)                                  In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”; and the word “through” means “to and including.”

 

(d)                                 Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

Section 1.03                            Accounting Terms.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, except as otherwise specifically prescribed herein.

 

Section 1.04                            Rounding.  Except as expressly otherwise provided herein, any financial ratios required to be maintained by the Borrower pursuant to this Agreement (or required to be satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of 

 

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places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

Section 1.05                            References to Agreements, Laws, Etc.  Unless otherwise expressly provided herein, (a) references to Organization Documents, documents (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, amendments and restatements, extensions, supplements, replacements, refinancings and other modifications thereto, but only to the extent that such amendments, restatements, amendments and restatements, extensions, supplements, replacements, refinancings, and other modifications are not prohibited by any Loan Document; (b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law and (c) references to any Person shall include such Person’s successors and permitted assigns.

 

Section 1.06                            Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

Section 1.07                            Certain Calculations.

 

(a)                                 If more than one action occurs on any given date the permissibility or the taking of which is determined hereunder by reference to the amount of the Available Amount immediately prior to the taking of such action, solely as it relates to the amount of the Available Amount, the permissibility of the taking of each such action shall be determined independently and in no event may any two or more such actions be treated as occurring simultaneously, i.e. each transaction must be permitted under the Available Amount as so calculated.

 

(b)                                 For purposes of determining the permissibility of any action, change, transaction or event that requires a calculation of any financial ratio or test (including, without limitation, any Total Net Leverage Ratio test, any Total Net First Lien Leverage Ratio test, any Total Net Senior Secured Leverage Ratio test and any Fixed Charge Coverage Ratio test, the amount of Consolidated EBITDA and/or Consolidated Total Assets), such financial ratio or test shall be calculated at the time such action is taken (subject to Section 1.14), such change is made, such transaction is consummated or such event occurs, as the case may be, and no Default or Event of Default shall be deemed to have occurred solely as a result of a change in such financial ratio or test occurring after the time such action is taken, such change is made, such transaction is consummated or such event occurs, as the case may be.

 

(c)                                  Notwithstanding anything to the contrary herein, with respect to any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Agreement that does not require compliance with a financial ratio or test (including, without limitation, any Total Net Leverage Ratio test, any Total Net First Lien Leverage Ratio test, any Total Net Senior Secured Leverage Ratio test and/or any Fixed Charge Coverage Ratio test) (any such amounts, the “Fixed Amounts”) substantially concurrently with any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Agreement that requires compliance with a financial ratio or test (including, without limitation, any Total Net Leverage Ratio test, any Total Net First Lien Leverage Ratio test, any Total Net Senior Secured Leverage Ratio test and/or any Fixed Charge Coverage Ratio test) (any such amounts, the “Incurrence-Based Amounts”), it is understood and agreed that the Fixed Amounts shall be disregarded in the calculation of the financial ratio or test applicable to the Incurrence-Based Amounts.

 

Section 1.08                            Pro Forma Calculations.  (a)  Notwithstanding anything to the contrary herein, Consolidated EBITDA, Consolidated Total Assets and any financial ratios or tests, including the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured 

 

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Leverage Ratio and the Fixed Charge Coverage Ratio, shall be calculated in the manner prescribed by this Section 1.08; provided that notwithstanding anything to the contrary in clauses (b), (c) or (d) of this Section 1.08, when calculating the Total Net First Lien Leverage Ratio for purposes of Section 2.05(b)(i), the events described in this Section 1.08 that occurred subsequent to the end of the applicable Test Period shall not be given pro forma effect.

 

(b)                                 For purposes of calculating Consolidated EBITDA, Consolidated Total Assets and any financial ratios or tests, including the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured Leverage Ratio and the Fixed Charge Coverage Ratio and compliance with covenants determined by reference to Consolidated EBITDA or Consolidated Total Assets, Municipal Waste Contracts and Put-or-Pay Agreements that have been entered into and Specified Transactions (and the incurrence or repayment of any Indebtedness in connection therewith, subject to clause (d) of this Section 1.08) that have been made, in each case, (i) during the applicable Test Period or (ii) subsequent to such Test Period and prior to or simultaneously with the event for which the calculation of Consolidated EBITDA, Consolidated Total Assets or any such ratio is made shall be calculated on a pro forma basis (x) assuming that  all such Municipal Waste Contracts and Put-or-Pay Agreements shall have been entered into and all such Specified Transactions (and any increase or decrease in Consolidated EBITDA and Consolidated Total Assets and the component financial definitions used therein attributable to any Specified Transaction) had occurred on the first day of the applicable Test Period and (y) including projected and not yet realized revenue and projected and not yet accrued costs, expenses and other charges or liabilities pursuant to any such Municipal Waste Contracts and Put-or-Pay Agreements.  If since the beginning of any applicable Test Period any Person that subsequently became a Restricted Subsidiary or was merged, amalgamated or consolidated with or into the Borrower or any of its Restricted Subsidiaries since the beginning of such Test Period shall have entered into any Municipal Waste Contract or Put-or-Pay Agreements or made any Specified Transaction that would have required adjustment pursuant to this Section 1.08, then the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured Leverage Ratio, and the Fixed Charge Coverage Ratio, Consolidated EBITDA and Consolidated Total Assets shall be calculated to give pro forma effect thereto in accordance with this Section 1.08.  For greater certainty, with respect to adjustments to Consolidated EBITDA with respect to any Municipal Waste Contract or Put-or-Pay Agreement, (a) Projected Run Rate EBITDA shall be used for each 12-month period commencing on the later of (1) the date of execution of the contract and (2) nine months and one day prior to the Service Commencement Date and ending on that date which is three months after the Service Commencement Date, (b) for any 12-month period ending more than three months after the Service Commencement Date but not more than 15 months after the Service Commencement Date, actual Consolidated EBITDA generated by and attributable to the relevant contract shall be included for each month which is more than three months after the Service Commencement Date and Projected Run Rate EBITDA, pro-rated for the balance of the relevant 12-month period, shall be used for each month in such period ended on the last day of the third month after the Service Commencement Date (such that Consolidated EBITDA determined at the end of the fourth month following the Service Commencement Date shall be the sum of actual Consolidated EBITDA for such fourth month plus 11/12 of the 12-month Projected Run Rate EBITDA), and (c) for any 12-month period ending more than 15 months after the Service Commencement Date, only actual Consolidated EBITDA shall be used and there shall be no adjustment with respect to the relevant contract. To avoid duplication, the actual Consolidated EBITDA generated during the 12-month period ending three months after the Service Commencement Date shall be deducted from the calculation of Consolidated EBITDA for the relevant contract.

 

(c)                                  Whenever pro forma effect is to be given to an Municipal Waste Contract or Put-or-Pay Agreement or a Specified Transaction, the pro forma calculations shall be made in good faith by a Responsible Officer of the Borrower and may include, for the avoidance of doubt, (x) projected and not yet realized revenue and projected and not yet accrued costs, expenses and other charges or liabilities 

 

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pursuant to any such Municipal Waste Contracts and Put-or-Pay Agreements and (y) the amount of “run rate” cost savings, operating expense reductions, restructuring charges and expenses and cost synergies projected by the Borrower in good faith to be realized as a result of specified actions taken, committed to be taken or expected to be taken (calculated on a pro forma basis as though such cost savings, operating expense reductions, restructuring charges and expenses and cost synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions, restructuring charges and expenses and cost synergies were realized during the entirety of such period) relating to such Municipal Waste Contract or Put-or-Pay Agreement or Specified Transaction, and “run rate” means the full recurring benefit for a period that is associated with any action taken, committed to be taken or expected to be taken (including any savings expected to result from the elimination of a public target’s compliance costs with public company requirements), net of the amount of actual benefits realized during such period from such actions; provided that (A) with respect to clause (y) above, such amounts are reasonably identifiable and factually supportable (in the good faith determination of the Borrower), (B) with respect to clause (y) above, such actions are taken, committed to be taken or expected to be taken no later than eighteen (18) months after the date of such Specified Transaction or entry into such Municipal Waste Contract, (C) no amounts shall be added pursuant to this clause (c) to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA, whether through a pro forma adjustment or otherwise, with respect to such period and (D) it is understood and agreed that, subject to compliance with the other provisions of this Section 1.08(c), amounts to be included in pro forma calculations pursuant to this Section 1.08(c) may be included in Test Periods in which the Municipal Waste Contract or Put-or-Pay Agreement or Specified Transaction to which such amounts relate to is no longer being given pro forma effect pursuant to Section 1.08(b).

 

(d)                                 In the event that the Borrower or any Restricted Subsidiary incurs (including by assumption or guarantees) or repays (including by repurchase, redemption, retirement, extinguishment, defeasance, discharge, escrow or similar arrangements) any Indebtedness included in the calculations of the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured Leverage Ratio or the Fixed Charge Coverage Ratio, as the case may be (in each case, other than Indebtedness incurred or repaid under any revolving credit facility in the ordinary course of business for working capital purposes), (i) during the applicable Test Period or (ii) subsequent to the end of the applicable Test Period and prior to or simultaneously with the event for which the calculation of any such ratio is made, then the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured Leverage Ratio and the Fixed Charge Coverage Ratio, as applicable, shall be calculated giving pro forma effect to such incurrence or repayment of Indebtedness, to the extent required, as if the same had occurred on the last day of the applicable Test Period.  If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date such calculation is being made had been the applicable rate for the entire period (taking into account any Swap Contract applicable to such Indebtedness).  Interest on a Capitalized Lease shall be deemed to accrue at an interest rate reasonably determined by a Responsible Officer of the Borrower to be the rate of interest implicit in such Capitalized Lease in accordance with GAAP.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a Eurocurrency Rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

(e)                                  On and after the date pro forma effect is to be given to a Permitted Acquisition and on which the Borrower or any Restricted Subsidiary is incurring or deemed to be incurring Indebtedness, which Permitted Acquisition has yet to be consummated but for which a definitive agreement governing such Permitted Acquisition has been executed and remains in effect, such pro forma effect shall be deemed to continue at all times thereafter, and such Permitted Acquisition shall be deemed to have been consummated and all such Indebtedness incurred or deemed to be incurred in connection with such Permitted Acquisition shall be deemed to be outstanding, for purposes of determining ratio-

 

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based conditions and baskets (including baskets that are determined on the basis of Consolidated EBITDA or Consolidated Total Assets) until such Permitted Acquisition is consummated or such definitive agreement is terminated (it being understood that any such Indebtedness that is actually incurred shall continue to be treated as outstanding (until actually repaid) for such purposes notwithstanding the termination of such agreement or consummation of such Permitted Acquisition); provided that pro forma effect shall also be given to Consolidated EBITDA in connection with any such Permitted Acquisition as if such Permitted Acquisition had occurred on the first day of the applicable Test Period to the extent the applicable ratio being so calculated would be greater than the calculation of such ratio without giving such pro forma effect to the calculation of Consolidated EBITDA after giving effect to the preceding provisions of this clause (e), but in no event shall such pro forma effect of the calculation of Consolidated EBITDA be given effect to the extent it would result in the applicable ratio being less that the calculation of such ratio without giving pro forma effect to such Permitted Acquisition.

 

(f)                                   It is expressly understood and agreed that pro forma adjustments and calculations need not be prepared in compliance with Regulation S-X; provided that, to the extent any pro forma adjustments pursuant to Section 1.08(c) are not in compliance with Regulation S-X, the aggregate amount of such add-backs to Consolidated EBITDA shall be subject to the limitation set forth in clause (a)(xi) of the definition of Consolidated EBITDA.

 

Section 1.09                            Currency Equivalents Generally.  (a)  For purposes of determining compliance with Section 7.01, Section 7.02, Section 7.03, Section 7.05, Section 7.06, Section 7.08 and Section 7.12 with respect to the amount of any Lien, Investment, Indebtedness, Disposition, Restricted Payment, Affiliate transaction or prepayment, redemption, purchase, defeasance or other satisfaction of Indebtedness (a “subject transaction”) in a currency other than Canadian Dollars, (i) the Canadian Dollar equivalent amount of a subject transaction in a currency other than Canadian Dollars shall be calculated based on the relevant currency exchange rate in effect on the date of such subject transaction and, in the case of the incurrence of Indebtedness, on the date incurred, in the case of term debt, or first committed, in the case of revolving credit debt; provided that if such Indebtedness is incurred to extend, replace, refund, refinance, renew or defease (collectively, a “refinancing”) other Indebtedness denominated in a currency other than Canadian Dollars, and such extension, refunding, replacement, refinancing, renewal or defeasance would cause the applicable Canadian Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such extension, replacement, refunding, refinancing, renewal or defeasance, such Canadian Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being extended, replaced, refunded, refinanced, renewed or defeased, plus the aggregate amount of unpaid and accrued interest, premium (including tender and call premiums) thereon, defeasance costs and fees and expenses incurred (including OID, upfront fees and similar interest), in connection with such extension, replacement, refunding, refinancing, renewal or defeasance and (ii) for the avoidance of doubt, it is agreed no Default or Event of Default shall be deemed to have occurred solely as a result of changes in rates of currency exchange occurring after the time of such subject transaction (so long as such subject transaction, at the time incurred, made, acquired, committed or entered into (or declared in the case of a Restricted Payment) was permitted hereunder).

 

(b)                                 For purposes of determining the Total Net Leverage Ratio, the Total Net First Lien Leverage Ratio, the Total Net Senior Secured Leverage Ratio and the Fixed Charge Coverage Ratio, amounts denominated in a currency other than Canadian Dollars will be converted to Canadian Dollars at the currency exchange rates used in preparing the Borrower’s financial statements corresponding to the Test Period with respect to the applicable date of determination and will, in the case of Indebtedness, reflect the currency translation effects, determined in accordance with GAAP, of Swap Contracts 

 

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permitted hereunder for currency exchange risks with respect to the applicable currency in effect on the date of determination of the Canadian Dollar equivalent of such Indebtedness.

 

Section 1.10                            Certifications.  All certificates and other statements required to be made by any director, officer, employee or member of management of a Loan Party pursuant to any Loan Document are and will be made on the behalf of such Loan Party and not in such officer’s, director’s, employee’s or member of management’s individual capacity.

 

Section 1.11                            Payment or Performance.  When the payment of any obligation or the performance of any action, covenant, duty or obligation under any Loan Document is stated to be due or performance required on a day which is not a Business Day (other than as described in the definition of “Interest Period” and in Section 2.12(b)), the date of such payment or performance shall extend to the immediately succeeding Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

Section 1.12                            Quebec Interpretation Clause. For purposes of any Collateral located in the Province of Quebec or charged by any deed of hypothec (or any other Loan Document) and for all other purposes pursuant to which the interpretation or construction of a Loan Document may be subject to the laws of the Province of Quebec or a court or tribunal exercising jurisdiction in the Province of Québec, (a) “personal property” shall be deemed to include “movable property”, (b) “real property” shall be deemed to include “immovable property”, (c) “tangible property” shall be deemed to include “corporeal property”, (d) “intangible property” shall be deemed to include “incorporeal property”, (e) “security interest”, “mortgage” and “lien” shall be deemed to include a “hypothec”, “prior claim” and a “resolutory clause”, (f) all references to filing, registering or recording under the UCC or the PPSA shall be deemed to include publication under the Civil Code, (g) all references to “perfection” of or “perfected” Liens shall be deemed to include a reference to an “opposable” or “set up” Liens as against third parties, (h) any “right of offset”, “right of setoff” or similar expression shall be deemed to include a “right of compensation”, (i) “goods” shall be deemed to include “corporeal movable property” other than chattel paper, documents of title, instruments, money and securities, (j) an “agent” shall be deemed to include a “mandatary”, (k) “construction liens” shall be deemed to include “legal hypothecs”, (l) “joint and several” shall be deemed to include “solidary”, (m) “gross negligence or willful misconduct” shall be deemed to be “intentional or gross fault”, (n) “beneficial ownership” shall be deemed to include “ownership on behalf of another as mandatory”, (o) “easement” shall be deemed to include “servitude”, (p) “priority” shall be deemed to include “prior claim”, (q) “survey” shall be deemed to include “certificate of location and plan”, and (r) “fee simple title” shall be deemed to include “absolute ownership”.

 

Section 1.13                            Treatment of Subsidiaries Prior to Joinder. Each Subsidiary of the Borrower that is required to be joined as a Loan Party pursuant to Section 6.12 shall, until the completion of such joinder, be deemed for the purposes of Article VII of this Agreement to be a Loan Party from and after the date of formation or acquisition of such subsidiary.

 

Section 1.14                            Limited Condition Transactions.

 

In connection with any action being taken solely in connection with a Limited Condition Transaction (including any contemplated incurrence or assumption of Indebtedness in connection therewith), for purposes of:

 

(a)                                 determining compliance with any provision of this Agreement that requires the calculation of the Total Net First Lien Leverage Ratio, Total Net Senior Secured Leverage Ratio, Total Net Leverage Rati and/or Fixed Charge Coverage Ratio;

 

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(b)                                 determining the accuracy of representations and warranties and/or whether a Default or Event of Default shall have occurred and be continuing (or any subset of Defaults or Events of Default); or

 

(c)                                  testing availability under baskets set forth in this Agreement (including baskets measured as a percentage of Consolidated EBITDA or by reference to the Available Amount);

 

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Transaction, an “LCA Election”), with such option to be exercised on or prior to the date of execution of the definitive agreements with respect to such Limited Condition Transaction, the date of determination of whether any such action is permitted hereunder, shall be deemed to be the date the definitive agreements with respect to such Limited Condition Transaction are entered into (the “LCA Test Date”), and if, after giving Pro Forma Effect to the Limited Condition Transaction and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness or Liens and the use of proceeds thereof) as if they had occurred at the beginning of the most recent Test Period ending prior to the LCA Test Date, the Borrower could have taken such action on the relevant LCA Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied with.

 

For the avoidance of doubt, if the Borrower has made an LCA Election and any of the ratios or baskets for which compliance was determined or tested as of the LCA Test Date are exceeded as a result of fluctuations in any such ratio or basket, including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such Limited Condition Transaction, at or prior to the consummation of the relevant transaction or action, such baskets or ratios will not be deemed to have been exceeded as a result of such fluctuations; provided however, if any ratios improve or baskets increase as a result of such fluctuations, such improved ratios or baskets may be utilized.  If the Borrower has made an LCA Election for any Limited Condition Transaction, then, in connection with any subsequent calculation of the ratios or baskets on or following the relevant LCA Test Date and prior to the earlier of (i) the date on which such Limited Condition Transaction is consummated or (ii) the date that the definitive agreement for such Limited Condition Transaction is terminated or expires without consummation of such Limited Condition Transaction, any such ratio or basket shall be calculated on a Pro Forma Basis assuming such Limited Condition Transaction and other transactions in connection therewith (including any incurrence of Indebtedness or Liens and the use of proceeds thereof) have been consummated.

 

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Section 1.15                            Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.  If the Borrower consummates such a division or plan of division, any resulting entity shall be deemed to be a successor to the Borrower with joint and several liability for the Borrower’s Obligations hereunder.

 

ARTICLE II

 

The Commitments and Borrowings

 

Section 2.01                            The Loans.

 

(a)                                 Subject to the terms and conditions set forth herein, each Term Lender with an Initial Canadian Term Commitment severally agrees to make to the Borrower a single loan denominated in Canadian Dollars equal to such Lender’s Initial Canadian Term Commitment on the Closing Date (each such term loan, an “Initial Canadian Term Loan” and, collectively, the “Initial Canadian Term Loans”).  Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed.  Initial Canadian Term Loans may be Canadian Prime Rate Loans or CDOR Rate Loans, as further provided herein.

 

(b)                                 Subject to the terms and conditions set forth herein, each Term Lender with an Initial U.S. Term Commitment severally agrees to make to the Borrower a single loan denominated in U.S. Dollars equal to such Lender’s Initial U.S. Term Commitment on the Closing Date (each such term loan, an “Initial U.S. Term Loan” and, collectively, the “Initial U.S. Term Loans”; together with the Initial Canadian Term Loans, each an “Initial Term Loan” and collectively, the “Initial Term Loans”).  Amounts borrowed under this Section 2.01(b) and repaid or prepaid may not be reborrowed.  Initial U.S. Term Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

(c)                                  Subject to the terms and conditions set forth herein, each 2018 Incremental Term Lender with a 2018 Incremental Term Commitment severally agrees to make to the Borrower (i) on the First Amendment Effective Date, Effective Date Incremental Term Loans not to exceed the amount of its Effective Date Incremental Term Commitment and (ii) from time to time on or after the First Amendment Effective Date and during the Delayed Draw Commitment Period, Delayed Draw Term Loans not to exceed the amount of its Delayed Draw Term Commitment. For the avoidance of doubt, the Effective Date Incremental Term Loans and the Delayed Draw Term Loans will be of the same Class. Amounts borrowed under this Section 2.01(c) and repaid or prepaid may not be reborrowed.  The 2018 Incremental Term Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

(d)                                 Subject to the terms and conditions set forth herein, each Additional 2018 Incremental Term Lender with an Additional 2018 Incremental Term Commitment severally agrees to make to the Borrower on the Second Amendment Effective Date Additional 2018 Incremental Term Loans not to exceed the amount of its Additional 2018 Incremental Term Commitment. For the avoidance of doubt, the Additional 2018 Incremental Term Loans made pursuant to this Section 2.01(d) and the 2018 Incremental Term Loans made pursuant to Section 2.01(c) on the First Amendment Effective Date shall comprise a single Class and, after giving effect to the Second Amendment and the borrowing of the Additional 2018 Incremental Term Loans on the Second Amendment Effective Date, the Additional 2018 Incremental Term Loans shall constitute 2018 Incremental Term Loans for all purposes hereunder.

 

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Amounts borrowed under this Section 2.01(d) and repaid or prepaid may not be reborrowed. The Additional 2018 Incremental Term Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

Section 2.02                            Borrowings, Conversions and Continuations of Loans.  (a)  Each Borrowing, each conversion of Loans of a given Class from one Type to the other, and each continuation of Eurocurrency Rate Loans and CDOR Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent (provided that, subject to Section 3.05, the notice in respect of the initial Borrowings on the Closing Date, or in connection with any Permitted Acquisition or other acquisition permitted under this Agreement, or in connection with any Borrowing or Extension, as applicable, under an Incremental Amendment, Refinancing Amendment, amendment in respect of Replacement Term Loans or Extension Amendment, may be conditioned on, with respect to the funding of the initial Borrowing under this Agreement, the closing of the Original Transaction, the First Amendment Transactions or, with respect to any future Borrowing under this Agreement, such Permitted Acquisition or other acquisition or any such Borrowing or Extension under an Incremental Amendment, Refinancing Amendment, amendment in respect of Replacement Term Loans or Extension Amendment, as applicable), which may be given by telephone.  Each such notice must be received by the Administrative Agent not later than 11:00 a.m. (New York City time) (i) three (3) Business Days prior to the requested date of any Borrowing or continuation of Eurocurrency Rate Loans and CDOR Rate Loans or any conversion of Base Rate Loans to Eurocurrency Rate Loans or Canadian Prime Rate Loans to CDOR Rate Loans and (ii) one (1) Business Day prior to the requested date of any Borrowing of Base Rate Loans or Canadian Prime Rate Loans or conversion of any Eurocurrency Rate Loans to Base Rate Loans or CDOR Rate Loans to Canadian Prime Rate Loans; provided, however, that if the Borrower wishes to request Eurodollar Rate Loans or CDOR Rate Loans having an Interest Period other than one, two, three or six months in duration as provided in the definition of “Interest Period,” the applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the Appropriate Lenders of such request and determine whether the requested Interest Period is acceptable to all of them.  Not later than 11:00 a.m., three Business Days before the requested date of such Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders.  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Except as provided in Sections 2.14 and 2.15, each Borrowing of, conversion to or continuation of Eurocurrency Rate Loans and CDOR Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof, or C$1,000,000 or a whole multiple of C$100,000 in excess thereof, as applicable.  Except as provided in Sections 2.14 and 2.15, each Borrowing of or conversion to Base Rate Loans or Canadian Prime Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof, or of C$500,000 or a whole multiple of C$100,000 in excess thereof, as applicable.  Each Loan Notice (whether telephonic or written) shall specify (i) the Class of the Borrowing requested and whether the Borrower is requesting the making of new Loans of the respective Class, a conversion of Term Loans (of a given Class) from one Type to the other, or a continuation of Eurocurrency Rate Loans or CDOR Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans are to be converted and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of Loan in a Loan Notice or fails to give a timely notice requesting a conversion or continuation, then the applicable Term Loans shall be made as, or converted to, Base Rate Loans or Canadian Prime Rate Loans, as applicable (unless the Loan being continued is a Eurocurrency Rate Loan or CDOR Rate Loan, in which case it shall be continued as a Eurocurrency Rate Loan, as applicable, with an Interest Period of 

 

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one (1) month).  Any such automatic conversion to Base Rate Loans or Canadian Prime Rate Loans, as applicable, or continuation pursuant to the immediately preceding sentence shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurocurrency Rate Loans or CDOR Rate Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate Loans or CDOR Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one (1) month.

 

(b)                                 Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender under the applicable Class of the amount of its Pro Rata Share of such Class of Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each such Lender of the details of any automatic conversion to Base Rate Loans or Canadian Prime Rate Loans, as applicable, or continuation of Loans described in Section 2.02(a).  In the case of each Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in Same Day Funds at the Administrative Agent’s Office not later than 1:00 p.m. (New York City time), in each case on the Business Day specified in the applicable Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (or, if such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower.

 

(c)                                  Except as otherwise provided herein, a Eurocurrency Rate Loan or CDOR Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurocurrency Rate Loan or CDOR Rate Loan unless the Borrower pays the amount due, if any, under Section 3.05 in connection therewith.  Upon the occurrence and during the continuation of an Event of Default, the Required Lenders may require that no Loans may be converted to or continued as Eurocurrency Rate Loans or CDOR Rate Loans.

 

(d)                                 The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurocurrency Rate Loans or CDOR Rate Loans upon determination of such interest rate.  The determination of the Eurocurrency Rate or CDOR Rate, as applicable, by the Administrative Agent shall be conclusive in the absence of manifest error.  At any time when Base Rate Loans or Canadian Prime Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in the Administrative Agent’s “prime rate” used in determining the Base Rate or Canadian Prime Rate, as applicable, promptly following the public announcement of such change.

 

(e)                                  After giving effect to all Borrowings, all conversions of Term Loans of a given Class from one Type to the other, and all continuations of Term Loans of a given Class as the same Type, there shall not be more than twenty (20) Interest Periods in effect unless otherwise agreed between the Borrower and the Administrative Agent; provided that after the establishment of any new Class of Loans pursuant to an Incremental Amendment, a Refinancing Amendment, an Extension Amendment or an amendment to this Agreement in respect of Replacement Term Loans, the number of Interest Periods otherwise permitted by this Section 2.02(e) shall increase by three (3) Interest Periods for each applicable Class so established.

 

(f)                                   The failure of any Lender to make the Loan to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Loan on the 

 

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date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of any Borrowing.

 

(g)                                  Unless the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s Pro Rata Share of such Borrowing, the Administrative Agent may assume that such Lender has made such Pro Rata Share available to the Administrative Agent on the date of such Borrowing in accordance with clause (b) above, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If the Administrative Agent shall have so made funds available, then, to the extent that such Lender shall not have made such portion available to the Administrative Agent, each of such Lender and the Borrower severally agrees to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent at (i) in the case of the Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate plus any administrative, processing, or similar fees customarily charged by the Administrative Agent in accordance with the foregoing.  A certificate of the Administrative Agent submitted to any Lender with respect to any amounts owing under this Section 2.02(g) shall be conclusive in the absence of manifest error.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

Section 2.03                            [reserved].

 

Section 2.04                            [reserved].

 

Section 2.05                            Prepayments.

 

(a)                                 Optional.

 

(i)                                     The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans of any Class in whole or in part without premium or penalty (except as provided in Section 2.20 and Section 3.05, if applicable); provided that (1) such notice must be received by the Administrative Agent not later than 2:00 p.m. (New York City time) (A) three (3) Business Days prior to any date of prepayment of Eurocurrency Rate Loans and CDOR Rate Loans and (B) on the day of prepayment of Base Rate Loans or Canadian Prime Rate Loans; (2) any partial prepayment of Eurocurrency Rate Loans or CDOR Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof, or C$1,000,000 or a whole multiple of C$100,000 in excess thereof, as applicable, in the case of Term Loans or, if less, the entire principal amount of the relevant Class thereof then outstanding; and (3) any prepayment of Base Rate Loans or Canadian Prime Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof, or C$500,000 or a whole multiple of C$100,000 in excess thereof, as applicable, or, if less, the entire principal amount of the relevant Class thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Class(es) and Type(s) of Loans to be prepaid and, in the case of a prepayment of Term Loans, the manner in which such prepayment shall be applied to repayments thereof required pursuant to Section 2.07; provided that in the event such notice fails to specify the manner in which the respective prepayment of Term Loans shall be applied to repayments thereof required pursuant to Section 2.07, such prepayment of Term Loans 

 

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shall be applied in direct order of maturity to repayments thereof required pursuant to Section 2.07.  The Administrative Agent will promptly notify each Appropriate Lender of its receipt of each such notice, and of the amount of such Lender’s Pro Rata Share or other applicable share provided for under this Agreement of such prepayment.  Any prepayment of a Eurocurrency Rate Loan or CDOR Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.05.  Each prepayment of the Loans of a given Class pursuant to this Section 2.05(a) shall be paid to the Appropriate Lenders in accordance with their respective Pro Rata Shares.

 

(ii)                                  [reserved].

 

(iii)                               Notwithstanding anything to the contrary contained in this Agreement, the Borrower may rescind, or extend the date for prepayment specified in, any notice of prepayment under Section 2.05(a)(i), if such prepayment would have resulted from a refinancing of all or any portion of any Facility or Facilities which refinancing shall not be consummated or shall otherwise be delayed.

 

(iv)                              Voluntary prepayments of any Class of Term Loans permitted hereunder shall be applied to the remaining scheduled installments of principal thereof pursuant to Section 2.07 in a manner determined at the sole discretion of the Borrower and specified in the notice of prepayment, and, subject to the other limitations expressly set forth in this Agreement, the Borrower may elect to apply voluntary prepayments of Term Loans to one or more Class or Classes of Term Loans selected by the Borrower in its sole discretion (provided that such voluntary prepayments of the Term Loans shall be made pro rata within any such Class or Classes selected by the Borrower).  In the event that the Borrower does not specify the order in which to apply prepayments to reduce scheduled installments of principal or as between Classes of Term Loans, the Borrower shall be deemed to have elected that such prepayment be applied to reduce the scheduled installments of principal in direct order of maturity on a pro-rata basis among Class(es) of Term Loan.

 

(v)                                 Notwithstanding anything in any Loan Document to the contrary, so long as no Event of Default has occurred and is continuing, the Borrower may prepay the outstanding Term Loans (which shall, for the avoidance of doubt, be automatically and permanently canceled immediately upon acquisition by the Borrower) (or the Borrower or any of its Subsidiaries other than the Borrower may purchase such outstanding Term Loans, which for the avoidance of doubt shall be automatically and permanently canceled immediately upon acquisition by the Borrower or any of its Subsidiaries) on the following basis:

 

(A)                               any Borrower Party (collectively, the “Borrower Prepayment Parties”) shall have the right to make a voluntary prepayment of Term Loans at a discount to par pursuant to a Borrower Offer of Specified Discount Prepayment, Borrower Solicitation of Discount Range Prepayment Offer or Borrower Solicitation of Discounted Prepayment Offer (any such prepayment, the “Discounted Loan Prepayment”), in each case made in accordance with this Section 2.05(a)(v); provided that no Borrower Prepayment Party shall initiate any action under this Section 2.05(a)(v) in order to make a Discounted Loan Prepayment (other than with respect to actions under this Section 2.05(a)(v) in order to make the first Discounted Loan Prepayment hereunder) unless (I) at least ten (10) Business Days shall have passed since the consummation of the most recent Discounted Loan Prepayment as a result of a prepayment made by a Borrower Prepayment Party on the applicable Discounted Prepayment Effective Date; or (II) at least three (3) Business Days shall have passed since the date the Borrower Prepayment Party was notified that no Lender was willing to accept any prepayment of any Term Loan at the 

 

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Specified Discount, within the Discount Range or at any discount to par value, as applicable, or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of any Borrower Prepayment Party’s election not to accept any Solicited Discounted Prepayment Offers.

 

(B)                               (1)  Subject to the proviso to clause (A) above, any Borrower Prepayment Party may from time to time offer to make a Discounted Loan Prepayment by providing the Auction Agent with five (5) Business Days’ notice in the form of a Specified Discount Prepayment Notice; provided that (I) any such offer shall be made available, at the sole discretion of the Borrower Prepayment Party, to (x) each Lender with Term Loans of the relevant Class and/or (y) each Lender with respect to any Class of Term Loans on an individual tranche basis, (II) any such offer shall specify the aggregate principal amount offered to be prepaid (the “Specified Discount Prepayment Amount”) with respect to each applicable Class, the Class or Classes of Term Loans subject to such offer and the specific percentage discount to par (the “Specified Discount”) of such Term Loans to be prepaid (it being understood that different Specified Discounts and/or Specified Discount Prepayment Amounts may be offered with respect to different Classes of Term Loans and, in such event, each such offer will be treated as a separate offer pursuant to the terms of this clause), (III) the Specified Discount Prepayment Amount shall be in an aggregate amount not less than $5,000,000 and whole increments of $1,000,000 in excess thereof, or C$5,000,000 and whole increments of C$1,000,000 in excess thereof, as applicable, and (IV) each such offer shall remain outstanding through the Specified Discount Prepayment Response Date.  The Auction Agent will promptly provide each Appropriate Lender with a copy of such Specified Discount Prepayment Notice and a form of the Specified Discount Prepayment Response to be completed and returned by each such Lender to the Auction Agent (or its delegate) by no later than 5:00 p.m., New York City time, on the third Business Day after the date of delivery of such notice to such Lenders (which date may be extended for a period not exceeding three (3) Business Days upon notice by the Borrower Prepayment Party to, and with the consent of, the Auction Agent) (the “Specified Discount Prepayment Response Date”).

 

(2)                                 Each Lender receiving such offer shall notify the Auction Agent (or its delegate) by the Specified Discount Prepayment Response Date whether or not it agrees to accept a prepayment of any of its applicable then outstanding Term Loans at the Specified Discount and, if so (such accepting Lender, a “Discount Prepayment Accepting Lender”), the amount and the Classes of such Lender’s Term Loans to be prepaid at such offered discount.  Each acceptance of a Discounted Loan Prepayment by a Discount Prepayment Accepting Lender shall be irrevocable.  Any Lender whose Specified Discount Prepayment Response is not received by the Auction Agent by the Specified Discount Prepayment Response Date shall be deemed to have declined to accept the applicable Borrower Offer of Specified Discount Prepayment.

 

(3)                                 If there is at least one Discount Prepayment Accepting Lender, the relevant Borrower Prepayment Party will make a prepayment of outstanding Term Loans pursuant to this clause (B) to each Discount Prepayment Accepting Lender on the Discounted Prepayment Effective Date in accordance with the respective outstanding amount and Classes of Term Loans specified in such Lender’s Specified Discount Prepayment Response given pursuant to clause (2) above; provided that, if the aggregate principal amount of Term Loans accepted for prepayment by all Discount Prepayment Accepting Lenders exceeds the Specified Discount Prepayment Amount, such prepayment shall be made pro rata among the Discount Prepayment Accepting Lenders in accordance with the respective principal amounts accepted to be prepaid by each such Discount Prepayment Accepting Lender and the Auction Agent (in consultation with such Borrower Party and subject to rounding requirements of the Auction Agent made in its reasonable discretion) will calculate such proration (the “Specified Discount Proration”).  The Auction Agent shall promptly, and in any case within four (4) Business Days following the 

 

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Specified Discount Prepayment Response Date, notify (I) the relevant Borrower Prepayment Party of the respective Lenders’ responses to such offer, the Discounted Prepayment Effective Date and the aggregate principal amount of the Discounted Loan Prepayment and the Classes to be prepaid, (II) each Lender of the Discounted Prepayment Effective Date, and the aggregate principal amount and the Classes of Term Loans to be prepaid at the Specified Discount on such date and (III) each Discount Prepayment Accepting Lender of the Specified Discount Proration, if any, and confirmation of the principal amount, Class and Type of Term Loans of such Lender to be prepaid at the Specified Discount on such date.  Each determination by the Auction Agent of the amounts stated in the foregoing notices to the Borrower Prepayment Party and such Lenders shall be conclusive and binding for all purposes absent manifest error.  The payment amount specified in such notice to the Borrower Prepayment Party shall be due and payable by such Borrower Prepayment Party on the Discounted Prepayment Effective Date in accordance with clause (F) below (subject to clause (J) below).

 

(C)                               (1)  Subject to the proviso to subclause (A) above, any Borrower Prepayment Party may from time to time solicit Discount Range Prepayment Offers by providing the Auction Agent with five (5) Business Days’ notice in the form of a Discount Range Prepayment Notice; provided that (I) any such solicitation shall be extended, at the sole discretion of such Borrower Prepayment Party, to (x) each Lender and/or (y) each Lender with respect to any Class of Term Loans on an individual tranche basis, (II) any such notice shall specify the maximum aggregate principal amount of the relevant Loans (the “Discount Range Prepayment Amount”), the Class or Classes of Term Loans subject to such offer and the maximum and minimum percentage discounts to par (the “Discount Range”) of the principal amount of such Term Loans with respect to each relevant Class of Term Loans willing to be prepaid by such Borrower Prepayment Party (it being understood that different Discount Ranges and/or Discount Range Prepayment Amounts may be offered with respect to different Classes of Term Loans and, in such event, each such offer will be treated as separate offer pursuant to the terms of this clause), (III) the Discount Range Prepayment Amount shall be in an aggregate amount not less than $5,000,000 and whole increments of $1,000,000 in excess thereof, or C$5,000,000 and whole increments of C$1,000,000 in excess thereof, as applicable, and (IV) each such solicitation by a Borrower Prepayment Party shall remain outstanding through the Discount Range Prepayment Response Date.  The Auction Agent will promptly provide each Appropriate Lender with a copy of such Discount Range Prepayment Notice and a form of the Discount Range Prepayment Offer to be submitted by a responding Lender to the Auction Agent (or its delegate) by no later than 5:00 p.m., New York City time, on the third Business Day after the date of delivery of such notice to such Lenders (which date may be extended for a period not exceeding three (3) Business Days upon notice by the Borrower Prepayment Party to, and with the consent of, the Auction Agent) (the “Discount Range Prepayment Response Date”).  Each Lender’s Discount Range Prepayment Offer shall be irrevocable and shall specify a discount to par within the Discount Range (the “Submitted Discount”) at which such Lender is willing to allow prepayment of any or all of its then outstanding Term Loans of the applicable tranche or tranches and the maximum aggregate principal amount and tranches of such Lender’s Term Loans (the “Submitted Amount”) such Lender is willing to have prepaid at the Submitted Discount.  Any Lender whose Discount Range Prepayment Offer is not received by the Auction Agent by the Discount Range Prepayment Response Date shall be deemed to have declined to accept a Discounted Loan Prepayment of any of its Term Loans at any discount to their par value within the Discount Range.

 

(2)                                 The Auction Agent shall review all Discount Range Prepayment Offers received on or before the applicable Discount Range Prepayment Response Date and shall determine (in consultation with such Borrower Prepayment Party and subject to rounding

 

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requirements of the Auction Agent made in its sole reasonable discretion) the Applicable Discount and Term Loans to be prepaid at such Applicable Discount in accordance with this subclause (C).  The relevant Borrower Prepayment Party agrees to accept on the Discount Range Prepayment Response Date all Discount Range Prepayment Offers received by Auction Agent within the Discount Range by the Discount Range Prepayment Response Date, in the order from the Submitted Discount that is the largest discount to par to the Submitted Discount that is the smallest discount to par, up to and including the Submitted Discount that is the smallest discount to par within the Discount Range (such Submitted Discount that is the smallest discount to par within the Discount Range being referred to as the “Applicable Discount”) which yields a Discounted Loan Prepayment in an aggregate principal amount equal to the lower of (I) the Discount Range Prepayment Amount and (II) the sum of all Submitted Amounts.  Each Lender that has submitted a Discount Range Prepayment Offer to accept prepayment at a discount to par that is larger than or equal to the Applicable Discount shall be deemed to have irrevocably consented to prepayment of Term Loans equal to its Submitted Amount (subject to any required proration pursuant to the following subclause (3)) at the Applicable Discount (each such Lender, a “Participating Lender”).

 

(3)                                 If there is at least one Participating Lender, the relevant Borrower Prepayment Party will prepay the respective outstanding Term Loans of each Participating Lender on the Discounted Prepayment Effective Date in the aggregate principal amount and of the Classes specified in such Lender’s Discount Range Prepayment Offer at the Applicable Discount; provided that if the Submitted Amount by all Participating Lenders offered at a discount to par greater than the Applicable Discount exceeds the Discount Range Prepayment Amount, prepayment of the principal amount of the relevant Term Loans for those Participating Lenders whose Submitted Discount is a discount to par greater than or equal to the Applicable Discount (the “Identified Participating Lenders”) shall be made pro rata among the Identified Participating Lenders in accordance with the Submitted Amount of each such Identified Participating Lender and the Auction Agent (in consultation with such Borrower Prepayment Party and subject to rounding requirements of the Auction Agent made in its sole reasonable discretion) will calculate such proration (the “Discount Range Proration”).  The Auction Agent shall promptly, and in any case within six (6) Business Days following the Discount Range Prepayment Response Date, notify (I) the relevant Borrower Prepayment Party of the respective Lenders’ responses to such solicitation, the Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate principal amount of the Discounted Loan Prepayment and the Classes to be prepaid, (II) each Lender of the Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate principal amount and tranches of Term Loans to be prepaid at the Applicable Discount on such date, (III) each Participating Lender of the aggregate principal amount and tranches of such Lender to be prepaid at the Applicable Discount on such date, and (IV) if applicable, each Identified Participating Lender of the Discount Range Proration.  Each determination by the Auction Agent of the amounts stated in the foregoing notices to the relevant Borrower Prepayment Party and Lenders shall be conclusive and binding for all purposes absent manifest error.  The payment amount specified in such notice to the Borrower Prepayment Party shall be due and payable by such Borrower Prepayment Party on the Discounted Prepayment Effective Date in accordance with subclause (F) below (subject to subclause (J) below).

 

(D)                               (1)  Subject to the proviso to subclause (A) above, any Borrower Prepayment Party may from time to time solicit Solicited Discounted Prepayment Offers by providing the Auction Agent with five (5) Business Days’ notice in the form of a Solicited Discounted Prepayment Notice; provided that (I) any such solicitation shall be extended, at the sole discretion of such Borrower Prepayment Party, to (x) each Lender and/or (y) each Lender 

 

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with respect to any Class of Term Loans on an individual tranche basis, (II) any such notice shall specify the maximum aggregate amount of the Term Loans (the “Solicited Discounted Prepayment Amount”) and the Class or Classes of Term Loans the Borrower is willing to prepay at a discount (it being understood that different Solicited Discounted Prepayment Amounts may be offered with respect to different Classes of Term Loans and, in such event, each such offer will be treated as separate offer pursuant to the terms of this clause), (III) the Solicited Discounted Prepayment Amount shall be in an aggregate amount not less than $5,000,000 and whole increments of $1,000,000 in excess thereof, or C$5,000,000 and whole increments of C$1,000,000 in excess thereof, as applicable, and (IV) each such solicitation by a Borrower Prepayment Party shall remain outstanding through the Solicited Discounted Prepayment Response Date.  The Auction Agent will promptly provide each Appropriate Lender with a copy of such Solicited Discounted Prepayment Notice and a form of the Solicited Discounted Prepayment Offer to be submitted by a responding Lender to the Auction Agent (or its delegate) by no later than 5:00 p.m., New York City time on the third Business Day after the date of delivery of such notice to such Lenders (which date may be extended for a period not exceeding three (3) Business Days upon notice by the Borrower Prepayment Party to, and with the consent of, the Auction Agent) (the “Solicited Discounted Prepayment Response Date”).  Each Lender’s Solicited Discounted Prepayment Offer shall (x) be irrevocable, (y) remain outstanding until the Acceptance Date, and (z) specify both a discount to par (for example, an offer of 99% of the outstanding principal amount would equate to a 1% discount to par) (the “Offered Discount”) at which such Lender is willing to allow prepayment of its then outstanding Term Loans and the maximum aggregate principal amount and Classes of such Term Loans (the “Offered Amount”) such Lender is willing to have prepaid at the Offered Discount.  Any Lender whose Solicited Discounted Prepayment Offer is not received by the Auction Agent by the Solicited Discounted Prepayment Response Date shall be deemed to have declined prepayment of any of its Term Loans at any discount with respect to the applicable Solicited Discounted Prepayment Offer.

 

(2)                                 The Auction Agent shall promptly provide the relevant Borrower Prepayment Party with a copy of all Solicited Discounted Prepayment Offers received on or before the Solicited Discounted Prepayment Response Date.  Such Borrower Prepayment Party shall review all such Solicited Discounted Prepayment Offers and select the smallest of the Offered Discounts specified by the relevant responding Lenders in the Solicited Discounted Prepayment Offers that is acceptable to the Borrower Prepayment Party in its sole discretion (the “Acceptable Discount”), if any.  If the Borrower Prepayment Party elects in its sole discretion to accept any Offered Discount as the Acceptable Discount, then as soon as practicable after the determination of the Acceptable Discount, but in no event later than by the third Business Day after the date of receipt by such Borrower Prepayment Party from the Auction Agent of a copy of all Solicited Discounted Prepayment Offers pursuant to the first sentence of this clause (2) (the “Acceptance Date”), the Borrower Prepayment Party shall submit an Acceptance and Prepayment Notice to the Auction Agent setting forth the Acceptable Discount.  If the Auction Agent shall fail to receive an Acceptance and Prepayment Notice from the Borrower Prepayment Party by the Acceptance Date, such Borrower Prepayment Party shall be deemed to have rejected all Solicited Discounted Prepayment Offers.

 

(3)                                 Based upon the Acceptable Discount and the Solicited Discounted Prepayment Offers received by Auction Agent by the Solicited Discounted Prepayment Response Date, within four (4) Business Days after receipt of an Acceptance and Prepayment Notice (the “Discounted Prepayment Determination Date”), the Auction Agent will determine (in consultation with such Borrower Prepayment Party and subject to rounding requirements of the Auction Agent made in its sole reasonable discretion) the aggregate principal amount and the Classes of Term Loans (the “Acceptable Prepayment Amount”) to be prepaid 

 

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by the relevant Borrower Prepayment Party at the Acceptable Discount in accordance with this Section 2.05(a)(v)(D).  If the Borrower Prepayment Party elects to accept any Acceptable Discount, then the Borrower Prepayment Party agrees to accept all Solicited Discounted Prepayment Offers received by Auction Agent by the Solicited Discounted Prepayment Response Date, in the order from largest Offered Discount to smallest Offered Discount, up to and including the Acceptable Discount.  Each Lender that has submitted a Solicited Discounted Prepayment Offer with an Offered Discount that is greater than or equal to the Acceptable Discount shall be deemed to have irrevocably consented to prepayment of Term Loans equal to its Offered Amount (subject to any required pro-rata reduction pursuant to the following sentence) at the Acceptable Discount (each such Lender, a “Qualifying Lender”).  The Borrower Prepayment Party will prepay outstanding Term Loans pursuant to this subclause (D) to each Qualifying Lender in the aggregate principal amount and of the tranches specified in such Lender’s Solicited Discounted Prepayment Offer at the Acceptable Discount; provided that if the aggregate Offered Amount by all Qualifying Lenders whose Offered Discount is greater than or equal to the Acceptable Discount exceeds the Solicited Discounted Prepayment Amount, prepayment of the principal amount of the Term Loans for those Qualifying Lenders whose Offered Discount is greater than or equal to the Acceptable Discount (the “Identified Qualifying Lenders”) shall be made pro rata among the Identified Qualifying Lenders in accordance with the Offered Amount of each such Identified Qualifying Lender and the Auction Agent (in consultation with such Borrower Prepayment Party and subject to rounding requirements of the Auction Agent made in its sole reasonable discretion) will calculate such proration (the “Solicited Discount Proration”).  On or prior to the Discounted Prepayment Determination Date, the Auction Agent shall promptly notify (I) the relevant Borrower Prepayment Party of the Discounted Prepayment Effective Date and Acceptable Prepayment Amount comprising the Discounted Loan Prepayment and the Classes to be prepaid, (II) each Lender of the Discounted Prepayment Effective Date, the Acceptable Discount, and the Acceptable Prepayment Amount of all Term Loans and the Classes to be prepaid at the Applicable Discount on such date, (III) each Qualifying Lender of the aggregate principal amount and the Classes of such Lender to be prepaid at the Acceptable Discount on such date, and (IV) if applicable, each Identified Qualifying Lender of the Solicited Discount Proration.  Each determination by the Auction Agent of the amounts stated in the foregoing notices to such Borrower Prepayment Party and Lenders shall be conclusive and binding for all purposes absent manifest error.  The payment amount specified in such notice to such Borrower Prepayment Party shall be due and payable by such Borrower Prepayment Party on the Discounted Prepayment Effective Date in accordance with subclause (F) below (subject to subclause (J) below).

 

(E)                                In connection with any Discounted Loan Prepayment, the Borrower and the Lenders acknowledge and agree that the Auction Agent may require as a condition to any Discounted Loan Prepayment the payment of customary, reasonable and documented fees and out-of-pocket expenses from a Borrower Prepayment Party in connection therewith.

 

(F)                                 If any Term Loan is prepaid in accordance with clauses (B) through (D) above, a Borrower Prepayment Party shall prepay such Term Loans on the Discounted Prepayment Effective Date without premium or penalty.  The relevant Borrower Prepayment Party shall make such prepayment to the Administrative Agent, for the account of the Discount Prepayment Accepting Lenders, Participating Lenders, or Qualifying Lenders, as applicable, at the Administrative Agent’s Office in immediately available funds not later than 3:00 p.m. (New York City time) on the Discounted Prepayment Effective Date and all such prepayments shall be applied to the remaining principal installments of the relevant tranche of Term Loans pursuant to Section 2.07 in an amount equal to the principal amount of the applicable

 

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Term Loans in accordance with Section 2.05(a)(iv); provided that to the extent prepayments are applied to scheduled installments of principal other than in direct order of maturity, the applicable Borrower Prepayment Party shall so specify in the applicable offer.  The Term Loans so prepaid shall be accompanied by all accrued and unpaid interest on the par principal amount so prepaid up to, but not including, the Discounted Prepayment Effective Date.  Each prepayment of the outstanding Term Loans pursuant to this Section 2.05(a)(v) shall be paid to the Discount Prepayment Accepting Lenders, Participating Lenders, or Qualifying Lenders, as applicable, and shall be applied to the relevant Term Loans of such Lenders in accordance with their respective Pro Rata Share or other applicable share provided for under this Agreement.  The aggregate principal amount of the tranches and installments of the relevant Loans outstanding shall be deemed reduced by the full par value of the aggregate principal amount of the tranches of Term Loans prepaid on the Discounted Prepayment Effective Date in any Discounted Loan Prepayment.  In connection with each prepayment pursuant to this Section 2.05(a)(v), each assigning Lender shall be deemed to acknowledge and agree that in connection with such assignment, (1) the Equity Sponsor, the Borrower and its Subsidiaries and Affiliates then may have, and later may come into possession of material non-public information, (2) such Lender has independently and, without reliance on the Equity Sponsor, the Borrower or any of its Subsidiaries and Affiliates (including, without limitation, the applicable Borrower Prepayment Party), the Administrative Agent or any other Agent-Related Persons, made its own analysis and determination to participate in such assignment notwithstanding such Lender’s lack of knowledge of the material non-public information, (3) none of the Equity Sponsor, the Borrower any of its Subsidiaries and Affiliates (including, without limitation, the applicable Borrower Prepayment Party), the Administrative Agent or any other Agent-Related Persons shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender may have against the Equity Sponsor, the Borrower or any of its Subsidiaries and Affiliates (including, without limitation, the applicable Borrower Prepayment Party), the Administrative Agent and any other Agent-Related Persons, under applicable Laws or otherwise, with respect to the nondisclosure of the material non-public information and (4) that the material non-public information may not be available to the Administrative Agent or the other Lenders.

 

(G)                               To the extent not expressly provided for herein, each Discounted Loan Prepayment shall be consummated pursuant to procedures consistent with the provisions in this Section 2.05(a)(v), established by the Auction Agent acting in its reasonable discretion and as reasonably agreed by the applicable Borrower Prepayment Party.

 

(H)                              Notwithstanding anything in any Loan Document to the contrary, for purposes of this Section 2.05(a)(v), each notice or other communication required to be delivered or otherwise provided to the Auction Agent (or its delegate) shall be deemed to have been given upon the Auction Agent’s (or its delegate’s) actual receipt during normal business hours of such notice or communication; provided that any notice or communication actually received outside of normal business hours shall be deemed to have been given as of the opening of business on the next Business Day.

 

(I)                                   The Borrower and the Lenders acknowledge and agree that the Auction Agent may perform any and all of its duties under this Section 2.05(a)(v) by itself or through any Affiliate of the Auction Agent and expressly consents to any such delegation of duties by the Auction Agent to such Affiliate and the performance of such delegated duties by such Affiliate.  The exculpatory provisions pursuant to this Agreement shall apply to each Affiliate of the Auction Agent and its respective activities in connection with any Discounted 

 

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Loan Prepayment provided for in this Section 2.05(a)(v) as well as activities of the Auction Agent.

 

(J)                                   Each Borrower Prepayment Party shall have the right, by written notice to the Auction Agent, to revoke in full (but not in part) its offer to make a Discounted Loan Prepayment and rescind the applicable Specified Discount Prepayment Notice, Discount Range Prepayment Notice or Solicited Discounted Prepayment Notice therefor at its discretion at any time on or prior to the applicable Specified Discount Prepayment Response Date, Discount Range Prepayment Response Date or Solicited Discounted Prepayment Response Date (and if such offer is revoked pursuant to the preceding clauses, any failure by such Borrower Prepayment Party to make any prepayment to a Lender, as applicable, pursuant to this Section 2.05(a)(v) shall not constitute a Default under Section 8.01 or otherwise).

 

Notwithstanding anything to contrary, the provisions of this Section 2.05(a)(v) shall permit any transaction permitted by this Section 2.05(a)(v) to be conducted on a Class by Class basis and on a non-pro rata basis across Classes (but not within a single Class), in each case, as selected by the Borrower.

 

(b)                                 Mandatory.

 

(i)                                     Within ten (10) Business Days after financial statements have been delivered pursuant to Section 6.01(a) and the related Compliance Certificate has been delivered pursuant to Section 6.02(a), the Borrower shall, subject to clause (b)(vi) of this Section 2.05, prepay an aggregate principal amount of Term Loans in an amount (the “ECF Payment Amount”) equal to (A) 50.0% (such percentage as it may be reduced as described below, the “ECF Percentage”) of Excess Cash Flow, if any, for the fiscal year covered by such financial statements (commencing with the fiscal year ending on December 31, 2017) minus (B) the sum of (x) all voluntary prepayments and cancellations of Term Loans, Refinancing Equivalent Debt and Incremental Equivalent Debt during such fiscal year (to the extent not deducted pursuant to this clause (B) in respect of the prior year) or after such fiscal year end and prior to the time the payment pursuant to this Section 2.05(b) is due (including the amount of any voluntary prepayments or cancellation of Term Loans, Refinancing Equivalent Debt and Incremental Equivalent Debt (other than under a revolving facility) made at a discount to par (in an amount equal to the discounted amount actually paid in respect of the principal amount of such Indebtedness)), and (y) all voluntary prepayments of revolving loans that are secured on a pari passu basis with the Term Loans during such fiscal year (to the extent not deducted pursuant this clause (B) in respect of the prior year) or after such fiscal year end and prior to the time the payment pursuant to this Section 2.05(b) is due, in each case to the extent such revolving credit facility commitments are permanently reduced by the amount of such payments, and in the case of each of the immediately preceding clauses (x) and (y), to the extent such prepayments are not financed with the proceeds of other long term Indebtedness (other than revolving or intercompany Indebtedness); provided that to the extent any prepayments described in this clause (B) are made at a discount to par pursuant to any purchases or assignments of the Loans pursuant to Section 2.05(a)(v) or Section 10.07(h) or (m) or otherwise, only the purchase price (and not the par amount) of the applicable Loans or other Indebtedness subject to such purchase or assignment will be deducted from the ECF Payment Amount pursuant to this clause (B); provided, further, that (x) the ECF Percentage shall be 25.0% if the Total Net First Lien Leverage Ratio as of the last day of the fiscal year covered by such financial statements was less than or equal to 3.00:1.00 and greater than 2.50:1.00 and (y) the ECF Percentage shall be 0% if the Total Net First Lien Leverage Ratio as of the last day of the fiscal year covered by such financial statements was less than or equal to 2.50:1.00.

 

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(ii)                                  (A)  Subject to clause (b)(vi) of this Section 2.05, if (x) the Borrower or any of its Restricted Subsidiaries Disposes outside of the ordinary course of business of any property or assets pursuant to Section 7.05(f), Section 7.05(j) or Section 7.05(x) (or in a Disposition not permitted by this Agreement) or (y) any Casualty Event occurs, which results in the realization or receipt by the Borrower or such Restricted Subsidiary of Net Cash Proceeds, the Borrower shall prepay on or prior to the date which is ten (10) Business Days after the date of the realization or receipt of such Net Cash Proceeds, an aggregate principal amount of Term Loans equal to 100% (such percentage as it may be reduced as described below, the “Asset Sale Percentage”) of all Net Cash Proceeds realized or received; provided that if at the time that any such prepayment would be required, the Borrower or any Restricted Subsidiary is required to repay, redeem or repurchase or offer to repay, redeem or repurchase Indebtedness that is secured on a pari passu basis (but without regard to control of remedies) with the Obligations pursuant to the terms of the documentation governing or evidencing such Indebtedness with the net proceeds of such Disposition or Casualty Event (such Indebtedness required to be repaid, redeemed or repurchased or offered to be so repurchased, “Other Applicable Indebtedness”), then the Borrower or applicable Restricted Subsidiary may apply such Net Cash Proceeds on a pro rata basis (determined on the basis of the aggregate outstanding principal amount of the Term Loans and Other Applicable Indebtedness at such time; provided that the portion of such Net Cash Proceeds allocated to the Other Applicable Indebtedness shall not exceed the amount of such Net Cash Proceeds required to be allocated to the Other Applicable Indebtedness pursuant to the terms thereof, and the remaining amount, if any, of such Net Cash Proceeds shall be allocated to the Term Loans in accordance with the terms hereof) to the prepayment of the Term Loans and to the repurchase, redemption or prepayment of Other Applicable Indebtedness, and the amount of prepayment of the Term Loans that would have otherwise been required pursuant to this Section 2.05(b)(ii)(A) shall be reduced accordingly; provided, further, that to the extent the holders of Other Applicable Indebtedness decline to have such indebtedness repurchased, redeemed or prepaid, the declined amount shall promptly (and in any event within ten (10) Business Days after the date of such rejection) be applied to prepay the Term Loans in accordance with the terms hereof; provided, further, that no prepayment shall be required pursuant to this Section 2.05(b)(ii)(A) with respect to such portion of such Net Cash Proceeds that the Borrower shall have, on or prior to such date, given written notice to the Administrative Agent of its intent to reinvest in accordance with Section 2.05(b)(ii)(B) except as expressly required therein; provided, further, that (x) the Asset Sale Percentage shall be 50.0% if the Total Net Leverage Ratio as of the last day of the most recently ended Test Period was less than or equal to 5.50:1.00 and greater than 4.75:1.00 and (y) the Asset Sale Percentage shall be 0% if the Total Net Leverage Ratio as of the last day of the most recently ended Test Period was less than or equal to 4.75:1.00.

 

(B)                               With respect to any Net Cash Proceeds realized or received with respect to any Disposition otherwise subject to the application of Section 2.05(b)(ii)(A) or any Casualty Event, at the option of the Borrower, the Borrower may reinvest all or any portion of such Net Cash Proceeds in assets useful for its or any of its Restricted Subsidiary’s business within (x) fifteen (15) months following receipt of such Net Cash Proceeds or (y) if the Borrower or a Restricted Subsidiary enters into a legally binding commitment to reinvest such Net Cash Proceeds within fifteen (15) months following receipt thereof, within one hundred and eighty (180) days following the end of such fifteen (15) month period; provided, that if any Net Cash Proceeds are no longer intended to be or cannot be so reinvested at any time after delivery of a notice of reinvestment election, and subject to clauses (iv) and (vi) of this Section 2.05(b), an amount equal to any such Net Cash Proceeds shall be applied within five (5) Business Days after the Borrower reasonably determines that such Net Cash Proceeds are no longer intended to be or cannot be so reinvested to the prepayment of the Loans as set forth in this Section 2.05(b)(ii).

 

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(iii)                               (A)  If the Borrower or any Restricted Subsidiary incurs or issues any Indebtedness not permitted to be incurred or issued pursuant to Section 7.03, the Borrower shall prepay an aggregate principal amount of Term Loans equal to 100% of all Net Cash Proceeds received therefrom on or prior to the date which is five (5) Business Days after the receipt of such Net Cash Proceeds and (B) if the Borrower incurs or issues any Refinancing Term Loans or Refinancing Equivalent Debt to refinance all or a portion of any Class (or Classes) of Loans resulting in Net Cash Proceeds (as opposed to such Refinancing Term Loans or Refinancing Equivalent Debt arising out of an exchange or conversion of existing Term Loans for or into such Refinancing Term Loans or Refinancing Equivalent Debt), the Borrower shall cause to be prepaid an aggregate principal amount of such Class (or Classes) of Loans in an amount equal to 100% of the Net Cash Proceeds received therefrom on or prior to the date which is five (5) Business Days after the receipt by the Borrower of such Net Cash Proceeds.

 

(iv)                              (A) Each prepayment of Term Loans pursuant to this Section 2.05(b) shall be applied ratably to each Class of Term Loans (provided that (i) any prepayment of Term Loans with the Net Cash Proceeds of, or in exchange for, Refinancing Term Loans, Refinancing Equivalent Debt or Replacement Term Loans shall be applied solely to each applicable Class or Classes of Term Loans being refinanced as selected by the Borrower, and (ii) any Class of Extended Term Loans, Refinancing Term Loans, New Term Loans and Replacement Term Loans may specify that one or more other Classes of Term Loans may be prepaid prior to such Class of Extended Term Loans, Refinancing Term Loans, New Term Loans or Replacement Term Loans), (B) with respect to each Class of Term Loans, each prepayment pursuant to clauses (i) through (iii) of this Section 2.05(b) shall be applied to the remaining scheduled installments of principal of such Class of Term Loans as directed by the Borrower and specified in the notice of prepayment; provided that in the event that the Borrower does not specify the order in which to apply prepayments, the Borrower shall be deemed to have elected that such prepayment be applied to reduce the scheduled installments of principal of such Class of Term Loans in direct order of maturity; and (C) each such prepayment shall be paid to the Appropriate Lenders in accordance with their respective Pro Rata Shares of such prepayment, subject to clauses (vi) and (vii) of this Section 2.05(b).

 

(v)                                 [reserved].

 

(vi)                              Notwithstanding any other provisions of this Section 2.05(b), (A) to the extent that any or all of the Net Cash Proceeds of any Disposition by a Subsidiary giving rise to a prepayment event pursuant to Section 2.05(b)(ii) (a “Foreign Disposition”), the Net Cash Proceeds of any Casualty Event from a Subsidiary that is neither a U.S. Subsidiary nor a Canadian Subsidiary (a “Foreign Casualty Event”) or Excess Cash Flow attributable to a Subsidiary that is neither a U.S. Subsidiary nor a Canadian Subsidiary, in any such case are prohibited or delayed by (I) any applicable Law (or other material agreements binding on such Subsidiary) or (II) the material constituent documents of any non-Wholly-Owned Subsidiary, in any case, from being repatriated to the Borrower, an amount equal to the portion of such Net Cash Proceeds or Excess Cash Flow so affected will not be required to be applied to repay Term Loans at the times provided in this Section 2.05(b) but may be retained by the applicable Subsidiary so long, but only so long, as (x) the applicable Law will not permit repatriation to the Borrower (the Borrower hereby agreeing to use commercially reasonable efforts to cause the applicable Subsidiary to promptly take all actions reasonably required by the applicable Law to permit such repatriation) or (y) the material constituent documents of the applicable Subsidiary (including as a result of minority ownership) or any other material agreements binding upon the applicable Subsidiary will not permit repatriation to the Borrower, and once such repatriation of any of such affected Net Cash Proceeds or Excess Cash Flow is permitted under the applicable Law or applicable material constituent documents or other material agreement, such repatriation will be immediately effected and an amount equal to such repatriated 

 

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Net Cash Proceeds or Excess Cash Flow will be promptly (and in any event not later than five (5) Business Days after such repatriation) applied (net of additional Taxes payable or reserved against as a result thereof) to the repayment of the Term Loans pursuant to this Section 2.05(b) to the extent provided herein and (B) to the extent that the Borrower has determined in good faith that repatriation of any of or all the Net Cash Proceeds of any Foreign Disposition, any Foreign Casualty Event or Excess Cash Flow attributable to such Subsidiaries would have a material adverse tax consequence (taking into account any foreign tax credit or benefit actually realized in connection with such repatriation) (as determined in good faith by the Borrower) with respect to such Net Cash Proceeds or Excess Cash Flow, the Net Cash Proceeds or Excess Cash Flow so affected will not be required to be applied to repay Term Loans at the times provided in this Section 2.05(b) but may be retained by the applicable Subsidiary until such time as it may repatriate such amount without incurring such material adverse tax consequences (at which time the Borrower shall make a payment to repay the Term Loans to the extent provided herein).

 

(vii)                           The Borrower shall give notice to the Administrative Agent of any mandatory prepayment of the Term Loans pursuant to Section 2.05(b)(i), (ii) or (iii), at least three (3) Business Days prior to the date on which such payment is due; provided that, in the case of Section 2.05(b)(iii), the Borrower may, subject to Section 3.05, rescind, or extend the date for prepayment specified in, any notice of prepayment under Section 2.05(b)(iii) if such prepayment would have resulted from a refinancing of all or any portion of any Facility or Facilities, which refinancing shall not be consummated or shall otherwise be delayed.  Such notice shall specify the date of such prepayment and provide a reasonably detailed calculation of the amount of such prepayment.  Upon receipt by the Administrative Agent of such notice, the Administrative Agent shall promptly (and, in any event, within one (1) Business Day) give notice to each Appropriate Lender of the contents of the Borrower’s prepayment notice and of such Appropriate Lender’s Pro Rata Share or other applicable share provided for under this Agreement of the prepayment.  Each Appropriate Lender may elect (in its sole discretion) to decline all (but not less than all) of its Pro Rata Share or other applicable share provided for under this Agreement of the prepayment (such amounts so declined, the “Declined Amounts”) of any mandatory prepayment (other than any mandatory prepayment made under Section 2.05(b)(iii)(B)) by giving notice of such election in writing (each, a “Rejection Notice”) to the Administrative Agent by 12:00 p.m. (New York City time), on the date that is one (1) Business Day after the date of such Lender’s receipt of notice from the Administrative Agent regarding such prepayment.  Each Rejection Notice from a given Lender shall specify the principal amount of the mandatory repayment of Term Loans to be rejected by such Lender.  If a Lender fails to deliver a Rejection Notice to the Administrative Agent within the time frame specified above, or such Rejection Notice fails to specify the principal amount of the Term Loans to be rejected, any such failure will be deemed to constitute an acceptance of such Lender’s Pro Rata Share or other applicable share provided for under this Agreement of the total amount of such mandatory prepayment of Term Loans.  Upon receipt by the Administrative Agent of such Rejection Notice, the Administrative Agent shall promptly (and, in any event, within one (1) Business Day) notify the Borrower of such election.  The aggregate amount of the Declined Amounts shall be retained by the Borrower and the Restricted Subsidiaries and/or applied by the Borrower or any of the Restricted Subsidiaries in any manner not inconsistent with the terms of this Agreement (such Declined Amounts retained and/or applied by the Borrower and the Restricted Subsidiaries, the “Borrower Retained Prepayment Amounts”).

 

(c)                                  Interest, Funding Losses, Etc.  All prepayments under this Section 2.05 shall be accompanied by all accrued interest thereon, together with, in the case of any such prepayment of a Eurocurrency Rate Loan on a date prior to the last day of an Interest Period therefor, any amounts owing in respect of such Eurocurrency Rate Loan pursuant to Section 3.05.

 

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Notwithstanding any of the other provisions of this Section 2.05, so long as no Event of Default shall have occurred and be continuing, if any prepayment of Eurocurrency Rate Loans is required to be made under this Section 2.05 prior to the last day of the Interest Period therefor, in lieu of making any payment pursuant to this Section 2.05 in respect of any such Eurocurrency Rate Loan prior to the last day of the Interest Period therefor, the Borrower may, in its sole discretion, deposit an amount sufficient to make any such prepayment otherwise required to be made hereunder together with accrued interest to the last day of such Interest Period into a Cash Collateral Account until the last day of such Interest Period, at which time the Administrative Agent shall be authorized (without any further action by or notice to or from the Borrower or any other Loan Party) to apply such amount to the prepayment of such Loans in accordance with this Section 2.05.  Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent shall also be authorized (without any further action by or notice to or from the Borrower or any other Loan Party) to apply such amount to the prepayment of the outstanding Loans in accordance with the relevant provisions of this Section 2.05.

 

Section 2.06                            Termination or Reduction of Commitments.

 

(a)                                 Optional.  The Borrower may, upon written notice to the Administrative Agent, terminate the unused Commitments of any Class, or from time to time permanently reduce the unused Commitments of any Class, in each case without premium or penalty; provided that (i) any such notice shall be received by the Administrative Agent three (3) Business Days prior to the date of termination or reduction and (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof, or C$5,000,000 or any whole multiple of C$1,000,000 in excess thereof, as applicable, or, if less, the entire amount thereof.  Notwithstanding the foregoing, the Borrower may rescind or postpone any notice of termination of the Commitments if such termination would have resulted from a refinancing of all or any portion of any Facility or Facilities, which refinancing shall not be consummated or otherwise shall be delayed.

 

(b)                                 Mandatory.  The Initial Canadian Term Commitment of each Term Lender shall be automatically and permanently reduced to C$0 upon the making of such Term Lender’s Initial Canadian Term Loans pursuant to Section 2.01(a).  The Initial U.S. Term Commitment of each Term Lender shall be automatically and permanently reduced to $0 upon the making of such Term Lender’s Initial U.S. Term Loans pursuant to Section 2.01(b).  The Effective Date Incremental Term Commitment of each 2018 Incremental Term Lender shall be automatically and permanently reduced to $0 upon the making of such 2018 Incremental Term Lender’s Effective Date Incremental Term Loans pursuant to Section 2.01(c).  The Delayed Draw Commitment of each Lender shall be automatically and permanently reduced (x) by the aggregate principal amount of Delayed Draw Term Loans made by such Lender pursuant to Section 2.01(c) and (y) if not earlier so reduced, to $0 on the Delayed Draw Commitment Termination Date upon the funding (if any) of Delayed Draw Term Loans permitted to be made on such date.

 

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Section 2.07                            Repayment of Loans.  (a) The Borrower shall repay to the Administrative Agent for the ratable account of the Appropriate Lenders (i) on the last Business Day of each March, June, September and December, commencing with the last Business Day of December, 2016, an aggregate amount equal to 0.25% of the aggregate principal amount of all Initial Term Loans outstanding on the Closing Date (as such repayment amount shall be reduced as a result of the application of prepayments in accordance with the order of priority determined under Section 2.05); provided that at the time of any effectiveness of any Extension Amendment with respect to the Initial Term Loans, the scheduled amortization with respect to the Initial Term Loans set forth above shall be reduced ratably to reflect the percentage of Initial Term Loans converted to Extended Term Loans pursuant to such Extension Amendment (but will not affect the amount of amortization received by a given Lender with outstanding Initial Term Loans) and (ii) on the Maturity Date for the Initial Term Loans, the aggregate principal amount of all Initial Term Loans outstanding on such date; provided that the repayments under this clause may be adjusted to account for the addition of any New Term Loans that are Initial Term Loans.  All Loans shall be repaid, whether pursuant to this Section 2.07 or otherwise, in the currency in which they were made.

 

(b)                                 The Borrower shall repay to the Administrative Agent for the ratable account of the Appropriate Lenders (i) on the last Business Day of each March, June, September and December, commencing with the first full quarter after the First Amendment Effective Date, an aggregate principal amount equal to 0.25% of the sum of (x) the aggregate principal amount of all Effective Date Incremental Term Loans outstanding on the First Amendment Effective Date plus (y) the aggregate principal amount of all Delayed Draw Term Loans (if any) outstanding prior to or on the Delayed Draw Commitment Termination Date$6,548,840.85 (as such repayment amount shall be reduced as a result of the application of prepayments in accordance with the order of priority determined under Section 2.05); provided that at the time of any effectiveness of any Extension Amendment with respect to the 2018 Incremental Term Loans, the scheduled amortization with respect to the 2018 Incremental Term Loans set forth above shall be reduced ratably to reflect the percentage of the 2018 Incremental Term Loans converted to Extended Term Loans pursuant to such Extension Amendment (but will not affect the amount of amortization received by a given Lender with outstanding 2018 Incremental Term Loans) and (ii) on the Maturity Date for the 2018 Incremental Term Loans, the aggregate principal amount of all 2018 Incremental Term Loans outstanding on such date; provided that the repayments under this clause may be adjusted to account for the addition of any New Term Loans that are 2018 Incremental Term Loans and for the Delayed Draw Term Loans to ensure such Delayed Draw Term Loans are “fungible” with the Effective Date Incremental Term Loans.  All Loans shall be repaid, whether pursuant to this Section 2.07 or otherwise, in the currency in which they were made.

 

Section 2.08                            Interest.  (a)  Subject to the provisions of Section 2.08(b), (i) each Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Adjusted Eurocurrency Rate for such Interest Period plus the Applicable Rate, (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the date on which the applicable Borrowing was made at a rate per annum equal to the Base Rate plus the Applicable Rate, (iii) each Canadian Prime Rate Loan shall bear interest on the outstanding principal amount thereof from the date on which the applicable Borrowing was made at a rate per annum equal to the Canadian Prime Rate plus the Applicable Rate, and (iv) each CDOR Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the CDOR Rate for such Interest Period plus the Applicable Rate,

 

(b)                                 The Borrower shall pay interest on past due amounts hereunder owing at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by 

 

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applicable Laws.  Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

(c)                                  Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

(d)                                 All computations of interest hereunder shall be made in accordance with Section 2.10.

 

(e)                                  Interest on each Loan shall be payable in the currency in which each Loan was made.

 

Section 2.09                            Fees.

 

(a)                                 Delayed Draw Ticking Fee. The Borrower shall pay to the Administrative Agent for the ratable account of the 2018 Incremental Term Lenders a ticking fee (the “Delayed Draw Ticking Fee”) for the period from and including the First Amendment Effective Date to but excluding the last day of the Delayed Draw Commitment Period, calculated in an amount equal to the average amount of the Delayed Draw Commitments, multiplied by a percentage per annum equal to (x) for any day in the period from and including the First Amendment Effective Date to and including the date that is 30 days after the First Amendment Effective Date, 0%, (y) for any day in the period from and including the date that is 31 days after the First Amendment Effective Date to and including the date that is 60 days after the First Amendment Effective Date, 50% of the Applicable Rate for Eurocurrency Rate Loans then in effect with respect to the Delayed Draw Term Loans and (z) for any day in the period from and including the date that is 61 days after the First Amendment Effective Date to and including the Delayed Draw Commitment Termination Date, 100% of the Applicable Rate for Eurocurrency Rate Loans then in effect with respect to the Delayed Draw Term Loans.  The Delayed Draw Ticking Fee shall be payable upon the earlier of (i) the making of any drawing of Delayed Draw Term Loans and (ii) the Delayed Draw Commitment Termination Date.

 

(b)                                 Other Fees.  The Borrower shall pay to the Administrative Agent and the Lead Arrangers such fees as shall have been separately agreed upon in writing (including pursuant to the Administrative Agent Fee Letter) in the amounts and at the times so specified.

 

Section 2.10                            Computation of Interest and Fees.  (a) All computations of interest for Base Rate Loans (other than to the extent calculated by reference to clause (c) of the definition of “Base Rate”) CDOR Rate Loans and Canadian Prime Rate Loans shall be made on the basis of a year of three hundred and sixty-five (365) days or three hundred and sixty-six (366) days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a three hundred and sixty (360) day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one day.  In computing interest on any Loan, the day such Loan is made or converted to a Loan of a different Type shall be included for purposes of calculating interest on a Loan of such different Type and the date such Loan is subsequently repaid or converted to a Loan of a different Type, as the case may be, shall be excluded.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error, and (b) for purposes of the Interest Act (Canada), (i)

 

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whenever any interest or fee under this Agreement is calculated using a rate based on a year of 360 days or 365 days, as the case may be, the rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (x) the applicable rate based on a year of 360 days or 365 days, as the case may be, (y) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (z) divided by 360 or 365, as the case may be, (ii) the principle of deemed reinvestment of interest does not apply to any interest calculation under this Agreement, and (iii) the rates of interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields.

 

Section 2.11                            Evidence of Indebtedness.  (a)  Subject to Section 10.07(c), the Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and evidenced by one or more entries in the Register maintained by the Administrative Agent, acting solely for purposes of Treasury Regulation Section 5f.103-1(c), as a non-fiduciary agent for the Borrower.  The accounts or records maintained by the Administrative Agent and each Lender shall be prima facie evidence absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Term Note or Term Notes payable to such Lender, which shall, subject to Section 10.07(c), evidence such Lender’s Loans of the applicable Class or Classes in addition to such accounts or records.  Each Lender may attach schedules to its Term Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

 

(b)                                 [reserved].

 

(c)                                  Entries made in good faith by the Administrative Agent in the Register pursuant to Sections 2.11(a), and by each Lender in its account or accounts pursuant to Sections 2.11(a), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement and the other Loan Documents, absent manifest error; provided that the failure of the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement and the other Loan Documents.

 

(d)                                 Notwithstanding anything to the contrary contained above in this Section 2.11 or elsewhere in this Agreement, Term Notes shall only be delivered to Lenders which at any time specifically request the delivery of such Term Notes.  No failure of any Lender to request, maintain, obtain or produce a Term Note evidencing its Loans to the Borrower shall affect or in any manner impair the obligations of the Borrower to pay the Loans (and all related Obligations) incurred by the 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 the various Loan Documents.

 

Section 2.12                            Payments Generally.  (a)  All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is 

 

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owed, at the Administrative Agent’s Office for payment in Canadian Dollars or U.S. Dollars, as applicable, and in Same Day Funds not later than 2:00 p.m. (New York City time) on the date specified herein.  The Administrative Agent will promptly distribute to each Appropriate Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. (New York City time) shall, at the option of the Administrative Agent, be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.

 

(b)                                 If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be; provided that, if such extension would cause payment of interest on or principal of Eurocurrency Rate Loans or CDOR Rate Loans to be made in the next succeeding calendar month, such payment shall be made on the immediately preceding Business Day.

 

(c)                                  (i)  Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Eurocurrency Rate Loans or CDOR Rate Loans (or, in the case of any Borrowing of Base Rate Loans or Canadian Prime Rate Loans, prior to 12:00 noon (New York City time) on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of Base Rate Loans or Canadian Prime Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to the applicable Borrowing.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

(ii)                                  Payments by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Appropriate Lenders the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Appropriate Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the 

 

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Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this Section 2.12(c) shall be conclusive, absent manifest error.

 

(d)                                 If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

(e)                                  The obligations of the Lenders hereunder to make Loans and to make payments pursuant to Section 9.07 are several and not joint.  The failure of any Lender to make any Loan or to make any payment under Section 9.07 on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under Section 9.07.

 

(f)                                   Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

(g)                                  Whenever any payment received by the Administrative Agent under this Agreement or any of the other Loan Documents is insufficient to pay in full all amounts due and payable to the Administrative Agent and the Lenders under or in respect of this Agreement and the other Loan Documents on any date, such payment shall be distributed by the Administrative Agent and applied by the Administrative Agent and the Lenders in the order of priority set forth in Section 8.03.  If the Administrative Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Loan Documents under circumstances for which the Loan Documents do not specify the manner in which such funds are to be applied, the Administrative Agent may, but shall not be obligated to, elect to distribute such funds to each of the Lenders in accordance with such Lender’s Pro Rata Share or other applicable share provided for under this Agreement of the Outstanding Amount of all Loans outstanding at such time, in repayment or prepayment of such of the outstanding Loans then owing to such Lender.

 

Section 2.13                            Sharing of Payments, Etc.  If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Loans made by it, any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) in excess of its Pro Rata Share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) from the other Lenders such participations in the Loans made by them as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Loans with each of them in accordance with their respective Pro Rata Shares; provided that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 10.06 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s Pro Rata Share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon.  The provisions of this clause shall not be 

 

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construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement as in effect from time to time or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant permitted hereunder.  The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by applicable Laws, exercise all its rights of payment (including the right of setoff, but subject to Section 10.09) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section 2.13 and will in each case notify the Lenders following any such purchases or repayments.  Each Lender that purchases a participation pursuant to this Section 2.13 shall from and after  such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.

 

Section 2.14                            Incremental Credit Extensions.  (a)  The Borrower may at any time or from time to time after the Closing Date, by notice to the Administrative Agent (whereupon the Administrative Agent shall promptly deliver a copy to each of the Lenders), request one or more additional tranches of term loans (the “New Term Loans”), which may be of the same Facility and Class as any existing Class of Term Loans (a “Term Loan Increase”), a separate class of Term Loans (collectively with any Term Loan Increase, the “New Term Commitments”) or a new revolving facility to be provided hereunder (“New Revolving Commitments” and, together with any New  Term Commitments, the “New Commitments”); provided that (i) both immediately before and immediately after the effectiveness of any Incremental Amendment referred to below (or, in the case of a Permitted Acquisition or permitted Investment, on the date of the execution of (x) the definitive agreement in connection therewith and (y) any Commitment in respect of New Term Loans or New Revolving Commitments), no Event of Default (or, in the case of a Permitted Acquisition, a permitted Investment or the First Amendment Transactions, no Specified Default) shall exist and (ii) both immediately before and immediately after the effectiveness of any Incremental Amendment referred to below either (A) the condition precedent in Section 4.02(a) shall be satisfied (for this purpose without regard to the exclusion of the applicability of this condition to Borrowings pursuant to Incremental Amendments by operation of the lead-in paragraph of Section 4.02) or (B) with respect to any incurrence of Loans pursuant to an Incremental Amendment the purpose of which is to finance a Permitted Acquisition or permitted Investment or, if the Lenders party to such Incremental Amendment consent, the Specified Representations shall be true and correct in all material respects.

 

Each tranche of New Term Loans or New Revolving Commitments shall be in an aggregate principal amount that is not less than C$15,000,000 or US$15,000,000, as applicable (provided that such amount may be less than C$15,000,000 or US$15,000,000 if such lesser amount is approved by the Administrative Agent or such amount represents all remaining availability under the limit set forth in the next sentence).  Notwithstanding anything to the contrary herein, the aggregate principal amount of the New Term Loans or New Revolving Commitments, when added to the aggregate principal amount of any Incremental Equivalent Debt incurred or issued substantially simultaneously with the incurrence of such New Term Loans or New Revolving Commitments, shall not exceed the Available Incremental Amount at the time of incurrence or issuance thereof.

 

(b)                                 The terms and provisions of New Commitments (and the Loans in respect of the foregoing), of any Class shall be as agreed between the Borrower and the lenders providing such New Commitments; provided, that:

 

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(i)                                     such New Commitments shall (x) rank pari passu in right of payment and security with the Initial Term Loans made on the Closing Date and the 2018 Incremental Term Loans and (y) may not be (I) secured by any assets other than Collateral or (II) guaranteed by any Person other than a Guarantor,

 

(ii)                                  (A) New Term Loans shall not (other than in respect of any such New Term Loans constituting a bridge financing that converts into Indebtedness otherwise meeting the requirements of this clause (ii)) mature earlier than the Latest Maturity Date as in effect as of the applicable Incremental Facility Closing Date and (B) New Revolving Commitments shall not mature and shall require no mandatory commitment reduction earlier than the Latest Maturity Date as in effect as of the applicable Incremental Facility Closing Date,

 

(iii)                               New Term Loans shall (other than in respect of any such New Term Loans constituting a bridge financing that converts into Indebtedness meeting the requirement of this clause (iii)) have a Weighted Average Life to Maturity of no less than the Weighted Average Life to Maturity as then in effect for any Class of Term Loans outstanding as of the applicable Incremental Facility Closing Date,

 

(iv)                              the currency (with the consent of the Administrative Agent, not to be unreasonably withheld, if other than Canadian Dollars or U.S. Dollars), discounts, premiums, fees, optional prepayment and redemptions terms and, subject to clauses (ii) and (iii) above, the amortization schedule, in each case applicable to any New Term Loans or New Revolving Commitments shall be determined by the Borrower and the Lenders thereunder,

 

(v)                                 the interest rate (including margin and floors) applicable to any New Term Loans or New Revolving Commitments will be determined by the Borrower and the Lenders providing such New Term Loans or New Revolving Commitments; provided that, if the All-In Yield applicable to such New Term Loans incurred prior to the first anniversary of the First Amendment Effective Date pursuant to clause (a) of the Available Incremental Amount exceeds (i) the All-In Yield of the Initial Term Loans and the 2018 Incremental Term Loans of the same currency at such time by more than 50 basis points, then the interest rate margins for the Initial Term Loans and the 2018 Incremental Term Loans of such same currency shall be increased to the extent necessary so that the All-In Yield of such Initial Term Loans or 2018 Incremental Term Loans is equal to the All-In Yield of such New Term Loans minus 50 basis points; provided that any increase in All-In Yield to any Initial Term Loan or 2018 Incremental Term Loan due to the application or imposition of a Eurocurrency Rate, Base Rate or Canadian Prime Rate or CDOR Rate floor on any New Term Loan shall be effected, at the Borrower’s option, (x) through an increase in (or implementation of, as applicable) any Eurocurrency Rate, Base Rate or Canadian Prime Rate or CDOR Rate floor applicable to such Initial Term Loan or 2018 Incremental Term Loan, (y) through an increase in the Applicable Rate for such Initial Term Loan or 2018 Incremental Term Loan or (z) any combination of (x) and (y) above,

 

(vi)                              the New Term Loans may provide for the ability to participate on a pro rata basis, less than pro rata basis or greater than pro rata basis in any voluntary repayments or prepayments of principal of Term Loans hereunder and on a pro rata basis or less than a pro rata basis (but not greater than a pro rata basis except in the case of a prepayment of such New Term Loans under Section 2.05(b)(iii)(B)) in any mandatory repayments or prepayments of principal of Term Loans hereunder it being agreed that the Borrower may, at its option, elect to prepay or terminate earlier maturing tranches on a greater than pro rata basis,

 

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(vii)                           the New Revolving Commitments shall contain borrowing, letter of credit issuance, repayment and termination of commitment procedures and other terms and conditions as determined by the Borrower and the Lenders providing such New Revolving Commitments,

 

(viii)                        [reserved], and

 

(ix)                              except (1) for covenants or other provisions applicable only to periods after the Latest Maturity Date of the Term Loans (which shall be deemed to be reasonably satisfactory to the Administrative Agent), and (2) pricing, fees, rate floors, premiums, optional payment and redemption terms (subject to the preceding clauses (i) through (viii)), the terms and conditions applicable to such New Revolving Commitments, New Term Commitments and New Term Loans may be different from those of the Term Loans, to the extent (x) such differences are agreed upon by the Borrower and the Lenders in respect of such New Revolving Commitments or New Term Commitments, as applicable, and are reasonably acceptable to the Administrative Agent or (y) reflect market terms and conditions at the time of incurrence or issuance thereof, as reasonably determined by the Borrower; provided that in the case of a Term Loan Increase, the terms, provisions and documentation of such Term Loan Increase shall be identical (other than with respect to upfront fees and OID and arrangement, structuring or similar fees payable in connection therewith) to the applicable Term Loans being increased, as existing on the respective Incremental Facility Closing Date; provided, further, that the terms of any New Term Commitments shall not include any financial maintenance covenant unless such financial maintenance covenant shall also apply for the benefit of the Term Commitments (and any Term Loans made pursuant thereto); provided, further, that the terms of any New Revolving Commitment may include a financial maintenance covenant or related equity cure so long as the Administrative Agent shall have been given prompt written notice thereof and this Agreement is amended to include such financial maintenance covenant or related equity cure for the benefit of each Facility (provided, further, however, that, if the applicable new financial maintenance covenant is a “springing” financial maintenance covenant for the benefit of such New Revolving Commitment or covenant only applicable to, or for the benefit of, such New Revolving Commitment, such financial maintenance covenant shall be automatically included in this Agreement only for the benefit of each New Revolving Commitment hereunder (and not for the benefit of any other Facility hereunder)).

 

(c)                                  Each notice from the Borrower pursuant to this Section shall set forth the requested amount and proposed terms of the relevant New Term Loans or New Revolving Commitment and the date on which the Borrower proposes that the same shall be effective (each, an “Incremental Amount Date”).  New Term Loans or New Revolving Commitments may be made by any existing Lender (but no existing Lender (including the Administrative Agent in its capacity as an existing Lender) shall have any obligation to make a portion of any New Term Loan or New Revolving Commitments) or by any Additional Lender; provided that the Administrative Agent shall have consented (not to be unreasonably conditioned, withheld or delayed) to such Lender’s or Additional Lender’s making such New Term Loans or New Revolving Commitments if such consent would be required under Section 10.07(b) for an assignment of Loans to such Lender or Additional Lender; provided, further, that no Additional Lender that is an Affiliated Lender or an Affiliated Debt Fund shall be permitted to make or provide New Term Loans or New Revolving Commitments, unless the requirements of Sections 10.07(h) and (i) (as applicable) shall be met, assuming that the making or provision of such New Term Loans or New Revolving Commitments is an assignment of such New Term Loans or New Revolving Commitments to such Person.  Commitments in respect of New Term Loans or New Revolving Commitments shall become Commitments under this Agreement pursuant to an amendment (an “Incremental Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each existing Lender agreeing to provide such Commitment, if any, each Additional Lender agreeing to provide such Commitment, if any, and the Administrative Agent.  The Incremental 

 

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Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.14 and, in the case of any Incremental Amendment with respect to New Revolving Commitments, any other terms, conditions and mechanics customary for a revolving facility of the type being provided pursuant to the New Revolving Commitments). The effectiveness of (and, in the case of any Incremental Amendment for New Term Loans, any Credit Extension under) any Incremental Amendment shall be subject to the satisfaction on the date thereof (each, an “Incremental Facility Closing Date”) of each of the conditions as the Borrower and the Lenders providing such Commitment shall agree, including, to the extent reasonably requested by the Administrative Agent, receipt by the Administrative Agent of (a) (i) customary officer’s certificates and board resolutions and (ii) customary opinions of counsel to the Loan Parties, in each case, consistent with those delivered on the Closing Date (other than changes to legal opinions resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably  satisfactory to the Administrative Agent), (b) a First Lien Intercreditor Agreement or Junior Lien Intercreditor Agreement, as appropriate, and (c) supplemental or reaffirmation agreements and/or such amendments to the Collateral Documents and/or the Guaranty as may be reasonably requested by the Administrative Agent (including Mortgage amendments) in order to ensure that any New Commitment are provided with the benefit of the applicable Loan Documents.  The Borrower shall use the proceeds (if any) of the New Term Loans or New Revolving Commitments for any purpose not prohibited by this Agreement.  No Lender shall be obligated to commit to provide any New Term Loans or New Revolving Commitments unless it so agrees.

 

(d)                                 [reserved].

 

(e)                                  Any New Term Commitment may be designated a separate Class of Term Loans for all purposes of this Agreement.  This Section 2.14 shall supersede any provisions in Section 2.05, Section 2.12, Section 2.13, Section 8.03 or Section 10.01 to the contrary.

 

Section 2.15                            Refinancing Amendments.  (a)  The Borrower may, at any time or from time to time after the Closing Date, by notice to the Administrative Agent (a “Refinancing Loan Request”), request (i) the establishment of one or more new Classes of Term Loans under this Agreement (any such new Class, “New Refinancing Term Commitments”) or (ii) increases to one or more existing Classes of term loans under this Agreement (any such increase to an existing Class, collectively with New Refinancing Term Commitments, “Refinancing Term Commitments”), in each case, established in exchange for, or to extend, renew, replace, repurchase, retire or refinance, in whole or in part, as selected by the Borrower, any one or more of the existing Class or Classes of Loans or Commitments (with respect to a particular Refinancing Term Commitment or Refinancing Term Loan, such existing Loans or Commitments, “Refinanced Debt”), whereupon the Administrative Agent shall promptly deliver a copy of each such notice to each of the Lenders.

 

(b)                                 Any Refinancing Term Loans made pursuant to New Refinancing Term Commitments may be designated a separate Class of Refinancing Term Loans for all purposes of this Agreement.  On any Refinancing Facility Closing Date on which any Refinancing Term Commitments of any Class are effected, subject to the satisfaction of the terms and conditions in this Section 2.15, (i) each Refinancing Term Lender of such Class shall make a Term Loan to the Borrower (a “Refinancing Term Loan”) in an amount equal to its Refinancing Term Commitment of such Class and (ii) each Refinancing Term Lender of such Class shall become a Lender hereunder with respect to the Refinancing Term Commitment of such Class and the Refinancing Term Loans of such Class made pursuant thereto.

 

(c)                                  Each Refinancing Loan Request from the Borrower pursuant to this Section 2.15 shall set forth the requested amount and proposed terms of the relevant Refinancing Term Loans and 

 

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identify the Refinanced Debt with respect thereto.  Refinancing Term Loans may be made by any existing Lender (but no existing Lender shall have any obligation to make any portion of any Refinancing Term Loan) or by any Additional Lender; provided that the Administrative Agent shall have consented (not to be unreasonably conditioned, withheld or delayed) to such Lender’s or Additional Lender’s making such Refinancing Term Loans if such consent would be required under Section 10.07(b) for an assignment of Loans to such Lender or Additional Lender; provided, further, that no Additional Lender that is an Affiliated Lender or an Affiliated Debt Fund shall be permitted to make or provide Refinancing Term Loans unless the requirements of Sections 10.07(h) and (i) (as applicable) shall be met, assuming that the making or provision of such Refinancing Term Loans is an assignment of such Refinancing Term Loans to such Person (each such existing Lender or Additional Lender providing such Commitment or Loan, a “Refinancing Term Lender” and, collectively, “Refinancing Lenders”).

 

(d)                                 The effectiveness of any Refinancing Amendment, and the Refinancing Term Commitments thereunder, shall be subject to the satisfaction on the date thereof (a “Refinancing Facility Closing Date”) of each of the following conditions, together with any other conditions set forth in such Refinancing Amendment:

 

(i)                                     after giving effect to such Refinancing Term Commitments, the conditions of Sections 4.02(a) and (b) shall be satisfied (it being understood that all references to “the date of such Credit Extension” or similar language in such Section 4.02 shall be deemed to refer to the applicable Refinancing Facility Closing Date),

 

(ii)                                  each Refinancing Term Commitment shall be in an aggregate principal amount that is not less than C$5,000,000 and shall be in an increment of C$1,000,000 (provided that such amount may be less than C$5,000,000 and not in an increment of C$1,000,000 if such amount is equal to the entire outstanding principal amount of Refinanced Debt that is in the form of Term Loans),

 

(iii)                               to the extent reasonably requested by the Administrative Agent, the receipt by the Administrative Agent (A) (I) customary officer’s certificates and board resolutions and (II) customary opinions of counsel to the Loan Parties, in each case, consistent with those delivered on the Closing Date (other than changes to legal opinions resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to the Administrative Agent), (B) a First Lien Intercreditor Agreement or Junior Lien Intercreditor Agreement, as appropriate, and (C) supplemental or reaffirmation agreements and/or such amendments to the Collateral Documents as may be reasonably requested by the Administrative Agent (including Mortgage amendments, if applicable) in order to ensure that any Refinancing Term Commitment is provided with the benefit of the applicable Loan Documents, and

 

(iv)                              the Refinancing Term Loans made pursuant to any increase in any existing Class of Term Loans shall be added to (and form part of) each Borrowing of outstanding Term Loans under the respective Class so incurred on a pro rata basis (based on the principal amount of each Borrowing) so that each Lender under such Class will participate proportionately in each then outstanding Borrowing of Term Loans under such Class in accordance with its Pro Rata Share.

 

(e)                                  The terms and provisions of the Refinancing Term Commitments (and the Loans in respect of the foregoing), of any Class shall be as agreed between the Borrower and the lenders providing such Refinancing Term Commitments; provided, that:

 

(i)                                     such Refinancing Term Commitments shall (x) rank pari passu or junior in right of payment and shall be unsecured or rank pari passu or junior in right of security with all 

 

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Term Loans, Permitted Pari Passu Secured Refinancing Debt and (to the extent secured by all or a portion of the Collateral on a pari passu basis with any of the foregoing) any Incremental Equivalent Debt and (y) may not be (I) if secured, secured by any assets other than Collateral or (II) guaranteed by any Person other than a Guarantor or (III) secured by security documentation that is materially more restrictive to the Borrower and the Guarantors than the Loan Documents,

 

(ii)                                  Refinancing Term Loans shall not mature earlier than the Maturity Date of the applicable Refinanced Debt as then in effect,

 

(iii)                               Refinancing Term Loans shall have a Weighted Average Life to Maturity of no less than the Weighted Average Life to Maturity as then in effect for the applicable Refinanced Debt (prior to any extension thereto),

 

(iv)                              the currency, discounts, premiums, fees, optional prepayment and redemptions terms and, subject to clauses (ii) and (iii) above, the amortization schedule applicable to any Refinancing Term Loans shall be determined by the Borrower and the Lenders thereunder; provided that a currency other than Canadian Dollars and U.S. Dollars shall be subject to the consent of the Administrative Agent (not to be unreasonably withheld),

 

(v)                                 the interest rate (including margin and floors) applicable to any Refinancing Term Loans will be determined by the Borrower and the Lenders providing such Refinancing Term Loans,

 

(vi)                              the Refinancing Term Loans may provide for the ability to participate on a pro rata basis, greater than or less than pro rata basis in any voluntary repayments or prepayments of principal of Term Loans hereunder and on a pro rata basis or less than a pro rata basis (but not greater than a pro rata basis except in the case of a prepayment under Section 2.05(b)(iii)(B)) in any mandatory repayments or prepayments of principal of Term Loans hereunder,

 

(vii)                           [reserved]

 

(viii)                        [reserved],

 

(ix)                              Refinancing Term Loans shall not have a greater principal amount than the principal amount of the applicable Refinanced Debt plus any accrued but unpaid interest and fees on such Refinanced Debt plus existing commitments unutilized under such Refinanced Debt to the extent permanently terminated at the time of incurrence of such new Indebtedness plus the amount of any premium or penalty or premium required to be paid under the terms of the instrument or documents governing such Refinanced Debt and any reasonable fees and expenses (including OID, upfront fees or similar fees) incurred in connection with the issuance of such Refinancing Term Loans,

 

(x)                                 [reserved],

 

(xi)                              except as set forth above, the material terms and conditions of any such Refinancing Term Commitments (and the Loans in respect thereof) shall be (taken as a whole) no more favorable (as reasonably determined by the Borrower in good faith) to the Refinancing Lenders providing such Refinancing Term Commitments than those applicable to the applicable Refinanced Debt (except for (1) covenants or other provisions applicable only to periods after the Latest Maturity Date and (2) pricing, fees, rate floors, premiums, optional prepayment or redemption terms) unless such terms and conditions reflect market terms and conditions for such Refinancing Term 

 

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Commitments at the time of incurrence or issuance thereof (in each case, as determined by the Borrower in good faith); provided, that the terms of any New Term Commitments shall not include any financial maintenance covenant unless such financial maintenance covenant shall also apply for the benefit of the Term Commitments (and any Term Loans made pursuant thereto), and

 

(xii)                           notwithstanding the foregoing, Refinancing Term Commitments of the kind described in Section 2.15(a)(A)(ii) (and the Refinancing Loans made pursuant thereto) shall form part of the same Class as, and have identical terms to, the applicable Class of Term Loans to which they apply.

 

(f)                                   Commitments in respect of Refinancing Term Loans shall become Commitments under this Agreement pursuant to an amendment (a “Refinancing Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each existing Lender agreeing to provide such Commitment, if any, each Additional Lender agreeing to provide such Commitment, if any, and the Administrative Agent.  The Refinancing Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.15.  The Borrower will use the proceeds, if any, of the Refinancing Term Loans in exchange for, or to extend, renew, replace, repurchase, retire or refinance, and shall permanently terminate applicable commitments under, the applicable Refinanced Debt, in each case, in accordance with Section 2.05(b)(iii)(B).

 

(g)                                  [reserved].

 

(h)                                 Any New Refinancing Term Commitment shall be designated a separate Class of Term Loans for all purposes of this Agreement.

 

(i)                                     In lieu of incurring any Refinancing Term Loans, the Borrower may at any time or from time to time after the Closing Date issue, incur or otherwise obtain (it being understood that no Lender shall be required to provide any such Indebtedness) (A) secured Indebtedness under a separate agreement in the form of one or more series of senior secured notes that are secured on a pari passu basis with the Obligations (but without regard to the control of remedies) (such notes, “Permitted Pari Passu Secured Refinancing Debt”), (B) secured Indebtedness in the form of one or more series of second lien (or other junior lien) secured notes or second lien (or other junior lien) secured loans, in each case, that are secured on a pari passu or subordinated basis with the Obligations (such notes or loans, “Permitted Junior Secured Refinancing Debt”) and (C) senior unsecured or subordinated unsecured Indebtedness in the form of one or more series of senior unsecured or subordinated unsecured notes or loans (such notes or loans, “Permitted Unsecured Refinancing Debt” and together with Permitted Pari Passu Secured Refinancing Debt and Permitted Junior Secured Refinancing Debt, “Refinancing Equivalent Debt”), in each case, in exchange for, or to extend, renew, replace, repurchase, retire or refinance, in whole or in part, any existing Class or Classes of Loans (such Loans, “Refinanced Loans”).

 

(i)                                     Any Refinancing Equivalent Debt:

 

(A)                               (1) shall not have a final scheduled maturity date earlier than the Maturity Date of the Refinanced Loans, (2) shall not have a Weighted Average Life to Maturity shorter than the remaining Weighted Average Life to Maturity of the applicable Refinanced Loans, (3) shall not be guaranteed by Persons other than Guarantors, (4) shall not have a greater principal amount than the principal amount of the Refinanced Loans plus any accrued but unpaid interest and fees on such Refinanced Loans plus existing commitments unutilized under such Refinanced Loans to the extent permanently terminated at the time of incurrence of such new 

 

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Indebtedness plus the amount of any premium or penalty or premium required to be paid under the terms of the instrument or documents governing such Refinanced Loans and any reasonable fees and expenses (including OID, upfront fees or similar fees) incurred in connection with the issuance of such Refinancing Equivalent Debt, and (5) the covenants and events of default applicable to such Refinancing Equivalent Debt shall not be, when taken as a whole, materially more favorable, to the holders of such Indebtedness than those applicable to the Refinanced Loans (except for covenants or other provisions applicable only to periods after the Maturity Date for such Refinanced Loans) unless such covenants and events of default for such Refinancing Equivalent Debt are reflective of market terms and conditions for the type of Indebtedness incurred or issued at the time of issuance or incurrence thereof (in each case, as determined by the Borrower in good faith); provided that a certificate of the Borrower delivered to the Administrative Agent at least two (2) Business Days prior to the incurrence of such Indebtedness stating that the Borrower has reasonably determined in good faith that such covenants and defaults satisfy the foregoing requirement shall be conclusive evidence that such covenants and defaults satisfy the foregoing requirement unless the Administrative Agent notifies the Borrower within such two (2) Business Day period that it disagrees with such determination (including a reasonably detailed description of the basis upon which it disagrees);

 

(B)                               (1) if either Permitted Pari Passu Secured Refinancing Debt or Permitted Junior Secured Refinancing Debt, shall be subject to security agreements substantially the same as the Collateral Documents (with such differences as are appropriate to reflect the nature of such Refinancing Equivalent Debt and are otherwise reasonably satisfactory to the Administrative Agent), (2) if Permitted Pari Passu Secured Refinancing Debt, (x) shall be secured by all or a portion of the Collateral on a pari passu basis (but without regard to control of remedies) with the Obligations and shall not be secured by any property or assets other than the Collateral, and (y) shall be subject to a First Lien Intercreditor Agreement, and (3) if Permitted Junior Secured Refinancing Debt, (x) shall be secured by the Collateral on a second priority (or other junior priority) basis to the Liens securing the Obligations and shall not be secured by any property or assets of the Borrower or any Restricted Subsidiary other than the Collateral, and (y) shall be subject to the Junior Lien Intercreditor Agreement; and

 

(C)                               shall be incurred, and the proceeds thereof used, solely to repay, repurchase, retire or refinance the Refinanced Loans and terminate all commitments thereunder in accordance with Section 2.05(b)(iii)(B).

 

(j)                                    This Section 2.15 shall supersede any provisions in Section 2.05, Section 2.12, Section 2.13, Section 8.03 or Section 10.01 to the contrary.

 

Section 2.16                            [Reserved].

 

Section 2.17                            Extended Term Loans.  (a)  The Borrower may at any time and from time to time request that all or a portion of the Term Loans of a given Class (each, an “Existing Term Loan Facility”) be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of such Loans (any such Term Loans which have been so converted, “Extended Term Loans”) and to provide for other terms consistent with this Section 2.17.  In order to establish any Extended Term Loans, the Borrower shall provide an Extension Request to the Administrative Agent (who shall provide a copy of such notice to each of the Lenders under the applicable Existing Term Loan Facility) setting forth the proposed terms of the Extended Term Loans to be established, which shall (x) be identical as offered to each Lender under such applicable Existing Term Loan Facility (including as to the proposed interest rates and fees payable, but excluding any arrangement, structuring or other similar fees payable in connection therewith that are not generally 

 

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shared with the relevant Lenders) and offered to each Lender under such Existing Term Loan Facility in accordance with its Pro Rata Share with respect thereto and (y) be identical to the Term Loans under the Existing Term Loan Facility from which such Extended Term Loans are to be converted, except that: (i) the scheduled amortization payments of principal, if any, and/or scheduled final maturity date of the Extended Term Loans shall be as set forth in the applicable Extension Amendment, subject to the provisos below, (ii) the All-In Yield with respect to the Extended Term Loans (whether in the form of interest rate margin, upfront fees, funding discounts, OID, prepayment premiums or otherwise) may be different than the All-In Yield for the Term Loans of such Existing Term Loan Facility, in each case, to the extent provided in the applicable Extension Amendment, (iii) the applicable Extension Amendment may provide for other covenants and terms that apply solely to any period after the Latest Maturity Date, and (iv) Extended Term Loans may have optional prepayment terms (including call protection and prepayment premiums) and mandatory repayment terms (other than as to scheduled amortization and final maturity date) as may be agreed by the Borrower and the Lenders thereof; provided that no Extended Term Loans may participate on a greater than pro rata basis in any mandatory prepayment with any then existing Class of Term Loans (other than scheduled amortization and in the case of a prepayment under Section 2.05(b)(iii)(B)); provided, further, that (A) in no event shall the final maturity date of any Extended Term Loans of a given Term Loan Extension Series at the time of establishment thereof be earlier than the final maturity of the Existing Term Loan Facility being extended and (B) scheduled amortization applicable to such Extended Term Loans shall not exceed (or occur on different dates than) the scheduled amortization (exclusive of payments required at maturity) which previously applied to the Term Loans that are being extended (which regular amortization in the same amounts (or lesser amounts, if agreed by the applicable Extending Term Lenders) may continue after the final maturity of the Existing Term Loan Facility being extended) at any time prior to the final maturity of the Existing Term Loan Facility being extended.  Any Class of Extended Term Loans converted pursuant to any Extension Request shall be designated a series (each, a “Term Loan Extension Series”) of Extended Term Loans for all purposes of this Agreement; provided that any Extended Term Loans converted from an Existing Term Loan Facility may, to the extent provided in the applicable Extension Amendment, be designated as an increase in any previously established Term Loan Extension Series with respect to such Existing Term Loan Facility (in which case scheduled amortization with respect thereto shall be proportionally increased).  Each Term Loan Extension Series of Extended Term Loans incurred under this Section 2.17 shall be in an aggregate principal amount that is not less than C$5,000,000 (or, in the case of any Class of Term Loans with an entire outstanding principal amount of less than C$5,000,000 that is to be extended in full, such outstanding principal amount) (unless such extension is made pursuant to clause (e) below) and the Borrower may impose an Extension Minimum Condition with respect to any Extension Request for Extended Term Loans, which may be waived by the Borrower in its sole discretion.

 

(b)                                 The Borrower shall provide the applicable Extension Request (which may be in the form of a term sheet posted to a website for the benefit of the Lenders) at least five (5) Business Days prior to the date on which Lenders under the Existing Term Loan Facility are requested to respond (although any changes to terms previously announced shall only require one (1) Business Day’s notice), and shall agree to such procedures, if any, as may be reasonably requested by, or acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Section 2.17.  No Lender shall have any obligation to agree to have any of its Term Loans of any Existing Term Loan Facility converted into Extended Term Loans pursuant to any Extension Request or offer made pursuant to clause (e) below.  Any Lender (each, an “Extending Term Lender”) wishing to have all or a portion of its Term Loans under the Existing Term Loan Facility subject to such Extension Request converted into Extended Term Loans shall notify the Administrative Agent (each, a “Term Loan Extension Election”) on or prior to the date specified in such Extension Request of the amount of its Term Loans under the Existing Term Loan Facility which it has elected to request be converted into Extended Term Loans (subject to any customary minimum denomination requirements imposed by the Administrative Agent).  In the event that the aggregate principal amount of Term Loans under the Existing Term Loan

 

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Facility in respect of which applicable Term Lenders shall have accepted the relevant Extension Request exceeds the amount of Extended Term Loans requested to be extended pursuant to the Extension Request, Term Loans subject to Term Loan Extension Elections shall be converted to Extended Term Loans on a pro rata basis (subject to rounding by the Administrative Agent, which shall be conclusive) based on the aggregate principal amount of Term Loans included in each such Term Loan Extension Election.

 

(c)                                  Extended Term Loans shall be established pursuant to an Extension Amendment amending the terms of this Agreement among the Borrower, the Administrative Agent and each Extending Term Lender providing an Extended Term Loan thereunder, which shall be consistent with the provisions set forth in Section 2.17(a) above and reasonably satisfactory to the Administrative Agent.  Each such Extension Amendment shall include representations (x) as to the accuracy of representations and warranties set forth in Article V of this Agreement and in the other Loan Documents in all material respects immediately before and after giving effect to such Extension Amendment and the transactions contemplated thereby and (y) that no Default shall have occurred and be continuing as of the effective date of such Extension Amendment, after giving effect to such Extension Amendment and the transactions contemplated thereby.  The effectiveness of any Extension Amendment shall be subject to any applicable Extension Minimum Condition (unless waived by the Borrower) and, to the extent reasonably requested by the Administrative Agent, be subject to receipt by the Administrative Agent of (i) board resolutions and officers’ certificates consistent with those delivered on the Closing Date, (ii) customary opinions of counsel to the Loan Parties reasonably acceptable to the Administrative Agent and (iii) supplemental or reaffirmation agreements and/or such amendments to the Collateral Documents (including Mortgage amendments) and/or the Guaranty as may be reasonably requested by the Administrative Agent in order to ensure that the Extended Term Loans are provided with the benefit of the applicable Loan Documents.  The Administrative Agent shall promptly notify each Lender as to the effectiveness of each such Extension Amendment.  Each of the parties hereto hereby (A) agrees that, notwithstanding anything to the contrary set forth in Section 10.01, this Agreement and the other Loan Documents may be amended pursuant to an Extension Amendment, without the consent of any other Lenders, to the extent reasonably required to (i) reflect the existence and terms of the Extended Term Loans incurred pursuant thereto (including changes and additional terms as agreed by the relevant Lenders and permitted pursuant to Section 2.17(a)) and (ii) effect such other amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section, and the Lenders hereby expressly and irrevocably, for the benefit of all parties hereto, authorize the Administrative Agent to enter into such Extension Amendment and (B) consents to the transactions contemplated by this Section 2.17 (including payment of interest, fees or premiums in respect of any Extended Term Loans on such terms as may be set forth in the relevant Extension Amendment).

 

(d)                                 No conversion of Loans pursuant to any Term Loan Extension in accordance with this Section 2.17 shall constitute a voluntary or mandatory payment or prepayment for purposes of this Agreement.

 

(e)                                  Notwithstanding anything to the contrary contained above, at any time following the establishment of a Term Loan Extension Series (and so long as the last sentence of Section 2.17(b) was not applicable thereto), the Borrower may offer any Lender of the relevant Existing Term Loan Facility (without being required to make the same offer to any or all other Lenders) who failed to make a Term Loan Extension Election in respect of all or a portion of its Term Loans on or prior to the date specified in the Extension Request relating to such Term Loan Extension Series the right to convert all or any portion of its Term Loans under the respective Existing Term Loan Facility into Extended Term Loans under such Term Loan Extension Series; provided that (A) such offer and any related acceptance (x) shall be in accordance with such procedures, if any, as may be reasonably requested by, or acceptable to, the Administrative Agent, (y) shall be on identical terms (including as to the proposed interest rates 

 

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and fees payable, but excluding any arrangement, structuring or other fees payable in connection therewith that are not generally shared with the relevant Lenders) to those offered to the Lenders who agreed to convert their Term Loans under the Existing Term Loan Facility into Extended Term Loans pursuant to the respective Extension Request and (z) shall result in proportionate increases to the scheduled amortization payments, if any, otherwise owing with respect to the Term Loan Extension Series, (B) any Lender which agrees to an extension pursuant to this clause (e) shall enter into a joinder agreement to the respective Extension Amendment in form and substance reasonably satisfactory to the Administrative Agent and the Borrower and executed by such Lender, the Administrative Agent, the Borrower (and the Required Lenders hereby irrevocably authorize the Administrative Agent to enter into any such joinder agreement) and (C) the Term Loans of any such Lender that are converted pursuant to this clause (e) shall be in an aggregate principal amount that is not less than C$1,000,000 (or, if such Lender’s outstanding Term Loans amount is less than C$1,000,000, such lesser amount), unless each of the Borrower and the Administrative Agent otherwise consents.

 

(f)                                   In the event that the Administrative Agent determines in its sole discretion that the allocation of Extended Term Loans of a given Term Loan Extension Series to a given Lender was incorrectly determined as a result of manifest administrative error in the receipt and processing of a Term Loan Extension Election timely submitted by such Lender in accordance with the procedures set forth in the applicable Extension Amendment, then the Administrative Agent, the Borrower and such affected Lender may (and hereby are authorized to), in their sole discretion and without the consent of any other Lender, notwithstanding anything to the contrary set forth in Section 10.01, enter into an amendment to this Agreement and the other Loan Documents (each, a “Corrective Term Loan Extension Amendment”) within 15 days following the effective date of such Extension Amendment, which Corrective Term Loan Extension Amendment shall (i) provide for the conversion and extension of Term Loans under the applicable Existing Term Loan Facility in such amount as is required to cause such Lender to hold Extended Term Loans of the applicable Term Loan Extension Series into which such other Term Loans were initially converted, in the amount such Lender would have held had such administrative error not occurred and had such Lender received the minimum allocation of the applicable Loans or Commitments to which it was entitled under the terms of such Extension Amendment in the absence of such error, (ii) be subject to the satisfaction of such conditions as the Administrative Agent, the Borrower and such Lender may agree (including conditions of the type required to be satisfied for the effectiveness of an Extension Amendment described in Section 2.17(c)), and (iii) effect such other amendments of the type (with appropriate reference and nomenclature changes) described in the last sentence of Section 2.17(c).

 

(g)                                  This Section 2.17 shall supersede any provisions in Section 2.05, Section 2.12, Section 2.13, Section 8.03 or Section 10.01 to the contrary.

 

Section 2.18                            [Reserved].

 

Section 2.19                            Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, such Defaulting Lender’s right to approve or disapprove any amendment, modification, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders and Required Facility Lenders.

 

Section 2.20                            Loan Repricing Protection.  At the time of the effectiveness of any Repricing Transaction that is consummated (i) with respect to the Initial Term Loans, prior to the six (6) month anniversary of the Closing Date or (ii) with respect to the 2018 Incremental Term Loans, prior to the six (6) month anniversary of the FirstSecond Amendment Effective Date, the Borrower agrees to pay to the Administrative Agent, for the ratable account of each Term Lender with Initial Term Loans or the 2018 Incremental Term Loans, as applicable, that are either prepaid, repaid, converted or otherwise 

 

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subjected to a pricing reduction in connection with such Repricing Transaction (including, if applicable, any Non-Consenting Lender required to assign its Initial Term Loans or 2018 Incremental Term Loans in connection therewith), a fee in an amount equal to 1.00% of (x) in the case of a Repricing Transaction described in clause (i) of the definition thereof, the aggregate principal amount of all Initial Term Loans or 2018 Incremental Term Loans, as applicable, prepaid, refinanced, converted, substituted or replaced in connection with such Repricing Transaction and (y) in the case of a Repricing Transaction described in clause (ii) of the definition thereof, the aggregate principal amount of all Initial Term Loans or 2018 Incremental Term Loans, as applicable, outstanding on such date that are subject to an effective pricing reduction pursuant to such Repricing Transaction.  Such fees shall be earned, due and payable upon the date of the effectiveness of such Repricing Transaction.  For the avoidance of doubt, the Additional 2018 Incremental Term Loans constitute 2018 Incremental Term Loans for all purposes of this Section 2.20.

 

Section 2.21                            Appointment of Joint and Several Co-Borrowers.   (a)  The Initial Borrower (i) hereby designates, as of the Second Amendment Effective Date, each of GFL Environmental Holdings (US), Inc. and Betty Merger Sub Inc. (the “Second Amendment Co-Borrowers”) as a “Co-Borrower” hereunder and (ii) may, at any time following the Second Amendment Effective Date, upon not less than fifteen (15) Business Days’ notice from the Initial Borrower to the Administrative Agent (or such shorter period as may be reasonably agreed by the Administrative Agent), designate any Wholly-Owned Subsidiary of the Initial Borrower that is organized in the United States or any state thereof (a “Borrower Applicant”) as a “Co-Borrower” hereunder, in each case by delivering to the Administrative Agent (which shall promptly deliver counterparts thereof to each Lender) a duly executed Co-Borrower joinder agreement in substantially the form of Exhibit R (a “Co-Borrower Joinder Agreement”) pursuant to which, subject to the terms and conditions of this Section 2.21, each of the Second Amendment Co-Borrowers or any Borrower Applicant shall become a party to this agreement as a “Borrower” for all purposes hereunder (any so successfully appointed Borrower, a “Co-Borrower”).

 

(b)                                 The parties hereto acknowledge and agree that prior to each of the Second Amendment Co-Borrowers or any Borrower Applicant becoming a Co-Borrower hereunder, the Collateral and Guarantee Requirement in respect of each of the Second Amendment Co-Borrowers and any Borrower Applicant shall have been satisfied and the Administrative Agent shall have received such supporting resolutions, incumbency certificates, organizational documents, good standing certificates, opinions of counsel and other documents or information as may be reasonably requested by the Administrative Agent in respect of each of the Second Amendment Co-Borrowers and the Borrower Applicant, in the case of each of the Second Amendment Co-Borrowers, as required by the Second Amendment and, in the case of any Borrower Applicant, in form and substance substantially consistent with such items delivered in respect of the Borrower, the Second Amendment Co-Borrowers and the other Loan Parties on the Second Amendment Effective Date (for the avoidance of doubt (i) including information required pursuant to applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, and (ii) if the Borrower Applicant qualifies as a “legal entity” customer under 31 C.F.R. § 1010.230 and the Administrative Agent has provided the Borrower Applicant the name of each requesting Lender and its electronic delivery requirements at least ten (10) Business Days prior to the date of appointment of such Borrower Applicant as a Co-Borrower, the Administrative Agent and each such Lender requesting a beneficial ownership certification (which request is made through the Administrative Agent and which certification shall be substantially similar to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association (a “Beneficial Ownership Certification”)) will have received, at least three (3) Business Days prior to the date of appointment of such Borrower Applicant as a Co-Borrower, the Beneficial Ownership Certification in relation to the Borrower Applicant), and Term Notes signed by each of the Second Amendment Co-Borrowers and such Borrower Applicant to the extent any Lenders may reasonably request such Term Notes. Promptly following the satisfaction of the foregoing requirements, the Administrative Agent shall 

 

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send a notice to the Initial Borrower and the Lenders specifying the effective date upon which each of the Second Amendment Co-Borrowers or the Borrower Applicant shall constitute Co-Borrowers for all purposes hereof (which date, in the case of each of the Second Amendment Co-Borrowers, shall be the Second Amendment Effective Date), and each of the parties agrees that each such Co-Borrower shall otherwise be a Borrower for all purposes of this Agreement and that all references herein to “Borrower” shall be deemed to include each such Co-Borrower.

 

(c)                                  Each Subsidiary of the Initial Borrower that  becomes a Co-Borrower pursuant to this Section 2.21 hereby irrevocably appoints the Initial Borrower as its agent for all purposes relevant to this Agreement and each of the other Loan Documents, including (i) the giving and receipt of notices and (ii) the execution and delivery of all documents, instruments and certificates contemplated herein and all amendments and modifications hereto.  Any acknowledgment, consent, direction, certification or other action which might otherwise be valid or effective only if given or taken by all Borrowers, or by each Borrower acting singly, shall be valid and effective if given or taken only by the Initial Borrower, whether or not any such other Co-Borrower joins therein.  Any notice, demand, consent, acknowledgement, direction, certification or other communication delivered to the Initial Borrower in accordance with the terms of this Agreement shall be deemed to have been delivered to each Co-Borrower.

 

(d)                                 Each Subsidiary of the Initial Borrower that becomes a Co-Borrower pursuant to this Section 2.21 may be a Co-Borrower in respect of any additional tranche of term loans that is permitted to be incurred hereunder.

 

(e)                                  Each of the Initial Borrower and any Co-Borrower in respect of the 2018 Incremental Term Loans appointed pursuant to this Section 2.21 accepts joint and several liability for all Obligations hereunder in consideration of the financial accommodation provided by the Administrative Agent and the Lenders under this Agreement and the other Loan Documents, for the mutual benefit, directly and indirectly, of the Initial Borrower and such Co-Borrower. The Initial Borrower’s and such Co-Borrower’s obligations arising as a result of the joint and several liability of such Borrowers shall be separate and distinct obligations, but all such obligations shall be primary obligations of the Initial Borrower and such Co-Borrower.  Upon the occurrence and during the continuation of any Event of Default, the Administrative Agent and the Lenders may proceed directly and at once, without notice, against either the Initial Borrower or such Co-Borrower to collect and recover the full amount, or any portion of, the Obligations, without first proceeding against any other Borrower or any other Person, or against any security or collateral for the Obligations.  The Initial Borrower and such Co-Borrower waives, to the maximum extent permitted by law, all suretyship defenses and consents and agrees that the Administrative Agent and the Lenders shall be under no obligation to marshal any assets in favor of either the Initial Borrower or such Co-Borrower or against or in payment of any or all of the Obligations.

 

(f)                                   The Initial Borrower may from time to time, upon not less than 15 Business Days’ notice from the Initial Borrower to the Administrative Agent (or such shorter period as may be reasonably agreed by the Administrative Agent), terminate a Co-Borrower’s status as such. The Administrative Agent will promptly notify the Lenders of any such termination of a Co-Borrower’s status.

 

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ARTICLE III

 

Taxes, Increased Costs Protection and Illegality

 

Section 3.01                            Taxes.  (a)  Except as required by Law, any and all payments by the Borrower or any Guarantor to or for the account of any Agent or any Lender hereunder or under any other Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges imposed by any Governmental Authority, and all liabilities (including additions to tax, penalties and interest) with respect thereto (“Taxes”).  If the Borrower, a Guarantor or any other applicable withholding agent is required by Law to deduct any Taxes from or in respect of any amount paid or payable by the Borrower or applicable Guarantor under any Loan Document to any Agent or any Lender, (i) if such Taxes are Indemnified Taxes, the sum payable shall be increased as necessary so that after all such deductions have been made (including deductions applicable to additional sums payable under this Section 3.01(a)), each Lender (or, in the case of a payment made to an Agent for its own account, such Agent) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable withholding agent shall make such deductions, (iii) the applicable withholding agent shall pay the full amount deducted to the relevant taxing authority, and (iv) within thirty (30) days after the date of any such payment by the Borrower or any Guarantor (or, if receipts or evidence are not available within thirty (30) days, as soon as practicable thereafter), the Borrower or Guarantor shall furnish to such Agent or Lender (as the case may be) the original or a facsimile copy of a receipt evidencing payment thereof to the extent such a receipt has been made available to the Borrower or Guarantor (or other evidence of payment reasonably satisfactory to the Administrative Agent).   If the Borrower or any Guarantor fails to pay any Indemnified Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to any Agent or any Lender the required receipts or other required documentary evidence that has been made available to the Borrower or Guarantor, the Borrower or Guarantor shall indemnify such Agent and such Lender for any incremental Indemnified Taxes or Other Taxes that may become payable by such Agent or such Lender arising out of such failure.

 

(b)                                 Each Lender that is entitled to an exemption from or reduction of any applicable withholding Tax with respect to payments to be made to such Lender under any Loan Document  shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by Law or reasonably requested by the Borrower  or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, each Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Each such Lender shall, whenever a lapse in time or change in circumstances renders any such documentation (including any specific documentation required below in Section 3.01(c)) obsolete, expired or inaccurate in any respect, deliver promptly to the Borrower and the Administrative Agent updated or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent in writing of its legal ineligibility to do so.  Each Lender hereby authorizes the Administrative Agent to deliver to the Borrower and to any successor Administrative Agent any documentation provided to the Administrative Agent pursuant to this Section 3.01(b).

 

(c)                                  Without limiting the generality of the foregoing:

 

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(i)                                     Each Lender that is not a U.S. Person (each a “Foreign Lender”) agrees to complete and deliver to the Borrower and the Administrative Agent on or prior to the date on which the Foreign Lender becomes a party hereto, two (2) accurate, complete and signed copies of whichever of the following is applicable:

 

(A)                               in the case of a Foreign Lender that is entitled to benefits under an income tax treaty to which the United States is a party (or which would be entitled to claim such benefits if a U.S. Loan Party were treated as if it were a borrower or co-borrower under the Code or applicable Treasury regulations), (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN-E (or W-8BEN, as applicable) establishing a complete exemption from U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document (including due to any U.S. Loan Party or other Subsidiary of the Borrower being treated as or as if it were a borrower or co-borrower under the Code or applicable Treasury regulations), IRS Form W-8BEN-E (or W-8BEN, as applicable) establishing a complete exemption from U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

(B)                               IRS Form W-8ECI or successor form;

 

(C)                               in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871(h) or Section 881(c) of the Code (or which would be entitled to claim such benefits if a U.S. Loan Party were treated as if it were a borrower or co-borrower under the Code or applicable Treasury regulations), a certificate (a “Non-Bank Certificate”) to the effect that such Foreign Lender is not (A) a bank described in Section 881(c)(3)(A) of the Code, (B) a 10-percent shareholder described in Section 871(h)(3)(B) of the Code, or (C) a controlled foreign corporation related to the Borrower (or to any U.S. Loan Party) within the meaning of Section 864(d) of the Code, and that no payments in connection with any Loan Document are effectively connected with such Lender’s conduct of a U.S. trade or business, in substantially the form attached hereto as Exhibit H-1 and an IRS Form W-8BEN or W-8BEN-E or successor form; or

 

(D)                               to the extent a Foreign Lender is not the beneficial owner for U.S. federal income tax purposes (for example, where the Foreign Lender is a partnership or a participating Lender), IRS Form W-8IMY (or any successor forms) of the Foreign Lender, accompanied by, as and to the extent applicable, an IRS Form W-8BEN or W-8BEN-E, IRS Form W-8ECI, Non-Bank Certificate (in substantially the form attached hereto as Exhibit H-2 or Exhibit H-3), IRS Form W-9, IRS Form W-8IMY (or other successor forms) and/or other certification documents from each beneficial owner, as applicable, in each case, establishing a complete exemption from U.S. federal withholding tax (provided, that if the Foreign Lender is a partnership (and not a participating Lender) and one or more direct or indirect partners are claiming the portfolio interest exemption, the Foreign Lender may provide a Non-Bank Certificate (in substantially the form attached hereto as Exhibit H-4) on behalf of such direct or indirect partner(s)); or

 

(E)                                any other form prescribed by applicable requirements of U.S. federal income tax law as a basis for claiming complete exemption from U.S. federal withholding tax on any payments from a U.S. Loan Party (if such U.S. Loan Party were treated as or as if it were a borrower or co-borrower under the Code or applicable Treasury regulations) to such Lender under the Loan Documents, duly completed together with such supplementary 

 

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documentation as may be prescribed by applicable requirements of Law to permit the Borrower and the Administrative Agent to determine the withholding or deduction required to be made.

 

(ii)                                  If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), including if any U.S. Loan Party were treated as or as if it were a borrower or co-borrower under the Code or applicable Treasury regulations, such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA, to determine whether such Lender has complied with such Lender obligations under FATCA and to determine the amount, if any, to deduct and withhold from such payment.  Solely for purposes of this clause (ii), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(iii)                               Each Lender that is a U.S. Person (each a “U.S. Lender”) shall complete and deliver to the Borrower and the Administrative Agent two (2) original copies of accurate, complete and signed IRS Form W-9 or successor form certifying that such U.S. Lender is not subject to United States federal backup withholding on or prior to the date it becomes a party to this Agreement.

 

(iv)                              Each Foreign Lender represents and warrants that, as of the date such Lender first becomes a Lender hereunder, it is entitled to provide the documentation described  in Section 3.01(c)(i) and documentation described under Section 3.01(c)(ii) indicating an exemption from FATCA withholding and agrees to indemnify the Borrower and its Subsidiaries and the Administrative Agent for any Taxes imposed as a result of the breach of such representation and warranty.

 

(v)                                 The Administrative Agent shall deliver to the Borrower, on or prior to the date it becomes an Administrative Agent hereunder, upon the expiration or obsolescence of any such documentation previously delivered, and upon the reasonable request of the Borrower, such properly completed and executed IRS Form W-8IMY (indicating “Qualified Intermediary” or U.S. branch status), IRS Form W-8ECI, or IRS Form W-9 as applicable, in each case, with the effect that a U.S. Loan Party, if such U.S. Loan Party were treated as if it were a borrower or co-borrower under the Code, may make payments to the Administrative Agent, to the extent such payments are received by the Administrative Agent as an intermediary, without deduction or withholding of any taxes imposed by the United States.

 

(d)                                 The Borrower agrees to pay any and all present or future stamp, court or documentary Taxes and any other excise, property, intangible, filing or recording fees or charges or similar Taxes imposed by any Governmental Authority which arise from any payment made under any Loan Document or the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document excluding any such Tax imposed in connection with an Assignment and Assumption, grant of a participation, transfer or assignment to or designation of a new applicable Lending Office or other office for receiving payments under any Loan Document, (i) if such Tax is imposed as a result of a present or former connection of the assignor or assignee with the jurisdiction imposing such Tax (other than any connection arising solely from having executed or entered into any Loan Document, having delivered, having received payments thereunder or having been a party to, having performed its 

 

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obligations under, having received or perfected a security interest under, having entered into any other transaction pursuant to and/or having enforced, any Loan Documents) and (ii) unless such Assignment and Assumption, grant of a participation, transfer or assignment to or designation of a new applicable Lending Office or other office for receiving payments under any Loan Document was made at the request of the Borrower pursuant to Section 3.01(h) or Section 3.07 (all such non-Excluded Taxes referred to in this Section 3.01(d) being hereinafter referred to as “Other Taxes”).

 

(e)                                  The Loan Parties shall, jointly and severally, indemnify an Agent or Lender for the full amount of any Indemnified Taxes and Other Taxes paid or payable by such Agent or Lender (and any such Indemnified Taxes and Other Taxes imposed on or attributable to amounts payable under this Section 3.01), and any reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the Governmental Authority. Payments under this Section 3.01(e) shall be made within ten (10) days after the date the Borrower receives written demand for payment from such Agent or Lender.  A certificate as to the amount of such payment or liability delivered to the Borrower by an Agent or a Lender (with a copy to the Administrative Agent) shall be conclusive absent manifest error.

 

(f)                                   If the Borrower determines in good faith that a reasonable basis exists for contesting any Indemnified Taxes for which indemnification has been demanded or additional amounts have been payable hereunder, the relevant Lender or the relevant Agent, as applicable, shall cooperate with the Borrower in a reasonable challenge of such Taxes if so requested by the Borrower; provided that (i) such Lender or Agent determines in its sole good faith discretion that it would not be subject to any unreimbursed third party cost or expense or otherwise be materially disadvantaged by cooperating in such challenge, (ii) the Borrower pays all related expenses of such Agent or Lender, (iii) the Borrower indemnifies such Lender or Agent for any liabilities or other costs incurred by such party in connection with such challenge and (iv) Borrower indemnifies such Agent or Lender, as applicable, for any Indemnified Taxes before any such contest.  Any resulting refund shall be governed by Section 3.01(g).

 

(g)                                  If any Agent or any Lender determines, in its sole discretion exercised in good faith, that it has received a refund in respect of any Indemnified Taxes as to which it has been indemnified by the Borrower or any Guarantor, as the case may be, or with respect to which the Borrower or any Guarantor, as the case may be, has paid additional amounts pursuant to this Section 3.01, it shall promptly remit such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower or any Guarantor, as the case may be, under this Section 3.01 with respect to the Indemnified Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including any Taxes) incurred by such Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of such Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Agent or such Lender in the event such Agent or such Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this Section 3.01(g), in no event will any Agent or Lender be required to pay any amount to the Borrower pursuant to this Section 3.01(g) the payment of which would place the Agent or Lender in a less favorable net after-Tax position than the Agent or Lender would have been in if the Indemnified Tax or Other Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Indemnified Tax or Other Tax had never been paid.  Such Agent or such Lender, as the case may be, shall provide the Borrower and the Administrative Agent with a copy of any notice of assessment or other evidence reasonably available of the requirement to repay such refund received from the relevant Governmental Authority (provided that such Lender or such Agent may delete any information therein that such Lender or such Agent deems confidential or not relevant to such refund in its reasonable discretion).  This Section 3.01(g) shall not be construed to require 

 

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an Agent or Lender to make available its Tax returns (or any other information related to its Taxes) to any Loan Party or any other Person.

 

(h)                                 Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 3.01(a) with respect to such Lender, it will, if requested by the Borrower in writing, use commercially reasonable efforts (subject to legal and regulatory restrictions) to mitigate the effect of any such event, including by designating another Lending Office for any Loan affected by such event and by completing and delivering or filing any Tax-related forms which such Lender is legally eligible to deliver and which would reduce or eliminate any amount of Indemnified Taxes or Other Taxes required to be deducted or withheld or paid by the Borrower; provided that such efforts are made at the Borrower’s expense and on terms that, in the reasonable judgment of such Lender, do not cause such Lender and its Lending Office(s) to suffer any economic, legal or regulatory disadvantage; and provided, further that nothing in this Section 3.01(h) shall affect or postpone any of the Obligations of the Borrower or the rights of such Lender pursuant to Sections 3.01(a) or (d).

 

(i)                                     The agreements in this Section 3.01 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder, resignation of the Administrative Agent and any assignment of rights by, or replacement of, any Lender.

 

Section 3.02                            Illegality.  If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to the Eurocurrency Rate or the CDOR Rate, or to determine or charge interest rates based upon the Adjusted Eurocurrency Rate or CDOR Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, U.S. Dollars or Canadian bankers’ acceptances, as applicable, in the applicable interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, (i) any obligation of such Lender to make or continue Eurocurrency Rate Loans or CDOR Loans or to convert Base Rate Loans to Eurocurrency Rate Loans or to convert Canadian Prime Rate Loans to CDOR Rate Loans, as applicable, shall be suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Adjusted Eurocurrency Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender, shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurocurrency Rate component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or convert all of such Lender’s Eurocurrency Rate Loans to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Adjusted Eurocurrency Rate component of the Base Rate) or prepay or convert all of such Lender’s CDOR Rate Loans to Canadian Prime Rate Loans, as applicable, in each case, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Rate Loans or CDOR Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurocurrency Rate Loans or CDOR Rate Loans, as applicable and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurocurrency Rate, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Adjusted Eurocurrency Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurocurrency Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due, if any, in connection with such prepayment or conversion under Section 3.05.  Each Lender 

 

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agrees to designate a different Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.

 

Section 3.03                            Inability to Determine Rates.  If in connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof, (a) the Administrative Agent determines that (i) U.S. Dollar deposits, as applicable, are not being offered to banks in the London interbank Eurocurrency market for the applicable amount and Interest Period of such Eurocurrency Rate Loan, or (ii) adequate and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan or in connection with an existing or proposed Base Rate Loan (in each case with respect to loans referred to in clause (a)(i) above and together with clause (c)(i) below, “Impacted Loans”), or (b) the Administrative Agent or the Required Lenders determine that for any reason the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurocurrency Rate Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to make or maintain Eurocurrency Rate Loans shall be suspended and in the event of a determination described in the preceding sentence with respect to the Adjusted Eurocurrency Rate component of the Base Rate, the utilization of the Eurocurrency Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent (in the case of clause (b) of the preceding sentence upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans (determined without reference to the Adjusted Eurocurrency Rate component thereof) in the amount specified therein.

 

If in connection with any request for a CDOR Rate Loan or a conversion to or continuation thereof, (c) the Administrative Agent determines that (i) Canadian bankers’ acceptances are not being offered to banks in the Canadian market for bankers’ acceptances for the applicable amount and Interest Period of such CDOR Rate Loan, or (ii) adequate and reasonable means do not exist for determining the CDOR Rate for any requested Interest Period with respect to a proposed CDOR Rate Loan, or (d) the Administrative Agent or the Required Lenders determine that for any reason the CDOR Rate for any requested Interest Period with respect to a proposed CDOR Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such CDOR Rate Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to make or maintain CDOR Rate Loans shall be suspended until the Administrative Agent (in the case of clause (d) of the preceding sentence upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of CDOR Rate Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of Canadian Prime Rate Loans in the amount specified therein.

 

Notwithstanding the foregoing, if the Administrative Agent has made any of the determinations described in clause (a)(i) or (c)(i) of this Section 3.03, the Administrative Agent, in consultation with the affected Lenders, may establish an alternative interest rate for the Impacted Loans, in which case, such alternative rate of interest shall apply with respect to the Impacted Loans until (1) the Administrative Agent revokes the notice delivered with respect to the Impacted Loans under clause (a) or clause (c) of this Section 3.03, (2) the Administrative Agent or the Required Lenders notify the Administrative Agent and the Borrower that such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or (3) any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to such

 

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alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides the Administrative Agent and the Borrower written notice thereof.

 

Section 3.04                            Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurocurrency Rate Loans, etc.

 

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

 

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

 

(ii)                                  subject any Lender to any Tax of any kind whatsoever with respect to this Agreement or any Eurocurrency Rate Loan or CDOR Rate Loan made by it, or change the basis of taxation of payments to such Lender in respect thereof (except, in each case, for (a) any Indemnified Taxes or (b) any Excluded Taxes); or

 

(iii)                               (A) impose on any Lender any increase in the cost to such Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Loans or CDOR Rate Loans, or (B) cause a reduction in the amount received or receivable by any Lender in connection with any of the foregoing, that is not otherwise accounted for in the definition of Adjusted Eurocurrency Rate (excluding for purposes of this Section 3.04(a) any such increased costs or reduction in amount resulting from (x) reserve requirements contemplated by Section 3.04(d) and (y) amounts otherwise excluded in the parenthetical in clause (ii) immediately above);

 

or the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan the interest on which is determined by reference to the Eurocurrency Rate or CDOR Rate, as applicable (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or any other amount) then, from time to time within fifteen (15) days after demand by such Lender setting forth in reasonable detail such increased costs or such reduction in amount (with a copy of such demand to the Administrative Agent), the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.  At any time that any Eurocurrency Rate Loan or CDOR Rate Loan, as applicable, is affected by the circumstances described in this Section 3.04(a), the Borrower may, subject to Section 3.05, either (i) if the affected Eurocurrency Rate Loan or CDOR Rate Loan is then being made pursuant to a Borrowing, cancel such Borrowing by giving the Administrative Agent telephonic notice (confirmed promptly in writing) thereof on the same date that the Borrower receives any such demand from such Lender or (ii) if the affected Eurocurrency Rate Loan or CDOR Rate Loan is then outstanding, upon at least three (3) Business Days’ notice to the Administrative Agent, require the affected Lender to convert such Eurocurrency Rate Loan into a Base Rate Loan (determined without reference to the Adjusted Eurocurrency Rate component thereof) or CDOR Rate Loan into a Canadian Prime Rate Loan, as applicable.

 

(b)                                 Capital Requirements.  If any Lender reasonably determines that the introduction of any Change in Law regarding capital adequacy or liquidity requirements, or any change therein or the interpretation thereof, in each case after the date hereof, or compliance by such Lender (or its Lending Office) therewith, has the effect of reducing the rate of return on the capital of such Lender, or any corporation or holding company controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies and the policies of such Lender’s holding company with respect to capital adequacy or liquidity), then from time to time upon demand of such Lender setting forth

 

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in reasonable detail the charge and the calculation of such reduced rate of return (with a copy of such demand to the Administrative Agent), the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

(c)                                  Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subclause (a) or (b) of this Section 3.04 and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

 

(d)                                 Reserves on Eurocurrency Rate Borrowings.  The Borrower shall pay to each Lender, (i) as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Rate funds or deposits, additional interest on the unpaid principal amount of each Eurocurrency Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive in the absence of manifest error), and (ii) as long as such Lender shall be required to comply with any reserve ratio requirement or analogous requirement of any other central banking or financial regulatory authority imposed in respect of the maintenance of the Commitments or the funding of the Eurocurrency Rate Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the actual costs allocated to such Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error) which in each case shall be due and payable on each date on which interest is payable on such Loan; provided the Borrower shall have received at least fifteen (15) days’ prior notice (with a copy to the Administrative Agent) of such additional interest or cost from such Lender; provided, further, that any such costs described in clauses (d)(i) and (d)(ii) resulting from reserve requirements contemplated by the definition of Adjusted Eurocurrency Rate shall be excluded for all purposes under this Section 3.04(d).  If a Lender fails to give notice fifteen (15) days prior to the relevant Interest Payment Date, such additional interest or cost shall be due and payable fifteen (15) days from receipt of such notice.

 

(e)                                  Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section 3.04 for any increased costs incurred or reductions suffered more than one hundred and eighty (180) days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof); provided, further, that requests for any additional payments under this Section 3.04 in connection with a Change in Law shall be limited to circumstances generally affecting the banking market and when a majority of Lenders have made such a request.  No Lender shall demand compensation pursuant to this Section 3.04 unless such Lender is generally making corresponding demands on similarly situated borrowers for similar amounts pursuant to similar provisions in comparable syndicated credit facilities to which such Lender is a party.

 

Section 3.05                            Funding Losses.  Upon written demand of any Lender (with a copy to the Administrative Agent) from time to time, which demand shall set forth in reasonable detail the basis for requesting such amount, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

 

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(a)                                 any continuation, conversion, payment or prepayment of any Eurocurrency Rate Loan or CDOR Rate Loan on a day prior to the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)                                 any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Eurocurrency Rate Loan or CDOR Rate Loan on the date or in the amount notified by the Borrower; or

 

(c)                                  any assignment of a Eurocurrency Rate Loan or CDOR Rate Loan on a day prior to the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 3.07.

 

Section 3.06                            Matters Applicable to All Requests for Compensation.

 

(a)                                 Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or Section 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender in any material economic, legal or regulatory respect.  The Borrower hereby agrees to pay all reasonable and documented (in reasonable detail) out-of-pocket costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)                                 Suspension of Lender Obligations.  If any Lender requests compensation by the Borrower under Section 3.04, the Borrower may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender to make or continue Eurocurrency Rate Loans or CDOR Rate Loans from one Interest Period to another Interest Period, or to convert Base Rate Loans into Eurocurrency Rate Loans or Canadian Prime Rate Loans into CDOR Rate Loans, until the event or condition giving rise to such request ceases to be in effect (in which case the provisions of Section 3.06(c) shall be applicable); provided that such suspension shall not affect the right of such Lender to receive the compensation so requested.

 

(c)                                  If the obligation of any Lender to make or continue from one Interest Period to another Interest Period any Eurocurrency Rate Loan, or to convert Base Rate Loans into Eurocurrency Rate Loans or Canadian Prime Rate Loans into CDOR Rate Loans, shall be suspended pursuant to Section 3.06(b) hereof, such Lender’s Eurocurrency Rate Loans shall be automatically converted into Base Rate Loans (determined without reference to the Adjusted Eurocurrency Rate component thereof) or its CDOR Rate Loans shall be automatically converted into Canadian Prime Rate Loans, as applicable, on the last day(s) of the then current Interest Period(s) for such Eurocurrency Rate Loans or CDOR Rate Loans, as applicable (or, in the case of an immediate conversion required by Section 3.02, on such earlier date as required by Law) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 3.01, Section 3.02, Section 3.03 or Section 3.04 hereof that gave rise to such conversion no longer exist:

 

(i)                                     to the extent that such Lender’s Eurocurrency Rate Loans or CDOR Rate Loans have been so converted, all payments and prepayments of principal that would otherwise be 

 

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applied to such Lender’s Eurocurrency Rate Loans shall be applied instead to its Base Rate Loans (which shall be determined without reference to the Adjusted Eurocurrency Rate component thereof) and to such Lender’s CDOR Rate Loans shall be applied instead to its Canadian Prime Rate Loans, as applicable; and

 

(ii)                                  all Loans that would otherwise be made or continued from one Interest Period to another Interest Period by such Lender as Eurocurrency Rate Loans or CDOR Rate Loans, as applicable, shall be made or continued instead as Base Rate Loans or Canadian Prime Rate Loans, as applicable, and all Base Rate Loans or Canadian Prime Rate Loans, as applicable of such Lender that would otherwise be converted into Eurocurrency Rate Loans or CDOR Rate Loans, as applicable, shall remain as Base Rate Loans (which shall be determined without reference to the Adjusted Eurocurrency Rate component thereof) or Canadian Prime Rate Loans, as applicable.

 

(d)                                 Conversion of Eurocurrency Rate Loans.  If any Lender gives notice to the Borrower (with a copy to the Administrative Agent) that the circumstances specified in Section 3.02, 3.03 or 3.04 hereof that gave rise to the conversion of such Lender’s Eurocurrency Rate Loans or CDOR Rate Loans no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when Eurocurrency Rate Loans or CDOR Rate Loans, as applicable, made by other Lenders are outstanding, such Lender’s Base Rate Loans or Canadian Prime Rate Loans, as applicable, shall be automatically converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding Eurocurrency Rate Loans or CDOR Rate Loans, as applicable, to the extent necessary so that, after giving effect thereto, all Loans of a given Class held by the Lenders of such Class holding Eurocurrency Rate Loans or CDOR Rate Loans, as applicable and by such Lenders are held pro rata (as to principal amounts, interest rate basis, and Interest Periods) in accordance with their respective Pro Rata Shares.

 

(e)                                  Notwithstanding anything contained herein to the contrary, a Lender shall not be entitled to any compensation pursuant to Section 3.04 to the extent such Lender is not imposing such charges or requesting such compensation from borrowers (similarly situated to the Borrower hereunder) under comparable syndicated credit facilities.

 

Section 3.07                            Replacement of Lenders under Certain Circumstances.  If (i) any Lender becomes a Defaulting Lender or fails to comply with the requirements of Section 3.01(c), (ii) any Lender requests compensation under Section 3.04 or ceases to make Eurocurrency Rate Loans or CDOR Rate Loans as a result of any condition described in Section 3.02 or Section 3.04, (iii) the Borrower is required to pay any additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, (iv) any Lender is a Non-Consenting Lender or (v) any other circumstance exists hereunder that gives the Borrower the right to replace a Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.07), all of its interests, rights and obligations under this Agreement and the related Loan Documents to one or more Eligible Assignees (none of whom shall be a Defaulting Lender) that shall assume such obligations (any of which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(a)                                 the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.07(b)(iv) to the extent required by the Administrative Agent;

 

(b)                                 such Lender shall have received payment of an amount equal to the outstanding principal of its Loans then outstanding that have not been repaid or converted into Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents

 

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(including any amounts payable under Section 2.20 and Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) (provided that to the extent the Assignment and Assumption with respect to an assignment pursuant to this Section 3.07(b) provides that any accrued interest and fees shall be paid to the applicable assignor at any future time, such amounts shall instead be payable to the assignee notwithstanding any such provision, unless such amounts have already been paid to the applicable assignor pursuant to this clause (b), in which case they shall not be payable by the Borrower);

 

(c)                                  such Lender being replaced pursuant to this Section 3.07 shall (i) execute and deliver an Assignment and Assumption with respect to such Lender’s Commitment and outstanding Loans, and (ii) deliver any Term Notes evidencing such Loans to the Borrower or Administrative Agent (or a lost or destroyed note indemnity in lieu thereof); provided that the failure of any such Lender to deliver such Term Notes (or any such indemnity in lieu thereof) shall not render such sale and purchase (and the corresponding assignment) invalid and such assignment shall be recorded in the Register and the Term Notes shall be deemed to be canceled upon such failure;

 

(d)                                 pursuant to any Assignment and Assumption executed pursuant to Section 3.07(c), (A) the assignee Lender shall acquire all or a portion, as the case may be, of the assigning Lender’s Commitment and outstanding Loans, (B) all obligations of the Borrower owing to the assigning Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender to such assigning Lender concurrently with such assignment and assumption and (C) upon such payment and, if so requested by the assignee Lender, delivery to the assignee Lender of the appropriate Term Note or Term Notes executed by the Borrower, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect to such assigned Loans, Commitments and participations, except with respect to indemnification provisions under this Agreement, which shall survive as to such assigning Lender;

 

(e)                                  in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments or deductions required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments or deduction thereafter; and

 

(f)                                   such assignment does not conflict with applicable Laws.

 

In connection with any such replacement, if any such Lender being replaced pursuant to this Section 3.07 does not execute and deliver to the Administrative Agent a duly executed Assignment and Assumption reflecting such replacement within one (1) Business Day of the date on which the assignee Lender executes and delivers such Assignment and Assumption to such Lender being replaced pursuant to this Section 3.07, then such Lender being replaced pursuant to this Section 3.07 shall be deemed to have executed and delivered such Assignment and Assumption without any action on the part of such Lender.

 

In the event that (i) the Borrower or the Administrative Agent has requested that the Lenders consent to a departure or waiver of any provisions of the Loan Documents or agree to any amendment or modification thereto, (ii) the consent, waiver or amendment or modification in question requires the agreement of each Lender, all affected Lenders or all the Lenders in accordance with the terms of Section 10.01 with respect to any Class or Classes of the Loans and (iii) the Required Lenders, or Required Facility Lenders, as applicable, have agreed (to the extent required by Section 10.01) to such consent, waiver or amendment or modification, then any Lender who does not agree to such consent, waiver or amendment or modification shall be deemed a “Non-Consenting Lender.”  If any applicable Lender is a Non-Consenting Lender and is required to assign all or any portion of its Initial Term Loans or 2018 Incremental Term Loans pursuant to this Section 3.07 prior to the six (6) month anniversary of the Closing Date, with respect to the Initial Term Loans,  or prior to the six (6) month anniversary of the First 

 

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Amendment Effective Date, with respect to the 2018 Incremental Term Loans, in connection with any such waiver, amendment or modification constituting a Repricing Transaction in respect of which it is a Non-Consenting Lender, the Borrower shall pay to such Non-Consenting Lender the fee set forth in Section 2.20 to the extent applicable.

 

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

 

Section 3.08                            Survival.  All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all Obligations and resignation of the Administrative Agent.

 

ARTICLE IV

 

Conditions Precedent to Credit Extensions

 

Section 4.01                            Conditions to Initial Credit Extension.  The obligation of each Lender to make its initial Credit Extension hereunder on the Closing Date is subject to satisfaction, or waiver (in accordance with Section 10.01), of each of the following conditions precedent:

 

(a)                                 The Administrative Agent’s receipt of the following, each of which shall be originals, facsimiles or copies in .pdf form by electronic mail (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party (if applicable), each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date and in the case of the Loan Notice delivered pursuant to Section 4.01(a)(i), dated the date of delivery of such Loan Notice) and each in form and substance satisfactory to the Administrative Agent and each of the Lenders:

 

(i)                                     a Loan Notice relating to the initial Credit Extension(s) and which shall be delivered in accordance with Section 2.02;

 

(ii)                                  executed counterparts of this Agreement duly executed by each party hereto;

 

(iii)                               the Guaranty and other Collateral Documents set forth on Schedule 1.01C required to be executed on the Closing Date, as indicated on such schedule, duly executed by each party thereto as of the Closing Date, together with:

 

(A)                               subject to the First Lien Intercreditor Agreement, certificates, if any, representing the Collateral that are certificated Equity Interests of the Subsidiary Guarantors and each of their Restricted Subsidiaries that are not Immaterial Subsidiaries and the instruments evidencing the Material Debt Instruments, in each case, to the extent that same are required to be delivered pursuant to the Collateral and Guarantee Requirement, each accompanied by undated stock powers, membership interest powers or other applicable certificates of transfer executed in blank and, in each case, in original (and not electronic) form;

 

(B)                               delivery to the Administrative Agent, in proper form for filing, of Uniform Commercial Code financing statements in the jurisdiction of organization of each Loan Party and PPSA financing statements in the principal place of business of each Canadian 

 

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Loan Party and province where any Canadian Loan Party has tangible assets in excess of C$5,000,000; and

 

(C)                               copies of recent Lien, bankruptcy, judgment, copyright, patent and trademark searches in each jurisdiction reasonably requested by the Administrative Agent with respect to each Loan Party, none of which encumber Collateral (other than Liens permitted hereunder);

 

(iv)                              such certificates of good standing or status (to the extent that such concepts exist) from the applicable secretary of state (or equivalent authority) of the jurisdiction of organization of each Loan Party (in each case, to the extent such concept exists in the applicable jurisdiction), certificates of customary Board of Directors resolutions or other customary corporate authorizing action, incumbency certificates and/or other customary certificates of Responsible Officers of each Loan Party evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party on the Closing Date and, in the case of the Borrower only, a certificate of a Responsible Officer of the Borrower that the conditions specified in clauses (e) and (f) below have been satisfied;

 

(v)                                 a customary opinion from:

 

(A)                               Latham & Watkins LLP, New York counsel to the Loan Parties; and

 

(B)                               Stikeman Elliot LLP, Canadian counsel to the Loan Parties; and

 

(C)                               McInnes Cooper, LLP, Nova Scotia, New Brunswick and Newfoundland counsel to the Loan Parties; and

 

(D)                               Miller Thomson LLP, Saskatchewan counsel to the Loan Parties; and

 

(E)                                D’Arcy & Deacon LLP, Manitoba counsel to the Loan Parties; and

 

(F)                                 Varnum LLP, Michigan counsel to the Loan Parties.

 

(vi)                              the First Lien Intercreditor Agreement, duly executed by each party thereto as of the Closing Date; and

 

(vii)                           a solvency certificate, substantially in the form set forth in Exhibit Q, from the chief financial officer, chief accounting officer or other officer with equivalent duties of the Borrower.

 

(b)                                 All fees, premiums, expenses (including without limitation, legal fees and expenses, title premiums and recording taxes and fees) and other transaction costs incurred in connection with the Original Transaction (including to fund any OID and upfront fees) to the extent invoiced in reasonable detail at least two (2) Business Days before the Closing Date (except as otherwise reasonably agreed to by the Borrower) and required to be paid under the Administrative Agent Fee Letter on the 

 

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Closing Date to the Administrative Agent, the Lead Arrangers and the Lenders, in the case of expenses, shall have been paid in full to the extent then due.

 

(c)                                  Prior to, or substantially concurrently with, the initial Credit Extensions, the Refinancing shall have occurred or the Administrative Agent shall be satisfied with the arrangements in place to effectuate the Refinancing.

 

(d)                                 The Administrative Agent shall have received at least three (3) Business Days prior to the Closing Date all documentation and other information about the Borrower and each Guarantor reasonably requested in writing by it at least ten (10) Business Days prior to the Closing Date required in order to comply with applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act.

 

(e)                                  The representations and warranties in Article V shall be true and correct in all material respects (except for representations and warranties that are already qualified by materiality, which representation and warranties shall be true and correct after giving effect to such materiality qualifier) on and as of the Closing Date.

 

(f)                                   Since December 31, 2015, there has been no Material Adverse Effect.

 

Without limiting the generality of the provisions of the last paragraph of Section 9.03, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender.

 

Section 4.02                            Conditions to All Credit Extensions after the Closing Date.  The obligation of each Lender to honor any Request for Credit Extension (other than a 2018 Incremental Term Loan, Delayed Draw Term Loan or a Loan Notice requesting only a conversion of Loans to the other Type, a continuation of Eurocurrency Rate Loans and CDOR Rate Loans or (except as otherwise set forth herein or in the applicable Incremental Amendment) a Borrowing pursuant to any Incremental Amendment) after the Closing Date is subject to the following conditions precedent:

 

(a)                                 The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document shall be true and correct in all material respects (except for representations and warranties that are already qualified by materiality, which representations and warranties shall be true and correct after giving effect to such materiality qualifier) on and as of the date of such Credit Extension; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date.

 

(b)                                 At the time of and immediately after giving effect to any Borrowing after the Closing Date, no Default shall have occurred and be continuing.

 

(c)                                  The Administrative Agent shall have received a Request for Credit Extension in accordance with the requirements hereof.

 

Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurocurrency Rate Loans and CDOR Rate Loans or a Borrowing in connection with any Incremental Amendment) submitted by the Borrower after the Closing 

 

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Date shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.

 

Section 4.03                            Conditions to First Amendment Effectiveness.

 

The effectiveness of this Agreement on the First Amendment Effective Date is subject to the satisfaction of each of the conditions set forth in Section 5 of the First Amendment.

 

Section 4.04                            Conditions to All Borrowings of Delayed Draw Term Loans.

 

The obligation of each Lender to honor any request in respect of Delayed Draw Term Loans on or after the First Amendment Effective Date during the Delayed Draw Commitment Period is subject to the following conditions precedent:

 

(a)                                 The Administrative Agent shall have received a Request for Credit Extension in accordance with the requirements hereof.

 

(b)                                 In the case of any Delayed Draw Term Loans made (i) on the First Amendment Effective Date, the Specified Representations shall be true and correct in all material respects (except for representations and warranties that are already qualified by materiality, which representations and warranties shall be true and correct after giving effect to such materiality qualifier) and (ii) thereafter, the representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document shall be true and correct in all material respects (except for representations and warranties that are already qualified by materiality, which representations and warranties shall be true and correct after giving effect to such materiality qualifier) on and as of the date of such Credit Extension; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date.

 

(c)                                  In the case of any Delayed Draw Term Loans made after the First Amendment Effective Date, no Specified Default shall have occurred and be continuing at the time such Pre-Approved Acquisition is consummated.

 

(d)                                 After giving Pro Forma Effect to the incurrence of such Delayed Draw Term Loans, the aggregate principal amount of all Delayed Draw Term Loans made under the Delayed Draw Term Facility shall not exceed an amount equal to the product of (x) 6.25 multiplied by (y) the aggregate amount of Contributed EBITDA from all Pre-Approved Acquisitions consummated prior to, and after giving effect to the use of proceeds of, such Borrowing.

 

Each Request for Credit Extension under this section submitted by the Borrower after the First Amendment Effective Date shall be deemed to be a representation and warranty that the conditions specified in Sections 4.04(b) through and including (d) have been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V

 

Representations and Warranties

 

On the Closing Date and to the extent required pursuant to Section 4.02 hereof or by any other provision of this Agreement, the Borrower represents and warrants (in the case of such representations 

 

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and warranties made pursuant to Section 4.02, solely to the extent required to be true and correct for the applicable Credit Extension pursuant to Article IV) to the Administrative Agent and the Lenders that:

 

Section 5.01                            Existence, Qualification and Power.  Each Loan Party and each Restricted Subsidiary that is a Material Subsidiary (a) is a Person duly organized, incorporated, amalgamated or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization, amalgamation or formation (to the extent such concept exists in such jurisdiction), (b) has all corporate or other organizational power and authority to (i) own its assets and carry on its business as currently conducted and (ii) in the case of the Loan Parties, execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and in good standing (to the extent such concept exists) under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, and (d) has all requisite governmental licenses, authorizations, consents and approvals to operate its business as currently conducted; except in each case referred to in clauses (a) (other than with respect to the due organization, formation, incorporation or existence of the Loan Parties), (b)(i), (c) or (d), to the extent that failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.02                            Authorization; No Contravention.  (a)  The execution, delivery and performance by each Loan Party of each Loan Document to which it is a party has been duly authorized by all necessary corporate or other organizational action.

 

(b)                                 The execution, delivery and performance by each Loan Party of each Loan Document to which such Loan Party is a party do not and will not (A) contravene the terms of any of its Organization Documents; (B) result in any breach or contravention of, or the creation of any material Lien upon any of the property or assets of such Loan Party or any of the Restricted Subsidiaries (other than as permitted by Section 7.01) under (I) any Contractual Obligation to which such Loan Party is a party or affecting such Loan Party or the properties of such Loan Party or any of its Subsidiaries or (II) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Loan Party or its property is subject; or (C) violate any applicable Laws; except with respect to any breach, contravention or violation (but not creation of Liens) referred to in clauses (A), (B) and (C), to the extent that such breach, contravention or violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.03                            Governmental Authorization; Other Consents.  No material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by any Loan Party of this Agreement or any other Loan Document, except for (i) filings or other actions necessary to perfect the Liens on the Collateral granted by the Loan Parties in favor of the Secured Parties, (ii) the approvals, consents, exemptions, authorizations, actions, notices and filings that have been duly obtained, taken, given or made and are in full force and effect (except to the extent not required to be obtained, taken, given or made or in full force and effect pursuant to the Collateral and Guarantee Requirement), (iii) those approvals, consents, exemptions, authorizations or other actions, notices or filings described in the Collateral Documents, and (iv) those approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or make would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.04                            Binding Effect.  This Agreement and each other Loan Document has been duly executed and delivered by each Loan Party that is party thereto.  This Agreement and each other Loan Document constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party that is party hereto and thereto in accordance with its respective terms, except as 

 

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such enforceability may be limited by Debtor Relief Laws or other Laws affecting creditors’ rights generally and by general principles of equity and principles of good faith and fair dealing.

 

Section 5.05                            Financial Statements; No Material Adverse Effect.  (a)  The Annual Financial Statements and the Quarterly Financial Statements fairly present in all material respects the financial position of the Borrower and its Subsidiaries as of the dates thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein (subject, in the case of the Quarterly Financial Statements to changes resulting from normal year-end adjustments and the absence of footnotes).

 

(b)                                 Since December 31, 2015 there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect.

 

Section 5.06                            Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower, threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any of the Restricted Subsidiaries that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.07                            Labor Matters.  Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (a) there are no strikes, lockouts or slowdowns against the Borrower or any Restricted Subsidiary pending or, to the knowledge of the Borrower, threatened and (b) the hours worked by and payments made to employees of the Borrower or any Restricted Subsidiary have not been in violation of the Fair Labor Standards Act or any other applicable Law dealing with such matters.

 

Section 5.08                            Ownership of Property; Liens.  Each of the Borrower and the Restricted Subsidiaries has valid, good and marketable title in fee simple to, or valid leasehold interests in, or easements or other limited property interests in, all real property necessary in the ordinary conduct of its business, free and clear of all Liens except for Liens permitted by Section 7.01 and except where the failure to have such title or other property interests described above would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.09                            Environmental Matters.  Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (i) the Borrower and the Restricted Subsidiaries are in compliance with all Environmental Laws in all jurisdictions in which the Borrower and each of the Restricted Subsidiaries, as the case may be, is currently doing business (including having obtained all Environmental Permits required for the operation of the business), (ii) neither the Borrower nor any of the Restricted Subsidiaries has received written notice that it is subject to any pending, or to the knowledge of the Borrower, threatened Environmental Claim and (iii) neither the Borrower nor any Restricted Subsidiary is subject to Environmental Liability.

 

Section 5.10                            Taxes.  Except as would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Borrower and the Restricted Subsidiaries have timely filed all federal and state and other Tax returns and reports required to be filed, and have timely paid all federal and state and other Taxes, assessments, fees and other governmental charges (including satisfying its withholding Tax obligations) levied or imposed on their properties, income or assets or otherwise due and payable, except those which are being contested in good faith by appropriate actions and for which adequate reserves have been provided in accordance with GAAP. There 

 

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is no proposed Tax assessment in writing against the Borrower or the Restricted Subsidiaries that would, if made, reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 5.11                            Benefits.  (a)  (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) neither the Borrower nor any of its ERISA Affiliates has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 et seq. or Section 4243 of ERISA with respect to a Multiemployer Plan; and (iii) neither the Borrower nor any of its ERISA Affiliates has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA, except, with respect to each of the foregoing clauses of this Section 5.11(a), as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(a)                                 The Canadian Pension Plans are duly registered under the provisions of the ITA and any other applicable Law and no event has occurred which is reasonably likely to cause such registered status to be revoked. The Canadian Pension Plans have been administered in accordance, in all material respects, with the ITA and all other applicable Laws. No promises of benefit improvements under the Canadian Pension Plans have been made except where such improvements could not have a Material Adverse Effect. Except where noncompliance would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, each Loan Party has made all contributions required to be made by it in a timely fashion in respect of the applicable Canadian Multi-Employer Plans in accordance with the terms of the applicable collective bargaining agreements relating to such plan.

 

(b)                                 Except where noncompliance or the incurrence of an obligation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, each Foreign Plan has been maintained in substantial compliance with its terms and with the requirements of any and all applicable Laws, and neither the Borrower nor any Guarantor has incurred any obligation in connection with the termination of or withdrawal from any Foreign Plan.

 

Section 5.12                            Subsidiaries.  As of the First Amendment Effective Date, (a) neither the Borrower nor any other Loan Party has any Subsidiaries other than those specifically disclosed on Schedule 5.12 and (b) all of the outstanding Equity Interests in the Restricted Subsidiaries have been validly issued and are fully paid and (if applicable) nonassessable.  As of the First Amendment Effective Date, Schedule 5.12 (a) sets forth the name and jurisdiction of organization of each Subsidiary and (b) sets forth the ownership interest of the Borrower in each of its Subsidiaries, including the percentage of such ownership.

 

Section 5.13                            Margin Regulations; Investment Company Act.  (a)  As of the Closing Date, not more than 25% of the value of the assets of the Borrower and its Restricted Subsidiaries, on a consolidated basis, is Margin Stock.  No Loan Party is engaged nor will it engage, principally or as one of its important activities, in the business of (i) purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB) or (ii) extending credit for the purpose of purchasing or carrying margin stock, and no proceeds of any Borrowings will be used for any purpose that violates Regulation U.

 

(b)                                 No Loan Party is an “investment company” as defined in the Investment Company Act of 1940.

 

Section 5.14                            Disclosure.  As of the Closing Date the written information and written data furnished or concerning the Loan Parties that has been made available to any Agent or any Lender by or on behalf of the Borrower in connection with the Original Transaction, when taken as a whole, did not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances 

 

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under which such statements were made (after giving effect to all supplements and updates thereto); provided, that (a) with respect to financial estimates, projected financial information, forecasts and other forward-looking information, the Borrower represents and warrants only that such information, when taken as a whole, was prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time of preparation and at the time such financial estimates, projected financial information, forecasts and other forward looking information are made available to any Agent or Lender; it being understood that (i) such projections are not to be viewed as facts, (ii) such projections are subject to significant uncertainties and contingencies, many of which are beyond the Borrower’s control, (iii) no assurance can be given that any particular projections will be realized and (iv) actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material and (b) no representation or warranty is made with respect to information of a general economic or general industry nature.

 

Section 5.15                            Intellectual Property; Licenses, Etc.  The Borrower and each of the Restricted Subsidiaries own free and clear of all Liens (except for Liens permitted by Section 7.01), or have a valid license or right to use, all IP Rights that are reasonably necessary for the operation of their respective businesses as currently conducted, except where the failure to have any such IP Rights, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Borrower, the operation of the respective businesses of the Borrower or any of its Restricted Subsidiaries as currently conducted does not infringe upon, misappropriate or otherwise violate any IP Rights held by any Person and to the knowledge of the Borrower, the Borrower and each Restricted Subsidiary’s IP Rights are not being infringed by any other Person, except, in each case, for such infringements, misappropriations or violations that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.  Each license or other grant of IP Rights granted to the Borrower or a Restricted Subsidiary is valid and binding on the Borrower and the Restricted Subsidiary party thereto, as applicable, and to the knowledge of the Borrower, each other party thereto, and is in full force and effect and enforceable in accordance with its terms, except where the failure to be valid, binding, enforceable and in full force and effect would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 5.16                            Solvency.

 

(a)                                 On the Closing Date, after giving effect to the Original Transaction, the Borrower and its Restricted Subsidiaries, on a consolidated basis, are Solvent.

 

(b)                                 On the First Amendment Effective Date, after giving effect to the First Amendment Transactions, the Borrower and its Subsidiaries, on a consolidated basis, are Solvent.

 

(c)                                  On the Second Amendment Effective Date, after giving effect to the Second Amendment Transactions, the Borrower and its Subsidiaries, on a consolidated basis, are Solvent.

 

Section 5.17                            [Reserved].

 

Section 5.18                            Compliance with Laws; PATRIOT Act; FCPA; OFAC.

 

(a)                                 Compliance with Laws.  (x) Each Loan Party and each Restricted Subsidiary is in compliance with the requirements of all applicable Laws (including, without limitation, the Sanctions Laws and Regulations and the FCPA) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (i) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate actions diligently conducted or (ii) the failure to comply therewith would not reasonably be expected to have a Material Adverse Effect and (y) the use of 

 

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proceeds of the Additional 2018 Incremental Term Loans complies with the PATRIOT Act in all material respects to the extent applicable.

 

(b)                                 FCPA.  No part of the proceeds of the Loans will be used, directly or, to the knowledge of the Borrower, indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the FCPA or the CFPOA.  The Borrower and its Subsidiaries have conducted their businesses in compliance with the FCPA, the UK Bribery Act 2010, the CFPOA and other similar anti-corruption legislation in other jurisdictions, and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

 

(c)                                  OFAC.  None of the Borrower or any of its Subsidiaries, nor, any director or officer of the Borrower or its Subsidiaries, nor to the knowledge of the Borrower, any employee or agent of the Borrower or any of its Subsidiaries, (i) is a Designated Person, (ii) is currently subject to any U.S. sanctions administered by OFAC or (iii) located, organized or resident in a country that is subject of Sanctions Laws and Regulations.  No part of the proceeds of the Loans will be used, directly or, to the knowledge of the Borrower, indirectly, in violation of any Sanctions Laws and Regulations.

 

Section 5.19                            Collateral Documents.  Subject to the terms of Section 4.01 and except as otherwise contemplated hereby or under any other Loan Documents, the provisions of the Collateral Documents, together with such filings, registrations and other actions required to be taken hereby or by the applicable Collateral Documents, are effective to create in favor of the Collateral Agent for the benefit of the Secured Parties a legal, valid and perfected Lien on the Collateral with the ranking or priority required by the relevant Collateral Documents (subject to Liens permitted by Section 7.01) on all right, title and interest of the Borrower and the other applicable Loan Parties, respectively, in the Collateral described therein (other than such Collateral in which a security interest cannot be perfected under the Uniform Commercial Code, the PPSA or by possession or control).

 

Notwithstanding anything herein (including this Section 5.19) or in any other Loan Document to the contrary, neither the Borrower nor any other Loan Party makes any representation or warranty as to (A) the effects of perfection or non-perfection, the priority or the enforceability of any pledge of or security interest in any Equity Interests of any Subsidiary that is not a Loan Party, or as to the rights and remedies of the Agents or any Lender with respect thereto, in each case, under foreign Law, (B) the pledge or creation of any security interest, or the effects of perfection or non-perfection, the priority or the enforceability of any pledge of or security interest to the extent such pledge, security interest, perfection or priority is not required pursuant to the Collateral and Guarantee Requirement or (C) on the Closing Date and until required pursuant to Section 6.12 or 6.14 or the proviso at the end of Section 4.01(a), the pledge or creation of any security interest, or the effects of perfection or non-perfection, the priority or enforceability of any pledge or security interest to the extent not required on the Closing Date pursuant to Section 4.01(a)(iii).

 

ARTICLE VI

 

Affirmative Covenants

 

So long as any Lender shall have any Commitment hereunder or any Loan or other Obligation hereunder (other than (i) contingent indemnification obligations as to which no claim has been asserted and (ii) Obligations under Secured Hedge Agreements and Obligations under Secured Cash Management Agreements) shall remain unpaid or unsatisfied, the Borrower shall, and shall (except in the case of the

 

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covenants set forth in Section 6.01, Section 6.02, Section 6.03 and Section 6.16) cause each of the Restricted Subsidiaries to:

 

Section 6.01                            Financial Statements.  Deliver to the Administrative Agent for prompt further distribution to each Lender each of the following and shall take the following actions:

 

(a)                                 within one hundred twenty (120) days after the end of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, stockholders’ equity and cash flows for such fiscal year together with related notes thereto, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by an opinion of an independent registered public accounting firm of nationally recognized standing, which opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification, explanatory paragraph or exception or any qualification, explanatory paragraph or exception as to the scope of such audit (other than as may be required solely as a result of any impending maturity of any Loans or Commitments or other Indebtedness of the Borrower and its Subsidiaries in excess of the Threshold Amount (including, for the avoidance of doubt, the Revolving Credit Agreement, the Existing U.S. 2022 Notes, the Existing U.S. 2023 Notes and the Existing U.S. 2026 Notes));

 

(b)                                 within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ending September 30, 2016), a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related (i) consolidated statements of income or operations for such fiscal quarter and for the portion of the fiscal year then ended setting forth in each case in comparative form the figures for the corresponding fiscal quarter and the corresponding portion of the previous fiscal year, as applicable, and (ii) consolidated statements of cash flows for the portion of the fiscal year then ended, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial position, results of operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject to normal year-end adjustments and the absence of footnotes;

 

(c)                                  within one hundred twenty (120) days after the end of each fiscal year (beginning with the fiscal year of the Borrower ending December 31, 2016), a consolidated budget for the then-current fiscal year as customarily prepared by management of the Borrower and setting forth the material underlying assumptions based on which such consolidated budget was prepared (including any projected consolidated balance sheet of the Borrower and its Subsidiaries as of the end of the then-current fiscal year and the related consolidated statements of projected operations or income and projected cash flow, in each case, to the extent prepared by management of the Borrower and included in such consolidated budget, which projected financial statements shall be prepared in good faith on the basis of assumptions believed to be reasonable at the time of preparation of such projected financial statements, it being understood that actual results may vary from such projections and that such variations may be material) provided that the requirement described in this clause (c) shall no longer apply following the consummation of a Qualifying IPO; and

 

(d)                                 simultaneously with the delivery of each set of consolidated financial statements referred to in Section 6.01(a) and Section 6.01(b) above, (i) if applicable, an internally prepared management summary of pro forma adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial statements and (ii) a customary management’s discussion and analysis.

 

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Notwithstanding the foregoing, the obligations in clauses (a) and (b) of this Section 6.01 may be satisfied with respect to financial information of the Borrower and its Subsidiaries by furnishing (A) the applicable financial statements of any direct or indirect parent of the Borrower that directly or indirectly holds all of the Equity Interests of the Borrower or (B) the Borrower’s or such entity’s Form 10-K or 10-Q, as applicable, filed with the SEC; provided that, with respect to each of clauses (A) and (B), (i) to the extent such information relates to a direct or indirect parent of the Borrower, such information is accompanied by an internally prepared management summary of consolidating information that explains in reasonable detail the differences between the information relating to such direct or indirect parent and its Subsidiaries on a consolidated basis, on the one hand, and the information relating to the Borrower and the Restricted Subsidiaries on a consolidated basis, on the other hand and (ii) to the extent such information is in lieu of information required to be provided under Section 6.01(a), such materials are accompanied by an opinion of an independent registered public accounting firm of nationally recognized standing, which opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit (other than solely as a result of the impending maturity of any Loan or Commitment).

 

Section 6.02                            Certificates; Other Information.  Deliver to the Administrative Agent for prompt further distribution to each Lender:

 

(a)                                 no later than five (5) days after the delivery of the financial statements referred to in Sections 6.01(a) and (b) (commencing with the financial statement delivery for the fiscal year ending December 31, 2016), a duly completed Compliance Certificate;

 

(b)                                 promptly after the same are publicly available, copies of all annual, regular, periodic and special reports, proxy statements and registration statements which the Borrower or any Restricted Subsidiary files with the SEC or with any similar Governmental Authority that may be substituted therefor or with any national securities exchange or national or provincial securities commission, as the case may be (other than amendments to any registration statement (to the extent such registration statement, in the form it became effective, is delivered to the Administrative Agent), exhibits to any registration statement and, if applicable, any registration statement on Form S-8), and in any case not otherwise required to be delivered to the Administrative Agent pursuant to any other provision of this Article VI;

 

(c)                                  promptly after the furnishing thereof, copies of any material statements or material reports furnished to any holder of the Existing U.S. 2022 Notes, Existing U.S. 2023 Notes and Existing U.S. 2026 Notes and not otherwise required to be furnished to the Administrative Agent pursuant to any other provision of this Article VI;

 

(d)                                 together with the delivery of a Compliance Certificate with respect to the financial statements referred to in (x) Section 6.01(a), (i) (A) a report setting forth the information required by Schedules A and B of the U.S. Security Agreement and Schedule A of the Canadian Security Agreement (or, in each case, confirming that there has been no change in such information since the Closing Date or the date of the last such report or other disclosure of such information to the Administrative Agent) and (B) solely with respect to Collateral of any Canadian Subsidiary that is or becomes a Loan Party as of such date, a supplemental perfection certificate, and (ii) a list of each Subsidiary of the Borrower that identifies each Subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate or a confirmation that there is no change in such information since the later of the Closing Date and the date of the last such list or other disclosure of such information to the Administrative Agent, and (y) Sections 6.01(a) and 6.01(b), a report setting forth the information required by Schedules A and B of the U.S. Pledge Agreement and Schedules 

 

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A and B of the Canadian Pledge Agreement (or, in each case, confirming that there has been no change in such information since the Closing Date or the date of the last such report or other disclosure of such information to the Administrative Agent);

 

(e)                                  [reserved];

 

(f)                                   [reserved]; and

 

(g)                                  promptly, such additional information regarding the business or financial condition of any Loan Party or any Restricted Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent may from time to time on its own behalf or on behalf of any Lender reasonably request; provided that such additional information is of a type customarily available to lenders in similar syndicated credit facilities.

 

Documents certificates, other information and notices required to be delivered pursuant to Section 6.01 and 6.02(b) and (c) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower (or any direct or indirect parent of the Borrower) posts such documents, or provides a link thereto on its website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are delivered by the Borrower (or any direct or indirect parent of the Borrower) (including by facsimile or electronic mail) to the Administrative Agent or its designee for posting on the Borrower’s behalf on Intralinks®, Syndtrak® or another relevant website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); or (iii) with respect to the items required to be delivered pursuant to Section 6.02(b) above in respect of information filed by the Borrower or any Restricted Subsidiary with any securities exchange or commission or the SEC or any governmental or private regulatory authority (other than Form 10-K and 10-Q reports (or similar reports in other jurisdictions) satisfying the requirements in Sections 6.01(a) and (b), respectively), such items have been made available on the website of such exchange authority or the SEC; provided that: (A) upon written request by the Administrative Agent or any Lender, the Borrower shall deliver paper (which may be electronic copies delivered via electronic mail) copies of any such document to the Administrative Agent or any Lender until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) other than with respect to items required to be delivered pursuant to Section 6.02(b) above, the Borrower (or any direct or indirect parent of the Borrower) shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such documents from the Administrative Agent and maintaining its copies of such documents.

 

The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Lead Arrangers will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Intralinks®, Syndtrak®, ClearPar or another similar electronic transmission system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material information (within the meaning of the United States federal and state securities laws) with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing that would not be publicly available, if the Borrower or its Subsidiaries, as applicable, were public reporting companies or had issued debt securities in reliance on Rule 144 of the Securities Act (“MNPI”), and which Public Lenders may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower 

 

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Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC,” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof, (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Lead Arrangers and the Lenders to treat such Borrower Materials as not containing MNPI (although it may be confidential, sensitive and proprietary) with respect to such Person, or its Affiliates, or any of their respective securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.08); (y) all Borrower Materials specifically marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information” and (z) the Administrative Agent Lead Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information.”  Notwithstanding the foregoing, the Borrower shall be under no obligation to mark any Borrower Materials “PUBLIC.”

 

Section 6.03                            Notices.  Promptly after a Responsible Officer obtains actual knowledge thereof, notify the Administrative Agent:

 

(a)                                 of the occurrence of any Default; and

 

(b)                                 of (i) any dispute, litigation, investigation or proceeding between the Borrower or any Restricted Subsidiary and any arbitrator or Governmental Authority, (ii) the filing or commencement of, or any material development in, any litigation or proceeding affecting the Borrower or any Restricted Subsidiary or any Subsidiary, including pursuant to any applicable Environmental Laws, the occurrence of any non-compliance by the Borrower or any Restricted Subsidiary or any of its Subsidiaries with, or liability under, any Environmental Law or Environmental Permit, or (iii) the occurrence of any ERISA Event or with respect to a Foreign Plan, a termination, withdrawal or noncompliance with applicable Laws or plan terms that, in any such case referred to in clauses (i), (ii) or (iii), has resulted or would reasonably be expected to result in a Material Adverse Effect.

 

Each notice pursuant to this Section 6.03 shall be accompanied by a written statement of a Responsible Officer of the Borrower (x) that such notice is being delivered pursuant to Sections 6.03(a) or (b) (as applicable) and (y) setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.

 

Section 6.04                            Payment of Taxes.  Timely pay, discharge or otherwise satisfy, as the same shall become due and payable, all of its obligations and liabilities in respect of Taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its property, except, in each case, to the extent (i) any such Tax, assessment, charge or levy is being contested in good faith and by appropriate actions and for which appropriate reserves have been established in accordance with GAAP or (ii) the failure to pay or discharge the same would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

Section 6.05                            Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its organization, incorporation or amalgamation, as the case may be and (b) take all reasonable action to obtain, preserve, renew and keep in full force and effect those of its rights (including IP Rights), licenses, permits, privileges, and franchises, which are material to the conduct of its business, except in the case of clause (a) or (b) to the extent (x) (other than with respect to the preservation of the existence of the Borrower) that failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (y) 

 

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pursuant to any merger, amalgamation, consolidation, liquidation, dissolution or Disposition permitted by Article VII.

 

Section 6.06                            Maintenance of Properties.  Except if the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order, repair and condition, ordinary wear and tear excepted and casualty, expropriation or condemnation excepted.

 

Section 6.07                            Maintenance of Insurance.  Maintain with insurance companies that the Borrower believes in good faith are financially sound and reputable at the time the relevant coverage is placed or renewed or with a Captive Insurance Subsidiary, insurance with respect to its properties and business against loss or damage, of such types and in such amounts as reasonably determined in good faith by the Borrower as appropriate for the business of the Borrower and its Restricted Subsidiaries (after giving effect to any self-insurance reasonable and customary for similarly situated Persons as reasonably determined in good faith by the Borrower as appropriate for the business of the Borrower and its Restricted Subsidiaries).  The Borrower shall use commercially reasonable efforts to ensure that (except for business interruption insurance (if any), director and officer insurance and worker’s compensation insurance) unless otherwise agreed by the Administrative Agent, as appropriate, (i) each liability insurance policy names the Administrative Agent, on behalf of the Secured Parties, as an additional insured thereunder as its interests may appear and/or (ii) each casualty insurance policy with respect to the Collateral contains a loss payable clause or endorsement that names the Administrative Agent, on behalf of the Secured Parties, as the loss payee thereunder.

 

Section 6.08                            Compliance with Laws.  Comply in all material respects with its Organization Documents and the requirements of all Laws (but excluding Laws governed by Sections 6.04, 6.05, 6.09 and 6.13) and all orders, writs, injunctions and decrees of any Governmental Authority applicable to it or to its business or property, except, in each case, in instances in which (a) such requirement of Law, order, writ, injunction or decree is being contested in good faith by appropriate actions diligently conducted or (b) the failure to comply therewith would not reasonably be expected individually or in the aggregate to have a Material Adverse Effect.

 

Section 6.09                            Sanctions and Anti-Corruption.  Conducts its business in such a manner so as to comply in all material respects with Sanctions Laws and Regulations, the FCPA and the CFPOA and maintains policies and procedures designed to promote and achieve compliance with these laws.

 

Section 6.10                            Lender Conference Calls.  At the request of the Administrative Agent and within fifteen (15) Business Days (or at such later date as may be agreed by the Administrative Agent in its reasonable discretion) of each date on which financial statements are required to be delivered pursuant to Section 6.01(a), hold a meeting (at a mutually agreeable time between the Borrower and the Administrative Agent) by conference call (the costs of such call to be paid by the Borrower) with all Lenders who choose to participate on such call, on which call shall be reviewed by the Borrower the financial results of the previous fiscal year covered by such financial statements and the financial condition of the Borrower and its Restricted Subsidiaries at such time.

 

Section 6.11                            Books and Records; Inspection and Audit Rights.  Keep proper books of record and account in which full, true and correct entries in conformity with GAAP and in material conformity with all applicable Laws are made of all dealings and transactions in relation to its business and activities and permit representatives and independent contractors of the Administrative Agent to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom (other than the records of the Board of Directors of such Loan Party 

 

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or such Restricted Subsidiary), and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants (subject to such accountants’ customary policies and procedures), all at the reasonable expense of the Borrower and at such reasonable times during normal business hours, as agreed between the Borrower and the Administrative Agent; provided that, only the Administrative Agent on behalf of the Lenders may exercise rights of the Administrative Agent and the Lenders under this Section 6.11 and the Administrative Agent shall not exercise such rights more often than one (1) time during any calendar year absent the existence of an Event of Default and such one (1) time shall be at the Borrower’s expense (it being understood that unless an Event of Default has occurred and is continuing, the Administrative Agent shall only visit locations where books and records and/or senior officers are located); provided, further, that when an Event of Default exists, the Administrative Agent (or any of its respective representatives or independent contractors) on behalf of the Lenders may do any of the foregoing at the expense of the Borrower at any time during normal business hours and upon reasonable advance notice.  The Administrative Agent shall give the Borrower the opportunity to participate in any discussions with the Borrower’s independent public accountants.  Notwithstanding anything to the contrary in this Section 6.11, none of the Borrower or any of the Restricted Subsidiaries will be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any document, information or other matter that (a) constitutes non-financial trade secrets or non-financial proprietary information, (b) in respect of which disclosure to the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by Law or any binding agreement with any third party or (c) is subject to attorney-client or similar privilege or constitutes attorney work product; provided that, to the extent legally permissible, the Borrower shall notify the Administrative Agent that any such document, information or other matter is being withheld pursuant to clauses (a), (b) or (c) of this Section 6.11 and shall use commercially reasonable efforts to communicate, to the extent permitted, the applicable information in a way that would not violate such restrictions and to eliminate such restrictions.

 

Section 6.12                            Covenant to Guarantee Obligations and Give Security.  From and after the Closing Date, at the Borrower’s expense, in accordance with and subject to the terms, conditions, and limitations of Collateral and Guarantee Requirement and any applicable limitation in any Collateral Document, take all action necessary or reasonably requested by the Administrative Agent to ensure that the Collateral and Guarantee Requirement continues to be satisfied, including:

 

(a)                                 upon the formation, incorporation or acquisition of any new direct or indirect Wholly Owned Material Subsidiary (in each case, other than an Excluded Subsidiary) by any Loan Party, the designation in accordance with Section 6.15 of any existing direct or indirect Wholly Owned Material Subsidiary as a Restricted Subsidiary (other than an Excluded Subsidiary) or upon any Wholly Owned Material Subsidiary ceasing to be an Excluded Subsidiary:

 

(i)                                     within sixty (60) days after such formation, incorporation, acquisition or designation occurred (or such longer period as the Administrative Agent may agree to in its reasonable discretion) after such formation, incorporation, acquisition or designation, subject to the First Lien Intercreditor Agreement:

 

(1)                                 [reserved];

 

(2)                                 cause each such Material Subsidiary that is required to become a Subsidiary Guarantor pursuant to the Collateral and Guarantee Requirement to duly execute and deliver to the Administrative Agent joinders to the Guaranty, Security Agreement Supplements, Intellectual Property Security Agreements and other security agreements and documents required by the Collateral Documents or, as reasonably requested by and in form already specified or otherwise reasonably satisfactory to the Administrative Agent (consistent with the Security Agreements, Intellectual Property Security Agreements and other Collateral Documents in effect 

 

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on the Closing Date with appropriate modifications to address any applicable local Laws), in each case granting the Guarantees and Liens required by the Collateral and Guarantee Requirement;

 

(3)                                 cause each such Material Subsidiary that is required to become a Subsidiary Guarantor pursuant to the Collateral and Guarantee Requirement to deliver any and all certificates representing Equity Interests (to the extent certificated) that are required to be pledged pursuant to the Collateral and Guarantee Requirement, accompanied by undated stock powers or other appropriate instruments of transfer executed in blank and the Material Debt Instruments (if any) evidencing the Indebtedness held by such Material Subsidiary and required to be pledged pursuant to the Collateral Documents, indorsed in blank to the Collateral Agent;

 

(4)                                 take and cause the applicable Material Subsidiary and each direct or indirect parent of such applicable Material Subsidiary that is required to become a Subsidiary Guarantor pursuant to the Collateral and Guarantee Requirement to take whatever action (including the filing of financing statements under the Uniform Commercial Code, PPSA or other applicable Laws and other applicable registration forms and filing statements, and delivery of stock and other membership interest certificates and powers to the extent certificated) as may be necessary in the reasonable opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it) valid and perfected (to the extent required by the Collateral and Guarantee Requirement and the Collateral Documents) Liens required by the Collateral and Guarantee Requirement;

 

(ii)                                  within ninety (90) days after the reasonable request, if any, therefor by the Administrative Agent (or, in each case, such longer period as the Administrative Agent may agree to in its discretion), deliver to the Administrative Agent a signed copy of a customary opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel(s) for the Loan Parties reasonably acceptable to the Administrative Agent as to such matters set forth in Section 6.12(a)(i)(2) as the Administrative Agent may reasonably request; and

 

(b)                                 (i) with respect to Material Real Property set forth on Schedule 1.01B, within ninety (90) days after the Closing Date (or such longer period as the Administrative Agent may agree in its discretion) and (ii) with respect to Material Real Property acquired after the Closing Date, within ninety (90) days after the date of such acquisition (or such longer period as the Administrative Agent may agree in its discretion), the Borrower shall, in each case, take, or cause the relevant Loan Party to take, the actions referred to in Section 6.14(b) with respect to Material Real Property of a Loan Party to the extent such Material Real Property shall not already be subject to a valid and perfected Lien pursuant to the Collateral and Guarantee Requirement.

 

Section 6.13                            Compliance with Environmental Laws.  Except, in each case, to the extent that the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect: comply, and take all reasonable actions to cause any lessees and other Persons operating or occupying its properties to comply with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup, response or other corrective action necessary to address all Hazardous Materials at, on, under or emanating from any facilities currently or formerly owned, leased or operated by it as otherwise required by any applicable Environmental Laws or, if applicable to the Borrowers and their successors and assigns, a written settlement or consent agreement with those Governmental Authorities having jurisdiction; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to undertake any such cleanup, response or other corrective action to the extent that its obligation to do so is being 

 

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contested in good faith by appropriate actions and for which adequate reserves have been provided in accordance with GAAP.

 

Section 6.14                            Further Assurances.  Subject to the provisions and limitations of the Collateral and Guarantee Requirement and any applicable limitations in any Collateral Document and in each case at the expense of the Borrower:

 

(a)                                 Promptly upon reasonable request by the Administrative Agent or as may be required by applicable Laws (i) correct any material defect or error that may be discovered in the execution, acknowledgment, filing, registration or recordation of any Collateral Document or other document or instrument relating to any Collateral and (ii) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments, in each case, as the Administrative Agent may reasonably request from time to time in order to carry out more effectively the purposes of the Collateral Documents.

 

(b)                                 In the case of any Material Real Property, to provide the Collateral Agent with a Mortgage in respect of such Material Real Property, (x) with respect to Material Real Property set forth on Schedule 1.01B, within ninety (90) days after the Closing Date (or such longer period as the Administrative Agent may agree in its discretion) and (y) with respect to Material Real Property acquired after the Closing Date, within ninety (90) days after the date of such acquisition (or such longer period as the Administrative Agent may agree in its discretion), in each case, together with:

 

(i)                                     evidence that counterparts of or acknowledgement and directions from the Borrower necessary to register the Mortgages have been duly executed, acknowledged and delivered and the Mortgages are in form suitable for filing, registration or recording in all filing or recording or land registry offices that the Administrative Agent may deem reasonably necessary or desirable in order to create a valid and perfected Lien on such Material Real Property in favor of the Collateral Agent for the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent;

 

(ii)                                  fully paid American Land Title Association Lender’s Extended Coverage title insurance policies or the equivalent or other form available in each applicable jurisdiction (the “Mortgage Policies”) in form and substance, with customary endorsements available in the applicable jurisdiction and in amount, reasonably acceptable to the Administrative Agent (not to exceed the value (as determined in good faith by the Borrower) of the real properties covered thereby), issued, coinsured and reinsured by title insurers reasonably acceptable to the Administrative Agent, insuring the Mortgages to be valid subsisting Liens on the real property described therein in the ranking or the priority of which it is expressed to have within the Mortgages, subject only to Liens permitted by Section 7.01, and providing for such other affirmative insurance (including endorsements for future advances under the Loan Documents) and such coinsurance and direct access reinsurance as the Administrative Agent may reasonably request and is available in the applicable jurisdiction at ordinary rates;

 

(iii)                               to the extent reasonably requested by the Administrative Agent, customary legal opinions from local counsel for the Loan Parties in states or provinces in which such Material Real Property is located with respect to the enforceability of the Mortgages and the filing or registration of any related fixture filings/registrations;

 

(iv)                              as promptly as practicable after the reasonable request therefor by the Administrative Agent, surveys and any then completed Phase I type environmental assessment 

 

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reports; provided that the Administrative Agent may in its reasonable discretion accept any such existing survey to the extent prepared as of a date reasonably satisfactory to the Administrative Agent; provided, however, that there shall be no obligation to deliver to the Administrative Agent any environmental site assessment report whose disclosure to the Administrative Agent would require the consent of a Person other than the Borrower or one of its Subsidiaries, where, despite the commercially reasonable efforts of the Borrower to obtain such consent, such consent cannot be obtained;

 

(v)                                 “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determinations with respect to each parcel of improved Material Real Property located in the United States and subject to a Mortgage (together with notice about special flood hazard area status and flood disaster assistance, duly executed by the applicable Loan Party), and in the event that any parcel of improved Material Real Property located in the United States that is subject to a Mortgage is located in a flood hazard area, evidence of flood insurance in an amount reasonably satisfactory to the Administrative Agent; and

 

(vi)                              such other evidence that all other actions that the Administrative Agent may reasonably deem necessary or desirable in order to create valid and subsisting Liens on the real property described in the Mortgages have been taken.

 

Section 6.15                            Designation of Subsidiaries.  The Borrower may at any time after the Closing Date designate (or re-designate) any Restricted Subsidiary as an Unrestricted Subsidiary or designate (or re-designate, as the case may be) any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation (or re-designation), no Event of Default shall have occurred and be continuing, (ii) no Subsidiary may be designated as an Unrestricted Subsidiary if, after such designation, it would be a “Restricted Subsidiary” for the purpose of any Incremental Equivalent Debt, Refinancing Equivalent Debt or Junior Financing and (iii) the Investment resulting from the designation of such Subsidiary as an Unrestricted Subsidiary as described in the immediately succeeding sentence is permitted by Section 7.02.  The designation of any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the Borrower therein at the date of designation in an amount equal to the fair market value as determined by the Borrower in good faith of the Borrower’s or a Subsidiary’s (as applicable) Investment therein.  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Indebtedness or Liens of such Subsidiary existing at such time and a return on any Investment by the Borrower or the applicable Subsidiary in Unrestricted Subsidiaries pursuant to the preceding sentence in an amount equal to the fair market value as determined by the Borrower in good faith at the date of such designation of the Borrower’s or a Subsidiary’s (as applicable) Investment in such Subsidiary.

 

Section 6.16                            Maintenance of Ratings.  Use commercially reasonable efforts to maintain (i) a public corporate credit rating (but not a specific rating) from S&P and a public corporate family rating (but not a specific rating) from Moody’s, in each case in respect of the Borrower, and (ii) a public rating (but not a specific rating) in respect of the Loans from each of S&P and Moody’s.

 

Section 6.17                            Post-Closing Actions.  Within the time periods specified on Schedule 6.17 (as each may be extended by the Administrative Agent in its reasonable discretion), provide such Collateral Documents and complete such undertakings as are set forth on Schedule 6.17.  All conditions precedent and representations contained in this Agreement and the other Loan Documents shall be deemed modified to the extent necessary to effect the foregoing (and to permit the taking of the actions described above within the time periods required above, rather than as elsewhere provided in the Loan Documents); provided that (x) to the extent any representation and warranty would not be true because the foregoing actions were not taken on the Closing Date, the respective representation and warranty shall 

 

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be required to be true and correct at the time the respective action is taken (or was required to be taken) in accordance with the foregoing provisions of this Section 6.17 and (y) all representations and warranties relating to the Collateral Documents shall be required to be true immediately after the actions required to be taken by this Section 6.17 have been taken (or were required to be taken) and the parties hereto acknowledge and agree that the failure to take any of the actions required above, within the relevant time periods required above, shall give rise to an immediate Event of Default pursuant to this Agreement.

 

Section 6.18                            Use of Proceeds.  Use the proceeds (a) of the Initial Term Loans, whether directly or indirectly, to finance a portion of the Original Transaction, including the consummation of the Acquisition and the payment of Original Transaction Expenses, and for working capital and other general corporate purposes (including to fund OID or upfront fees in connection with the Original Transaction), (b) of the Effective Date Incremental Term Loans, on the First Amendment Effective Date, to repay in full the Initial Term Loans outstanding as of the First Amendment Effective Date (together with any accrued and unpaid interest thereon), finance a portion of the First Amendment Transactions, including the consummation of the First Amendment Transactions and the payment of the First Amendment Transaction Expenses, and for working capital and other general corporate purposes (including to fund OID or upfront fees in connection with the First Amendment Transactions), (c) of the Delayed Draw Term Loans, to be used on and/or from time to time after the First Amendment Effective Date, to provide financing for, or refinance indebtedness incurred or replace cash used in connection with Pre-Approved Acquisitions and (d) of any Borrowing other than those referred to in the foregoing clauses (a), (b) and (c), for any purpose not otherwise prohibited under this Agreement, including for general corporate purposes, working capital needs, Capital Expenditures, Permitted Acquisitions and other similar Investments, permitted Restricted Payments, permitted refinancing of indebtedness and any other transaction not prohibited by this Agreement.

 

Section 6.19                            Change in Nature of Business.  Engage in material lines of business not substantially different from those lines of business conducted or proposed to be conducted by the Borrower or any of the Restricted Subsidiaries on the Closing Date or any business or any other activities that are reasonably similar, ancillary, incidental, complementary or related to, or a reasonable extension, development or expansion of, the businesses conducted or proposed to be conducted by the Borrower or any of the Restricted Subsidiaries on the Closing Date.

 

ARTICLE VII

 

Negative Covenants

 

So long as any Lender shall have any Commitment hereunder or any Loan or other Obligation hereunder (other than (i) contingent indemnification obligations as to which no claim has been asserted and (ii) Obligations under Secured Hedge Agreements and Obligations under Secured Cash Management Agreements) shall remain unpaid or unsatisfied, the Borrower shall not, nor shall the Borrower permit any Restricted Subsidiary to:

 

Section 7.01                            Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

 

(a)                                 Liens created pursuant to any Loan Document;

 

(b)                                 Liens existing on the First Amendment Effective Date and set forth on Schedule 7.01(b);

 

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(c)                                  Liens for Taxes, assessments or governmental charges that are not overdue for a period of more than thirty (30) days or if more than thirty (30) days overdue, that are being contested in good faith and by appropriate actions for which appropriate reserves have been established in accordance with GAAP;

 

(d)                                 statutory or common law Liens of landlords, sublandlords, carriers, warehousemen, mechanics, materialmen, repairmen, construction contractors or other like Liens, or other customary Liens in favor of such Persons, so long as, in each case, such Liens secure amounts not overdue for a period of more than sixty (60) days or, if more than sixty (60) days overdue no other action has been taken to enforce such Lien, such Lien is being contested in good faith and by appropriate actions for which appropriate reserves have been established in accordance with GAAP;

 

(e)                                  pledges or deposits (i) in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security laws or similar legislation, health, disability or other employee benefits, (ii) in the ordinary course of business securing liability for reimbursement or indemnification obligations of insurance carriers providing property, casualty or liability insurance to the Borrower or any Subsidiaries or any other insurance or self-insurance arrangements and (iii) in respect of letters of credit or bank guarantees that have been posted by the Borrower or any Restricted Subsidiaries to support the payments of the items set forth in clauses (i) and (ii) of this Section 7.01(e);

 

(f)                                   pledges, deposits or other Liens (i) to secure the performance of bids, tenders, trade contracts, governmental contracts and leases (other than Indebtedness for borrowed money), statutory obligations, surety, stay, customs, bid and appeal bonds, performance and return of money bonds, performance and completion guarantees, agreements with utilities and other obligations of a like nature (including those to secure health, safety and environmental obligations) incurred in the ordinary course of business or consistent with industry practice and (ii) in respect of letters of credit or bank guarantees that have been posted to support payment of the items set forth in clause (i) of this Section 7.01(f);

 

(g)                                  easements, servitudes, rights-of-way, restrictions (including zoning, building and similar restrictions), encroachments, protrusions, covenants, variations in area of measurement, declarations on or with respect to the use of property, matters of record affecting title, liens restricting or prohibiting access to or from lands abutting on controlled access highways or covenants affecting the use to which lands may be put, and other similar encumbrances and title defects affecting real property that, in the aggregate, do not in any case materially interfere with the ordinary conduct of the business of the Borrower and their respective Subsidiaries taken as a whole, or the use of the property for its intended purpose, and any other exceptions to title on the Mortgage Policies accepted by the Administrative Agent in accordance with this Agreement;

 

(h)                                 Liens arising from judgments or orders for the payment of money (or appeal or other surety bonds relating thereto) not constituting an Event of Default under Section 8.01(g);

 

(i)                                     (i) Liens securing obligations in respect of Indebtedness permitted under Section 7.03(e); provided that (A) such Liens do not at any time encumber any property other than the property the acquisition, lease, construction, design, repair or improvement of which was financed by such Indebtedness, replacements thereof and additions and accessions to such property and the proceeds and the products thereof and customary security deposits and (B) such Liens do not at any time extend to or cover any assets (except for additions and accessions to such assets, the proceeds and products thereof and customary security deposits) other than the assets subject to, or acquired, leased, constructed, designed, repaired or improved with the proceeds of such Indebtedness; provided that, in the case of each 

 

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of subclause (A) and (B), individual financings provided by one lender may be cross collateralized to other financings provided by such lender or its Affiliates and (ii) Liens on assets of Non-Loan Parties securing Indebtedness of such Non-Loan Parties permitted pursuant to Section 7.03 or other obligations of any Non-Loan Party not constituting Indebtedness;

 

(j)                                    (i) leases, non-exclusive licenses, subleases or non-exclusive sublicenses (including with respect to intellectual property and software) (or other agreements under which the Borrower or any Restricted Subsidiary has granted non-exclusive rights to end users to access and use the Borrower’s or any Restricted Subsidiary’s products, technologies or services in the ordinary course of business) or exclusive licenses or sublicenses of IP Rights which are not material to the business and, in each case, are granted to others in the ordinary course of business which do not (A) interfere in any material respect with the business of the Borrower and the Subsidiaries, taken as a whole, or (B) secure any Indebtedness for borrowed money (the foregoing licenses, “Permitted Exclusive Licenses”) and (ii) the rights reserved or vested in any Person (other than any Loan Party or any Restricted Subsidiary) by the terms of any lease, license, sublease, sublicense, franchise, grant or permit held by the Borrower or any other Restricted Subsidiaries or by a statutory provision, to terminate any such lease, non-exclusive license, sublease, non-exclusive sublicense, franchise, grant or permit, or to require annual or periodic payments as a condition to the continuance thereof;

 

(k)                                 Liens (i) in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business, (ii) attaching to commodity trading accounts or other commodities brokerage accounts incurred in the ordinary course of business and (iii) on specific items of inventory or other goods and proceeds thereof of any Person securing such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or such other goods in the ordinary course of business;

 

(l)                                     Liens (i) of a collection bank arising under Section 4-208 of the Uniform Commercial Code or other similar provisions of applicable Laws on the items in the course of collection and (ii) in favor of a banking or other financial institution arising as a matter of common or statutory Law or under customary general terms and conditions encumbering deposits or other funds maintained with a financial institution (including the right of setoff);

 

(m)                             Liens (i) on advances of cash or Cash Equivalents or escrow deposits in favor of the seller of any property to be acquired in an Investment permitted pursuant to Section 7.02(f), Section 7.02(i), Section 7.02(j), Section 7.02(n), Section 7.02(p), Section 7.02(q), Section 7.02(s), Section 7.02(t), Section 7.02(u), Section 7.02(z) and Section 7.02(bb) to be applied against the purchase price for such Investment or otherwise in connection with any customary escrow arrangements with respect to any such Investment or any Disposition permitted under Section 7.05 (including any letter of intent or purchase agreement with respect to such Investment or Disposition), (ii) consisting of an agreement to Dispose of any property in a Disposition permitted under Section 7.05, in each case, solely to the extent such Investment or Disposition, as the case may be, would have been permitted on the date of the creation of such Lien or on the date of any contract for such Investment or Disposition or (iii) with respect to escrow deposits consisting of the proceeds of Indebtedness (and related interest and fee amounts) otherwise permitted pursuant to Section 7.03 in connection with customary redemption terms in connection with escrow arrangements financing, and contingent on the consummation of any Investment, Disposition or Restricted Payment permitted by Section 7.02, Section 7.05 or Section 7.06;

 

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(n)                                 Liens in favor of the Borrower or a Restricted Subsidiary securing Indebtedness owing to the Borrower or such Restricted Subsidiary permitted under Section 7.03; provided that no Loan Party shall grant a Lien in favor of any Non-Loan Party;

 

(o)                                 Liens existing on property at the time of its acquisition or existing on the property (or Equity Interests) of any Person at the time such Person becomes a Restricted Subsidiary, in each case after the date hereof (but excluding Liens deemed to be incurred upon the designation (or re-designation) of an Unrestricted Subsidiary as a Restricted Subsidiary); provided that (i) other than with respect to Indebtedness incurred pursuant to Section 7.03(u), such Lien was not created in contemplation of such acquisition or such Person becoming a Restricted Subsidiary, (ii) such Lien does not extend to or cover any other property of the Borrower or any Restricted Subsidiary other than the Person(s) acquired and/or formed to make such acquisitions and Subsidiaries of such Person(s) (other than the proceeds or products thereof and, except in the case of a Subsidiary Guarantor, other than after-acquired property of and Equity Interests in such acquired Restricted Subsidiary (it being understood and agreed to the extent such Lien secures Indebtedness assumed pursuant to Section 7.03(g) consisting of financings of the type described in Section 7.03(e), any such individual financings by any lender may be cross-collateralized to other financings of such type provided by such lender or its Affiliates)) and (iii) the Indebtedness secured thereby is permitted under Section 7.03(g), (n), (t) or (u);

 

(p)                                 any interest or title (and any encumbrances on such interest or title) of a lessor, sublessor, licensor or sublicensor or secured by a lessor’s, sublessor’s, licensor’s or sublicensor’s interest under leases or subleases (other than Capitalized Leases) or licenses or sublicenses, in each case entered into by the Borrower or any of the Restricted Subsidiaries in the ordinary course of business;

 

(q)                                 (i) Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Borrower or any of the Restricted Subsidiaries in the ordinary course of business and (ii) Liens or other similar provisions of applicable Laws under Article 2 of the Uniform Commercial Code or similar provisions of applicable Laws in favor of a seller or buyer of goods;

 

(r)                                    Liens deemed to exist in connection with Investments in repurchase agreements permitted under Section 7.02 and reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts maintained in the ordinary course of business and not for speculative purposes;

 

(s)                                   to the extent constituting Liens, Dispositions expressly permitted under Section 7.05;

 

(t)                                    Liens that are customary contractual rights of setoff or banker’s liens (i) relating to the establishment of depository relations with banks or other deposit-taking financial institutions in the ordinary course and not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposit, automatic clearinghouse accounts or sweep accounts of the Borrower or any of the Restricted Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the Borrower or any of the Restricted Subsidiaries or (iii) relating to purchase orders and other agreements entered into with customers of the Borrower or any of the Restricted Subsidiaries in the ordinary course of business;

 

(u)                                 Liens solely on any cash money deposits made by the Borrower or any of the Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;

 

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(v)                                 leases or subleases in the ordinary course of business in respect of real property on which facilities or equipment owned or leased by the Borrower or any of its Restricted Subsidiaries are located;

 

(w)                               Liens evidenced by the filing of Uniform Commercial Code or PPSA financing statements or similar public filings, registrations or agreements in foreign jurisdictions, in each case, relating to leases permitted under this Agreement, and other precautionary statements, filings, registrations or agreements;

 

(x)                                 Liens on insurance policies and the proceeds thereof securing the financing of the premiums or of the obligations with respect thereto not exceeding since the First Amendment Effective Date the greater of (x) C$30,000,000 and (y) 1.0% of Consolidated Total Assets determined at the time of creation thereof;

 

(y)                                 customary rights of first refusal and tag, drag and similar rights in joint venture agreements entered into in the ordinary course of business;

 

(z)                                  customary Liens of an indenture trustee on money or property held or collected by it to secure fees, expenses and indemnities owing to it by any obligor under an indenture;

 

(aa)                          any encumbrance or restriction (including put and call arrangements) with respect to Equity Interests of any Joint Venture, Subsidiary that is not Wholly Owned or similar arrangement pursuant to any Joint Venture, non-Wholly Owned Subsidiary or similar agreement and not for Indebtedness for borrowed money, other than Indebtedness (to the extent otherwise permitted or not prohibited hereunder) of such Joint Venture or non-Wholly Owned Subsidiary;

 

(bb)                          Liens securing Swap Contracts permitted under Section 7.03(f) (or any Permitted Refinancing in respect thereof) that are in an aggregate amount since the First Amendment Effective Date not to exceed C$10,000,000 at any time;

 

(cc)                            any zoning, building, conservation, environmental or similar law or right reserved to or vested in any Governmental Authority to control or regulate the use of any real property that does not materially interfere with the ordinary conduct of the business of the Borrower and the Restricted Subsidiaries, taken as a whole;

 

(dd)                          the modification, replacement, renewal, refinancing or extension of any Lien permitted by clauses (b), (i), (o) and (ii) of this Section 7.01 and this Section 7.01(dd); provided that (i) the Lien does not extend to any additional property other than (A)(x) accessions, additions and improvements on the property originally subject to the Lien, (y) after-acquired property that is affixed or incorporated into the property covered by such Lien (or that, in accordance with such clause was permitted to have secured the Indebtedness or other Obligations so modified, replaced, renewed, refinanced or extended) and (z) in the case of Liens originally permitted by Section 7.01(o), after-acquired property of the applicable Restricted Subsidiary to the extent the security agreements in place at the time of the acquisition of such Restricted Subsidiary required the grant of such Lien in after-acquired property, and (B) proceeds and products thereof (it being understood and agreed that individual financings of the type described in Section 7.03(e) by any lender may be cross-collateralized to other financings of such type provided by such lender or its Affiliates), and (ii) the replacement, renewal, extension or refinancing of the obligations secured or benefited by such Liens is, if constituting Indebtedness, a Permitted Refinancing permitted by Section 7.03;

 

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(ee)                            Liens on all or a portion of the Collateral securing obligations in respect of Permitted Pari Passu Secured Refinancing Debt, Permitted Junior Secured Refinancing Debt or Permitted Ratio Debt and any Permitted Refinancing of any of the foregoing; provided that (x) any such Liens securing such Indebtedness that is secured by all or a portion of the Collateral on a pari passu basis (but without regard to control of remedies) with the Obligations shall be subject to a First Lien Intercreditor Agreement and (y) any such Liens securing such Indebtedness that is secured by the Collateral on a junior basis to the Liens securing the Obligations shall be subject to a Junior Lien Intercreditor Agreement;

 

(ff)                              (i) deposits of cash with the owner or lessor of premises leased or operated by the Borrower or any of the Restricted Subsidiaries and (ii) cash collateral on deposit with banks or other financial institutions issuing letters of credit (or backstopping such letters of credit) or other equivalent bank guarantees issued naming as beneficiaries the owners or lessors of premises leased or operated by the Borrower or any of the Restricted Subsidiaries, in each case in the ordinary course of business of the Borrower and such Restricted Subsidiaries to secure the performance of the Borrower’s or such Restricted Subsidiary’s obligations under the terms of the lease for such premises;

 

(gg)                            Liens on cash or Cash Equivalents used to defease or to satisfy and discharge Indebtedness; provided that such defeasance or satisfaction and discharge is not prohibited hereunder;

 

(hh)                          Liens securing obligations in respect of Indebtedness permitted under Section 7.03(r); provided that (x) any such Liens securing such Indebtedness that is secured by all or a portion of the Collateral on a pari passu basis (but without regard to control of remedies) with the Obligations shall be subject to a First Lien Intercreditor Agreement and (y) any such Liens securing such Indebtedness that is secured by all or a portion of the Collateral on a junior basis to the Liens securing the Obligations shall be subject to a Junior Lien Intercreditor Agreement;

 

(ii)                                  other Liens securing Indebtedness or other obligations (including any modification, replacement, renewal or extension of Liens originally incurred pursuant to this clause (ii) in reliance on clause (dd) of this Section 7.01) in an aggregate principal amount at the time of incurrence of any such Indebtedness or other obligations not exceeding since the First Amendment Effective Date the greater of (x) C$240,000,000 and (y) 60% of Consolidated EBITDA as of the last day of the most recently ended Test Period determined at the time of incurrence of such Indebtedness or other obligations secured by such Lien (calculated on a Pro Forma Basis), which Liens, in each case under this Section 7.01(ii), at the election of the Borrower, shall be subject to a First Lien Intercreditor Agreement or Junior Lien Intercreditor Agreement;

 

(jj)                                Liens securing obligations under, and secured ratably pursuant to, the Revolving Credit Agreement and other obligations of Persons that are lenders under the Revolving Credit Agreement and their Affiliates including Liens securing obligations pursuant to any Swap Contracts and cash management obligations; provided that any such Liens securing such Indebtedness that is secured by all or a portion of the Collateral on a pari passu basis (but without regard to control of remedies) with the Obligations shall be subject to a First Lien Intercreditor Agreement;

 

(kk)                          Liens of bailees arising in the ordinary course of business;

 

(ll)                                  Liens securing obligations (other than obligations representing Indebtedness for borrowed money) under operating, reciprocal easement or similar agreements entered into in the ordinary course of business of the Borrower and its Restricted Subsidiaries;

 

(mm)                  Liens securing obligations in respect of letters of credit, bank guarantees, bankers’ acceptance, warehouse receipts or similar obligations permitted to be incurred pursuant to 

 

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Sections 7.03(p) and (q) and covering (i) the property (or the documents of title in respect of such property) financed by such letters of credit, bank guarantees, bankers’ acceptance, warehouse receipts or similar obligations and the proceeds and products thereof or (ii) cash collateral provided to support such obligations;

 

(nn)                          Liens on goods or inventory the purchase, shipment or storage price of which is financed by a documentary letter of credit, bank guarantee or bankers’ acceptance issued or created for the account of the Borrower or any Restricted Subsidiary in the ordinary course of business; provided that such Lien secures only the obligations of the Borrower or its Restricted Subsidiaries in respect of such letter of credit, bank guarantee or bankers’ acceptance to the extent permitted to be incurred pursuant to Section 7.03;

 

(oo)                          utility and similar deposits in the ordinary course of business;

 

(pp)                          Liens in favor of the Borrower or any Restricted Subsidiary in connection with the Original Transactions or the First Amendment Transactions;

 

(qq)                          Solely with respect to any property located in Canada, reservations in any original grants from the Crown of any land or interest therein, statutory exceptions to title and reservations of mineral rights (including coal, oil and natural gas) in any grants from the Crown or from any other predecessors in title;

 

(rr)                                undetermined or inchoate Liens, arising or potentially arising under statutory provisions which have not at the time been filed or registered in accordance with applicable Law or of which written notice has not been duly given in accordance with applicable Law or which, although filed or registered, relate to obligations not due or delinquent;

 

(ss)                              securities to public utilities or Governmental Authorities when required by the utility or Governmental Authority in connection with the supply of services or utilities; and

 

(tt)                                Liens in favor of landlords securing obligations under real property leases, provided that (i) such liens only attach to the movable property located on the premises subject to such real property leases and (ii) such premises are located in the Province of Quebec.

 

The expansion of Liens by virtue of accrual of fluctuations in the exchange rate of currencies will not be deemed to be an incurrence of Liens for purposes of this Section 7.01.

 

For purposes of determining compliance with this Section 7.01, (x) a Lien need not be incurred solely by reference to one category of Liens described in clauses (a) through (tt) above but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category) and (y) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Liens described in clauses (a) through (tt) above, the Borrower, in its sole discretion, may classify or may subsequently reclassify at any time such Lien (or any portion thereof) in any manner that complies with this covenant; provided that (a) all Liens securing any Permitted Pari Passu Secured Refinancing Debt or Permitted Junior Secured Refinancing Debt or any Permitted Refinancing in respect of the foregoing shall at all times be justified in reliance only on the exception in Section 7.01(ee), (b) all Liens securing any Incremental Equivalent Debt or any Permitted Refinancing in respect thereof shall at all times be justified in reliance only on the exception in Section 7.01(hh) and (c) all Liens securing the Obligations shall at all times be justified in reliance only on the exception in Section 7.01(a).

 

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Section 7.02                            Investments.  Make or hold any Investments, except:

 

(a)                                 Investments in assets that are Cash Equivalents or were Cash Equivalents when made;

 

(b)                                 loans, promissory notes or advances to future, present or former officers, directors, members of management, employees and consultants of the Borrower (or any direct or indirect parent thereof) or any of the Restricted Subsidiaries (i) for reasonable and customary business-related travel, entertainment, relocation, housing and analogous ordinary business purposes or consistent with past practices, (ii) in connection with such Person’s purchase of Equity Interests of the Borrower (or any direct or indirect parent thereof; provided that, to the extent such loans or advances are made in cash, the amount of such loans and advances used to acquire such Equity Interests shall be contributed or paid to the Borrower in cash) or (iii) for any other purpose in an aggregate principal amount outstanding under this clause (iii) since the First Amendment Effective Date not to exceed C$7,500,000 at any time;

 

(c)                                  Investments by the Borrower or any Restricted Subsidiary in the Borrower or any Restricted Subsidiary; provided that the aggregate amount of Investments of Loan Parties made in Non-Loan Parties pursuant to this Section 7.02(c) shall not at any time outstanding since the First Amendment Effective Date exceed the greater of (x) C$40,000,000 and (y) 1.2% of Consolidated Total Assets determined at the time of such Investment (calculated on a Pro Forma Basis);

 

(d)                                 Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof and other credits to suppliers, in each case, in the ordinary course of business;

 

(e)                                  Investments consisting of Liens, Indebtedness, fundamental changes, Dispositions, Restricted Payments and prepayments of Indebtedness permitted under Section 7.01, Section 7.03 (other than Section 7.03(c)(ii) or (d)), Section 7.04 (other than Section 7.04(a)(ii), (c)(ii) or (f)), Section 7.05 (other than Section 7.05(d)(ii) or (e)), Section 7.06 (other than Section 7.06(d) or (g)(iii)) and Section 7.12, respectively;

 

(f)                                   Investments existing on the First Amendment Effective Date or made pursuant to legally binding commitments in existence or otherwise contemplated on the First Amendment Effective Date (i) set forth on Schedule 7.02(f), (ii) consisting of intercompany Investments outstanding on the First Amendment Effective Date, and (iii) any modification, replacement (that does not result in an Investment in any other Person), renewal, reinvestment (that does not result in an Investment in any other Person) or extension of any of the foregoing; provided that (x) the amount of any Investment permitted pursuant to this Section 7.02(f) is not increased from the amount of such Investment on the First Amendment Effective Date except pursuant to the terms of such Investment as of the First Amendment Effective Date or as otherwise permitted by another clause of this Section 7.02 and (y) any Investment in the form of Indebtedness of any Loan Party owed to any Non-Loan Party shall be subordinated to the Obligations on subordination terms no less favorable to the Lenders (as determined by the Borrower) than the subordination terms set forth in an Intercompany Note;

 

(g)                                  Investments in Swap Contracts of the type permitted under Section 7.03;

 

(h)                                 promissory notes and other non-cash consideration that is permitted to be received in connection with Dispositions permitted by Section 7.05;

 

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(i)                                     (A) a Pre-Approved Acquisition and (B) the purchase or other acquisition of all or substantially all of the property and assets of any Person or of assets constituting a business unit, a line of business or division of such Person or Equity Interests in a Person that, upon the consummation thereof, will be a Restricted Subsidiary (including as a result of a merger or consolidation and/or any Investment in any Subsidiary that serves to increase the equity ownership of the Borrower or any Restricted Subsidiary therein); provided that with respect to each purchase or other acquisition made pursuant to this Section 7.02(i) (each, a “Permitted Acquisition”):

 

(i)                                     the property, assets and businesses acquired in such purchase or other acquisition shall, to the extent required hereunder and under the other Loan Documents, constitute Collateral and the applicable Loan Party, any such newly created or acquired Subsidiary and the Subsidiaries of such created or acquired Subsidiary (in each case, to the extent required under the Collateral and Guarantee Requirement) shall comply with the requirements of Section 6.12, within the times specified therein (for the avoidance of doubt, this clause (i) shall not override any provisions of the Collateral and Guarantee Requirement, subject to the limit in clause (ii) below);

 

(ii)                                  the aggregate amount of such Investments made by Loan Parties pursuant to this Section 7.02(i) in Persons that are not or do not become (or in assets that are not owned by) Loan Parties (or are not merged or amalgamated with Loan Parties immediately following such Investment) shall not exceed at any time outstanding since the First Amendment Effective Date the greater of (x) C$40,000,000 and (y) 1.2% of Consolidated Total Assets determined at the time of such Investment (calculated on a Pro Forma Basis); and

 

(iii)                               on the date on which the definitive agreement governing the relevant transaction is executed, immediately before and immediately after giving Pro Forma Effect to any such purchase or other acquisition (including any Indebtedness to be incurred in connection therewith), no Event of Default shall have occurred and be continuing.

 

(j)                                    other Investments in an amount not to exceed the Available Amount immediately prior to the time of the making of such Investment;

 

(k)                                 Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection or deposit (or similar provisions of Law) and Article 4 customary trade arrangements with customers consistent with past practices (or similar provisions of Law);

 

(l)                                     Investments (including debt obligations and Equity Interests) received (i) in connection with the bankruptcy workout, recapitalization or reorganization of suppliers and customers or in settlement of delinquent obligations of, or other disputes with or judgments against, customers and suppliers arising in the ordinary course of business, (ii) upon the foreclosure with respect to any secured Investment, (iii) as a result of the settlement, compromise or resolution of litigation, arbitration or other disputes or (iv) in settlement of debts created in the ordinary course of business;

 

(m)                             loans and advances to any direct or indirect parent of the Borrower in lieu of, and not in excess of the amount of (after giving effect to any other loans, advances or Restricted Payments in respect thereof), Restricted Payments to the extent permitted to be made to such direct or indirect parent in accordance with Section 7.06 (it being understood and agreed that each applicable provision of Section 7.06 shall be deemed utilized by the outstanding aggregate principal amount of such loans and advances made in reliance on this clause (m));

 

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(n)                                 other Investments since the First Amendment Effective Date that do not exceed in the aggregate the greater of (i) C$175,000,000 and (ii) 6.0% of Consolidated Total Assets determined at the time of such Investment (calculated on a Pro Forma Basis);

 

(o)                                 advances of payroll payments to directors, officers, employees, members of management and consultants in the ordinary course of business;

 

(p)                                 Investments to the extent that payment for such Investments is made solely with Qualified Equity Interests of the Borrower (or any direct or indirect parent thereof);

 

(q)                                 Investments held by a Restricted Subsidiary acquired after the Closing Date in accordance with this Section 7.02 (other than in reliance on this clause (q)) or of a Person merged into, amalgamated with or consolidated into the Borrower or a Restricted Subsidiary in accordance with Section 7.04 after the Closing Date to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;

 

(r)                                    Guarantees by the Borrower or any of the Restricted Subsidiaries (i) of leases (other than Capitalized Leases) or of other obligations that do not constitute Indebtedness, in each case entered into in the ordinary course of business and (ii) of Indebtedness to the extent such Guarantees are permitted under Section 7.03(c); provided that the aggregate amount of Guarantees by the Loan Parties in respect of Indebtedness of Non-Loan Parties pursuant to this clause (r) shall not at any time outstanding since the First Amendment Effective Date exceed the greater of (x) C$40,000,000 and (y) 1.2% of Consolidated Total Assets determined at the time of such Investment (calculated on a Pro Forma Basis);

 

(s)                                   Investments made by (i) any Restricted Subsidiary that is a Non-Loan Party to the extent such Investments are financed with the proceeds received by such Restricted Subsidiary from an Investment in such Restricted Subsidiary made pursuant to Section 7.02(i)(ii), Section 7.02(j), Section 7.02(n), Section 7.02(t), Section 7.02(u), and Section 7.2(ff) and (ii) any Loan Party in any Non-Loan Party consisting of contributions or other Dispositions of Equity Interests of Persons that are Non-Loan Parties;

 

(t)                                    Investments in the amount of any Excluded Contribution to the extent Not Otherwise Applied;

 

(u)                                 Investments by the Borrower or a Restricted Subsidiary in (i) Joint Ventures and (ii) Subsidiaries that are not Wholly Owned, in an aggregate amount, taken together with all other Investments made pursuant to this clause (u) since the First Amendment Effective Date, not to exceed the greater of C$60,000,000 and 2.0% of Consolidated Total Assets determined at the time of such Investment (calculated on a Pro Forma Basis);

 

(v)                                 the Caesar Acquisition;

 

(w)                               defined contribution pension scheme, unfunded pension fund and other employee benefit plan obligations and liabilities to the extent that they are permitted to remain unfunded under applicable Laws;

 

(x)                                 Investments in any Restricted Subsidiary in connection with reorganizations and related activities related to tax planning; provided that, after giving effect to any such reorganization and related activities, the security interest of the Collateral Agent in the Collateral, taken as a whole, is not 

 

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materially impaired and after giving effect to such Investment, the Borrower shall otherwise be in compliance with Section 6.12;

 

(y)                                 Investments consisting of the licensing or contribution of intellectual property or software pursuant to joint development, joint commercialization, joint marketing or other collaboration arrangements with other Persons;

 

(z)                                  Investments consisting of, or to finance purchases and acquisitions of, inventory, supplies, materials, services or equipment or purchases of contract rights or licenses or leases of intellectual property in the ordinary course of business;

 

(aa)                          Investments in any Subsidiary or any Joint Venture in connection with intercompany cash management arrangements or related activities arising in the ordinary course of business;

 

(bb)                          Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and workers compensation, performance and similar deposits entered into as a result of the operations of the business in the ordinary course of business;

 

(cc)                            [reserved];

 

(dd)                          the Original Transaction and Investments made to effect the Original Transaction;

 

(ee)                            the First Amendment Transactions and Investments made to effect the First Amendment Transactions; and

 

(ff)                              Investments in an unlimited amount so long as on the earlier of the date on which the Investment is made and the date on which the definitive agreement governing the relevant Investment containing a legally binding commitment to make such Investment is made, immediately after giving effect thereto and the incurrence of any Indebtedness to be incurred in connection therewith, the Borrower shall be in compliance with a Total Net Leverage Ratio of equal to or less than 5.50:1.00 (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination.

 

For purposes of determining compliance with this Section 7.02, (x) an Investment need not be made solely by reference to one category of Investments described in clauses (a) through (ff) above but may be made under any combination of such categories (including in part under one such category and in part under any other such category) and (y) in the event that an Investment (or any portion thereof) meets the criteria of one or more of such categories of Investments described in clauses (a) through (ff) above, the Borrower, in its sole discretion, may classify or may subsequently reclassify at any time such Investment (or any portion thereof) in any manner that complies with this covenant; provided that (a) all Investments made under Section 7.02(f) shall at all times be justified in reliance only on the exception in Section 7.02(f) and (b) all Investments made under Section 7.02(t) shall at all times be justified in reliance only on the exception in Section 7.02(t).

 

For the avoidance of doubt, if an Investment constituting a purchase or acquisition of the type described in Section 7.02(i) (for this purposes, disregarding the requirements set forth in clauses (i) through (v) of Section 7.02(i)) is also permitted by any other provision of this Section 7.02, such Investment need not satisfy the requirements applicable to Permitted Acquisitions under Section 7.02(i) unless such Investments are consummated in reliance on Section 7.02(i) and the requirements of clause

 

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(ii) of Section 7.02(i) may also be satisfied in reliance on any other applicable provision of this Section 7.02.

 

Any Investment that exceeds the limits of any particular clause set forth above may be allocated amongst more than one of such clauses to permit the incurrence or holding of such Investment to the extent such excess is permitted as an Investment under such other clauses.

 

Section 7.03                            Indebtedness.  Create, incur or assume any Indebtedness other than:

 

(a)                                 Indebtedness under the Loan Documents;

 

(b)                                 (i) Indebtedness existing on or pursuant to binding commitments existing on the First Amendment Effective Date set forth on Schedule 7.03(b) and any Permitted Refinancing thereof and (ii) intercompany Indebtedness outstanding on the date hereof (after giving effect to the First Amendment Transactions) and any Permitted Refinancing thereof; provided that all such Indebtedness of any Loan Party owed to any Non-Loan Party shall be subordinated on terms no less favorable to the Lenders (as determined by the Borrower) than the subordination terms set forth in an Intercompany Note;

 

(c)                                  Guarantees by the Borrower and the Restricted Subsidiaries in respect of Indebtedness or other obligations of the Borrower or any of the Restricted Subsidiaries otherwise permitted under this Agreement; provided that (A) no Guarantee by any Restricted Subsidiary of Indebtedness incurred pursuant to (1) any Junior Financing or (2) any Incremental Equivalent Debt or Refinancing Equivalent Debt (or, in the case of each of the preceding clauses (1) and (2), any Permitted Refinancing thereof) shall be permitted unless such Restricted Subsidiary shall have also provided a Guarantee of the Obligations substantially on the terms set forth in the Guaranty and (B) if the Indebtedness being Guaranteed is by its express terms subordinated to the Obligations, such Guarantee shall be subordinated to the Guaranty on terms, taken as a whole, at least as favorable to the Lenders, in all material respects, as those contained in the subordination provisions applicable to such Indebtedness;

 

(d)                                 Indebtedness of the Borrower or any of the Restricted Subsidiaries owing to the Borrower or any other Restricted Subsidiary to the extent constituting an Investment permitted by Section 7.02; provided that all such Indebtedness of any Loan Party owed to any Non-Loan Party shall be subject to an Intercompany Note;

 

(e)                                  (i) (x) Attributable Indebtedness relating to or arising out of any applicable transaction (including any sale-leaseback transaction) and (y) other Indebtedness (including Capitalized Leases) of the Borrower and the Restricted Subsidiaries financing the acquisition, lease, construction, design, repair, replacement or improvement of property (real or personal), equipment or other fixed or capital assets, so long as such Indebtedness is incurred substantially concurrently with, or no later than two hundred and seventy (270) days after, the applicable acquisition, lease, construction, repair, replacement or improvement (including any Assumed Indebtedness of the type described in this clause (i)); provided that the aggregate principal amount of such Indebtedness at any time outstanding pursuant to this clause (e) since the First Amendment Effective Date shall not exceed the greater of C$145,000,000 and 5.0% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis) and (ii) any Permitted Refinancing of any Indebtedness incurred under Section 7.03(e)(i);

 

(f)                                   Indebtedness in respect of Swap Contracts; provided that such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of (i) limiting interest rate risk with respect to any Indebtedness permitted to be incurred hereunder, (ii) fixing or hedging 

 

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currency exchange rate risk, or (iii) fixing or hedging commodity price risk with respect to any commodity purchases or sales, and not for purposes of speculation;

 

(g)                                  (i) Indebtedness (x) of any Person that becomes a Restricted Subsidiary after the date hereof, which Indebtedness is existing at the time such Person becomes a Restricted Subsidiary and is not incurred in contemplation of such Person becoming a Restricted Subsidiary, that is non-recourse to the Borrower or any Restricted Subsidiary ((A) other than any Subsidiary of such Person that is a Subsidiary on the date such Person becomes a Restricted Subsidiary and (B) excluding any guarantee by the Borrower or any Restricted Subsidiary otherwise permitted hereunder) and (y) of the Borrower or any Restricted Subsidiary assumed in connection with any Permitted Acquisition or other Investment not prohibited under this Agreement but not incurred in contemplation of such Permitted Acquisition or Investment (any such Indebtedness, “Assumed Indebtedness”) ; provided that, if after giving effect to all such Indebtedness, whether existing or assumed, the aggregate outstanding principal amount of existing Indebtedness of new Restricted Subsidiaries permitted under clause (g)(i)(x) (together with any Permitted Refinancing thereof incurred pursuant to clause (ii) below) plus the aggregate outstanding principal amount of Indebtedness assumed under clause (g)(i)(y) (together with any Permitted Refinancing thereof incurred pursuant to clause (ii) below) exceeds C$5,000,000 determined at the time of incurrence or assumption of such Indebtedness (calculated on a Pro Forma Basis), then after giving Pro Forma Effect to such existing Indebtedness or the assumption of such Indebtedness, in each case, (I) if such Indebtedness is secured by Liens on a pari passu basis with the Obligations, the Total Net First Lien Leverage Ratio is less than or equal to either (x) 4.25:1.00 or (y) the Total Net First Lien Leverage Ratio immediately prior to giving Pro Forma Effect to such existing Indebtedness or the assumption of such Indebtedness, (II) if such Indebtedness is secured by Liens, the Total Net Senior Secured Leverage Ratio is less than or equal to either (x) 5.50:1.00 or (y) the Total Net Senior Secured Leverage Ratio immediately prior to giving Pro Forma Effect to such existing Indebtedness or the assumption of such Indebtedness or (III) if such Indebtedness is unsecured, either (A) the Fixed Charge Coverage Ratio is greater than or equal to either (x) 2.00:1.00 or (y) the Fixed Charge Coverage Ratio immediately prior to giving Pro Forma Effect to such existing Indebtedness or the assumption of such Indebtedness or (B) the Total Net Leverage Ratio is less than or equal to either (x) 6.75:1.00 or (y) the Total Net Leverage Ratio immediately prior to giving Pro Forma Effect to such existing Indebtedness or the assumption of such Indebtedness, in each case under subclauses (I) through (III), as of the last day of the most recently ended Test Period on or prior to the date of determination (calculated on a Pro Forma Basis); and (ii) any Permitted Refinancing of any Indebtedness permitted under this Section 7.03(g); provided, further, that the aggregate principal amount of any such Indebtedness of Restricted Subsidiaries that are Non-Loan Parties pursuant to this clause (g) since the First Amendment Effective Date would not exceed the greater of (A) C$40,000,000 and (B) 1.2% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis);

 

(h)                                 (i) Refinancing Equivalent Debt and (ii) any Permitted Refinancing of the foregoing;

 

(i)                                     Indebtedness representing deferred compensation or similar arrangements to current, future or former officers, directors, employees, members of management or consultants of the Borrower (or any direct or indirect parent thereof) and the Restricted Subsidiaries;

 

(j)                                    Indebtedness to future, present or former officers, directors, employees, members of management and consultants, their respective estates, executors, administrators, heirs, family members, legatees, distributees, spouses, former spouses, domestic partners and former domestic partners of the Borrower (or any direct or indirect parent thereof) or any Restricted Subsidiary to finance the purchase or 

 

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redemption of Equity Interests of the Borrower (or any direct or indirect parent thereof) permitted by Section 7.06;

 

(k)                                 Indebtedness incurred by the Borrower or any of the Restricted Subsidiaries in any Permitted Acquisition, any other Investment not prohibited hereunder or any Disposition, in each case to the extent constituting obligations under noncompete agreements, consulting agreements, indemnification obligations or obligations in respect of purchase price (including earn-outs) or other similar deferred purchase price or arrangements or adjustments;

 

(l)                                     Indebtedness consisting of obligations of the Borrower and the Restricted Subsidiaries under incentive, non-compete, consulting or other similar arrangements (including as a result of the cancellation of vesting of options and other equity-based awards) with current, future or former officers, directors, employees, members of management and consultants incurred by such Person in connection with transactions consummated prior to the Closing Date, Permitted Acquisitions or any other Investment expressly permitted hereunder or not prohibited hereunder or Disposition of any business, assets or Subsidiary permitted hereunder;

 

(m)                             Indebtedness (i) 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; provided that such Indebtedness is extinguished within five (5) Business Days of its incurrence and (ii) consisting of Cash Management Obligations and other Indebtedness in respect of cash pooling arrangements, netting services, automatic clearinghouse arrangements, overdraft protections, employee credit card programs and other cash management and similar arrangements in the ordinary course of business and any Guarantees thereof;

 

(n)                                 Indebtedness of the Borrower and the Restricted Subsidiaries in an aggregate principal amount at any time outstanding under this clause (n) since the First Amendment Effective Date not to exceed the greater of C$240,000,000 and 60% of Consolidated EBITDA as of the last day of the most recently ended Test Period, in each case determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis) and, in the case of any Indebtedness incurred under this Section 7.03(n), any Permitted Refinancing in respect thereof;

 

(o)                                 Indebtedness consisting of (i) the financing of insurance premiums in an amount not to exceed, at any time outstanding since the First Amendment Effective Date, the greater of C$30,000,000 and 1.0% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis) or (ii) take-or-pay obligations contained in supply arrangements, in each case, in the ordinary course of business;

 

(p)                                 Indebtedness incurred by the Borrower or any of the Restricted Subsidiaries in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse receipts or similar instruments issued or created in the ordinary course of business or consistent with past practice, including in respect of workers compensation, unemployment insurance and other social security legislation, health, disability or other employee benefits or property, casualty or liability insurance or other insurance or self-insurance or other Indebtedness with respect to reimbursement-type obligations regarding workers compensation claims or supporting the type of obligations described in Section 7.01(e), (f), or (ff) (whether or not such obligations are secured by a Lien);

 

(q)                                 obligations (including in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse receipts or similar instruments) in respect of bids, tenders, trade contracts, governmental contracts and leases, statutory obligations, surety, stay, customs, bid, and appeal bonds, performance and return of money bonds, performance and completion guarantees, agreements with 

 

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utilities and other obligations of a like nature (including those to secure health, safety and environmental obligations);

 

(r)                                    Indebtedness consisting of (i) Incremental Equivalent Debt or Permitted Ratio Debt and (ii) any Permitted Refinancing thereof;

 

(s)                                   Indebtedness consisting of the Existing U.S. 2022 Notes, Existing U.S. 2023 Notes and Existing U.S. 2026 Notes and any Permitted Refinancing of the foregoing;

 

(t)                                    Indebtedness incurred by a Restricted Subsidiary that is not a Guarantor which, when aggregated with the principal amount of all other Indebtedness incurred pursuant to this clause (t) and then outstanding since the First Amendment Effective Date, does not exceed the greater of (i) C$45,000,000 and (ii) 1.5% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis);

 

(u)                                 additional Indebtedness of the Borrower and its Restricted Subsidiaries to fund a Permitted Acquisition or Investment in an aggregate principal amount since the First Amendment Effective Date not to exceed at any time outstanding the greater of C$130,000,000 and 4.0% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis); provided that no Event of Default shall be continuing at the time the relevant agreement with respect to such Permitted Acquisition or Investment is entered into;

 

(v)                                 Indebtedness of any Restricted Subsidiary supported by a letter of credit in a principal amount not in excess of the stated amount of such letter of credit;

 

(w)                               unsecured Indebtedness in respect of obligations of the Borrower or any Restricted Subsidiary to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services; provided that such obligations are incurred in connection with open accounts extended by suppliers on customary trade terms in the ordinary course of business and not in connection with the borrowing of money;

 

(x)                                 to the extent constituting Indebtedness, Guarantees, loans and advances in the ordinary course of business made to or of obligations of distributors, suppliers, customers, franchisees, franchisors, licensors and licensees of the Borrower and its Restricted Subsidiaries;

 

(y)                                 Indebtedness under the Revolving Credit Agreement and any Permitted Refinancing thereof;

 

(z)                                  Indebtedness among the Borrower and its Restricted Subsidiaries in connection with the Caesar Repo Transaction;

 

(aa)                          solely with respect to the Mortgages granted by the Loan Parties, guarantees arising under indemnity agreements to title insurers to cause such title insurer to issue to Collateral Agent mortgagee title insurance policies;

 

(bb)                          to the extent constituting Indebtedness, all premiums (if any), interest (including post-petition interest), fees, expenses, charges and additional or contingent interest on obligations described in clauses (a) through (aa) above; and

 

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(cc)                            unsecured Indebtedness of the Borrower or any Restricted Subsidiary that are daylight loans that are incurred and repaid in full on the same date.

 

For purposes of determining compliance with this Section 7.03, in the event that an item of Indebtedness (or any portion thereof) at any time, whether at the time of incurrence or upon the application of all or a portion of the proceeds thereof or subsequently, meets the criteria of more than one of the categories of Indebtedness described above in Sections 7.03(a) through (cc) (including, for the avoidance of doubt, any separate category of the definition of Available Incremental Amount), the Borrower, in its sole discretion, may classify or subsequently reclassify (or later divide, classify or reclassify) such item of Indebtedness (or any portion thereof) in any one or more of the types of Indebtedness described in Sections 7.03(a) through (cc) in any manner that complies with this covenant; provided that (a) all Indebtedness outstanding under the Loan Documents shall at all times be deemed to be outstanding in reliance only on the exception in Section 7.03(a), (b) all Indebtedness described on Schedule 7.03(b) and any Permitted Refinancing in respect thereof shall at all times be deemed to be outstanding in reliance only on the exception in Section 7.03(b)(i), (c) in no circumstances shall any Indebtedness owing to the Borrower or any of its Restricted Subsidiaries be classified under Section 7.03(g), (d) Refinancing Equivalent Debt and any Permitted Refinancing in respect thereof will at all times be deemed to be outstanding in reliance only on the exception in Section 7.03(h), (e) Incremental Equivalent Debt and any Permitted Refinancing in respect thereof shall at all times be deemed to be outstanding in reliance only on the exception in Section 7.03(r) and (f) no Indebtedness may be reclassified as having been incurred under clauses (g) or (h) above.

 

The accrual of interest, the accretion of accreted value, the payment of interest in the form of additional Indebtedness, the payment of dividends on Disqualified Equity Interests in the form of additional shares of Disqualified Equity Interests, accretion or amortization of OID or liquidation preference and increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies will not be deemed to be an incurrence of Indebtedness for purposes of this Section 7.03.  The principal amount of any non-interest bearing Indebtedness or other discount security constituting Indebtedness at any date shall be the accreted value thereof on such date.

 

Notwithstanding the above, if any Indebtedness is incurred as Permitted Refinancing Indebtedness originally incurred pursuant to this Section 7.03, and such Permitted Refinancing Indebtedness would cause any applicable Canadian Dollar-denominated, Consolidated Total Assets or financial ratio restriction contained in this Section 7.03 to be exceeded if calculated on the date of such Permitted Refinancing, such Canadian Dollar-denominated, Consolidated Total Assets or financial ratio restriction, as applicable, shall be deemed not to have been exceeded so long as the principal amount of such Permitted Refinancing Indebtedness is permitted to be incurred pursuant to the definition of “Permitted Refinancing.”

 

Section 7.04                            Fundamental Changes.  Merge, dissolve, liquidate, consolidate or amalgamate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that:

 

(a)                                 any Restricted Subsidiary may merge or consolidate with or into (i) the Borrower (including a merger, the purpose of which is to reorganize the Borrower into a new jurisdiction); provided that (x) the Borrower shall be the continuing or surviving Person or the continuing or surviving Person shall expressly assume the obligations of the Borrower under the Loan Documents and (y) such merger or consolidation does not result in the Borrower ceasing to be organized under the Laws of the United States, any state thereof or the District of Columbia or Canada or any province thereof or (ii) any one or more other Restricted Subsidiaries; provided that when any Non-Loan Party is merging with a Loan 

 

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Party, a Loan Party shall be the continuing or surviving Person or the continuing or surviving Person shall become a Loan Party or, to the extent constituting an Investment, such Investment must be permitted by Section 7.02 (other than Section 7.02(e));

 

(b)                                 (i) any merger the sole purpose of which is to reincorporate, reorganize or continue any Non-Loan Party in another jurisdiction, subject to compliance with the requirements of Section 6.12, (ii) any Restricted Subsidiary may liquidate, dissolve or wind-up or change its legal form if the Borrower determines in good faith that such action is in the best interests of the Borrower and the Restricted Subsidiaries and is not materially disadvantageous to the Lenders and (iii) the Borrower or any Restricted Subsidiary may merge, amalgamate or consolidate with any other Person in order to effect a Permitted Acquisition or other Investment permitted by Section 7.02; provided that the surviving entity shall be subject to the requirements of Section 6.12 (to the extent applicable); provided, further, that if any of the transactions contemplated in this clause (b) involve the Borrower, the provisions of Section 7.04(d) applicable to the Borrower shall be satisfied;

 

(c)                                  any Restricted Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation, dissolution, wind-up or otherwise) to the Borrower or another Restricted Subsidiary; provided that if the transferor in such a transaction is a Loan Party, then (i) the transferee must be a Loan Party or (ii) the Investment in such transferee as a result of such Disposition must be a permitted Investment in accordance with Section 7.02 (other than Section 7.02(e)) or such Disposition is permitted by Section 7.05 (other than Section 7.05(e));

 

(d)                                 so long as no Event of Default exists or would result therefrom, the Borrower may (i) merge, amalgamate or consolidate with or into any other Person; provided that (x) the Borrower shall be the continuing or surviving corporation or the continuing or surviving Person shall expressly assume the obligations of the Borrower under the Loan Documents in a manner reasonably acceptable to the Administrative Agent (including with respect to the satisfaction of customary PATRIOT Act requirements) and (y) such merger, amalgamation or consolidation does not result in the Borrower ceasing to be organized or existing under the Laws of the United States, any state thereof, the District of Columbia or any territory thereof, or Canada or any province thereof, or (ii) change its legal form if the Borrower determines that such action is in its best interests and makes such change in a manner reasonably acceptable to the Administrative Agent (including with respect to the continued perfection of Liens and satisfaction of customary PATRIOT Act requirements);

 

(e)                                  the First Amendment Transactions may be consummated;

 

(f)                                   any Restricted Subsidiary may merge, amalgamate or consolidate with any other Person in order to effect an Investment permitted pursuant to Section 7.02 (other than Section 7.02(e));

 

(g)                                  [reserved]; and

 

(h)                                 a merger, dissolution, liquidation, consolidation or Disposition, the purpose of which is to effect a Disposition permitted pursuant to Section 7.05 (other than Section 7.05(e)).

 

Section 7.05                            Dispositions.  Make any Disposition, except:

 

(a)                                 Dispositions of obsolete, damaged, worn out, used or surplus property, whether now owned or hereafter acquired, in the ordinary course of business and Dispositions of property no longer used or useful in the conduct of the business of the Borrower and the Restricted Subsidiaries;

 

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(b)                                 Dispositions of (i) inventory and (ii) equipment and goods held for sale in the ordinary course of business;

 

(c)                                  (i) any exchange or swap of assets, or lease, assignment or sublease of any real property or personal property for like property for use in a business not in contravention with Section 6.19 and (ii) Dispositions of property to the extent that (x) such property is exchanged for credit against the purchase price of similar replacement property or (y) the proceeds of such Disposition are promptly applied to the purchase price of such replacement property;

 

(d)                                 Dispositions of property among the Borrower and the Restricted Subsidiaries; provided that if the transferor of such property is a Loan Party (i) the transferee thereof must be a Loan Party, or if it is a newly incorporated entity, such transferee must become a Loan Party (or amalgamate with a Loan Party) within thirty (30) days of such Disposition, (ii) the Investment arising from such Disposition must be a permitted Investment in accordance with Section 7.02 (other than Section 7.02(e)) or (iii) the consideration paid in connection therewith shall be cash or Cash Equivalents paid contemporaneous with the consummation of the transaction and the aggregate fair market value (as determined in good faith by the Borrower) of the property sold, leased, licensed, transferred or otherwise disposed by Loan Parties to Non-Loan Parties in reliance of this clause (d)(iii) in any fiscal year shall not exceed C$10,000,000;

 

(e)                                  Dispositions permitted by Section 7.02 (other than Section 7.02(e)), Section 7.04 (other than Section 7.04(c) or (h)), Section 7.06 (other Section 7.06(d)) and Section 7.12 and Liens permitted by Section 7.01 (other than Section 7.01(m)(ii));

 

(f)                                   Dispositions with respect to property built or acquired by the Borrower or any Restricted Subsidiary after the Closing Date, including pursuant to sale-leaseback transactions; provided that, the Net Cash Proceeds thereof are applied in accordance with Section 2.05(b)(ii);

 

(g)                                  Dispositions of (i) Cash Equivalents and (ii) other current assets that were Cash Equivalents when the original Investment in such assets was made and which thereafter fail to satisfy the definition of Cash Equivalents;

 

(h)                                 leases, subleases, licenses or sublicenses (including non-exclusive licenses or non-exclusive sublicenses of IP Rights or software, including the provision of software under an open source license, but excluding licenses of IP Rights tantamount to a sale, material exclusive licenses of IP Rights and material exclusive sublicenses of IP Rights), in each case in the ordinary course of business and which do not materially interfere with the business of the Borrower and the Restricted Subsidiaries, taken as a whole;

 

(i)                                     Dispositions of property subject to Casualty Events;

 

(j)                                    Dispositions of property not otherwise permitted under this Section 7.05; provided that (i) at the time of such Disposition (other than any such Disposition made pursuant to a commitment entered into at a time when no Event of Default exists), no Event of Default shall exist or would result from such Disposition and (ii) with respect to any Disposition pursuant to this clause (j) for a purchase price in excess of C$15,000,000, the Borrower or any of the Restricted Subsidiaries shall receive not less than 75% of such consideration in the form of cash or Cash Equivalents (in each case, free and clear of all Liens, other than Liens permitted by Section 7.01); provided, however, that for the purposes of this clause (ii), (A) any liabilities (as shown on the Borrower’s or such Restricted Subsidiary’s most recent balance sheet or in the footnotes thereto) of the Borrower or such Restricted Subsidiary that (i) are assumed by the transferee with respect to the applicable Disposition, (ii) for which 

 

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the Borrower and all of the Restricted Subsidiaries shall have been validly released by all applicable creditors in writing or (iii) are otherwise cancelled or terminated in connection with the transaction with such transferee (other than intercompany debt owed to the Borrower or its Restricted Subsidiaries), (B) any securities, notes or other obligations or assets received by the Borrower or such Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received) within one hundred and eighty (180) days following the closing of the applicable Disposition and (C) any Designated Non-Cash Consideration received in respect of such Disposition having an aggregate fair market value as determined by the Borrower in good faith, taken together with all other Designated Non-Cash Consideration received pursuant to this clause (C) that is at that time outstanding since the First Amendment Effective Date, not in excess of the greater of (i) C$30,000,000 and (ii) 1.2% of Consolidated Total Assets determined at the time of incurrence of such Disposition (calculated on a Pro Forma Basis), 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;

 

(k)                                 Dispositions of Investments in Joint Ventures or any Subsidiary that is not Wholly Owned to the extent required by, or made pursuant to customary buy/sell arrangements between, the joint venture or similar parties set forth in joint venture arrangements and/or similar binding arrangements;

 

(l)                                     Dispositions of accounts receivable in connection with the collection, compromise or settlement thereof or in bankruptcy or similar proceedings;

 

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

 

(n)                                 to the extent allowable under Section 1031 of the Code (or comparable provision of Law of any foreign jurisdiction and, in each case, any successor provision), any exchange of like property for use in any business conducted by the Borrower or any of the Restricted Subsidiaries that is not in contravention of Section 6.19;

 

(o)                                 the unwinding of any Cash Management Obligations or Swap Contract;

 

(p)                                 sales or other dispositions by the Borrower or any Restricted Subsidiary of assets in connection with the closing or sale of an office, facility or other location in the ordinary course of business of the Borrower and the Restricted Subsidiaries, which consist of leasehold interests in the premises of such office, facility or other location, the equipment and fixtures located at such premises and the books and records relating exclusively and directly to the operations of such office, facility or other location; provided that as to each and all such sales and closings, (A) no Event of Default shall result therefrom and (B) such sale shall be on commercially reasonable prices and term in a bona fide arm’s length transaction;

 

(q)                                 the lapse or abandonment (including failure to maintain) in the ordinary course of business of any registrations or applications for registration of any (i) intellectual property rights that are not necessary or desirable in the conduct of the business of the Borrower or any Restricted Subsidiaries, or (ii) immaterial intellectual property rights that in the good faith determination of the Borrower are no longer economically practicable or commercially desirable to maintain or use in the business of the Borrower and the Restricted Subsidiaries (taken as a whole);

 

(r)                                    any Disposition (i) arising from foreclosure, casualty, condemnation, expropriation or any similar action or transfers by reason of eminent domain with respect to any property 

 

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or other asset of the Borrower or any of its Restricted Subsidiaries or (ii) by reason of the exercise of termination rights under any lease, sublease, license, sublicense, concession or other agreement;

 

(s)                                   any surrender or waiver of contractual rights or the settlement, release, recovery on or surrender of contractual rights or other claims of any kind;

 

(t)                                    the discount of accounts receivable or notes receivable in the ordinary course of business or the conversion of accounts receivable to notes receivable or Investments permitted under this Agreement, in each case in connection with the collection or compromise thereof;

 

(u)                                 any Disposition of assets of the Borrower or any Restricted Subsidiary or sale or issuance of Equity Interests of any Restricted Subsidiary, which assets or Equity Interests so Disposed have an aggregate fair market value (as determined in good faith by the Borrower) of less than C$10,000,000 in the aggregate for any fiscal year;

 

(v)                                 any grant in the ordinary course of business of (i) any non-exclusive license of patents, trademarks, software, know-how, copyrights, or any other intellectual property rights, including, but not limited to, grants of franchises or non-exclusive licenses, franchise or non-exclusive license master agreements and/or area development agreements, or (ii) any Permitted Exclusive License;

 

(w)                               Dispositions contemplated on the First Amendment Effective Date and set forth on Schedule 7.05(w);

 

(x)                                 Dispositions required to be made to comply with the order of any Governmental Authority or applicable Laws;

 

(y)                                 [reserved];

 

(z)                                  Dispositions of real property and related assets in the ordinary course of business in connection with relocation activities for directors, officers, members of management, employees or consultants;

 

(aa)                          [reserved];

 

(bb)                          de minimis amounts of equipment provided to employees;

 

(cc)                            the Borrower and any Restricted Subsidiary may (i) convert any intercompany Indebtedness to Equity Interests; (ii) settle, discount, write off, forgive or cancel any intercompany Indebtedness or other obligation owing by the Borrower or any Restricted Subsidiary and (iii) settle, discount, write off, forgive or cancel any Indebtedness owing by any present or former consultants, directors, officers or employees of the Borrower (or any direct or indirect parent thereof) or any Subsidiary or any of their successors or assigns; and

 

(dd)                          Dispositions in the nature of asset swaps conducted on an arms-length basis with bona fide third parties unaffiliated with a Borrower or any Affiliate of a Borrower; provided, that no such asset swap may be made at any time that a Specified Default has occurred and is continuing;

 

provided that any Disposition of any property pursuant to Section 7.05(b), (c), (d)(iii), (f), (i), (j) and (dd), shall be for no less than the fair market value of such property at the time of such Disposition as determined by the Borrower in good faith.  To the extent any Collateral is Disposed of as permitted by this Section 7.05 to any Person other than a Loan Party, such Collateral shall be sold free and clear of the 

 

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Liens created by the Loan Documents, and the Collateral Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing.

 

Section 7.06                            Restricted Payments.  Declare or make, directly or indirectly, any Restricted Payment, except:

 

(a)                                 each Restricted Subsidiary may make Restricted Payments to the Borrower and to the other Restricted Subsidiaries (and, in the case of a Restricted Payment by a non-Wholly Owned Restricted Subsidiary, to the Borrower and any other Restricted Subsidiaries and to each other owner of Equity Interests of such Restricted Subsidiary based on their relative ownership interests of the relevant class of Equity Interests);

 

(b)                                 the Borrower and each of the Restricted Subsidiaries may declare and make dividend payments or other distributions payable solely in the Equity Interests (other than Disqualified Equity Interests) of the Borrower;

 

(c)                                  so long as immediately after giving effect to such Restricted Payment, (i) for all Restricted Payments made pursuant to this Section 7.06(c) in excess of C$55,000,000 which are attributable to clause (b) of the Available Amount, the Fixed Charge Coverage Ratio (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination is greater than or equal to 2.00:1.00 and (ii) for all Restricted Payments made pursuant to this Section 7.06(c) no Specified Default shall have occurred and be continuing or would result therefrom, in each case the Borrower and the Restricted Subsidiaries may make Restricted Payments in an amount not to exceed the Available Amount immediately prior to the time of the making of such Restricted Payment;

 

(d)                                 to the extent constituting Restricted Payments, the Borrower and the Restricted Subsidiaries may enter into and consummate transactions expressly permitted by any provision of Section 7.02 (other than Section 7.02(e) and 7.02(m)), Section 7.03, Section 7.04, Section 7.05 (other than Section 7.05(e)) or Section 7.08 (other than Section 7.08(i) and 7.08(m)(ii));

 

(e)                                  redemptions, repurchases, retirements or other acquisitions of Equity Interests in the Borrower or any of the Restricted Subsidiaries deemed to occur upon exercise of stock options or warrants or similar rights if such Equity Interests represent a portion of the exercise price of such options or warrants or similar rights;

 

(f)                                   the Borrower and the Restricted Subsidiaries may pay (or make Restricted Payments to allow any direct or indirect parent thereof to pay, so long as in the case of any payment in respect of Equity Interests of any direct or indirect parent of the Borrower, the amount of such Restricted Payment is directly attributable to the Equity Interests of the Borrower owned directly or indirectly by such parent) for the repurchase, retirement or other acquisition or retirement for value of Equity Interests of the Borrower (or such direct or indirect parent thereof) held by any future, present or former officers, directors, employees, members of management and consultants (or their respective estates, executors, administrators, heirs, family members, legatees, distributees, spouses, former spouses, domestic partners and former domestic partners) of the Borrower (or any direct or indirect parent of the Borrower) or any of its Restricted Subsidiaries in connection with the death, disability, retirement or termination of employment or service of any such Person (or a breach of any non-compete or other restrictive covenant or confidentiality obligations of any such Person at any time after such Person’s disability, retirement or termination of employment or service) in an aggregate amount after the First Amendment Effective Date, together with the aggregate amount of loans and advances to the Borrower made pursuant to Section 7.02(m) in lieu of Restricted Payments permitted by this clause (f), not to exceed the greater of (w)

 

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C$35,000,000 and (x) 1.1% of Consolidated Total Assets (calculated on a Pro Forma Basis) in the aggregate in any calendar year (it being understood that any unused amounts in any calendar year may be carried over to the immediately succeeding three calendar years); provided that such amount in any calendar year may be increased by an amount not to exceed (y) the cash proceeds received by the Borrower or any of the Restricted Subsidiaries from the sale of Equity Interests (other than Disqualified Equity Interests, Excluded Contributions or amounts that increased the Available Amount) of the Borrower or any direct or indirect parent of the Borrower (to the extent contributed to the Borrower) to any future, present or former employee, officer, director, member of management or consultant (or the estates, executors, administrators, heirs, family members, legatees, distributees, spouse, former spouse, domestic partner or former domestic partner of any of the foregoing) of the Borrower or any of its Subsidiaries or any direct or indirect parent of the Borrower that occurs after the Closing Date, plus (z) the cash proceeds of key man life insurance policies received by the Borrower or the Restricted Subsidiaries after the Closing Date; provided, further, that (1) the Borrower may elect to apply all or any portion of the aggregate increase contemplated by clauses (y) and (z) above in any calendar year and (2) cancellation of Indebtedness owing to the Borrower or any Restricted Subsidiary from any future, present or former employee, officer, director, member of management or consultant (or the estates, executors, administrators, heirs, family members, legatees, distributees, spouse, former spouse, domestic partner or former domestic partner of any of the foregoing) of the Borrower or any direct or indirect parent thereof or any Subsidiary thereof in connection with a repurchase of Equity Interests of the Borrower or any direct or indirect parent thereof will not be deemed to constitute a Restricted Payment for purposes of this Section 7.06 or any other provision of this Agreement;

 

(g)                                  the Borrower and the Restricted Subsidiaries may make Restricted Payments to any direct or indirect parent of the Borrower:

 

(i)                                     the proceeds of which shall be used to pay (or make Restricted Payments to allow any direct or indirect parent thereof to pay) operating costs and expenses of such Persons incurred in the ordinary course of business and other corporate overhead costs and expenses (including administrative, legal, accounting and similar expenses provided by third parties), which are reasonable and customary and incurred in the ordinary course of business, attributable to the ownership or operations of the Borrower and its Restricted Subsidiaries;

 

(ii)                                  the proceeds of which shall be used to pay (or make Restricted Payments to allow any direct or indirect parent thereof to pay) franchise and similar Taxes, and other fees and expenses, required to maintain its (or any of such direct or indirect parent’s) corporate or legal existence;

 

(iii)                               to finance any Investment permitted to be made pursuant to Section  7.02; provided that (A) such Restricted Payment shall be made substantially concurrently with the closing of such Investment and (B) such Persons shall, promptly following the closing thereof, cause (1) all property acquired (whether assets or Equity Interests) to be contributed to the Borrower or a Restricted Subsidiary or (2) the merger, amalgamation, consolidation or sale of all or substantially all assets (to the extent permitted in Section 7.04) of the Person formed in order to consummate such Investment or acquired pursuant to such Investment, as applicable, into or to, as applicable, the Borrower or a Restricted Subsidiary, in each case, in accordance with the requirements of Section 6.12 and Section 7.02;

 

(iv)                              the proceeds of which shall be used to pay (or make Restricted Payments to allow any direct or indirect parent thereof to pay) fees and expenses related to any equity or debt offering permitted by this Agreement (whether or not successful);

 

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(v)                                 the proceeds of which (A) shall be used to pay customary salary, bonus, severance and other benefits payable to, and indemnities provided on behalf of, directors, officers, employees, members of management and consultants of such Persons and any payroll, social security or similar taxes in connection therewith to the extent such salaries, bonuses and other benefits are attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries or (B) shall be used to make payments permitted under Section 7.08(c)(i), (e), (g), (h), (j), (k), (l), (m), (n), (o), (p), (r), (t), (w) and (y) (but only to the extent such payments have not been and are not expected to be made by the Borrower or a Restricted Subsidiary);

 

(vi)                              the proceeds of which will be used to make payments due or expected to be due to cover social security, Medicare, employment insurance, statutory pension plan, withholding and other taxes payable and other remittances to Governmental Authorities in connection with any management equity plan or stock option plan or any other management or employee benefit plan or agreement of such Persons or to make any other payment that would, if made by the Borrower or any Restricted Subsidiary, be permitted under this Agreement;

 

(vii)                           the proceeds of which shall be used to pay cash, in lieu of issuing fractional shares, in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Equity Interests of such Persons; and

 

(viii)                        for any taxable period for which the Borrower and/or any of its Subsidiaries are members of a consolidated, combined or similar income Tax group for Tax purposes of which a direct or indirect parent of Borrower is the common parent (a “Tax Group”), the proceeds of which are necessary to permit the common parent of such Tax Group to pay the portion of any income Tax of such Tax Group for such taxable period that are attributable to the income of Borrower and/or its Subsidiaries; provided  that (A) the amount of such Restricted Payments for any taxable period shall not exceed that amount of such Taxes that Borrower and/or its Subsidiaries, as applicable, would have paid had Borrower and/or its applicable Subsidiaries, as applicable, been a stand-alone taxpayer (or a stand-alone group) for all applicable tax years and (B) the amount of such Restricted Payments in respect of an Unrestricted Subsidiary shall be permitted only to the extent that cash distributions were made by such Unrestricted Subsidiary to Borrower or any of its Restricted Subsidiaries for such purpose;

 

(h)                                 the Borrower or any of the Restricted Subsidiaries may pay cash (or make Restricted Payments to any direct or indirect parent the proceeds of which shall be used to enable it to pay cash) in lieu of fractional Equity Interests in connection with any dividend, split or combination thereof, any Permitted Acquisition or any exercise of warrants, options or other securities convertible into or exchangeable for Equity Interests;

 

(i)                                     redemptions, repurchases, retirements or other acquisitions of Equity Interests (i) deemed to occur on the exercise of options by the delivery of Equity Interests in satisfaction of the exercise price of such options or (ii) in consideration of withholding or similar taxes payable by any future, present or former officer, employee, director, member of management or consultant (or their respective estates, executors, administrators, heirs, family members, legatees, distributees, spouses, former spouses, domestic partners and former domestic partners), including deemed repurchases in connection with the exercise of stock options and any cash payment in respect of amounts described in the foregoing clause (ii);

 

(j)                                    in addition to the foregoing Restricted Payments and so long as no Event of Default shall have occurred and be continuing or would result therefrom, the Borrower and the Restricted Subsidiaries may make additional Restricted Payments in an aggregate amount since the First 

 

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Amendment Effective Date not to exceed the greater of (i) C$50,000,000 and (ii) 1.5% of Consolidated Total Assets determined at the time of incurrence of such Indebtedness (calculated on a Pro Forma Basis) plus additional unlimited amounts so long as immediately after giving effect to any such additional unlimited amounts of Restricted Payment, the Total Net Leverage Ratio (calculated on a Pro Forma Basis) as of the last day of the most recently ended Test Period on or prior to the date of determination is less than or equal to 5.00:1.00;

 

(k)                                 after a Qualifying IPO, the declaration and payment of dividends on the Borrower’s common stock (and the Borrower and its restricted Subsidiaries may pay dividends to any of its parents to permit such parent to pay such dividends), in the aggregate in any calendar year of up to the sum of (i) 6.00% of the Net Cash Proceeds received by or contributed to the Borrower or a Restricted Subsidiary in or from any such Qualifying IPO and (ii) 6.00% of the market capitalization of the Borrower at the time of such Qualifying IPO;

 

(l)                                     Restricted Payments that are made with Excluded Contributions to the extent Not Otherwise Applied;

 

(m)                             the distribution, by dividend or otherwise, of shares of capital stock of, or Indebtedness owed to the Borrower or a Restricted Subsidiary by, Unrestricted Subsidiaries (other than Unrestricted Subsidiaries, the primary assets of which are cash and Cash Equivalents);

 

(n)                                 Restricted Payments to satisfy appraisal or other dissenters’ rights, pursuant to or in connection with a consolidation, amalgamation, merger, transfer of assets or acquisition that complies with Section 7.02 or Section 7.04;

 

(o)                                 redemptions in whole or in part of any of its Equity Interests for another class of its Equity Interests or with proceeds from substantially concurrent equity contributions or issuances of new Equity Interests; provided that such new Equity Interests contain terms and provisions at least as advantageous to the Lenders in all respects material to their interests as those contained in the Equity Interests redeemed thereby; provided, further, that such amounts are not included in Excluded Contributions.

 

(p)                                 the Original Transaction and Restricted Payments made to effect the Original Transaction;

 

(q)                                 the making of any Restricted Payment within sixty (60) days after the date of declaration thereof, if at the date of such declaration such Restricted Payment would have complied with another provision of this Section 7.06; provided that the making of such Restricted Payment will reduce capacity for Restricted Payments pursuant to such other provision when so made; and

 

(r)                                    the First Amendment Transactions and Restricted Payments made to effect the First Amendment Transactions and pay fees and expenses related thereto (including Restricted Payments made (A) to holders of restricted stock or performance stock units as provided by the First Amendment Transaction Agreement and (B) in order to satisfy indemnity and other similar obligations under the First Amendment Transaction Agreement).

 

Section 7.07                            Changes in Fiscal Periods.  Make any change in fiscal year; provided, however, that the Borrower may, upon written notice to the Administrative Agent, change its fiscal year to any other fiscal year reasonably acceptable to the Administrative Agent, in which case, the Borrower 

 

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and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary to reflect such change in fiscal year.

 

Section 7.08                            Transactions with Affiliates.  Enter into any transaction of any kind with any Affiliate of the Borrower, whether or not in the ordinary course of business, involving aggregate consideration since the First Amendment Effective Date in excess of C$20,000,000, other than:

 

(a)                                 transactions between or among the Borrower and/or one or more of the Restricted Subsidiaries or any entity that becomes a Restricted Subsidiary as a result of such transaction;

 

(b)                                 transactions on terms substantially as favorable to the Borrower or such Restricted Subsidiary as would be obtainable by the Borrower or such Restricted Subsidiary at the time in a comparable arm’s-length transaction with a Person other than an Affiliate;

 

(c)                                  (i) the Original Transaction and the payment of fees and expenses (including the Original Transaction Expenses) related to the Original Transaction and (ii) the existence of, or the performance by the Borrower or any Restricted Subsidiary of its obligations under the terms of, any stockholders (or similar) agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party as of the Closing Date, and any transaction, agreement or arrangement described in this Agreement and, in each case, any amendment thereto or similar transactions, agreements or arrangements which it may enter into thereafter; provided, however, that the existence of, or the performance by the Borrower or any Restricted Subsidiary of its obligations under, any future amendment to any such existing transaction, agreement or arrangement or under any similar transaction, agreement or arrangement entered into after the Closing Date shall only be permitted by this clause (ii) to the extent that the terms of any such amended existing transaction, agreement or arrangement, taken as a whole, or new transaction, agreement or arrangement are not otherwise more disadvantageous to the Lenders in any material respect (as determined in good faith by the Borrower) than the original transaction, agreement or arrangement as in effect on the Closing Date;

 

(d)                                 (i) the First Amendment Transactions and the payment of fees and expenses (including the First Amendment Transaction Expenses) related to the First Amendment Transactions and (ii) the existence of, or the performance by the Borrower or any Restricted Subsidiary of its obligations under the terms of, any stockholders (or similar) agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party as of First Amendment Effective Date, and any transaction, agreement or arrangement described in this Agreement and, in each case, any amendment thereto or similar transactions, agreements or arrangements which it may enter into thereafter; provided, however, that the existence of, or the performance by the Borrower or any Restricted Subsidiary of its obligations under, any future amendment to any such existing transaction, agreement or arrangement or under any similar transaction, agreement or arrangement entered into after the First Amendment Effective Date shall only be permitted by this clause (ii) to the extent that the terms of any such amended existing transaction, agreement or arrangement, taken as a whole, or new transaction, agreement or arrangement are not otherwise more disadvantageous to the Lenders in any material respect (as determined in good faith by the Borrower) than the original transaction, agreement or arrangement as in effect on the First Amendment Effective Date;

 

(e)                                  employment and severance arrangements between the Borrower and the Restricted Subsidiaries and their respective directors, officers, employees, members of management or consultants in the ordinary course of business and transactions pursuant to housing loan programs, stock option or purchase plans and employee benefit plans and similar arrangements;

 

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(f)                                   non-exclusive licensing of patents, trademarks, software, know-how, copyrights or other IP Rights or Permitted Exclusive Licenses  in the ordinary course of business to permit the commercial exploitation of IP Rights;

 

(g)                                  the payment of customary fees and reasonable out-of-pocket costs to, and indemnities provided on behalf of, future, present or former directors, officers, employees, members of management and consultants of the Borrower and the Restricted Subsidiaries or any direct or indirect parent of the Borrower in the ordinary course of business to the extent attributable to the ownership or operation of the Borrower and the Restricted Subsidiaries;

 

(h)                                 any agreement, instrument or arrangement as in effect as of the First Amendment Effective Date and set forth on Schedule 7.08, or any amendment thereto (so long as any such amendment, taken as a whole, is not more disadvantageous to the Lenders in any material respect (as determined in good faith by the Borrower) as compared to the applicable agreement as in effect on the Closing Date);

 

(i)                                     Restricted Payments permitted under Section 7.06;

 

(j)                                    payments by the Borrower and any of the Restricted Subsidiaries (including related indemnities and expense reimbursements) made for any transaction or financial advisory, consulting, financing, underwriting or placement services or in respect of other investment banking activities (including in connection with financings, acquisitions or divestitures), which payments are approved by a majority of the disinterested members of the board of directors (or comparable governing body or managers) of the Borrower in good faith (which, for the avoidance of doubt, may include payments to one or more of the Equity Sponsor);

 

(k)                                 transactions in which the Borrower or any of the Restricted Subsidiaries, as the case may be, delivers to the Administrative Agent a letter from an Independent Financial Advisor stating that such transaction is fair to the Borrower or such Restricted Subsidiary from a financial point of view or meets the requirements of clause (b) of this Section 7.08;

 

(l)                                     the issuance or transfer of Equity Interests (other than Disqualified Equity Interests) of the Borrower or any of its Subsidiaries to any Permitted Holder or to any former, current or future director, officer, employee, member of management or consultant (or their respective estates, executors, administrators, heirs, family members, legatees, distributees, spouses, former spouses, domestic partners and former domestic partners) of the Borrower, or any Subsidiary or any direct or indirect parent of any of the foregoing thereof to the extent otherwise permitted by this Agreement and to the extent such issuance or transfer would not give rise to a Change of Control;

 

(m)                             (i) investments by the Permitted Holders in securities of any of the Restricted Subsidiaries (and payment of reasonable out-of-pocket expenses incurred by the Permitted Holders in connection therewith) so long as the investment is being offered generally to other investors on the same or more favorable terms and (ii) to the extent permitted under Section 7.06, payments to the Permitted Holders in respect of securities or loans of the any Restricted Subsidiaries contemplated in the foregoing subclause (i) or that were acquired from Persons other than the Borrower and its Restricted Subsidiaries, in each case, in accordance with the terms of such securities or loans;

 

(n)                                 payments to or from, and transactions with, Joint Ventures (to the extent any such Joint Venture is only an Affiliate as a result of Investments by the Borrower and the Restricted 

 

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Subsidiaries in such Joint Venture) or non-Wholly Owned Subsidiaries that are Restricted Subsidiaries in the ordinary course of business, in each case to the extent otherwise permitted under Section 7.02;

 

(o)                                 the payment of reasonable out-of-pocket costs and expenses relating to registration rights and indemnities provided to equity holders of the Borrower or any direct or indirect parent thereof;

 

(p)                                 payments or loans (or cancellation of loans) or advances to employees, officers, directors, members of management or consultants (or the estates, executors, administrators, heirs, family members, legatees, distributees, spouse, former spouse, domestic partner or former domestic partner or any of the foregoing) of the Borrower or any of its Restricted Subsidiaries or any direct or indirect parent companies of the Borrower and employment agreements, consulting arrangements, severance arrangements, stock option plans and other similar arrangements with such employees, officers, directors, members of management or consultants (or the estates, executors, administrators, heirs, family members, legatees, distributees, spouse, former spouse, domestic partner or former domestic partner of any of the foregoing);

 

(q)                                 transactions with customers, clients, suppliers or purchasers or sellers of goods or services, or transactions otherwise relating to the purchase or sale of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of this Agreement, which are fair to the Borrower and its Restricted Subsidiaries, in the good faith determination of the board of directors or comparable governing body or managers or senior management of the Borrower or any of its Restricted Subsidiaries, or are in terms at least as favorable as might reasonably have been obtained at such time from an unaffiliated party;

 

(r)                                    the entering into of any tax sharing agreement or arrangement to the extent payments under such agreement or arrangement would otherwise be permitted under Section 7.06(g)(viii);

 

(s)                                   any contribution to the capital of the Borrower or any of its Restricted Subsidiaries;

 

(t)                                    transactions permitted under Section 7.04 and/or Section 7.05 solely for the purpose of reincorporating the Borrower in a new jurisdiction;

 

(u)                                 transactions between the Borrower or any Restricted Subsidiary and any Person, a director of which is also a director of the Borrower or any Restricted Subsidiary or any direct or indirect parent of the Borrower; provided, however, that such director abstains from voting as a director of the Borrower or any Restricted Subsidiary or such direct or indirect parent, as the case may be, on any matter involving such other Person;

 

(v)                                 the formation and maintenance of any consolidated, combined or unitary group or subgroup for tax (subject to the limitation in Section 7.06(g)(viii)), accounting or cash pooling or management purposes in the ordinary course of business;

 

(w)                               the issuance of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements, stock option and stock ownership plans or similar employee benefit plans approved by the board of directors (or any equivalent body) of the Borrower or any Restricted Subsidiary or any direct or indirect parent of the Borrower, as appropriate, in good faith;

 

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(x)                                 [reserved]; and

 

(y)                                 transactions undertaken in good faith (as certified by a Responsible Officer of the Borrower) for the purpose of improving the consolidated tax efficiency of the Borrower or any of its Restricted Subsidiaries and not for the purpose of circumventing any covenant set forth in this Agreement and which are not materially adverse to the Lenders.

 

Section 7.09                            Burdensome Agreements.  Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability of (a) any Non-Loan Party to make Restricted Payments to (directly or indirectly) or to make or repay loans or advances to any Loan Party or (b) any Loan Party to create, incur, assume or suffer to exist Liens on property of such Person for the benefit of the Lenders with respect to any Facility and the Obligations under the Loan Documents; provided that the foregoing clauses (a) and (b) shall not apply to Contractual Obligations that:

 

(a)                                 (x) exist on the date hereof and (y) to the extent set forth in an agreement governing or evidencing Indebtedness, are set forth in any agreement evidencing any permitted modification, replacement, renewal, extension or refinancing of such Indebtedness so long as such modification, replacement, renewal, extension or refinancing does not materially expand the scope of such Contractual Obligation;

 

(b)                                 are binding on a Restricted Subsidiary at the time such Restricted Subsidiary becomes or is designated as a Restricted Subsidiary, so long as such Contractual Obligations were not entered into in contemplation of such Person becoming a Restricted Subsidiary;

 

(c)                                  are imposed by agreements governing or evidencing Indebtedness of a Non-Loan Party that is permitted by Section 7.03;

 

(d)                                 are required, by or pursuant to, applicable Laws and/or imposed by a Governmental Authority or pursuant to any enforcement action by any Governmental Authority;

 

(e)                                  are customary restrictions that arise in connection with (x) any Lien permitted by Sections 7.01(a), (i), (j), (l), (m), (o), (r), (t), (u), (x), (y), (z), (aa), (bb), (dd), (ee), (ff), (gg), (hh), (ii), (jj), (mm), or (nn) or any document in connection therewith; provided that such restriction relates only to the property subject to such Lien or (y) any Disposition permitted by Section 7.05 applicable pending such Disposition solely to the assets subject to such Disposition;

 

(f)                                   are customary provisions in joint venture agreements and other similar agreements applicable to Joint Ventures and non-Wholly Owned Subsidiaries permitted under Section 7.02 and applicable solely to such Person entered into in the ordinary course of business;

 

(g)                                  are negative pledges and restrictions on Liens in favor of any holder of Indebtedness permitted under Section 7.03 but solely to the extent any negative pledge relates to the specific property financed by or the subject of such Indebtedness and the proceeds and products thereof;

 

(h)                                 are customary restrictions on leases, subleases, licenses, sublicenses, Equity Interests, or asset sale agreements and other similar agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto;

 

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(i)                                     comprise restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to Sections 7.03(b), (c), (e), (g), (h), (k), (m), (n), (o)(i), (p), (q), (r), (s), (t), (u) or (y);

 

(j)                                    are customary provisions restricting subletting or assignment of any lease governing a leasehold interest of any Restricted Subsidiary;

 

(k)                                 are customary provisions restricting assignment of any agreement entered into in the ordinary course of business;

 

(l)                                     are restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business;

 

(m)                             are customary restrictions in any documentation governing any Incremental Equivalent Debt or any Refinancing Equivalent Debt;

 

(n)                                 arise in connection with cash or other deposits permitted under Section 7.01;

 

(o)                                 comprise restrictions imposed by any agreement governing Indebtedness entered into after the Closing Date and permitted under Section 7.03 that are, at the time such agreement is entered into, taken as a whole, in the good faith judgment of the Borrower, not materially more restrictive with respect to the Borrower or any Restricted Subsidiary than (x) customary market terms for Indebtedness of such type or (y) the restrictions contained in this Agreement, so long as the Borrower shall have determined in good faith that such restrictions will not affect its obligation or ability of the Loan Parties to make any payments or grant any Liens required hereunder;

 

(p)                                 apply by reason of any applicable Laws or are required by any Governmental Authority having jurisdiction over the Borrower’s or any Restricted Subsidiary’s status (or the status of any Subsidiary of such Restricted Subsidiary) as a Captive Insurance Subsidiary;

 

(q)                                 are contracts or agreements for the sale or Disposition of assets, including any restriction with respect to a Subsidiary imposed pursuant to an agreement entered into for the sale or Disposition of the Equity Interests or assets of such Subsidiary;

 

(r)                                    comprise restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business; or

 

(s)                                   any encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (a) through (r) above; provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are (x) permitted hereunder or under any other Loan Document, (y) on customary market terms for contracts, obligations or instruments of such type or (z) in the good faith judgment of the Borrower, no more restrictive in any material respect with respect to such restrictions than those contained in such contracts, instruments or obligations prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

 

Section 7.10                            Negative Pledge.  Unless otherwise agreed to by the Administrative Agent, 1994439 Alberta ULC will not create or incur any Lien on any preferred stock issued by GFL Holdco (US), LLC, whether now owned or hereafter acquired, or upon any income or profits therefrom, in order to secure any of the Borrower’s Indebtedness or that of any of its Subsidiaries.

 

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Section 7.11                            [Reserved].

 

Section 7.12                            Prepayments, Etc. of Indebtedness; Certain Amendments.  (a)  Prepay or redeem, purchase, defease, retire, extinguish or otherwise satisfy prior to the scheduled maturity thereof in any manner (it being understood that payments of regularly scheduled principal, interest, mandatory prepayments, mandatory redemptions and offers to purchase, fees, expenses and indemnification obligations and any AHYDO Catch-Up Payments shall be permitted) any Indebtedness of the Borrower or any Subsidiary Guarantor of the type described in clause (a) of the definition of “Indebtedness” (other than Indebtedness designated by the Borrower with an aggregate principal amount not to exceed C$40,000,000 for all Indebtedness so designated since the First Amendment Effective Date) that is contractually subordinated in right of payment to the Obligations or secured by Liens that are contractually subordinated to the Liens securing the Obligations, in each case, expressly by its terms (other than Indebtedness between or among the Borrower or any of its Subsidiaries) (collectively, “Junior Financing”), except (i) the refinancing or replacement thereof with the Net Cash Proceeds of, or in exchange for, any Indebtedness constituting a Permitted Refinancing thereof, (ii) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of any Junior Financing in exchange for, or out of the proceeds of, the substantially concurrent sale of, Equity Interests of the Borrower (or any direct or indirect parent of the Borrower) or contributions to the equity capital of the Borrower (in each case other than any Disqualified Equity Interests, Excluded Contributions, or amounts that increased the Available Amount), (iii) the prepayment of Indebtedness of the Borrower or any Restricted Subsidiary owed to the Borrower or a Restricted Subsidiary and not in violation of any applicable subordination terms or the prepayment of any other Junior Financing with the proceeds of any Permitted Refinancing otherwise permitted by Section 7.03, (iv) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of Junior Financing in an aggregate amount since the First Amendment Effective Date, not to exceed, C$20,000,000, (v) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of Junior Financing in an amount not to exceed the Available Amount immediately prior to the time of the making of such prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition, (vi) [reserved], (vii) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of Junior Financing prior to their scheduled maturity that are made with Excluded Contributions to the extent Not Otherwise Applied, (viii) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of Junior Financing within 60 days of the date of a redemption notice if, at the date of any prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition notice in respect thereof, such prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition would have complied with another provision of this Section 7.12; provided that such prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition under this Section 7.12(a)(viii) shall reduce capacity under such other provision, and (ix) the prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition of Junior Financing; provided that the Total Net Leverage Ratio (calculated on a Pro Forma Basis) as of the most recently ended Test Period on or prior to the date of such prepayment, redemption, repurchase, defeasance, exchange, acquisition or retirement or other acquisition is less than or equal to 5.00:1.00, or (b) make any payment in violation of any subordination terms of any Junior Financing that is subordinated in right of payment to the Obligations expressly by its terms.

 

(b)                                 Amend, modify or change in any manner that would be materially adverse to the interests of the Lenders, any term or condition of any Junior Financing Documentation in respect of any Junior Financing (other than as a result of the refinancing or replacement thereof with the Net Cash Proceeds of, or in exchange for, any Indebtedness constituting a Permitted Refinancing or any other Junior Financing otherwise permitted by Section 7.03 thereof).

 

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(c)                                  Amend, modify or change its certificate or articles of incorporation or amalgamation (including, without limitation, 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, in each case, in any manner materially adverse to the interests of the Lenders.

 

ARTICLE VIII

 

Events of Default and Remedies

 

Section 8.01                            Events of Default.  Each of the events referred to in clauses (a) through (k) of this Section 8.01 shall constitute an “Event of Default”:

 

(a)                                 Non-Payment.  The Borrower fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan, or (ii) within three (3) Business Days after the same becomes due, any interest on any Loan or fees payable hereunder, or (iii) within three (3) Business Days after notice from the Administrative Agent, or other amounts payable hereunder; or

 

(b)                                 Specific Covenants.  The Borrower or any Restricted Subsidiary fails to perform or observe any term, covenant or agreement contained in any of Section 6.03(a) or Section 6.05(a) (solely with respect to the Borrower) or Article VII; provided that any Default or Event of Default pursuant to this clause (i) due to failure to provide notice of Default pursuant to Section 6.03(a) shall be automatically cured upon provision of the applicable notice and/or cure of the underlying Default or Event of Default; or

 

(c)                                  Other Defaults.  Any Loan Party fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for thirty (30) days after the receipt by the Borrower of written notice thereof from the Administrative Agent; provided that any Event of Default under this clause (c) due to inclusion of any “going concern” statement in an audit opinion delivered pursuant to Section 6.01(a) solely due to a prospective or actual financial covenant default shall not constitute an Event of Default for purposes of any Term Loan or Term Commitments unless and until the applicable Indebtedness containing such financial covenant is actually declared to be immediately due and payable as a result of the such default and such declaration has not been rescinded prior to such date; or

 

(d)                                 Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by any Loan Party herein, in any other Loan Document, or in any document required to be delivered in connection herewith or therewith shall be incorrect in any material respect when made or deemed made and such incorrect representation or warranty (if curable) shall remain incorrect for a period of 30 days after notice thereof from the Administrative Agent to the Borrower; or

 

(e)                                  Cross-Default.  Any Loan Party or any Restricted Subsidiary (A) fails to make any payment beyond the applicable grace period, if any, whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise, in respect of any Indebtedness (other than Indebtedness hereunder or under any other Loan Document) having an aggregate outstanding principal amount (individually or in the aggregate with all other Indebtedness as to which such a failure shall exist) of not less than the Threshold Amount or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness, or any other event occurs (other than, with respect to Indebtedness consisting of Swap Contracts, termination events or equivalent events pursuant to the terms of such Swap

 

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Contracts and not as a result of any default thereunder by any Loan Party), the effect of which default or other event 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 or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided that this clause (e)(B) shall not apply to Indebtedness that becomes subject to a mandatory prepayment or mandatory offer to purchase or redeem as a result of (x) the voluntary sale or transfer of property or assets, if such sale or transfer is permitted hereunder or (y) any casualty or condemnation event, in each case in an amount not to exceed the net cash proceeds attributable to such sale, transfer or casualty or condemnation event (as applicable); provided, further, that such failure is unremedied and is not waived by the holders of such Indebtedness prior to any termination of the Commitments, acceleration of the Loans or the exercise of other remedies pursuant to Section 8.02; provided, further, that no Event of Default with respect to this clause (e) shall result in respect of the Revolving Credit Agreement unless and until the holder or holders of the Revolving Credit Agreement (or the Revolving Agent on behalf of such holder or holders or beneficiary or beneficiaries) cause, with the giving of notice if required, such Indebtedness in respect of the Revolving Credit Agreement to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; or

 

(f)                                   Insolvency Proceedings, Etc.  The Borrower or any Material Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, receiver or manager, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer for it or for all or any material part of its property; or any receiver, receiver or manager, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding; or

 

(g)                                  Judgments.  There is entered against the Borrower or any Restricted Subsidiary a final judgment or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not covered by self-insurance (if applicable) or independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied in writing coverage thereof) and such judgment or order shall not have been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of sixty (60) consecutive days; or

 

(h)                                 ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or would reasonably be expected to result in liability of the Borrower or any Guarantor in an aggregate amount which would reasonably be expected to result in a Material Adverse Effect or, (ii) with respect to a Foreign Plan, a termination, withdrawal or noncompliance with applicable Laws or plan terms that would reasonably be expected to result in a Material Adverse Effect; or

 

(i)                                     Invalidity of Material Guaranties.  Any Guaranty of any Guarantor, at any time after its execution and delivery and for any reason ceases to be in full force and effect, other than (x) as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under Section 7.04 or 7.05 or the Collateral and Guarantee Requirement), (y) as a result of acts or omissions by the Administrative Agent, Collateral Agent or any Lender, in each case, which does not arise from the breach by any Loan Party of its obligations under the Loan Documents or (z) as a result of the satisfaction 

 

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in full of all the Obligations; or any Guarantor contests in writing the validity or enforceability of its Guaranty or denies in writing that it has any or further liability or obligation under its Guaranty (other than as a result of repayment in full of the Obligations and termination of the Aggregate Commitments or as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under Section 7.04 or 7.05 or the Collateral and Guarantee Requirement)), or purports in writing to revoke or rescind its Guaranty; or

 

(j)                                    Collateral Documents.  Any Collateral Document after delivery thereof pursuant to Section 4.01, 6.12 or 6.14, shall for any reason (other than pursuant to the terms hereof or thereof including as a result of a transaction permitted under Section 7.04 or 7.05) cease to create, or any Lien purported to be created by such Collateral Document shall be asserted in writing by the Borrower or any other Loan Party not to be, a valid and, to the extent applicable under applicable Law, perfected Lien on a material portion of the Collateral, with the priority required by the Collateral Documents (or other security purported to be created on the applicable Collateral), on and security interest in any material portion of the Collateral purported to be covered thereby, subject to Liens permitted under Section 7.01, except to the extent that (i) any such perfection or priority is not required pursuant to the Collateral and Guarantee Requirement, (ii) any such loss of perfection or priority results from the failure of the Collateral Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Collateral Documents or to file Uniform Commercial Code continuation or PPSA renewal statements, (iii) as to Collateral consisting of real property, such losses are covered by a lender’s title insurance policy and such insurer has not denied coverage in writing; or (iv) such loss of a valid or perfected security interest, as applicable, may be remedied by the filing or registration of appropriate documentation without the loss of priority (unless such loss of a valid or perfected security interest remains unremedied thirty (30) days after the Borrower obtaining actual knowledge thereof); or

 

(k)                                 Change of Control.  There occurs any Change of Control.

 

Section 8.02                            Remedies upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent may with the consent of, and shall at the request of, the Required Lenders take any or all of the following actions:

 

(a)                                 declare the commitment of each Lender to make Loans to be terminated, whereupon such commitments and obligation shall be terminated;

 

(b)                                 declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts outstanding or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; and

 

(c)                                  exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents,

 

provided that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, and the commitments of each Lender to make Loans shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, in each case without further act of the Administrative Agent or any Lender.

 

Section 8.03                            Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable as set forth in 

 

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the proviso to Section 8.02), subject to any Intercreditor Agreement, any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

 

First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal and interest, but including Attorney Costs payable under Section 10.04 and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including Attorney Costs payable under Section 10.04 and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, together with all Obligations in the nature of accrued but unpaid periodic fees and interest under any Secured Hedge Agreements and Secured Cash Management Agreements, ratably among the Secured Parties in proportion to the respective amounts described in this clause Third payable to them;

 

Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, the Obligations under Secured Hedge Agreements (to the extent constituting breakage, termination and other payments not otherwise paid pursuant to clause Third above) and Obligations under Secured Cash Management Agreements, ratably among the Secured Parties in proportion to the respective amounts described in this clause Fourth held by them;

 

Fifth, [reserved];

 

Sixth, to the payment of all other Obligations of the Loan Parties that are due and payable to the Administrative Agent and the other Secured Parties on such date, ratably based upon the respective aggregate amounts of all such Obligations owing to the Administrative Agent and the other Secured Parties on such date; and

 

Last, the balance, if any, after all of the Obligations have been paid in full, to the Borrower or as otherwise required by Law.

 

Notwithstanding the foregoing, no amount received from any Guarantor shall be applied to any Excluded Swap Obligation of such Guarantor but subsequent distributions shall be adjusted so that the aggregate distributions are in accordance with the foregoing to the extent permitted by Law.

 

Section 8.04                            [Reserved].

 

Section 8.05                            Clean Up Period.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, during the period commencing on the closing date of any Permitted Acquisition or Investment and ending on the date 30 days thereafter (the “Clean Up Period”) (a) any breach or default of any representation or warranty under Article V or any other Loan Document or a covenant under this Agreement or any other Loan Document or (b) any Event of Default, will be deemed not to be a breach of representation or warranty or covenant or an Event of Default (as the case may be) if (i) it would have been (if it were not for this Section 8.05) a breach or default of any representation or warranty or covenant or an Event of Default only by reason of circumstances relating exclusively to the target, the target group or the property and assets of another Person or assets constituting a business unit, line of business or division of such Person in connection with such Permitted Acquisition or Investment (or any obligation to procure or ensure in relation to such target, target group or the property and assets or business unit, line of business or division); (ii) it is capable of remedy and 

 

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reasonable steps are being taken to remedy it; (iii) the circumstances giving rise to it have not been procured by or approved by the Borrower; and (iv) it would not reasonably be expected to have a Material Adverse Effect.  If the relevant circumstances are continuing on or after the date immediately following the end of the Clean Up Period, there shall be a breach of representation or warranty, breach of covenant or Event of Default, as the case may be, notwithstanding the above (and without prejudice to the rights and remedies of the Lenders as set forth in Section 8.02 hereof).

 

ARTICLE IX

 

Administrative Agent and Other Agents

 

Section 9.01                            Appointment and Authority of the Administrative Agent.

 

(a)                                 Each Lender hereby irrevocably appoints Citi, as of the Amendment Effective Date, to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article IX, other than in respect of Section 9.09, Section 9.11 and Section 9.14, are solely for the benefit of the Administrative Agent and the Lenders, and the Loan Parties shall not have rights as a third party beneficiary of any such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Laws.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

 

(b)                                 [reserved].

 

(c)                                  Barclays shall act as the “collateral agent” under the Loan Documents, and each of the Lenders (including in its capacities as a Lender and a potential Hedge Bank and/or Cash Management Bank) hereby irrevocably appoints and authorizes the Collateral Agent to act as the agent of (and to hold any security interest created by the Collateral Documents for and on behalf of or in trust for) the Secured Parties for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto.  In this connection, the Collateral Agent, as “collateral agent” (and any co-agents, sub-agents and attorneys-in-fact appointed by the Collateral Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Collateral Agent), shall be entitled to the benefits of all provisions of this Article IX and Article X (including Section 9.07, as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.  Without limiting the generality of the foregoing, each of the Lenders (including in its capacities as a Lender and a potential Hedge Bank and/or Cash Management Bank) hereby expressly authorizes the Collateral Agent to execute any and all documents (including releases) with respect to the Collateral and the rights of the Secured Parties with respect thereto (including any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement and/or any other intercreditor agreements entered into in connection herewith, and security trust documents), as contemplated by, in accordance with or otherwise in connection with the provisions of this Agreement and the Collateral Documents and acknowledge and agree that any such action by any Agent shall bind the Lenders.

 

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Section 9.02                            Rights as a Lender.  Any Person serving as an Agent (including as Administrative Agent and Collateral Agent) hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include each Person serving as an Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not an Agent hereunder and without any duty to provide notice or account therefor to the Lenders.  The Lenders acknowledge that, pursuant to such activities, any Agent or its Affiliates may receive information regarding any Loan Party or any of its Affiliates (including information that may be subject to confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that no Agent shall be under any obligation to provide such information to them.

 

Section 9.03                            Exculpatory Provisions.  Neither the Administrative Agent, Collateral Agent nor any other Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and the duties of the Administrative Agent and the Collateral Agent hereunder will be administrative in nature.  Without limiting the generality of the foregoing, an Agent (including the Administrative Agent and Collateral Agent):

 

(a)                                 shall not be subject to any fiduciary or other implied (or express) duties, regardless of whether a Default has occurred and is continuing;

 

(b)                                 shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that no Agent shall be required to take any action (or where so instructed, refrain from exercising) that, in its opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable Laws, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

 

(c)                                  shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by any Person serving as an Agent or any of its Affiliates in any capacity.

 

The Administrative Agent and Collateral Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent or Collateral Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 8.02 and Section 10.01) or (ii) in the absence of its own gross negligence or willful misconduct as determined by the final, non-appealable judgment of a court of competent jurisdiction, in connection with its duties expressly set forth herein.  The Administrative Agent and Collateral Agent shall be deemed not to have knowledge of any Default unless and until written notice describing such Default is given to the Administrative Agent or Collateral Agent by the Borrower or a Lender.

 

No Agent-Related Person shall be responsible for or have any duty to ascertain or inquire into (i) any recital, statement, warranty or representation made in or in connection with this Agreement or any 

 

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other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default (including, without limitation, compliance with the terms and conditions of Section 10.07(h)(iii)), (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or the sufficiency of any Collateral, (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

Section 9.04                            Reliance by Agents.  Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, each Agent may presume that such condition is satisfactory to such Lender unless such Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  Each Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

Each Agent may at any time request instructions from the Lenders with respect to any actions or approvals which by the terms of this Agreement or of any of the Loan Documents such Agent is permitted or desires to take or to grant, and each Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  No Lender shall have any right of action whatsoever against any Agent as a result of such Agent acting or refraining from acting under this Agreement or any of the other Loan Documents in accordance with the instructions of the Required Lenders.  Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders; provided that no Agent shall be required to take any action that, in its opinion or in the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable Laws.

 

Section 9.05                            Delegation of Duties.  The Administrative Agent and the Collateral Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Documents by or through any one or more sub agents appointed by the Administrative Agent or the Collateral Agent.  The Administrative Agent, the Collateral Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective Agent-Related Persons.  The exculpatory provisions of this Article IX shall apply to any such sub agent and to the Agent-Related Persons of the Administrative Agent, the Collateral Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent or Collateral Agent.  Neither the Administrative Agent nor the Collateral Agent shall be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable 

 

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judgment that the Administrative Agent or the Collateral Agent acted with gross negligence, bad faith or willful misconduct in the selection of such sub-agents.

 

Section 9.06                            Non-Reliance on Administrative Agent, Collateral Agent and Other Lenders; Disclosure of Information by Agents.  Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by any Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession.  Each Lender represents to each Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of an investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrower and the other Loan Parties hereunder.  Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the other Loan Parties.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by any Agent herein, such Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of any Agent-Related Person.

 

Section 9.07                            Indemnification of Agents.  Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Administrative Agent, the Collateral Agent and each other Agent-Related Person (solely to the extent any such Agent-Related Person was performing services on behalf of the Administrative Agent or the Collateral Agent) (to the extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party to do so) in accordance with their respective Pro Rata Shares, and hold harmless the Administrative Agent, the Collateral Agent and each other Agent-Related Person (solely to the extent any such Agent-Related Person was performing services on behalf of the Administrative Agent or the Collateral Agent) from and against any and all Indemnified Liabilities incurred by it; provided that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting from such Agent-Related Person’s own gross negligence, bad faith or willful misconduct or material breach under the Loan Documents, as determined by the final, non-appealable judgment of a court of competent jurisdiction; provided that no action taken in accordance with the directions of the Required Lenders (or such other number or percentage of the Lenders as shall be required by the Loan Documents) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 9.07.  In the case of any investigation, litigation or proceeding giving rise to any Indemnified Liabilities, this Section 9.07 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person.  Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent and the Collateral Agent upon demand for its Pro Rata Share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent or the Collateral Agent in connection with the preparation, syndication, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the 

 

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Administrative Agent or the Collateral Agent is not reimbursed for such expenses by or on behalf of the Borrower; provided that such reimbursement by the Lenders shall not affect the Borrower’s continuing reimbursement obligations with respect thereto; provided, further, that the failure of any Lender to indemnify or reimburse the Administrative Agent or the Collateral Agent shall not relieve any other Lender of its obligation in respect thereof.  The undertaking in this Section 9.07 shall survive termination of the Aggregate Commitments, the payment and satisfaction of all other Obligations and the resignation of the Administrative Agent or the Collateral Agent.

 

Section 9.08                            No Other Duties; Other Agents, Lead Arrangers, Managers, Etc.  Each Agent hereby agrees to act in its capacity as such upon the express conditions contained herein and the other Loan Documents, as applicable.  Anything herein to the contrary notwithstanding, none of the Lead Arrangers, Co-Managers or other Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, Collateral Agent or a Lender hereunder and such Persons shall have the benefit of this Article IX.  Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any agency or fiduciary or trust relationship with any Lender, the Borrower or any of their respective Subsidiaries.  Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

 

Section 9.09                            Resignation and Removal of Administrative Agent.

 

(a)                                 The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above, provided that in no event shall an such successor Administrative Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

 

(b)                                 If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, with the consent of the Borrower, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

 

(c)                                  With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each 

 

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Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or removed) Administrative Agent and other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or the Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article IX and Section 10.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

 

(d)                                 [reserved].

 

Section 9.10                            Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(i)                                     to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 2.09 and Section 10.04) allowed in such judicial proceeding; and

 

(ii)                                  to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agents and their respective agents and counsel, and any other amounts due the Administrative Agent under Section 2.07 and Section 10.04.

 

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all 

 

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or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code of the United States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States, or any similar Laws in any other jurisdictions to which a Loan Party is subject, (b) at any other sale or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable Law.  In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that would vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) in the asset or assets so purchased (or in the Equity Interests or debt instruments of the acquisition vehicle or vehicles that are used to consummate such purchase).  In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles to make a bid, (ii) to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or Equity Interests thereof shall be governed, directly or indirectly, by the vote of the Required Lenders, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in clauses (a) through (j) of Section 10.01 of this Agreement), (iii) the Administrative Agent shall be authorized to assign the relevant Obligations to any such acquisition vehicle pro rata by the Lenders, as a result of which each of the Lenders shall be deemed to have received a pro rata portion of any Equity Interests and/or debt instruments issued by such an acquisition vehicle on account of the assignment of the Obligations to be credit bid, all without the need for any Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata and the Equity Interests and/or debt instruments issued by any acquisition vehicle on account of the Obligations that had been assigned to the acquisition vehicle shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action.

 

Section 9.11                            Collateral and Guaranty Matters.  Each of the Lenders (including in its capacities as a potential Cash Management Bank and a potential Hedge Bank) irrevocably agrees (and authorizes the Collateral Agent to take all necessary or advisable actions to effectuate any of the following):

 

(a)                                 that any Lien on any property granted to or held by the Collateral Agent under any Loan Document shall be automatically released (i) upon expiration or termination of the Aggregate Commitments and payment in full of all Obligations (other than (x) Obligations under Secured Hedge Agreements, (y) Obligations under Secured Cash Management Agreements and (z) contingent indemnification obligations not yet accrued and payable) (the “Termination Date”), (ii) at the time the property subject to such Lien is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition permitted hereunder or under any other Loan Document to any Person other than a Loan Party (whether as a Disposition or an Investment), (iii) subject to Section 10.01, if the release of such Lien is approved, authorized or ratified in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), (iv) if the property subject to such Lien is owned by a Guarantor, upon release of such Guarantor from its obligations under its Guaranty pursuant to clause (c) below, (v) if and to the extent such property constitutes an Excluded Asset or (vi) if required pursuant to any Intercreditor Agreement; provided that, without limitation of the automatic operation of the releases described in clause (a)(ii) above, at the request of the Administrative Agent or at the election of the Borrower, the

 

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Borrower shall deliver a certificate of a Responsible Officer of the Borrower to the Administrative Agent certifying that such release satisfies the requirement in clause (a)(ii) above, which shall be conclusive evidence that such release satisfies the foregoing requirement and such automatic release has occurred (and the Administrative Agent and the Collateral Agent may rely conclusively on such certificate without further inquiry).

 

(b)                                 to release or subordinate any Lien on any property granted to or held by the Collateral Agent under any Loan Document to the holder of any Lien on such property that constitutes an Excluded Asset or is permitted to be senior to the Liens securing the Obligations by Section 7.01(i) or, to the extent related to the foregoing, Section 7.01(dd); and

 

(c)                                  that any Subsidiary Guarantor shall be automatically released from its obligations under the Guaranty and the Collateral Documents if such Person ceases to be a Restricted Subsidiary as a result of a transaction permitted hereunder (including as a result of a Subsidiary Guarantor being designated as an Unrestricted Subsidiary); provided that no such release shall occur if such Guarantor continues (after giving effect to the consummation of such transaction or designation) to be a guarantor in respect of any Junior Financing, any Incremental Equivalent Debt or Refinancing Equivalent Debt;

 

Upon request by the Collateral Agent at any time, the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) will confirm in writing the Collateral Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.11.  In each case as specified in this Section 9.11, the applicable Agent will (and each Lender irrevocably authorizes the applicable Agent to), at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release or subordination of such item of Collateral from the assignment and security interest granted under the Collateral Documents, or to evidence the release of such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.11; provided that, upon the reasonable request of the Collateral Agent, the Collateral Agent shall have received a certificate of a Responsible Officer of the Borrower certifying that such release or subordination is permitted (or not prohibited) under the terms of this Agreement and such supporting documentation relating to such release as the Collateral Agent may reasonably request.

 

The Collateral Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor shall the Collateral Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

 

Section 9.12                            Appointment of Supplemental Administrative Agents.

 

(a)                                 It is recognized that in case of litigation under this Agreement or any of the other Loan Documents, and in particular in case of the enforcement of any of the Loan Documents, or in case the Administrative Agent or Collateral Agent deems that by reason of any present or future Law of any jurisdiction it may not exercise any of the rights, powers or remedies granted herein or in any of the other Loan Documents or take any other action which may be reasonably required or necessary in connection therewith, the Administrative Agent or Collateral Agent, as applicable, is hereby authorized to appoint an additional individual or institution selected by the Administrative Agent in its sole discretion as a separate trustee, co-trustee, administrative agent, collateral agent, administrative sub-agent or administrative co-

 

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agent (any such additional individual or institution being referred to herein individually as a “Supplemental Administrative Agent” and collectively as “Supplemental Administrative Agents”).

 

(b)                                 In the event that the Collateral Agent appoints a Supplemental Administrative Agent with respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to the Collateral Agent with respect to such Collateral shall be exercisable by and vest in such Supplemental Administrative Agent to the extent, and only to the extent, necessary to enable such Supplemental Administrative Agent to exercise such rights, powers and privileges with respect to such Collateral and to perform such duties with respect to such Collateral and (ii) the provisions of this Article IX and of Section 10.04 and Section 10.05(a) (obligating the Borrower to pay the Administrative Agent’s and Collateral Agent’s expenses and to indemnify the Administrative Agent or Collateral Agent) that refer to the Administrative Agent shall inure to the benefit of, and the provisions of Section 10.08 shall be binding upon, such Supplemental Administrative Agent or Collateral Agent and all references therein to the Administrative Agent or Collateral Agent shall be deemed to be references to the Administrative Agent, the Collateral Agent, as applicable, and/or such Supplemental Administrative Agent, the Collateral Agent as the context may require.

 

(c)                                  Should any instrument in writing from any Loan Party be reasonably required by any Supplemental Administrative Agent so appointed by the Administrative Agent for more fully and certainly vesting in and confirming to him or it such rights, powers, privileges and duties, the Borrower shall, or shall cause such Loan Party to, execute, acknowledge and deliver any and all such instruments (in form reasonably satisfactory to the Borrower or such Loan Party) promptly upon the reasonable request by the Administrative Agent or Collateral Agent, as applicable.  In case any Supplemental Administrative Agent, or a successor thereto, shall die, become incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental Administrative Agent, to the extent permitted by Law, shall vest in and be exercised by the Administrative Agent or Collateral Agent, as applicable, until the appointment of a new Supplemental Administrative Agent.

 

Section 9.13                            Intercreditor Agreements.  The Collateral Agent is authorized to enter into any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement and any other intercreditor agreement contemplated hereby (and any amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to, such agreements in connection with the incurrence by any Loan Party of any Indebtedness (or any Permitted Refinancing of the foregoing) that is permitted to be secured by all or a portion of the Collateral hereunder (with such priority as may be designated by the Borrower or relevant Subsidiary, to the extent such priority is permitted by the Loan Documents)), and the parties hereto acknowledge that any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement (if entered into) and/or any other intercreditor arrangements entered into in connection herewith, will be binding upon them.  Each Lender (a) hereby agrees that it will be bound by and will take no actions contrary to the provisions of any First Lien Intercreditor Agreement (if entered into), any Junior Lien Intercreditor Agreement (if entered into) and/or any other intercreditor arrangements entered into in connection herewith and (b) hereby authorizes and instructs the Collateral Agent to enter into, if applicable, any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement (if entered into) and any other intercreditor agreement contemplated hereby (on terms reasonably satisfactory to the Administrative Agent and the Collateral Agent) (and any amendments, amendments and restatements, restatements or waivers of or supplements to or other modifications to, such agreements in connection with the incurrence by any Loan Party of any Indebtedness (or any Permitted Refinancing of the foregoing) that is permitted to be secured by all or a portion of the Collateral hereunder (with such priority as may be designated by the Borrower or relevant 

 

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Subsidiary, to the extent such priority is permitted by the Loan Documents)), and to subject the Liens on the Collateral securing the Obligations to the provisions thereof.

 

Section 9.14                            Secured Cash Management Agreements and Secured Hedge Agreements.  Except as otherwise expressly set forth herein or in any Guaranty or any other Collateral Document, no Cash Management Bank or Hedge Bank that obtains the benefits of Section 8.03, any Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any other Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Article IX to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Obligations arising under Secured Cash Management Agreements or Obligations arising under Secured Hedge Agreements unless the Administrative Agent has received written notice of such Obligations arising under Secured Cash Management Agreements or such Obligations arising under Secured Hedge Agreements, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.

 

Section 9.15                            Withholding Taxes.  To the extent required by any applicable Laws (as determined in good faith by the Administrative Agent), the Administrative Agent may withhold from any payment to any Lender under any Loan Document an amount equivalent to any applicable withholding Tax.  Without limiting or expanding the provisions of Section 3.01, each Lender shall indemnify and hold harmless the Administrative Agent against, and shall make payable in respect thereof within ten (10) days after demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative Agent by the IRS or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold Tax from amounts paid to or for the account of such Lender for any reason (including because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of withholding Tax, ineffective).  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this Section 9.15.  The agreements in this Section 9.15 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, and the repayment, satisfaction or discharge of any Loans and all other amounts payable hereunder.

 

ARTICLE X

 

Miscellaneous

 

Section 10.01                     Amendments, Etc.  (A)  Except as otherwise set forth in this Agreement, no amendment, modification, supplement or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and acknowledged by the Administrative Agent (or signed by the Administrative Agent with the consent of the Required Lenders) (other than with respect to any amendment, modification, supplement or waiver contemplated in clause (a) (as it relates to extensions only), clause (h) or clause (j) below, which shall only require the consent of the relevant lenders directly and adversely affected thereby (in the case of clause (a)) or the Required Facility Lenders 

 

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under the applicable Class, as applicable, in the case of clauses (h) and clause (j)) and the Borrower or the applicable Loan Party, as the case may be, and each such waiver, amendment, modification, supplement or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that, no such amendment, modification, supplement, waiver or consent shall:

 

(a)                                 extend or increase the Commitment of any Lender without the written consent of each Lender directly and adversely affected thereby (it being understood that a waiver of (or amendment to the terms of) any condition precedent set forth in Section 4.01 or Section 4.02 or the waiver of any Default, Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Lender);

 

(b)                                 postpone any date scheduled for, or reduce the amount of, any payment of principal or interest under Section 2.07 or Section 2.08 without the written consent of each Lender directly and adversely affected thereby, it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Loans shall not constitute a postponement of any date scheduled for the payment of principal or interest and it further being understood that any change to the definition of “Total Net First Lien Leverage Ratio,”  “Total Net Senior Secured Leverage Ratio,” “Total Net Leverage Ratio”, “Fixed Charge Coverage Ratio” or any other ratio used as a basis to calculate the amount of any principal or interest payment or in the component definitions thereof shall not constitute a reduction in any amount of interest or fee;

 

(c)                                  reduce the principal of, or the rate of interest specified herein on, any Loan, or (subject to clauses (i), (ii) and (iii) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby; provided that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate;

 

(d)                                 except in a transaction permitted by Section 7.04, permit assignment of rights and obligations of the Borrower hereunder, without the written consent of each Lender;

 

(e)                                  change any provision of this Section 10.01 or the definition of “Required Lenders,” or “Required Facility Lenders,” without the written consent of each Lender directly and adversely affected thereby; provided that the written consent of each Lender shall be required with respect to a reduction of any of the voting percentages set forth in the definition of “Required Lenders,” or “Required Facility Lenders”;

 

(f)                                   other than in connection with a transaction permitted under Section 7.04 or Section 7.05 or as expressly permitted in Section 9.11, release all or substantially all of the Collateral in any transaction or series of related transactions, without the written consent of each Lender;

 

(g)                                  other than in connection with a transaction permitted under Section 7.04 or Section 7.05 or as expressly permitted in Section 9.11, release all or substantially all of the aggregate value of the Guaranty or all or substantially all of the Guarantors, without the written consent of each Lender;

 

(h)                                 amend, waive or otherwise modify any term or provision (including the availability and conditions to funding under Section 2.14 with respect to New Term Loans) which directly adversely affects Lenders of one or more New Term Loans and does not directly adversely affect Lenders under any other Class, in each case, without the written consent of the Required Facility Lenders under 

 

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such applicable New Term Loans (and in the case of multiple Classes which are affected, such Required Facility Lenders shall consent together as one Class);

 

(i)                                     amend, waive or otherwise modify any pro rata sharing of payment provision or any other payment “waterfall” in any other Loan Document without the written consent of each Lender directly and adversely affected thereby;

 

(j)                                    amend, waive or otherwise modify any other term or provision (including, without limitation, the waiver of any conditions set forth in Section 4.02 as to any Credit Extension under one or more Facilities but excluding amendments, waivers or other modifications to provisions requiring pro rata payments or sharing of payments under any Loan Document) which directly and adversely affects Lenders under one or more Facilities and does not directly and adversely affect Lenders under any other Facilities, in each case, without the written consent of the Required Facility Lenders under such applicable directly and adversely affected Facility or Facilities (and in the case of multiple Facilities which are so affected, such Required Facility Lenders shall consent together as one Facility);

 

and provided, further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, adversely affect the rights or duties of, or any fees or other amounts payable to, the Administrative Agent under this Agreement or any other Loan Document; and (ii) Section 10.07(g) may not be amended, waived or otherwise modified without the consent of each Granting Lender all or any part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other modification.  Any such waiver and any such amendment, modification or supplement in accordance with the terms of this Section 10.01 shall apply equally to each of the Lenders and shall be binding on the Loan Parties, the Lenders, the Agents and all future holders of the Loans and Commitments.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver, or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender (it being understood that any Commitments or Loans held or deemed held by any Defaulting Lender shall be excluded for a vote of the Lenders hereunder requiring any consent of the Lenders).

 

(B)                               Notwithstanding anything to the contrary herein:

 

(a)                                 no Lender consent is required to effect any amendment, modification or supplement to any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement and/or any other intercreditor arrangements entered into in connection herewith (i) that is for the purpose of adding the holders of Indebtedness (or any Permitted Refinancing of the foregoing) that is permitted to be secured by all or a portion of the Collateral hereunder (or a Representative with respect thereto) as parties thereto, as expressly contemplated by the terms of such First Lien Intercreditor Agreement or Junior Lien Intercreditor Agreement or such other intercreditor arrangement, as applicable (it being understood that any such amendment, modification or supplement may make such other changes to the applicable intercreditor agreement as, in the good faith determination of the Administrative Agent, are required to effectuate the foregoing; provided that such other changes, if material to the interests of the Lenders, are permitted under the succeeding clauses (ii) and (iii)), (ii) that is expressly contemplated by any First Lien Intercreditor Agreement, any Junior Lien Intercreditor Agreement and/or any other intercreditor arrangements entered into in connection herewith or (iii) that effects changes that are not material to the interests of the Lenders; provided, further, that no such agreement shall directly and adversely amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder or under any other Loan Document without the prior written consent of the Administrative Agent;

 

(b)                                 this Agreement may be amended (or amended and restated) with the written consent of the Administrative Agent, the Borrower and the Lenders providing the relevant Replacement 

 

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Term Loans (as such term is defined below) to permit the refinancing of all or any portion of any Class of Term Loans outstanding (the “Replaced Term Loans”) with one or more tranches of term loans hereunder (the “Replacement Term Loans”); provided that (i) the aggregate principal amount of such Replacement Term Loans shall not exceed the aggregate principal amount of such Replaced Term Loans plus an amount equal to unpaid accrued interest, fees, premium thereon and fees and expenses incurred (including OID, upfront fees and similar items), in connection with such refinancing, (ii) the All-In Yield for such Replacement Term Loans shall not be higher than the All-In Yield for such Replaced Term Loans, (iii) the Weighted Average Life to Maturity and final maturity of such Replacement Term Loans shall not be shorter or earlier, as the case may be, than the Weighted Average Life to Maturity of such Replaced Term Loans at the time of such refinancing and (iv) all other terms (other than maturity and pricing) applicable to such Replacement Term Loans shall be substantially the same as, and no more favorable to the Lenders providing such Replacement Term Loans than, the terms applicable to such Replaced Term Loans, except to the extent necessary to provide for covenants and other terms applicable to any period after the maturity date in respect of the Replaced Term Loans in effect immediately prior to such refinancing or such other terms applicable to such Replacement Term Loans that are reflective of market terms and conditions for such Replacement Term Loans at the time of the issuance thereof (as determined by the Borrower in good faith); provided, however, that the covenants applicable thereto shall not include any financial maintenance covenant unless such covenant is also added to this Agreement for the benefit of the Lenders.  Each amendment to this Agreement providing for Replacement Term Loans may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent and the Borrower, to effect the provisions of this paragraph, and for the avoidance of doubt, this paragraph shall supersede any other provisions in this Section 10.01 to the contrary;

 

(c)                                  this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (i) 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 Loan Documents with the Term Loans and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders;

 

(d)                                 [reserved]; and

 

(e)                                  this Agreement may be amended pursuant to an Incremental Amendment in accordance with the requirements of Section 2.14, a Refinancing Amendment in accordance with the requirements of Section 2.15 and an Extension Amendment in accordance with the requirements of Sections 2.17.

 

Notwithstanding anything to the contrary contained in this Section 10.01, the Guaranty, the Collateral Documents and related documents executed by the Loan Parties or the Subsidiaries in connection with this Agreement and the other Loan Documents may be in a form reasonably determined by the Administrative Agent and may be, together with this Agreement, amended, modified and waived with the consent of the Administrative Agent at the request of the Borrower without the need to obtain the consent of any other Lender if such amendment, modification or waiver is delivered in order (i) to comply with local Law or advice of local counsel, or (ii) to cause such Guaranty, Collateral Document or other document to be consistent with this Agreement and the other Loan Documents.

 

Notwithstanding anything to the contrary contained in this Section 10.01, if at any time after the Closing Date, the Administrative Agent and the Borrower shall have jointly identified an obvious error (including, but not limited to, an incorrect cross-reference) or any error or omission of a technical or 

 

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immaterial nature, in each case, in any provision of this Agreement or any other Loan Document (including, for the avoidance of doubt, any exhibit, schedule or other attachment to any Loan Document), then the Administrative Agent (in its sole discretion) and the Borrower or any other relevant Loan Party shall be permitted to amend such provision.  The Administrative Agent shall notify the Lenders of such amendment and such amendment shall become effective five (5) Business Days after such notification unless the Required Lenders object to such amendment in writing delivered to the Administrative Agent prior to such time.

 

Section 10.02                     Notices and Other Communications; Facsimile Copies.

 

(a)                                 General.  Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing (including by facsimile, e-mail or other electronic communication, subject to Section 10.02(b)) and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or e-mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(i)                                     if to the Borrower, any other Loan Party or the Administrative Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a written notice to the other parties; and

 

(ii)                                  if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower) or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a written notice to the Borrower, and the Administrative Agent.

 

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below shall be effective as provided in such subsection (b).

 

(b)                                 Electronic Communication.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, messaging and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or a Loan Party may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

(c)                                  E-Mail Communication.  Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt 

 

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requested” function, as available, return e-mail or other written acknowledgement) and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed and/or acknowledged (in accordance with preceding clause (i)) receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that for both clauses (i) and (ii), if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

 

(d)                                 The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Agent-Related Persons or any Lead Arranger (collectively, the “Agent Parties”) have any liability to the Borrower, any other Loan Party, any Lender, or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of Borrower Materials or notices through the Platform, any other electronic messaging service, or through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct or material breach under the Loan Documents of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Borrower, any other Loan Party, any Lender or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).  The Administrative Agent may, but shall not be obligated to, make the Borrower Materials available to Lenders by posting the Borrower Materials on the Platform.

 

(e)                                  Change of Address.  Each of the Loan Parties and the Administrative Agent may change its address, facsimile, electronic mail address or telephone number for notices and other communications hereunder by written notice to the other parties hereto.  Each other Lender may change its address, facsimile, electronic mail address or telephone number for notices and other communications hereunder by written notice to the Borrower and the Administrative Agent.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Laws, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws.

 

(f)                                   Reliance by the Administrative Agent, the Collateral Agent and Lenders.  The Administrative Agent, the Collateral Agent and the Lenders shall be entitled to rely and act upon any 

 

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notices (including telephonic notices and Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Loan Parties shall indemnify the Administrative Agent, the Collateral Agent, each Lender and the Agent-Related Person from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent or the Collateral Agent may be recorded by the Administrative Agent or the Collateral Agent, and each of the parties hereto hereby consents to such recording.

 

Section 10.03                     No Waiver; Cumulative Remedies.  No failure by any Lender, the Administrative Agent or the Collateral Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.

 

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) [reserved], (c) any Lender from exercising setoff rights in accordance with Section 10.09 (subject to the terms of Section 2.13), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.13, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

 

Section 10.04                     Attorney Costs and Expenses.  The Borrower agrees (a) if the Closing Date occurs, to pay or reimburse the Administrative Agent and the Lead Arrangers for all reasonable and documented in reasonable detail out-of-pocket expenses incurred prior to, on or after the Closing Date (provided that in the case of payment to be made on the Closing Date, such expenses are to be invoiced two (2) Business Days prior to the Closing Date and otherwise, within thirty (30) days following written demand therefor) in connection with the syndication of the Commitments of the Lenders made available to the Borrower on the Closing Date and the preparation, execution, delivery and administration of this Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of the provisions hereof and thereof (whether or not the transactions contemplated thereby are consummated), limited, in the case of legal fees and expenses, to the Attorney Costs of one counsel to the Administrative Agent and the Lead Arrangers taken as a whole (and, to the extent retained with the Borrower’s consent (such consent not to be unreasonably withheld or delayed), of a single local counsel in each relevant jurisdiction (which may be a single local counsel acting in multiple material jurisdictions)) (in each case, except allocated costs of in-house counsel), and (b) after the Closing Date, promptly following written demand therefor, to pay or reimburse the Administrative Agent, the Lead 

 

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Arrangers and the Lenders for all reasonable and documented in reasonable detail out-of-pocket costs and expenses incurred in connection with the enforcement of any rights or remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any legal proceeding, including any proceeding under any Debtor Relief Law, limited in the case of out-of-pocket legal fees and expenses, to the Attorney Costs of one counsel to the Administrative Agent and the Lenders taken as a whole (and, to the extent retained with the Borrower’s consent (such consent not to be unreasonably withheld or delayed), of a single local counsel in each relevant jurisdiction (which may be a single local counsel acting in multiple material jurisdictions) and, solely in the event of an actual or perceived conflict of interest between the Administrative Agent, the Lead Arrangers and the Lenders, where the Lender or Lenders affected by such conflict of interest inform the Borrower in writing of such conflict of interest and thereafter retains its own counsel, one additional counsel in each relevant material jurisdiction to each group of affected Lenders similarly situated taken as a whole) (in each case, except allocated costs of in-house counsel)) (provided that, other than in connection with an enforcement of any rights or remedies under, and in accordance with, this Agreement and the other Loan Documents, the Borrower shall not be required to reimburse the Administrative Agent, any Lender or any Lead Arranger for any fees, costs or expenses of any third-party advisors, other than such counsel, to the extent retained without the Borrower’s consent (such consent not to be unreasonably withheld or delayed)).  The agreements in this Section 10.04 shall survive the termination of the Aggregate Commitments and repayment of all other Obligations.  If any Loan Party fails to pay when due any costs, expenses or other amounts payable by it hereunder or under any Loan Document, such amount may be paid on behalf of such Loan Party by the Administrative Agent in its sole discretion.

 

Section 10.05                     Indemnification by the Borrower.

 

(a)                                 The Borrower shall indemnify and hold harmless the Administrative Agent, any Supplemental Administrative Agent, the Collateral Agent, each Lender, the Lead Arrangers, the Co-Managers and their respective Affiliates (excluding, in any event, any Permitted Holder or Equity Sponsor identified under clauses (i) and (ii) of the definition hereof) and their respective directors, officers, employees, representatives, agents and advisors (collectively the “Indemnitees”) from and against any and all losses, claims, damages and liabilities that may be asserted or awarded against the Indemnitees and reasonable and documented or invoiced (in reasonable detail) out-of-pocket costs and expenses of any third party that may be awarded against any Indemnitee and other out-of-pocket expenses incurred in connection therewith asserted against any such Indemnitee relating to or arising out of or in connection with (but limited, in the case of out-of-pocket legal fees and expenses, to the Attorney Costs of one counsel to all Indemnitees taken as a whole and, if reasonably necessary, a single local counsel for all Indemnitees taken as a whole in each relevant jurisdiction (which may be a single local counsel acting in multiple jurisdictions), and solely in the case of an actual or perceived conflict of interest where the Indemnitee affected by such conflict of interest informs the Borrower in writing of such conflict of interest and thereafter retains its own counsel, one additional counsel in each relevant material jurisdiction to each group of affected Indemnitees taken as a whole) (provided that, other than in connection with an enforcement of any rights or remedies under, and in accordance with, this Agreement and the other Loan Documents, the Borrower shall not be required to reimburse any Indemnitee for any fees, costs or expenses of any third-party advisors, other than such counsel, to the extent retained without the Borrower’s consent (such consent not to be unreasonably withheld or delayed)) (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Commitment, Loan or the use or proposed use of the proceeds therefrom, or (c) any actual or alleged presence or Release of Hazardous Materials on, at, under or from any real property or facility currently or formerly owned or operated by the Borrower or any other Loan Party, or any Environmental Liability relating in any way to the Borrower or any other Loan Party or (d) any actual or prospective claim, litigation, investigation or proceeding

 

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relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto and without regard to the exclusive or contributory negligence of any Indemnitees (all the foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such Indemnified Liabilities resulted from (w) the gross negligence, bad faith or willful misconduct under the Loan Documents, of such Indemnitee or of any of its Related Indemnified Persons as determined by a final, non-appealable judgment of a court of competent jurisdiction, (x) a material breach of any obligations under any Loan Document by such Indemnitee or of any of its Related Indemnified Persons as determined by a final, non-appealable judgment of a court of competent jurisdiction, (y) any dispute solely among Indemnitees other than any claims against an Indemnitee in its capacity or in fulfilling its role as the Administrative Agent, the Collateral Agent, a Lead Arranger or a similar role under the Facilities and other than any claims arising out of any act or omission of the Borrower or any of its Affiliates or (z) any settlement entered into by any Indemnitee in connection with the foregoing without the Borrower’s prior written consent (such consent not to be unreasonably withheld or delayed), but, if such settlement occurs with Borrower’s written consent or if there is a final judgment in any action or claim with respect to any of the foregoing, the Borrower will be liable for such settlement or such final judgment and will indemnify and hold harmless each Indemnitee from and against any and all losses, claims, damages, liabilities and reasonable and documented (in reasonable detail) out-of-pocket expenses by reason of such settlement or judgment in accordance with this Section 10.05(a).  To the extent that the undertakings to indemnify and hold harmless set forth in this Section 10.05(a) may be unenforceable in whole or in part because they are violative of any applicable Laws or public policy, the Borrower shall contribute the maximum portion that it is permitted to pay and satisfy under applicable Laws to the payment and satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any of them.  Notwithstanding the foregoing, each Indemnitee shall be obligated to refund or return any and all amounts paid by the Borrower under this Section 10.05(a) to such Indemnitee for any losses, claims, damages, liabilities and expenses to the extent such Indemnitee is not entitled to payment of such amounts in accordance with the terms hereof as determined by a court of competent jurisdiction in a final, non-appealable judgment.  No Indemnitee seeking indemnification hereunder with respect to such matter shall, without the Borrower’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed) consent to the entry of any judgment on or otherwise terminate any action referred to herein.  The Borrower shall not, without the prior written consent of any Indemnitee, effect any settlement of any pending or threatened claim, litigation, investigation or proceeding in respect of which indemnity could have been sought hereunder by such Indemnitee unless such settlement (a) includes an unconditional release of such Indemnitee from all liability arising out of such claim, litigation, investigation or proceeding and (b) does not include any statement as to, or any admission of, fault, culpability, wrongdoing or a failure to act by or on behalf of such Indemnitee.  Each Indemnitee shall give (subject to restrictions pursuant to attorney-client privilege, law, rule or regulation, or any obligation of confidentiality) such information and assistance to the Borrower as the Borrower may reasonably request in connection with any claim, litigation, investigation or proceeding in connection with any losses, claims, damages, liabilities and expenses, unless the Indemnitee reasonably determines there are conflicts of interest between the Borrower and the Indemnitee.  No Indemnitee or any Loan Party or Affiliate thereof shall be liable for any damages arising from the use by others of any information or other materials obtained through Intralinks®, Syndtrak® or other similar information transmission systems in connection with this Agreement, except to the extent resulting from the willful misconduct, bad faith or gross negligence of such Loan Party or Affiliate or such Indemnitee or any of its Related Indemnified Persons, as the case may be, as determined by a final and non-appealable judgment of a court of competent jurisdiction, nor shall any Indemnitee or any Loan Party have any liability for any special, punitive, indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date) (in each case, other than, in the case of any Loan Party, in respect of any such damages incurred or paid 

 

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by an Indemnitee to a third party and otherwise required to be indemnified by a Loan Party under this Section 10.05(a)).  In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 10.05(a) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Loan Party, its directors, equity holders or creditors or an Indemnitee or any other Person, whether or not any Indemnitee is otherwise a party thereto and whether or not any of the transactions contemplated hereunder or under any of the other Loan Documents are consummated.  All amounts due under this Section 10.05(a) shall be paid within thirty (30) days after written demand therefor (together with backup documentation supporting such reimbursement request); provided, however, that such Indemnitee shall promptly refund such amount to the extent that there is a final non-appealable judicial determination that such Indemnitee was not entitled to indemnification rights with respect to such payment pursuant to the express terms of this Section 10.05(a).  The agreements in this Section 10.05(a) shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.  Each Indemnitee shall promptly notify the Borrower upon receipt of written notice of any claim or threat to institute a claim; provided that any failure by any Indemnitee to give such notice shall not relieve the Borrower from the obligation to indemnify such Indemnitee in accordance with the terms of this Section 10.05(a) except to the extent that the Borrower is materially prejudiced by such failure.  This Section 10.05(a)  shall not apply to any Taxes except to the extent such amounts represent losses, claims, damages, etc. arising from a non-Tax claim.

 

(b)                                 Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under Section 10.04 or 10.05(a) to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s Pro Rata Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender), such payment to be made severally among them based on such Lenders’ Pro Rata Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought); provided, further, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent), or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) in connection with such capacity.  The obligations of the lenders under this subsection (c) are subject to the provisions of Section 2.12(e).  All amounts due under this Section 10.05(b)  shall be payable not later than ten (10) Business Days after demand therefor.  The agreements in this Section 10.05(b) shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

 

Section 10.06                     Marshaling; Payments Set Aside.  None of the Administrative Agent or any Lender shall be under any obligation to marshal any assets in favor of the Loan Parties or any other party or against or in payment of any or all of the Obligations.  To the extent that any payment by or on behalf of the Borrower is made to any Agent or any Lender, or any Agent or any Lender exercises its right of setoff pursuant to Section 10.09, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by such Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by 

 

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any Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.

 

Section 10.07                     Successors and Assigns.

 

(a)                                 The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not, except as permitted by Section 7.04, assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subclause (b) of this Section 10.07, (ii) by way of participation in accordance with the provisions of subclause (d) of this Section 10.07, (iii) by way of pledge or assignment of a security interest subject to the restrictions of subclause (f) of this Section 10.07, or (iv) to an SPC in accordance with the provisions of subclause (g) of this Section 10.07.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subclause (d) of this Section and, to the extent expressly contemplated hereby, the Agent-Related Persons of each of the Administrative Agent and the Lenders and the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:

 

(i)                                     Minimum Amounts.

 

(A)                               in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)                               in any case not described in subclause (b)(i)(A) of this Section 10.07, the aggregate amount of the Commitment or, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than C$1,000,000 or in an integral multiple of C$1,000,000 in excess thereof, or $1,000,000 or in an integral multiple of $1,000,000 in excess thereof, as applicable (unless each of the Administrative Agent and, so long as no Specified Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld, conditioned or delayed)).

 

(ii)                                  Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned.

 

(iii)                               Required Consents.  No consent shall be required for any assignment except to the extent required by subclause (b)(i)(B) of this Section and, in addition:

 

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(A)                               the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) a Specified Default, has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund of a Lender; provided that, subject to clause (v) below and other than with respect to assignments to a Disqualified Institution, the Borrower shall be deemed to have consented to any such assignment unless the Borrower shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received such written notice thereof;

 

(B)                               the consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed) shall be required, unless such assignment is to a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender;

 

(C)                               [reserved]; and

 

(D)                               [reserved].

 

(iv)                              Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, which shall include, inter alia, a representation by the assignee that it is an Eligible Assignee, any tax forms required by Section 3.01 (unless such assignee is already a Lender), together with a processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive or reduce such processing and recordation fee in the case of any assignment.  The Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.  All assignments shall be by novation.

 

(v)                                 No Assignments to Certain Persons.  Notwithstanding anything to the contrary contained herein, no such assignment shall be made (A) to the Borrower or any of the Borrower’s Subsidiaries except as permitted under Section 2.05(a)(v) or Section 10.07(m), (B) subject to the immediately preceding clause (A) above and subclause (h) below, to any of the Borrower’s Affiliates, (C) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (C), (D) to a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person) or (E) to a Disqualified Institution that has been identified as such on a list provided by the Borrower to the Administrative Agent in accordance with the terms of this Agreement.

 

The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to provide the list of Disqualified Institutions provided by the Borrower and any updates thereto from time to time made in accordance with the definition of “Disqualified Institution” to each Lender and any prospective Lender requesting the same; provided that such list may be updated from time to time by the Borrower in accordance with the definition of “Disqualified Institution” and the Administrative Agent shall not be under any obligation to notify any Lender of any such update.  Notwithstanding anything to the contrary contained herein, the Administrative Agent shall not have any responsibility or liability for monitoring the list of Disqualified Institutions or enforcing (x) the Borrower’s or any Lender’s compliance with the terms of any of the provisions set forth herein with respect to Disqualified Institutions, Affiliated Debt Funds or Non-Debt Fund Affiliates, (y) any prospective Lender’s, Lender’s or participant’s compliance with the requirements set forth in Section 3.01, or determining if any Person is any of the foregoing or otherwise have any liability in connection therewith.

 

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This clause (b) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities or Classes of Loans or Commitments on a non-pro rata basis.

 

In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable Pro Rata Share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full Pro Rata Share of all Loans.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Laws without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to clause (c) of this Section (and, in the case of an Affiliated Lender or a Person that, after giving effect to such assignment, would become an Affiliated Lender, subject to the requirements of clause (h) of this Section), from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Section 3.01, Section 3.04, Section 3.05, Section 10.04 and Section 10.05 with respect to facts and circumstances occurring prior to the effective date of such assignment); provided that, except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.   Upon request, and the surrender by the assigning Lender of its Term Note(s) with respect to the applicable assigned rights and interests, the Borrower (at its own expense) shall execute and deliver a Term Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause (d) of this Section 10.07.

 

(c)                                  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it (in hard copy or electronic or other relevant form) and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and related interest amounts) of the Loans owing to each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall, subject to clause (h) of this Section, be conclusive absent manifest error, and the Borrower, the Agents and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower, any Agent and any Lender, at any reasonable time and from time to time upon reasonable prior notice.  This Section 10.07(c) and Section 2.11 shall be construed so that all Loans are at all times maintained in “registered form” within the meaning of Section 163(f), Section 871(h)(2) 

 

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and Section 881(c)(2) of the Code and any related Treasury regulations (or any other relevant or successor provisions of the Code or of such Treasury regulations).

 

(d)                                 Any Lender may at any time, without the consent of, or notice to, the Borrower, the Administrative Agent, or any other Lender, sell participations to any Person (other than a natural Person or holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries (other than Affiliated Debt Funds) or, to the extent identified on a list provided by the Borrower to the Administrative Agent in accordance with the terms of this Agreement, to a Disqualified Institution), in each case, that is legally entitled to deliver, on the date on which such Person acquires such participation, the documentation described in Section 3.01(c)(i) or (c)(iii), as applicable, and documentation described in Section 3.01(c)(ii) indicating an exemption from FATCA withholding (in each case, as if it were a Lender), (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 9.07 with respect to any payments made by such Lender to its Participant(s).  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and the other Loan Documents and to approve any amendment, modification or waiver of any provision of this Agreement or any other Loan Document; provided that such agreement or instrument (i) may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses (a), (b) (solely in the case of extensions of final maturity), (c), (f), (g) or (i) of the first proviso to Section 10.01 that directly and adversely affects such Participant, in each case only to the extent that the affirmative vote of such Lender from which such Participant purchased the participation would be required under such Section and (ii) shall include, inter alia, a representation by the Participant that it is an Eligible Assignee.  Subject to clause (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the limitations and requirements of such section, including Sections 3.01(b) and (c), as applicable and Section 3.06 and Section 3.07) (through the applicable Lender) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section (it being understood that the documentation required under Section 3.01(b) and (c) shall be delivered solely to the participating Lender).  To the extent permitted by applicable Laws, each Participant also shall be entitled to the benefits of Section 10.09 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.13 as though it were a Lender.

 

(e)                                  A Participant shall not be entitled to receive any greater payment under Section 3.01, 3.04 or 3.05 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent (not to be unreasonably withheld or delayed), which consent shall state that it is being given pursuant to Section 10.07(e) of this Agreement.  If a Lender (or any of its registered assigns) sells a participation pursuant to Section 10.07(d), that Lender (or its registered assign, as the case may be) that sells a participation shall (acting solely for this purpose as a non-fiduciary agent of the Borrower) maintain a register complying with the requirements of Section 163(f), Section 871(h) and Section 881(c)(2) of the Code and the Treasury regulations issued thereunder relating to the exemption from withholding for portfolio interest on which is entered the name and address of each Participant and the principal and interest amounts of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any 

 

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Participant or any information relating to a Participant’s interest in any commitments, loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and the Borrower and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(f)                                   Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Term Note(s), if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or to any central bank having jurisdiction over such Lender; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)                                  Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”) the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make such payment to the Administrative Agent as is required under Section 2.12(b)(ii) and (iii) such SPC and the applicable Loan or any applicable part thereof, shall be appropriately reflected, and shall become effective upon recording, in the Participant Register in the same manner as to participations as otherwise provided under Section 10.07(e).  Each party hereto hereby agrees that (i) each SPC shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations of such Sections) to the same extent as if it were a Granting Lender and had acquired its interest by assignment pursuant to Section 10.07(b) (provided that an SPC shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Granting Lender would have been entitled to receive with respect to the SPC granted to such SPC, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the SPC became an SPC), (ii) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would be liable (and such liabilities shall be retained by the Granting Lender), and (iii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of any provision of any Loan Document, remain and be liable as the lender of record hereunder.  The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior debt of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the United States or any State thereof.  Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Borrower and the Administrative Agent and with the payment of a processing fee in the amount of C$3,500 (which processing fee may be waived by the Administrative Agent in its sole discretion), assign all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information relating to its 

 

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funding of Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

 

(h)                                 Any Term Lender may, at any time, assign all or a portion of its rights and obligations solely with respect to Term Loans under this Agreement to a Person who is or will become, after such assignment, an Affiliated Lender or an Affiliated Debt Fund through (x) Dutch auctions or other offers to purchase open to all Term Lenders on a pro rata basis consistent with the procedures of the type described in Section 2.05(a)(v) or (y) open market purchase on a non-pro rata basis, in each case subject to the following limitations:

 

(i)                                     Affiliated Lenders will not receive information provided solely to Lenders by the Administrative Agent or any Lender and will not be permitted to attend or participate in meetings attended solely by the Lenders and the Administrative Agent, other than the right to receive notices of prepayments and other administrative notices in respect of its Term Loans required to be delivered to Lenders pursuant to Article II;

 

(ii)                                  each assignment to an Affiliated Lender shall be deemed made by the applicable assigning Lender subject to the express acknowledgement set forth in the second succeeding paragraph in connection with such assignment;

 

(iii)                               after giving effect to such assignment, the aggregate principal amount of Term Loans held by Affiliated Lenders shall not exceed 25% of the principal amount of all Term Loans at such time outstanding, in each case, after giving effect to any substantially simultaneous cancellation thereof (such percentage, the “Affiliated Lender Cap”); provided that each of the parties hereto agrees and acknowledges that the Administrative Agent shall not be liable for any losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever incurred or suffered by any Person in connection with any compliance or non-compliance with this clause (j)(iii) or any purported assignment exceeding the Affiliated Lender Cap; and

 

(iv)                              as a condition to each assignment pursuant to this clause (j), the Administrative Agent shall have been provided a notice in the form of Exhibit E-2 to this Agreement in connection with each assignment to an Affiliated Lender or a Person that upon effectiveness of such assignment would constitute an Affiliated Lender, and (without limitation of the provisions of clause  (iii) above) shall be under no obligation to record such assignment in the Register until three (3) Business Days after receipt of such notice.

 

Notwithstanding anything to the contrary contained herein, any Affiliated Lender or Affiliated Debt Fund that has purchased Term Loans pursuant to this clause (h) may, in its sole discretion but subject to the consent of the Borrower, contribute, directly or indirectly, the principal amount of such Term Loans, plus all accrued and unpaid interest thereon, to the Borrower (through any direct or indirect parent thereof) for the purpose of immediately cancelling and extinguishing such Term Loans and such contribution may be in exchange for debt or equity securities of the Borrower (or any direct or indirect parent thereof) otherwise permitted by the terms of this Agreement to be issued or incurred at such time.  Upon the date of such contribution, assignment or transfer, (x) the aggregate outstanding principal amount of Term Loans shall reflect such cancellation and extinguishing of the Term Loans then held by the Borrower and (y) the Borrower shall promptly provide notice to the Administrative Agent of such contribution of such Term Loans, and the Administrative Agent, upon receipt of such notice, shall reflect the cancellation and extinguishing of the applicable Term Loans in the Register.

 

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Each Lender participating in any assignment to Affiliated Lenders acknowledges and agrees that in connection with such assignment, (1) the Affiliated Lenders then may have, and later may come into possession of material non-public information, (2) such Lender has independently and, without reliance on the Affiliated Lenders or any of their Subsidiaries, the Borrower or any of its Subsidiaries, the Administrative Agent or any other Agent-Related Persons, made its own analysis and determination to participate in such assignment notwithstanding such Lender’s lack of knowledge of the material non-public information, (3) none of the Affiliated Lenders or any of their Subsidiaries, the Borrower or any of its Subsidiaries shall be required to make any representation that it is not in possession of material non-public information, (4) none of the Affiliated Lenders or its Affiliates, the Borrower or any of its Subsidiaries or Affiliates, the Administrative Agent or any other Agent-Related Persons shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender may have against any Affiliated Lender or Affiliate thereof, the Borrower or any of its Subsidiaries or Affiliates, the Administrative Agent and any other Agent-Related Persons, under applicable Laws or otherwise, with respect to the nondisclosure of the material non-public information and (5) that the material non-public information may not be available to the Administrative Agent or the other Lenders.

 

(i)                                     Notwithstanding anything in Section 10.01 or the definition of “Required Lenders” or “Required Facility Lenders” to the contrary:

 

(i)                                     for purposes of determining whether the Required Lenders or Required Facility Lenders have (A) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document or any departure by any Loan Party therefrom, or subject to Section 10.07(j), any plan of reorganization pursuant to the Bankruptcy Code, (B) otherwise acted on any matter related to any Loan Document, or (C) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, no Affiliated Lender shall have any right to consent (or not consent), otherwise act or direct or require the Administrative Agent or any Lender to take (or refrain from taking) any such action and all Loans held by such Affiliated Lenders, respectively shall be deemed to have been voted in the same proportion as the allocation of voting by Lenders that are not Affiliated Lenders, respectively for all purposes of calculating whether the Required Lenders or Required Facility Lenders (as applicable) have taken any actions; each Affiliated Debt Fund hereby acknowledges, agrees and consents that if, for any reason, its vote to accept or reject any plan pursuant to the Bankruptcy Code or any other debtor relief Laws is not deemed to have been so voted, then such vote will be (x) deemed not to be in good faith and (y) “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other debtor relief Laws) such that the vote is not counted in determining whether the applicable class has accepted or rejected such plan in accordance with Section 1126(e) of the Bankruptcy Code (or any such similar provision);

 

(ii)                                  Affiliated Debt Funds may not in the aggregate account for more than 49.9% of the amounts set forth in the calculation of Required Lenders or Required Facility Lenders;

 

(iii)                               [reserved]; and

 

(iv)                              notwithstanding the above, no amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document or any departure by any Loan Party therefrom shall directly and adversely affect any Affiliated Lender or Affiliated Debt Fund in its capacity as a Lender in a manner that is disproportionate to the effect on any Lender of the same 

 

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Class or that would deprive such Affiliated Lender or Affiliated Debt Fund of its Pro Rata Share of any payments to which it is entitled.

 

(j)                                    Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, but subject to clauses (i) and (iv) of Section 10.07(i) above, each Affiliated Lender hereby agrees that, if a proceeding under any Debtor Relief Law shall be commenced by or against the Borrower or any other Loan Party at a time when such Lender is an Affiliated Lender, such Affiliated Lender irrevocably authorizes and empowers the Administrative Agent to vote on behalf of such Affiliated Lender with respect to the Term Loans held by such Affiliated Lender in any manner in the Administrative Agent’s sole discretion, unless the Administrative Agent instructs such Affiliated Lender to vote, in which case such Affiliated Lender shall vote with respect to the Term Loans held by it as the Administrative Agent directs.  The Lenders and each Affiliated Lender agree and acknowledge that the provisions set forth in this Section 10.07(j) and the related provisions set forth in each Assignment and Assumption entered into by an Affiliated Lender constitute a “subordination agreement” as such term is contemplated by, and utilized in, Section 510(a) of the Bankruptcy Code, and, as such, would be enforceable for all purposes in any case where the Borrower or any Restricted Subsidiary has filed for protection under any law relating to bankruptcy, insolvency or reorganization or relief of debtors applicable to the Borrower or such Restricted Subsidiary, as applicable.  Each Affiliated Lender hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as such Affiliated Lender’s attorney-in-fact, with full authority in the place and stead of such Affiliated Lender and in the name of such Affiliated Lender (solely in respect of Term Loans and participations therein and not in respect of any other claim or status such Affiliated Lender may otherwise have), from time to time in the Administrative Agent’s discretion to take any action and to execute any instrument that the Administrative Agent may deem reasonably necessary to carry out the provisions of this Section 10.07(j).

 

(k)                                 [reserved].

 

(l)                                     [reserved].

 

(m)                             Any Lender may, so long as no Event of Default has occurred and is continuing, at any time, assign all or a portion of its rights and obligations with respect to Term Loans under this Agreement to the Borrower or any of the Borrower’s Subsidiaries through (x) Dutch auctions or other offers to purchase open to all Lenders on a pro rata basis consistent with the procedures set forth in Section 2.05(a)(v) or (y) notwithstanding Sections 2.12 and 2.13 or any other provision in this Agreement, open market purchase on a non-pro rata basis; provided further that:

 

(i)                                     upon such assignment to any Subsidiary, such Subsidiary shall automatically be deemed to have directly or indirectly contributed the principal amount of such Term Loans, plus accrued and unpaid interest thereon, to the Borrower;

 

(ii)                                  (a) the principal amount of such Term Loans, along with all accrued and unpaid interest thereon, shall be deemed automatically cancelled and extinguished on the date of such assignment, (b) the aggregate outstanding principal amount of Term Loans of the remaining Lenders shall reflect such cancellation and extinguishment and (c) the Borrower or any of the Borrower’s Subsidiaries, as applicable, shall promptly provide notice to the Administrative Agent of such, assignment of such Term Loans, and the Administrative Agent, upon receipt of such notice, shall reflect the cancellation of the applicable Term Loans in the Register; and

 

(iii)                               each assignment to the Borrower or any of the Borrower’s Subsidiaries that purchases any Term Loans pursuant to this clause (m) shall be deemed made by the applicable

 

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assigning Lender subject to the express acknowledgement set forth in the immediately succeeding paragraph in connection with such assignment.

 

Each Lender participating in any assignment to the Borrower or any Subsidiary of the Borrower (including pursuant to Section 2.05(a)(v)) acknowledges and agrees that in connection with such assignment, (1) the Borrower and its Subsidiaries then may have, and later may come into possession of material non-public information, (2) such Lender has independently and, without reliance on the Affiliated Lenders or any of their Subsidiaries, the Borrower or any of its Subsidiaries, the Administrative Agent or any other Agent-Related Persons, made its own analysis and determination to participate in such assignment notwithstanding such Lender’s lack of knowledge of the material non-public information, (3) none of the Borrower or any of its Subsidiaries shall be required to make any representation that it is not in possession of material non-public information, (4) none of the Borrower any of the its Subsidiaries, the Administrative Agent or any other Agent-Related Persons shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender may have against the Borrower or any of its Subsidiaries, the Administrative Agent and any other Agent-Related Persons, under applicable Laws or otherwise, with respect to the nondisclosure of the material non-public information and (5) that the material non-public information may not be available to the Administrative Agent or the other Lenders.

 

(n)                                 The aggregate outstanding principal amount of the Term Loans of the applicable Class shall be deemed reduced by the full par value of the aggregate principal amount of the Term Loans purchased by, or contributed to (in each case, and immediately cancelled hereunder), the Borrower pursuant to Section 10.07(h) or (m) and the principal repayment installments with respect to the Term Loans of such Class pursuant to Section 2.07, as applicable, shall be reduced pro rata by the par value of the aggregate principal amount of Term Loans so purchased or contributed (and subsequently cancelled), with such reduction being applied solely to the Term Loans of the Lenders which sold such Term Loans.

 

Notwithstanding anything herein to the contrary, each of the Administrative Agent and the Borrower hereby consents to each assignment of Initial Term Loans or 2018 Incremental Term Loans effected (or to be effected) by the Lead Arrangers (or any of their respective affiliates) to any of them (or any of their respective affiliates) or ultimate lenders of record under this Agreement (the identities and allocations of which were approved by the Borrower prior to the Closing Date or the First Amendment Effective Date, as applicable) in connection with the primary syndication of the Initial Term Loans or the 2018 Incremental Term Loans, as applicable.

 

Section 10.08                     Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information in accordance with its customary procedures (as set forth below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective directors, officers, employees, legal counsel, independent auditors and other experts or agents who need to know such information in connection with the Transaction or the Loan Documents (or the transactions contemplated therein), who are informed of the confidential nature of such Information and instructed to keep such Information confidential, (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), in which case, the Administrative Agent and the Lenders agree to inform the Borrower promptly thereof prior to such disclosure, unless such Person is prohibited by applicable Laws from so informing the Borrower, or except in connection with any request as part of any regulatory audit or examination conducted by bank accountants or any governmental or regulatory authority exercising examination or regulatory authority, (c) to the extent required by applicable Laws or by any subpoena or similar legal process; provided that the Administrative Agent or such Lender, as applicable, agrees that it will notify the Borrower promptly thereof, unless such notification is prohibited by law, rule or regulation, or except in connection with any request as part of 

 

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any regulatory audit or examination conducted by accountants or any governmental or regulatory authority exercising examination or regulatory authority, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions at least as restrictive as those of this Section 10.08, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible Assignee invited to be an Additional Lender or (ii) any actual or prospective direct or indirect counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) on a confidential basis, to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Facilities hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the Facilities, (h) with the consent of the Borrower, (i) to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent in connection with the administration and management of this Agreement and the Loan Documents and the Commitments (it being understood that, prior to any such disclosure, such agency, bureau, data collector, or service provider shall undertake to preserve the confidentiality of any Information relating to the Loan Parties received by it from such Lender) or (j) to the extent such Information (i) is at the time of such disclosure, or becomes, publicly available other than as a result of a breach of this Section by such Person or any Person identified in clause (a) above or (ii) is at the time of such disclosure, or becomes, available to the Administrative Agent, any Lender, or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower or any of its Subsidiaries, and which source is not known by such Agent or Lender, after due inquiry, to be subject to a confidentiality restriction in respect thereof in favor of the Borrower or any Affiliate of the Borrower; provided, however, that no disclosure pursuant to clause (a) or (f) shall be made to any Disqualified Institution to the extent identified on a list of Disqualified Institutions that has previously been provided to the Lead Arrangers or the Administrative Agent (to be made available to the Lenders).

 

For purposes of this Section, “Information” means all information received from any Loan Party or any Subsidiary thereof (including, for the avoidance of doubt, their respective directors, officers, employees, members of managements, consultants, representatives, agents and advisors) or in connection with an inspection of the books, records or properties of the Borrower or the Subsidiaries relating to any Loan Party or any Subsidiary thereof or their respective businesses, other than any such information that is available to the Administrative Agent, or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiary; it being understood that all information received from any of the Borrower or any Subsidiary after the date hereof shall be deemed confidential unless such information is clearly identified at the time of delivery as not being confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so in accordance with its customary procedures if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may include material non-public information concerning any of the Borrower or a Subsidiary, as the case may be, (b) it has policies and procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Laws, including United States Federal, state and foreign securities Laws, in accordance with its policies and procedures.

 

Section 10.09                     Set-off.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent permitted by applicable Laws, to set off and apply any and all deposits (general or special, time or demand, provisional 

 

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or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate, as the case may be, to or for the credit or the account of the Borrower or any other Loan Party against any and all of the Obligations (other than, with respect to any Guarantor, Excluded Swap Obligations of such Guarantor), irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such other Loan Party may be contingent or unmatured or denominated in a currency different from that of the applicable deposit or Indebtedness or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated on such indebtedness.  The rights of each Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of set-off) that such Lender or its Affiliates may have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such set-off and application made by such Lender, as the case may be; provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

Section 10.10                     Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Laws (the “Maximum Rate”).  If any 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 an Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Laws, (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.  If any provision of this Agreement or of any of the other Loan Documents would obligate the Borrower or a Guarantor to make any payment of interest or other amount payable to any Lender in an amount or calculated at a rate which would be prohibited by applicable Law in Canada or would result in a receipt by such Lender of interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)) then, notwithstanding such provisions, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by applicable Law or so result in a receipt by such Lender of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as follows: firstly, by reducing the amount or rate of interest required to be paid to such Lender under the applicable Loan Document, and thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to such Lender which would constitute “interest” for purposes of Section 347 of the Criminal Code (Canada).

 

Section 10.11                     Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents, and the Administrative Agent Fee Letter, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging (including in .pdf format) means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 10.12                     Electronic Execution of Assignments and Certain Other Documents.  The words “execution,” “execute,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby 

 

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(including, without limitation, Assignment and Assumptions, amendments or other Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Laws, including (i) the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act and (ii) Parts 2 and 3 of the Personal Information Protection and Electronic Documents Act (Canada), the Electronic Commerce Act, 2000 (Ontario) and other similar federal or provincial laws in Canada based on the Uniform Electronic Commerce Act of the Uniform Law Conference of Canada or its Uniform Electronic Evidence Act, as the case may be; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.

 

Section 10.13                     Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent, the Collateral Agent and each Lender, regardless of any investigation made by the Administrative Agent, the Collateral Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent, the Collateral Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

 

Section 10.14                     Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 10.15                     GOVERNING LAW, JURISDICTION AND ARBITRATION.

 

(a)                                 THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)                                 THE BORROWER, EACH AGENT AND EACH LENDER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT 

 

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OR THE TRANSACTIONS RELATING HERETO OR THERETO OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT, HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  EACH PARTY HERETO AGREES THAT THE AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY LOAN PARTY IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER ANY COLLATERAL DOCUMENT OR THE ENFORCEMENT OF ANY JUDGMENT.

 

(c)                                  THE BORROWER, EACH AGENT AND EACH LENDER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN CLAUSE (b) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

Section 10.16                     WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 10.17                     Binding Effect.  This Agreement shall become effective when it shall have been executed by the Borrower and the Administrative Agent and the Administrative Agent shall have been notified by each Lender that each such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their respective successors and permitted assigns.

 

Section 10.18                     Lender Action.  Each Lender agrees that it shall not take or institute any actions or proceedings, judicial or otherwise, for any right or remedy against any Loan Party under any of the Loan Documents or the Secured Hedge Agreements (including the exercise of any right of set-off, rights on account of any banker’s lien or similar claim or other rights of self-help), or institute any actions or proceedings, or otherwise commence any remedial procedures, with respect to any Collateral or any other property of any such Loan Party, without the prior written consent of the Administrative Agent (which shall not be withheld in contravention of Section 9.04).  The provision of this Section 10.18 is for 

 

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the sole benefit of the Lenders and shall not afford any right to, or constitute a defense available to, any Loan Party.

 

Section 10.19                     [Reserved].

 

Section 10.20                     PATRIOT Act Notice .  Each Lender that is subject to the PATRIOT Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the PATRIOT Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act.

 

Section 10.21                     Service of Process.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

Section 10.22                     No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Agents, the Lead Arrangers, the Co-Managers and the Lenders are arm’s-length commercial transactions between the Borrower and their respective Affiliates, on the one hand, and the Agents, the Lead Arrangers, the Co-Managers and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Agents, the Co-Managers and the Lead Arrangers are and have been, and each Lender is and has been, acting solely as a principal and, except as expressly agreed in writing by the relevant parties, have or has not been, are or is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) none of the Agents, the Lead Arrangers, the Co-Managers nor any Lender has any obligation to the Borrower or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Agents, the Lead Arrangers, the Co-Managers, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and their respective Affiliates, and none of the Agents, the Lead Arrangers, the Co-Managers nor any Lender has any obligation to disclose any of such interests to the Borrower or any of their respective Affiliates.  To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Agents, the Lead Arrangers, the Co-Managers or any Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

Section 10.23                     Judgment Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of the Borrower in respect 

 

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of any such sum due from it to the Administrative Agent or the Lenders hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent from the Borrower in the Agreement Currency, the Borrower agree, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under applicable Law).

 

Section 10.24                     Cashless Settlement.  Notwithstanding anything to the contrary contained in this Agreement, any Lender may exchange, continue or rollover all or a portion of its Loans in connection with any refinancing, extension, loan modification or similar transaction permitted by the terms of this Agreement, pursuant to a cashless settlement mechanism approved by the Borrower, the Administrative Agent and such Lender.

 

Section 10.25                     Appointment of Hypothecary Representative for Quebec Security. For the purposes of the grant of security under the laws of the Province of Quebec which may now or in the future be required to be provided by any Obligor, Barclays is hereby irrevocably authorized and appointed by each of the Lenders to act as hypothecary representative (within the meaning of Article 2692 of the Civil Code of Quebec) for all present and future Lenders and the other Secured Parties (in such capacity, the “Hypothecary Representative”) in order to hold any hypothec granted under the laws of the Province of Quebec and to exercise such rights and duties as are conferred upon the Hypothecary Representative under the relevant deed of hypothec and Applicable Laws (with the power to delegate any such rights or duties). The execution prior to the date hereof by Barclays in its capacity as the Hypothecary Representative of any deed of hypothec or other security documents made pursuant to the laws of the Province of Quebec, is hereby ratified and confirmed. Any Person who becomes a Secured Party shall be deemed to have consented to and ratified the foregoing appointment of Barclays  as hypothecary representative.. For greater certainty, Barclays, acting as the Hypothecary Representative, shall have the same rights, powers, immunities, indemnities and exclusions from liability as are prescribed in favor of the Administrative Agent and the Collateral Agent in this Agreement, which shall apply mutatis mutandis. In the event of the resignation of the Administrative Agent or the Collateral Agent (which shall include its resignation as the Hypothecary Representative) and appointment of a successor Administrative Agent or Collateral Agent, such successor Administrative Agent or Collateral Agent shall also act as the Hypothecary Representative unless and until a successor hypothecary representative is otherwise appointed.

 

Section 10.26                     Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

205

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i) a reduction in full or in part or cancellation of any such liability;

 

(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

206

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	
 
    	
GFL   ENVIRONMENTAL INC.,
    
	
 
    	
as   the Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to GFL Environmental Term Loan Credit Agreement]

 

 

EXHIBIT B

 

CO-BORROWER JOINDER AGREEMENT

 

[Attached]

 

 

EXHIBIT R

 

CO-BORROWER JOINDER AGREEMENT

 

This Co-Borrower Joinder Agreement is executed as of [  ], 20[ ] by [  ] (the “Co- Borrower”), and delivered to Barclays Bank PLC, as Administrative Agent under the Credit Agreement (as defined below).

 

Reference is made to that certain Term Loan Credit Agreement, dated as of September 30, 2016 (as amended by that certain First Amendment to Credit Agreement, dated as of May 31, 2018, and that certain Second Amendment to Credit Agreement, dated as of November 14, 2018, and as further amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among GFL Environmental Inc., a corporation amalgamated and existing under the laws of Ontario (the “Initial Borrower”), each Lender from time to time party thereto, Barclays Bank PLC., as administrative agent (in such capacity, the “Administrative Agent”), and the other parties thereto from time to time.  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings assigned to such terms in the Credit Agreement.

 

Pursuant to  Section 2.21 of the Credit Agreement, the Initial Borrower wishes to appoint the Co-Borrower as a Co-Borrower for all purposes under the Credit Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the other benefits accruing to the Co-Borrower, the receipt and sufficiency of which are hereby acknowledged, the Co-Borrower hereby represents and warrants to, and covenants and agrees with, the Administrative Agent and the Lenders as follows:

 

1.                                      Joinder as Borrower. By its signature below, the Co-Borrower hereby becomes, from the date hereof, a “Borrower” for all purposes under the Credit Agreement and the other Loan Documents with the same force and effect as if originally named therein as the Initial Borrower, and shall be bound by all of the obligations and shall have all of the rights of the Initial Borrower under the Credit Agreement and the other Loan Documents. Each reference to the “Borrower” in the Credit Agreement and in all of the other Loan Documents shall, from the date hereof, be deemed to include a reference to the Co-Borrower.

 

2.                                      Representations. The Co-Borrower hereby represents and warrants, as of the date hereof, as follows:

 

(a)                                 The execution, delivery and performance by the Co-Borrower of this Co-Borrower Joinder Agreement, and the consummation of the transactions contemplated hereby, (i) are within the Co-Borrower’s powers and (ii) have been duly authorized by all necessary corporate or limited liability company action (as applicable).

 

(b)                                 This Co-Borrower Joinder Agreement has been duly executed and delivered by the Co-Borrower.

 

R-1

 

(c)                                  This Co-Borrower Joinder Agreement is the legal, valid and binding obligation of the Co-Borrower, enforceable against the Co-Borrower in accordance with its terms, except as affected by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

3.                                      Severability.  Any provision of this Co-Borrower Joinder Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

4.                                      Counterparts.  This Co-Borrower Joinder Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed signature page to this Co- Borrower Joinder Agreement by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart of this Co-Borrower Joinder Agreement.

 

5.                                      No Waiver.  Except as expressly supplemented hereby, the Credit Agreement shall remain in full force and effect.

 

6.                                      Notices.  All notices, requests and demands to or upon the Co-Borrower, any Agent or any Lender shall be governed by the terms of Section 10.02 of the Credit Agreement.

 

7.                                      Miscellaneous.  From and after the execution and delivery hereof by the parties hereto, this Co-Borrower Joinder Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement and any other Loan Document.

 

8.                                      Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

[Signature Pages Follow]

 

R-2

 

IN WITNESS WHEREOF, the undersigned have caused this Co-Borrower Joinder Agreement to be duly executed and delivered by their duly authorized officers as of the day and year first above written.

 

	
 
    	
[   ], as   Co-Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
 
    	
BARCLAYS   BANK PLC, as
    
	
 
    	
Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit 10.1

 

EXECUTION VERSION 

 

LOAN FINANCING AND SERVICING AGREEMENT

 

dated as of September 10, 2019

 

GBDC 3 FUNDING LLC,

as Borrower

 

GOLUB CAPITAL BDC 3, INC.,

as Equityholder and as Servicer,

 

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

 

DEUTSCHE BANK AG, NEW YORK BRANCH,

as Facility Agent

 

THE OTHER AGENTS PARTIES HERETO,

 

EACH OF THE ENTITIES FROM TIME TO TIME PARTY
HERETO AS SECURITIZATION SUBSIDIARIES,

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Collateral Agent and as Collateral Custodian

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I	DEFINITIONS	1
	 	 	 
	Section 1.1	Defined Terms	1
	 	 	 
	Section 1.2	Other Definitional Provisions	60
	 	 	 
	Article II	THE FACILITY, ADVANCE PROCEDURES AND NOTES	61
	 	 	 
	Section 2.1	Advances	61
	 	 	 
	Section 2.2	Funding of Advances	62
	 	 	 
	Section 2.3	Notes	64
	 	 	 
	Section 2.4	Repayment and Prepayments	64
	 	 	 
	Section 2.5	Permanent Reduction of Facility Amount	65
	 	 	 
	Section 2.6	Extension of Revolving Period	65
	 	 	 
	Section 2.7	Calculation of Discount Factor	65
	 	 	 
	Section 2.8	Increase in Facility Amount	66
	 	 	 
	Section 2.9	Defaulting Lenders	67
	 	 	 
	Section 2.10	Borrowing Base Deficiency Payments	68
	 	 	 
	Article III	YIELD, UNDRAWN FEE, ETC	69
	 	 	 
	Section 3.1	Yield and Undrawn Fee	69
	 	 	 
	Section 3.2	Yield and Undrawn Fee Distribution Dates	69
	 	 	 
	Section 3.3	[Reserved]	69
	 	 	 
	Section 3.4	Computation of Yield, Fees, Etc	69
	 	 	 
	Article IV	PAYMENTS; TAXES	69
	 	 	 
	Section 4.1	Making of Payments	69
	 	 	 
	Section 4.2	Due Date Extension	70
	 	 	 
	Section 4.3	Taxes	70

 

    -i-

     

    

 

	Article V	INCREASED COSTS, ETC	74
	 	 	 
	Section 5.1	Increased Costs, Capital Adequacy	74
	 	 	 
	Article VI	EFFECTIVENESS; CONDITIONS TO ADVANCES	75
	 	 	 
	Section 6.1	Effectiveness	75
	 	 	 
	Section 6.2	Advances and Reinvestments	77
	 	 	 
	Section 6.3	Transfer of Collateral Obligations and Permitted Investments	80
	 	 	 
	Article VII	ADMINISTRATION AND SERVICING OF COLLATERAL OBLIGATIONS	81
	 	 	 
	Section 7.1	Retention and Termination of the Servicer	81
	 	 	 
	Section 7.2	Resignation and Removal of the Servicer; Appointment of Successor Servicer	81
	 	 	 
	Section 7.3	Duties of the Servicer	82
	 	 	 
	Section 7.4	Representations and Warranties of the Servicer	84
	 	 	 
	Section 7.5	Covenants of the Servicer	86
	 	 	 
	Section 7.6	Servicing Fees; Payment of Certain Expenses by Servicer	89
	 	 	 
	Section 7.7	Collateral Reporting	89
	 	 	 
	Section 7.8	Notices	89
	 	 	 
	Section 7.9	Procedural Review of Collateral Obligations; Access to Servicer and Servicer’s Records	89
	 	 	 
	Article VIII	ACCOUNTS; PAYMENTS	90
	 	 	 
	Section 8.1	Accounts	90
	 	 	 
	Section 8.2	Excluded Amounts	92
	 	 	 
	Section 8.3	Distributions, Reinvestment and Dividends	92
	 	 	 
	Section 8.4	Fees	97
	 	 	 
	Section 8.5	Monthly Report	97

 

    -ii-

     

    

 

	Article IX	REPRESENTATIONS AND WARRANTIES OF EACH LOAN PARTY	97
	 	 	 
	Section 9.1	Organization and Good Standing	97
	 	 	 
	Section 9.2	Due Qualification	97
	 	 	 
	Section 9.3	Power and Authority	98
	 	 	 
	Section 9.4	Binding Obligations	98
	 	 	 
	Section 9.5	Security Interest	98
	 	 	 
	Section 9.6	No Violation	99
	 	 	 
	Section 9.7	No Proceedings	99
	 	 	 
	Section 9.8	No Consents	99
	 	 	 
	Section 9.9	Solvency	99
	 	 	 
	Section 9.10	Compliance with Laws	100
	 	 	 
	Section 9.11	Taxes	100
	 	 	 
	Section 9.12	Monthly Report	100
	 	 	 
	Section 9.13	No Liens, Etc	100
	 	 	 
	Section 9.14	Information True and Correct	101
	 	 	 
	Section 9.15	Bulk Sales	101
	 	 	 
	Section 9.16	Collateral	101
	 	 	 
	Section 9.17	Selection Procedures	101
	 	 	 
	Section 9.18	Indebtedness	101
	 	 	 
	Section 9.19	No Injunctions	101
	 	 	 
	Section 9.20	No Subsidiaries	101
	 	 	 
	Section 9.21	ERISA Matters	101
	 	 	 
	Section 9.22	Investment Company Status	102
	 	 	 
	Section 9.23	Set-Off, Etc	102
	 	 	 
	Section 9.24	Collections	102

 

    -iii-

     

    

 

	Section 9.25	Value Given	102
	 	 	 
	Section 9.26	Use of Proceeds	102
	 	 	 
	Section 9.27	Separate Existence	102
	 	 	 
	Section 9.28	Transaction Documents	103
	 	 	 
	Section 9.29	EEA Financial Institution	103
	 	 	 
	Section 9.30	Anti-Terrorism, Anti-Money Laundering	103
	 	 	 
	Section 9.31	Anti-Bribery and Corruption	104
	 	 	 
	Section 9.32	Volcker Rule	104
	 	 	 
	Section 9.33	AIFMD	104
	 	 	 
	Section 9.34	Optional Sales	105
	 	 	 
	Section 9.35	Repurchase or Substitution of Warranty Collateral Obligations	106
	 	 	 
	Section 9.36	Affiliate Transactions	107
	 	 	 
	Article X	COVENANTS	108
	 	 	 
	Section 10.1	Protection of Security Interest of the Secured Parties	108
	 	 	 
	Section 10.2	Other Liens or Interests	109
	 	 	 
	Section 10.3	Costs and Expenses	109
	 	 	 
	Section 10.4	Reporting Requirements	109
	 	 	 
	Section 10.5	Separate Existence	110
	 	 	 
	Section 10.6	Hedging Agreements	113
	 	 	 
	Section 10.7	Tangible Net Worth	115
	 	 	 
	Section 10.8	Taxes	115
	 	 	 
	Section 10.9	Merger, Consolidation, Etc	115
	 	 	 
	Section 10.10	Deposit of Collections	115
	 	 	 
	Section 10.11	Indebtedness; Guarantees	115
	 	 	 
	Section 10.12	Limitation on Purchases from Affiliates	115

 

    -iv-

     

    

 

	Section 10.13	Transaction Documents	116
	 	 	 
	Section 10.14	Preservation of Existence	116
	 	 	 
	Section 10.15	Limitation on Investments	116
	 	 	 
	Section 10.16	Distributions	116
	 	 	 
	Section 10.17	Performance of Assigned Agreements	117
	 	 	 
	Section 10.18	Further Assurances; Financing Statements	117
	 	 	 
	Section 10.19	Obligor Payment Instructions	118
	 	 	 
	Section 10.20	Delivery of Collateral Obligation Files	118
	 	 	 
	Section 10.21	ERISA	119
	 	 	 
	Section 10.22	Risk Retention	119
	 	 	 
	Section 10.23	Proceedings	121
	 	 	 
	Section 10.24	No REO Assets	121
	 	 	 
	Section 10.25	Policies and Procedures for Sanctions	121
	 	 	 
	Section 10.26	Compliance with Sanctions	121
	 	 	 
	Section 10.27	Compliance with Anti-Money Laundering	121
	 	 	 
	Section 10.28	Ineligible Collateral	121
	 	 	 
	Article XI	THE COLLATERAL AGENT	122
	 	 	 
	Section 11.1	Appointment of Collateral Agent	122
	 	 	 
	Section 11.2	Monthly Reports	122
	 	 	 
	Section 11.3	Collateral Administration	122
	 	 	 
	Section 11.4	Removal or Resignation of Collateral Agent	125
	 	 	 
	Section 11.5	Representations and Warranties	126
	 	 	 
	Section 11.6	No Adverse Interest of Collateral Agent	126
	 	 	 
	Section 11.7	Reliance of Collateral Agent	126
	 	 	 
	Section 11.8	Limitation of Liability and Collateral Agent Rights	127

 

    -v-

     

    

 

	Section 11.9	Tax Reports	129
	 	 	 
	Section 11.10	Merger or Consolidation	129
	 	 	 
	Section 11.11	Collateral Agent Compensation	130
	 	 	 
	Section 11.12	Compliance with Anti-Bribery and Corruption, Anti-Terrorism and Money Laundering Regulations	130
	 	 	 
	Article XII	GRANT OF SECURITY INTEREST	130
	 	 	 
	Section 12.1	Borrower’s Grant of Security Interest	130
	 	 	 
	Section 12.2	Grant of Security Interest of Each Securitization Subsidiary	132
	 	 	 
	Section 12.3	Loan Parties Remain Liable	132
	 	 	 
	Section 12.4	Release of Collateral	132
	 	 	 
	Article XIII	EVENTs OF DEFAULT	134
	 	 	 
	Section 13.1	Events of Default	134
	 	 	 
	Section 13.2	Effect of Event of Default	136
	 	 	 
	Section 13.3	Rights upon Event of Default	137
	 	 	 
	Section 13.4	Collateral Agent May Enforce Claims Without Possession of Notes	138
	 	 	 
	Section 13.5	Collective Proceedings	138
	 	 	 
	Section 13.6	Insolvency Proceedings	138
	 	 	 
	Section 13.7	Delay or Omission Not Waiver	139
	 	 	 
	Section 13.8	Waiver of Stay or Extension Laws	139
	 	 	 
	Section 13.9	Limitation on Duty of Collateral Agent in Respect of Collateral	139
	 	 	 
	Section 13.10	Power of Attorney	140
	 	 	 
	Article XIV	THE FACILITY AGENT	141
	 	 	 
	Section 14.1	Appointment	141
	 	 	 
	Section 14.2	Delegation of Duties	141

 

    -vi-

     

    

 

	Section 14.3	Exculpatory Provisions	141
	 	 	 
	Section 14.4	Reliance by Note Agents	142
	 	 	 
	Section 14.5	Notices	142
	 	 	 
	Section 14.6	Non-Reliance on Note Agents	143
	 	 	 
	Section 14.7	Indemnification	143
	 	 	 
	Section 14.8	Successor Note Agent	144
	 	 	 
	Section 14.9	Note Agents in their Individual Capacity	144
	 	 	 
	Section 14.10	Borrower Agreed-Upon Procedures	144
	 	 	 
	Section 14.11	Compliance with Anti-Bribery and Corruption, Anti-Terrorism and Money Laundering Regulations	144
	 	 	 
	Article XV	ASSIGNMENTS	145
	 	 	 
	Section 15.1	Restrictions on Assignments by the Borrower and the Servicer	145
	 	 	 
	Section 15.2	Documentation	145
	 	 	 
	Section 15.3	Rights of Assignee	145
	 	 	 
	Section 15.4	Assignment by Lenders	145
	 	 	 
	Section 15.5	Registration; Registration of Transfer and Exchange	146
	 	 	 
	Section 15.6	Mutilated, Destroyed, Lost and Stolen Notes	147
	 	 	 
	Section 15.7	Persons Deemed Owners	148
	 	 	 
	Section 15.8	Cancellation	148
	 	 	 
	Section 15.9	Participations; Pledge	148
	 	 	 
	Section 15.10	Reallocation of Advances	149
	 	 	 
	Article XVI	INDEMNIFICATION	149
	 	 	 
	Section 16.1	Borrower Indemnity	149
	 	 	 
	Section 16.2	Servicer Indemnity	150
	 	 	 
	Section 16.3	Contribution	150
	 	 	 
	Section 16.4	After-Tax Basis	151

 

    -vii-

     

    

 

	Article XVII	MISCELLANEOUS	151
	 	 	 
	Section 17.1	No Waiver; Remedies	151
	 	 	 
	Section 17.2	Amendments, Waivers	152
	 	 	 
	Section 17.3	Notices, Etc	152
	 	 	 
	Section 17.4	Costs and Expenses	153
	 	 	 
	Section 17.5	Binding Effect; Survival	153
	 	 	 
	Section 17.6	Captions and Cross References	154
	 	 	 
	Section 17.7	Severability	154
	 	 	 
	Section 17.8	GOVERNING LAW	154
	 	 	 
	Section 17.9	Counterparts	154
	 	 	 
	Section 17.10	WAIVER OF JURY TRIAL	154
	 	 	 
	Section 17.11	No Proceedings	154
	 	 	 
	Section 17.12	Limited Recourse	155
	 	 	 
	Section 17.13	ENTIRE AGREEMENT	156
	 	 	 
	Section 17.14	Confidentiality	156
	 	 	 
	Section 17.15	Non-Confidentiality of Tax Treatment	157
	 	 	 
	Section 17.16	Replacement of Lenders	157
	 	 	 
	Section 17.17	Consent to Jurisdiction	158
	 	 	 
	Section 17.18	Option to Acquire Rating	159
	 	 	 
	Section 17.19	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	159
	 	 	 
	Article XVIII	COLLATERAL CUSTODIAN	159
	 	 	 
	Section 18.1	Designation of Collateral Custodian	159
	 	 	 
	Section 18.2	Duties of the Collateral Custodian	160

 

    -viii-

     

    

 

	Section 18.3	Delivery of Collateral Obligation Files	162
	 	 	 
	Section 18.4	Collateral Obligation File Certification	162
	 	 	 
	Section 18.5	Release of Collateral Obligation Files	163
	 	 	 
	Section 18.6	Examination of Collateral Obligation Files	165
	 	 	 
	Section 18.7	Lost Note Affidavit	165
	 	 	 
	Section 18.8	Transmission of Collateral Obligation Files	166
	 	 	 
	Section 18.9	Merger or Consolidation	166
	 	 	 
	Section 18.10	Collateral Custodian Compensation	166
	 	 	 
	Section 18.11	Removal or Resignation of Collateral Custodian	166
	 	 	 
	Section 18.12	Limitations on Liability	167
	 	 	 
	Section 18.13	Collateral Custodian as Agent of Collateral Agent	169

 

    -ix-

     

    

 

	EXHIBIT A	Form of Note
	EXHIBIT B	Audit Standards
	EXHIBIT C-1	Form of Advance Request
	EXHIBIT C-2	Form of Reinvestment Request
	EXHIBIT C-3	Form of Electronic Asset Approval Request
	EXHIBIT C-4	Form of Prepayment Notice
	EXHIBIT C-5	Form of FX Reallocation Notice
	EXHIBIT C-6	Form of Electronic Asset Approval Notice
	EXHIBIT D	Form of Monthly Report
	EXHIBIT E	Form of Joinder Agreement
	EXHIBIT F-1	Authorized Representatives of Servicer
	EXHIBIT F-2	Request for Release and Receipt
	EXHIBIT F-3	Request for Release of Request for Release and Receipt
	EXHIBIT G-1	U.S. Tax Compliance Certificate (Foreign Lender - non-Partnerships)
	EXHIBIT G-2	U.S. Tax Compliance Certificate (Foreign Participant - non-Partnerships)
	EXHIBIT G-3	U.S. Tax Compliance Certificate (Foreign Participants - Partnerships)
	EXHIBIT G-4	U.S. Tax Compliance Certificate (Foreign Lenders - Partnerships)
	EXHIBIT H	Schedule of Collateral Obligations Certification
	EXHIBIT I	Form of Securitization Subsidiary Joinder
	EXHIBIT J	Form of Borrowing Base Certificate
	 	 
	SCHEDULE 1	Diversity Score Calculation
	SCHEDULE 2	Moody’s Industry Classification Group List
	SCHEDULE 3	Collateral Obligations
	SCHEDULE 4	[Reserved]
	SCHEDULE 5	Approved Valuation Firms
	SCHEDULE 6	S&P Industry Classifications
	 	 
	ANNEX A	Notice Information
	ANNEX B	Commitments

 

    -x-

     

    

 

LOAN FINANCING AND SERVICING AGREEMENT

 

THIS LOAN FINANCING
AND SERVICING AGREEMENT is made and entered into as of September 10, 2019, among GBDC 3 FUNDING LLC, a Delaware limited liability
company (the “Borrower”), GOLUB CAPITAL BDC 3, INC., a Maryland corporation, as equityholder (in such capacity,
together with its successors and permitted assigns in such capacity, the “Equityholder”) and as servicer (in
such capacity, together with its successors and permitted assigns in such capacity, the “Servicer”), each LENDER
(as hereinafter defined) FROM TIME TO TIME PARTY HERETO, the AGENTS for each LENDER GROUP (as hereinafter defined) from time to
time parties hereto (each such party, in such capacity, together with their respective successors and permitted assigns in such
capacity, an “Agent”), EACH OF THE ENTITIES FROM TIME TO TIME PARTY HERETO AS SECURITIZATION SUBSIDIARIES, (each
as hereinafter defined), DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent and Collateral Custodian (each as hereinafter
defined), and DEUTSCHE BANK AG, NEW YORK BRANCH, as Facility Agent (in such capacity, together with its successors and permitted
assigns in such capacity, the “Facility Agent”).

 

RECITALS

 

WHEREAS, the Borrower
desires that each Lender extend financing on the terms and conditions set forth herein and also desires to retain the Servicer
to perform certain servicing functions related to the Collateral Obligations (as defined herein) on the terms and conditions set
forth herein; and

 

WHEREAS, each Lender
desires to extend financing on the terms and conditions set forth herein and the Servicer desires to perform certain servicing
functions related to the Collateral Obligations on the terms and conditions set forth herein.

 

NOW, THEREFORE, based
upon the foregoing Recitals, the premises and the mutual agreements herein contained, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

Article
I

DEFINITIONS

 

Section 1.1           Defined
Terms. As used in this Agreement, the following terms have the following meanings:

 

“1940 Act”
means the Investment Company Act of 1940.

 

“Account”
means the Unfunded Exposure Account, the Principal Collection Account and the Interest Collection Account, together with any sub-accounts
deemed appropriate or necessary by the Securities Intermediary, for convenience in administering such accounts.

 

     

     

    

 

“Account Collateral”
has the meaning set forth in Section 12.1(d).

 

“Account Control
Agreement” means, collectively, (i) the Securities Account Control Agreement, dated as of the Effective Date, by and
among the Borrower, as pledgor, the Collateral Agent on behalf of the Secured Parties, as secured party, and the Collateral Custodian,
as Securities Intermediary and (ii) each Securities Account Control Agreement among the applicable Securitization Subsidiary, the
Collateral Agent and the Collateral Custodian.

 

“Accrual Period”
means, with respect to the first Distribution Date, the period from and including the Effective Date to and including the Determination
Date preceding the first Distribution Date; and thereafter, the period from but excluding the Determination Date preceding the
previous Distribution Date to and including the Determination Date preceding the current Distribution Date, or with respect to
the final Accrual Period, the Facility Termination Date.

 

“Adjusted
Aggregate Eligible Collateral Obligation Balance” means, as of any date, the Aggregate Eligible Collateral Obligation
Amount minus the Excess Concentration Amount on such date.

 

“Advance”
has the meaning set forth in Section 2.1(a).

 

“Advance Date”
has the meaning set forth in Section 2.1(a).

 

“Advance Rate”
means, with respect to any Eligible Collateral Obligation on any date of determination, the corresponding percentage for the type
of Eligible Collateral Obligation (a) that is a First Lien Broadly Syndicated Loan, 75%, (b) that is a First Lien Middle Market
Loan, 75%, (c) that is a Multiple of Recurring Revenue Loan, 70% (or such higher amount as agreed to by the Facility Agent in its
sole discretion) or (d) that is a not a First Lien Loan, 40%.

 

“Advance Request”
has the meaning set forth in Section 2.2(a).

 

“Advances
Outstanding” means, on any date, the sum of (a) the aggregate principal amount of all Dollar Advances outstanding
on such date plus (b) the equivalent in Dollars of the aggregate principal amount of all Advances outstanding in an
Eligible Currency other than Dollars on such date, as determined by the Servicer using the Applicable Conversion Rate, in each
case after giving effect to all repayments of Advances and the making of new Advances on such date.

 

“Adverse Claim”
means any claim of ownership or any Lien, title retention, trust or other charge or encumbrance, or other type of preferential
arrangement having the effect or purpose of creating a Lien, other than Permitted Liens.

 

“Affected
Person” has the meaning set forth in Section 5.1(a).

 

“Affiliate”
means, when used with respect to a 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. For the purposes of this definition, “control,” when
used with respect to any specified Person, means the power to vote more than 50% of the voting securities of such Person or to
direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise; and the term “controlled” has a correlative meaning to the foregoing; provided that
the term Affiliate shall not include any Affiliate relationship which may exist solely as a result of direct or indirect ownership
of, or control by, a common financial sponsor.

 

    	 	-2-	 

     

    

 

“Agent”
has the meaning set forth in the Preamble.

 

“Aggregate
Eligible Collateral Obligation Amount” means, as of any date, the sum of the Collateral Obligation Amounts for all Eligible
Collateral Obligations.

 

“Aggregate
Funded Spread” means, as of any date of determination, the sum of: (a) in the case of each Eligible Collateral Obligation
that bears interest at a spread over a London interbank offered rate based index, (i) the stated interest rate spread on each
such Collateral Obligation above such index multiplied by (ii) the outstanding principal amount of each such Collateral
Obligation, plus (b) in the case of each Eligible Collateral Obligation that bears interest at a spread over an index
other than a London interbank offered rate based index, (A) the excess for each such Collateral Obligation of the sum of such
spread for each such Collateral Obligation and such index for each such Collateral Obligation over the Applicable Interest Rate
for such applicable period of time (which spread or excess may be expressed as a negative percentage) multiplied by (B) the
outstanding principal amount of each such Collateral Obligation plus (c) in the case of each Eligible Collateral Obligation
that is a Fixed Rate Collateral Obligation, (x) the interest rate for such Collateral Obligation minus the then-applicable Applicable
Interest Rate of a period matching the term to maturity of such Collateral Obligation multiplied by (y) the outstanding
principal amount of each such Collateral Obligation. For purposes of calculating the Aggregate Funded Spread, the stated interest
rate of a Deferrable Collateral Obligation will be excluded from such calculation to the extent any Loan Party or the Servicer
has actual knowledge that such payment of interest will not be made by the Obligor thereof during the applicable period or such
payment of interest is not actually paid in cash.

 

“Aggregate
Notional Amount” means, as of any date of determination, an amount equal to the sum of the notional amounts or equivalent
amounts of all outstanding Hedging Agreements, Replacement Hedging Agreements and Qualified Substitute Arrangements, each as of
such date.

 

“Aggregate
Unfunded Amount” means, as of any date of determination, the sum of the unfunded commitments and all other standby or
contingent commitments associated with each Variable Funding Asset included in the Collateral as of such date. The Aggregate Unfunded
Amount shall not include any commitments under Variable Funding Assets that have expired, terminated or been reduced to zero, and
shall be reduced concurrently (and upon notice thereof to the Facility Agent) with each documented reduction in commitments of
the Borrower under such Variable Funding Assets.

 

“Aggregate
Unfunded Equity Amount” means, as of any date of determination, the sum of the Unfunded Exposure Equity Amounts of each
Revolving Loan and Delayed Drawdown Loan included in the Collateral as of such date.

 

    	 	-3-	 

     

    

 

“Agreement”
means this Loan Financing and Servicing Agreement (including each annex, exhibit and schedule hereto).

 

“AIF”
has the meaning given to the term under the AIFMD.

 

“AIFM”
has the meaning given to the term under the AIFMD.

 

“AIFMD”
means Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers
and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No. 1060/2009 and (EU) No. 1095/2010, as the same may be
amended, supplemented, superseded or re-adopted from time to time (whether with or without qualification).

 

“Alternate
Base Rate” means a fluctuating rate per annum as shall be in effect from time to time, which rate shall be at
all times equal to the highest of:

 

(a)          the
rate of interest announced publicly by DBNY in New York, New York, from time to time as DBNY’s base commercial lending rate;

 

(b)          1⁄2
of one percent above the Federal Funds Rate; and

 

(c)          0.

 

“Amount Available”
means, with respect to any Distribution Date, the sum of (a) the amount of Collections with respect to the related Collection
Period (excluding any Collections necessary to settle the acquisition of Eligible Collateral Obligations), plus (b) any
investment income earned on amounts on deposit in the Collection Account since the immediately prior Distribution Date (or since
the Effective Date in the case of the first Distribution Date).

 

“Anti-Bribery
and Corruption Laws” has the meaning set forth in Section 9.31(a).

 

“Anti-Money
Laundering Laws” has the meaning set forth in Section 9.30(b).

 

“Applicable
Banking Law” means, for any Person, all existing and future laws, rules, regulations and executive orders in effect from
time to time applicable to banking institutions, including, without limitation, those relating to anti-bribery and corruption,
the funding of terrorist activities and money laundering, including the Anti-Money Laundering Laws, the U.S. Foreign Corrupt Practices
Act, the U.K. Bribery Act, other applicable anti-bribery and corruption legislation, and Section 326 of the USA Patriot Act.

 

“Applicable
Conversion Rate” means, with respect to an Eligible Currency other than Dollars (x) for an actual currency exchange,
the applicable currency Dollar spot rate obtained by the Servicer or (y) for all other purposes, the applicable currency Dollar
spot rate that appeared on the Bloomberg screen for such currency (i) if such date is a Determination Date, at the end of such
day or (ii) otherwise, (1) other than in connection with the calculation of the Undrawn Fee, at the end of the immediately preceding
Business Day and (2) in connection with the calculation of the Undrawn Fee, the immediately preceding Determination Date.

 

    	 	-4-	 

     

    

 

“Applicable
Exchange Rate” means with respect to any Collateral Obligation denominated and payable in an Eligible Currency other
than Dollars on any day, the lesser of (a) the applicable currency-Dollar spot rate used by the Borrower (as determined by
the Servicer) to acquire such currency on the related Cut-Off Date and (b) the Applicable Conversion Rate for such currency.

 

“Applicable
Interest Rate” means (a) with respect to any Collateral Obligation denominated in CAD, the CDOR Rate, (b) with respect
to any Collateral Obligation denominated in Euro, the EURIBOR Rate, (c) with respect to any Collateral Obligation denominated in
AUD, the BBSW Rate, and (d) with respect to any other Collateral Obligation, the LIBOR Rate.

 

“Applicable
Law” means, for any Person, all existing and future laws, rules, regulations (including temporary and final income tax
regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses of and published interpretations by
any Official Body applicable to such Person and applicable judgments, decrees, injunctions, writs, awards or orders of any court,
arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

 

“Applicable
Margin” means (i) during the Revolving Period, 2.00% per annum and (ii) thereafter, 2.25% per annum; provided
that on and after the occurrence and continuation of any Event of Default and (other than in the case of an Event of Default pursuant
to clauses (a), (d), (e), (f), (j) or (q) of Section 13.1) notice from the Facility Agent to the Borrower, the “Applicable
Margin” shall be increased by 2.00% per annum; provided that upon delivery of such notice (if required), the Applicable
Margin shall be retroactively increased from the date on which such Event of Default occurred.

 

“Appraised
Value” means, with respect to any Asset Based Loan, the most recently calculated appraised value of the pro rata
portion of the underlying collateral securing such Collateral Obligation as determined by an Approved Valuation Firm.

 

“Approved
Broker Dealer” means (a) each of the following entities:  Bank of America, NA, The Bank of Montreal, The Bank of
New York Mellon, N.A., The Bank of Nova Scotia, Barclays Bank plc, BNP Paribas, BTIG, LLC, Cantor Fitzgerald & Co., Citibank,
N.A., Credit Suisse, Deutsche Bank AG, Goldman Sachs & Co., HSBC Bank plc, Imperial Capital LLC, Jefferies & Co., Inc.,
JPMorgan Chase Bank, N.A., Key Bank, N.A., Macquarie Bank, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Bank,
Morgan Stanley & Co., Natixis, Nomura Securities International, Inc., Oppenheimer & Co. Inc., PNC Bank, Royal Bank of Canada,
The Royal Bank of Scotland plc, Seaport Securities Corporation, Societe Generale, Stifel, Nicolaus & Co. Inc., SunTrust Bank,
The Toronto-Dominion Bank, UBS AG, U.S. Bank, National Association and Wells Fargo Bank, National Association (or, in each case,
its principal broker-dealer affiliate); and (b) any other dealer of recognized standing approved by the Facility Agent in its reasonable
discretion at the request of the Servicer.

 

    	 	-5-	 

     

    

 

“Approved
Valuation Firm” means, (i) with respect to any Collateral Obligation, any valuation firm (a) specified on the related
Asset Approval Request or Reinvestment Request and approved by the Facility Agent or (b) otherwise approved in writing by the Facility
Agent in its sole discretion or (ii) with respect to exercise of the Borrower’s dispute right under Section 2.7(c),
each valuation firm identified on Schedule 5 (as such Schedule 5 may be updated from time to time by the Borrower with the prior
written consent of the Facility Agent); provided that no valuation firm may be used as an Approved Valuation Firm if it
is utilized by the Servicer or any of its Affiliates on a regular basis to determine valuations with respect to the Equityholder
or any other entity that is managed by the Equityholder or any of its Affiliates.

 

“Asset Approval
Notice” means an electronic notice containing the information from Exhibit C-6 and that provides the approval
of the Facility Agent, in its sole discretion, to the acquisition (or incremental pledge) of one or more Collateral Obligations.

 

“Asset Approval
Request” means an electronic notice to the Facility Agent in the form of an email that (a) either (i) is in the form
of Exhibit C-3 or (ii) notifies the Facility Agent that the information required by Exhibit C-3 has been posted to
the relevant data site and (b) requests the approval of the Facility Agent, in its sole discretion, (and the Equityholder, if the
Servicer is not an Affiliate of the Equityholder) of one or more Collateral Obligations.

 

“Asset Based
Loan” means any Loan where (i) the underwriting of such Loan was based primarily on the appraised value of the assets
securing such Loan and (ii) advances in respect of such Loan are governed by a borrowing base relating to the assets securing such
Loan.

 

“Assigned
Agreements” has the meaning set forth in Section 12.1(c).

 

“AUD”
means the lawful currency for the time being of Australia.

 

“AUD Advance”
means each Advance made in AUD.

 

“AUD Lender”
means the Persons executing this Agreement (or an assignment hereof in accordance with Article XV) in the capacity
of an “AUD Lender”.

 

“Available
Funds” has the meaning set forth in Section 17.12.

 

“Average Life”
means, as of any day with respect to any Collateral Obligation, the quotient obtained by dividing (i) the sum of the
products of (a) the number of years (rounded up to the nearest one hundredth thereof) from such day to the respective dates
of each successive Scheduled Collateral Obligation Payment of principal on such Collateral Obligation (assuming, for purposes of
this definition, the full exercise of any option to extend the maturity date or otherwise lengthen the maturity schedule that is
exercisable without the consent of the Borrower) multiplied by (b) the respective amounts of principal of such Scheduled
Collateral Obligation Payments by (ii) the sum of all successive Scheduled Collateral Obligation Payments of principal on
such Collateral Obligation.

 

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

 

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

 

    	 	-6-	 

     

    

 

“Bankruptcy
Code” means the United States Bankruptcy Code, 11 U.S.C. § 101, et seq.

 

“Base Rate”
for any Advance means a rate per annum equal to (a) with respect to any Advance denominated in CAD, the CDOR Rate,
(b) with respect to any Advance denominated in Euro, the EURIBOR Rate, (c) with respect to any Advance denominated in AUD, the
BBSW Rate, and (d) with respect to any other Advance, the LIBOR Rate for such Advance or portion thereof; provided, that
in the case of

 

(a)          any
day on or after the first day on which a Committed Lender shall have notified the Facility Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other Official Body asserts
that it is unlawful, for such Committed Lender to fund such Advance at the Base Rate set forth above (and such Committed Lender
shall not have subsequently notified the Facility Agent that such circumstances no longer exist), or

 

(b)          any
period in the event the LIBOR Rate is not reasonably available to any Lender for such period,

 

the “Base Rate” shall
be a floating rate per annum equal to the Alternate Base Rate in effect on each day of such period.

 

“Basel III
Regulation” means, with respect to any Affected Person, any rule, regulation or guideline applicable to such Affected
Person and arising directly or indirectly from (a) any of the following documents prepared by the Basel Committee on Banking Supervision
of the Bank of International Settlements: (i) Basel III: International Framework for Liquidity Risk Measurement, Standards and
Monitoring (December 2010), (ii) Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems (June 2011),
(iii) Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools (January 2013), or (iv) any document supplementing,
clarifying or otherwise relating to any of the foregoing, or (b) any accord, treaty, statute, law, rule, regulation, guideline
or pronouncement (whether or not having the force of law) of any governmental authority implementing, furthering or complementing
any of the principles set forth in the foregoing documents of strengthening capital and liquidity, in each case as from time to
time amended, restated, supplemented or otherwise modified. Without limiting the generality of the foregoing, “Basel III
Regulation” shall include Part 6 of the European Union regulation 575/2013 on prudential requirements for credit institutions
and investment firms (the “CRR”) and any law, regulation, standard, guideline, directive or other publication
supplementing or otherwise modifying the CRR.

 

    	 	-7-	 

     

    

 

 

“BBSW Rate”
means, for any day during the Accrual Period, the greater of (a) 0.0% and (b) the average rate per annum (rounded upward, if necessary,
to the nearest 1/100 of 1%) applicable to bankers’ acceptances for a term equivalent to three (3) months appearing on the
Bloomberg Professional Service (or any successor thereto) BBSW Screen Rate as of 10:00 a.m. (Sydney, Australia time), on such day,
or if such date is not a Business Day, then on the immediately preceding Business Day; provided, however, if such
rate does not appear on the Bloomberg Professional Service (or any successor thereto) BBSW Screen Rate as contemplated, then the
BBSW Rate on any date shall be calculated as the arithmetic mean of the rates of interest quoted as of 10:00 a.m. (Sydney, Australia
time) on such day by the Facility Agent on the basis of the discount amount at which the Facility Agent is then offering to purchase
AUD denominated bankers’ acceptances that have a comparable aggregate face amount to the Advances outstanding in AUD and
the same term to maturity as three (3) months, or if such date is not a Business Day, then on the immediately preceding Business
Day. Notwithstanding the foregoing, if the BBSW Rate ceases to exist or is reasonably expected to cease to exist within the succeeding
three (3) months, the Borrower, the Servicer and the Facility Agent may (and such parties will reasonably cooperate with each other
in good faith in order to) amend this Agreement to replace references herein to the BBSW Rate (and any associated terms and provisions)
with any alternative floating reference rate (and any associated terms and provisions) that is then being generally used in Australian
credit markets for similar types of facilities (including collateralized loan obligation transactions).

 

“BDC Parent”
means Golub Capital BDC 3, Inc., in its capacity as a holder of membership interests in the Borrower.

 

“BDC Tax Distribution”
means any distribution made by the Loan Party (i) to allow BDC Parent to pay any unpaid Taxes then due and owing resulting from
the income of the Loan Party claimed on the tax reporting of BDC Parent or (ii) to the extent necessary to allow BDC Parent to
make sufficient distributions to qualify as a regulated investment company under the Code and to otherwise minimize or eliminate
federal or state income or excise taxes payable by BDC Parent in or with respect to any taxable year of BDC Parent (or any calendar
year, as relevant).

 

“Beneficial
Ownership Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation,
which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners
of Legal Entity Customers published in May 2018 to comply with the Financial Crimes Enforcement Network customer due diligence
rules.

 

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

 

“Benefit Plan
Investor” means (a) any “employee benefit plan” (as defined in Section 3(3) of Title I of ERISA) that is
subject to the fiduciary responsibility provisions of Title I of ERISA, (b) any “plan” as defined in Section 4975(e)
of the Code that is subject to Section 4975 of the Code, (c) any governmental or other plan or arrangement that is not subject
to ERISA or to Section 4975 of the Code but is subject to any law or restriction substantially similar to Section 406 of ERISA
or Section 4975 of the Code or (d) any entity whose underlying assets include “plan assets” of the foregoing employee
benefit plans or plans (within the meaning of the DOL Regulations or otherwise).

 

“Borrower”
has the meaning set forth in the Preamble.

 

“Borrower
Assigned Agreements” has the meaning set forth in Section 12.1(c).

 

    	 	-8-	 

     

    

 

“Borrowing
Base” means, as of any date of determination, the sum of (i) the product of the lower of (a) the Weighted Average Advance
Rate and (b) the Maximum Portfolio Advance Rate multiplied by the Adjusted Aggregate Eligible Collateral Obligation Balance
plus (ii) the equivalent in Dollars of the amount of Principal Collections on deposit in the Principal Collection Account
minus (iii) the Revolving Liquidity Adjustment Amount plus (iv) the amount on deposit in the Unfunded Exposure Account;
provided that any Collateral Obligation (or portion thereof) which is owned by a Securitization Subsidiary which has closed
a Securitization and has been released from all Transaction Documents shall not be included in the calculation of “Borrowing
Base”.

 

“Borrowing
Base Certificate” means a certificate setting forth the calculation of the Borrowing Base as of the applicable date of
determination substantially in the form of Exhibit J hereto, prepared by the Servicer.

 

“Borrowing
Base Deficiency” means, as of any date of determination, an amount equal to, with respect to the Borrowing Base, the
greater of (i) zero and (ii) the difference of the aggregate Advances Outstanding on such date over the Borrowing Base.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which banking institutions in New York, New York or
the city in which the offices of the Collateral Agent or Collateral Custodian are located are authorized or obligated by law, executive
order or government decree to remain closed; provided that the term “Business Day” shall also exclude any day
on which banks are not open for dealings (i) in Dollar or GBP deposits in the London interbank market (when used in connection
with the LIBOR Rate), (ii) in Euro deposits in the Euro-zone interbank market (when used in connection with the EURIBOR Rate),
(iii) in AUD deposits in Sydney, Australia (when used in connection with the BBSW Rate) or (iv) in CAD deposits in Toronto, Canada
(when used in connection with the CDOR Rate). All references to any “day” or any particular day of any “calendar
month” shall mean calendar day unless otherwise specified.

 

“CAD”
means the lawful currency of Canada.

 

“CAD Advance”
means each Advance made in CAD.

 

“CAD Lender”
means the Persons executing this Agreement (or an assignment hereof in accordance with Article XV) in the capacity of a
“CAD Lender”.

 

“Capital Lease
Obligations” means, with respect to any entity, the obligations of such entity to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations
are required to be classified and accounted for as capital leases on a balance sheet of such entity under GAAP, and the amount
of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Capped Fees/Expenses”
means, at any time, the Collateral Agent Fees and Expenses and the Collateral Custodian Fees and Expenses, in an aggregate amount
not to exceed $100,000 in any calendar year.

 

    	 	-9-	 

     

    

 

“Cause”
means, with respect to an Independent Member, (i) acts or omissions by such Independent Member that constitute willful disregard
of such Independent Member’s duties as set forth in the Borrower’s Constituent Documents, (ii) that such Independent
Member has engaged in or has been charged with, or has been convicted of, fraud or other acts constituting a crime under any law
applicable to such Independent Member, (iii) that such Independent Member is unable to perform his or her duties as Independent
Member due to death, disability or incapacity, or (iv) that such Independent Member no longer meets the definition of “Independent
Member”.

 

“CDOR Rate”
means, for any day during the Accrual Period, the greater of (a) 0.0% and (b) the average rate per annum (rounded upward, if necessary,
to the nearest 1/100 of 1%) applicable to bankers’ acceptances for a term equivalent to three (3) months appearing on the
Bloomberg Professional Service (or any successor thereto) CDOR Screen Rate as of 10:00 a.m. (Toronto time), on such day, or if
such date is not a Business Day, then on the immediately preceding Business Day; provided, however, if such rate
does not appear on the Bloomberg Professional Service (or any successor thereto) CDOR Screen Rate as contemplated, then the CDOR
Rate on any date shall be calculated as the arithmetic mean of the rates of interest quoted as of 10:00 a.m. (Toronto time) on
such day by the Facility Agent on the basis of the discount amount at which the Facility Agent is then offering to purchase CAD
denominated bankers’ acceptances that have a comparable aggregate face amount to the Advances outstanding in CAD and the
same term to maturity as three (3) months, or if such date is not a Business Day, then on the immediately preceding Business Day.
Notwithstanding the foregoing, if the CDOR Rate ceases to exist or is reasonably expected to cease to exist within the succeeding
three (3) months, the Borrower, the Servicer and the Facility Agent may (and such parties will reasonably cooperate with each other
in good faith in order to) amend this Agreement to replace references herein to the CDOR Rate (and any associated terms and provisions)
with any alternative floating reference rate (and any associated terms and provisions) that is then being generally used in Canadian
credit markets for similar types of facilities (including collateralized loan obligation transactions).

 

“Change of
Control” means the occurrence and continuation of any of the following: (a) the management agreement between GC Advisors
LLC and Golub Capital BDC 3, Inc. (or any successor thereof) shall fail to be in full force and effect; (b) the creation or imposition
of any Lien on any limited liability company membership interest in the Borrower; (c) the failure by the Equityholder to own 100%
of the limited liability company membership interests in the Borrower; or (d) the dissolution, termination or liquidation (which
shall not include a merger in accordance with Section 7.5(i)) in whole or in part, transfer or other disposition, in each
case, of all or substantially all of the assets of, Golub Capital BDC 3, Inc.

 

“Charges”
means (i) all federal, state, county, city, municipal, local, foreign or other governmental Taxes (including Taxes owed to
the PBGC at the time due and payable); (ii) all levies, assessments, charges, or claims of any governmental entity or any
claims of statutory lienholders, the nonpayment of which could give rise by operation of law to a Lien on the Collateral Obligations
or any other property of the Borrower and (iii) any such taxes, levies, assessment, charges or claims which constitute a Lien
or encumbrance on any property of the Borrower.

 

“Code”
means the Internal Revenue Code of 1986.

 

    	 	-10-	 

     

    

 

“Collateral”
has the meaning set forth in Section 12.2.

 

“Collateral
Agent” means Deutsche Bank Trust Company Americas, solely in its capacity as collateral agent hereunder, together with
its successors and permitted assigns in such capacity.

 

“Collateral
Agent and Collateral Custodian Fee Letter” means that certain letter agreement among the Collateral Agent, the Collateral
Custodian and the Borrower and hereby acknowledged by the Servicer and the Facility Agent.

 

“Collateral
Agent Fees and Expenses” has the meaning set forth in Section 11.11.

 

“Collateral
Custodian” means Deutsche Bank Trust Company Americas, solely in its capacity as collateral custodian, together with
its successors and permitted assigns in such capacity.

 

“Collateral
Custodian Fees and Expenses” has the meaning set forth in Section 18.10.

 

“Collateral
Database” has the meaning set forth in Section 11.3(a)(i).

 

“Collateral
Obligation” means a Loan or a Participation Interest owned by the Borrower or a Securitization Subsidiary, excluding
the Retained Interest thereon.

 

“Collateral
Obligation Amount” means for any Collateral Obligation, as of any date of determination, an amount equal to the product
of (i) the Discount Factor of such Collateral Obligation at such time multiplied by (ii) the Principal Balance of such Collateral
Obligation at such time; provided, that if the Effective LTV of any Asset Based Loan exceeds (as of such date of determination)
the limit for the applicable Loan type set forth below, then the Principal Balance component of “Collateral Obligation Amount”
of such Collateral Obligation will be automatically (and without any action by the Facility Agent) reduced by the amount necessary
to cause such Collateral Obligation to comply with the applicable limit set forth below:

 

	Asset
    Based Loan Type (by collateral source)	 	Effective
    LTV Limit
	working
    capital	 	90%
	fixed
    assets	 	75%
	intellectual
    property	 	60%

 

The Collateral Obligation
Amount of any Collateral Obligation that ceases to be or otherwise is not an Eligible Collateral Obligation shall be zero.

 

“Collateral
Obligation File” means, with respect to each Collateral Obligation as identified on the related Document Checklist, in
each case in English, (i)(A) if the Collateral Obligation includes a note, (x) an original, executed copy of the related promissory
note, or (y) in the case of a lost promissory note, a copy of the executed underlying promissory note accompanied by an original
executed affidavit and indemnity endorsed by the Borrower or the prior holder of record either in blank or to the Collateral Agent,
in each case with respect to clause (x) or clause (y) with an unbroken chain of endorsements from each prior holder of such promissory
note to the Borrower or to the Collateral Agent, or in blank, or (B) in the case of a noteless Collateral Obligation, a copy
of each executed document or instrument evidencing the assignment of such Collateral Obligation to the Borrower, (ii) paper
or electronic copies of the related loan agreement, guaranty, security agreement, intercreditor agreement or any other material
agreement (as determined by the Servicer in its reasonable discretion), (iii) paper or electronic copies of the file-stamped
(or the electronic equivalent of) UCC financing statements and continuation statements (including amendments or modifications thereof)
authorized by the Obligor thereof or by another Person on the Obligor’s behalf in respect of such Collateral Obligation or
evidence that such financing statements have been submitted for filing, in each case only to the extent reasonably available to
the Servicer, and (iv) any other document included on the related Document Checklist that is reasonably requested by any Agent
and reasonably available to the Servicer.

 

    	 	-11-	 

     

    

 

“Collateral
Obligation Schedule” means the list of Collateral Obligations set forth on Schedule 3, as the same may be
updated by the Borrower (or the Servicer on behalf of the Borrower) from time to time.

 

“Collateral
Quality Tests” means, collectively or individually as the case may be, the Minimum Diversity Test, the Minimum Weighted
Average Spread Test, the Minimum Weighted Average Coupon Test and the Maximum Weighted Average Life Test; provided that
none of the foregoing tests shall be applicable until the date that is 120 days after the Effective Date.

 

“Collection
Account” means, collectively, the Principal Collection Account and the Interest Collection Account.

 

“Collection
Period” means, with respect to the first Distribution Date, the period from and including the Effective Date to and including
the Determination Date preceding the first Distribution Date; and thereafter, the period from but excluding the Determination Date
preceding the previous Distribution Date to and including the Determination Date preceding the current Distribution Date, or with
respect to the final Collection Period, the Facility Termination Date.

 

“Collections”
means the sum of all Interest Collections and all Principal Collections received with respect to the Collateral.

 

“Commercial
Paper Rate” for Advances means, to the extent a Conduit Lender funds such Advances by issuing commercial paper, the sum
of (i) the weighted average of the rates at which commercial paper notes of such Conduit Lender issued to fund such Advances
(which shall include commissions of placement agents and dealers, incremental carrying costs incurred with respect to its commercial
paper maturing on dates other than those on which corresponding funds are received by the Conduit Lender and costs or other borrowings
by the Conduit Lender (other than under any related support facility)) may be sold by any placement agent or commercial paper dealer
selected by such Conduit Lender, as agreed in good faith between each such agent or dealer and such Conduit Lender; provided,
that if the rate (or rates) as agreed between any such agent or dealer and such Conduit Lender for any Advance is a discount rate
(or rates), then such rate shall be the rate (or if more than one rate, the weighted average of the rates) resulting from converting
such discount rate (or rates) to an interest-bearing equivalent rate per annum plus, without duplication (ii) any and all
reasonable costs and expenses of any issuing and paying agent or other Person responsible for the administration of such Conduit
Lender’s commercial paper program in connection with the preparation, completion, issuance, delivery or payment of commercial
paper issued to fund the making or maintenance of any Advance. Each Conduit Lender shall notify the Facility Agent and the Borrower
of its Commercial Paper Rate applicable to any Advance promptly after the determination thereof.

 

    	 	-12-	 

     

    

 

“Commitment”
means, for each Committed Lender, (a) prior to the Facility Termination Date, the commitment of such Committed Lender to make
Advances to the Borrower in an amount not to exceed, in the aggregate, the amount set forth opposite such Committed Lender’s
name on Annex B or on Schedule I to the Joinder Agreement related to such Committed Lender as delivered pursuant to Article XV
(as such Commitment may be reduced as set forth in Section 2.5 or increased as set forth in Section 2.8), and
(b) on and after the earlier to occur of (i) the Facility Termination Date and (ii) the end of the Revolving Period,
such Committed Lender’s pro rata share of all Advances Outstanding.

 

“Committed
Lenders” means, for any Lender Group, the Person(s) executing this Agreement in the capacity of a “Committed Lender”
for such Lender Group (or an assignment hereof or a Joinder Agreement in accordance with Article XV) in accordance with
the terms of this Agreement.

 

“Conditional
Ramp-Up Period” means any period (a) beginning on the date that Eligible Collateral Obligations have paid in full (and
not sold, repurchased or substituted) in an amount (calculated as the aggregate Principal Balance of such Eligible Collateral Obligations)
at least equal to 40% of the highest aggregate Principal Balance of all Collateral Obligations at any time during the preceding
12 calendar months and (b) ending three (3) months thereafter; provided that no Conditional Ramp-Up Period shall occur prior
to the one-year anniversary of the Effective Date.

 

“Conduit Advance
Termination Date” means, with respect to a Conduit Lender, the date of the delivery by such Conduit Lender to the Borrower
of written notice that such Conduit Lender elects, in its sole discretion, to permanently cease funding Advances hereunder.

 

“Conduit Lender”
means any Person that shall become a party to this Agreement in the capacity as a “Conduit Lender” and any assignee
of any of the foregoing.

 

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that
are franchise Taxes or branch profits Taxes.

 

“Constituent
Documents” means, for any Person, its constituent or organizational documents, including: (a) in the case of any
limited partnership, joint venture, trust or other form of business entity, the limited partnership agreement, joint venture agreement,
articles of association or other applicable certificate or agreement of registration or formation and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation with the secretary of state or other department in
the state or jurisdiction of its formation; (b) in the case of any limited liability company, the certificate or articles
of formation and operating agreement for such Person; (c) in the case of a corporation or exempted company, the certificate
or articles of incorporation or association and the bylaws for such Person or its memorandum and articles of association; and (d) in
the case of any trust, the trust deed, declaration of trust or equivalent establishing such trust.

 

    	 	-13-	 

     

    

 

“Corporate
Trust Office” means the applicable designated corporate trust office of the Collateral Agent or the Collateral Custodian,
as applicable, specified on Annex A hereto, or such other address within the United States as it may designate from time
to time by notice to the Facility Agent.

 

“Cost of Funds
Rate” means, for any Accrual Period and any Lender, the rate determined as set forth below:

 

(a)          with
respect to each Conduit Lender and each day of such Accrual Period, such Conduit Lender’s Commercial Paper Rate for such
day; provided that if and to the extent that, and only for so long as, a Conduit Lender at any time determines in good faith
that it is unable to raise or is precluded or prohibited from raising, or that it is not advisable to raise, funds through the
issuance of commercial paper notes in the commercial paper market of the United States to finance its making or maintenance of
its portion of any Advance or any portion thereof (which determination may be based on any allocation method employed in good faith
by such Conduit Lender), upon notice from such Conduit Lender to the Agent for its Lender Group and the Facility Agent, such Conduit
Lender’s portion of such Advance shall bear interest at a rate per annum equal to the Alternate Base Rate; and

 

(b)          with
respect to each Committed Lender, the Base Rate.

 

“Critical
Component” means, in respect of a weapons system referred to in the definition of Prohibited Defense Asset, a component
used specifically in the production of the weapon system or plays a direct role in the lethality of the weapon system.

 

“Cure Notice”
means a notice from the Borrower to the Facility Agent and each Agent which sets forth a written report showing a projected cure
of any Borrowing Base Deficiency or satisfaction of the Minimum Equity Condition, as applicable, based on repaying Advances
Outstanding, selling Collateral Obligations and depositing the proceeds of such sale into the Collection Account or Unfunded Exposure
Account, as applicable, or transferring additional Eligible Collateral Obligations, cash or Permitted Investments to the Principal
Collection Account so that the Borrowing Base Deficiency will be reduced to zero or the Minimum Equity Condition will be satisfied,
as applicable, which report shall (1) be satisfactory to the Facility Agent, (2) give effect to all committed purchases
of Collateral Obligations and other financial assets by the Borrower and account in a manner satisfactory to the Facility Agent
for any change in the market value of any such Collateral Obligation and (3) give effect to sales of Collateral Obligations
(including sales committed to on the date of such report) only if such sales are to Approved Broker Dealers or Affiliates of the
Borrower at arm’s-length and for fair market value and Borrower reasonably expects such sales to be settled within 5 Business
Days of the Borrower’s commitment to such sale.

 

“Cut-Off Date”
means, with respect to each Collateral Obligation, the later of (a) the date such Collateral Obligation becomes part of the Collateral
and (b) the date on which a new Asset Approval Request is delivered to the Facility Agent and the Facility Agent re-approves such
Collateral Obligation (in its sole discretion).

 

    	 	-14-	 

     

    

 

“DBNY”
means Deutsche Bank AG, New York Branch, and its successors.

 

“Debt-to-Recurring-Revenue
Ratio” means, with respect to any Multiple of Recurring Revenue Loan for any period, the meaning of “Debt-to-Recurring
Revenue Ratio” or any comparable definition in the Underlying Instruments for each Loan, and in any case that “Debt-to-Recurring
Revenue Ratio” or such comparable definition is not defined in such Underlying Instruments, the ratio of (a) Indebtedness
of the related Obligor less Unrestricted Cash, to (b) recurring revenue, as calculated by the Servicer in accordance with
the Servicing Standard using information from and calculations consistent with the relevant compliance statements and financial
reporting packages provided by the relevant Obligor as per the requirements of the related Underlying Instruments; provided
that, in the event of a lack of any such information necessary to calculate the Debt-to-Recurring Revenue Ratio, a Revaluation
Event shall occur as set forth in the definition thereof.

 

“Defaulted
Collateral Obligation” means any Collateral Obligation as to which any one of the following events has occurred:

 

(a)          any
Scheduled Collateral Obligation Payment or part thereof is unpaid more than two (2) Business Days beyond the grace period (if any)
permitted by the related Underlying Instrument;

 

(b)          an
Insolvency Event occurs with respect to the Obligor thereof, unless the related Loan is a DIP Loan;

 

(c)          the
occurrence of a default as to the payment of principal, interest and/or unutilized/commitment fees (as applicable) has occurred
and is continuing (for more than two (2) Business Days beyond the grace period (if any) permitted by the related Underlying Instrument)
with respect to another debt obligation of the same Obligor secured by the same collateral which is either full recourse or senior
to or pari passu with in right of payment to such Collateral Obligation;

 

(d)          [reserved];

 

(e)          [reserved];

 

(f)          a
Responsible Officer of the Servicer or the Borrower has received written notice or has actual knowledge that a default has occurred
under the Underlying Instruments, any applicable grace period has expired and the holders of such Collateral Obligation have accelerated
the repayment of such Collateral Obligation (but only until such default is cured or waived) in the manner provided in the Underlying
Instruments;

 

(g)          [reserved];
or

 

    	 	-15-	 

     

    

 

(h)          (i)
the Servicer determines, in its sole discretion, in accordance with the Servicing Standard, that all or a material portion of such
Collateral Obligation is not collectible or otherwise places such Collateral Obligation on non-accrual status or (ii) the Borrower
or the Equityholder makes a realized loss or write-down on such Collateral Obligation in the Borrower’s or the Equityholder’s
financial statements.

 

“Defaulting
Lender” means any Lender that (i) has failed to fund any portion of the Advances required to be funded by it hereunder
within one Business Day of the date required to be funded by it hereunder, (ii) has otherwise failed to pay over to the Facility
Agent, the Collateral Custodian or any other Lender any other amount required to be paid by it hereunder within three Business
Days of the date when due, unless such amount is the subject of a good faith dispute, (iii) has notified the Borrower, the Servicer,
the Facility Agent, the Collateral Custodian or any Agent that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does not intend to comply or has failed to comply with
its funding obligations under this Agreement or generally under other agreements in which it commits or is obligated to extend
credit, (iv) has failed, within one Business Day after request by the Facility Agent, to confirm that it will comply with the terms
of this Agreement relating to its obligations to fund Advances under this Agreement or (v) has (or has a parent company that has)
become or is insolvent or has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment.

 

“Deferrable
Collateral Obligation” means a Collateral Obligation that by its terms permits the deferral or capitalization of payment
of accrued and unpaid interest.

 

“Delayed Drawdown
Loan” means a Collateral Obligation that (a) permits the related Obligor to request one or more future advances thereunder,
(b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates, and (c) does not permit the re-borrowing
of any amount previously repaid by the Obligor thereunder; provided, that any such Collateral Obligation will be a Delayed
Drawdown Loan only until all commitments by the Borrower to make advances to such Obligor expire, are terminated or are otherwise
irrevocably reduced to zero and only to the extent of such unfunded commitments.

 

“Determination
Date” means, with respect to any Reporting Date, the tenth Business Day prior to such Reporting Date.

 

“DIP Loan”
means any Loan (a) with respect to which the related Obligor is a debtor-in-possession as defined under the Bankruptcy Code, (b)
which has the priority allowed pursuant to Section 364 of the Bankruptcy Code and (c) the terms of which have been approved by
a court of competent jurisdiction.

 

“Discount
Factor” means, with respect to each Collateral Obligation and as of any date of determination, the value (expressed as
a percentage of par) of such Collateral Obligation as determined by the Facility Agent in its sole discretion in accordance with
Section 2.7.

 

“Disqualified
Institution” means any financial institution, fund or Person (other than a bank or insurance company) that, in each case
is primarily engaged in the business of originating or acquiring middle market loans (including with respect to acting in an advisory
or management capacity with respect to any fund that originates or acquires middle market loans).

 

    	 	-16-	 

     

    

 

“Distribution
Date” means the 25th calendar day of January, April, July and October or if such date is not a Business Day,
the next succeeding Business Day, commencing in January 2020; provided that the final Distribution Date shall occur on the
Facility Termination Date.

 

“Diversity
Score” means, as of any day, a single number that indicates collateral concentration in terms of both issuer and industry
concentration, calculated as set forth in Schedule 1 hereto, as such diversity scores shall be updated as required
by an Official Body and as applied to other similarly situated borrowers.

 

“Document
Checklist” means an electronic or hard copy list delivered by the Borrower (or by the Servicer on behalf of the Borrower)
to the Collateral Custodian that identifies the applicable documents that have been included in each Collateral Obligation File
(including the name of the Obligor with respect to such Collateral Obligation).

 

“DOL Regulations”
means regulations promulgated by the U.S. Department of Labor at 29 C.F.R. § 2510.3 101, as modified by Section 3(42) of ERISA,
and at 29 C.F.R. § 2550.401c-1.

 

“Dollar(s)”
and the sign “$” mean lawful currency of the United States of America.

 

“Dollar Advance”
means each Advance made in Dollars.

 

“Dollar Lender”
means the Persons executing this Agreement (or an assignment or participation hereof in accordance with Article XV) in the
capacity of a “Dollar Lender”.

 

“Domicile”
or “Domiciled” means, with respect to any Obligor with respect to, or issuer of, a Collateral Obligation: (a)
its country of organization; (b) if it is organized in a Tax Jurisdiction, each of such jurisdiction and the country in which,
in the Servicer’s good faith estimate, a substantial portion of its operations are located or from which a substantial portion
of its revenue is derived, in each case directly or through subsidiaries (which shall be any jurisdiction and country known at
the time of designation by the Servicer to be the source of the majority of revenues, if any, of such Obligor or issuer) or (c) if
its payment obligations in respect of such Collateral Obligation are guaranteed by a person or entity that is organized in the
United States or Canada, then the United States or Canada.

 

“EBITDA”
means, with respect to any period and any Collateral Obligation, the meaning of “EBITDA,” “Adjusted EBITDA”
or any comparable definition in the Underlying Instruments for each such Collateral Obligation. In any case that “EBITDA,”
“Adjusted EBITDA” or such comparable definition is not defined in such Underlying Instruments, an amount, for the related
Obligor and any of its parents or Subsidiaries that are obligated with respect to such Collateral Obligation pursuant to its Underlying
Instruments (determined on a consolidated basis without duplication in accordance with GAAP) equal to earnings from continuing
operations for such period plus interest expense, income taxes, depreciation, amortization and, to the extent approved by the Facility
Agent on a Collateral Obligation by Collateral Obligation basis, any other non-cash charges and organization costs deducted in
determining earnings from continuing operations for such period, and, to the extent approved by the Facility Agent on a Collateral
Obligation by Collateral Obligation basis, costs and expenses reducing earnings and other extraordinary non-recurring costs and
expenses for such period (to the extent deducted in determining earnings from continuing operations for such period).

 

    	 	-17-	 

     

    

 

“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, 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” has the meaning set forth in Section 6.1.

 

“Effective
Equity” means, as of any day, the greater of (x) the Adjusted Aggregate Eligible Collateral Obligation Balance plus
the amount of Principal Collections on deposit in the Principal Collection Account minus the Advances Outstanding and
(y) $0.

 

“Effective
Loan Level LTV” means, with respect to any Enterprise Value Loan as of the related Cut-Off Date, the result of the calculation,
made in good faith, pursuant to the applicable definition for such Enterprise Value Loan in the Servicer’s investment committee
memo.

 

“Effective
LTV” means, with respect to any Asset Based Loan as of any date of determination, the result, expressed as a percentage,
of (i) the Principal Balance of such Collateral Obligation divided by (ii) the Appraised Value of such Collateral Obligation
as of such date.

 

“Eligible
Account” means (i) a segregated trust account or (ii) a segregated direct deposit account (in each case, which
may include sub-accounts, including a principal collection sub-account and an interest collection sub-account), in each case, maintained
with a securities intermediary or trust company organized under the laws of the United States of America, or any of the States
thereof, or the District of Columbia, having a certificate of deposit, short term deposit or commercial paper rating of at least
A-1 by Standard & Poor’s and P-1 by Moody’s. In either case, such depository institution or trust company shall
have been approved by the Facility Agent and the Servicer. Notwithstanding the foregoing requirements, DBNY and Deutsche Bank Trust
Company Americas are deemed to be acceptable securities intermediaries to the Facility Agent and accounts maintained at either
DBNY or Deutsche Bank Trust Company Americas are deemed to be Eligible Accounts.

 

    	 	-18-	 

     

    

 

“Eligible
Collateral Obligation” means, on any Measurement Date, each Collateral Obligation that satisfies the following conditions
(unless otherwise waived by the Facility Agent in its sole discretion in the related Asset Approval Notice):

 

(a)          unless
such Collateral Obligation is, as of the related Cut-Off Date, a Specified First Lien Loan, the Facility Agent in its sole discretion
has delivered an Asset Approval Notice with respect to such Collateral Obligation;

 

(b)          as
of the related Cut-Off Date such Collateral Obligation is not a Defaulted Collateral Obligation;

 

(c)          such
Collateral Obligation is not an Equity Security and is not convertible into an Equity Security;

 

(d)          such
Collateral Obligation is not a Structured Finance Obligation;

 

(e)          such
Collateral Obligation is denominated in an Eligible Currency and is not convertible by the Obligor thereof into any currency other
than such Eligible Currency;

 

(f)          such
Collateral Obligation is not a single-purpose real estate based loan (unless the related real estate is a hotel, casino or other
operating company), a construction loan or a project finance loan;

 

(g)          such
Collateral Obligation is not a lease (including a financing lease);

 

(h)          as
of the related Cut-Off Date, if such Collateral Obligation is a Deferrable Collateral Obligation, it provides for periodic payments
of interest thereon in cash no less frequently than semi-annually and the portion of interest required to be paid in cash under
the terms of the related Underlying Instruments results in the outstanding principal amount of such Collateral Obligation having
an effective rate of current interest paid in cash on such day of not less than (i) if such Deferrable Collateral Obligation is
a Fixed Rate Collateral Obligation, 2.5% per annum over the LIBOR Rate or (ii) otherwise, 2.5% per annum over the applicable index
rate;

 

(i)          [reserved];

 

(j)          such
Collateral Obligation is not incurred or issued in connection with a merger, acquisition, consolidation, sale of all or substantially
all of the assets of a Person, restructuring or similar transaction, which obligation or security by its terms is required to be
repaid within one year of the incurrence thereof with proceeds from additional borrowings or other refinancings (other than any
additional borrowing or refinancing if one or more financial institutions has provided the issuer of such obligation or security
with a binding written commitment to provide the same, so long as (i) such commitment is equal to the outstanding principal
amount of such Collateral Obligation and (ii) such committed replacement facility has a maturity of at least one year and
cannot be extended beyond such one year maturity pursuant to the terms thereof);

 

    	 	-19-	 

     

    

 

(k)          such
Collateral Obligation is not a trade claim and the value of such Collateral Obligation is not primarily derived from an insurance
policy;

 

(l)          such
Collateral Obligation is not a bond or a Floating Rate Note;

 

(m)          the
Obligor with respect to such Collateral Obligation is an Eligible Obligor;

 

(n)          such
Collateral Obligation is not a purpose credit, advanced for the acquisition of Margin Stock;

 

(o)          such
Collateral Obligation is not a security or swap transaction that has payments associated with either payments of interest on and/or
principal of a reference obligation or the credit performance of a reference obligation;

 

(p)          as
of the related Cut-Off Date, such Collateral Obligation provides for the periodic payment of cash interest;

 

(q)          such
Collateral Obligation has a term to stated maturity that does not exceed 8 years;

 

(r)          as
of the related Cut-Off Date, such Collateral Obligation is not subject to substantial non-credit related risk, as determined by
the Servicer in accordance with the Servicing Standard;

 

(s)          at
all times, the ownership of such Collateral Obligation will not cause the Borrower to be deemed to own 5.0% or more of any class
of vested voting securities of any Obligor or 25.0% or more of the total equity of any Obligor or any securities that are immediately
convertible into or immediately exercisable or exchangeable for 5.0% or more of any class of vested voting securities of any Obligor
or 25.0% or more of the total equity of any Obligor, in each case as determined by the Servicer;

 

(t)          subject
to any customary confidentiality provisions to be agreed to by the Facility Agent, the Underlying Instrument for which does not
contain confidentiality provisions that restrict the ability of the Facility Agent to exercise its rights under the Transaction
Documents, including, without limitation, its rights to review such debt obligation or Participation Interest, the Underlying Instrument
and related documents and credit approval file;

 

(u)          the
acquisition of which is not in violation of Regulations T, U or X of the Federal Reserve Board;

 

(v)         such
Collateral Obligation is capable of being transferred to and owned by the applicable Loan Party (whether directly or by means of
a security entitlement) and of being pledged, assigned or novated by the owner thereof or of an interest therein, subject
to customary qualifications for instruments similar to such Collateral Obligation (i) to the Facility Agent, (ii) to any assignee
of the Facility Agent permitted or contemplated under this Agreement, (iii) at any foreclosure or strict foreclosure sale
or other disposition initiated by a secured creditor in furtherance of its security interest, and (iv) to commercial banks,
financial institutions, offshore and other funds (in each case, including transfer permitted by operation of the UCC);

 

    	 	-20-	 

     

    

 

(w)          the
proceeds of such Collateral Obligation will not be used to finance activities of the type engaged in by businesses classified under
NAICS Codes 2361 (Residential Building Construction), 2362 (Nonresidential Building Construction), 2371 (Utility System Construction),
or 2372 (Land Subdivision);

 

(x)          as
of the related Cut-Off Date, the Related Security for such Collateral Obligation is primarily located in any Eligible Jurisdiction;

 

(y)          [reserved];

 

(z)          such
Collateral Obligation is not the subject of an offer, exchange or tender by the related Obligor for an amount less than par;

 

(aa)         if
such Collateral Obligation is a Participation Interest, the seller thereof has (x) long-term unsecured ratings of at least “Baa1”
by Moody’s and “BBB+” by S&P and (y) short-term unsecured ratings of at least “A-1” by S&P
and “P-1” by Moody’s;

 

(bb)         if
such Collateral Obligation is an Asset Based Loan, the related Underlying Instruments require delivery of a calculation of each
related borrowing base in reasonable detail to each lender not less frequently than monthly;

 

(cc)         if
such Collateral Obligation is a Multiple of Recurring Revenue Loan, as of the Cut-Off Date (i) it is a First Lien Loan and (ii)
the related Obligor has annualized Revenue of at least $15,000,000 (calculated using the most recent financial information of such
Obligor received by the applicable Loan Party prior to the Cut-Off Date);

 

(dd)         the
proceeds of such Collateral Obligation will not be used to finance activities within the marijuana industry, the sale of firearms
or any other defense equipment, the development of adult entertainment, any form of betting and gambling or the making or collection
of pay day loans, nor will they be used to provide financing to any other industry which is illegal under Applicable Law at the
time of acquisition of such Collateral Obligation;

 

(ee)         such
Collateral Obligation was originated or acquired in the ordinary course of the Equityholder’s or its affiliates’ business
not primarily for personal, family or household use;

 

(ff)          such Collateral
Obligation is an “instrument” or a “payment intangible” (each as defined under Article 9 of the UCC);

 

(gg)        such Collateral
Obligation and the relevant Underlying Instruments are in full force and effect (except as enforceability may be limited by bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally and any equitable
limitation on the availability of specific remedies), free and clear of any liens (other than Permitted Liens);

 

    	 	-21-	 

     

    

 

(hh)         if
the Loan Party, Equityholder, Servicer or any Affiliate thereof is the administrative agent with respect to such Collateral Obligation,
any payments made to the administrative agent with respect to such Collateral Obligation by any related Obligor are held by such
administrative agent in a segregated account in the name of such administrative agent as an agent for the benefit of the related
secured parties with respect to such Collateral Obligation;

 

(ii)         such
Collateral Obligation is a First Lien Loan or a Second Lien Loan;

 

(jj)         such
Collateral Obligation does not have an Obligor in a Prohibited Industry;

 

(kk)        as of
the related Cut-Off Date, such Collateral Obligation does not have (x) a rating by Standard & Poor’s of “SD”
or (y) a Moody’s probability of default rating (as published by Moody’s) of “LD” or, in each case,
did not have such ratings before they were withdrawn by Standard & Poor’s or Moody’s, as applicable; and

 

(ll)         as
of the related Cut-Off Date, a Responsible Officer of the Servicer or the Borrower has actual knowledge that such Collateral Obligation
is pari passu or junior in right of payment as to the payment of principal and/or interest to another debt obligation of
the same Obligor which has (i) a rating by Standard & Poor’s of “SD” or (ii) a Moody’s probability
of default rating (as published by Moody’s) of “LD”, and in each case such other debt obligation remains outstanding
(provided that both the Collateral Obligation and such other debt obligation are full recourse obligations of the applicable
Obligor).

 

“Eligible
Currency” means CAD, Euros, GBPs, AUDs and Dollars.

 

“Eligible
Jurisdiction” means any of (v) the United States or any State thereof, (w) the United Kingdom, (x) Canada, (y) a Group
I Country, Group II Country or Group III Country and (z) any Tax Jurisdiction.

 

“Eligible
Obligor” means, on any day, any Obligor that (i) is a Person (other than a natural person) that is duly organized
and validly existing under the laws of, an Eligible Jurisdiction, (ii) is a legal operating entity or holding company, (iii) is
not an Official Body, (iv) is not insolvent as of the related Cut-Off Date, (v) is required to pay all material maintenance, repair,
insurance and taxes related to the related Collateral Obligation, (vi) is not an Affiliate of, or controlled by, the Borrower,
the Servicer or the Equityholder and (vii) to the knowledge of the Borrower is not a Non-Sustainable Obligor.

 

“Enterprise
Value Loan” means any Loan that is not an Asset Based Loan.

 

“Environmental
Laws” means any and all foreign, federal, state and local laws, statutes, ordinances, rules, regulations, permits, licenses,
approvals, interpretations and orders of courts or any other Official Body, relating to the protection of human health or the environment,
including requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation,
handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials. Environmental Laws include the
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous
Material Transportation Act (49 U.S.C. § 331 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901
et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C.
§ 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking
Water Act (42 U.S.C. § 300, et seq.), the Environmental Protection Agency’s regulations relating to underground
storage tanks (40 C.F.R. Parts 280 and 281), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.),
and the rules and regulations thereunder.

 

    	 	-22-	 

     

    

 

“Equity Interest”
has the meaning set forth in Section 10.22(a).

 

“Equity Security”
means (a) any equity security or any other security that is not eligible for purchase by a Loan Party as an Eligible Collateral
Obligation and (b) any security purchased as part of a “unit” with an Eligible Collateral Obligation and that itself
is not eligible for purchase by a Loan Party as an Eligible Collateral Obligation.

 

“Equityholder”
has the meaning set forth in the Preamble.

 

“ERISA”
means the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time, including all regulations promulgated
thereunder.

 

“ERISA Affiliate”
means any Person that, for purposes of Title IV of ERISA, is a member of the Borrower’s “controlled group” or
is under “common control” with the Borrower, within the meaning of Section 414 of the Code.

 

“ERISA Event”
means (a) the occurrence with respect to a Plan of a reportable event, within the meaning of Section 4043 of ERISA, unless the
thirty (30)-day notice requirement with respect thereto has been waived by the PBGC; (b) the application for a minimum funding
waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such a Plan,
pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e)
of ERISA); (d) the cessation of operations at a facility of the Borrower or any ERISA Affiliate in the circumstances described
in Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA Affiliate from a Plan during a plan year for which
it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions set forth in Section 430(k) of the
Code or Section 303(k)(1)(A) and (B) of ERISA to the creation of a lien upon property or assets or rights to property or assets
of the Borrower or any ERISA Affiliate for failure to make a required payment to a Plan are satisfied; (g) the termination of a
Plan by the PBGC pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a trustee to administer, a Plan; (h) any failure by any
Plan to satisfy the minimum funding standards of Sections 412 or 430 of the Code or Section 302 of ERISA, whether or not waived;
(i) the determination that any Plan is or is expected to be in “at-risk” status, within the meaning of Section 430
of the Code or Section 303 of ERISA, (j) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of liability with respect
to the withdrawal or partial withdrawal from a Multiemployer Plan or a determination that a Multiemployer Plan is, or is expected
to be, “insolvent” (within the meaning of Section 4245 of ERISA), in “endangered” or “critical”
status (within the meaning of Section 432 of the Code or Section 305 of ERISA), or terminated (within the meaning of Section 4041A
or Section 4042 of ERISA); (k) the failure of the Borrower or any ERISA Affiliate to pay when due (after expiration of any applicable
grace period) any installment payment with respect to withdrawal liability under Section 4201 of ERISA; (l) the Borrower or any
ERISA Affiliate incurs any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent
under Section 4007 of ERISA); or (m) the Borrower or any ERISA Affiliate commits any act (or omission) which could give rise to
the imposition of fines, penalties, taxes, or related charges under ERISA or the Code.

 

    	 	-23-	 

     

    

 

“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.

 

“EU Securitization
Regulation” means Regulation (EU) 2017/2402.

 

“EU Securitization
Rules” means (a) the EU Securitization Regulation; (b) any supplementary regulatory technical standards, implementing
technical standards and any official guidance published in relation thereto by the European Supervisory Authorities, and any implementing
laws or regulations in force on the date hereof; and (c) each amendment or modification thereto approved by the parties hereto
for purposes of this definition, each to the extent legally binding in the Member State of a Lender and in each case as determined
or imposed by any regulatory body having supervisory authority over any Lender.

 

“EURIBOR Rate”
means, for any day during the Accrual Period, the greater of (a) 0.0% and (b) the rate per annum shown by the Reuters Screen
(or any applicable successor page) that displays an average European Money Markets Institute Settlement Rate for deposits in Euros
for a period equal to three (3) months as of 11:00 a.m., Brussels time, for such day or, if such day is not a Business Day, the
immediately preceding Business Day; provided, that in the event no such rate is shown, the EURIBOR Rate shall be the rate
per annum based on the rates at which Euro deposits for a period equal to three (3) months are displayed on page “EURIBOR”
of the Reuters Screen (or any applicable successor page) for the purpose of displaying Euro interbank offered rates of major banks
as of 11:00 a.m., Brussels time, for such day (it being understood that if at least two such rates appear on such page, the rate
will be the arithmetic mean of such displayed rates); provided, further, that in the event fewer than two such rates
are displayed, or if no such rate is relevant, the EURIBOR Rate shall be a rate per annum at which deposits in Euros are
offered by the principal office of the Facility Agent in Brussels, Belgium to prime banks in the euro interbank market at 11:00
a.m. (Brussels time) for such day and for a period equal to three (3) months. Notwithstanding the foregoing, if the EURIBOR Rate
ceases to exist or is reasonably expected to cease to exist within the succeeding three (3) months, the Borrower, the Servicer
and the Facility Agent may (and such parties will reasonably cooperate with each other in good faith in order to) amend this Agreement
to replace references herein to the EURIBOR Rate (and any associated terms and provisions) with any alternative floating reference
rate (and any associated terms and provisions) that is then being generally used in European credit markets for similar types of
facilities (including collateralized loan obligation transactions).

 

“Euro”,
“Euros”, “euro” and “€” mean the lawful currency of the member states
of the European Union that have adopted and retain the single currency in accordance with the treaty establishing the European
Community, as amended from time to time; provided, that if any member state or states ceases to have such single currency
as its lawful currency (such member state(s) being the “Exiting State(s)”), such term shall mean the single
currency adopted and retained as the lawful currency of the remaining member states and shall not include any successor currency
introduced by the Exiting State(s).

 

    	 	-24-	 

     

    

 

“Euro Advance”
means each Advance made in Euros.

 

“Euro Lender”
means the Persons executing this Agreement (or an assignment hereof in accordance with Article XV) in the capacity
of a “Euro Lender”.

 

“European
Supervisory Authorities” means, together, the European Banking Authority, the European Insurance and Occupational Pensions
Authority and the European Securities and Markets Authority (including any predecessor, successor or replacement organization thereto).

 

“Event of
Default” means any of the events described in Section 13.1.

 

“Excepted
Borrowing Base Breach” means a Borrowing Base Deficiency (a) the amount of which deficiency is less than 2.5% of the
Borrowing Base and (b) that is solely the result of a change in the Applicable Exchange Rate for any Eligible Currency; provided
that the Advances Outstanding shall not exceed the Maximum Availability.

 

“Excess Concentration
Amount” means, as of the most recent Measurement Date (and after giving effect to all Eligible Collateral Obligations
to be purchased, substituted or sold by the Borrower on such date), the sum, without duplication, of the following amounts; provided
that, with respect to any Collateral Obligation or portion thereof, if more than one of the following limitations would be exceeded,
the Servicer will determine in its reasonable discretion the applicable limitation that will be used to determine the Excess Concentration
Amount:

 

(a)          the
excess, if any and without duplication, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are
not First Lien Loans over 10% of the Excess Concentration Measure;

 

(b)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are obligations of any single
Obligor (other than an Obligor described in the following proviso) over 5% of (x) during any Conditional Ramp-Up Period, the Target
Portfolio Amount and (y) otherwise, the Excess Concentration Measure; provided, that (x) with respect to any Obligor that
has Collateral Obligation Amounts of Collateral Obligations in excess of all other single Obligors, the sum of the Collateral Obligation
Amounts of all Collateral Obligations that are obligations of such Obligor may be up to 10% of the Excess Concentration Measure
and (y) with respect to any three Obligors that represent Collateral Obligation Amounts of all Collateral Obligations in excess
of all other single Obligors (other than the Obligor described in clause (x)), the sum of the Collateral Obligation Amounts of
all Collateral Obligations that are obligations of each of such Obligors may be up to 7.5% of the Excess Concentration Measure;

 

    	 	-25-	 

     

    

 

(c)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations in any single S&P Industry Classification
(other than (x) the “Multiline Retail”, “Internet and Catalog Retail”, “Specialty Retail” and
“Food and Staples Retailing” S&P Industry Classifications, which may not have Collateral Obligations with Collateral
Obligation Amounts in excess of 10% of the Excess Concentration Measure and (y) the “Oil, Gas and Consumable Fuels”,
“Gas Utilities”, “Independent Power and Renewable Electricity Producers”, “Energy, Equipment and
Services” and “Metals and Mining” S&P Industry Classifications, which may not have Collateral Obligations
with Collateral Obligation Amounts in excess of 10% of the Excess Concentration Measure, in the aggregate) over 20% of (x) during
any Conditional Ramp-Up Period, the Target Portfolio Amount and (y) otherwise, the Excess Concentration Measure; provided,
that the sum of the Collateral Obligation Amounts of all Collateral Obligations with an Obligor in any S&P Industry Classification
in excess of all other S&P Industry Classifications may be up to 25% of (x) during any Conditional Ramp-Up Period, the Target
Portfolio Amount and (y) otherwise, the Excess Concentration Measure;

 

(d)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are Fixed Rate Collateral Obligations
that are not subject to a qualifying Hedging Agreement pursuant to Section 10.6 over 10% of the Excess Concentration
Measure;

 

(e)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations with a primary Obligor Domiciled
in (i) a jurisdiction other than the United States or any State thereof over 25% of the Excess Concentration, (ii) the United Kingdom
over 20.0% of the Excess Concentration Measure, (iii) in Canada over 15.0% of the Excess Concentration Measure and (iv) any Group
I Country, Group II Country, Group III Country or Tax Jurisdiction, in the aggregate, over 10.0% of the Excess Concentration Measure;

 

(f)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations denominated in an Eligible Currency
(other than Dollars) over 25% of the Excess Concentration Measure;

 

(g)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are Variable Funding Assets
over 10% of the Excess Concentration Measure;

 

(h)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are DIP Loans over 10% of the
Excess Concentration Measure;

 

(i)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that are Participation Interests
over 5% of the Excess Concentration Measure;

 

(j)          the
excess, if any, of the sum of the Collateral Obligation Amounts of all Collateral Obligations that (i) are Deferrable Collateral
Obligations and (ii) provide for current cash pay interest of less than the LIBOR Rate plus 5% (or 5% for Fixed Rate Obligations)
over 10% of the Excess Concentration Measure; provided, that no more than 5% of the Excess Concentration Measure can consist
of Deferrable Collateral Obligations that provide for current cash pay interest of less than the LIBOR Rate plus 2.5% (or 2.5%
for Fixed Rate Obligations);

 

(k)          the
excess, if any, of the sum of the Principal Balances of all Collateral Obligations that are in a Permitted Gaming Industry over
7.5% of the Excess Concentration Measure; and

 

    	 	-26-	 

     

    

 

(l)          the
excess, if any, of the sum of the Principal Balances of all Collateral Obligations that are in the defense industry (other than
a Prohibited Defense Asset) over 7.5% of the Excess Concentration Measure.

 

“Excess Concentration
Measure” means (A) during the Ramp-up Period, the Target Portfolio Amount and (B) after the Ramp-up Period, as of any
date of determination, the sum of (i) the Aggregate Eligible Collateral Obligation Amount plus (ii) all amounts on deposit
in the Principal Collection Account plus (iii) all amounts on deposit in the Unfunded Exposure Account.

 

“Excess Funds”
means, as of any date of determination with respect to any Conduit Lender, funds of such Conduit Lender not required, after giving
effect to all amounts on deposit in its commercial paper account, to pay or provide for the payment of (i) all of its matured and
maturing commercial paper notes on such date of such determination and (ii) the principal of and interest on all of its loans outstanding
on such date of such determination.

 

“Excluded
Amounts” means, as of any date of determination, (i) any amount deposited into the Collection Account with respect
to any Collateral Obligation, which amount is attributable to the reimbursement of payment by the Borrower of any Tax, fee or other
charge imposed by any Official Body on such Collateral Obligation or on any Related Security, (ii) any interest or fees (including
origination, agency, structuring, management or other up-front fees) that are for the account of the applicable Person from whom
the Borrower purchased such Collateral Obligation, (iii) any reimbursement of insurance premiums, (iv) any escrows relating
to Taxes, insurance and other amounts in connection with Collateral Obligations which are held in an escrow account for the benefit
of the Obligor and the secured party pursuant to escrow arrangements under Underlying Instruments, (v) amounts received in the
Collection Account with respect to any Warranty Collateral Obligation retransferred or substituted for or that is otherwise replaced
by a Substituted Collateral Obligation, or that is otherwise sold or transferred by the Borrower pursuant to Section 9.34(c),
to the extent such amount is attributable to a time after the effective date of such replacement or sale and (vi) any amount
deposited into the Collection Account in error (including any amounts relating to any portion of an asset sold by the Borrower
and occurring after the date of such sale).

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted
from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch
profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal
office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political
subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed
on amounts payable to or for the account of such Lender with respect to an applicable interest in the Obligations pursuant to a
law in effect on the date on which (i) such Lender acquires such interest in the Obligations (other than pursuant to Section
17.16) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 4.3,
amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a
party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s
failure to comply with Section 4.3(f) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

    	 	-27-	 

     

    

 

“Existing
Golub BDC CLO” means (i) each special purpose vehicle (including those structured as total return swaps) approved by
the Facility Agent, (ii) any future borrower under a credit facility or total return swap undertaken by Golub Capital BDC 3, Inc.
or an Affiliate thereof and which has been approved in the sole discretion of the Facility Agent for purposes of this definition
or (iii) any future special purpose vehicles that are wholly or partly owned subsidiaries of Golub Capital BDC 3, Inc. or an Affiliate
thereof.

 

“Facility
Agent” has the meaning set forth in the Preamble.

 

“Facility
Amount” means (a) prior to the end of the Revolving Period, $250,000,000, unless this amount is permanently reduced
pursuant to Section 2.5 or increased pursuant to Section 2.8, in which event it means such lower or higher amount
and (b) from and after the end of the Revolving Period, the Advances Outstanding.

 

“Facility
Termination Date” means the earliest of (i) the date that is three (3) years after the last day of the Revolving
Period, (ii) the date on which the Equityholder ceases to exist and (iii) the effective date on which the facility hereunder is
terminated pursuant to Section 13.2.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any successor version that is substantively
comparable and not materially more onerous to comply with), and any current or future regulations or official interpretations thereof,
any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection
with such sections of the Code and any legislation, law, regulation or practice enacted or promulgated pursuant to such intergovernmental
agreement.

 

“Federal Funds
Rate” means, for any period, the greater of (a) 0.0% and (b) a fluctuating rate per annum 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, 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 Facility Agent from three federal funds brokers of recognized standing selected by it.

 

“Federal Reserve
Board” means the Board of Governors of the Federal Reserve System and, as applicable, the staff thereof.

 

“Fee Letter”
has the meaning set forth in Section 8.4.

 

“Fees”
has the meaning set forth in Section 8.4.

 

    	 	-28-	 

     

    

 

“First Lien
Broadly Syndicated Loan” means any First Lien Loan that (i) is a broadly syndicated commercial loan, (ii) as
of the related Cut-Off Date has a first lien tranche size of $250,000,000 or greater, (iii) as of the related Cut-Off Date,
the relevant Obligor has an EBITDA for the prior twelve calendar months of at least $50,000,000 or such lower amount as set forth
in the applicable Asset Approval Request (as approved by the Facility Agent in its sole discretion or the Facility Agent and the
Equityholder if the Servicer is not an Affiliate of the Equityholder) (after giving pro forma effect to any acquisition in connection
therewith) and (iv) as of the related Cut-Off Date, it is (A) either rated (publicly or with a private rating letter or the
equivalent thereof) by S&P, Moody’s or Fitch (or the relevant Obligor is rated by S&P, Moody’s or Fitch) and
such ratings are not lower than “B3” by Moody’s, “B-” by S&P and “B-” by Fitch respectively
and (B) actively quoted by two (2) Approved Broker Dealers for a position in an amount at least equal to the amount of such First
Lien Loan and such quotes have been determined with respect to such Loan by Loan X Mark-It Partners, Loan Pricing Corporation or
another nationally recognized pricing service.

 

“First Lien
Loan” means any Loan that (i) is not (and is not permitted by its terms become) subordinate in right of payment
to any obligation of the related Obligor in any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation
proceedings, (ii) is secured by a pledge of specified collateral, which security interest is validly perfected and first priority
under Applicable Law (subject to liens permitted under the applicable Underlying Instruments, and liens accorded priority by law
in favor of any Official Body), and (iii) the Servicer determines in good faith that the value of the specified collateral
or the enterprise value securing the Loan (and the ability to generate cash flow) on or about the time of origination or acquisition
equals or exceeds the outstanding principal balance of the Loan plus the aggregate outstanding balances of all other loans of equal
or higher seniority secured by the same collateral; provided that, any Loan (other than a Multiple of Recurring Revenue
Loan) which does not otherwise satisfy this definition shall be treated as a First Lien Loan if such Loan is only subordinated
to obligations of the related Obligor that (1) do not (collectively) exceed an amount equal to the product of (i) 25% multiplied
by (ii) the aggregate principal amount of such obligations and (2) do not represent more than 1.0x of leverage of such Obligor,
as reasonably determined by the Facility Agent.

 

“First Lien
Middle Market Loan” means any First Lien Loan that does not satisfy one or more of the requirements of a First Lien Broadly
Syndicated Loan.

 

“Fitch”
means Fitch Ratings, Inc., Fitch Ratings Ltd. and their subsidiaries, including Derivative Fitch Inc. and Derivative Fitch Ltd.
and any successor thereto.

 

“Fixed Rate
Collateral Obligation” means any Collateral Obligation that bears a fixed rate of interest.

 

“Floating
Rate Note” means a floating rate note issued pursuant to an indenture or equivalent document by a corporation, partnership,
limited liability company, trust or other person that is secured by a first or second priority perfected security interest or lien
in or on specified collateral securing the issuer’s obligations under such note.

 

“Foreign Currency
Advance Amount” means, on any Measurement Date, the equivalent in Dollars of the aggregate principal amount of all Advances
denominated in an Eligible Currency other than Dollars outstanding on such date, in each case after giving effect to all repayments
of Advances and the making of new Advances on such date.

 

    	 	-29-	 

     

    

 

“Foreign Currency
Sublimit” means, on any Measurement Date and with respect to any Eligible Currency (other than Dollars), a Dollar amount
equal to the lesser of (a) (i) with respect to each CAD Lender, the sum of each CAD Lender’s Pro Rata Percentage of the Advances
Outstanding, (ii) with respect to each Euro Lender, the sum of each Euro Lender’s Pro Rata Percentage of the Advances, (iii)
with respect to each AUD Lender, the sum of each AUD Lender’s Pro Rata Percentage of the Advances or (iv) with respect to
each GBP Lender, the sum of each GBP Lender’s Pro Rata Percentage of the Advances and (b) 25% of the Facility Amount on such
date.

 

“Foreign Lender”
means a Lender that is not a U.S. Person.

 

“Funding Date”
means any Advance Date or any Reinvestment Date, as applicable.

 

“FX Evaluation
Date” means (a) each Funding Date, (b) each Measurement Date, (c) within five (5) days of each Determination Date; (d)
the date on which any Event of Default occurs and (e) each other date requested by the Agent in its sole discretion.

 

“FX Reallocation
Notice” has the meaning set forth in Section 2.2(d)(ii).

 

“GAAP”
means generally accepted accounting principles in the United States, which are applicable to the circumstances as of any day.

 

“GBP”
means the lawful currency of the United Kingdom.

 

“GBP Advance”
means each Advance made in GBP.

 

“GBP Lender”
means the Persons executing this Agreement (or an assignment hereof in accordance with Article XV) in the capacity
of a “GBP Lender”.

 

“Group I Country”
means the Netherlands, Australia, Japan, Singapore and New Zealand.

 

“Group II
Country” means the Germany, Ireland, Sweden and Switzerland.

 

“Group III
Country” means the Austria, Belgium, Denmark, Finland, France, Luxembourg and Norway.

 

“Hazardous
Materials” means all materials subject to any Environmental Law, including materials listed in 49 C.F.R. § 172.101,
materials defined as hazardous pursuant to § 101(14) of the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, flammable, explosive or radioactive materials, hazardous or toxic wastes or substances, lead-based materials,
petroleum or petroleum distillates or asbestos or material containing asbestos, polychlorinated biphenyls, radon gas, urea formaldehyde
and any substances classified as being “in inventory”, “usable work in process” or similar classification
that would, if classified as unusable, be included in the foregoing definition.

 

“Hedge Breakage
Costs” means, with respect to each Hedge Counterparty upon the early termination of any Hedge Transaction with such Hedge
Counterparty, the net amount, if any, payable by the Borrower to such Hedge Counterparty for the early termination of that Hedge
Transaction or any portion thereof.

 

    	 	-30-	 

     

    

 

“Hedge Counterparty”
means (a) DBNY and its affiliates and (b) any other entity that (i) on the date of entering into any Hedge Transaction
(x) is an interest rate swap dealer that has been approved in writing by the Facility Agent, and (y) has a long-term
unsecured debt rating of not less than “A” by S&P, not less than “A2” by Moody’s and not less
than “A” by Fitch (if such entity is rated by Fitch) (the “Long-term Rating Requirement”) and a
short-term unsecured debt rating of not less than “A-1” by S&P, not less than “P-1” by Moody’s
and not less than “Fl” by Fitch (if such entity is rated by Fitch) (the “Short-term Rating Requirement”),
and (ii) in a Hedging Agreement (x) consents to the assignment hereunder of the Borrower’s rights under the Hedging
Agreement to the Facility Agent on behalf of the Secured Parties and (y) agrees that in the event that Moody’s, S&P
or Fitch reduces its long-term unsecured debt rating below the Long-term Rating Requirement or reduces it short-term debt rating
below the Short-term Rating Requirement, it shall either collateralize its obligations in a manner reasonably satisfactory to the
Facility Agent, or transfer its rights and obligations under each Hedging Agreement (excluding, however, any right to net payments
or Hedge Breakage Costs under any Hedge Transaction, to the extent accrued to such date or to accrue thereafter and owing to the
transferring Hedge Counterparty as of the date of such transfer) to another entity that meets the requirements of clauses (b)(i)
and (b)(ii) hereof.

 

“Hedge Transaction”
means each interest rate swap, index rate swap or interest rate cap transaction or comparable derivative arrangement between the
Borrower and a Hedge Counterparty that is entered into pursuant to Section 10.6 and is governed by a Hedging Agreement.

 

“Hedging Agreement”
means the agreement between the Borrower and a Hedge Counterparty that governs one or more Hedge Transactions entered into by the
Borrower and such Hedge Counterparty pursuant to Section 10.6, which agreement shall consist of a “Master Agreement”
in a form published by the International Swaps and Derivatives Association, Inc., together with a “Schedule” thereto,
and each “Confirmation” thereunder confirming the specific terms of each such Hedge Transaction or a “Confirmation”
that incorporates the terms of such a “Master Agreement” and “Schedule.”

 

“Increased
Costs” means, collectively, any increased cost, loss or liability owing to the Facility Agent and/or any other Affected
Person under Article V of this Agreement.

 

    	 	-31-	 

     

    

 

“Indebtedness”
means:

 

(a)       with
respect to any Obligor under any Collateral Obligation, without duplication, (i) all obligations of such entity for borrowed money
or with respect to deposits or advances of any kind, (ii) all obligations of such entity evidenced by bonds, debentures, notes
or similar instruments, (iii) all obligations of such entity under conditional sale or other title retention agreements relating
to property acquired by such entity, (iv) all obligations of such entity in respect of the deferred purchase price of property
or services (excluding current accounts payable incurred in the ordinary course of business), (v) all indebtedness of others secured
by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such entity, whether or not the indebtedness secured thereby has been assumed, (vi) all guarantees
by such entity of indebtedness of others, (vii) all Capital Lease Obligations of such entity, (viii) all obligations, contingent
or otherwise, of such entity as an account party in respect of letters of credit and letters of guaranty and (ix) all obligations,
contingent or otherwise, of such entity in respect of bankers’ acceptances, in each case, excluding (to the extent not included
in the definition of “Indebtedness” in the Underlying Instruments or included in the calculation of Original Leverage
Multiple or Leverage Multiple) (a) letters of credit, to the extent undrawn or otherwise cash collateralized, bankers’ acceptances
and surety bonds, whether or not matured (unless such indebtedness constitutes drawn and unreimbursed amounts), (b) the principal
balance (including capitalized interest if applicable) of holdco notes, seller notes and convertible notes that constitute subordinated
indebtedness, (c) earn-outs and similar deferred purchase price, but only so long as such earn-outs and similar deferred purchase
price remain contingent in nature or, if no longer contingent in nature, does not remain past due for more than ten (10) Business
Days following the due date therefor, (d) working capital and similar purchase price adjustments in connection with acquisitions
not prohibited hereunder, (e) royalty payments made in the ordinary course of business in respect of licenses (to the extent such
licenses are otherwise permitted), (f) accruals for payroll and other non-interest bearing liabilities incurred in the ordinary
course of business, (g) deferred rent obligations, (h) all indebtedness created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such property), (i) all obligations
of such Person under commodity purchase or option agreements or other commodity price hedging arrangements, in each case whether
contingent or matured, (j) all obligations of such Person under any foreign exchange contract, currency swap agreement, interest
rate swap, cap or collar agreement or other similar agreement or arrangement designed to alter the risks of that Person arising
from fluctuations in currency values or interest rates, in each case whether contingent or matured, and (k) all obligations
of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any disqualified stock in such
Person or any other Person, valued, in the case of redeemable preferred interests, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and

 

(b)       for
all other purposes, with respect to any Person at any date, (i) all obligations of such Person for borrowed money or with respect
to deposits or advances of any kind, (ii) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments,
(iii) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired
by such Person, (iv) all obligations of such Person in respect of the deferred purchase price of property or services (excluding
current accounts payable incurred in the ordinary course of business), (v) all indebtedness of others secured by (or for which
the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the indebtedness secured thereby has been assumed, (vi) all guarantees by such Person
of indebtedness of others, (vii) all Capital Lease Obligations of such Person, (viii) all obligations, contingent or otherwise,
of such Person as an account party in respect of letters of credit and letters of guaranty and (ix) all obligations, contingent
or otherwise, of such Person in respect of bankers’ acceptances, but expressly excluding any obligation of such Person to
fund any unfunded commitments.

 

    	 	-32-	 

     

    

 

“Indemnified
Amounts” has the meaning set forth in Section 16.1.

 

“Indemnified
Party” has the meaning set forth in Section 16.1.

 

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

 

“Independent
Accountants” means a firm of nationally recognized independent certified public accountants.

 

“Independent
Member” means with respect to any Person, that such Person is an individual who has prior experience as an independent
director, independent manager, independent limited partner or independent member with at least three years of employment experience
and who is provided by CT Corporation, Corporation Service Company, Puglisi & Associates, National Registered Agents, Inc.,
Wilmington Trust Company, Lord Securities Corporation or an Affiliate thereof or, if none of those companies is then providing
professional independent managers or members, another nationally-recognized company reasonably approved by the Facility Agent and
the applicable Loan Party, in each case that is not an Affiliate of the applicable Loan Party and that provides professional independent
directors, managers, limited partners and/or members and other corporate services in the ordinary course of its business, and which
individual is duly appointed as an Independent Member and is not, and has never been, and will not while serving as Independent
Member be, any of the following:

 

(a)          a
member, partner, equityholder, manager, director, officer or employee of the applicable Loan Party, the Equityholder, any of their
respective equityholders or Affiliates (other than with respect to any bankruptcy remote entity managed or controlled by the Servicer
or any of its Affiliates);

 

(b)          a
creditor, supplier or service provider (including provider of professional services) to the applicable Loan Party, the Equityholder,
or any of their respective equityholders or Affiliates (other than a nationally-recognized company that routinely provides professional
independent directors, managers, limited partners and/or members and other corporate services to the applicable Loan Party, the
Equityholder or any of their respective Affiliates in the ordinary course of its business);

 

(c)          a
family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider;
or

 

(d)          a
Person that controls (whether directly, indirectly or otherwise) any of (a), (b) or (c) above.

 

    	 	-33-	 

     

    

 

“Insolvency
Event” means, with respect to any Person, (a) the entry of a decree or order for relief by a court having jurisdiction
in the premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable federal
or state bankruptcy, winding-up, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or
ordering the winding-up or liquidation of such Person’s affairs, or the commencement of an involuntary case under the federal
bankruptcy laws, as now or hereinafter in effect, or another present or future federal or state bankruptcy, insolvency or similar
law and such case is not dismissed within 60 days; (b) the commencement by such Person of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by such Person to the entry
of an order for relief in an involuntary case under any such law, or the consent by such Person to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any
substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or such
Person shall admit in writing its inability to pay its debts as such debts become due, or the taking of action by such Person in
furtherance of any of the foregoing or (c) any analogous procedure or step is taken in any jurisdiction to which such Person is
subject.

 

“Interest
Collection Account” means the collective reference to (i) the segregated, non-interest bearing securities accounts (within
the meaning of Section 8-501 of the UCC) number (a) with respect to Dollars, created and maintained on the books and
records of the Securities Intermediary for the Borrower entitled “USD Interest Collection Account”, (b) with respect
to Euros, created and maintained on the books and records of the Securities Intermediary for the Borrower entitled “EUR Interest
Collection Account”, (c) with respect to GBPs, created and maintained on the books and records of the Securities Intermediary
for the Borrower entitled “GBP Interest Collection Account”, (d) with respect to AUDs, created and maintained on the
books and records of the Securities Intermediary for the Borrower entitled “AUD Interest Collection Account”, (e) with
respect to CADs, created and maintained on the books and records of the Securities Intermediary for the Borrower entitled “CAD
Interest Collection Account” and (f) each sub-account of the Collection Account of each Securitization Subsidiary into which
Interest Collections shall be segregated, and, in each case, is in the name of the Borrower or such Securitization Subsidiary,
as applicable, and subject to the prior Lien of the Collateral Agent for the benefit of the Secured Parties, which is established
and maintained pursuant to Section 8.1(a) and (ii) each trust account in the name of the Collateral Agent for the benefit
of the applicable Securitization Subsidiary and under the sole dominion and control of the Collateral Agent for the benefit of
the Secured Parties.

 

“Interest
Collections” means, with respect to the Collateral following the applicable Cut-Off Date, (i) all payments and collections
owing to or received by the applicable Loan Party in its capacity as lender and attributable to interest or delayed settlement
compensation on any Collateral Obligation or other Collateral, including scheduled payments of interest and payments of interest
relating to principal prepayments, all guaranty payments attributable to interest and proceeds of any liquidations, sales, dispositions
or securitizations attributable to interest on such Collateral Obligation or other Collateral, (ii) any fees (excluding capitalized
or deferred interest, original issue discount, or fees that are otherwise included in the principal balance) received in respect
of any Collateral Obligation and (iii) the earnings on Interest Collections in the Collection Account that are invested in
Permitted Investments, in each case other than Retained Interests; provided that, any amounts received in respect of any
Defaulted Collateral Obligation will constitute Principal Collections (and not Interest Collections) until the aggregate of all
collections in respect of such Defaulted Collateral Obligation since it became a Defaulted Collateral Obligation equals the outstanding
principal balance of such Loan at the time it became a Defaulted Collateral Obligation.

 

    	 	-34-	 

     

    

 

“Interest
Rate” means, for any Accrual Period and any Lender, a rate per annum equal to the sum of (a) the Applicable
Margin and (b) the Cost of Funds Rate for such Accrual Period and such Lender.

 

“Investment
Manager” has the meaning set forth in Section 10.22(c).

 

“IRS”
means the United States Internal Revenue Service.

 

“Joinder Agreement”
means an agreement among the Borrower, a Committed Lender and the Facility Agent in the form of Exhibit E to this Agreement
(appropriately completed) delivered in connection with a Person becoming a Committed Lender hereunder after the Effective Date,
as contemplated by the terms of this Agreement, a copy of which shall be delivered to the Collateral Agent and the Servicer.

 

“Lender”
means each Conduit Lender, each Committed Lender, each Uncommitted Lender, each Dollar Lender, each CAD Lender, each AUD Lender,
each Euro Lender and each GBP Lender, as the context may require.

 

“Lender Group”
means each Lender and related Agent from time to time party hereto.

 

“Leverage
Multiple” means, with respect to any Collateral Obligation for the most recent relevant period of time for which the
applicable Loan Party has received the financial statements of the relevant Obligor, the ratio of (i) Indebtedness of the relevant
Obligor (other than Indebtedness of such Obligor that is junior in terms of payment or lien subordination (including unsecured
Indebtedness) to Indebtedness of such Obligor held by the Borrower) less unrestricted cash of the relevant Obligor to (ii) EBITDA
of such Obligor as calculated by the Servicer in accordance with the Servicing Standard using information from and calculations
consistent with the relevant compliance statements and financial reporting packages provided by the relevant Obligor as per the
requirements of the related Underlying Instruments.

 

“LIBOR Rate”
means, for any day during the Accrual Period, the greater of (a) 0.0% and (b) the rate per annum shown by the Bloomberg
Professional Service as the Screen Rate for a period equal to three (3) months as of 11:00 a.m., London time, for such day or,
if such day is not a Business Day, the immediately preceding Business Day; provided, that in the event no such rate is shown,
the LIBOR Rate shall be the rate per annum based on the rates at which Dollar deposits for a period equal to three (3) months
are displayed on page “LIBOR” of the Reuters Monitor Money Rates Service or such other page as may replace the LIBOR
page on that service for the purpose of displaying Screen Rates of major banks as of 11:00 a.m., London time, for such day (it
being understood that if at least two such rates appear on such page, the rate will be the arithmetic mean of such displayed rates);
provided, further, that in the event fewer than two such rates are displayed, or if no such rate is relevant, the
LIBOR Rate shall be a rate per annum at which deposits in the Eligible Currency are offered by the principal office of the
Facility Agent in London, England to prime banks in the London interbank market at 11:00 a.m. (London time) for such day and for
a period equal to three (3) months. Notwithstanding the foregoing, if the LIBOR Rate ceases to exist or is reasonably expected
to cease to exist within the succeeding three (3) months, the Borrower, the Servicer and the Facility Agent may (and such parties
will reasonably cooperate with each other in good faith in order to) amend this Agreement (without the consent of any other party
hereto) to replace references herein to the LIBOR Rate (and any associated terms and provisions) with any alternative floating
reference rate (and any associated terms and provisions) that is then being generally used in U.S. credit markets for similar types
of facilities (including collateralized loan obligation transactions).

 

    	 	-35-	 

     

    

 

“Lien”
means any security interest, lien, charge, pledge, preference, equity or encumbrance of any kind, including Tax liens, mechanics’
liens and any liens that attach by operation of law.

 

“Loan”
means any leveraged or commercial loan.

 

“Loan Party”
means, collectively and individually as the context requires, the Borrower and each Securitization Subsidiary party hereto.

 

“Loan Register”
has the meaning set forth in Section 15.5(a).

 

“Loan Registrar”
has the meaning set forth in Section 15.5(a).

 

“Make-Whole
Fee” has the meaning set forth in the Fee Letter.

 

“Margin Stock”
means “Margin Stock” as defined under Regulation U issued by the Federal Reserve Board.

 

“Material
Action” means an action to institute proceedings to have a Loan Party be adjudicated bankrupt or insolvent, to file any
insolvency case or proceeding, to institute proceedings under any applicable insolvency law, to seek relief under any law relating
to relief from debts or the protection of debtors, or consent to the institution of bankruptcy or insolvency proceedings against
a Loan Party or file a petition seeking, or consent to, reorganization or relief with respect to a Loan Party under any applicable
federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator
(or other similar official) of a Loan Party or a substantial part of its property, or make any assignment for the benefit of creditors
of a Loan Party, or admit in writing a Loan Party’s inability to pay its debts generally as they become due, or take action
in furtherance of any such action.

 

“Material
Adverse Effect” means a material adverse effect on: (a) the assets, operations, properties, financial condition, or business
of any Loan Party or the Servicer; (b) the ability of a Loan Party or the Servicer to perform its obligations under this Agreement
or any of the other Transaction Documents; (c) the validity or enforceability of this Agreement, any of the other Transaction Documents,
or the rights and remedies of the Secured Parties hereunder or thereunder taken as a whole; or (d) the aggregate value of the Collateral
or on the assignments and security interests granted by each Loan Party in this Agreement.

 

“Material
Modification” means any amendment or waiver of, or modification or supplement to, any Underlying Instrument governing
a Collateral Obligation executed or effected on or after the related Cut-Off Date that is not consented to by the Facility Agent
in writing which:

 

    	 	-36-	 

     

    

 

(a)       reduces
or forgives any or all of the principal amount due under such Collateral Obligation;

 

(b)       (i)
waives one or more interest payments, (ii) permits any interest due in cash to be deferred or capitalized and added to the principal
amount of such Collateral Obligation (other than any deferral or capitalization already allowed by the terms of any Deferrable
Collateral Obligation as of the related Cut-Off Date) or (iii) reduces the amount of interest due (in each case, other than with
respect to any prepayment fees in connection with any prepayment);

 

(c)       contractually
or structurally subordinates such Collateral Obligation by operation of (i) any priority of payment provisions, (ii) turnover provisions,
(iii) the transfer of assets in order to limit recourse to the related Obligor or (iv) the granting of Liens (other than by the
granting of Permitted Liens) on any of the collateral securing such Collateral Obligation, each that requires the consent of the
applicable Loan Party or any lenders thereunder;

 

(d)       either
(i) extends the maturity date of such Collateral Obligation by more than 90 days past the maturity date as of the related Cut-Off
Date or (ii) extends or waives the amortization schedule with respect thereto and the effect of such extension or waiver is to
extend the Average Life of such Collateral Obligation by more than 10% (from the amortization schedule as of the time such Loan
is approved by the Facility Agent for inclusion in the Borrower Collateral);

 

(e)       substitutes,
alters or releases (other than by the granting of Permitted Liens or excluding a release in connection with a payoff of all of
such Collateral Obligation) the Related Security securing such Collateral Obligation and such substitution, alteration or release,
individually or in the aggregate and as determined in the Facility Agent’s reasonable discretion, materially and adversely
affects the value of such Collateral Obligation;

 

(f)       (i)
results in any materially less financial information in respect of reporting frequency, scope or otherwise being provided with
respect to the related Obligor or reduces the frequency or total number of any appraisals required thereunder that, in each case,
has an effect on the ability of the Servicer or the Facility Agent (as determined by the Facility Agent in its reasonable discretion)
to make any determinations or calculations required or permitted hereunder; provided that the failure to timely provide
quarterly or annual financial statements shall be deemed to be material (subject to the shorter of any applicable grace period
thereunder and thirty (30) days from the due date) or (ii) in the case of an Asset Based Loan, reduces the frequency or total number
of any appraisals required under the related Underlying Instruments; provided, that for so long as reporting frequency remains
at least quarterly, changes to reporting frequency shall not be considered Material Modifications;

 

(g)       amends,
waives, forbears, supplements or otherwise modifies in any way the definition of “permitted lien” or “indebtedness”
(or any similar term) in a manner than is materially adverse to any Lender;

 

    	 	-37-	 

     

    

 

(h)       results
in any change in the currency or composition of any payment of interest or principal to any currency other than the Eligible Currency
in which such Collateral Obligation was originally denominated as of the Cut-Off Date;

 

(i)       with
respect to an Asset Based Loan, results in a change to or grants relief from the borrowing base or any related definition; provided
that any such change of more than 5% shall be deemed to be material; or

 

(j)       results
in a change to the calculation of EBITDA for the related Obligor, which is materially adverse to the Lenders unless (x) for all
purposes under this Agreement, the Servicer continues to calculate EBITDA of such Obligor without giving effect to such modification
or, if the Servicer elects to calculate the EBITDA of such Obligor after giving effect to such modification, the Servicer shall
recalculate the Original Leverage Multiple for such Collateral Obligation by giving pro forma effect to such modification of the
calculation of EBITDA or (y) both (1) at the time of such modification, the Equityholder and its Subsidiaries did not collectively
possess an ability to prevent the effectiveness of such modification and (2) no Revaluation Event described in clause (d) of the
definition thereof occurs with respect to such Collateral Obligation as a result of such modification.

 

“Maximum Availability”
means, as of any date of determination, the difference of (i) the Facility Amount minus (ii) the balance of all unfunded
Advances approved but not yet funded minus (iii) the Aggregate Unfunded Amount plus (iv) all amounts on deposit in
the Unfunded Exposure Account, each as of such date of determination.

 

“Maximum Portfolio
Advance Rate” means:

 

	Diversity Score	 	Case A	 	Case B
	Less than or equal to 6 	 	(x) During the
    Revolving Period, 0% and (y) after the Revolving Period, 40.0%	 	(x) During the
    Revolving Period, 0% and (y) after the Revolving Period, 40.0%
	Greater than 6 but less than or equal to 8	 	60.0%	 	60.0%
	Greater than 8 but less than or equal to 11	 	67.5%	 	67.5%
	Greater than 11 but less than or equal to 15	 	70.0%	 	70.0%
	Greater than 15	 	75.0%	 	72.5%

 

Case B will apply on
any date of determination on which the Weighted Average Spread is greater than 5.00% and less than or equal to 5.50%; and Case
A will apply on any date of determination on which the Weighted Average Spread is greater than 5.50%.

 

    	 	-38-	 

     

    

 

“Maximum Weighted
Average Life Test” means a test that will be satisfied on any date of determination if the Weighted Average Life of all
Eligible Collateral Obligations included in the Collateral is less than or equal to 5.5 years.

 

“Measurement
Date” means each of the following, as applicable: (i) the Effective Date; (ii) each Determination Date; (iii) each Reporting
Date; (iv) each Funding Date; (v) the date of any repayment or prepayment pursuant to Section 2.4; (vi) the date that the
Servicer has actual knowledge of the occurrence of any Revaluation Event with respect to any Collateral Obligation; (vii) the date
of any optional repurchase or substitution pursuant to Section 9.35; (viii) the last date of the Revolving Period; and (ix)
the date of any Optional Sale.

 

“Minimum Diversity
Test” means a test that will be satisfied on any date of determination if the Diversity Score of all Eligible Collateral
Obligations included in the Collateral is equal to or greater than (x) during the period starting on the Effective Date and ending
one-hundred twenty (120) days after the Effective Date, 0, (y) during the period starting (i) one-hundred twenty (120) days after
the Effective Date and ending on the six-month anniversary of the Effective Date or during any Conditional Ramp-Up Period or (ii)
on the date of a Securitization for which an Affiliate of DBNY acts as an underwriter or placement agent and ending on the six-month
anniversary of such Securitization, 6 and (z) otherwise, 10.

 

“Minimum Equity
Condition” means a test that will be satisfied on any date of determination if the Effective Equity is equal to the greater
of (a) prior to the earlier of (x) the date that is 120 days after the Effective Date and (y) the first date on which the Advances
Outstanding equals $30,000,000, the greater of (i) $20,000,000 and (ii) the sum of the Collateral Obligation Amounts of the two
Obligors with Collateral Obligations constituting the highest aggregate Collateral Obligation Amounts (minus the amount
of each Collateral Obligation included in the Excess Concentration Amount), (b) after the expiration of the period set forth in
clause (a) and prior to the earlier of (x) the date that is 180 days after the Effective Date and (y) the first date on which the
Advances Outstanding equals $60,000,000, the greater of (i) $30,000,000 and (ii) the sum of the Collateral Obligation Amounts of
the three Obligors with Collateral Obligations constituting the highest aggregate Collateral Obligation Amounts (minus the
amount of each Collateral Obligation included in the Excess Concentration Amount) and (c) thereafter, the greater of (i) $40,000,000
and (ii) the sum of the Collateral Obligation Amounts of the four Obligors with Collateral Obligations constituting the highest
aggregate Collateral Obligation Amounts (minus the amount of each Collateral Obligation included in the Excess Concentration
Amount).

 

“Minimum Weighted
Average Coupon Test” means a test that will be satisfied on any date of determination if the Weighted Average Coupon
of all Eligible Collateral Obligations that are Fixed Rate Collateral Obligations included in the Collateral on such date is equal
to or greater than 6.00%.

 

“Minimum Weighted
Average Spread Test” means a test that will be satisfied on any date of determination if the Weighted Average Spread
of all Eligible Collateral Obligations included in the Collateral on such date is equal to or greater than 5.00%.

 

    	 	-39-	 

     

    

 

“Monthly Report”
means a monthly report substantially in the form of Exhibit D prepared as of the close of business on each Reporting Date.

 

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

 

“Moody’s
Industry Classification” means the industry classifications set forth in Schedule 2, as such industry classifications
shall be updated at the option of the Facility Agent in its sole discretion if Moody’s publishes revised industry classifications.

 

“Multiemployer
Plan” means a multiemployer plan, as defined in Section 3(37) or Section 4001(a)(3) of ERISA, as applicable, in respect
of which the Borrower or any ERISA Affiliate has or could have any obligation or liability, contingent or otherwise.

 

“Multiple
of Recurring Revenue Loans” means any Loan that is structured based on a multiple of the related Obligor’s Revenue.

 

“Non-Approval
Event” means, as of any date of determination, an event that (a) will be deemed to have occurred if the ratio of (x)
the total number of Asset Approval Requests resulting in Non-Approved Loans (out of the last ten (10) Collateral Obligations) over
(y) such ten (10) Collateral Obligations, is greater than 50% and (b) will be continuing until the conditions set forth in clause
(a) of this definition are no longer true; provided that, until ten (10) Eligible Collateral Obligations have been submitted
to the Facility Agent by the Borrower, the ratio of clause (a)(x) over clause (a)(y) shall be deemed to be zero.

 

“Non-Approved
Loan” means each unique obligation that is otherwise fully eligible for inclusion in the Borrowing Base for which an
Asset Approval Request is submitted by the Servicer to the Facility Agent, and such Asset Approval Request is not approved by the
Facility Agent or the Facility Agent assigns a Discount Factor (as determined on the related Cut-Off Date) of less than 75% (provided
that if the Facility Agent informs the Borrower and the Servicer that such Discount Factor or non-approval was a result of material
Obligor Information being redacted by the Servicer such Asset Approval Request, it will not count in the numerator in the calculation
of a Non-Approval Event); provided that an obligation shall only constitute a Non-Approved Loan if the Servicer or any Affiliate
thereof (including any fund or special managed account managed by the Servicer or any Affiliate thereof) has entered into the related
Underlying Instruments with the related obligor on terms similar to those disclosed in the related Asset Approval Request and otherwise
disclosed to the Facility Agent.

 

“Non-Sustainable
Obligor” means any Obligor (a) currently engaged (i) in activities within or in close proximity to World Heritage Sites
that might impact the outstanding universal values of the site as defined by UNESCO, (ii) in activities located in or involving
the clearing of primary tropical moist forests, illegal logging or uncontrolled and/or illegal use of fire (iii) as an upstream
producer and / or processor of palm oil and palm fruit products that is not a member or certified in accordance with the Roundtable
on Sustainable Palm Oil (“RSPO”) or time-bound committed toward RSPO certification, (iv) in expanding an existing
or developing a new coal-fired power irrespective of location, (v) in developing greenfield thermal coal mining, or (vi) in using
mountain top removal as an extraction method in mining or (b) in relation to which there is evidence of child or forced labor in
accordance with international labor conventions or other human rights violations such as slavery, forced or compulsory labor and
human trafficking as defined by the Modern Slavery Act 2015.

 

    	 	-40-	 

     

    

 

“Note”
means a promissory grid note, substantially in the form of Exhibit A, made payable to an Agent on behalf of the related
Lender Group.

 

“Note Agent”
has the meaning set forth in Section 14.1.

 

“Obligations”
means all obligations (monetary or otherwise) of the Borrower or any Securitization Subsidiary to the Lenders, the Agents, the
Collateral Agent, the Collateral Custodian, the Facility Agent or any other Affected Person or Indemnified Party arising under
or in connection with this Agreement, the Notes and each other Transaction Document.

 

“Obligor”
means, with respect to any Loan, any Person or Persons obligated to make payments pursuant to or with respect to such Loan, including
any guarantor thereof, but excluding, in each case, any such Person that is an obligor or guarantor that is in addition to the
primary obligors or guarantors with respect to the assets, cash flows or credit on which the related Loan is principally underwritten
and, solely for purposes of calculating the Excess Concentration Amount pursuant to clause (b) or (c) of the definition thereof,
any Obligor that is an Affiliate of another Obligor shall be treated as the same Obligor.

 

“Obligor Information”
means, with respect to any Obligor, (a) the legal name and tax identification number of such Obligor, (b) the jurisdiction in which
such Obligor is Domiciled, (c) the audited financial statements for such Obligor for the three prior fiscal years (or such shorter
period of time that the Obligor has been in existence), (d) the Servicer’s internal credit memo with respect to the Obligor
and the related Collateral Obligation, including explanation of any EBITDA adjustments and detailed projections of free cash flow
through maturity, (e) any lender presentations and confidential information memorandum received by the Servicer, (f) the annual
report for the most recent fiscal year of such Obligor, (g) a company forecast for such Obligor including plans related to capital
expenditures, (h) the financials for the most recent fiscal quarter, (i) the business model, company strategy and names of known
peers of such Obligor, (j) the shareholding pattern and details of the management team of such Obligor, (k) details of any banking
facilities and the debt maturity schedule of such Obligor, (l) the Underlying Instruments and (m) such other information reasonably
available to the Servicer as the Facility Agent may reasonably request.

 

“OFAC”
has the meaning set forth in Section 9.30(a).

 

“Officer’s
Certificate” means a certificate signed by a Responsible Officer.

 

“Official
Body” means any government or political subdivision or any agency, authority, regulatory body, bureau, central bank,
commission, department or instrumentality of any such government or political subdivision, or any court, tribunal, grand jury or
arbitrator, in each case whether foreign or domestic.

 

“Opinion of
Counsel” means a written opinion of independent counsel reasonably acceptable in form and substance and from counsel
reasonably acceptable to the Facility Agent.

 

    	 	-41-	 

     

    

 

“Optional
Sale” has the meaning set forth in Section 9.34.

 

“Original
Leverage Multiple” means, with respect to any Collateral Obligation, the Leverage Multiple applicable to such Collateral
Obligation as of the related Cut-Off Date as calculated by the Servicer in accordance with the definition of Leverage Multiple
and the definitions used therein and set forth in the related Asset Approval Request (and approved in the related Asset Approval
Notice).

 

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

 

“Other Taxes”
means all present or future stamp, court or documentary, intangible, mortgage, recording, filing or similar Taxes that arise from
any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection
of a security interest under, or otherwise with respect to, any Transaction Document, except any such Taxes that are Other Connection
Taxes imposed with respect to an assignment.

 

“Participant”
has the meaning set forth in Section 15.9(a).

 

“Participant
Register” has the meaning set forth in Section 15.9(c).

 

“Participation
Interest” means a participation interest in a loan that would, at the time of acquisition or the applicable Loan Party’s
commitment to acquire the same, satisfy each of the following criteria: (i) such participation would constitute an Eligible Collateral
Obligation were it acquired directly, (ii) the seller of the participation is the lender on the subject loan, (iii) the aggregate
participation in the loan does not exceed the principal amount or commitment of such loan, (iv) such participation does not grant,
in the aggregate, to the participant in such participation a greater interest than the seller holds in the loan or commitment that
is the subject of the participation, (v) the entire purchase price for such participation is paid in full at the time of its acquisition,
and (vi) the participation provides the participant all of the economic benefit and risk of the whole or part of the loan or commitment
that is the subject of the loan participation.

 

“PBGC”
means the Pension Benefit Guaranty Corporation and its successors and assigns.

 

“Permitted
Gaming Industry” means an industry in respect of which the following conditions must be satisfied:

 

(a)          the
Obligor or any of its Affiliates hold the required licenses for the jurisdiction and are in compliance with the applicable local
gaming, betting and gambling legislation and regulation; and

 

    	 	-42-	 

     

    

 

(b)          the
Obligor or any of its Affiliates have satisfactory anti-financial crime policies (including anti-money laundering and anti-bribery
and anti-corruption) in place which satisfy the applicable policies of the Servicer.

 

“Permitted
Investment” means, at any time:

 

(a)          direct
interest-bearing obligations of, and interest-bearing obligations guaranteed as to timely payment of principal and interest by,
the United States or any agency or instrumentality of the United States, the obligations of which are backed by the full faith
and credit of the United States;

 

(b)          demand
or time deposits in, certificates of deposit of, demand notes of, or bankers’ acceptances issued by any depository institution
or trust company organized under the laws of the United States or any State thereof (including any federal or state branch or agency
of a foreign depository institution or trust company) and subject to supervision and examination by federal and/or state banking
authorities (including, if applicable, the Collateral Agent, the Collateral Custodian or Facility Agent or any agent thereof acting
in its commercial capacity); provided, that the short-term unsecured debt obligations of such depository institution or
trust company at the time of such investment, or contractual commitment providing for such investment, are rated at least “A-1”
by Standard & Poor’s and “P-1” by Moody’s;

 

(c)          commercial
paper that (i) is payable in an Eligible Currency and (ii) is rated at least “A-1” by Standard & Poor’s
and “P-1” by Moody’s; or

 

(d)          shares
or other securities of money market funds which funds have, at all times, credit ratings of “Aaa-mf” by Moody’s
and “AAAm” by Standard & Poor’s.

 

Permitted Investments
may be purchased by or through the Collateral Custodian or any of its Affiliates. All Permitted Investments shall be held in the
name of the Securities Intermediary. No Permitted Investment shall have an “f”, “r”, “p”, “pi”,
“q”, “sf” or “t” subscript affixed to its Standard & Poor’s rating. Any such investment
may be made or acquired from or through the Collateral Agent or the Facility Agent or any of their respective affiliates, or any
entity for whom the Collateral Agent or the Facility Agent or any of their respective affiliates provides services and receives
compensation (so long as such investment otherwise meets the applicable requirements of the foregoing definition of Permitted Investment
at the time of acquisition); provided, that notwithstanding the foregoing clauses (a) through (d), unless
the Borrower and the Servicer have received the written advice of counsel of national reputation experienced in such matters to
the contrary (together with an Officer’s Certificate of the Borrower or the Servicer to the Facility Agent and the Collateral
Agent that the advice specified in this definition has been received by the Borrower and the Servicer), Permitted Investments may
only include obligations or securities that constitute cash equivalents for purposes of the rights and assets in paragraph (c)(8)(i)(B)
of the Volcker Rule. The Collateral Agent and Collateral Custodian shall have no obligation to oversee compliance with the foregoing.

 

    	 	-43-	 

     

    

 

“Permitted
Lien” means any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall
have been commenced: (a) Liens for state, municipal or other local Taxes if such Taxes shall not at the time be due and payable
or if a Person shall currently be contesting the validity thereof in good faith by appropriate proceedings and with respect to
which reserves in accordance with GAAP have been provided on the books of such Person, (b) Liens imposed by law, such as materialmen’s,
warehousemen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens, arising
by operation of law in the ordinary course of business for sums that are not overdue or are being contested in good faith, (c)
with respect to agented Loans, security interests, liens and other encumbrances in favor of the lead agent, the collateral agent
or the paying agent on behalf of all holders of indebtedness of such Obligor under the related facility, (d) with respect to any
Loan, restrictions on transfer set forth in the applicable Underlying Instrument and (e) Liens granted pursuant to or by the Transaction
Documents.

 

“Person”
means an individual, partnership, corporation (including a business trust), joint stock company, limited liability company, trust,
unincorporated association, joint venture, government or any agency or political subdivision thereof or any other entity.

 

“Plan”
means any “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title IV of ERISA, Section
412 and 430 of the Code, or Section 302 of ERISA and in respect of which the Borrower or any ERISA Affiliate (x) is (or, if such
Plan were terminated, would under Section 4062 or Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA, or (y) has or could have any obligation or liability, contingent or otherwise.

 

“Prepayment
Fee” has the meaning set forth in the Fee Letter.

 

“Prepayment
Notice” has the meaning set forth in Section 2.4(b)(i).

 

“Principal
Balance” means with respect to any Collateral Obligation as of any date, the lower of (A) the Purchase Price paid by
the applicable Loan Party for such Collateral Obligation and (B) the outstanding principal balance of such Collateral Obligation
(or, if such Collateral Obligation is denominated and payable in any Eligible Currency other than Dollars, the equivalent in Dollars),
exclusive of (x) any deferred or capitalized interest on such Collateral Obligation and (y) any unfunded amounts with respect to
any Variable Funding Asset; provided, that for purposes of calculating the “Principal Balance” of any Deferrable
Collateral Obligation, principal payments received on such Collateral Obligation shall first be applied to reducing or eliminating
any outstanding deferred or capitalized interest; provided, further, that for purposes of the calculation set forth
in clause (f) of the definition of Excess Concentration Amount, the Principal Balance of each Variable Funding Asset shall
include any unfunded commitment owed by the Borrower with respect thereto. The “Principal Balance” of any Equity Security
shall be zero.

 

    	 	-44-	 

     

    

 

“Principal
Collection Account” means the collective reference to (i) the segregated, non-interest bearing securities accounts (within
the meaning of Section 8-501 of the UCC) number (a) with respect to Dollars, created and maintained on the books and
records of the Securities Intermediary for the Borrower entitled “USD Principal Collection Account”, (b) with
respect to Euros, created and maintained on the books and records of the Securities Intermediary for the Borrower entitled “EUR
Principal Collection Account”, (c) with respect to GBPs, created and maintained on the books and records of the Securities
Intermediary for the Borrower entitled “GBP Principal Collection Account”, (d) with respect to AUDs, created and maintained
on the books and records of the Securities Intermediary for the Borrower entitled “AUD Principal Collection Account”,
(e) with respect to CADs, created and maintained on the books and records of the Securities Intermediary for the Borrower
entitled “CAD Principal Collection Account” and, (f) each sub-account of the Collection Account of each Securitization
Subsidiary into which Principal Collections shall be segregated and, in each case, is in the name of the Borrower and subject to
the prior Lien of the Collateral Agent for the benefit of the Secured Parties, which is established and maintained pursuant to
Section 8.1(a) and (ii) each trust account in the name of the Collateral Agent for the benefit of the applicable Securitization
Subsidiary and under the sole dominion and control of the Collateral Agent for the benefit of the Secured Parties.

 

“Principal
Collections” means any and all amounts of collections received with respect to the Collateral other than Interest Collections,
including (but not limited to) (i) all collections attributable to principal on such Collateral (including any proceeds received
by the applicable Loan Party as a result of exercising any Warrant Asset at any time), (ii) all payments received by the applicable
Loan Party pursuant to any Hedging Agreement, (iii)  the earnings on Principal Collections in the Collection Account that
are invested in Permitted Investments, and (iv) all Repurchase Amounts, in each case other than Retained Interests.

 

“Pro Rata
Percentage” means, with respect to any Lender on any date, such Lender’s Commitment as of such date divided
by the aggregate Commitments as of such date.

 

“Proceeding”
means any voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation, dissolution, reorganization,
assignment for the benefit of creditors, appointment of a custodian, receiver, trustee or other officer with similar powers or
any other proceeding for the liquidation, dissolution or other winding up of a Person.

 

“Prohibited
Defense Asset” means a Collateral Obligation in respect of which the related Obligor’s primary direct business
is the production or distribution of antipersonnel landmines, cluster munitions, biological and chemical, radiological and nuclear
weapons or their Critical Components.

 

“Prohibited
Industry” means with respect to any Obligor, its primary business is (a) within an industry referred to in the definition
of Prohibited Defense Asset; (b) the manufacture of fully completed and operational assault weapons or firearms; (c) in pornography
or adult entertainment; or (d) in the gaming industry (other than (i) a Permitted Gaming Industry or (ii) hospitality and/or resorts
development or the management thereof).

 

“Purchase
Price” means, with respect to any Collateral Obligation, the greater of (a) zero and (b) the actual price in Dollars
(or, if such Collateral Obligation is denominated and payable in any Eligible Currency other than Dollars, the equivalent in Dollars)
paid by the Borrower for such Collateral Obligation minus all collections attributable to principal on such Collateral Obligation.
Notwithstanding the foregoing, the purchase price of an Eligible Collateral Obligation purchased at a price equal to or greater
than 97% of par (including any purchase at a premium) shall be deemed to be par for all purposes of this definition.

 

“Qualified
Substitute Arrangement” has the meaning set forth in Section 10.6(c).

 

    	 	-45-	 

     

    

 

“Ramp-up Period”
means the period from and including the Effective Date to the earlier of (i) the first date on which the aggregate Principal
Balance of all Eligible Collateral Obligations equals the Target Portfolio Amount and (ii) the six-month anniversary of the
Effective Date; provided that upon any subsequent increase of the Facility Amount (in an amount not less than an aggregate
of $50,000,000), the date used in clause (ii) to calculate the six-month anniversary shall be the date of such subsequent increase
of the Facility Amount; provided, further that after the closing of any Securitization for which an Affiliate of
DBNY acts as an underwriter or placement agent, the Ramp-up Period means the period from and including the closing date of such
Securitization to the earlier of (x) the first date on which the aggregate Principal Balance of all Eligible Collateral Obligations
exceeds the Target Portfolio Amount and (y) the six-month anniversary of such Securitization.

 

“Rating Agencies”
means Standard & Poor’s and Moody’s.

 

“Recipient”
means (a) the Facility Agent, (b) any Agent, (c) any Lender and (d) any other recipient of a payment hereunder.

 

“Records”
means the Collateral Obligation File for any Collateral Obligation and all other documents, books, records and other information
prepared and maintained by or on behalf of each Loan Party with respect to any Collateral Obligation and the Obligors thereunder,
including all documents, books, records and other information prepared and maintained by any Loan Party or the Servicer with respect
to such Collateral Obligation or Obligors.

 

“Reinvestment”
has the meaning set forth in Section 8.3(b).

 

“Reinvestment
Date” has the meaning set forth in Section 8.3(b)(i).

 

“Reinvestment
Request” has the meaning set forth in Section 8.3(b)(i).

 

“Related Committed
Lender” means, with respect to any Uncommitted Lender, each Committed Lender in its Lender Group.

 

“Related Property”
means, with respect to a Collateral Obligation, any property or other assets designated and pledged or mortgaged as collateral
to secure repayment of such Collateral Obligation, including, without limitation, any pledge of the stock, membership or other
ownership interests in the related Obligor or its subsidiaries, all Warrant Assets with respect to such Collateral Obligation and
all proceeds from any sale or other disposition of such property or other assets.

 

“Related Security”
means, with respect to each Collateral Obligation:

 

(a)          all
Warrant Assets and any Related Property securing a Collateral Obligation, all payments paid to the applicable Loan Party in respect
thereof and all monies due, to become due and paid to the applicable Loan Party in respect thereof accruing after the applicable
Advance Date and all liquidation proceeds thereof;

 

    	 	-46-	 

     

    

 

(b)          all
guaranties, indemnities and warranties, insurance policies, financing statements and other agreements or arrangements of whatever
character from time to time supporting or securing payment of any such indebtedness;

 

(c)          all
Collections with respect to such Collateral Obligation and any of the foregoing;

 

(d)          any
guarantees or similar credit enhancement for an Obligor’s obligations under any Collateral Obligation, all UCC financing
statements or other filings relating thereto, including all rights and remedies, if any, against any Related Security, including
all amounts due and to become due to the applicable Loan Party thereunder and all rights, remedies, powers, privileges and claims
of the applicable Loan Party thereunder (whether arising pursuant to the terms of such agreement or otherwise available to the
applicable Loan Party at law or in equity);

 

(e)          all
Records with respect to such Collateral Obligation and any of the foregoing; and

 

(f)          all
recoveries and proceeds of the foregoing.

 

“Release Date”
has the meaning set forth in Section 9.35.

 

“REO Asset”
means, with respect to any Collateral Obligation, any Related Property that has been foreclosed on or repossessed from the current
Obligor by the Servicer.

 

“Replacement
Hedging Agreement” means one or more Hedging Agreements, which in combination with all other Hedging Agreements then
in effect, after giving effect to any planned cancellations of any presently outstanding Hedging Agreements satisfy the applicable
Loan Party’s covenant contained in Section 10.6 to maintain Hedging Agreements.

 

“Reporting
Date” means with respect to any calendar month, one (1) Business Day prior to the 25th day of such calendar
month, commencing in November 2019; provided that, in each case, if such day is not a Business Day then the Reporting Date
shall occur on the following Business Day.

 

“Repurchase
Amount” means, for any Warranty Collateral Obligation for which a payment or substitution is being made pursuant to Section
9.35 as of any time of determination, the sum of (i) (x) during the Revolving Period, the Collateral Obligation Amount of such
Collateral Obligation multiplied by the Advance Rate for such Collateral Obligation and (y) after the Revolving Period,
the Principal Balance of such Collateral Obligation, (ii) any accrued and unpaid interest thereon since the last Distribution Date
and (iii) all Hedge Breakage Costs owed to any relevant Hedge Counterparty for any termination of one or more Hedge Transactions,
in whole or in part, as required by the terms of any Hedging Agreement, incurred in connection with such payment or repurchase
and the termination of any Hedge Transactions in whole or in part in connection therewith.

 

“Repurchased
Collateral Obligation” means, with respect to any Collection Period, any Collateral Obligation as to which the Repurchase
Amount has been deposited in the Collection Account by or on behalf of the applicable Loan Party on or before the immediately prior
Reporting Date and any Collateral Obligation purchased by the Equityholder pursuant to the Sale Agreement as to which the Repurchase
Amount has been deposited in the Collection Account by or on behalf of the Equityholder.

 

    	 	-47-	 

     

    

 

“Request for
Release and Receipt” means a form substantially in the form of Exhibit F-2 completed and signed by the Servicer.

 

“Required
Lenders” means, at any time, (a) Lenders holding Advances aggregating greater than 50% of all Advances Outstanding or
if there are no Advances Outstanding, Lenders holding Commitments aggregating greater than 50% of all Commitments or (b) the Facility
Agent and Lenders holding aggregate Advances equal to 50% of all Advances Outstanding or if there are no Advances Outstanding,
Lenders holding aggregate Commitments equal to 50% of all Commitments; provided that, Advances outstanding owing to Defaulting
Lenders and the commitments of Defaulting Lenders shall be disregarded for purposes of this definition.

 

“Responsible
Officer” means, with respect to (a) the Servicer or any Loan Party, any duly authorized senior officer of the Servicer
or such Loan Party directly responsible for the administration of this Agreement, (b) the Collateral Agent or Collateral Custodian,
any officer within the Corporate Trust Office, including any director, vice president, assistant vice president or associate having
direct responsibility for the administration of this Agreement, who at the time shall be such officers, respectively, or to whom
any matter is referred because of his or her knowledge of and familiarity with the particular subject, or (c) any other Person,
the President, any Vice-President or Assistant Vice-President, Corporate Trust Officer or the Controller of such Person, or any
other officer or employee having similar functions.

 

“Restricted
Information” has the meaning set forth in Section 10.22(b).

 

“Retained
Economic Interest” has the meaning set forth in Section 10.22(a).

 

“Retained
Interest” means, with respect to any Collateral Obligation included in the Collateral, (a) such obligations to provide
additional funding with respect to such Collateral Obligation that have been retained by the other lender(s) of such Collateral
Obligation, (b) all of the rights and obligations, if any, of the agent(s) under the Underlying Instruments, (c) any unused commitment
fees associated with the additional funding obligations that are being retained in accordance with clause (a) above, and (d) any
agency or similar fees associated with the rights and obligations of the agent(s) that are being retained in accordance with clause
(b) above.

 

“Revaluation
Event” means each occurrence of any of the following with respect to any Collateral Obligation:

 

(a)       such
Collateral Obligation becomes a Defaulted Collateral Obligation;

 

(b)       the
occurrence of a Material Modification with respect to such Collateral Obligation that is not previously approved by the Facility
Agent (in its sole discretion);

 

    	 	-48-	 

     

    

 

(c)       the
related Obligor fails to deliver to the applicable Loan Party or the Servicer any financial reporting package (i) as required by
the Underlying Instruments of such Collateral Obligation (following the lapse of any grace period granted by applicable Loan Party
with respect thereto, but in any event not greater than 45 calendar days) and (ii) no less frequently than quarterly (other than
with respect to Multiple of Recurring Revenue Loans that are included in the Collateral), but which shall in no case exceed sixty
(60) days after the end of each quarter and one-hundred and eighty-five (185) days after the end of each fiscal year;

 

(d)       with
respect to any Enterprise Value Loan that is not a Multiple of Recurring Revenue Loan, the Leverage Multiple with respect to such
Collateral Obligation becomes more than 1.00x higher than the Original Leverage Multiple;

 

(e)       with
respect to any Asset Based Loan, (A) the Borrower fails (or fails to cause the Obligor to) retain an Approved Valuation Firm to
re-calculate the Appraised Value of (x) with respect to any such Asset Based Loan that has intellectual property, equipment or
real property, as the case may be, in its borrowing base, the collateral securing such Asset Based Loan at least once every twelve
(12) months that such Loan is included in the Collateral (subject to a 30 day grace period with respect to any such review) and
(y) with respect to all other Asset Based Loans included in the Collateral, the collateral securing such Loan at least once every
six (6) months that such Loan is included in the Collateral (subject to a 30 day grace period with respect to any such review)
or (B) the Borrower (or the related Obligor, as applicable) changes the Approved Valuation Firm with respect to any Asset Based
Loan that or the related Approved Valuation Firm changes the metric for valuing the collateral of such Loan, each without the written
approval of the Facility Agent;

 

(f)       with
respect to any Asset Based Loan, the “borrowing base” (or such similarly used term) is out of compliance by more than
10% pursuant to the terms of the Underlying Instruments;

 

(g)       with
respect to any Multiple of Recurring Revenue Loan, (1) the Debt-to-Recurring-Revenue Ratio with respect to such Multiple of Recurring
Revenue Loan on any date reported under the Underlying Instrument increases by more than 20.0% from the Debt-to-Recurring-Revenue
Ratio calculated on the applicable Cut-Off Date or (2) otherwise, the related Obligor’s last quarter annualized Revenue is
less than $10,000,000 calculated using the most recent financial information of such Obligor received by the Borrower (or otherwise
available to the Borrower with respect to such Obligor); provided that so long as (x) such Obligor’s debt as a multiple
of recurring revenue remains below 1.0x, (y) such Obligor’s Effective Loan Level LTV remains below 25% and (z) such Obligor’s
annualized Revenue is greater than $10,000,000, sub-clause (1) above shall not be applicable; or

 

(h)       with
respect to calculating the Debt-to-Recurring-Revenue Ratio for any Multiple of Recurring Revenue Loan, a failure to provide the
information necessary to calculate the Debt-to-Recurring Revenue Ratio for any Multiple of Recurring Revenue Loan.

 

“Revenue”
means, with respect to any Collateral Obligations that are Multiple of Recurring Revenue Loans, the definition of annualized recurring
revenue used in the Underlying Instruments for each such Collateral Obligation, or any comparable term for “Revenue,”
“Recurring Revenue” or “Adjusted Revenue” in the Underlying Instruments for each such Collateral Obligation
or if there is no such term in the Underlying Instruments, revenue for the related Obligor and any of its parents or Subsidiaries
that are obligated with respect to such Collateral Obligation pursuant to its Underlying Instruments (determined on a consolidated
basis without duplication in accordance with GAAP) for the most recent four fiscal quarter period for which financial statements
have been delivered.

 

    	 	-49-	 

     

    

 

“Revolving
Liquidity Adjustment Amount” means, on any date of determination, (a) if the Revolving Liquidity Test is satisfied as
of such date, $0; and otherwise (b) an amount equal to the absolute value of the result of A – (B x C) where:

 

A = (i) the lowest
of (A) the Facility Amount, (B) the Borrowing Base (calculated assuming a Revolving Liquidity Adjustment Amount of zero)
and (C) the Maximum Availability minus (ii) the Advances Outstanding;

 

B = the product of
(A) the positive difference (if any) of (I) 2.0x of the Aggregate Unfunded Amount minus (II) the Unrestricted Cash of the
Equityholder multiplied by (B) 50%; and

 

C = the fraction (expressed
as a percentage) of the Aggregate Unfunded Equity Amount over the Aggregate Unfunded Amount.

 

“Revolving
Liquidity Test” means a test that will be satisfied on any date of determination if the lowest of (A) the Facility
Amount, (B) the Borrowing Base (calculated assuming a Revolving Liquidity Adjustment Amount of zero) and (C) the Maximum Availability
exceeds the Advances outstanding by an amount at least equal to the Aggregate Unfunded Equity Amount.

 

“Revolving
Loan” means a Collateral Obligation that specifies a maximum aggregate amount that can be borrowed by the related Obligor
and permits such Obligor to re-borrow any amount previously borrowed and subsequently repaid during the term of such Loan.

 

“Revolving
Period” means the period of time starting on the Effective Date and ending on the earliest to occur of (i) the date
that is 3 years after the Effective Date or, if such date is extended pursuant to Section 2.6, the date mutually agreed
upon by the Borrower and the Facility Agent, (ii) the date on which the Facility Amount is terminated in full pursuant to Section
2.5 or (iii) the occurrence of an Event of Default and (other than in the case of an Event of Default pursuant to clauses
(a), (d), (e), (f), (j) or (q) of Section 13.1) notice from the Facility Agent to the Borrower.

 

“Sale Agreement”
means the Sale and Contribution Agreement, dated as of the date hereof, by and between the Equityholder, as seller, and the Borrower,
as purchaser.

 

“Sanctioned
Countries” has the meaning set forth in Section 9.30.

 

“Sanctions”
has the meaning set forth in Section 9.30.

 

“Sanctions
Target” has the meaning set forth in Section 9.30.

 

    	 	-50-	 

     

    

 

“S&P Industry
Classification” means the industry classifications set forth in Schedule 6, as such industry classifications
shall be updated at the option of the Facility Agent in its sole discretion if S&P publishes revised industry classifications.

 

“Schedule
of Collateral Obligations” means the list or lists of Collateral Obligations attached to each Asset Approval Request
and each Reinvestment Request. Each such schedule shall identify the assets that will become Collateral Obligations, shall set
forth such information with respect to each such Collateral Obligation as the applicable Loan Party or the Facility Agent may reasonably
require and shall supplement any such schedules attached to previously-delivered Asset Approval Requests and Reinvestment Requests.

 

“Scheduled
Collateral Obligation Payment” means each periodic installment payable by an Obligor under a Collateral Obligation for
principal, interest and/or unutilized/commitment fees (as applicable) in accordance with the terms of the related Underlying Instrument.

 

“Screen Rate”
means (a) with respect to Dollar Advances and GBP Advances, the London interbank offered rate administered by ICE Benchmark
Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period,
(b) with respect to Euro Advances, the euro interbank offered rate administered by the Banking Federation of the European
Union (or any other person which takes over the administration of that rate) for the relevant period, (c) with respect to AUD Advances,
the rate equal to the Bank Bill Swap Reference Bid Rate (or a comparable or successor rate) for the relevant time period and (d) with
respect to CAD Advances, the rate equal to the Canadian Dealer Offered Rate (or a comparable or successor rate) for the relevant
period.

 

“Second Lien
Loan” means any Loan (a) that is secured by a valid and perfected Lien on substantially all of the Obligor’s assets
constituting Related Property for such Loan, subject only to the prior Lien provided to secure the obligations under a “first
lien” loan and any other Permitted Liens, (b) that, except for the express lien priority provisions under the documentation
of the “first lien” lenders, is either senior to, or pari passu with, all other Indebtedness of such Obligor,
and (c) that the Servicer determines in accordance with the Servicing Standard that the value of the Related Property (or the enterprise
value and ability to generate cash flow) on or about the time of origination equals or exceeds the outstanding balance of the Loan
plus the aggregate outstanding balances of all other Indebtedness of equal or greater seniority secured by the same Related Property
(including, without limitation, the outstanding principal balance of the “first lien” loan).

 

“Secured Parties”
means, collectively, the Collateral Agent, the Collateral Custodian, the Securities Intermediary, each Lender, the Facility Agent,
each Agent, each other Affected Person, Indemnified Party, Hedge Counterparty and with respect to any expenses incurred in connection
with its duties, the Servicer.

 

“Securities
Intermediary” means the Collateral Custodian, or any subsequent institution acceptable to the Facility Agent at which
the Accounts are kept.

 

    	 	-51-	 

     

    

 

“Securitization”
means any private or public term or conduit securitization transaction undertaken by any Loan Party that is secured, directly or
indirectly, primarily by Loans currently or formerly owned by a Loan Party or any portion thereof or any interest therein released
from the Lien of this Agreement, including, without limitation, any collateralized loan obligation or collateralized debt obligation
offering or other asset securitization or term facility, for which an Affiliate of DBNY acts as an underwriter or placement agent.

 

“Securitization
Subsidiary” means an entity wholly-owned by the Borrower formed for the sole purpose of owning Loans in anticipation
of a Securitization. For the avoidance of doubt, no Person shall be a Securitization Subsidiary after such Person completes a Securitization
and the Lien on its Securitization Subsidiary Collateral Portfolio is released in accordance with the terms hereof.

 

“Securitization
Subsidiary Assigned Agreements” has the meaning set forth in clause (c) of the definition of Securitization Subsidiary
Collateral Portfolio.

 

“Securitization
Subsidiary Collateral Portfolio” means, with respect to any Securitization Subsidiary party hereto, all right, title,
and interest (whether now owned or hereafter acquired or arising, and wherever located) of such Securitization Subsidiary in, to
and under all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright
licenses, equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities,
uncertificated securities, financial assets, securities entitlements, commercial tort claims, deposit accounts, inventory, investment
property, letter-of-credit rights, software, supporting obligations, accessions, or other property of such Securitization Subsidiary
of any type or nature, including, without limitation, all right, title and interest of such Securitization Subsidiary in the following
(in each case excluding the Retained Interest and the Excluded Amounts):

 

(a)       all
Collateral Obligations;

 

(b)       all
Related Security;

 

(c)       this
Agreement and all other documents now or hereafter in effect to which the Securitization Subsidiary is a party (collectively, the
“Securitization Subsidiary Assigned Agreements”), including (i) all rights of the Securitization Subsidiary
to receive moneys due and to become due under or pursuant to the Securitization Subsidiary Assigned Agreements, (ii) all rights
of the Securitization Subsidiary to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Securitization
Subsidiary Assigned Agreements, (iii) claims of the Securitization Subsidiary for damages arising out of or for breach of
or default under the Securitization Subsidiary Assigned Agreements, and (iv) the right of the Securitization Subsidiary to
amend, waive or terminate the Securitization Subsidiary Assigned Agreements, to perform under the Securitization Subsidiary Assigned
Agreements and to compel performance and otherwise exercise all remedies and rights under the Securitization Subsidiary Assigned
Agreements;

 

(d)       all
of the following: (i) each Account, all funds held in any Account (other than Excluded Amounts), and all certificates and instruments,
if any, from time to time representing or evidencing any Account or such funds, (ii) all investments from time to time of amounts
in the Accounts and all certificates and instruments, if any, from time to time representing or evidencing such investments, (iii)
all notes, certificates of deposit and other instruments from time to time delivered to or otherwise possessed by the Collateral
Agent or any Secured Party or any assignee or agent on behalf of the Collateral Agent or any Secured Party in substitution for
or in addition to any of the then existing Account Collateral, and (iv) all interest, dividends, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange for any and all of the then existing
Account Collateral;

 

    	 	-52-	 

     

    

 

(e)       all
additional property that may from time to time hereafter be granted and pledged by the Securitization Subsidiary or by anyone on
its behalf under this Agreement;

 

(f)       all
Accounts, all Certificated Securities, all Chattel Paper, all Documents, all Equipment, all Financial Assets, all General Intangibles,
all Instruments, all Investment Property, all Inventory, all Securities Accounts, all Security Certificates, all Security Entitlements
and all Uncertificated Securities of the Securitization Subsidiary;

 

(g)       all
of the Securitization Subsidiary’s other personal property; and

 

(h)       all
Proceeds, accessions, substitutions, rents and profits of any and all of the foregoing Collateral (including proceeds that constitute
property of the types described in clauses (a) through (g) above) and, to the extent not otherwise included, all
payments under insurance (whether or not the Collateral Agent or a Secured Party or any assignee or agent on behalf of the Collateral
Agent or a Secured Party is the loss payee thereof) or any indemnity, warranty or guaranty payable by reason of loss or damage
to or otherwise with respect to any of the foregoing Collateral.

 

“Securitization
Subsidiary Joinder” means a joinder agreement substantially in the form of Exhibit I.

 

“Servicer”
means initially Golub Capital BDC 3, Inc. or any successor servicer appointed pursuant to this Agreement.

 

“Servicer
Default” means the occurrence of one of the following events:

 

(a)          any
failure by the Servicer to deposit or credit, or to deliver for deposit, in the Collection Account any amount required hereunder
to be so deposited, credited or delivered or to make any required distributions therefrom, which continues unremedied for a period
of two (2) Business Days;

 

(b)          any
failure on the part of the Servicer (in each case, solely in its capacity as Servicer) duly to observe or perform in any material
respect any other covenants or agreements of the Servicer set forth in this Agreement or the other Transaction Documents to which
the Servicer is a party, which failure continues unremedied for a period of thirty (30) days (if such failure can be remedied)
after the date on which written notice of such failure is given to a Responsible Officer of the Servicer;

 

(c)          the
occurrence of an Insolvency Event with respect to the Servicer;

 

    	 	-53-	 

     

    

 

(d)          any
representation, warranty or certification made by the Servicer (in each case, solely in its capacity as Servicer) in this Agreement
shall prove to have been incorrect when made, which has a Material Adverse Effect and continues to be unremedied for a period of
thirty (30) days (if such failure can be remedied) after the date on which written notice of such event is given to a Responsible
Officer of the Servicer; provided, that no breach shall be deemed to occur hereunder in respect of any representation or
warranty relating to the “eligibility” of any Collateral Obligation if the Borrower complies with Section 9.35
hereof and the Equityholder complies with its repurchase obligations in the Sale Agreement with respect to such Collateral Obligation;

 

(e)          an
Event of Default occurs and is continuing;

 

(f)          (i)
the failure of the Servicer to make any payment when due (after giving effect to any related grace period) under one or more agreements
for borrowed money to which it is a party in an aggregate amount in excess of $20,000,000, individually or in the aggregate; or
(ii) the occurrence of any event or condition that has resulted in or permits the acceleration of such recourse debt, whether
or not waived;

 

(g)          the
rendering against the Servicer of one or more final, non-appealable judgments, decrees or orders by a court or arbitrator of competent
jurisdiction for the payment of money in excess of $20,000,000, individually or in the aggregate, and the continuance of such judgment,
decree or order unsatisfied and in effect for any period of more than sixty (60) consecutive days without a stay of execution;

 

(h)          a
Change of Control occurs; or

 

(i)          Golub
Capital BDC 3, Inc. or an Affiliate thereof ceases to be the Servicer.

 

“Servicer
Expenses” means any accrued and unpaid expenses (including reasonable attorneys’ fees, costs and expenses) and
indemnity amounts payable by the Borrower to the Servicer (other than the Servicing Fee) under the Transaction Documents.

 

“Servicing
Fee” means with respect to any Distribution Date, the senior fee payable to the Servicer or successor servicer (as applicable)
for services rendered during the related Collection Period, which shall be equal to one-quarter of the product of (i) 0.50%
multiplied by (ii) the average of the values of the Aggregate Eligible Collateral Obligation Amount on the first day
and the last day of the related Collection Period; provided that, in the sole discretion of the Servicer, the Servicer may,
from time to time, waive all or any portion of the Servicing Fee payable on any Distribution Date.

 

“Servicing
Standard” means, with respect to any Loans included in the Collateral, to service and administer such Loans in accordance
with Applicable Law, the terms of this Agreement, the Underlying Instruments and, to the extent consistent with the foregoing,
(a) in a manner consistent with the provisions of the 1940 Act applicable to the Servicer as an advisor to the Borrower, (b) the
same care, skill, prudence and diligence with which the Servicer services and administers loans for its own account or for the
account of others and (c) with a view to maximize the value of the Loans.

 

    	 	-54-	 

     

    

 

“Specified
Borrowing Base Breach” means a Borrowing Base Deficiency that occurs (a) after the end of the Revolving Period and (b)
solely as a result of a reduction in the Diversity Score; provided that the Diversity Score is at least equal to 6.

 

“Specified
First Lien Loan” means any First Lien Loan (other than a DIP Loan or a Multiple of Recurring Revenue Loan) that is an
Enterprise Value Loan (x) (i) where the related Obligor is not a holding company, (ii) that has either (a) both (I) an Original
Leverage Multiple of less than 3.5x and (II) an Effective Loan Level LTV of less than 45% or (b) both (I) an Original Leverage
Multiple that is greater than or equal to 3.5x but less than 4.0x and (II) an Effective Loan Level LTV of less than 50% and (iii)
has an Obligor with a most recently reported EBITDA of at least $10,000,000 or (y) that is approved as a Specified First Lien Loan
in writing by the Facility Agent in its sole discretion.

 

“Standard
& Poor’s” or “S&P” means Standard & Poor’s Ratings Services, a Standard &
Poor’s Financial Services LLC business, and any successor or successors thereto.

 

“Structured
Finance Obligation” means any obligation secured directly by, referenced to, or representing ownership of, a pool of
receivables or other financial assets of any obligor, including collateralized debt obligations and mortgage-backed securities,
including (but not limited to) collateral debt obligations, collateral loan obligations, asset backed securities and commercial
mortgage backed securities or any resecuritization thereof.

 

“Subsidiary”
means, with respect to any Person, a corporation, partnership or other entity of which such Person and/or its other Subsidiaries
own, directly or indirectly, such number of outstanding shares or interests as have more than 50% of the ordinary voting power
for the election of directors, managers or general partners, as applicable.

 

“Substitute
Eligible Collateral Obligation” means each Eligible Collateral Obligation pledged by the Borrower to the Collateral Agent,
on behalf of the Secured Parties, pursuant to Section 9.35.

 

“Substituted
Collateral Obligation” means, with respect to any Collection Period, any Warranty Collateral Obligation with respect
to which the Equityholder has substituted in a Substitute Eligible Collateral Obligation pursuant to Section 9.35 and the
Sale Agreement.

 

“Tangible
Net Worth” means, with respect to any Person, the consolidated assets minus the consolidated liabilities of such Person
and its consolidated Subsidiaries calculated in accordance with GAAP after subtracting therefrom the aggregate amount of the intangible
assets of such Person and its consolidated Subsidiaries, including, without limitation, goodwill, franchises, licenses, patents,
trademarks, tradenames, copyrights and service marks; provided that such calculation shall not take into consideration any
market price changes or perceived market price changes.

 

“Target Portfolio
Amount” means $370,000,000 or such other amount as agreed by the Facility Agent and the Borrower in connection with an
increase in the Facility Amount in excess of $50,000,000.

 

    	 	-55-	 

     

    

 

“Tax Jurisdiction”
means the Cayman Islands, Bermuda, Curaçao, St. Maarten, the Channel Islands or the Bahamas.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Official Body, including any interest, additions to tax or penalties applicable thereto.

 

“Transaction
Documents” means this Agreement, the Notes, the Sale Agreement, the Collateral Agent and Collateral Custodian Fee Letter,
each Fee Letter, the Account Control Agreement, each Securitization Subsidiary Joinder, each Joinder Agreement and the other documents
to be executed and delivered in connection with this Agreement, specifically excluding from the foregoing, however, Underlying
Instruments delivered in connection with this Agreement.

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions.

 

“Uncommitted
Lender” means any Conduit Lender designated as an “Uncommitted Lender” for any Lender Group and any of its
assignees.

 

“Underlying
Instrument” means the loan agreement, credit agreement or other customary agreement pursuant to which a Collateral Obligation
has been created or issued and each other agreement that governs the terms of or secures the obligations represented by such Collateral
Obligation or of which the holders of such Collateral Obligation are the beneficiaries.

 

“Undrawn Fee”
means a fee payable pursuant to Section 3.1(b) for each day of the related Collection Period equal to the product
of (x) the difference between the aggregate Commitments on such day minus the Advances Outstanding on such day, multiplied
by (y) the Undrawn Fee Rate multiplied by (z) 1/360.

 

“Undrawn Fee
Rate” has the meaning set forth in the Fee Letter.

 

“Unfunded
Exposure Account” means the collective reference to (i) the segregated, non-interest bearing securities accounts (within
the meaning of Section 8-501 of the UCC) number (a) with respect to Dollars, created and maintained on the books and
records of the Securities Intermediary for the Borrower entitled “USD Unfunded Exposure Account”, (b) with respect
to Euros, created and maintained on the books and records of the Securities Intermediary for the Borrower entitled “EUR Unfunded
Exposure Account”, (c) with respect to GBPs, created and maintained on the books and records of the Securities Intermediary
for the Borrower entitled “GBP Unfunded Exposure Account”, (d) with respect to AUDs, created and maintained on the
books and records of the Securities Intermediary for the Borrower entitled “AUD Unfunded Exposure Account” and (e) with
respect to CADs, created and maintained on the books and records of the Securities Intermediary for the Borrower entitled “CAD
Unfunded Exposure Account” and, in each case, is in the name of the Borrower and subject to the prior Lien of the Collateral
Agent for the benefit of the Secured Parties, which is established and maintained pursuant to Section 8.1(a) and
(ii) each trust account in the name of the Collateral Agent for the benefit of the applicable Securitization Subsidiary and under
the sole dominion and control of the Collateral Agent for the benefit of the Secured Parties.

 

    	 	-56-	 

     

    

 

“Unfunded
Exposure Equity Amount” means, as of any date of determination, with respect to any Revolving Loan or Delayed Drawdown
Loan included in the Collateral, an amount equal to (i) the product of (a) Aggregate Unfunded Amount with respect to such Revolving
Loan or Delayed Drawdown Loan multiplied by (b) the difference of (x) 100% minus (y) the lower of the Maximum Portfolio
Advance Rate and the Weighted Average Unfunded Advance Rate, in each case, as of such date plus (ii) the product of (a)
Aggregate Unfunded Amount with respect to such Revolving Loan or Delayed Drawdown Loan multiplied by (b) the difference
of 100% minus the Discount Factor (if any) assigned to such Revolving Loan or Delayed Drawdown Loan.

 

“Unfunded
Exposure Shortfall” has the meaning set forth in Section 8.1(a).

 

“Unmatured
Event of Default” means any event that, if it continues uncured, will, with lapse of time or notice or lapse of time
and notice, constitute an Event of Default.

 

“Unmatured
Servicer Default” means any event that, if it continues uncured, will, with lapse of time or notice or lapse of time
and notice, constitute a Servicer Default.

 

“Unrestricted
Cash” means, (a) with respect to any Loan, the meaning of “Unrestricted Cash” or any comparable term in the
Underlying Instruments for the applicable Loan and (b) in any case that “Unrestricted Cash” or such comparable term
is not defined in such Underlying Instruments or otherwise as applicable in this Agreement, cash and cash equivalents of the applicable
Person available for use for general corporate purposes and not held in any reserve account or legally or contractually restricted
for any particular purposes or uses.

 

“USA Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Public Law 107 56.

 

“U.S. Person”
means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“U.S. Tax
Compliance Certificate” has the meaning set forth in Section 4.3(f).

 

“Valuation
Standard” means a standard that will be satisfied if an Approved Valuation Firm uses one or a combination of credit-based
methodologies that are generally acceptable in the market as commercially reasonable practices to derive a fair assessment of the
current market value of an Eligible Collateral Obligation; provided that such assessment shall take into consideration,
but not be limited to, the following:

 

(a)       the
financial performance and outlook of the Obligor of such Eligible Collateral Obligation;

 

(b)       a
fundamental analysis to value the Obligor of such Eligible Collateral Obligation which may be based on discounted cash flow and
a multiples-based approach based on comparable companies in the relevant sector or another generally accepted methodology for valuing
companies in the relevant sector; and

 

    	 	-57-	 

     

    

 

(c)       any
other facts or circumstances deemed relevant by the Approved Valuation Firm, including such facts and circumstances that constitute
the basis for a Revaluation Event with respect to such Eligible Collateral Obligation, if applicable.

 

“Variable
Funding Asset” means any Revolving Loan, Delayed Drawdown Loan or other asset that by its terms may require one or more
future advances to be made to the related Obligor by any lender thereon or owner thereof.

 

“Volcker Rule”
means Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder.

 

“Warrant Asset”
means any equity purchase warrants or similar rights convertible into or exchangeable or exercisable for any equity interests received
by the applicable Loan Party as an “equity kicker” from the Obligor in connection with a Collateral Obligation.

 

“Warranty
Collateral Obligation” has the meaning set forth in Section 9.35.

 

“Weighted
Average Advance Rate” means, as of any date of determination with respect to all Eligible Collateral Obligations included
in the Adjusted Aggregate Eligible Collateral Obligation Balance, the number obtained by dividing (i) the amount obtained by summing
the products obtained by multiplying (a) the Advance Rate of each such Eligible Collateral Obligation by (b) such Eligible
Collateral Obligation’s contribution to the Adjusted Aggregate Eligible Collateral Obligation Balance by (ii) the Adjusted
Aggregate Eligible Collateral Obligation Balance, in each case, as of such date.

 

“Weighted
Average Coupon” means, as of any day, the number expressed as a percentage obtained by dividing (i) the sum for each
Eligible Collateral Obligation (including, for any Deferrable Collateral Obligation, only the required current cash pay interest
thereon) that is a Fixed Rate Collateral Obligation of (x) the interest rate for each such Collateral Obligation minus the Applicable
Interest Rate multiplied by (y) the outstanding principal balance of each such Collateral Obligation by (ii) the aggregate
outstanding principal balance for Fixed Rate Collateral Obligations.

 

“Weighted
Average Life” means, as of any day with respect to all Eligible Collateral Obligations included in the Collateral, the
number of years following such date obtained by dividing (i) the amount obtained by summing the products obtained by multiplying
(a) the Average Life at such time of each such Eligible Collateral Obligation by (b) the outstanding principal balance
of such Collateral Obligation by (ii) the aggregate outstanding principal balance of all Eligible Collateral Obligations.

 

“Weighted
Average Spread” means, as of any day, the number expressed as a percentage equal to (i) the Aggregate Funded Spread divided
by (ii) the aggregate outstanding principal balance of all Eligible Collateral Obligations.

 

“Weighted
Average Unfunded Advance Rate” means, as of any date of determination with respect to all Eligible Collateral Obligations
that are Variable Funding Assets included in the Adjusted Aggregate Eligible Collateral Obligation Balance, the number obtained
by dividing (i) the amount obtained by summing the products obtained by multiplying (a) the Advance Rate of each such Variable
Funding Asset by (b) such Variable Funding Asset’s contribution to the Adjusted Aggregate Eligible Collateral Obligation
Balance by (ii) the sum of all Variable Funding Assets’ contributions to the Adjusted Aggregate Eligible Collateral Obligation
Balance.

 

    	 	-58-	 

     

    

 

“Withholding
Agent” means the Borrower, the Facility Agent, the Collateral Agent and the Servicer.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

“written”
or “in writing” (and other variations thereof) means any form of written communication or a communication by
means of telex, telecopier device, telegraph or cable.

 

“Yield”
means the sum of the following, with respect to any Accrual Period and each Eligible Currency, the sum for each day in such Accrual
Period of amounts determined in accordance with the following formula:

 

IR
x L

D

	 	 	 	 
	where:	IR	=	the
    Interest Rate applicable to such Advance on such day during such Collection Period;
	 	L	=	the outstanding principal amount of such Advance on such day; and
	 	D	=	the actual number of days (including the first day but excluding the last day) occurring during the period for which such Yield is payable over a year comprised of (x) with respect to Dollar Advances and Euro Advances, 360 days; provided that the Yield for any Note accruing interest at the Alternate Base Rate shall be computed on the basis of the actual number of days elapsed over a year comprised of 360 days, and (y) with respect to GBP Advances, 365 days;

 

provided that
(i) no provision of this Agreement shall require the payment or permit the collection of Yield in excess of the maximum permitted
by Applicable Law and (ii) Yield shall not be considered paid by any distribution if at any time such distribution is later required
to be rescinded by the Lender to the Borrower or any other Person for any reason including, such distribution becoming void or
otherwise avoidable under any statutory provision or common law or equitable action, including, any provision of the Bankruptcy
Code.

 

    	 	-59-	 

     

    

 

Section 1.2           Other
Definitional Provisions. (a)  Unless otherwise specified therein, all terms defined in this Agreement have the meanings
as so defined herein when used in the Notes or any other Transaction Document, certificate, report or other document made or delivered
pursuant hereto or thereto to the extent used as capitalized terms therein.

 

(b)       Each
term defined in the singular form in Section 1.1 or elsewhere in this Agreement shall mean the plural thereof when
the plural form of such term is used in this Agreement, the Notes or any other Transaction Document, certificate, report or other
document made or delivered pursuant hereto or thereto, and each term defined in the plural form in Section 1.1 shall
mean the singular thereof when the singular form of such term is used herein or therein.

 

(c)       The
words “hereof,” “herein,” “hereunder” and similar terms when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this Agreement, the term “including” means “including
without limitation,” and article, section, subsection, schedule and exhibit references herein are references to articles,
sections, subsections, schedules and exhibits to this Agreement unless otherwise specified.

 

(d)       The
following terms which are defined in the UCC in effect in the State of New York on the date hereof are used herein as so defined:
Accounts, Certificated Securities, Chattel Paper, Control, Deposit Account, Documents, Equipment, Financial Assets, Funds-Transfer
System, General Intangibles, Indorse and Indorsed, Instruments, Inventory, Investment Property, Proceeds, Securities Account, Securities
Intermediary, Security Certificates, Security Entitlements, Security Interest and Uncertificated Securities.

 

(e)       Unless
otherwise specified, each reference in this Agreement or in any other Transaction Document to a Transaction Document shall mean
such Transaction Document as the same may from time to time be amended, restated, supplemented or otherwise modified in accordance
with the terms of the Transaction Documents.

 

(f)       Unless
otherwise specified, each reference to any Applicable Law means such Applicable Law as amended, modified, codified, replaced or
reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and reference
to any Section or other provision of any Applicable Law means that provision of such Applicable Law from time to time in effect
and constituting the substantive amendment, modification, codification, replacement or reenactment of such Section or other provision.

 

(g)       All
calculations required to be made hereunder with respect to the Collateral Obligations, the Maximum Availability and the Borrowing
Base shall be made on a settlement date basis and after giving effect to (x) all purchases or sales to be entered into on such
date, (y) all Advances requested to be made on such date plus the balance of all unfunded Advances to be made in connection with
the Borrower’s purchase of previously requested (and approved) Collateral Obligations or any funding with respect to a Variable
Funding Asset included in the Collateral and (z) the application of any Principal Collections on deposit in the Principal Collection
Account necessary to settle all outstanding and unsettled assignments.

 

    	 	-60-	 

     

    

 

(h)       Any
use of the term “knowledge” or “actual knowledge” in this Agreement shall mean actual knowledge after reasonable
inquiry.

 

(i)       [Reserved].

 

(j)       For
purposes of this Agreement, an Event of Default or Servicer Default shall be deemed to be continuing until it is waived in accordance
with Section 17.2.

 

(k)       Unless
otherwise expressly stated in this Agreement, if at any time any change in generally accepted accounting principles (including
the adoption of IFRS) would affect the computation of any covenant (including the computation of any financial covenant) set forth
in this Agreement or any other Transaction Document, Borrower and Facility Agent shall negotiate in good faith to amend such covenant
to preserve the original intent in light of such change; provided, that, until so amended, (i) such covenant shall continue
to be computed in accordance with the application of generally accepted accounting principles prior to such change and (ii) to
the extent available to the Borrower, the Borrower shall provide to the Facility Agent a written reconciliation in form and substance
reasonably satisfactory to the Facility Agent, between calculations of such covenant made before and after giving effect to such
change in generally accepted accounting principles.

 

(l)       For
purposes of (i) complying with any requirement of this Agreement stated in Dollars and (ii) calculating any ratio or
other test set forth in this Agreement, the amount of any Collateral Obligation denominated in an Eligible Currency other than
Dollars shall be deemed to be the equivalent in Dollars of such amount of such Eligible Currency, as determined by the Servicer
using the Applicable Exchange Rate (provided that if such Collateral Obligation is denominated and payable in any Eligible
Currency other than Dollars and such Collateral Obligation is match-funded by Advances in the same Eligible Currency, then the
Dollar equivalent shall be determined by the Servicer using the Applicable Conversion Rate), and the amount of any Advance denominated
in an Eligible Currency other than Dollars shall be deemed to be the equivalent in Dollars of such amount of such Eligible Currency,
as determined by the Servicer using the Applicable Conversion Rate.

 

Article
II

THE FACILITY, ADVANCE PROCEDURES AND NOTES

 

Section 2.1           Advances.
(a)  On the terms and subject to the conditions set forth in this Agreement, each Lender Group hereby agrees to make
advances to or on behalf of the Borrower (individually, an “Advance” and collectively the “Advances”)
from time to time on any date (each such date on which an Advance is made, an “Advance Date”) during the period
from the Effective Date to the end of the Revolving Period; provided that there shall be no more than two (2) Advance Dates
during any calendar week. The CAD Advances shall be made solely by the CAD Lenders, the Dollar Advances shall be made solely by
the Dollar Lenders, the Euro Advances shall be made solely by the Euro Lenders, the AUD Advances shall be made solely by the AUD
Lenders and the GBP Advances shall be made solely by the GBP Lenders, in each case in accordance with Section 2.2(d).

 

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(b)       Under
no circumstances shall any Lender make an Advance if, after giving effect to such Advance and, if applicable, any purchase of Eligible
Collateral Obligations in connection therewith, (x) the Advances Outstanding would exceed the lowest of (i) the Facility Amount,
(ii) the Borrowing Base and (iii) the Maximum Availability or (y) in the case of an Advance in an Eligible Currency other
than Dollars, the Foreign Currency Advance Amount would exceed the Foreign Currency Sublimit on such day. Subject to the terms
of this Agreement, during the Revolving Period, the Borrower may borrow, reborrow, repay and prepay (subject to the provisions
of Section 2.4) one or more Advances.

 

Section 2.2           Funding
of Advances. (a)  Subject to the satisfaction of the conditions precedent set forth in Section 6.2, the
Borrower may request Advances hereunder by giving notice to the Facility Agent, each Agent and the Collateral Agent of the proposed
Advance at or prior to 2:00 p.m., New York City time, at least one (1) Business Day prior to the proposed Advance Date. Such notice
(herein called the “Advance Request”) shall be in the form of Exhibit C-1 and shall include (among other
things) the proposed Advance Date and amount of such proposed Advance, and shall, if applicable, be accompanied by an Asset Approval
Request setting forth the information required therein with respect to the Collateral Obligations to be acquired by the Borrower
on the Advance Date (if applicable). The amount of any Advance shall at least be equal to the least of (w) the Dollar equivalent
of $500,000 in an Eligible Currency, (x) the (1) Borrowing Base on such day minus (2) the Advances Outstanding on such
day, (y) the (1) Facility Amount on such day minus (2) the Advances Outstanding on such day and (z) only in the case
of Advances other than Dollar Advances, the (1) Foreign Currency Sublimit on such day minus (2) the Foreign Currency Advance
Amount on such day, in each case, before giving effect to the requested Advance as of such date. Any Advance Request given by the
Borrower pursuant to this Section 2.2, shall be irrevocable and binding on the Borrower. The Facility Agent shall have
no obligation to lend funds hereunder in its capacity as Facility Agent. Subject to receipt by the Collateral Agent of an Officer’s
Certificate of the Borrower confirming the satisfaction of the conditions precedent set forth in Section 6.2, and the
Collateral Agent’s receipt of such funds from the Lenders, the Collateral Agent shall make the proceeds of such requested
Advances available to the Borrower by deposit to such account as may be designated by the Borrower in the Advance Request in same
day funds no later than 3:00 p.m., New York City time, on such Advance Date.

 

(b)       Committed
Lender’s Commitment. At no time will any Uncommitted Lender have any obligation to fund an Advance. At all times on and
after the Conduit Advance Termination Date for a Conduit Lender in a Lender Group, all Advances shall be made by the Committed
Lenders in such Lender Group. At any time when any Uncommitted Lender has failed to or has rejected a request to fund an Advance,
its Agent shall so notify the Related Committed Lender and such Related Committed Lender shall fund such Advance. Notwithstanding
anything contained in this Section 2.2(b) or elsewhere in this Agreement to the contrary, no Committed Lender shall
be obligated to provide its Agent or the Borrower (or a Securitization Subsidiary as directed by the Borrower) with funds in connection
with an Advance in an amount that would result in the portion of the Advances then funded by it exceeding its Commitment then in
effect. The obligation of the Committed Lender in each Lender Group to remit any Advance shall be several from that of the other
Lenders, and the failure of any Committed Lender to so make such amount available to its Agent shall not relieve any other Committed
Lender of its obligation hereunder.

 

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(c)       Unfunded
Commitment Provisions. Notwithstanding anything to the contrary herein, upon the occurrence of the earlier of (i) any acceleration
of the maturity of Advances pursuant to Section 13.2 and (ii) the end of the Revolving Period, the Borrower shall (x) first,
deposit into the Unfunded Exposure Account any Unrestricted Cash to the extent utilized to calculate the Revolving Liquidity Adjustment
Amount and in the amount of the Aggregate Unfunded Amount minus the amount already on deposit in the Unfunded Exposure Account
and (y) second, request an Advance in the amount of the Aggregate Unfunded Amount minus the amount already on deposit in
the Unfunded Exposure Account (including the amount deposited pursuant to clause (x) above). Following receipt of such Advance
Request, the Lenders shall fund such requested amount by transferring such amount directly to the Collateral Custodian to be deposited
into the Unfunded Exposure Account, notwithstanding anything to the contrary herein (including, without limitation, the Borrower’s
failure to satisfy any of the conditions precedent set forth in Section 6.2).

 

(d)       Currency
Commitment Provisions.

 

(i)       Each
Lender hereby agrees that (A) each Advance funded in CADs shall be funded in its entirety by the CAD Lenders, (B) each
Advance funded in Dollars shall be funded in its entirety by the Dollar Lenders, (C) each Advance funded in Euros shall be
funded in its entirety by the Euro Lenders, (D) each Advance funded in AUDs shall be funded in its entirety by the AUD Lenders
and (E) each Advance funded in GBPs shall be funded in its entirety by the GBP Lenders; provided that, no Lender other
than DBNY and its Affiliates shall be required to fund any Advances in any Eligible Currency (other than Dollars) in an amount
greater than its Pro Rata Percentage of the Advances to be made in such Eligible Currency. On the date of each Advance, each Dollar
Lender (other than any Dollar Lenders who are also CAD Lenders, Euro Lenders and/or GBP Lenders, as applicable) shall purchase
Advances in Dollars from DBNY and its Affiliates in an aggregate amount such that, after giving effect to each such purchase, each
Lender owns its Pro Rata Percentage of the Advances Outstanding.

 

(ii)       On
each FX Evaluation Date, the Servicer on behalf of the Borrower shall calculate the Borrowing Base and deliver such calculation
to the Facility Agent, each Agent and each Lender, together with each Pro Rata Percentage and the actual percentage of the Advances
Outstanding owing to each Lender as of such FX Evaluation Date. If (x) there is on any FX Evaluation Date specified in clauses (a)
or (c) of the definition thereof, any difference, (y) there is on any other FX Evaluation Date, a difference of 2.5%
or more, in each case between any Lender’s actual percentage of the Advances Outstanding and such Lender’s Pro Rata
Percentage or (z) on any date any Lender has provided written notice to the Facility Agent and the Servicer that such Lender
directs (in its sole discretion) a reallocation under this Section 2.2(d)(ii), the Servicer shall deliver to the Facility
Agent, each Agent and each Lender (with a copy to the Collateral Custodian and the Loan Registrar) a notice substantially in the
form of Exhibit C-5 (each, an “FX Reallocation Notice”) directing each Dollar Lender (other than
any Dollar Lenders who are also AUD Lenders, CAD Lenders, Euro Lenders and/or GBP Lenders, as applicable) to sell to, or purchase
from DBNY and its Affiliates Advances in Dollars in an aggregate amount such that, after giving effect to each such purchase, each
Lender owns its Pro Rata Percentage of the Advances Outstanding. Each Lender agrees to comply with the direction provided in the
FX Reallocation Notice. Each such purchase and sale of Advances Outstanding shall occur on the Business Day following delivery
of the related FX Reallocation Notice (or, if the related FX Reallocation Notice is delivered to any Lender after 4:00 p.m., New
York City time, on the second Business Day following delivery of such FX Reallocation Notice).

 

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(iii)       Notwithstanding
anything to the contrary herein, at no time shall (v) any CAD Lender have any obligation to fund any Advance in an Eligible
Currency other than CADs, (w) any Dollar Lender have any obligation to fund any Advance in an Eligible Currency other than
Dollars, (x) any Euro Lender have any obligation to fund any Advance in an Eligible Currency other than Euros, (y) any AUD
Lender have any obligation to fund any Advance in an Eligible Currency other than AUDs or (z) any GBP Lender have any obligation
to fund any Advance in an Eligible Currency other than GBPs.

 

Section 2.3           Notes.
The Borrower shall, upon request of any Lender Group, on or after such Lender Group becomes a party hereto (whether on the Effective
Date or by assignment or otherwise), execute and deliver a Note evidencing the Advances of such Lender Group. Each such Note shall
be payable to the Agent for such Lender Group in a face amount equal to the applicable Lender Group’s Commitment as of the
Effective Date or the effective date on which such Lender Group becomes a party hereto, as applicable. The Borrower hereby irrevocably
authorizes each Agent to make (or cause to be made) appropriate notations on the grid attached to the Notes (or on any continuation
of such grid, or at the option of such Agent, in its records), which notations, if made, shall evidence, inter alia, the
date of the outstanding principal of the Advances evidenced thereby and each payment of principal thereon. Such notations shall
be rebuttably presumptive evidence of the subject matter thereof absent manifest error; provided, that the failure to make
any such notations shall not limit or otherwise affect any of the Obligations or any payment thereon.

 

Section 2.4           Repayment
and Prepayments. (a) The Borrower shall repay the Advances outstanding (i) on each Distribution Date to the extent required
to be paid hereunder and funds are available therefor pursuant to Section 8.3 and (ii) in full on the Facility Termination
Date.

 

(b)       Prior
to the Facility Termination Date, the Borrower may, from time to time, make a voluntary prepayment, in whole or in part, of the
outstanding principal amount of any Advance using Principal Collections on deposit in the Principal Collection Account or other
funds available to the Borrower on such date; provided, that

 

(i)       all
such voluntary prepayments shall require prior written notice to the Facility Agent (with a copy to the Collateral Agent and each
Agent) by 11:00 a.m. two (2) Business Days prior to such voluntary prepayment, which notice (herein called the “Prepayment
Notice”) shall be in the form of Exhibit C-4 and shall include (among other things) the proposed date of such
prepayment and the amount and allocation of such prepayment;

 

(ii)       in
the case of voluntary partial prepayments of Dollar Advances, each such voluntary partial prepayment shall be at least equal to
U.S.$500,000; and

 

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(iii)       each
prepayment shall be applied on the Business Day received by the Facility Agent if received by 3:00 p.m., New York City time.

 

Each such prepayment shall be subject to
the payment of any amounts required by Section 2.5(b) (if any) resulting from a prepayment or payment.

 

Section 2.5           Permanent
Reduction of Facility Amount. (a) The Borrower may at any time upon five Business Days’ prior written notice to
the Facility Agent (with a copy to the Collateral Agent), permanently reduce the Facility Amount (i) in whole or in part upon
payment in full (in accordance with Section 2.4) of the Advances Outstanding or (ii) in part by any pro forma
amount that the Facility Amount exceeds the Advances Outstanding (after giving effect to any concurrent prepayment thereof). In
connection with any permanent reduction of the Facility Amount under this Section 2.5(a), the Commitment of each Committed
Lender shall automatically, and without any further action by any party, be reduced pro rata with all other Committed Lenders
such that the sum of all Commitments will equal the newly reduced Facility Amount.

 

(b)       As
a condition precedent to any permanent reduction of the Facility Amount pursuant to Section 2.5(a), the Borrower shall
pay to each Lender, any applicable Prepayment Fee; provided that the Borrower shall not be required to pay such Prepayment
Fee (i) if the Lenders have, prior to the date of such reduction in whole or in part, declined a request for extension of the Revolving
Period under Section 2.6 on substantially the same terms as already set forth herein; (ii) to any Lender that is a Defaulting
Lender, (iii) during the continuation of a Non-Approval Event, at the time of any such permanent reduction of the Facility Amount;
(iv) if such reduction occurs within sixty (60) days following delivery by the Facility Agent of a request to comply with any changes
to the EU Securitization Rules that will impose any substantial obligations on the Borrower with respect to which it, or any Affiliate
or other entity managed by Golub Capital BDC 3, Inc. or an Affiliate thereof, is not currently required to comply in any other
financing; and (v) to any Lender that has, prior to the date of such permanent reduction in whole or in part, demanded the Borrower
pay any Increased Costs pursuant to Section 5.1.

 

Section 2.6           Extension
of Revolving Period. The Borrower may, at any time after the one-year anniversary of the Effective Date and prior to the date
that is 20 Business Days prior to the last date of the Revolving Period, deliver a written notice to the Facility Agent requesting
an extension of the Revolving Period for a minimum of twelve months. In the respective sole discretion of each Agent, the Revolving
Period shall be extended to a date mutually agreed upon by the Borrower and the Agents and in accordance with the other terms and
conditions as may be agreed to from time-to-time by the Borrower and the Facility Agent.

 

Section 2.7           Calculation
of Discount Factor.

 

(a)       In
connection with the purchase of each Collateral Obligation and prior to such Collateral Obligation being purchased by the Borrower
and included in the Collateral or in connection with an Asset Approval Request pursuant to clause (b) of the definition of Cut-Off
Date, the Facility Agent will assign (in its sole discretion) a Discount Factor for such Collateral Obligation, which Discount
Factor shall remain effective for such Collateral Obligation except as provided in clause (b) below.

 

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(b)       If
a Revaluation Event occurs with respect to any Collateral Obligation, the Discount Factor of such Collateral Obligation may be
amended by the Facility Agent, in its sole discretion. The Facility Agent will provide written notice of the revised Discount Factor
to the Borrower and the Servicer. To the extent the Servicer has actual knowledge or has received notice of any Revaluation Event
with respect to any Collateral Obligation, the Servicer shall give prompt notice thereof to the Facility Agent (but, in any event,
not later than three Business Days after it receives notice or gains actual knowledge thereof); provided that the Facility
Agent may not amend the Discount Factor of a Collateral Obligation which has been assigned a Discount Factor by an Approved Valuation
Firm as set forth in clause (c) below unless a subsequent Revaluation Event has occurred or the Leverage Multiple of such
Collateral Obligation becomes more than 1.0x higher than the Leverage Multiple at the time such Discount Factor was assigned by
the Approved Valuation Firm.

 

(c)       If
the Discount Factor with respect to any Collateral Obligation assigned by the Facility Agent following Revaluation Events of the
type set forth in clauses (b), (d), (e), (f) or (g) of the definition thereof pursuant to clause (b) above is below the
initial Discount Factor assigned by the Facility Agent when such Collateral Obligation was purchased and no prior Revaluation Event
has occurred, then the Borrower may (at its own expense) retain an Approved Valuation Firm to determine (in accordance with the
Valuation Standard) such Discount Factor within sixty (60) days after re-assignment of such Discount Factor; provided, that
(x) each determination by an Approved Valuation Firm of any Discount Factor shall be re-calculated, at the Borrower’s expense,
every six (6) months after the date of such determination, (y) once an Approved Valuation Firm is selected with respect to any
Eligible Collateral Obligation and the Borrower has provided the Facility Agent with notice of the exercise of its rights pursuant
to this clause (c), such Approved Valuation Firm that has been selected with respect to such Eligible Collateral Obligation may
not be changed without the prior written consent of the Facility Agent and (z) the Borrower may not utilize any valuation previously
provided by an Approved Valuation Firm for another entity managed by the Servicer or any of its Affiliates; provided, further,
that the re-calculated Discount Factor shall not be greater than the initial Discount Factor assigned by the Facility Agent when
the Collateral Obligation was purchased; provided, further, that with respect to any Collateral Obligation that is a Multiple
of Recurring Revenue Loan, if the Revenue of the Obligor of such Multiple of Recurring Revenue Loan has declined by at least 40%
since such Multiple of Recurring Revenue Loan was acquired by the Borrower or the related Obligor’s last quarter annualized
Revenue is less than $10,000,000 calculated using the most recent financial information of such Obligor received by the Borrower
(or otherwise available to the Borrower with respect to such Obligor), then the Borrower shall not be able to dispute the Facility
Agent’s reassignment.

 

Section 2.8           Increase
in Facility Amount. The Borrower may, with the prior written consent of the Facility Agent (which consent may be conditioned
on one or more conditions precedent in its sole discretion), (i) increase the Commitment of the existing Lender Groups (pro rata)
by an additional $250,000,000, (ii) add additional Lender Groups and/or (iii) increase the Commitment of any Lender Group, in each
case which shall increase the Facility Amount by the amount of the Commitment of each such existing or additional Lender Group.

 

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Section 2.9           Defaulting
Lenders.

 

(a)           Notwithstanding
anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that
Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

 

(i)           any
payment of principal, interest, fees or other amounts received by the Collateral Custodian for the account of such Defaulting Lender
(whether voluntary or mandatory, at maturity, or otherwise), shall be applied at such time or times as may be determined by the
Facility Agent and advised to the Collateral Custodian in writing as follows: first, to the payment of any amounts owing
by that Defaulting Lender to the Facility Agent hereunder; second, as the Borrower may request (so long as no Event of Default
or Unmatured Event of Default exists (except to the extent caused by such Defaulting Lender, as determined by the Borrower in its
sole discretion)), to the funding of any Advance in respect of which such Defaulting Lender has failed to fund its portion thereof
as required by this Agreement, as determined by the Servicer, the Facility Agent or the Collateral Agent; third, if so determined
by the Facility Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations
of that Defaulting Lender to fund future Advances under this Agreement; fourth, to the payment of any amounts owing to the
other Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender
as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Event
of Default or Unmatured Event of Default exists (except to the extent caused by such Defaulting Lender, as determined by the Facility
Agent in its sole discretion), to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent
jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and sixth, to that Defaulting Lender or as otherwise directed by a court of competent
jurisdiction; provided that if such payment is a payment of the principal amount of any Advances in respect of which such
Defaulting Lender has not fully funded its appropriate share, such payment shall be applied solely to pay the Advances of all non-Defaulting
Lenders on a pro rata basis prior to being applied to the payment of any Advances of such Defaulting Lender. Any payments,
prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting
Lender or to post cash collateral pursuant to this Section 2.9 shall be deemed paid to and redirected by such Defaulting
Lender, and each Lender irrevocably consents hereto; and

 

(ii)          for
any period during which such Lender is a Defaulting Lender, such Defaulting Lender shall not be entitled to receive any Undrawn
Fee for any period during which that Lender is a Defaulting Lender (and under no circumstance shall the Borrower retroactively
be or become required to pay any such fee that otherwise would have been required to have been paid to such Defaulting Lender).

 

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(b)       If
the Facility Agent and the Borrower determine in their respective sole discretion that a Defaulting Lender should no longer be
deemed to be a Defaulting Lender, the Facility Agent will so notify the parties hereto, whereupon as of the effective date specified
in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral),
such Lender will, to the extent applicable, purchase that portion of Advances outstanding of the other Lenders or take such other
actions as the Facility Agent may determine to be necessary to cause the Advances to be held on a pro rata basis by the
Lenders, whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively
with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; provided,
further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting
Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having
been a Defaulting Lender.

 

Section
2.10         Borrowing Base Deficiency Payments.

 

(a)       If,
on any day prior to the Facility Termination Date, (I) a Borrowing Base Deficiency (other than a Specified Borrowing Base Breach
or an Excepted Borrowing Base Breach) exists or the Minimum Equity Condition is not satisfied, then the Borrower shall, upon the
Borrower receiving written notice from the Facility Agent or obtaining knowledge thereof, either (i) cure such Borrowing Base Deficiency
or failure to satisfy the Minimum Equity Condition within two (2) Business Days by: (w) depositing cash in Dollars into the Principal
Collection Account, (x) repaying Advances Outstanding (together with any fees in respect of the amount so prepaid), (y) to the
extent such sales, in conjunction with other actions, eliminate such Borrowing Base Deficiency or satisfy the Minimum Equity Condition,
selling Loans in accordance with Section 9.34 and/or (z) selling additional Eligible Collateral Obligations in accordance
with Section 9.34 (or any combination of the foregoing) or (ii) if no Cure Notice has been delivered within the previous
six (6) calendar months, (x) within two (2) Business Days deliver a Cure Notice and (y) cure such Borrowing Base Deficiency or
failure to satisfy the Minimum Equity Condition within five (5) Business Days or (II) a Specified Borrowing Base Breach exists,
then the Borrower shall, upon the Borrower receiving written notice from the Facility Agent or obtaining knowledge thereof, cure
such Specified Borrowing Base Breach within 90 calendar days by: (w) depositing cash in Dollars into the Principal Collection Account,
(x) repaying Advances Outstanding (together with any fees in respect of the amount so prepaid), (y) to the extent such sales, in
conjunction with other actions, eliminate such Borrowing Base Deficiency or satisfy the Minimum Equity Condition, selling Loans
in accordance with Section 9.34 and/or (z) selling additional Eligible Collateral Obligations in accordance with Section
9.34 (or any combination of the foregoing).

 

(b)       No
later than 2:00 p.m. on the Business Day of the repayment of Advances Outstanding or sale of additional Eligible Collateral Obligations
pursuant to Section 2.10(a), the Borrower (or the Servicer on its behalf) shall deliver (i) to the Facility Agent (with
a copy to the Collateral Agent and the Collateral Custodian) notice of such repayment or sale and a duly completed Borrowing Base
Certificate, updated to the date such repayment or sale is being made and giving pro forma effect to such repayment or sale,
and (ii) to the Facility Agent, if applicable, a description of any Eligible Collateral Obligation and each Obligor of such Eligible
Collateral Obligation to be sold and an updated Collateral Obligation Schedule. Failure to deliver any such notice shall not affect
the satisfaction of the cure of the Borrowing Base Deficiency made pursuant to Section 2.10(a).

 

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Article
III

YIELD, UNDRAWN FEE, ETC.

 

Section 3.1           Yield
and Undrawn Fee. (a)  The Borrower hereby promises to pay, on the dates specified in Section 3.2, Yield
on the outstanding amount of each Advance (or each portion thereof) for the period commencing on the applicable Advance Date until
such Advance is paid in full. No provision of this Agreement or the Notes shall require the payment or permit the collection of
Yield in excess of the maximum amount permitted by Applicable Law.

 

(b)       The
Borrower shall pay the Undrawn Fee on the dates specified in Section 3.2.

 

Section 3.2           Yield
and Undrawn Fee Distribution Dates. Yield accrued on each Advance (including any previously accrued and unpaid Yield) and the
Undrawn Fee (as applicable) shall be payable, without duplication:

 

(a)       on
the Facility Termination Date;

 

(b)       on
the date of any payment or prepayment, in whole of the Advances Outstanding and the termination of this Agreement; and

 

(c)       on
each Distribution Date.

 

Section 3.3           [Reserved].

 

Section 3.4           Computation
of Yield, Fees, Etc. Each Agent (on behalf of its respective Lender Group) and the Facility Agent shall determine the applicable
Yield and all Fees to be paid by the Borrower on each Distribution Date for the related Accrual Period and shall advise the Collateral
Agent thereof in writing no later than the Determination Date immediately prior to such Distribution Date. Such reporting may also
include an accounting of any amounts due and payable pursuant to Sections 4.3 and 5.1.

 

Article
IV

PAYMENTS; TAXES

 

Section 4.1           Making
of Payments. Subject to, and in accordance with, the provisions hereof and Section 2.4 or Section 8.3(a), as
applicable, all payments of principal of or Yield on the Advances and other amounts due to the Lenders shall be made pursuant to
Section 8.3(a) no later than 3:00 p.m., New York City time, on the day when due in the applicable Eligible Currency
in immediately available funds. Payments received by any Lender or Agent after 3:00 p.m., New York City time, on any day will be
deemed to have been received by such Lender or Agent on the next following Business Day. The respective Agent for each Lender Group
shall allocate to the Lenders in its Lender Group each payment in respect of the Advances received by the respective Agent as provided
by Section 8.3(a) or Section 2.4, as applicable. Payments in reduction of the principal amount of the Advances shall
be allocated and applied to Lenders pro rata based on their respective portions of such Advances, or in any such case in
such other proportions as each affected Lender may agree upon in writing from time to time with such Agent and the Borrower. Payments
of Yield and Undrawn Fee shall be allocated and applied to Lenders pro rata based upon the respective amounts of such Yield
and Undrawn Fee due and payable to them.

 

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Section 4.2           Due
Date Extension. If any payment of principal or Yield with respect to any Advance falls due on a day which is not a Business
Day, then such due date shall be extended to the next following Business Day, and additional Yield shall accrue and be payable
for the period of such extension at the rate applicable to such Advance.

 

Section 4.3           Taxes.
(a)  Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Transaction
Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable
Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any
Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction
or withholding and shall timely pay the full amount deducted or withheld to the relevant Official Body in accordance with Applicable
Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after
such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under
this Section 4.3) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction
or withholding been made.

 

(b)       Payment
of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Official Body in accordance with Applicable Law,
or at the option of the Facility Agent timely reimburse it for the payment of, any Other Taxes.

 

(c)       Indemnification
by the Borrower. The Borrower shall indemnify each Recipient, on the immediately following Distribution Date (to the extent
of available amounts) after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed
or asserted on or attributable to amounts payable under this Section 4.3) payable or paid by such Recipient or required
to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Official Body. A certificate
as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Facility Agent), or by
the Facility Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

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(d)       Indemnification
by the Lenders. Each Lender shall severally indemnify the Facility Agent, within ten (10) days after demand therefor, for (i)
any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Facility
Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to
such Lender’s failure to comply with the provisions of Section 15.9 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 Facility Agent in connection
with any Transaction Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes
were correctly or legally imposed or asserted by the relevant Official Body. A certificate as to the amount of such payment or
liability delivered to any Lender by the Facility Agent shall be conclusive absent manifest error. Each Lender hereby authorizes
the Facility Agent to set off and apply any and all amounts at any time owing to such Lender under any Transaction Document or
otherwise payable by the Facility Agent to the Lender from any other source against any amount due to the Facility Agent under
this Section 4.3(d).

 

(e)       Evidence
of Payments. As soon as practicable after any payment of Taxes by the Borrower to an Official Body pursuant to this Section
4.3, the Borrower shall deliver to the Facility Agent the original or a certified copy of a receipt issued by such Official
Body evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Facility Agent.

 

(f)       Status
of Lenders.

 

(i)       Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Transaction
Document shall deliver to the Borrower, the Collateral Agent and the Facility Agent, at the time or times reasonably requested
by the Borrower, the Collateral Agent or the Facility Agent, such properly completed and executed documentation reasonably requested
by the Borrower, the Collateral Agent or the Facility Agent as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower, the Collateral Agent or the Facility
Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower, the Collateral
Agent or the Facility Agent as will enable the Borrower, the Collateral Agent or the Facility Agent to determine whether or not
such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in
the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set
forth in Section 4.3(f)(ii)(A), Section 4.3(f)(ii)(B) and Section 4.3(f)(ii)(D) below) shall not be required
if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)       Without
limiting the generality of the foregoing:

 

(A)       any
Lender that is a U.S. Person shall deliver to the Borrower and the Facility Agent on or prior to the date on which such Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Facility
Agent) executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

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(B)       any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Facility Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Facility Agent) whichever of the
following is applicable:

 

(I)       in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Transaction Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable,
establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of
such tax treaty and (y) with respect to any other applicable payments under any Transaction Document, IRS Form W-8BEN or IRS Form
W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business
profits” or “other income” article of such tax treaty;

 

(II)       executed
copies of IRS Form W-8ECI;

 

(III)       in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit G-1 to the effect that such Foreign Lender is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the
Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E,
as applicable; or

 

(IV)       to
the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN or IRS Form W-8BEN-E (as applicable), a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2
or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided
that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the
portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit
G-4 on behalf of each such direct and indirect partner;

 

(C)       any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Facility Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Facility Agent) executed copies
of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding
Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower
or the Facility Agent to determine the withholding or deduction required to be made; and

 

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(D)       if
a payment made to a Lender under any Transaction Document would be subject to U.S. federal withholding Tax imposed by FATCA if
such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Facility Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Borrower or the Facility Agent such documentation prescribed by Applicable
Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by
the Borrower or the Facility Agent as may be necessary for the Borrower and the Facility Agent to (x) comply with their obligations
under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or (y) determine the
amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any
amendments made to FATCA after the date of this Agreement.

 

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

 

(g)       Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this Section 4.3 (including by the payment of additional amounts
pursuant to this Section 4.3), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent
of indemnity payments made under this Section 4.3 with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Official
Body with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified
party the amount paid over pursuant to this Section 4.3(g) (plus any penalties, interest or other charges imposed by the
relevant Official Body) in the event that such indemnified party is required to repay such refund to such Official Body. Notwithstanding
anything to the contrary in this Section 4.3(g), in no event will the indemnified party be required to pay any amount to
an indemnifying party pursuant to this Section 4.3(g) the payment of which would place the indemnified party in a less favorable
net after-tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving
rise to such refund had never been paid. This Section 4.3(g) shall not be construed to require any indemnified party to
make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying
party or any other Person.

 

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(h)       Survival.
Each party’s obligations under this Section 4.3 shall survive the resignation or replacement of the Facility Agent
or any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all obligations
under any Transaction Document.

 

(i)       Defined
Terms. For purposes of this Section 4.3, the term “Applicable Law” includes FATCA.

 

Article
V

INCREASED COSTS, ETC.

 

Section 5.1           Increased
Costs, Capital Adequacy. (a) If, due to either (i) the introduction of or any change following the date hereof (including,
without limitation, any change by way of imposition or increase of reserve requirements) in or in the interpretation, administration
or application arising following the date hereof of any Applicable Law, in each case whether foreign or domestic or (ii) the
compliance with any guideline or request following the date hereof from any central bank or other Official Body (whether or not
having the force of law), (A) there shall be any increase in the cost to the Facility Agent, any Agent, any Lender, or any successor
or assign thereof (each of which shall be an “Affected Person”) of agreeing to make or making, funding or maintaining
any Advance (or any reduction of the amount of any payment (whether of principal, interest, fee, compensation or otherwise) to
any Affected Person hereunder), as the case may be, (B) there shall be any reduction in the amount of any sum received or receivable
by an Affected Person under this Agreement or under any other Transaction Document, or (C) any Recipient is subject to any Taxes
(other than (x) Indemnified Taxes, (y) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes
and (z) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits,
reserves, other liabilities or capital attributable thereto, then, in each case, the Borrower shall, after written demand by the
Facility Agent (which demand shall be accompanied by a statement setting forth in reasonable detail the basis for such demand),
on behalf of such Affected Person, pay to the Facility Agent, on behalf of such Affected Person, additional amounts sufficient
to compensate such Affected Person for such increased costs or reduced payments on the immediately following Distribution Date
(to the extent of available funds) after such demand.

 

(b)       If
either (i) the introduction of or any change following the date hereof in or in the interpretation, administration or application
arising following the date hereof of any law, guideline, rule or regulation, directive or request or (ii) the compliance by
any Affected Person with any law, guideline, rule, regulation, directive or request following the date hereof, from any central
bank, any Official Body or agency, including, without limitation, compliance by an Affected Person with any request or directive
regarding capital adequacy or liquidity, has or would have the effect of reducing the rate of return on the capital of any Affected
Person, as a consequence of its obligations hereunder or any related document or arising in connection herewith or therewith to
a level below that which any such Affected Person could have achieved but for such introduction, change or compliance (taking into
consideration the policies of such Affected Person with respect to capital adequacy), by an amount deemed by such Affected Person
to be material, then, from time to time, after demand by such Affected Person (which demand shall be accompanied by a statement
setting forth in reasonable detail the basis for such demand), the Borrower shall pay the Facility Agent on behalf of such Affected
Person such additional amounts as will compensate such Affected Person for such reduction but only to the extent there are amounts
available therefore on any given day pursuant to Section 8.3(a).

 

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(c)       If
an Affected Person shall at any time (without regard to whether any Basel III Regulations are then in effect) suffer or incur (i)
any explicit or implicit charge, assessment, cost or expense by reason of the amount or type of assets, capital or supply of funding
such Affected Person or any of its Affiliates is required or expected to maintain in connection with the transactions contemplated
herein, without regard to (A) whether such charge, assessment, cost or expense is imposed or recognized internally, externally
or inter-company or (B) whether it is determined in reference to a reduction in the rate of return on such Affected Person’s
or Affiliate’s assets or capital, an inherent cost of the establishment or maintenance of a reserve of stable funding, a
reduction in the amount of any sum received or receivable by such Affected Person or its Affiliates or otherwise, or (ii) any other
imputed cost or expense arising by reason of the actual or anticipated compliance by such Affected Person or any of its Affiliates
with the Basel III Regulations, then, upon demand by or on behalf of such Affected Person through the Facility Agent, the Borrower
shall pay to the Facility Agent, for the benefit of such Affected Person, such amount as will, in the determination of such Affected
Person, compensate such Affected Person therefor but only to the extent there are amounts available therefor on any given day pursuant
to Section 8.3(a). A certificate of the applicable Affected Person setting forth the amount or amounts necessary to compensate
the Affected Person under this Section 5.1(c) shall be delivered to the Borrower and shall be conclusive absent manifest
error.

 

(d)       In
determining any amount provided for in this Section 5.1, the Affected Person may use any reasonable averaging and attribution
methods. The Facility Agent, on behalf of any Affected Person making a claim under this Section 5.1, shall submit to
the Borrower a certificate setting forth in reasonable detail the basis for and the computations of such additional or increased
costs, which certificate shall be conclusive absent manifest error.

 

(e)       The
Borrower shall only be obligated to pay any amounts required by this Section 5.1 to an Affected Person to the extent that
such Affected Person certifies to the Borrower in writing that the Borrower and its Affiliates are not the only borrower or customer
that such Affected Person is charging for similar costs, damages, losses or expenses at such time.

 

Article
VI

EFFECTIVENESS; CONDITIONS TO ADVANCES

 

Section 6.1           Effectiveness.
This Agreement shall become effective on the first day (the “Effective Date”) on which the Facility Agent, on
behalf of the Lenders, shall have received the following, each in form and substance reasonably satisfactory to the Facility Agent:

 

    	 	-75-	 

     

    

 

(a)       Transaction
Documents. This Agreement and each other Transaction Document, in each case duly executed by each party thereto;

 

(b)       Notes.
For each Lender Group that has requested the same prior to the Effective Date, a Note duly completed and executed by the Borrower
and payable to the Agent for such Lender Group;

 

(c)       [Reserved];

 

(d)       Resolutions.
Certified copies of the resolutions of the board of managers (or similar items) of the Borrower, the Equityholder and the Servicer
approving the Transaction Documents to be delivered by it hereunder and the transactions contemplated hereby, certified by its
secretary or assistant secretary or other authorized officer;

 

(e)       Organizational
Documents. The certificate of formation (or similar organizational document) of each of the Borrower, the Equityholder and
the Servicer certified by the Secretary of State of its jurisdiction of organization; and a certified, executed copy of the Borrower’s,
the Equityholder’s and the Servicer’s organizational documents;

 

(f)       Good
Standing Certificates. Good standing certificates for each of the Borrower, the Equityholder and the Servicer issued by the
applicable Official Body of its jurisdiction of organization;

 

(g)       Incumbency.
A certificate of the secretary or assistant secretary of each of the Borrower, the Equityholder and the Servicer certifying the
names and true signatures of the officers authorized on its behalf to sign this Agreement and the other Transaction Documents to
be delivered by it;

 

(h)       Filings.
Copies of proper financing statements, as may be necessary or, in the opinion of the Facility Agent, desirable under the UCC of
all appropriate jurisdictions or any comparable law to perfect the security interest of the Collateral Agent on behalf of the Secured
Parties in all Collateral in which an interest may be pledged hereunder;

 

(i)       Opinions.
Legal opinions of Dechert LLP, special counsel for the Borrower, the Equityholder and the Servicer, and Nixon Peabody LLP, counsel
for the Collateral Agent, each in form and substance reasonably satisfactory to the Facility Agent covering such matters as the
Facility Agent may reasonably request;

 

(j)       No
Event of Default, etc. Each of the Transaction Documents is in full force and effect and no Event of Default or Unmatured Event
of Default has occurred and is continuing or will result from the issuance of any Notes and the borrowing hereunder;

 

(k)       Liens.
The Facility Agent shall have received (i) the results of a recent search by a Person satisfactory to the Facility Agent, of the
UCC, judgment, security interest and tax lien filings which may have been filed with respect to personal property of the Borrower,
and bankruptcy and pending lawsuits with respect to the Borrower and the results of such search shall be satisfactory to the Facility
Agent and (ii) filed UCC termination statements, if any, necessary to release all security interests and other rights of any Person
in any Collateral previously granted by the Borrower and any executed pay-off letters reasonably requested by the Facility Agent;

 

    	 	-76-	 

     

    

 

(l)       Payment
of Fees. The Facility Agent shall have received evidence, to its sole satisfaction, that all Fees due to the Lenders on the
Effective Date have been paid in full;

 

(m)       No
Material Adverse Effect. No Material Adverse Effect shall have occurred since the formation date of the Equityholder and no
litigation shall have commenced which, if successful, could have a Material Adverse Effect;

 

(n)       Financial
Statements. The Facility Agent has received the most recently available copies of the financial statements and reports described
in Section 7.5(l) certified by a Responsible Officer of the Servicer to be true and correct and such financial statements
fairly present in all material respects the financial condition of such Person as of the applicable date of issuance;

 

(o)       Compliance.
The Facility Agent and the Lenders shall have received sufficiently in advance of the Effective Date, all documents and other information
required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations,
including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001, Public Law 107-56;

 

(p)       [Reserved];
and

 

(q)       Beneficial
Ownership Certification. The Facility Agent shall have received the Beneficial Ownership Certification in respect of the Borrower.

 

(r)       Other.
Such other approvals, documents, opinions, certificates and reports as the Facility Agent may reasonably request.

 

Section 6.2           Advances
and Reinvestments. The making of any Advance (including the initial Advance hereunder) and any Reinvestment are all subject
to the condition that the Effective Date shall have occurred and to the following further conditions precedent that:

 

(a)       No
Event of Default, Etc. Each of the Transaction Documents shall be in full force and effect (unless terminated in accordance
with the terms of the Transaction Documents) and (i) no Event of Default or Unmatured Event of Default shall have occurred
and be continuing or will result from the making of such Advance or Reinvestment (other than in connection with an Advance made
pursuant to Section 2.2(c)), (ii) no Servicer Default or Unmatured Servicer Default shall have occurred and be continuing
or will result from the making of such Advance or Reinvestment (other than in connection with an Advance made pursuant to Section
2.2(c)), (iii) the representations and warranties of the Borrower and the Servicer contained herein and in the other Transaction
Documents shall be true and correct in all material respects as of the related Funding Date (or if such representation and warranty
specifically refers to an earlier date, such earlier date), with the same effect as though made on the date of (and after giving
effect to) such Advance or Reinvestment (or, if applicable, such earlier specified date), and (iv) after giving effect to
such Advance or Reinvestment (and any purchase of Eligible Collateral Obligations in connection therewith), (A) the Advances Outstanding
will not exceed the Borrowing Base, the Maximum Availability or the Facility Amount and (B) the Foreign Currency Advance Amount
will not exceed the Foreign Currency Sublimit;

 

    	 	-77-	 

     

    

 

(b)       Requests.
(i) In connection with the funding of any Advance pursuant to Section 2.2(a), the Collateral Agent, each Agent
and the Facility Agent shall have received the Advance Request for such Advance in accordance with Section 2.2(a),
together with all items required to be delivered in connection therewith and (ii) in connection with any Reinvestment, the
Collateral Agent, each Agent and the Facility Agent shall have received the Reinvestment Request for such Reinvestment in accordance
with Section 8.3(b), together with all items required to be delivered in connection therewith;

 

(c)       Revolving
Period. The Revolving Period shall not have ended;

 

(d)       Document
Checklist. The Collateral Custodian shall have received a Document Checklist (with a copy to the Facility Agent) for each Eligible
Collateral Obligation to be added to the Collateral on the related Funding Date;

 

(e)       Borrowing
Base Confirmation. The Collateral Agent and the Facility Agent shall have received an Officer’s Certificate of the Borrower
or the Servicer (which may be included as part of the Advance Request or Reinvestment Request) computed as of the date of such
request and after giving effect thereto and to the purchase by the Borrower of the Collateral Obligations to be purchased by it
on such date (if any), demonstrating that (A) the Advances Outstanding shall not exceed the lowest of (i) the Borrowing Base, (ii)
the Maximum Availability and (iii) the Facility Amount, calculated as of the Funding Date as if the Collateral Obligations to be
purchased by the Borrower on such Funding Date were owned by the Borrower and (B) in the case of an Advance in an Eligible Currency
other than Dollars, the Foreign Currency Advance Amount would not exceed the Foreign Currency Sublimit on such day;

 

(f)       Collateral
Quality Tests, Minimum Equity Condition. The Collateral Agent and the Facility Agent shall have received an Officer’s
Certificate (which may be included as part of the Advance Request or Reinvestment Request) computed as of the proposed Funding
Date and after giving effect thereto and to the purchase by the Borrower of the Collateral Obligations to be purchased by it on
such Funding Date, demonstrating that all of the Collateral Quality Tests and the Minimum Equity Condition are satisfied or, with
respect to Collateral Quality Tests (other than the Minimum Diversity Test) that are not satisfied, such Collateral Quality Tests
are improved, or if the Minimum Diversity Test is not satisfied, (x) the Minimum Diversity Test is maintained or improved and (y)
the Diversity Score is at least equal to 8;

 

(g)       Hedging
Agreements. The Facility Agent shall have received evidence, in form and substance satisfactory to the Required Lenders, that
the Borrower has entered into Hedging Agreements to the extent required by, and satisfying the requirements of, Section 10.6;

 

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(h)       Facility
Agent Approval. In connection with the acquisition of any Collateral Obligation (other than a Specified First Lien Loan) by
the Borrower or the incremental pledge of any Collateral Obligation owned by the Borrower, (1) the Borrower (and the Equityholder,
if the Servicer is not an Affiliate of the Equityholder) shall have received an Asset Approval Notice with respect to such Collateral
Obligation from the Facility Agent (and the Borrower shall provide a copy thereof to the Collateral Agent and each Agent) and (2)
the Borrower (or the Servicer on its behalf) shall have given electronic notice back to the Facility Agent that it acknowledges
and agrees to the terms set forth in the related Asset Approval Notice;

 

(i)       Permitted
Use. The proceeds of any Advance or Reinvestment will be used solely by the Borrower (A) to acquire Collateral Obligations
as identified on the applicable Asset Approval Request, (B) to satisfy any unfunded commitments in connection with any Variable
Funding Asset or (C) to make a distribution pursuant to Section 10.16;

 

(j)       Appraised
Value. In connection with the acquisition of each Asset Based Loan and within the time periods set forth below, the Borrower
or the Servicer (on behalf of the Borrower) shall have retained or shall have caused the Obligor to retain an Approved Valuation
Firm to calculate the Appraised Value of (A) with respect to any such Collateral Obligation that has intellectual property, equipment
or real property, as the case may be, in its borrowing base, the collateral securing such Collateral Obligation within twelve (12)
months prior to the acquisition of such Collateral Obligation and inclusion into the Collateral and (B) with respect to all other
Asset Based Loans, the collateral securing such Collateral Obligation within six (6) months prior to the acquisition of such Collateral
Obligation and inclusion into the Collateral. The Servicer shall report the Approved Valuation Firm for such Collateral Obligation
to the Facility Agent in the Advance Request related to such Collateral Obligation;

 

(k)       Borrower’s
Certification. The Borrower shall have delivered to the Collateral Agent and the Facility Agent an Officer’s Certificate
(which may be included as part of the Advance Request or Reinvestment Request) dated the date of such requested Advance or Reinvestment
certifying that the conditions described in Sections 6.2(a) through (j) have been satisfied;

 

(l)       Rating
Letters. Solely with respect to the initial advance to be made by each Conduit Lender, the applicable Agent shall have received
a letter from each applicable Rating Agency confirming its rating of such Conduit Lender;

 

(m)      Equity
Contribution. Prior to the initial Advance hereunder, the Facility Agent shall have received satisfactory evidence that the
Equityholder has contributed Eligible Collateral Obligations with an aggregate Collateral Obligation Amount (minus the amount
of each Collateral Obligation included in the Excess Concentration Amount) and/or cash credited to the Principal Collection Account
in an aggregate amount of at least $20,000,000;

 

(n)       Establishment
of Dollar Accounts. Prior to the initial Advance in Dollars hereunder, evidence that each Account with respect to Dollars has
been established;

 

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(o)       Borrowing
Base Certificate. The Servicer (on behalf of the Borrower) shall have delivered the Borrowing Base Certificate to the Facility
Agent;

 

(p)       Establishment
of Other Accounts. Prior to the initial Advance in any currency other than Dollars hereunder or Reinvestment in or pledge of
Collateral Obligations denominated in any currency other than Dollars, evidence that each Account with respect to such currency
has been established; and

 

(q)       Other.
The Facility Agent shall have received such other approvals, documents, opinions, certificates and reports as it may request, which
request is reasonable as to scope, content and timing.

 

Section 6.3           Transfer
of Collateral Obligations and Permitted Investments. (a)  The Collateral Custodian shall hold all Certificated Securities
(whether Collateral Obligations or Permitted Investments) and Instruments delivered to it in physical form at its offices located
at c/o DB Services Americas, Inc., 5022 Gate Parkway, Suite 200, Jacksonville, Florida 32256.

 

(b)       On
the Effective Date (with respect to each Collateral Obligation and Permitted Investment owned by each Loan Party on such date)
and each time that the applicable Loan Party or the Servicer shall direct or cause the acquisition of any Collateral Obligation
or Permitted Investment, the applicable Loan Party or the Servicer shall, if such Permitted Investment or, in the case of a Collateral
Obligation, the related promissory note or assignment documentation has not already been delivered to the Collateral Custodian
in accordance with the requirements set forth in Section 18.3(a), cause the delivery of such Permitted Investment or, in
the case of a Collateral Obligation, the related promissory note or assignment documentation in accordance with the requirements
set forth in Section 18.3(a) to the Collateral Custodian to be credited by the Collateral Custodian to the Collection Account
in accordance with the terms of this Agreement.

 

(c)       The
applicable Loan Party (or, in the case of each Securitization Subsidiary, the Borrower on behalf of such Securitization Subsidiary)
or the Servicer shall cause all Collateral Obligations or Permitted Investments acquired by the applicable Loan Party to be transferred
to the Collateral Custodian for credit by it to the Collection Account, and shall cause all Collateral Obligations and Permitted
Investments acquired by the applicable Loan Party to be delivered to the Collateral Custodian by one of the following means (and
shall take any and all other actions necessary to create and perfect in favor of the Collateral Agent a valid security interest
in each Collateral Obligation and Permitted Investment (in each case, whether now existing or hereafter acquired), which security
interest shall be senior (subject to Permitted Liens) to that of any other creditor of the Borrower):

 

(i)       in
the case of an Instrument or a Certificated Security in registered form by having it Indorsed to the Collateral Custodian or in
blank by an effective Indorsement or registered in the name of the Collateral Custodian and by (A) delivering such Instrument
or Certificated Security to the Collateral Custodian at the Corporate Trust Office and (B) causing the Collateral Custodian
to maintain (on behalf of the Collateral Agent for the benefit of the Secured Parties) continuous possession of such Instrument
or Certificated Security at its offices located at c/o DB Services Americas, Inc., 5022 Gate Parkway, Suite 200, Jacksonville,
Florida 32256;

 

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(ii)       in
the case of an Uncertificated Security, by (A) causing the Collateral Custodian to become the registered owner of such Uncertificated
Security for the benefit of the Secured Parties and (B) causing such registration to remain effective;

 

(iii)       in
the case of any Security Entitlement, by causing each such Security Entitlement to be credited to an Account in the name of the
Borrower and subject to the prior Lien of the Collateral Agent for the benefit of the Secured Parties;

 

(iv)       in
the case of General Intangibles (including any Collateral Obligation or Permitted Investment not evidenced by an Instrument) by
filing, maintaining and continuing the effectiveness of, a financing statement naming the Borrower as debtor and the Collateral
Agent as secured party and describing the Collateral Obligation or Permitted Investment (or a description of “all assets”
of the Borrower) as the collateral at the filing office of the Secretary of State of Delaware; and

 

(v)       in
the case of the Collateral Obligation Files, by delivering each to the Collateral Custodian in accordance with the terms of Section
18.3.

 

Article
VII

ADMINISTRATION AND SERVICING OF COLLATERAL OBLIGATIONS

 

Section 7.1           Retention
and Termination of the Servicer. The servicing, administering and collection of the Collateral Obligations shall be conducted
by the Person designated as Servicer from time to time in accordance with this Section 7.1. Subject to early termination
due to the occurrence of a Servicer Default or as otherwise provided below in this Article VII, the Borrower hereby designates
Golub Capital BDC 3, Inc., and Golub Capital BDC 3, Inc. hereby agrees to serve, as Servicer until the termination of this Agreement.
The Servicer is not an agent of the Facility Agent, any Agent or any Lender.

 

Section 7.2           Resignation
and Removal of the Servicer; Appointment of Successor Servicer. (a)  If a Servicer Default shall occur and be continuing,
the Facility Agent by written notice given to the Servicer, may terminate all of the rights and obligations of the Servicer and
appoint a successor pursuant to the terms hereof (including, for the avoidance of doubt, the provisions set forth in Section
7.2(d) below). In addition, if the Servicer is terminated upon the occurrence of a Servicer Default, the Servicer shall, if
so requested by the Facility Agent, acting at the direction of the Required Lenders, deliver to any successor servicer copies of
its Records within five (5) Business Days after demand therefor and a computer tape or diskette (or any other means of electronic
transmission acceptable to such successor servicer) containing as of the close of business on the date of demand all of the data
maintained by the Servicer in computer format in connection with servicing the Collateral Obligations.

 

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(b)       The
Servicer shall not resign from the obligations and duties imposed on it by this Agreement as Servicer, unless it shall have assigned
the role of “Servicer” to an Affiliate; provided that the Facility Agent shall receive notice of any such assignment
to an Affiliate of the Servicer; provided, further, that such assignment shall be subject to the Facility Agent’s
customary “know your customer” inquiries.

 

(c)       Any
Person (i) into which the Servicer may be merged or consolidated in accordance with the terms of this Agreement, (ii) resulting
from any merger or consolidation to which the Servicer shall be a party, (iii) acquiring by conveyance, transfer or lease
substantially all of the assets of the Servicer, or (iv) succeeding to the business of the Servicer in any of the foregoing
cases, shall execute an agreement of assumption to perform every obligation of the Servicer under this Agreement and, whether or
not such assumption agreement is executed, shall be the successor to the Servicer under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties to this Agreement, anything in this Agreement to the contrary
notwithstanding.

 

(d)       Subject
to the last sentence of this Section 7.2(d), until a successor Servicer has commenced servicing activities in the place
of Golub Capital BDC 3, Inc., Golub Capital BDC 3, Inc. shall continue to perform the obligations of the Servicer hereunder. On
and after the termination of the Servicer pursuant to this Section 7.2, the successor servicer appointed by the Facility
Agent shall be the successor in all respects to the Servicer in its capacity as Servicer under this Agreement and the transactions
set forth or provided for in this Agreement and shall be subject to all the rights, responsibilities, restrictions, duties, liabilities
and termination provisions relating thereto placed on the Servicer by the terms and provisions of this Agreement. The Servicer
agrees to cooperate and use commercially reasonable efforts in effecting the transition of the responsibilities and rights of servicing
of the Collateral Obligations, including the transfer to any successor servicer for the administration by it of all cash amounts
that shall at the time be held by the Servicer for deposit, or have been deposited by the Servicer, or thereafter received with
respect to the Collateral Obligations and the delivery to any successor servicer in an orderly and timely fashion of all files
and records in its possession or reasonably obtainable by it with respect to the Collateral Obligations containing all information
necessary to enable the successor servicer to service the Collateral Obligations. Notwithstanding anything contained herein to
the contrary and to the extent permitted by Applicable Law without causing the Servicer to have liability, the termination of the
Servicer shall not become effective until an entity acceptable to the Facility Agent in its sole discretion shall have assumed
the responsibilities and obligations of the Servicer.

 

(e)       At
any time, the Facility Agent or any Lender may irrevocably waive any rights granted to such party under Section 7.2(a).
Any such waiver shall be in writing and executed by such party that is waiving its rights hereunder. A copy of such waiver shall
be promptly delivered by the waiving party to the Servicer and the Facility Agent.

 

Section 7.3           Duties
of the Servicer. The Servicer shall manage, service, administer and make collections on the Collateral Obligations and perform
the other actions required to be taken by the Servicer in accordance with the terms and provisions of this Agreement and the Servicing
Standard.

 

    	 	-82-	 

     

    

 

(a)       The
Servicer shall take or cause to be taken all such actions, as may be reasonably necessary or advisable to attempt to recover Collections
from time to time, all in accordance with (i) Applicable Law, (ii) the applicable Collateral Obligation and its Underlying
Instruments and (iii) the Servicing Standard. The Borrower hereby appoints the Servicer, from time to time designated pursuant
to Section 7.1, as agent for itself and in its name to enforce and administer its rights and interests in the Collections
and the related Collateral Obligations.

 

(b)       The
Servicer shall administer the Collections in accordance with the procedures described herein. The Servicer shall (i) instruct all
Obligors (or related agents or administrative agents) to deposit Collections directly into the Collection Account, (ii) deposit
all Collections received directly by it into the Collection Account within two (2) Business Day of receipt thereof and (iii) cause
the Equityholder and each administrative agent that is an Affiliate thereof to deposit all Collections received directly by the
Equityholder or Affiliate into the Collection Account within two (2) Business Day of receipt thereof. The Servicer shall identify
all Collections as either Principal Collections or Interest Collections, as applicable. The Servicer shall make such deposits or
payments by electronic funds transfer through the Automated Clearing House system, or by wire transfer. The Servicer may, on any
Determination Date or Distribution Date, instruct the Collateral Custodian to convert funds on deposit in the Collection Account
into any Eligible Currency using the Applicable Conversion Rate if, after giving effect to such exchange, (i) the Borrower is in
compliance with the Foreign Currency Sublimit and (ii) the Borrower will have sufficient amounts in the Eligible Currency being
converted to pay all amounts that it is aware will be payable pursuant to Sections 8.3(a)(i)(A)-(M) and 8.3(a)(ii)(A),
(B), (E), (G) and (J) (calculated on a pro forma basis) in such Eligible Currency on the immediately following Distribution
Date or such Distribution Date, as applicable. Such requirements shall be deemed satisfied upon delivery of instructions in respect
thereof from the Servicer to the Collateral Custodian.

 

(c)       The
Servicer shall maintain for each Loan Party and the Secured Parties in accordance with their respective interests all Records that
evidence or relate to the Collections not previously delivered to the Collateral Agent and shall, as soon as reasonably practicable
upon demand of the Facility Agent, make available, or, upon the Facility Agent’s demand following the occurrence and during
the continuation of a Servicer Default, deliver to the Facility Agent copies of all Records in its possession which evidence or
relate to the Collections.

 

(d)       The
Servicer shall, as soon as reasonably practicable following receipt thereof, turn over to the applicable Person any cash collections
or other cash proceeds received with respect to each Collateral Obligation that do not constitute Collections or were paid in connection
with a Retained Interest.

 

(e)       On
each Measurement Date, (i) the Servicer (on behalf of the Borrower) shall re-determine the status of each Eligible Collateral Obligation
as of such date and provide notice of any change in the status of any Eligible Collateral Obligation to the Collateral Agent and,
as a consequence thereof, Collateral Obligations that were previously Eligible Collateral Obligations on a prior Measurement Date
may be excluded from the Aggregate Eligible Collateral Obligation Amount on such Measurement Date and (ii) the Servicer shall provide
to the Facility Agent the Borrowing Base Certificate pursuant to Section 6.2(o).

 

    	 	-83-	 

     

    

 

(f)       The
Servicer may (with notice to the Facility Agent) execute any of its duties under this Agreement and the other Transaction Documents
by or through its subsidiaries, affiliates, agents or attorneys in fact; provided that, it shall remain liable for all such
duties as if it performed such duties itself.

 

Section 7.4           Representations
and Warranties of the Servicer. The Servicer represents, warrants and covenants as of the Effective Date and each Funding Date
as to itself:

 

(a)       Organization
and Good Standing. It has been duly organized and is validly existing as a corporation in good standing under the laws of its
jurisdiction of organization, with power and authority to own its properties and to conduct its business as such properties are
currently owned and such business is currently conducted;

 

(b)       Due
Qualification. It is duly qualified to do business as a corporation in good standing and has obtained all necessary licenses
and approvals in all jurisdictions where the failure to do so would have a Material Adverse Effect;

 

(c)       Power
and Authority. It has the power, authority and legal right to execute and deliver this Agreement and the Transaction Documents
to which it is a party (in any capacity) and to perform its obligations hereunder and thereunder; and the execution, delivery and
performance of this Agreement and the Transaction Documents to which it is a party (in any capacity) have been duly authorized
by the Servicer by all necessary corporate action;

 

(d)       Binding
Obligations. This Agreement and the Transaction Documents to which it is a party (in any capacity) have been duly executed
and delivered by the Servicer and, assuming due authorization, execution and delivery by each other party hereto and thereto, constitute
its legal, valid and binding obligations enforceable against it in accordance with their respective terms, except as such enforceability
may be limited by (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’
rights generally, (B) equitable limitations on the availability of specific remedies, regardless of whether such enforceability
is considered in a proceeding in equity or at law and (C) implied covenants of good faith and fair dealing;

 

(e)       No
Violation. The execution, delivery and performance of this Agreement and the Transaction Documents to which it is a party (in
any capacity), the consummation of the transactions contemplated thereby and the fulfillment of the terms thereof do not (A) conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default
under, its organizational documents, or any material indenture, agreement, mortgage, deed of trust or other instrument to which
it is a party or by which it or its properties are bound, (B) result in the creation or imposition of any Adverse Claim upon
any of its properties pursuant to the terms of any such material indenture, agreement, mortgage, deed of trust or other instrument
(except as may be created pursuant to this Agreement or any other Transaction Document), or (C) violate in any material respect
any Applicable Law except, in the case of subclauses (B) and (C), to the extent that such conflict or violation would not reasonably
be expected to have a Material Adverse Effect;

 

    	 	-84-	 

     

    

 

(f)       No
Proceedings. There are no proceedings or investigations pending or, to the best of the Servicer’s knowledge, threatened
against it, before any Official Body having jurisdiction over it or its properties (A) asserting the invalidity of any of
the Transaction Documents, (B) seeking to prevent the consummation of any of the transactions contemplated by the Transaction
Documents or (C) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect;

 

(g)       No
Consents. No consent, license, approval, authorization or order of, or registration, declaration or filing with, any Official
Body having jurisdiction over it or any of its properties is required to be made in connection with the execution, delivery or
performance of this Agreement and the Transaction Documents to which it is a party (in any capacity) or the consummation of the
transactions contemplated thereby, in each case other than (A) consents, licenses, approvals, authorizations, orders, registrations,
declarations or filings which have been obtained or made and continuation statements and renewals in respect thereof and (B) where
the lack of such consents, licenses, approvals, authorizations, orders, registrations, declarations or filings would not have a
Material Adverse Effect;

 

(h)       [Reserved];

 

(i)       Reports
Accurate. No Officer’s Certificate of the Servicer, Monthly Report, Advance Request, Borrowing Base Certificate, information,
exhibit, financial statement, document, book, record or report furnished by the Servicer to the Facility Agent, the Collateral
Agent, the Lenders, the Agents, or the Collateral Custodian in connection with this Agreement is inaccurate in any material respect
as of the date it is dated, and no such document contains any material misstatement of fact or omits to state a material fact or
any fact necessary to make the statements contained therein not misleading in any material respect; provided that, solely
with respect to written or electronic information furnished by the Servicer which was provided to the Servicer from an Obligor
with respect to a Loan, such information need only be accurate, true and correct to the knowledge of the Servicer; provided,
further, that the foregoing proviso shall not apply to any information from an Obligor presented in an Officer’s Certificate
of the Servicer, Monthly Report, Advance Request or Borrowing Base Certificate. Any projections or forward-looking information
(including such statements with respect to the collectability of, or risks or benefits associated with a Loan) provided by or on
behalf of the Servicer were prepared in good faith based on assumptions believed by the Servicer to be reasonable at the time so
prepared;

 

(j)       [Reserved];

 

(k)       Eligibility
of Collateral Obligations. All Collateral Obligations included as Eligible Collateral Obligations in the most recent calculation
of any Borrowing Base required to be determined hereunder were Eligible Collateral Obligations as of the date of such calculation;

 

(l)       Collections.
The Servicer acknowledges that all Collections received by it or its Affiliates (other than any Excluded Amount) are held and shall
be held in trust for the benefit of the Secured Parties until deposited into the Collection Account;

 

    	 	-85-	 

     

    

 

(m)       [Reserved];

 

(n)       Solvency.
The Servicer is not the subject of any Insolvency Event. The transactions under this Agreement and any other Transaction Document
to which the Servicer is a party do not and will not render the Servicer not solvent;

 

(o)       Exchange
Act Compliance; Regulations T, U and X. None of the transactions contemplated herein or the other Transaction Documents (including,
without limitation, the use of the Proceeds from the pledge of the Collateral) will violate or result in a violation of Section
7 of the Securities Exchange Act of 1934, or any regulations issued pursuant thereto, including, without limitation, Regulations
T, U and X of the Federal Reserve Board;

 

(p)       No
Injunctions. No injunction, writ, restraining order or other order of any nature materially adversely affects the Servicer’s
performance of its obligations under this Agreement or any Transaction Document to which the Servicer is a party;

 

(q)       [Reserved].

 

(r)       Allocation
of Charges. There is not any agreement or understanding between the Servicer and the Borrower (other than as expressly set
forth herein or as consented to by the Facility Agent), providing for the allocation or sharing of obligations to make payments
or otherwise in respect of any Taxes, fees, assessments or other governmental charges; and

 

(s)       Selection
Procedures. In selecting the Collateral Obligations hereunder and for Affiliates of the Borrower, no selection procedures were
employed which are intended to be adverse to the interests of any Agent or Lender.

 

Section 7.5           Covenants
of the Servicer. Until the date on or after the Facility Termination Date on which the Commitments have been terminated in
full and the Obligations (other than contingent Obligations for which no claim has been made) shall have been repaid in full:

 

(a)       Compliance
with Agreements and Applicable Laws. The Servicer shall perform each of its obligations under this Agreement and the other
Transaction Documents and comply with all Applicable Laws, in each case in all material respects, including those applicable to
the Collateral Obligations and all Collections thereof, except to the extent that the failure to so perform or comply would not
reasonably be expected to have a Material Adverse Effect.

 

(b)       Maintenance
of Existence and Conduct of Business. The Servicer shall: (i) do or cause to be done all things necessary to (A) preserve
and keep in full force and effect its existence as a corporation and its rights and franchises in the jurisdiction of its formation
and (B) qualify and remain qualified as a foreign corporation in good standing and preserve its rights and franchises in each
jurisdiction in which the failure to so qualify and remain qualified and preserve its rights and franchises would reasonably be
expected to have a Material Adverse Effect; (ii) continue to conduct its business substantially as now conducted or as otherwise
permitted hereunder or under its organizational documents; and (iii) at all times maintain, preserve and protect all of its
licenses, permits, charters and registrations except where the failure to maintain, preserve and protect such licenses, permits,
charters and registrations would not reasonably be expected to have a Material Adverse Effect.

 

    	 	-86-	 

     

    

 

(c)       Books
and Records. The Servicer shall keep proper books of record and account in which full and correct entries shall be made of
all financial transactions and the assets and business of the Servicer in accordance with GAAP, maintain and implement administrative
and operating procedures, and keep and maintain all documents, books, records and other information necessary or reasonably advisable
for the collection of all Collateral Obligations.

 

(d)       Payment,
Performance and Discharge of Obligations. The Servicer shall pay, perform and discharge or cause to be paid, performed and
discharged promptly all Charges payable by it except where the failure to so pay, discharge or otherwise satisfy such obligation
would not, individually or in the aggregate, be expected to have a Material Adverse Effect.

 

(e)       ERISA.
The Servicer shall give the Facility Agent and each Lender prompt written notice of any ERISA Event that, alone or together with
all other ERISA Events that have occurred, would reasonably be expected to have a Material Adverse Effect.

 

(f)       Compliance
with Collateral Obligations and Servicing Standard. The Servicer, at its expense, shall comply with the Servicing Standard
in all material respects with respect to all Collateral Obligations.

 

(g)       Maintain
Records of Collateral Obligations. The Servicer shall, at its own cost and expense, maintain reasonably satisfactory and complete
records of the Collateral, including a record of all payments received and all credits granted with respect to the Collateral and
all other dealings with the Collateral. The Servicer shall maintain its computer systems so that, from and after the time of sale
of any Collateral Obligation to such Loan Party, the Servicer’s master computer records (including any back-up archives)
that refer to such Collateral Obligation shall indicate the interest of any Loan Party and the Collateral Agent in such Collateral
Obligation and that such Collateral Obligation is owned by such Loan Party and has been pledged to the Collateral Agent for the
benefit of the Secured Parties pursuant to this Agreement.

 

(h)       [Reserved].

 

(i)       Mergers.
The Servicer shall not directly or indirectly, by operation of law or otherwise, merge with, consolidate with, acquire all or substantially
all of the assets or capital stock of, or otherwise combine with or acquire, any Person, except that the Servicer shall be allowed
to merge with any entity so long as the Servicer remains the surviving entity of such merger and such merger does not result in
a Change of Control. The Servicer shall give prior written notice of any merger to the Facility Agent.

 

    	 	-87-	 

     

    

 

(j)       Servicing
Obligations. The Servicer will not (i) agree to any amendment, waiver or other modification of any Transaction Document
to which it is a party and to which the Facility Agent is not a party without the prior written consent of the Facility Agent,
(ii) after the occurrence and during the continuation of an Event of Default or a Servicer Default, agree or permit the Borrower
to agree to a Material Modification with respect to any Collateral Obligation or (iii) interpose any claims, offsets or defenses
it may have as against the Borrower as a defense to its performance of its obligations in favor of any Affected Person hereunder
or under any other Transaction Documents.

 

(k)       [Reserved].

 

(l)       Obligor
Reports. The Servicer shall furnish to the Facility Agent, with respect to each Obligor: (i) to the extent received by any
Loan Party and/or the Servicer pursuant to the Underlying Instrument, the complete financial reporting package with respect to
such Obligor and with respect to each Loan for such Obligor provided to the applicable Loan Party and/or the Servicer quarterly
by such Obligor, which delivery shall be made within 60 days after the end of such Obligor’s fiscal quarters (excluding the
last fiscal quarter of such Obligor’s fiscal year) and within 120 days after the end of such Obligor’s fiscal year,
and (ii) asset and portfolio level monitoring reports prepared by the Servicer with respect to the Loans, which delivery shall
be made within 60 days of the end of such Obligor’s fiscal quarter (excluding the last fiscal quarter of such Obligor’s
fiscal year) and within 120 days after the end of such Obligor’s fiscal year. The Servicer will promptly deliver solely to
the Facility Agent, upon reasonable request and to the extent received by the applicable Loan Party and/or the Servicer, all other
documents and information required to be delivered by the Obligors to the applicable Loan Party with respect to any Loan included
in the Collateral. Upon demand by the Facility Agent, the Servicer will provide such other information as the Facility Agent may
reasonably request with respect to any Collateral Obligation or Obligor (to the extent reasonably available to the Servicer).

 

(m)       [Reserved].

 

(n)       Commingling.
The Servicer shall not, and shall not permit any of its Affiliates to, deposit any funds that do not constitute Collections or
other proceeds of any Collateral Obligations into the Collection Account.

 

(o)       Taxes.
The Equityholder shall file on a timely basis all federal and other material Tax returns (including foreign, federal, state, local
and otherwise) required to be filed, if any, and shall pay all federal and other material Taxes due and payable by it (other than
any amount the validity of which is contested in good faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP are provided on the books of the Equityholder).

 

(p)       Proceedings.
The Servicer shall furnish to the Facility Agent, as soon as possible and in any event within three (3) Business Days after the
Servicer receives notice or obtains actual knowledge thereof, notice of any settlement of, material judgment (including a material
judgment with respect to the liability phase of a bifurcated trial) in or commencement of any material labor controversy, material
litigation, material action, material suit or material proceeding before any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, affecting the Collateral, the Transaction Documents, the Collateral Agent’s
interest in the Collateral or the Servicer, in each case which could reasonably be expected to cause a material adverse effect.

 

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Section 7.6           Servicing
Fees; Payment of Certain Expenses by Servicer.

 

On each Distribution
Date, to the extent not waived, the Servicer shall be entitled to receive out of the Collection Account the Servicing Fee for the
related Collection Period pursuant to Section 8.3(a). The Servicer shall be required to pay all expenses incurred by
it in connection with its activities under this Agreement and each other Transaction Document.

 

Section 7.7           Collateral
Reporting. The Servicer shall use commercially reasonable efforts to cooperate with the Collateral Agent in the performance
of the Collateral Agent’s duties under Section 11.3. Without limiting the generality of the foregoing, the Servicer
shall supply in a timely fashion any information maintained by it that the Collateral Agent may from time to time request with
respect to the Collateral Obligations and reasonably necessary to complete the reports and certificates required to be prepared
by the Collateral Agent hereunder or required to permit the Collateral Agent to perform its obligations hereunder.

 

Section 7.8           Notices.
The Servicer shall deliver to the Facility Agent and the Collateral Agent, promptly after having obtained knowledge thereof, notice
of any Servicer Default, Event of Default or Material Modification. The Servicer shall deliver to the Facility Agent and the Collateral
Agent, promptly after a Responsible Officer having obtained knowledge thereof, but in no event later than two Business Days thereafter,
written notice in an Officer’s Certificate of any Unmatured Servicer Default or Unmatured Event of Default.

 

Section 7.9           Procedural
Review of Collateral Obligations; Access to Servicer and Servicer’s Records. (a) Each of the Borrower (including
on behalf of each Securitization Subsidiary) and the Servicer shall permit representatives of the Facility Agent (upon prior written
notice and only during the normal business hours of the Borrower and the Servicer) at such time as the Facility Agent shall reasonably
request (x) to inspect and make copies of and abstracts from its records relating to the Collateral Obligations, and (y) to
visit its properties in connection with the collection, processing or servicing of the Collateral Obligations for the purpose of
examining such records, and to discuss matters relating to the Collateral Obligations or such Person’s performance under
this Agreement and the other Transaction Documents with any officer or employee or auditor (if any) of such Person having knowledge
of such matters. Each Loan Party and the Servicer agrees to render to the Facility Agent such clerical and other assistance as
may be reasonably requested with regard to the foregoing; provided, that such assistance shall not interfere in any material
respect with the Servicer’s business and operations. So long as no Unmatured Event of Default, Event of Default, Unmatured
Servicer Default or Servicer Default has occurred and is continuing, such visits and inspections shall occur only (i) upon
three Business Days’ prior written notice, (ii) during normal business hours and (iii) no more than once in any calendar
year. During the existence of an Unmatured Event of Default, an Event of Default, an Unmatured Servicer Default or a Servicer Default,
there shall be no limit on the timing or number of such inspections and no prior notice will be required before any inspection.

 

    	 	-89-	 

     

    

 

(b)       Each
Loan Party (and in the case of the Securitization Subsidiaries, the Borrower on behalf of the Securitization Subsidiaries) and
the Servicer, as applicable, shall provide to the Facility Agent access to the Collateral Obligations and all other documents regarding
the Collateral Obligations included as part of the Collateral and the Related Security in each case, in its possession, in such
cases where the Facility Agent is required in connection with the enforcement of the rights or interests of the Lenders, or by
applicable statutes or regulations, to review such documentation, such access being afforded without charge but only (i) upon
three Business Days’ prior written notice (so long as no Unmatured Event of Default, Event of Default or Servicer Default
has occurred and is continuing), (ii) during normal business hours and (iii) up to once per calendar year (so long as no Unmatured
Event of Default, Event of Default or Servicer Default has occurred and is continuing). From and after the Effective Date and periodically
thereafter at the reasonable discretion of the Facility Agent, the Facility Agent may review the Borrower’s and the Servicer’s
collection and administration of the Collateral Obligations in order to assess compliance by the Servicer with the Servicer’s
written policies and procedures, as well as this Agreement and may, no more than once in any calendar year, conduct an audit of
the Collateral Obligations and Records in conjunction with such review, subject to the limits set forth in Section 7.9(d).

 

(c)       Nothing
in this Section 7.9 shall derogate from the obligation of any Loan Party and the Servicer to observe any Applicable
Law prohibiting disclosure of information regarding the Obligors, and the failure of the Servicer to provide access as a result
of such obligation shall not constitute a breach of this Section 7.9.

 

(d)       The
Borrower shall bear the costs and expenses of all audits and inspections permitted by this Section 7.9 as well as Section 18.6.

 

Article
VIII

ACCOUNTS; PAYMENTS

 

Section 8.1           Accounts.
(a)  On or prior to the Effective Date, the Servicer or each Securitization Subsidiary, as applicable, shall establish
each Account in the name of the Borrower and each Account shall be a segregated, non-interest bearing trust account established
with the Securities Intermediary, who shall forward funds from the Collection Account to the Collateral Agent upon its request
for application by the Collateral Agent pursuant to Section 8.3(a). If at any time a Responsible Officer of the Collateral
Agent obtains actual knowledge that any Account ceases to be an Eligible Account (with notice to the Servicer and the Facility
Agent), then the funds in such Account shall be transferred to an account at another institution where such account meets the requirements
of an Eligible Account.

 

Except as set
forth below, amounts on deposit in the Unfunded Exposure Account may be withdrawn by the Borrower (i) to fund any draw requests
of the relevant Obligors under any Variable Funding Asset, or (ii) to make a deposit into the Collections Account as Principal
Collections if, after giving effect to such withdrawal, the aggregate amount on deposit in the Unfunded Exposure Account is equal
to or greater than (i) prior to the end of the Revolving Period, the Revolving Liquidity Adjustment Amount and (ii) after the end
of the Revolving Period, the Aggregate Unfunded Amount.

 

    	 	-90-	 

     

    

 

Following the
Facility Termination Date, any draw request made by an Obligor under a Variable Funding Asset included in the Collateral, along
with wiring instructions for the applicable Obligor, shall be forwarded by the Servicer to the Collateral Agent (with a copy to
the Facility Agent) along with an instruction to the Collateral Agent to withdraw the applicable amount from the Unfunded Exposure
Account and a certification that the conditions to fund such draw are satisfied, and the Collateral Agent shall fund such draw
request in accordance with such instructions from the Servicer.

 

Following the
end of the Revolving Period, if a Loan Party shall receive any Principal Collections from an Obligor with respect to a Variable
Funding Asset included in the Collateral and, as of the date of such receipt (and after taking into account such repayment), the
aggregate amount on deposit in the Unfunded Exposure Account is less than the Aggregate Unfunded Amount (the amount of such shortfall,
in each case, the “Unfunded Exposure Shortfall”), the Servicer shall direct the Collateral Agent to and the
Collateral Agent shall deposit into the Unfunded Exposure Account an amount of such Principal Collections equal to the lesser of
(a) the aggregate amount of such Principal Collections and (b) the Unfunded Exposure Shortfall.

 

(b)       All
amounts held in any Account shall, to the extent permitted by Applicable Law, be invested by the Collateral Agent, as directed
by the Servicer in writing (or, if the Servicer fails to provide such direction, such amounts shall remain uninvested), in Permitted
Investments that mature (i) with respect to the Collection Account, not later than one Business Day prior to the Distribution Date
for the Collection Period to which such amounts relate and (ii) with respect to the Unfunded Exposure Account, on the immediately
following Business Day. Any such written direction shall certify that any such investment is authorized by this Section 8.1.
Investments in Permitted Investments shall be made in the name of the Borrower, and, except as specifically required below, such
investments shall not be sold or disposed of prior to their maturity. If any amounts are needed for disbursement from the Collection
Account and sufficient uninvested funds are not available therein to make such disbursement, the Collateral Agent shall cause to
be sold or otherwise converted to cash a sufficient amount of the investments in such account to make such disbursement in accordance
with and upon the written direction of the Servicer or, if the Servicer shall fail to give such direction, the Facility Agent.
The Collateral Agent shall, upon written request, provide the Facility Agent with all information in its possession regarding transfer
into and out of the Collection Account (including, but not limited to, the identity of the counterparty making or receiving such
transfer). In no event shall the Collateral Agent be liable for the selection of any investments or any losses in connection therewith,
or for any failure of the Servicer or the Facility Agent, as applicable, to timely provide investment instructions or disposition
instructions, as applicable, to the Collateral Agent. To the extent agreed to by the Borrower or the Servicer, the Collateral Agent
or the Collateral Custodian and their respective Affiliates shall be permitted to receive additional compensation that could be
deemed to be in the Collateral Agent’s or the Collateral Custodian’s economic self-interest for (i) serving as investment
adviser, administrator, shareholder, servicing agent, custodian or sub-custodian with respect to certain of the Permitted Investments,
(ii) using affiliates to effect transactions in certain Permitted Investments, and (iii) effecting transactions in certain investments.
Such compensation shall not be considered an amount that is reimbursable or payable pursuant to this Agreement.

 

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(c)       Neither
the Borrower nor the Servicer shall have any rights of direction or withdrawal, with respect to amounts held in any Account, except
to the extent explicitly set forth herein (including the withdrawal rights for the Unfunded Exposure Account set forth in Section
8.1(a)).

 

Subject to the other
provisions hereof, the Collateral Agent shall have sole Control (within the meaning of the UCC) over each Account and each such
investment and the income thereon, and any certificate or other instrument evidencing any such investment, if any, shall be delivered
to the Collateral Agent or its agent, together with each document of transfer, if any, necessary to transfer title to such investment
to the Collateral Agent in a manner that complies with this Section 8.1. All interest, dividends, gains upon sale and
other income from, or earnings on, investments of funds in the Accounts shall be deposited or transferred to the Collection Account
and distributed pursuant to Section 8.3(a).

 

(d)       The
Equityholder may, from time to time in its sole discretion (x) deposit amounts into the Principal Collection Account, the Interest
Collection Account or the Unfunded Exposure Account and/or (y) transfer Eligible Collateral Obligations as equity contributions
to the Borrower. All such amounts will be included in each applicable compliance calculation under this Agreement, including, without
limitation, calculation of the Borrowing Base, the Maximum Availability and the Minimum Equity Condition.

 

Section 8.2           Excluded
Amounts. The Servicer may direct the Collateral Agent and the Securities Intermediary to withdraw from the applicable Account
and pay to the Person entitled thereto any amounts credited thereto constituting Excluded Amounts if the Servicer has, prior to
such withdrawal and consent, delivered to the Facility Agent and the Collateral Agent a report setting forth the calculation of
such Excluded Amounts in form and substance reasonably satisfactory to the Facility Agent, which report shall include a brief description
of the facts and circumstances supporting such request and designate a date for the payment of such reimbursement, which date shall
not be earlier than two (2) Business Days following delivery of such notice.

 

Section 8.3           Distributions,
Reinvestment and Dividends. (a) On each Distribution Date, the Collateral Agent shall distribute from the Collection Account,
in accordance with the applicable Monthly Report prepared by the Collateral Agent and approved by the Servicer pursuant to Section
8.5, the Amount Available for such Distribution Date in the following order of priority:

 

(i)       From
the Interest Collection Account, the Amount Available constituting Interest Collections for such Distribution Date in the following
order of priority:

 

(A)       FIRST,
to the payment of taxes and governmental fees owing by the Borrower, if any, which expenses shall not exceed $50,000 in any calendar
year;

 

(B)       SECOND,
first (1) to the Collateral Agent, the Securities Intermediary and the Collateral Custodian, any accrued and unpaid Collateral
Agent Fees and Expenses and Collateral Custodian Fees and Expenses for the related Collection Period, which expenses shall not
exceed in the aggregate the amount of the Capped Fees/Expenses and second (2) to the Servicer, any accrued and unpaid Servicer
Expenses, which Servicer Expenses shall not exceed either (x) $25,000 on any Distribution Date or (y) $90,000 in any calendar year;

 

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(C)       THIRD,
pro rata, based on the amounts owed to such Persons under this Section 8.3(a)(i)(C), to the Lenders, an amount
equal to the Yield on the Advances accrued during the Accrual Period with respect to such Distribution Date (and any Yield with
respect to any prior Accrual Period to the extent not paid on a prior Distribution Date);

 

(D)       FOURTH,
pro rata, based on the amounts owed to such Persons under this Section 8.3(a)(i)(D), (1) to the Facility
Agent and the Agents on behalf of their respective Lenders, all accrued and unpaid Fees and Indemnified Amounts due to the Lenders,
the Agents and the Facility Agent and (2) to the Hedge Counterparties, any amounts owed on the current and prior Distribution Dates
to the Hedge Counterparties under Hedging Agreements (other than Hedge Breakage Costs), together with interest accrued thereon;

 

(E)       FIFTH,
during the Revolving Period, (1) first, to the Agents on behalf of their respective Lenders pro rata in accordance
with the amount of the Advances Outstanding in the amount necessary to eliminate any outstanding Borrowing Base Deficiency and
reduce the Advances Outstanding to an amount not to exceed the Maximum Availability, (2) second, if the Minimum Equity Condition
is not satisfied on such Distribution Date, (x) to the Agents on behalf of their respective Lenders pro rata in accordance
with the amount of the Advances Outstanding in the amount necessary to reduce the Advances Outstanding or (y) to the Principal
Collection Account as Principal Collections for application in accordance with Section 8.3(b) until the Minimum Equity Condition
is satisfied; (3) third, if the Diversity Score is less than 10 but greater than or equal to 8, to the Principal Collection
Account as Principal Collections for application in accordance with Section 8.3(b) in the amount necessary (as determined
by the Servicer in its reasonable discretion) to increase the Diversity Score above 10 and (4) fourth, to the Agents on
behalf of their respective Lenders pro rata in accordance with the amount of the Advances Outstanding in the amount necessary
to reduce the Advances Outstanding to an amount such that after giving effect to such reduction the Foreign Currency Advance Amount
is less than the Foreign Currency Sublimit;

 

(F)       SIXTH,
(1) during the Revolving Period, if the Diversity Score is less than 8, to the Agents on behalf of their respective Lenders pro
rata to repay the Advances Outstanding and (2) after the end of the Revolving Period, if the Diversity Score is less than 6,
to the Agents on behalf of their respective Lenders pro rata to repay the Advances Outstanding;

 

(G)       SEVENTH,
to the extent not waived by the Servicer, to the Servicer, any accrued and unpaid Servicing Fee for the related Collection Period;

 

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(H)       EIGHTH,
to any Affected Persons, any Increased Costs then due and owing;

 

(I)       NINTH,
pro rata based on amounts owed to such Persons under this Section 8.3(a)(i)(I), to the Hedge Counterparties, any
unpaid Hedge Breakage Costs, together with interest accrued thereon;

 

(J)       TENTH,
to the extent not previously paid pursuant to Section 8.3(a)(i)(A) above, to the payment of taxes and governmental fees
owing by the Borrower, if any;

 

(K)       ELEVENTH,
to the extent not previously paid by or on behalf of the Borrower, to each Indemnified Party, any Indemnified Amounts then due
and owing to each such Indemnified Party;

 

(L)       TWELFTH,
to the extent not previously paid pursuant to Section 8.3(a)(i)(B) above, to the Collateral Agent and the Collateral Custodian,
any Collateral Agent Fees and Expenses and Collateral Custodian Fees and Expenses due to the Collateral Agent and the Collateral
Custodian;

 

(M)       THIRTEENTH,
to pay any other amounts due and payable by the Borrower or otherwise under this Agreement and the other Transaction Documents
and not previously paid pursuant to this Section 8.3(a);

 

(N)       FOURTEENTH,
during the Revolving Period, (1) during an Unmatured Event of Default, to remain in the Interest Collection Account as Interest
Collections, and (2) otherwise, at the option of the Equityholder, either such Amount Available to the Equityholder or to remain
in the Principal Collection Account as Principal Collections; and

 

(O)       FIFTEENTH,
after the Revolving Period, (1) during an Unmatured Event of Default or Event of Default, to remain in the Interest Collection
Account as Interest Collections (other than amounts necessary to make any BDC Tax Distribution), and (2) otherwise, such remaining
Amount Available, to the Borrower.

 

(ii)       From
the Principal Collection Account, the Amount Available constituting Principal Collections for such Distribution Date in the following
order of priority:

 

(A)       FIRST,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clauses (A) through (F), in that order, but,
in each case, only to the extent not paid in full thereunder;

 

(B)       SECOND,
after the end of the Revolving Period, to the Agents on behalf of their respective Lenders pro rata to repay the Advances
Outstanding;

 

(C)       THIRD,
during the Revolving Period, in an amount directed by the Servicer (unless such entity is unaffiliated with the initial Servicer,
in which case the Equityholder), if any, to the Principal Collection Account as Principal Collections for application in accordance
with Section 8.3(b);

 

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(D)       FOURTH,
to pay, in accordance with Section 8.3(a)(i) above, the amount referred to in clause (G) of such Section 8.3(a)(i)
but, in each case, only to the extent not paid in full thereunder and not waived by the Servicer;

 

(E)       FIFTH,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clauses (H) and (I) of such Section 8.3(a)(i)
but, in each case, only to the extent not paid in full thereunder;

 

(F)       SIXTH,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clause (J) of such Section 8.3(a)(i)
but, in each case, only to the extent not paid in full thereunder

 

(G)       SEVENTH,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clause (K) of such Section 8.3(a)(i)
but only to the extent not paid in full thereunder;

 

(H)       EIGHTH,
to the extent not previously paid pursuant to Section 8.3(a)(i)(B) or Section 8.3(a)(i)(L), to the Collateral Agent
and the Collateral Custodian, any costs and expenses due to the Collateral Agent and the Collateral Custodian under the Transaction
Documents (other than Increased Costs and Indemnified Amounts);

 

(I)       NINTH,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clause (M) of such Section 8.3(a)(i)
but only to the extent not paid in full thereunder;

 

(J)       TENTH,
to pay, in accordance with Section 8.3(a)(i) above, the amounts referred to in clause (N) of such Section 8.3(a)(i)
but only to the extent not paid in full thereunder; and

 

(K)       ELEVENTH,
(1) during an Unmatured Event of Default or an Event of Default, to remain in the Principal Collection Account as Principal Collections
(other than amounts necessary to make any BDC Tax Distribution) and (2) otherwise, such remaining such Amount Available to the
Borrower.

 

(b)       During
the Revolving Period, the Borrower may withdraw from the Collection Account any Principal Collections and apply such Principal
Collections to (A) prepay the Advances Outstanding in accordance with Section 2.4 or (B) acquire additional Collateral Obligations
(each such reinvestment of Principal Collections, a “Reinvestment”), subject to the following conditions:

 

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(i)       the
Borrower shall have given written notice to the Collateral Agent and the Facility Agent of the proposed Reinvestment at or prior
to 3:00 p.m., New York City time, one Business Day prior to the proposed date of such Reinvestment (the “Reinvestment
Date”). Such notice (the “Reinvestment Request”) shall be in the form of Exhibit C-2 and shall
include (among other things) the proposed Reinvestment Date, the amount of such proposed Reinvestment and a Schedule of Collateral
Obligations setting forth the information required therein with respect to the Collateral Obligations to be acquired by the Borrower
on the Reinvestment Date (if applicable);

 

(ii)       each
condition precedent set forth in Section 6.2 shall be satisfied; and

 

(iii)       upon
the written request of the Borrower (or the Servicer on the Borrower’s behalf) delivered to the Collateral Agent no later
than 11:00 a.m. New York City time on the applicable Reinvestment Date, the Collateral Agent shall have provided to the Facility
Agent by facsimile or e-mail (to be received no later than 1:30 p.m. New York City time on that same day) a statement reflecting
the total amount on deposit on such day in the Collection Account.

 

(c)       During
the Revolving Period, the Borrower may direct the Collateral Agent to withdraw such funds for the purpose of making payments in
respect of the Advances Outstanding in the applicable Eligible Currency at such time in accordance with and subject to the terms
of Section 2.4.

 

Upon the satisfaction
of the applicable conditions set forth in Section 6.2 and Section 8.3 (as certified by the Borrower to the Collateral
Agent and the Facility Agent), the Collateral Agent shall release funds from the Principal Collection Account as directed by the
Servicer in an amount not to exceed the lesser of (x) the amount requested by the Servicer for reinvestment or repayment and (y)
the amount on deposit in the Principal Collection Account on such day.

 

(d)       (i)
For purposes of Section 8.3, any Amount Available on deposit in an Interest Collection Account or a Principal Collection
Account denominated in any Eligible Currency shall be applied on any Distribution Date (A) first, to make payments in such Eligible
Currency and (B) second, to make payments in any other Eligible Currency (pro rata based on available amounts from each
other Eligible Currency), as converted by the Borrower using the Applicable Conversion Rate; provided that such payments
shall be subject to availability of such funds pursuant to Section 8.3. For the avoidance of doubt, the Borrower shall only
be required to make payments pursuant to Section 8.3(a)(i)(E)(4) in an Eligible Currency other than Dollars to extent that
the Borrower has amounts available in such currency to make the payment.

 

    (ii) The
Borrower shall, on the Determination Date immediately preceding each Distribution Date, convert amounts on deposit in the Collection
Accounts into the applicable Eligible Currency to the extent necessary to make payments pursuant to Section 8.3 (as determined
by the Borrower using the Applicable Conversion Rate).

 

(e)       At
any time, the Borrower may withdraw from the Principal Collection Account the proceeds of any Advance on deposit therein as may
be needed to settle any pending acquisition of an Eligible Collateral Obligation.

 

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Section 8.4           Fees.
The Borrower shall pay the Undrawn Fee, the Make-Whole Fee, the Prepayment Fee and any other fees (collectively, “Fees”)
in the amounts and on the dates set forth herein or in one or more fee letter agreements, dated the date hereof (or dated the date
any Lender and its related Lender Group becomes a party hereto pursuant to an assignment or otherwise), signed by the Borrower,
the applicable Agent and the Facility Agent (as any such fee letter agreement may be amended, restated, supplemented or otherwise
modified from time to time, a “Fee Letter”).

 

Section 8.5           Monthly
Report. The Collateral Agent shall prepare (based on information provided to it by the Servicer, the Facility Agent and the
Lenders as set forth herein) a Monthly Report determined as of the close of business on each Determination Date and make available
such Monthly Report to the Facility Agent (including by electronic delivery to csg.india@db.com), the Borrower and the Servicer
on each Reporting Date starting with the Reporting Date in the first full calendar month after the Effective Date. If any party
receiving any Monthly Report disagrees with any items of such report, it shall contact the Collateral Agent and notify it of such
disputed item and provide reasonably sufficient information to correct such item, with (if other than the Facility Agent) a copy
of such notice and information to the Facility Agent. If the Collateral Agent agrees with any such correction and unless the Collateral
Agent is otherwise timely directed by the Facility Agent, the Collateral Agent shall distribute a revised Monthly Report on the
Business Day after it receives such information. If the Collateral Agent does not agree with any such correction or it is directed
by the Facility Agent that the Collateral Agent should not make such correction, the Collateral Agent shall (within one Business
Day) contact the Facility Agent and request instructions on how to proceed. The Facility Agent’s reasonable determination
with regard to any disputed item in the Monthly Report shall be final.

 

Article
IX

REPRESENTATIONS AND WARRANTIES OF EACH LOAN PARTY

 

In order to induce
the other parties hereto to enter into this Agreement and, in the case of the Lenders, to make Advances hereunder, each Loan Party
hereby represents and warrants to the Facility Agent, the Agents and the Lenders as to itself, as of the Effective Date and each
Funding Date, as follows:

 

Section 9.1           Organization
and Good Standing. It has been duly organized and is validly existing under the laws of the jurisdiction of its organization,
with power and authority to own its properties and to conduct its business as such properties are currently owned and such business
is currently conducted. It had at all relevant times and now has, power, authority and legal right (x) to acquire and own
the Collateral Obligations and the Related Security, and to grant to the Collateral Agent a security interest in the Collateral
Obligations and the Related Security and the other Collateral and (y) to enter into and perform its obligations under this
Agreement and the other Transaction Documents to which it is a party.

 

Section 9.2           Due
Qualification. It is duly qualified to do business and has obtained all necessary licenses and approvals and made all necessary
filings and registrations in all jurisdictions, except where the failure to do so would not reasonably be expected to have a Material
Adverse Effect.

 

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Section 9.3           Power
and Authority. It has the power, authority and legal right to execute and deliver this Agreement and the other Transaction
Documents to which it is a party and to perform its obligations hereunder and thereunder; it has full power, authority and legal
right to grant to the Collateral Agent, for the benefit of the Secured Parties, a valid and enforceable security interest in the
Collateral Obligations and the other Collateral and has duly authorized such grant by all necessary action and the execution, delivery
and performance of this Agreement and the other Transaction Documents to which it is a party have been duly authorized by it by
all necessary action.

 

Section 9.4           Binding
Obligations. This Agreement and the Transaction Documents to which it is a party have been duly executed and delivered by it
and are enforceable against it in accordance with their respective terms, except as such enforceability may be limited by (A) bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally, (B) equitable
limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in
equity or at law and (C) implied covenants of good faith and fair dealing.

 

Section 9.5           Security
Interest. This Agreement creates a valid and continuing Lien on the Collateral in favor of the Collateral Agent, on behalf
of the Secured Parties, which security interest is validly perfected under Article 9 of the UCC, and is enforceable as such against
creditors of and purchasers from such Loan Party; the Collateral is comprised of Instruments, Security Entitlements, General Intangibles,
Certificated Securities, Uncertificated Securities, Securities Accounts, Investment Property and Proceeds and such other categories
of collateral under the applicable UCC as to which such Loan Party has complied with its obligations as set forth herein; with
respect to Collateral that constitute Security Entitlements (a) all of such Security Entitlements have been credited to the
Accounts and the Securities Intermediary has agreed to treat all assets credited to the Accounts as Financial Assets, (b) such
Loan Party has taken all steps necessary to enable the Collateral Agent to obtain Control with respect to the Accounts and (c) the
Accounts are not in the name of any Person other than such Loan Party, subject to the Lien of the Collateral Agent for the benefit
of the Secured Parties; such Loan Party has not instructed (as defined in the Account Control Agreement) the Securities Intermediary
to comply with the entitlement order of any Person other than the Collateral Agent; provided that, until the Collateral
Agent delivers a Notice of Exclusive Control (as defined in the Account Control Agreement), such Loan Party may, or may cause the
Servicer to cause cash in the Accounts to be invested or distributed in accordance with this Agreement; all Accounts constitute
Securities Accounts; such Loan Party owns and has good and marketable title to the Collateral free and clear of any Lien (other
than Permitted Liens); such Loan Party has taken all necessary steps to file or authorize the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest
in that portion of the Collateral in which a security interest may be perfected by filing pursuant to Article 9 of the UCC as in
effect in the State of Delaware; all original executed copies of each underlying promissory note constituting or evidencing any
Collateral Obligation have been or, subject to the delivery requirements contained herein and/or Section 18.3, will be delivered
to the Collateral Custodian; the Borrower has received, or subject to the delivery requirements contained herein will receive,
a written acknowledgment from the Collateral Custodian that the Collateral Custodian or its bailee is holding each underlying promissory
note evidencing a Collateral Obligation solely on behalf of the Collateral Agent for the benefit of the Secured Parties; none of
the underlying promissory notes that constitute or evidence the Collateral Obligations has any marks or notations indicating that
they have been pledged, assigned or otherwise conveyed to any Person other than the Collateral Agent on behalf of the Secured Parties;
with respect to Collateral that constitutes a Certificated Security, such certificated security has been delivered to the Collateral
Custodian and, if in registered form, has been specially Indorsed (within the meaning of the UCC) to the Collateral Custodian or
in blank by an effective Indorsement or has been registered in the name of the Collateral Custodian upon original issue or registration
of transfer by the Borrower of such Certificated Security, in each case to be held by the Collateral Custodian on behalf of the
Collateral Agent for the benefit of the Secured Parties; and in the case of an Uncertificated Security, by (A) causing the
Collateral Custodian to become the registered owner of such uncertificated security and (B) causing such registration to remain
effective.

 

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Section 9.6           No
Violation. The execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party,
the consummation of the transactions contemplated hereby and thereby, and the fulfillment of the terms of this Agreement and the
other Transaction Documents to which it is a party, shall not conflict with, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time) a default under, its Constituent Documents, or any indenture, agreement,
mortgage, deed of trust or other instrument to which it is a party or by which it is bound or any of its properties are subject,
or result in the creation or imposition of any Lien (other than Permitted Liens) upon any of its properties pursuant to the terms
of any such indenture, agreement, mortgage, deed of trust or other instrument, or violate in any material respect any Applicable
Law or in any way materially adversely affect its ability to perform its obligations under this Agreement or the other Transaction
Documents to which it is a party.

 

Section 9.7           No
Proceedings. There are no proceedings or investigations pending or, to its knowledge, threatened against it, before any Official
Body having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement or any of the other Transaction
Documents, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any of the
other Transaction Documents, (C) seeking any determination or ruling that might materially and adversely affect the performance
by it of its obligations under, or the validity or enforceability of, this Agreement or any of the other Transaction Documents
or (D) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on any of the Collateral
or on the assignments and security interests granted by such Loan Party in this Agreement.

 

Section 9.8           No
Consents. It is not required to obtain the material consent of any other Person or any material approval, authorization, consent,
license, approval or authorization, or registration or declaration with, any Official Body having jurisdiction over it or its properties
in connection with the execution, delivery, performance, validity or enforceability of this Agreement or the other Transaction
Documents to which it is a party, in each case other than consents, licenses, approvals, authorizations, orders, registrations,
declarations or filings which have been obtained or made and continuation statements and renewals in respect thereof.

 

Section 9.9           Solvency.
It is solvent and will not become insolvent after giving effect to the transactions contemplated by this Agreement and the Transaction
Documents. After giving effect to the transactions contemplated by this Agreement and the other Transaction Documents, it will
have an adequate amount of capital to conduct its business in the foreseeable future.

 

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Section 9.10         Compliance
with Laws. It has complied and will comply in all material respects with all Applicable Laws, judgments, agreements with Official
Bodies, decrees and orders with respect to its business and properties and all Collateral.

 

Section 9.11         Taxes.
For U.S. federal income tax purposes, it is, and always has been, an entity disregarded as separate from the Equityholder and the
Equityholder is a U.S. Person. It has filed on a timely basis all federal and other material Tax returns required to be filed,
if any, and has paid all federal and other material Taxes due and payable by it, or levied or imposed against it or any of its
property (other than any amount the validity of which is currently being contested in good faith by appropriate proceedings and
with respect to which reserves in conformity with GAAP have been provided on the books of such Loan Party). Any Taxes payable by
such Loan Party in connection with the execution and delivery of this Agreement and the other Transaction Documents and the transactions
contemplated hereby or thereby including the transfer of each Collateral Obligation and the Related Security to such Loan Party
have been paid or shall have been paid if and when due at or prior to the Effective Date or the Advance Date, as applicable.

 

Section 9.12         Monthly
Report. Each Monthly Report is accurate in all material respects as of the date thereof.

 

Section 9.13         No
Liens, Etc. The Collateral and each part thereof is owned by such Loan Party free and clear of any Adverse Claim or restrictions
on transferability and such Loan Party has the full right, power and lawful authority to assign, transfer and pledge the same and
interests therein, and upon the making of each Advance, the Collateral Agent, for the benefit of the Secured Parties, will have
acquired a perfected, first priority and valid security interest (except, as to priority, for any Permitted Liens) in each Collateral
Obligation and the other Collateral, free and clear of any Adverse Claim or restrictions on transferability, to the extent (as
to perfection and priority with respect to such other Collateral) that a security interest in such other Collateral may be perfected
under the applicable UCC. Such Loan Party has not pledged, assigned, sold, granted a security interest in or otherwise conveyed
any of the Collateral and no effective financing statement (other than with respect to Permitted Liens) or other instrument similar
in effect naming or purportedly naming such Loan Party or any of its Affiliates as debtor and covering all or any part of the Collateral
is on file in any recording office, except such as may have been filed in favor of the Collateral Agent as “Secured Party”
pursuant hereto or as necessary or advisable in connection with the Sale Agreement; provided that, this sentence shall not
be construed so as to apply to any asset acquired from an Affiliate of the Borrower that was subject to the lien of a creditor
that was released on or prior to the sale of such Collateral to the Borrower. There are no judgments or Liens for Taxes with respect
to such Loan Party and no claim has been asserted with respect to the Taxes of such Loan Party (other than any amount the validity
of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided on the books of the Loan Party).

 

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Section 9.14         Information
True and Correct. All information (other than projections, forward-looking information, general economic data, industry information
or information relating to third parties) heretofore furnished by or on behalf of the Borrower in writing to any Agent, the Collateral
Custodian or the Facility Agent in connection with this Agreement or any transaction contemplated hereby (including, without limitation,
prior to the Effective Date but after taking into account all updates, modifications and supplements to such information) is (when
taken as a whole) true and correct in all material respects (or if not prepared by or under the direction of the Borrower, is true
and correct in all material respects to the Borrower’s knowledge) and does not omit to state a material fact necessary to
make the statements contained therein (when taken as a whole) not misleading (or, if not prepared by or under the direction of
the Borrower, does not omit to state such a fact to the Borrower’s knowledge). Without limiting the foregoing, all Collateral
Obligations included as Eligible Collateral Obligations in the calculation of the Borrowing Base in the most recently delivered
Monthly Report are Eligible Collateral Obligations as of the date of such calculation.

 

Section 9.15         Bulk
Sales. The grant of the security interest in the Collateral by such Loan Party to the Collateral Agent, for the benefit of
the Secured Parties, pursuant to this Agreement, is in the ordinary course of business for such Loan Party and is not subject to
the bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction.

 

Section 9.16         Collateral.
Except as otherwise expressly permitted or required by the terms of this Agreement, no item of Collateral has been sold, transferred,
assigned or pledged by the Borrower to any Person.

 

Section 9.17         Selection
Procedures. In selecting the Collateral Obligations hereunder and for Affiliates of the Borrower, no selection procedures were
employed which are intended to be adverse to the interests of the Facility Agent, any Agent or any Lender.

 

Section 9.18         Indebtedness.
Such Loan Party has no Indebtedness or other indebtedness, secured or unsecured, direct or contingent (including guaranteeing any
obligation), other than (i) Indebtedness incurred under the terms of the Transaction Documents and (ii) Indebtedness
incurred pursuant to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement and
the other Transaction Documents.

 

Section 9.19         No
Injunctions. No injunction, writ, restraining order or other order of any nature adversely affects the performance of its obligations
under this Agreement or any Transaction Document to which it is a party.

 

Section 9.20         No
Subsidiaries. Such Loan Party has no Subsidiaries other than, in the case of the Borrower, the Securitization Subsidiaries
party hereto.

 

Section 9.21         ERISA
Matters.

 

(a)       The
Borrower does not sponsor, maintain, or contribute to, and has never sponsored, maintained, or contributed to, and, except as would
not reasonably be expected to have a Material Adverse Effect, no ERISA Affiliate sponsors, maintains, contributes to, or has any
liability in respect of, or has ever sponsored, maintained, contributed to, or had any liability in respect of, a Plan.

 

    	 	-101-	 

     

    

 

(b)       No
ERISA Event has occurred on or prior to the date that this representation is made or deemed made that, whether alone or together
with all other ERISA Events that have occurred, would reasonably be expected to have a Material Adverse Effect.

 

(c)       The
Borrower is not, and will not become at any time while any Obligations are outstanding, a Benefit Plan Investor.

 

Section 9.22         Investment
Company Status. Such Loan Party is not an “investment company” as such terms are defined in the 1940 Act.

 

Section 9.23         Set-Off,
Etc. No Collateral Obligation has been compromised, adjusted, extended, satisfied, subordinated, rescinded, set-off or modified
by such Loan Party or the Obligor thereof, and no Collateral is subject to compromise, adjustment, extension, satisfaction, subordination,
rescission, set-off, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification,
whether arising out of transactions concerning the Collateral or otherwise, by such Loan Party or the Obligor with respect thereto,
except, in each case, pursuant to the Transaction Documents and for amendments, extensions and modifications, if any, to such Collateral
otherwise permitted hereby and in accordance with the Servicing Standard.

 

Section 9.24         Collections.
Such Loan Party acknowledges that (i) all Obligors (and related agents) have been directed to make all payments directly to the
Collection Account and (ii) all Collections received by it or its Affiliates with respect to the Collateral pledged hereunder are
held and shall be held in trust for the benefit of the Collateral Agent, on behalf of the Secured Parties until deposited into
the applicable Collection Account in accordance with Section 10.10.

 

Section 9.25         Value
Given. Such Loan Party has given fair consideration and reasonably equivalent value to the Equityholder in exchange for the
purchase of the Collateral Obligations (or any number of them). No such transfer has been made for or on account of an antecedent
debt and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code.

 

Section 9.26         Use
of Proceeds. Such Loan Party is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin
Stock and none of the proceeds of the Advances will be used, directly or indirectly, for a purpose that violates Regulation T,
Regulation U, Regulation X or any other regulation promulgated by the Federal Reserve Board from time to time.

 

Section 9.27         Separate
Existence. Such Loan Party is operated as an entity with assets and liabilities distinct from those of any of its Affiliates
or any Affiliates of the Equityholder, and such Loan Party hereby acknowledges that the Facility Agent, each of the Agents and
each of the Lenders are entering into the transactions contemplated by this Agreement in reliance upon such Loan Party’s
identity as a separate legal entity. Since its formation, such Loan Party has been (and will be) operated in such a manner as to
comply with the covenants set forth in Section 10.5.

 

    	 	-102-	 

     

    

 

There is not now, nor
will there be at any time in the future, any agreement or understanding between such Loan Party and the Equityholder (other than
as expressly set forth herein and the other Transaction Documents) providing for the allocation or sharing of obligations to make
payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

 

Section 9.28         Transaction
Documents. The Transaction Documents delivered, together with the Constituent Documents of the Borrower, to the Facility Agent
represent all material agreements between the Equityholder, on the one hand, and the Borrower, on the other. Upon the purchase
and/or contribution of each Collateral Obligation (or an interest in a Collateral Obligation) pursuant to the this Agreement or
the Sale Agreement, the Borrower shall be the lawful owner of, and have good title to, such Collateral Obligation and all assets
relating thereto, free and clear of any Adverse Claim. All such assets are transferred to the Borrower without recourse to the
Equityholder except as described in the Sale Agreement. The purchases of such assets by the Borrower constitute valid and true
sales for consideration (and not merely a pledge of such assets for security purposes) and the contributions of such assets received
by the Borrower constitute valid and true transfers for consideration, each enforceable against creditors of the Equityholder,
and no such assets shall constitute property of the Equityholder.

 

Section 9.29         EEA
Financial Institution. Such Loan Party is not an EEA Financial Institution.

 

Section 9.30         Anti-Terrorism,
Anti-Money Laundering. (a)  Neither such Loan Party nor any Affiliate, officer, employee or director, acting on behalf
of such Loan Party is (i) a country, territory, organization, person or entity named on any sanctions list administered or imposed
by the U.S. Government including, without limitation, the Office of Foreign Asset Control (“OFAC”) list, or
any other list maintained for the purposes of sanctions enforcement by any of the United Nations, the European Union, Her Majesty’s
Treasury in the UK, Germany, Canada, Australia, and any other country or multilateral organization (collectively, “Sanctions”),
including but not limited to Cuba, Iran, Syria, North Korea, and the Crimea region in Ukraine (the “Sanctioned Countries”);
(ii) a Person that resides, is organized or located in any of the Sanctioned Countries or which is designated as a “Non-Cooperative
Jurisdiction” by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or
through such a jurisdiction or any Sanctioned Countries or is owned 50% or more or otherwise controlled, directly or indirectly
by, or acting on behalf of, one or more Person who is the subject or target of Sanctions (a “Sanctions Target”);
(iii) a “Foreign Shell Bank” within the meaning of the USA Patriot Act, i.e., a foreign bank that does not have a physical
presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation
and supervision; or (iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the
United States Secretary of the Treasury under Sections 311 or 312 of the USA Patriot Act as warranting special measures due to
money laundering concerns. Such Loan Party is and each Affiliate, officer, employee or director, acting on behalf of such Loan
Party is (and is taking no action which would result in any such Person not being) in compliance with (a) all OFAC rules and regulations,
(b) all United States of America, United Kingdom, United Nations, European Union, German, Canadian, Australian and all other sanctions,
embargos and trade restrictions that such Loan Party or any of its Affiliates is subject and (c) the Anti-Money Laundering Laws.
In addition, the described purpose (“trade related business activities”) does not include any kind of activities
or business of or with any Person or in any country or territory that is subject to or the target of any sanctions administered
by the U.S. Government, OFAC, the United Kingdom, the European Union, Germany, Canada, Australia or the United Nations Security
Council (including the Sanctioned Countries) and does not involve commodities or services of a Sanctioned Country origin or shipped
to, through or from a Sanctioned Country, or on vessels or aircrafts owned or registered by a Sanctioned Country, or financed or
subsidized any of the foregoing.

 

    	 	-103-	 

     

    

 

(b)       Such
Loan Party has complied, in all material respects, with all applicable anti-money laundering laws and regulations, including without
limitation the USA Patriot Act (collectively, the “Anti-Money Laundering Laws”). No actions, suits, proceedings
or investigations by any court, governmental, or regulatory agency are ongoing or pending against such Loan Party, its directors,
officers or employees or anyone acting on its behalf in relation to a breach of the Anti-Money Laundering Laws, or, to the knowledge
of such Loan Party, threatened.

 

Section 9.31         Anti-Bribery
and Corruption. (a)  Neither such Loan Party nor, to the best of such Loan Party’s knowledge, any director,
officer, employee, or anyone acting on behalf of such Loan Party has engaged in any activity, or will take any action, directly
or indirectly, which would breach applicable anti-bribery and corruption laws and regulations, including but not limited to the
U.S. Foreign and Corrupt Practices Act 1977, as amended, and the Bribery Act 2010 of the United Kingdom (the “Anti-Bribery
and Corruption Laws”).

 

(b)       Such
Loan Party and their Affiliates have each conducted their businesses in compliance with Anti-Bribery and Corruption Laws and have
instituted and maintain policies and procedures reasonably designed to promote and ensure continued compliance with all Anti-Bribery
and Corruption Laws and with the representation and warranty contained herein.

 

(c)       No
actions, suits, proceedings or investigations by any court, governmental, or regulatory agency are ongoing or pending against such
Loan Party, its directors, officers or employees or anyone acting on its behalf in relation to a breach of the Anti-Bribery and
Corruption Laws, or, to the knowledge of such Loan Party, threatened.

 

(d)       Such
Loan Party will not directly or indirectly use, lend or contribute the proceeds of the Advances for any purpose that would breach
the Anti-Bribery and Corruption Laws.

 

Section 9.32         Volcker
Rule. To the best of the Borrower’s knowledge and belief, the Advances do not constitute an “ownership interest”
in the Borrower for purposes of the Volcker Rule.

 

Section 9.33         AIFMD.
Such Loan Party is not (i) an AIFM or (ii) an AIF managed by an AIFM (as such term is defined in the AIFMD) required to be authorized
or registered in accordance with AIFMD.

 

    	 	-104-	 

     

    

 

Section 9.34         Optional
Sales. (a) The Borrower shall have the right to sell all or a portion of the Collateral Obligations (each, an “Optional
Sale”), subject to the following terms and conditions:

 

(i)       immediately
after giving effect to such Optional Sale:

 

(A)       each
Collateral Quality Test is satisfied or improved;

 

(B)       the
Minimum Equity Condition is satisfied;

 

(C)       (1)
the Borrowing Base is greater than or equal to the Advances Outstanding and (2) the Foreign Currency Advance Amount shall not exceed
the Foreign Currency Sublimit; and

 

(D)       no
Event of Default, Unmatured Event of Default, Unmatured Servicer Default or Servicer Default shall have occurred and be continuing;

 

(ii)       at
least one (1) Business Day prior to the date of any Optional Sale, the Servicer, on behalf of the Borrower, shall give the Facility
Agent, the Collateral Custodian and the Collateral Agent written notice of such Optional Sale, which notice shall identify the
related Collateral subject to such Optional Sale and the expected proceeds from such Optional Sale and include an Officer’s
Certificate computed as of the date of such request and after giving effect to such Optional Sale, demonstrating that the Borrowing
Base is greater than or equal to the Advances Outstanding;

 

(iii)       such
Optional Sale shall be made by the Servicer, on behalf of the Borrower (A) in accordance with the Servicing Standard, (B) reflecting
arm’s length market terms and (C) in a transaction in which the Borrower makes no representations, warranties or covenants
and provides no indemnification for the benefit of any other party (other than those which are customarily made or provided in
connection with the sale of assets of such type);

 

(iv)       if
such Optional Sale is to an Affiliate of the Borrower or the Servicer after the end of the Revolving Period, the Facility Agent
has given its prior written consent;

 

(v)       in
no event shall the sum of the aggregate Principal Balance of Collateral Obligations sold pursuant to an Optional Sale (other than
sales to any Existing Golub BDC CLO pursuant to Section 9.36) exceed 25% of the highest aggregate Principal Balance of all
Collateral Obligations at any time during the preceding 12 calendar months; provided that any Collateral Obligations transferred
pursuant to an Optional Sale to the Servicer or an Affiliate of the Servicer with respect to a new issue collateralized loan obligation
managed by the Servicer or an Affiliate of the Servicer and underwritten, arranged and/or structured by the Facility Agent or any
Affiliate of the Facility Agent shall be excluded from the foregoing limit; and

 

(vi)       on
the date of such Optional Sale, all proceeds from such Optional Sale will be deposited directly into the Collection Account.

 

    	 	-105-	 

     

    

 

(b)       In
connection with any Optional Sale, following deposit of all proceeds from such Optional Sale into the Collection Account, the Collateral
Agent shall be deemed to release and transfer to the Borrower without recourse, representation or warranty all of the right, title
and interest of the Collateral Agent for the benefit of the Secured Parties in, to and under such Collateral Obligation(s) and
related Collateral subject to such Optional Sale and such portion of the Collateral so transferred shall be released from the Lien
of this Agreement.

 

(c)       The
Borrower hereby agrees to pay the reasonable and documented outside counsel legal fees and out-of-pocket expenses of the Facility
Agent, the Collateral Agent, the Collateral Custodian, each Agent and each Lender in connection with any Optional Sale (including,
but not limited to, expenses incurred in connection with the release of the Lien of the Collateral Agent, on behalf of the Secured
Parties, in the Collateral in connection with such Optional Sale).

 

(d)       In
connection with any Optional Sale, the Collateral Agent shall, at the sole expense of the Borrower, execute such instruments of
release with respect to the portion of the Collateral subject to such Optional Sale to the Borrower, in recordable form if necessary,
as the Borrower may reasonably request.

 

Section 9.35         Repurchase
or Substitution of Warranty Collateral Obligations. (a)        In the event (A) of a breach
of Section 9.5 or Section 9.13 with respect to a Collateral Obligation (or the Related Security and other related
collateral constituting part of the Collateral related to such Collateral Obligation) or (B) that, as of the related Cut-Off Date,
a Collateral Obligation did not satisfy the definition of “Eligible Collateral Obligation” (each such Collateral Obligation,
a “Warranty Collateral Obligation”), no later than 30 days after the earlier of (x) knowledge of such
breach on the part of the Equityholder or the Servicer and (y) receipt by the Equityholder or the Servicer of written notice
thereof given by the Facility Agent, the Borrower shall either (a) repay Advances Outstanding in an amount equal to the aggregate
Repurchase Amount with respect to the Warranty Collateral Obligation(s) to which such breach relates or (b) substitute for such
Warranty Collateral Obligation(s) one or more Eligible Collateral Obligations with an aggregate Collateral Obligation Amount at
least equal to the Repurchase Amount of the Warranty Collateral Obligation(s) being replaced; provided, that no such repayment
or substitution shall be required to be made with respect to any Warranty Collateral Obligation (and such Collateral Obligation
shall cease to be a Warranty Collateral Obligation) if, on or before the expiration of such 30 day period, the applicable
representation or warranty shall be made true and correct or the eligibility criteria set forth in the definition of “Eligible
Collateral Obligation” in the Loan Agreement that was not satisfied as of the applicable Cut-Off Date is satisfied; provided,
further, that during the Revolving Period no such repurchase or substitution shall be required to be made with respect to any Warranty
Collateral Obligation if, after giving effect to the Warranty Collateral Obligation, no Borrowing Base Deficiency exists.

 

Upon confirmation
of the deposit of the amounts set forth in this Section 9.35 into the Collection Account or the delivery by the Borrower
of a Substitute Eligible Collateral Obligation for each Warranty Collateral Obligation pursuant to this Section 9.35 (the
date of such confirmation or delivery, the “Release Date”), such Warranty Collateral Obligation and Related
Property shall be removed from the Collateral and, as applicable, the Substitute Eligible Collateral Obligation and Related Property
shall be included in the Collateral. On the Release Date of each Warranty Collateral Obligation, the Collateral Agent, for the
benefit of the Secured Parties, shall automatically and without further action be deemed to release to the Borrower, without recourse,
representation or warranty, all the right, title and interest and any Lien of the Collateral Agent, for the benefit of the Secured
Parties in, to and under the Warranty Collateral Obligation and any Related Property and all future monies due or to become due
with respect thereto.

 

    	 	-106-	 

     

    

 

Section 9.36         Affiliate
Transactions. (a) Notwithstanding anything to the contrary set forth herein or in any other Transaction Document, the
Equityholder (and Affiliates thereof) shall not reacquire from the Borrower and the Borrower shall not transfer to the Equityholder
or to Affiliates thereof, and none of the Equityholder nor any Affiliates thereof will have a right or ability to purchase, the
Collateral Obligations of the Borrower other than with respect to sales pursuant to Section 9.35, unless (i) such transaction
is at arm’s-length and for fair market value (except in the case of repurchases of Collateral Obligations by the Equityholder
pursuant to Section 6.1 of the Sale Agreement or substitutions of Collateral Obligations pursuant to Section 6.1 of the
Sale Agreement) and (ii) after the end of the Revolving Period if such sale is at a price that is less than par, without the prior
written consent of the Facility Agent.

 

(b)       Subject
to Section 9.36(d) and notwithstanding Section 9.34(a)(iv), the Borrower may make optional sales of Collateral Obligations
(i) to an Affiliate of the Borrower subject to satisfaction of the conditions and limitations set forth in Sections 9.34(a)(i)
and 9.34(a)(iii) and (ii) to an Existing Golub BDC CLO subject to satisfaction of the conditions and limitations set forth
in Sections 9.34(a)(i), 9.34(a)(iii) and 9.36(c).

 

(c)       Subject
to the satisfaction of the conditions set forth in Sections 9.34(a)(i), 9.34(a)(iii) and 9.34(a)(v), the Borrower
may, from time to time upon three (3) Business Days’ prior written notice to the Facility Agent (with a copy to the Collateral
Agent and the Collateral Custodian), sell all or a portion of the Collateral Obligations to one or more Existing Golub BDC CLOs,
which sales shall not be subject to the limitations elsewhere set forth in this Article IX other than as set forth in Section
9.36(d) below.

 

(d)       In
no event shall the sum of the aggregate Principal Balance of Collateral Obligations sold to an Existing Golub BDC CLO following
the six-month anniversary of the Effective Date exceed 20% of the highest aggregate Principal Balance of all Collateral Obligations
at any time during the preceding 12 calendar months; provided that (x) the Borrower may sell Collateral Obligations with
an aggregate Principal Balance up to an additional 20% of the highest aggregate Principal Balance of all Collateral Obligations
at any time during the preceding 12 calendar months in excess of the limitation set forth in this clause (d) so long as the Borrower
retains at least 33% of the Principal Balance of such Collateral Obligation and (y) such limitation shall not apply to (i) any
Collateral Obligations transferred to an Existing Golub BDC CLO with respect to a new issue collateralized loan obligation managed
by the Servicer or an Affiliate of the Servicer and underwritten, arranged and/or structured by the Facility Agent or any Affiliate
of the Facility Agent shall be excluded from the foregoing limit or (ii) any Collateral Obligations included in the Excess Concentration
Amount; provided, further that the Borrower may sell Collateral Obligations with an aggregate Principal Balance up
to an additional 10% of the highest aggregate Principal Balance of all Collateral Obligations at any time during the preceding
12 calendar months in excess of the limitations set forth in this clause (d) and the foregoing proviso so long as the Borrower
sells any such Collateral Obligations to an Existing Golub BDC CLO that is a collateralized loan obligation issuer.

 

    	 	-107-	 

     

    

 

Article
X

COVENANTS

 

From the date hereof
until the first day following the Facility Termination Date on which all Obligations shall have been finally and fully paid and
performed (other than as expressly survive the termination of this Agreement), each Loan Party hereby covenants and agrees with
the Lenders, the Agents and the Facility Agent that:

 

Section 10.1         Protection
of Security Interest of the Secured Parties. (a)  At or prior to the Effective Date, such Loan Party shall have filed
or caused to be filed a UCC-1 financing statement, naming such Loan Party as debtor and the Collateral Agent (for the benefit of
the Secured Parties) as secured party and describing the Collateral, with the office of the Secretary of State of the State of
Delaware. From time to time thereafter, the Borrower shall file such financing statements and cause to be filed such continuation
statements, all in such manner and in such places as may be required by Applicable Law fully to preserve, maintain and protect
the interest of the Collateral Agent in favor of the Secured Parties under this Agreement in the Collateral and in the proceeds
thereof. Such Loan Party shall deliver (or cause to be delivered) to the Collateral Agent file-stamped copies of, or filing receipts
for, any document filed as provided above, as soon as available following such filing. In the event that such Loan Party fails
to perform its obligations under this subsection, the Collateral Agent or the Facility Agent may (but shall have no obligation
to) do so, in each case at the expense of such Loan Party, however neither the Collateral Agent nor the Facility Agent shall have
any liability in connection therewith.

 

(b)       Such
Loan Party shall not change its name, jurisdiction, identity or corporate structure in any manner that would make any financing
statement or continuation statement filed by or on behalf of such Loan Party in accordance with Section 10.1(a) above seriously
misleading or change its jurisdiction of organization, unless such Loan Party shall have given the Facility Agent and the Collateral
Agent at least 30 days’ prior written notice thereof, and shall promptly file appropriate amendments to all previously filed
financing statements and continuation statements (and shall provide a copy of such amendments to the Collateral Agent and Facility
Agent together with an Officer’s Certificate to the effect that all appropriate amendments or other documents in respect
of previously filed statements have been filed).

 

(c)       The
Borrower shall maintain its computer systems, if any, so that, from and after the time of the first Advance under this Agreement,
the Borrower’s master computer records (including archives) that shall refer to the Collateral indicate clearly that such
Collateral is subject to the first priority security interest in favor of the Collateral Agent, for the benefit of the Secured
Parties. Indication of the Collateral Agent’s (for the benefit of the Secured Parties) security interest shall be deleted
from or modified on the Borrower’s computer systems when, and only when, the Collateral in question shall have been paid
in full, the security interest under this Agreement has been released in accordance with its terms, upon such Collateral Obligation
becoming a Repurchased Collateral Obligation or Substituted Collateral Obligation, or otherwise as expressly permitted by this
Agreement.

 

    	 	-108-	 

     

    

 

Section 10.2         Other
Liens or Interests. Except for the security interest granted hereunder and as otherwise permitted pursuant to Sections 9.34,
9.35 and 10.16, such Loan Party will not sell, pledge, assign or transfer to any other Person, or grant, create,
incur, assume or suffer to exist any Lien on the Collateral or any interest therein (other than Permitted Liens), and such Loan
Party shall defend the right, title, and interest of the Collateral Agent (for the benefit of the Secured Parties) and the Lenders
in and to the Collateral against all claims of third parties claiming through or under such Loan Party (other than Permitted Liens).

 

Section 10.3         Costs
and Expenses. The Borrower shall pay (or cause to be paid) all of its reasonable costs and disbursements in connection with
the performance of its obligations hereunder and under the Transaction Documents.

 

Section 10.4         Reporting
Requirements. Such Loan Party shall furnish, or cause to be furnished, to the Facility Agent, the Collateral Agent and each
Lender:

 

(a)       promptly
and in any event within two Business Days after a Responsible Officer of such Loan Party shall have knowledge of the occurrence
of an Event of Default, Unmatured Event of Default, Servicer Default or Unmatured Servicer Default, the statement of a Responsible
Officer of such Loan Party setting forth complete details of such event and the action which such Loan Party has taken, is taking
and proposes to take with respect thereto;

 

(b)       promptly,
from time to time, such other information, documents, records or reports respecting the Collateral Obligations or the Related Security,
the other Collateral or the condition or operations, financial or otherwise, of the Borrower as such Person may, from time to time,
reasonably request;

 

(c)       promptly,
in reasonable detail, notice of (i) any Adverse Claim known to it that is made or asserted against any of the Collateral and
(ii) the occurrence of any Revaluation Event or Material Modification with respect to any Collateral Obligation; provided,
that, the Servicer will be deemed to not have knowledge of any Revaluation Event that requires a determination be made by the Facility
Agent until such determination has been made;

 

(d)       promptly,
in reasonable detail, any new or updated information reasonably requested by a Lender in connection with “know your customer”
laws or any similar regulations; and

 

(e)       promptly
following any request therefor, such Loan Party shall deliver to the Facility Agent information and documentation reasonably requested
by the Facility Agent for purposes of compliance with its Beneficial Ownership Certification.

 

    	 	-109-	 

     

    

 

Section 10.5         Separate
Existence. (a)  Such Loan Party shall conduct its business solely in its own name through its duly authorized officers
or agents so as not to mislead others as to the identity of the entity with which such persons are concerned, and shall use its
best efforts to avoid the appearance that it is conducting business on behalf of any Affiliate thereof or that the assets of such
Loan Party are available to pay the creditors of any of its equityholders or any Affiliate thereof (it being understood that the
assets of the Securitization Subsidiaries shall be pledged to secure the obligations of the Borrower).

 

(b)       It
shall maintain records and books of account separate from those of any other Person, except to the extent that such Loan Party’s
financial and operating results are consolidated with those of the Equityholder in consolidated financial statements or to the
extent any Securitization Subsidiary’s financial and operating results are consolidated with those of a Loan Party.

 

(c)       It
shall pay its own operating expenses and liabilities from its own funds (other than in connection with administrative and other
expenses owed by Securitization Subsidiaries, which may be paid by the Borrower).

 

(d)       It
shall ensure that the annual financial statements of the Borrower and the Equityholder shall disclose the effects of the transactions
contemplated hereby in accordance with GAAP.

 

(e)       It
shall not hold itself out as being liable for the debts of any other Person. It shall not pledge its assets to secure the obligations
of any other Person. It shall not guarantee any obligation of any Person, including any Affiliate or become obligated for the debts
of any other Person or hold out its credit or assets as being available to pay the obligations of any other Person.

 

(f)       It
shall keep its assets and liabilities separate from those of all other entities. Except as expressly contemplated herein with respect
to Excluded Amounts, it shall not commingle its assets with assets of any other Person (other than any Securitization Subsidiary).

 

(g)       It
shall maintain bank accounts or other depository accounts separate from any other person or entity, including any Affiliate.

 

(h)       To
the extent required under GAAP, it shall ensure that any consolidated financial statements including the Borrower, if any, have
notes to the effect that the Borrower is a separate entity whose creditors have a claim on its assets prior to those assets becoming
available to its equityholders.

 

(i)       It
shall not (A) amend, supplement or otherwise modify its Constituent Documents, except in accordance therewith and, other than in
connection with entering into the Transaction Documents, with the prior written consent of the Facility Agent (which consent shall
not be unreasonably withheld, delayed or conditioned) or (B) divide or permit any division of itself.

 

    	 	-110-	 

     

    

 

(j)       It
shall at all times hold itself out to the public and all other Persons as separate from its Affiliates and from any other Person.

 

(k)       It
shall file its own tax returns separate from those of any other Person, except to the extent that it is treated as a “disregarded
entity” for tax purposes and is not required to file tax returns under Applicable Law, and shall pay any taxes required to
be paid under Applicable Law.

 

(l)       It
shall conduct its business only in its own name and comply with all organizational formalities necessary to maintain its separate
existence.

 

(m)       It
shall maintain separate financial statements, showing its assets and liabilities separate and apart from those of any other Person
and not have its assets listed on any financial statement of any other Person; provided, that its assets may be included
in a consolidated financial statement of the Equityholder or to the extent any Securitization Subsidiary’s financial and
operating results are consolidated with those of a Loan Party so long as appropriate notation shall be made on such consolidated
financial statements (if any) to indicate its separateness from such Affiliate and to indicate that its assets and credit are not
available to satisfy the debts and other obligations of such Affiliate or any other Person.

 

(n)       It
shall not, except for capital contributions or capital distributions permitted under the terms and conditions of its Constituent
Documents and properly reflected on its books and records and as otherwise permitted pursuant to Section 9.34, enter into
any transaction with an Affiliate except on commercially reasonable terms similar to those available to unaffiliated parties in
an arm’s-length transaction.

 

(o)       It
shall maintain a sufficient number of employees (which number may be zero) in light of its contemplated business purpose and pay
the salaries of its own employees, if any, only from its own funds.

 

(p)       It
shall use separate invoices bearing its own name.

 

(q)       It
shall correct any known misunderstanding regarding its separate identity and not identify itself as a department or division of
any other Person.

 

(r)       It
shall maintain adequate capital in light of its contemplated business purpose, transactions and liabilities (it being understood
that this covenant shall apply to the Borrower and the Securitization Subsidiaries on a combined basis); provided, however,
that the foregoing shall not require the Equityholder to make additional capital contributions.

 

(s)       It
shall not acquire any obligation or securities of its members or of any Affiliate other than the Collateral in compliance with
the Transaction Documents.

 

(t)       It
shall not make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person
(other than the Securitization Subsidiaries), except that it may invest in those investments permitted under the Transaction Documents.

 

    	 	-111-	 

     

    

 

(u)       It
shall not, to the fullest extent permitted by law, engage in any dissolution, liquidation, consolidation, merger, sale or transfer
of all or substantially all of its assets other than such activities as are expressly permitted pursuant to the Transaction Documents.

 

(v)       It
shall not buy or hold evidence of indebtedness issued by any other Person (other than the Securitization Subsidiaries, and other
than cash or investment-grade securities), except as expressly contemplated by the Transaction Documents.

 

(w)       Except
as expressly permitted by the Transaction Documents, it shall not form, acquire or hold any subsidiary (whether corporate, partnership,
limited liability company or other) or own any equity interest in any other entity (other than any Securitization Subsidiaries).

 

(x)       It
shall not own any asset or property other than Collateral and such other financial assets as permitted by the Transaction Documents.

 

(y)       It
shall not engage, directly or indirectly, in any business other than as required or permitted to be performed by the Transaction
Documents.

 

(z)       It
shall allocate fairly and reasonably any overhead expenses that are shared with any of its Affiliates, including for shared office
space and for services performed by an employee of any Affiliate.

 

(aa)         Neither
the Borrower nor the Equityholder shall take any action contrary to the “Assumptions and Facts” section in the opinion
or opinions of Dechert LLP, dated the date hereof, relating to certain nonconsolidation and true sale matters.

 

(bb)         Neither
the Servicer nor any other person shall be authorized or empowered, nor shall they permit any Loan Party to take any Material Action
without the prior unanimous written consent of the Independent Member. The Constituent Documents of such Loan Party shall include
the following provisions: (a) at all times there shall be, and Borrower shall cause there to be, at least one Independent
Member; provided that upon the death or incapacitation of the Independent Member, the Borrower shall replace such Independent
Member with a new Independent Member within ten (10) Business Days of such death or incapacitation; (b) such Loan Party shall
not, without the prior written consent of the Independent Member, on behalf of itself or Borrower, take any Material Action or
any action that might cause such entity to become insolvent, and when voting with respect to such matters, the Independent Member
shall consider only the interests of such Loan Party, including its creditors; and (c) no Independent Member of the Borrower
may be removed or replaced unless the Borrower provides Lender with not less than five (5) Business Days’ prior written notice
of (i) any proposed removal of an Independent Member, together with a statement as to the reasons for such removal, and (ii) the
identity of the proposed replacement Independent Member, together with a certification that such replacement satisfies the requirements
set forth in the organizational documents of the Borrower for an Independent Member. No resignation or removal of an Independent
Member shall be effective until a successor Independent Member is appointed and has accepted his or her appointment. No Independent
Member may be removed other than for Cause.

 

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Section 10.6         Hedging
Agreements. (a)  With respect to any Fixed Rate Collateral Obligation (other than any Fixed Rate Collateral Obligation
(or portion thereof) not counted as “excess” pursuant to clause (d) of the definition of “Excess Concentration
Amount”), such Loan Party hereby covenants and agrees that the Servicer, in its sole discretion, on or prior to the related
Funding Date for such Collateral Obligation, such Loan Party shall obtain and deliver to the Collateral Agent (with a copy to the
Facility Agent) one or more Hedging Agreements from qualified Hedge Counterparties having, singly or in the aggregate, an Aggregate
Notional Amount not less than the amount determined by the Facility Agent in its reasonable discretion, which (1) shall each
have a notional principal amount equal to or greater than $1,000,000, (2) may provide for reductions of the Aggregate Notional
Amount on each Distribution Date on an amortization schedule for such Aggregate Notional Amount assuming a 0.0 ABS prepayment speed
(or such other ABS prepayment speed as may be approved in writing by the Facility Agent) and zero losses, and (3) shall have
other terms and conditions and be represented by Hedging Agreements otherwise acceptable to the Facility Agent in its sole discretion.

 

(b)       In
the event that any Hedge Counterparty defaults in its obligation to make a payment to such Loan Party under one or more Hedging
Agreements on any date on which payments are due pursuant to a Hedging Agreement, such Loan Party shall make a demand no later
than the Business Day following a Responsible Officer of such Loan Party becoming aware of such default on such Hedge Counterparty,
or any guarantor, if applicable, demanding payment under the applicable Hedging Agreement in accordance with the terms of such
Hedging Agreement. Such Loan Party shall give notice to the Lenders upon the continuing failure by any Hedge Counterparty to perform
its obligations during the two Business Days following a demand made by such Loan Party on such Hedge Counterparty, and shall take
such action with respect to such continuing failure as is necessary.

 

(c)       In
the event that any Hedge Counterparty no longer maintains the ratings specified in the definition of “Hedge Counterparty,”
then within 30 days after receiving notice of such decline in the creditworthiness of such Hedge Counterparty as determined
by any Rating Agency, such Loan Party shall provide the Hedge Counterparty notice of the potential termination event resulting
from such downgrade and, if the Hedge Counterparty fails to cure such potential termination event within the time frame specified
in the related Hedging Agreement, such Loan Party shall (i) provided that a Replacement Hedging Agreement or Qualified
Substitute Arrangement meeting the requirements of Section 10.6(d) has been obtained, (A) provide written notice
to such Hedge Counterparty (with a copy to the Collateral Agent and the Facility Agent) of its intention to terminate the applicable
Hedging Agreement within the 30-day period following the expiration of the cure period set forth in the applicable Hedging Agreement
and (B) terminate the applicable Hedging Agreement within such 30-day period, request the payment to it of all amounts due
to such Loan Party under the applicable Hedging Agreement through the termination date and deposit any such amounts so received,
on the day of receipt, to the Collection Account, or (ii) establish any other arrangement (including an arrangement or arrangements
in addition to or in substitution for any prior arrangement made in accordance with the provisions of this Section 10.6(c))
with the written consent (in its sole discretion) of the Facility Agent (a “Qualified Substitute Arrangement”);
provided, that in the event at any time any alternative arrangement established pursuant to the above shall cease to be
satisfactory to the Facility Agent, then the provisions of this Section 10.6(c), shall again be applied and in connection
therewith the 30-day period referred to above shall commence on the date such Loan Party receives notice of such cessation or termination,
as the case may be.

 

    	 	-113-	 

     

    

 

(d)       Unless
an alternative arrangement pursuant to Section 10.6(c) is being established, such Loan Party shall use commercially
reasonably efforts to obtain a Replacement Hedging Agreement or Qualified Substitute Arrangement meeting the requirements of this
Section 10.6 during the 30-day period following the expiration of the cure period set forth in the applicable Hedging
Agreement. Such Loan Party shall not terminate the Hedging Agreement unless, prior to the expiration of such 30-day period, such
Loan Party delivers to the Collateral Agent (with a copy to the Facility Agent) (i) a Replacement Hedging Agreement or Qualified
Substitute Arrangement and (ii) to the extent applicable, an Opinion of Counsel reasonably satisfactory to the Facility Agent
as to the due authorization, execution and delivery and validity and enforceability of such Replacement Hedging Agreement or Qualified
Substitute Arrangement, as the case may be.

 

(e)       The
Servicer or such Loan Party shall notify the Facility Agent and the Collateral Agent within five Business Days after a Responsible
Officer of such Person shall obtain knowledge that the senior unsecured debt rating of a Hedge Counterparty has been withdrawn
or reduced by any Rating Agency.

 

(f)       Such
Loan Party may at any time obtain a Replacement Hedging Agreement.

 

(g)       Such
Loan Party shall not agree to any material amendment to any Hedging Agreement.

 

(h)       Such
Loan Party shall notify the Facility Agent and the Collateral Agent after a Responsible Officer of such Loan Party shall obtain
actual knowledge of the transfer by the related Hedge Counterparty of any Hedging Agreement, or any interest or obligation thereunder.

 

(i)       Such
Loan Party may sell all or a portion of the Hedging Agreements. Such Loan Party shall have the duty of obtaining a fair market
value price for the sale of any Hedging Agreement, notifying the Facility Agent and the Collateral Agent of prospective purchasers
and bids, and selecting the purchaser of such Hedging Agreement. Such Loan Party and, at such Loan Party’s request, the Collateral
Agent, upon receipt of the purchase price in the Collection Account shall, with the prior written consent of the Facility Agent,
execute all documentation necessary to release the Lien of the Collateral Agent on such Hedging Agreement and proceeds thereof.

 

Notwithstanding anything
to the contrary in this Section 10.6, the parties hereto agree that should such Loan Party fail to observe or perform
any of its obligations under this Section 10.6 with respect to any Hedging Agreement, the sole result will be that
the Collateral Obligation or Collateral Obligations that are the subject of such Hedging Agreement shall immediately cease to be
Eligible Collateral Obligations for all purposes under this Agreement.

 

    	 	-114-	 

     

    

 

Section 10.7         Tangible
Net Worth. The Borrower shall maintain at all times a positive Tangible Net Worth. For the avoidance of doubt, it shall not
be a failure to satisfy this Section 10.7 if the Borrower’s Tangible Net Worth is not positive due to changes in market
value of assets of the Borrower.

 

Section 10.8         Taxes.
For U.S. federal income tax purposes, such Loan Party shall be either (i) an entity disregarded as separate from its owner or (ii)
a partnership (other than a publicly traded partnership) for U.S. federal income tax purposes and shall not have any Person other
than a U.S. Person as an owner of its equity for U.S. federal income tax purposes. Such Loan Party will file on a timely basis
all federal and other material Tax returns required to be filed, if any, and will pay all federal and other material Taxes due
and payable by it and any assessments made against it or any of its property (other than any amount the validity of which is contested
in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP are provided on the books of
such Loan Party). No more than 50% of the debt obligations (as determined for U.S. federal income tax purposes) held by the Borrower
may at any time consist of real estate mortgages as determined for purposes Section 7701(i) of the Code unless, based on written
advice of Cadwalader, Wickersham & Taft LLP, Dechert LLP or an opinion of other tax counsel of nationally recognized standing
in the United States experienced in such matters, the ownership of such debt obligations will not cause the Borrower to be treated
as a taxable mortgage pool for U.S. federal income tax purposes.

 

Section 10.9         Merger,
Consolidation, Etc. Such Loan Party shall not merge or consolidate with any other Person or permit any other Person to become
the successor to all or substantially all of its business or assets without the prior written consent of the Facility Agent in
its sole discretion.

 

Section 10.10         Deposit
of Collections. Such Loan Party shall transfer, or cause to be transferred, all Collections to the Collection Account by the
close of business on the Business Day following the date such Collections are received by such Loan Party, the Equityholder, the
Servicer or any of their respective Affiliates.

 

Section 10.11         Indebtedness;
Guarantees. Such Loan Party shall not create, incur, assume or suffer to exist any Indebtedness other than Indebtedness permitted
under the Transaction Documents. Such Loan Party shall incur no Indebtedness secured by the Collateral other than the Obligations.
Such Loan Party shall not assume, guarantee, endorse or otherwise be or become directly or contingently liable for the obligations
of any Person by, among other things, agreeing to purchase any obligation of another Person, agreeing to advance funds to such
Person or causing or assisting such Person to maintain any amount of capital, other than as expressly permitted under the Transaction
Documents (it being understood that the assets of the Securitization Subsidiaries shall be pledged to secure the obligations of
the Borrower).

 

Section 10.12         Limitation
on Purchases from Affiliates. Other than pursuant to the Sale Agreement or with respect to assets acquired from other special
purpose vehicles, such Loan Party shall not purchase any asset from any other Loan Party, the Equityholder or the Servicer or any
Affiliate of any Loan Party, the Equityholder or the Servicer.

 

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Section 10.13         Transaction
Documents. Except as otherwise expressly permitted herein, it shall not cancel or terminate any of the Transaction Documents
to which it is party (in any capacity), or consent to or accept any cancellation or termination of any of such agreements, or amend
or otherwise modify any term or condition of any of the Transaction Documents to which it is party (in any capacity) or give any
consent, waiver or approval under any such agreement, or waive any default under or breach of any of the Transaction Documents
to which it is party (in any capacity) or take any other action under any such agreement not required by the terms thereof, unless
(in each case) the Facility Agent shall have consented thereto in its sole discretion.

 

Section 10.14         Preservation
of Existence. Such Loan Party shall do or cause to be done all things necessary to (i) preserve and keep in full force
and effect its existence as a limited liability company and take all reasonable action to maintain its rights and franchises in
the jurisdiction of its formation and (ii) qualify and remain qualified as a limited liability company in good standing in
each jurisdiction where the failure to qualify and remain qualified would reasonably be expected to have a Material Adverse Effect.
Notwithstanding the foregoing, any Securitization Subsidiary may amend or restate any of its Constituent Documents in connection
with a Securitization without the consent of any other Person so long as such amendment or restatement is effective on or after
the closing of such Securitization.

 

Section 10.15         Limitation
on Investments. Such Loan Party shall not form, or cause to be formed, any Subsidiaries (other than in the case of the Borrower,
any Securitization Subsidiary); or make or suffer to exist any loans or advances to, or extend any credit to, or make any investments
(by way of transfer of property, contributions to capital, purchase of stock or securities or evidences of indebtedness, acquisition
of the business or assets, or otherwise) in, any Affiliate or any other Person except investments as otherwise permitted herein
and pursuant to the other Transaction Documents.

 

Section 10.16         Distributions.
(a) No Loan Party shall declare or make (i) payment of any distribution on or in respect of any equity interests, or
(ii) any payment on account of the purchase, redemption, retirement or acquisition of any option, warrant or other right to
acquire such equity interests; provided that so long as no Event of Default, Unmatured Event of Default, Unmatured Servicer
Default or Servicer Default shall have occurred and be continuing, the Borrower may make a distribution of (A) the proceeds of
any Advance so long as, as certified to the Facility Agent in writing by the Borrower and the Servicer, to their knowledge and
based upon the most current information then available to them (in each case both before and immediately after such distribution):
(x) sufficient proceeds remain for all payments to be made pursuant to Section 8.3(a) (other than clauses (i)(O) and (ii)(K)
thereof) on the next Distribution Date; (y) none of the proceeds from such Advance are needed to settle the acquisition of such
Eligible Collateral Obligation; and (z) the conditions set forth in Section 6.2 are satisfied, (B) amounts paid to it pursuant
to Section 8.3(a) on the applicable Distribution Date or any prior Distribution Date and (C) the proceeds of any Advance
on the applicable Advance Date, but only if such Advance is made in respect of an Eligible Collateral Obligation acquired by such
Borrower on such Advance Date and none of the proceeds from such Advance are needed to settle the acquisition of such Eligible
Collateral Obligation.

 

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(b)       Prior
to foreclosure by the Facility Agent upon any Collateral pursuant to Section 13.3(c), nothing in this Section 10.16
or otherwise in this Agreement shall restrict such Loan Party from exercising any Warrant Assets issued to it by Obligors from
time to time to the extent funds are available to the Borrower under Section 8.3(a) or made available to the Borrower.

 

Section 10.17         Performance
of Assigned Agreements. Such Loan Party shall (i) perform and observe in all material respects all the terms and provisions
of the Transaction Documents (including each of the Assigned Agreements) to which it is a party to be performed or observed by
it, maintain such Transaction Documents in full force and effect, and enforce such Transaction Documents in accordance with their
terms, and (ii) upon reasonable request of the Facility Agent, make to any other party to such Transaction Documents such
demands and requests for information and reports or for action as the applicable Loan Party is entitled to make thereunder.

 

Section 10.18         Further
Assurances; Financing Statements. (a)  Such Loan Party agrees that at any time and from time to time, at its expense
and upon reasonable request of the Facility Agent or the Collateral Agent, it shall promptly execute and deliver all further instruments
and documents, and take all reasonable further action, that is necessary or desirable to perfect and protect the assignments and
security interests granted or purported to be granted by this Agreement or to enable the Collateral Agent or any of the Secured
Parties to exercise and enforce its rights and remedies under this Agreement with respect to any Collateral. Without limiting the
generality of the foregoing, such Loan Party authorizes the filing of such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable or that the Collateral Agent (acting solely at
the Facility Agent’s request) may reasonably request to protect and preserve the assignments and security interests granted
by this Agreement. Such financing statements filed against such Loan Party may describe the Collateral in the same manner specified
in Section 12.1 or in any other manner as the Facility Agent may reasonably determine is necessary to ensure the perfection
of such security interest (without disclosing the names of, or any information relating to, the Obligors thereunder), including
describing such property as all assets or all personal property of such Loan Party whether now owned or hereafter acquired.

 

(b)       Such
Loan Party and each Secured Party hereby severally authorize the Collateral Agent, upon receipt of written direction from the Facility
Agent, to file one or more financing or continuation statements, and amendments thereto, relating to all or any part of the Collateral.

 

(c)       It
shall furnish to the Collateral Agent and the Facility Agent from time to time such statements and schedules further identifying
and describing the Related Security and such other reports in connection with the Collateral as the Collateral Agent (acting solely
at the Facility Agent’s request) or the Facility Agent may reasonably request, all in reasonable detail.

 

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Section 10.19         Obligor
Payment Instructions. Such Loan Party acknowledges that the power of attorney granted in Section 13.10 to the Collateral
Agent permits the Collateral Agent to send (at the Facility Agent’s written direction after the occurrence of an Event of
Default) Obligor notification forms to give notice to the Obligors of the Collateral Agent’s interest in the Collateral and
the obligation to make payments as directed by the Collateral Agent (at the written direction of the Facility Agent). Such Loan
Party further agrees that it shall (or it shall cause the Servicer to) provide prompt notice to the Facility Agent of any misdirected
or errant payments made by any Obligor with respect to any Collateral Obligation and direct such Obligor to make payments as required
hereunder.

 

Section 10.20         Delivery
of Collateral Obligation Files. (a)  Such Loan Party (or the Servicer on behalf of such Loan Party) shall deliver
to the Collateral Custodian (with a copy to the Facility Agent at the following e-mail addresses (for electronic copies): amit.patel@db.com,
james.kwak@db.com, thorben.wedderien@db.com and andrew.goldsmith@db.com) the Collateral Obligation Files identified on the related
Document Checklist promptly upon receipt but in no event later than three (3) Business Days following the related Funding Date;
provided that, notwithstanding the foregoing, the Borrower shall cause the documentation required by this Section 10.20
to be in the possession of the Collateral Custodian not later than (A) five (5) Business Days if the Servicer or its Affiliate
is the agent with respect to such Loan and (B) otherwise, fifteen (15) days, in each case after the related Cut-Off Date as to
any Collateral Obligations; provided, further that any file-stamped document included in any Collateral Obligation File
shall be delivered as soon as they are reasonably available (even if not within three (3) Business Days of the related Funding
Date). In addition, promptly following the occurrence of an Event of Default, the Borrower shall deliver to the Collateral Custodian
(with a copy to the Facility Agent at the email addresses set forth above) a fully executed assignment in blank for each Collateral
Obligation for which the Servicer, the Equityholder, the Investment Manager or any of their respective Affiliates is the loan agent.
The Borrower shall maintain (or cause to be maintained) for the Secured Parties in accordance with their respective interests all
Records that evidence or relate to the Collections not previously delivered to the Collateral Agent and shall, as soon as reasonably
practicable upon demand of the Facility Agent, make available, or, upon the Facility Agent’s demand following the occurrence
and during the continuation of a Servicer Default, deliver to the Facility Agent copies of all such Records which evidence or relate
to the Collections.

 

(b)       The
Borrower shall deliver the following: (i) all Asset Approval Requests to lenderfinance_collatreview@list.db.com, (ii) Monthly Reports
delivered in connection with Section 8.5 to csg.india@db.com, abs.conduits@db.com, dbinvestor@list.db.com, amit.patel@db.com,
james.kwak@db.com, thorben.wedderien@db.com and andrew.goldsmith@db.com, (iii) requests or notices delivered in accordance with
Sections 2.2, 2.4 or 8.3(b), to abs.conduits@db.com, lenderfinance_collatreview@list.db.com, amit.patel@db.com,
james.kwak@db.com, thorben.wedderien@db.com and andrew.goldsmith@db.com and (iv) obligor reports delivered in connection with Section
7.5(l) to gcrt.ratingrequests@db.com and lenderfinance_collatreview@list.db.com.

 

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Section 10.21         ERISA.

 

(a)       The
Borrower will not become a Benefit Plan Investor at any time while any Obligations are outstanding.

 

(b)       The
Borrower will not take any action, or omit to take any action, which would give rise to a non-exempt prohibited transaction under
Section 406(a)(1)(B) of ERISA or Section 4975(c)(1)(B) of the Code that would subject any Lender to any tax, penalty, damages,
or any other claim for relief under ERISA or the Code.

 

(c)       The
Borrower shall not sponsor, maintain, or contribute to, any Plan. Except as would not reasonably be expected to have a Material
Adverse Effect, (i) the Borrower shall not, and shall not permit any ERISA Affiliate to, permit to exist any occurrence of any
ERISA Event, and (ii) the Borrower shall not permit any ERISA Affiliate to sponsor, maintain, contribute to, or incur any liability
in respect of, any Plan.

 

Section 10.22         Risk
Retention. 

 

(a)       For
so long as any Obligations are outstanding: the Equityholder represents and undertakes that: (A) as an originator for purposes
of the EU Securitization Rules, the Equityholder holds and will retain on an on-going basis, a net economic interest in the securitization
transaction contemplated by this Agreement, which shall not be less than 5% of the aggregate nominal value of all the Collateral
Obligations (the “Retained Economic Interest”) measured at the time of origination (being the occasion of each
origination or acquisition of a Collateral Obligation by the Borrower); (B) the Retained Economic Interest takes the form of a
first loss tranche in accordance with paragraph (d) of Article 6(3) of the EU Securitization Regulation, as represented by the
Equityholder’s direct equity interest in the Borrower and indirect equity interest in the Securitization Subsidiaries (“Equity
Interests”); (C) the Equityholder directly holds and will directly retain 100% of the Equity Interests in the Borrower
and in turn the Borrower holds and will retain 100% of the equity interests in the Securitization Subsidiaries; (D) the aggregate
capital contributions made by the Equityholder with respect to the Equity Interests in the Borrower shall represent at least 5.0%
of the aggregate of the nominal value of all the Collateral Obligations measured at the time of origination as described in (A)
above; and (E) the Equityholder shall not, and it will procure that its Affiliates (including without limitation, the Borrower
and the Securitization Subsidiaries) do not, hedge or otherwise mitigate its credit risk or sell, transfer or otherwise surrender
all or part of the rights, benefits or obligations arising under or associated with the Retained Economic Interest, except to the
extent permitted under the EU Securitization Rules.

 

    	 	-119-	 

     

    

 

(b)       Each
Monthly Report shall contain or be accompanied by a certification from the Equityholder containing a representation that all of
the conditions set forth in clause (a) above are true and have been true up to and on each date of the related Collection Period.
The Equityholder shall provide to the Facility Agent and/or any Lender that is subject to the EU Securitization Rules: (A) prompt
written notice of any breach of the obligations set forth in clause (a) above; (B) confirmation that all of the conditions set
forth in clause (a) above continue to be complied with (x) in the event of a material change in the transaction structure
that materially impacts the performance of the Collateral Obligations or the risk characteristics of the Collateral Obligations
and Advances made with respect thereto and (y) upon the occurrence of any Event of Default or becoming aware of any breach of the
obligations contained in any Transaction Documents; and (C) all information, documents, reports and notifications that any such
entity reasonably requests in connection with its obligations under the EU Securitization Rules, but only to the extent the same
(x) is in the possession (or reasonable procurement) of the Equityholder, and (y) is not subject to contractually binding confidentiality
requirements or laws governing the protection of confidentiality of information and the processing of personal data (“Restricted
Information”), or if it is Restricted Information and cannot be anonymized or aggregated, the Facility Agent and/or any
such Lender enters into a confidentiality agreement reasonably acceptable to the Equityholder.

 

(c)       The
Equityholder represents and undertakes that: (A) its Equity Interests in the Borrower were duly approved in accordance with its
governing documents and investment policies; and (B) acting through its investment manager, GC Advisors LLC (the “Investment
Manager”), the Equityholder established the transaction contemplated by the Transaction Documents by: (x) causing the
incorporation of each Loan Party from time to time party hereto as a wholly-owned subsidiary; (y) approving the eligibility criteria
for the origination and acquisition of Collateral Obligations; and (z) determining the transaction structure and negotiating the
Transaction Documents with the various transaction parties.

 

(d)       The
Equityholder represents that: (A) it was not established for, and does not operate for, the sole purpose of securitizing exposures;
(B) it has, and reasonably expects to continue to have, the capacity to meet its general payment and other obligations consistent
with a broader business enterprise; and (C) it maintains a corporate governance structure and through its Investment Manager it
has, and shall continue to retain, experienced decision makers to enable the Equityholder to pursue its established business strategy.

 

(e)       The
Equityholder is, and will remain, ultimately responsible for and retain discretion over the actions of the Investment Manager;
and any actions taken by the Investment Manager in relation to the matters outlined in clause (c) above are taken for, and on behalf
of, the Equityholder.

 

(f)       The
Equityholder represents and undertakes that: (A) the Collateral Obligations originated by the Equityholder and the Borrower have
been, and will continue to be, originated pursuant to a sound and well-defined credit granting criteria and clearly established
processes for approving, amending, modifying, renewing and financing the Underlying Instruments related to such Collateral Obligations
and each of the Equityholder and the Borrower have, and shall maintain, effective systems in place to apply those criteria and
processes to ensure that such Underlying Instruments are granted and approved based on a thorough assessment of each Obligor’s
creditworthiness; and (B) in relation to each other Collateral Obligation acquired by the Borrower, the Equityholder reasonably
believes in light of the information available to it and subject to a reasonable standard of care, that the entity which was, directly
or indirectly, involved in the Underlying Instruments which created such Collateral Obligation granted such Underlying Instruments
pursuant to a sound and well-defined criteria and clearly established processes for approving, amending, modifying, renewing and
financing the Underlying Instruments and it had effective systems in place to apply those criteria and processes to ensure that
the Underlying Instruments were granted and approved based on a thorough assessment of the relevant Obligor’s creditworthiness.

 

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Section 10.23         Proceedings.
As soon as possible and in any event within three (3) Business Days after a Responsible Officer of such Loan Party receives notice
or obtains knowledge thereof, notice of any settlement of, material judgment (including a material judgment with respect to the
liability phase of a bifurcated trial) in or commencement of any material labor controversy, material litigation, material action,
material suit or material proceeding before any court or governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, affecting the Collateral (taken as a whole), the Transaction Documents, the Collateral Agent’s interest
in the Collateral, or such Loan Party; provided that notwithstanding the foregoing, any settlement, judgment, labor controversy,
litigation, action, suit or proceeding affecting the Collateral (taken as a whole), the Transaction Documents, the Collateral Agent’s
interest in the Collateral, or such Loan Party in excess of $100,000 or more shall be deemed to be material for purposes of this
Section 10.23.

 

Section 10.24         No
REO Assets. At no time shall any Collateral Obligation be an REO Asset.

 

Section 10.25         Policies
and Procedures for Sanctions. The Borrower has directly or indirectly instituted and maintained policies and procedures designed
to ensure compliance with Sanctions.

 

Section 10.26         Compliance
with Sanctions. The Borrower shall not directly or indirectly use the proceeds of the Advances, or lend, contribute or otherwise
make available such proceeds to any Subsidiary, joint venture, partner or other Person or entity, to fund or facilitate (i) any
activities of or business with any Sanctions Target, (ii) any activities of or business in any Sanctioned Country or (iii) in any
other manner that would result in a violation by any Person of Sanctions.

 

Section 10.27         Compliance
with Anti-Money Laundering. The Borrower shall comply in all material respects with all applicable Anti-Money Laundering Laws
and shall provide notice to the Facility Agent, within five (5) Business Days, of the Borrower’s receipt of any Anti-Money
Laundering Law regulatory notice or action involving the Borrower.

 

Section 10.28         Ineligible
Collateral. At the direction of the Facility Agent (in its sole discretion), the Borrower shall divest in a manner reasonably
satisfactory to the Facility Agent (i) promptly upon request by the Facility Agent any asset that does not satisfy the definition
of “Eligible Collateral Obligation” or “Permitted Investment” and (a) such asset is a Structured Finance
Obligation or (b) any Lender determines that such asset is reasonably likely to result in any reputational harm to such Lender
(in such Lender’s sole discretion) or (ii) as soon as reasonably practicable following the request by the Facility Agent
any asset that does not satisfy the definition of “Eligible Collateral Obligation” or “Permitted Investment”
and the Facility Agent determines that the Borrower’s ownership of such asset is reasonably likely to (a) have materially
adverse regulatory consequences on any Lender (in such Lender’s sole discretion) or (b) result in unfavorable capital treatment
for any Lender (in such Lender’s sole discretion) and the Borrower and Facility Agent have not otherwise agreed to modifications
to this Agreement to address such capital treatment; provided that any such divestiture shall not be included in the limitation
on sales set forth in Section 9.34(a)(v) and that distributions of any such asset may be made without restriction. The Facility
Agent agrees to cooperate in good faith with any waivers necessary to permit such divestiture and acknowledges that it does not
have any discretion with respect to selecting the purchaser of any asset divested pursuant to this Section 10.28.

 

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Article
XI

THE COLLATERAL AGENT

 

Section 11.1         Appointment
of Collateral Agent. Deutsche Bank Trust Company Americas is hereby appointed as Collateral Agent pursuant to the terms hereof.
The Secured Parties hereby appoint the Collateral Agent to act exclusively as the agent for purposes of perfection of a security
interest in the Collateral and Collateral Agent of the Secured Parties to act as specified herein and in the other Transaction
Documents to which the Collateral Agent is a party. The Collateral Agent hereby accepts such agency appointment to act as Collateral
Agent pursuant to the terms of this Agreement, until its resignation or removal as Collateral Agent pursuant to the terms hereof.

 

Section 11.2         Monthly
Reports. The Collateral Agent shall prepare the Monthly Report in accordance with Section 8.5 and distribute funds
in accordance with such Monthly Report in accordance with Section 8.3(a).

 

Section 11.3         Collateral
Administration. The Collateral Agent shall maintain a database of certain characteristics of the Collateral on an ongoing basis,
and provide to the Borrower, the Servicer and the Facility Agent certain reports, schedules and calculations, all as more particularly
described in this Section 11.3, based upon information and data received from the Servicer pursuant to Section 7.7.

 

(a)       In
connection therewith, the Collateral Agent shall:

 

(i)       within
15 days after the Effective Date, create a database with respect to the Collateral that has been pledged to the Collateral Agent
for the benefit of the Secured Parties from time to time, comprised of the Collateral Obligations credited to the Accounts from
time to time and Permitted Investments in which amounts held in the Accounts may be invested from time to time, as provided in
this Agreement (the “Collateral Database”);

 

(ii)       update
the Collateral Database on a periodic basis for changes and to reflect the sale or other disposition of assets included in the
Collateral and any additional Collateral from time to time, in each case based upon, and to the extent of, information furnished
to the Collateral Agent by the Borrower or the Servicer as may be reasonably required by the Collateral Agent from time to time
or based upon notices received by the Collateral Agent from the issuer, or trustee or agent bank under an underlying instrument,
or similar source;

 

(iii)       track
the receipt and allocation to the Collection Account of Principal Collections and Interest Collections and any withdrawals therefrom
and, on each Business Day, provide to the Servicer and Facility Agent daily reports reflecting such actions to the accounts as
of the close of business on the preceding Business Day and the Collateral Agent shall provide any such report to the Facility Agent
upon its request therefor;

 

    	 	-122-	 

     

    

 

(iv)       distribute
funds in accordance with such Monthly Report in accordance with Section 8.3(a);

 

(v)       prepare
and deliver to the Facility Agent, the Borrower and the Servicer on each Reporting Date, the Monthly Report and any update pursuant
to Section 8.5 when requested by the Servicer, the Borrower or the Facility Agent, on the basis of the information
contained in the Collateral Database as of the applicable Determination Date, the information provided by each Lender and the Facility
Agent pursuant to Section 3.4 and such other information as may be provided to the Collateral Agent by the Borrower,
the Servicer, the Facility Agent or any Lender;

 

(vi)       provide
other such information with respect to the Collateral as may be routinely maintained by the Collateral Agent in performing its
ordinary Collateral Agent function pursuant hereunder, as the Borrower, the Servicer, the Facility Agent or any Lender may reasonably
request from time to time;

 

(vii)       [reserved];

 

(viii)       [reserved];
and

 

(ix)         track
the Principal Balance of each Collateral Obligation and report such balances to the Facility Agent and the Servicer no later than
12:00 Noon (New York City time) on each Business Day as of the close of business on the preceding Business Day.

 

(b)       The
Collateral Agent shall provide to the Servicer a copy of all written notices and communications received by it identified as being
sent to it in connection with the Collateral Obligations and the other Collateral held hereunder which it receives from the related
Obligor, participating bank and/or agent bank. In no instance shall the Collateral Agent be under any duty or obligation to take
any action on behalf of the Servicer in respect of the exercise of any voting or consent rights, or similar actions, unless it
receives specific written instructions from the Servicer, prior to the occurrence of an Event of Default or a Servicer Default
or the Facility Agent, after the occurrence of an Event of Default or a Servicer Default, in which event the Collateral Agent shall
vote, consent or take such other action in accordance with such instructions.

 

(c)       In
addition to the above:

 

    	 	-123-	 

     

    

 

(i)       The
Facility Agent and each Secured Party further authorizes the Collateral Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement and the other Transaction Documents as are expressly delegated to the Collateral Agent
by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. In furtherance, and without limiting
the generality of the foregoing, each Secured Party hereby appoints the Collateral Agent (acting at the direction of the Facility
Agent) as its agent to execute and deliver all further instruments and documents, and take all further action (at the written direction
of the Facility Agent) that the Facility Agent deems necessary or desirable in order to perfect, protect or more fully evidence
the security interests granted by each Loan Party hereunder, or to enable any of them to exercise or enforce any of their respective
rights hereunder, including, without limitation, the execution or filing by the Collateral Agent as secured party/assignee of such
financing or continuation statements, or amendments thereto or assignments thereof, relative to all or any of the Collateral Obligations
now existing or hereafter arising, and such other instruments or notices, as may be necessary or appropriate for the purposes stated
hereinabove; provided, however, that the Collateral Agent shall have no duty or obligation to prepare or file any
such financing or continuation statement and such obligation shall remain with the Borrower. Nothing in this Section 11.3(c)(i)
shall be deemed to relieve the Borrower or the Servicer of their respective obligations to protect the interest of the Collateral
Agent (for the benefit of the Secured Parties) in the Collateral, including to file financing and continuation statements in respect
of the Collateral in accordance with Section 10.1. It is understood and agreed that any and all actions performed by
the Collateral Agent in connection with this Section 11.3(c)(i) shall be at the written direction of the Facility Agent,
and the Collateral Agent shall have no responsibility or liability in connection with determining any actions necessary or desirable
to perfect, protect or more fully secure the security interest granted by each Loan Party hereunder or to enable any Person to
exercise or enforce any of their respective rights hereunder.

 

(ii)       The
Facility Agent may direct the Collateral Agent in writing to take any such incidental action hereunder. With respect to other actions
which are incidental to the actions specifically delegated to the Collateral Agent hereunder, the Collateral Agent shall not be
required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall be fully
protected in acting or refraining from acting) upon the written direction of the Facility Agent; provided that the Collateral
Agent shall not be required to take any action hereunder at the request of the Facility Agent, any Secured Parties or otherwise
if the taking of such action, in the determination of the Collateral Agent, (x) shall be in violation of any Applicable Law
or contrary to any provisions of this Agreement or (y) shall expose the Collateral Agent to liability hereunder or otherwise
(unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto). In the event the Collateral
Agent requests the consent of the Facility Agent and the Collateral Agent does not receive a consent (either positive or negative)
from the Facility Agent within 10 Business Days of its receipt of such request, then the Facility Agent shall be deemed to have
declined to consent to the relevant action.

 

(iii)       Except
as expressly provided herein, the Collateral Agent shall not be under any duty or obligation to take any affirmative action to
exercise or enforce any power, right or remedy available to it under this Agreement that might in its judgment involve any expense
or liability unless it has been furnished with an indemnity reasonably satisfactory to it (x) unless and until (and to the
extent) expressly so directed by the Facility Agent or (y) prior to the Facility Termination Date (and upon such occurrence,
the Collateral Agent shall act in accordance with the written instructions of the Facility Agent pursuant to clause (x)). The Collateral
Agent shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction of any Secured
Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Agent, or the Facility
Agent. The Collateral Agent shall not be deemed to have notice or knowledge of any matter hereunder, including an Event of Default,
unless a Responsible Officer of the Collateral Agent has actual knowledge of such matter or written notice thereof is received
by the Collateral Agent.

 

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(d)       If,
in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action,
the Collateral Agent may request written instructions from the Facility Agent as to the course of action desired by it. If the
Collateral Agent does not receive such instructions within two Business Days after it has requested them, the Collateral Agent
may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Agent shall act in accordance
with instructions received after such two Business Day period except to the extent it has already, in good faith, taken or committed
itself to take, action inconsistent with such instructions. The Collateral Agent shall be entitled to rely on the advice of legal
counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts
in accordance with such advice.

 

(e)       Concurrently
herewith, the Facility Agent directs the Collateral Agent and the Collateral Agent is authorized to enter into the Account Control
Agreement and any other related agreements in the form delivered to the Collateral Agent. All of the Collateral Agent’s rights,
protections and immunities provided herein shall apply to the Collateral Agent for any actions taken or omitted to be taken under
the Account Control Agreement and any other related agreements in such capacity.

 

Section 11.4         Removal
or Resignation of Collateral Agent. The Collateral Agent may at any time resign and terminate its obligations under this Agreement
upon at least 60 days’ prior written notice to the Servicer, the Borrower and the Facility Agent; provided, that no
resignation or removal of the Collateral Agent will be permitted unless a successor Collateral Agent has been appointed which successor
Collateral Agent, so long as no Servicer Default or Event of Default has occurred and is continuing, is reasonably acceptable to
the Servicer. Promptly after receipt of notice of the Collateral Agent’s resignation, the Facility Agent shall promptly appoint
a successor Collateral Agent by written instrument, in duplicate, copies of which instrument shall be delivered to the Borrower,
the Servicer, the resigning Collateral Agent and to the successor Collateral Agent. In the event no successor Collateral Agent
shall have been appointed within 60 days after the giving of notice of such resignation, the Collateral Agent may petition any
court of competent jurisdiction to appoint a successor Collateral Agent. The Facility Agent upon at least 60 days’ prior
written notice to the Collateral Agent, may with or without cause remove and discharge the Collateral Agent or any successor Collateral
Agent thereafter appointed from the performance of its duties under this Agreement. Promptly after giving notice of removal of
the Collateral Agent, the Facility Agent shall appoint, or petition a court of competent jurisdiction to appoint, a successor Collateral
Agent. Any such appointment shall be accomplished by written instrument and one original counterpart of such instrument of appointment
shall be delivered to the Collateral Agent and the successor Collateral Agent, with a copy delivered to the Borrower and the Servicer.

 

    	 	-125-	 

     

    

 

Section 11.5         Representations
and Warranties. The Collateral Agent represents and warrants to each Loan Party, the Facility Agent, the Lenders and Servicer
that:

 

(a)       the
Collateral Agent has the corporate power and authority and the legal rights to execute and deliver, and to perform its obligations
under, this Agreement, and has taken all necessary corporate action to authorize its execution, delivery and performance of this
Agreement;

 

(b)       no
consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Official Body and no consent of any
other Person (including any stockholder or creditor of the Collateral Agent) is required in connection with the execution, delivery
performance, validity or enforceability of this Agreement; and

 

(c)       this
Agreement has been duly executed and delivered on behalf of the Collateral Agent and constitutes a legal, valid and binding obligation
of the Collateral Agent enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity (whether enforcement is sought in proceedings in equity or at law).

 

Section 11.6         No
Adverse Interest of Collateral Agent. By execution of this Agreement, the Collateral Agent represents and warrants that it
currently holds and during the existence of this Agreement shall hold, no adverse interest, by way of security or otherwise, in
any Collateral Obligation or any document in the Collateral Obligation Files. Neither the Collateral Obligations nor any documents
in the Collateral Obligation Files shall be subject to any security interest, lien or right of set-off by the Collateral Agent
or any third party claiming through the Collateral Agent, and the Collateral Agent shall not pledge, encumber, hypothecate, transfer,
dispose of, or otherwise grant any third party interest in, the Collateral Obligations or documents in the Collateral Obligation
Files, except that the preceding clause shall not apply to the Collateral Agent or the Collateral Custodian with respect to (i) the
Collateral Agent Fees and Expenses or the Collateral Custodian Fees and Expenses, and (ii) in the case of any accounts, with
respect to (x) returned or charged-back items, (y) reversals or cancellations of payment orders and other electronic
fund transfers, or (z) overdrafts in the Collection Account.

 

Section 11.7         Reliance
of Collateral Agent. In the absence of bad faith on the part of the Collateral Agent, the Collateral Agent may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any request, instruction, certificate,
opinion or other document furnished to the Collateral Agent, reasonably believed by the Collateral Agent to be genuine and to have
been signed or presented by the proper party or parties and conforming to the requirements of this Agreement; but in the case of
a request, instruction, document or certificate which by any provision hereof is specifically required to be furnished to the Collateral
Agent, the Collateral Agent shall be under a duty to examine the same in accordance with the requirements of this Agreement to
determine that they conform to the form required by such provision. For avoidance of doubt, Collateral Agent may rely conclusively
on Borrowing Base Certificates and Officer’s Certificates delivered by the Servicer. The Collateral Agent shall not be liable
for any action taken by it in good faith and reasonably believed by it to be within the discretion or powers conferred upon it,
or taken by it pursuant to any direction or instruction by which it is governed hereunder, or omitted to be taken by it by reason
of the lack of direction or instruction required hereby for such action.

 

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Section
11.8         Limitation of Liability and Collateral Agent Rights.
(a)  The Collateral Agent may conclusively rely on and shall be fully protected in acting upon any certificate,
instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably believes
to be genuine and that has been signed by the proper party or parties. The Collateral Agent may rely conclusively on and
shall be fully protected in acting upon (i) the written instructions of any designated officer of the Facility Agent or
(ii) the verbal instructions of the Facility Agent.

 

(b)       The
Collateral Agent may consult counsel satisfactory to it with a national reputation in the applicable matter and the advice or opinion
of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 

(c)       The
Collateral Agent shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith,
or for any mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except in the case
of its willful misconduct, bad faith, reckless disregard or grossly negligent performance or omission of its duties.

 

(d)       The
Collateral Agent makes no warranty or representation and shall have no responsibility (except as expressly set forth in this Agreement)
as to the content, enforceability, completeness, validity, sufficiency, value, genuineness, ownership or transferability of the
Collateral, and will not be required to and will not make any representations as to the validity or value (except as expressly
set forth in this Agreement) of any of the Collateral.

 

(e)       The
Collateral Agent shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth
in this Agreement and the other Transaction Documents to which it is a party and no covenants or obligations shall be implied in
this Agreement against the Collateral Agent.

 

(f)       The
Collateral Agent shall not be required to expend or risk its own funds in the performance of its duties hereunder.

 

(g)       It
is expressly agreed and acknowledged that the Collateral Agent is not guaranteeing performance of or assuming any liability for
the obligations of the other parties hereto or any parties to the Collateral.

 

(h)       In
case any reasonable question arises as to its duties hereunder or under any other Transaction Document, the Collateral Agent may,
prior to the occurrence of an Event of Default or a Servicer Default, request instructions from the Servicer and may, after the
occurrence of an Event of Default or a Servicer Default, request instructions from the Facility Agent, and shall be entitled at
all times to refrain from taking any action unless it has received written instructions from the Servicer or the Facility Agent,
as applicable. The Collateral Agent shall in all events have no liability, risk or cost for any action taken pursuant to and in
compliance with the instruction of the Facility Agent or the Servicer prior to an Event of Default. In no event shall the Collateral
Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the
form of action.

 

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(i)       In
the event that the Collateral Custodian is not the same entity as the Collateral Agent, the Collateral Agent shall not be liable
for the acts or omissions of the Collateral Custodian under this Agreement and shall not be required to monitor the performance
of the Collateral Custodian.

 

(j)       Without
limiting the generality of any terms of this section, the Collateral Agent shall have no liability for any failure, inability or
unwillingness on the part of the Servicer, the Facility Agent or the Borrower to provide accurate and complete information on a
timely basis to the Collateral Agent, or otherwise on the part of any such party to comply with the terms of this Agreement, and
shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Agent’s part of any
of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it,
or other failure on the part of any such other party to comply with the terms hereof.

 

(k)       The
Collateral Agent shall not be bound to make any investigation into the facts or matters stated in any certificate, report or other
document; provided, however, that, if the form thereof is prescribed by this Agreement, the Collateral Agent shall examine the
same to determine whether it conforms on its face to the requirements hereof. The Collateral Agent shall not be deemed to have
knowledge or notice of any matter unless actually known to a Responsible Officer of the Collateral Agent. It is expressly acknowledged
by the Borrower, the Servicer, the Facility Agent and each Agent that application and performance by the Collateral Agent of its
various duties hereunder (including, without limitation, recalculations to be performed in respect of the matters contemplated
hereby) shall be based upon, and in reliance upon, data, information and notice provided to it by the Servicer, the Facility Agent,
any Agent, the Borrower and/or any related bank agent, obligor or similar party with respect to the Collateral Obligation, and
the Collateral Agent shall have no responsibility for the accuracy of any such information or data provided to it by such persons
and shall be entitled to update its records (as it may deem necessary or appropriate). Nothing herein shall impose or imply any
duty or obligation on the part of the Collateral Agent to verify, investigate or audit any such information or data, or to determine
or monitor on an independent basis whether any issuer of the Collateral is in default or in compliance with the underlying documents
governing or securing such securities, from time to time.

 

    	 	-128-	 

     

    

 

(l)       The
Collateral Agent may exercise any of its rights or powers hereunder or perform any of its duties hereunder either directly or,
by or through agents or attorneys, and the Collateral Agent shall not be responsible for any misconduct or gross negligence on
the part of any agent or attorney appointed hereunder with due care by it. Neither the Collateral Agent nor any of its affiliates,
directors, officers, shareholders, agents or employees will be liable to the Servicer, Borrower or any other Person, except by
reason of acts or omissions by the Collateral Agent constituting bad faith, willful misfeasance, gross negligence or reckless disregard
of the Collateral Agent’s duties hereunder. The Collateral Agent shall in no event have any liability for the actions or
omissions of the Borrower, the Servicer, the Facility Agent or any other Person, and shall have no liability for any inaccuracy
or error in any duty performed by it that results from or is caused by inaccurate, untimely or incomplete information or data received
by it from the Borrower, the Servicer, the Facility Agent or another Person except to the extent that such inaccuracies or errors
are caused by the Collateral Agent’s own bad faith, willful misfeasance, gross negligence or reckless disregard of its duties
hereunder. The Collateral Agent shall not be liable for failing to perform or delay in performing its specified duties hereunder
which results from or is caused by a failure or delay on the part of the Borrower or the Servicer, the Facility Agent or another
Person in furnishing necessary, timely and accurate information to the Collateral Agent.

 

(m)       The
Collateral Agent shall be under no obligation to exercise or honor any of the rights or powers vested in it by this Agreement or
other Transaction Document at the request or direction of the Facility Agent (or any other Person authorized or permitted to direct
the Collateral Agent hereunder) pursuant to this Agreement or other Transaction Document, unless the Facility Agent (or such other
Person) shall have offered the Collateral Agent security or indemnity reasonably acceptable to the Collateral Agent against costs,
expenses and liabilities (including any legal fees) that might reasonably be incurred by it in compliance with such request or
direction.

 

(n)       In
no event shall the Collateral Agent be liable for any failure or delay in the performance of its obligations hereunder because
of circumstances beyond its control, including acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
embargo, government action (including any laws, ordinances, regulations) or the like that delay, restrict or prohibit the providing
of services by the Collateral Agent as contemplated by this Agreement.

 

Section 11.9         Tax
Reports. The Collateral Agent shall not be responsible for the preparation or filing of any reports or returns relating to
federal, state or local income taxes with respect to this Agreement, other than in respect of the Collateral Agent’s compensation
or for reimbursement of expenses.

 

Section 11.10         Merger
or Consolidation. Any Person (i) into which the Collateral Agent may be merged or consolidated, (ii) that may result
from any merger or consolidation to which the Collateral Agent shall be a party, or (iii) that may succeed to the properties
and assets of the Collateral Agent substantially as a whole, which Person in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Collateral Agent hereunder, shall be the successor to the Collateral Agent under
this Agreement without further act of any of the parties to this Agreement.

 

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Section 11.11         Collateral
Agent Compensation. As compensation for its activities hereunder, the Collateral Agent (in each of its capacities hereunder
and as Securities Intermediary under the Account Control Agreement) shall be entitled to its fees and expenses from the Borrower
as set forth in the Collateral Agent and Collateral Custodian Fee Letter and any other accrued and unpaid expenses (including reasonable
attorneys’ fees, costs and expenses) and indemnity amounts payable by the Borrower, any Securitization Subsidiary or the
Servicer, without duplication, to the Collateral Agent and the Securities Intermediary under the Transaction Documents (including,
without limitation, Indemnified Amounts payable under Article XVI) (collectively, the “Collateral Agent Fees and
Expenses”). The Borrower agrees to reimburse the Collateral Agent, the Collateral Custodian and the Securities Intermediary
in accordance with the provisions of Section 8.3(a) for all reasonable, out-of-pocket, documented expenses, disbursements
and advances incurred or made by the Collateral Agent, the Collateral Custodian and the Securities Intermediary in accordance with
any provision of this Agreement or the other Transaction Documents or in the enforcement of any provision hereof or in the other
Transaction Documents. The Collateral Agent’s entitlement to receive fees (other than any previously accrued and unpaid fees)
shall cease on the earlier to occur of (i) its removal as Collateral Agent pursuant to Section 11.4 or (ii) the termination
of this Agreement.

 

Section
11.12         Compliance with Anti-Bribery and Corruption, Anti-Terrorism and
Money Laundering Regulations. In order to comply with Applicable Banking Law, the Collateral Agent and the Collateral
Custodian are required to obtain, verify, record and update certain information relating to individuals and entities which
maintain a business relationship with the Collateral Agent and the Collateral Custodian. Accordingly, each of the parties
agrees to provide to the Collateral Agent and the Collateral Custodian, upon their reasonable request from time to time such
identifying information and documentation as may be available for such party in order to enable the Collateral Agent and the
Collateral Custodian to comply with Applicable Banking Law.

 

Article
XII

GRANT OF SECURITY INTEREST

 

Section 12.1         Borrower’s
Grant of Security Interest. As security for the prompt payment or performance in full when due, whether at stated maturity,
by acceleration or otherwise, of all Obligations (including Advances, Yield, all Fees and other amounts at any time owing hereunder),
the Borrower hereby assigns and pledges to the Collateral Agent for the benefit of the Secured Parties, and grants to the Collateral
Agent for the benefit of the Secured Parties, a security interest in and lien upon the following (other than Retained Interests
and Excluded Amounts), in each case whether now or hereafter existing or in which Borrower now has or hereafter acquires an interest
and wherever the same may be located (collectively, the “Borrower Collateral”):

 

(a)       all
Collateral Obligations;

 

(b)       all
Related Security;

 

(c)       this
Agreement, the Sale Agreement and all other documents now or hereafter in effect to which the Borrower is a party (collectively,
the “Borrower Assigned Agreements” and, together with the Securitization Subsidiary Assigned Agreements, the
“Assigned Agreements”), including (i) all rights of the Borrower to receive moneys due and to become due
under or pursuant to the Borrower Assigned Agreements, (ii) all rights of the Borrower to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect to the Borrower Assigned Agreements, (iii) claims of the Borrower for damages
arising out of or for breach of or default under the Borrower Assigned Agreements, and (iv) the right of the Borrower to amend,
waive or terminate the Borrower Assigned Agreements, to perform under the Borrower Assigned Agreements and to compel performance
and otherwise exercise all remedies and rights under the Borrower Assigned Agreements;

 

    	 	-130-	 

     

    

 

(d)       all
of the following (the “Account Collateral”):

 

(i)       each
Account, all funds held in any Account (other than Excluded Amounts), and all certificates and instruments, if any, from time to
time representing or evidencing any Account or such funds,

 

(ii)       all
investments from time to time of amounts in the Accounts and all certificates and instruments, if any, from time to time representing
or evidencing such investments,

 

(iii)       all
notes, certificates of deposit and other instruments from time to time delivered to or otherwise possessed by the Collateral Agent
or any Secured Party or any assignee or agent on behalf of the Collateral Agent or any Secured Party in substitution for or in
addition to any of the then existing Account Collateral, and

 

(iv)       all
interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any and all of the then existing Account Collateral;

 

(e)       all
additional property that may from time to time hereafter be granted and pledged by the Borrower or by anyone on its behalf under
this Agreement;

 

(f)       all
Accounts, all Certificated Securities, all Chattel Paper, all Documents, all Equipment, all Financial Assets, all General Intangibles,
all Instruments, all Investment Property, all Inventory, all Securities Accounts, all Security Certificates, all Security Entitlements
and all Uncertificated Securities of the Borrower;

 

(g)       each
Hedging Agreement, including all rights of the Borrower to receive moneys due and to become due thereunder;

 

(h)       all
of the Borrower’s other personal property; and

 

(i)       all
Proceeds, accessions, substitutions, rents and profits of any and all of the foregoing Collateral (including proceeds that constitute
property of the types described in clauses (a) through (h) above) and, to the extent not otherwise included, all
payments under insurance (whether or not the Collateral Agent or a Secured Party or any assignee or agent on behalf of the Collateral
Agent or a Secured Party is the loss payee thereof) or any indemnity, warranty or guaranty payable by reason of loss or damage
to or otherwise with respect to any of the foregoing Collateral.

 

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Section 12.2         Grant
of Security Interest of Each Securitization Subsidiary. As security for the prompt payment or performance in full when due,
whether at stated maturity, by acceleration or otherwise, of all Obligations (including Advances, Yield, all Fees and other amounts
at any time owing hereunder), each Securitization Subsidiary hereby assigns and pledges to the Collateral Agent for the benefit
of the Secured Parties, and grants to the Collateral Agent for the benefit of the Secured Parties, a security interest in and lien
upon (other than Retained Interests and Excluded Amounts), whether now or hereafter existing or in which such Securitization Subsidiary
now has or hereafter acquires an interest and wherever the same may be located, the Securitization Subsidiary Collateral Portfolio
(collectively, with the Borrower Collateral, the “Collateral”).

 

Section 12.3         Loan
Parties Remain Liable. Notwithstanding anything in this Agreement, (a) the Loan Parties shall remain liable under the
Collateral Obligations, Assigned Agreements and other agreements included in the Collateral to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by a Secured Party or the Collateral
Agent of any of its rights under this Agreement shall not release the Loan Parties or the Servicer from any of their respective
duties or obligations under the Collateral Obligations, Assigned Agreements or other agreements included in the Collateral, (c) the
Secured Parties and the Collateral Agent shall not have any obligation (to perform or otherwise) or liability under the Collateral
Obligations, Assigned Agreements or other agreements included in the Collateral by reason of this Agreement, and (d) neither
the Collateral Agent nor any of the Secured Parties shall be obligated to perform any of the obligations or duties of the Loan
Parties or the Servicer under the Collateral Obligations, Assigned Agreements or other agreements included in the Collateral or
to take any action to collect or enforce any claim for payment assigned under this Agreement.

 

Section 12.4         Release
of Collateral. (a) Until the Obligations have been paid in full and the Commitments have been reduced to zero, the Collateral
Agent may not release any Lien covering any Collateral except for (i) Collateral Obligations sold pursuant to Section 9.34
or Section 9.36, (ii) any Related Security identified by the applicable Loan Party (or the Servicer on behalf of such
Loan Party) to the Collateral Agent so long as the Facility Termination Date has not occurred, (iii) Repurchased Collateral Obligations
or Substituted Collateral Obligations pursuant to Section 9.35 or (iv) pursuant to clause (b) below.

 

In connection with
the release of a Lien on any Collateral permitted pursuant to this Section 12.4 as requested by the Servicer, the Collateral
Agent, on behalf of the Secured Parties, will, at the sole expense of the Servicer, execute and deliver to the Servicer or its
designee any assignments, bills of sale, termination statements and any other releases and instruments as the Servicer may reasonably
request and prepare in order to effect the release and transfer of such Collateral; provided, that the Collateral Agent,
on behalf of the Secured Parties, will make no representation or warranty, express or implied, with respect to any such Collateral
in connection with such sale or transfer and assignment.

 

(b)       A
Securitization Subsidiary may obtain the release of its entire Securitization Subsidiary Collateral Portfolio and shall no longer
be party to this Agreement upon (i) the closing of a Securitization by such Securitization Subsidiary and transfer by the Borrower
of the equity in such Securitization Subsidiary to an Affiliate, third party or charitable trust or any combination of the foregoing
and (ii) satisfaction of the following conditions precedent:

 

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(i)       the
Borrower shall have delivered a pro forma Borrowing Base Certificate and Schedule of Collateral Obligations to the Facility Agent
reflecting such release;

 

(ii)       the
Borrower shall deliver a list of all Loans to be released;

 

(iii)       the
Borrower shall have provided fifteen (15) Business Days’ prior notice of such release to the Facility Agent and the Collateral
Agent and the Facility Agent shall have provided its prior written consent to such release in its sole discretion;

 

(iv)       the
Borrower shall have notified the Facility Agent of any amount to be deposited into the Borrower’s Collection Account in connection
with such release;

 

(v)       the
representations and warranties contained in Article IX hereof shall be correct in all material respects, except to the extent
relating to an earlier date, after giving effect to such release;

 

(vi)       no
Unmatured Event of Default or Event of Default has occurred and is continuing, and after giving effect to such release of the applicable
Securitization Subsidiary Collateral Portfolio and the deposit into the Collection Account in connection therewith and any payments
of Advances Outstanding expected to be made in connection with the closing of the Securitization, no Unmatured Event of Default
or Event of Default shall exist;

 

(vii)       the
Borrower and the Servicer (on behalf of the Borrower) shall agree to pay the legal fees and expenses of the Facility Agent, each
Lender, each Agent, Collateral Agent and the Collateral Custodian in connection with any such release;

 

(viii)       the
Borrower shall pay any Hedge Breakage Costs arising as a result of such release and owed to the relevant Hedge Counterparty for
any termination of one or more Hedge Transactions, in whole or in part, if applicable, as required by the terms of any Hedging
Agreement;

 

(ix)       no
Borrowing Base Deficiency exists nor will occur after such release; and

 

(x)       on
the date of such release, Facility Agent shall have received, for the benefit of the Lenders, in immediately available funds, an
amount equal to the sum of (A) the sum of the products, for each Collateral Obligation included in the Securitization Subsidiary
Collateral Portfolio being released, of (1) (x) during the Revolving Period, the Advance Rate with respect to such Collateral Obligation
and (y) after the Revolving Period, 100% multiplied by (2) the Principal Balance of such Collateral Obligation, (B) an
amount equal to all unpaid Yield to the extent reasonably determined by Facility Agent to be attributable to that portion of the
Principal Balance to be paid in connection with such release and (C) an aggregate amount equal to the sum of all unpaid Obligations
then due and owing to the Collateral Agent, the Collateral Custodian, the Facility Agent and the Lenders, under this Agreement
and the other Transaction Documents, to the extent accrued to such date and to accrue thereafter (including amounts owed under
Section 5.1), to the extent reasonably determined by Facility Agent to be attributable to that portion of the Principal
Balance to be paid in connection with such release (in each case to the extent notified by Facility Agent to Borrower at least
one (1) Business Day prior to the related date of such release).

 

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The Collateral Agent,
for the benefit of the Secured Parties, shall, at the sole expense of the Servicer and at the direction of the Facility Agent,
execute such documents and instruments of release as may be prepared by the Servicer on behalf of applicable Securitization Subsidiary,
give notice of such release to the Collateral Custodian (unless the Collateral Custodian and Collateral Agent are the same Person)
and take other such actions (including consenting to a UCC-3 termination for the relevant Securitization Subsidiary, as applicable)
as shall reasonably be requested by the applicable Securitization Subsidiary to effect such release of the Lien in such Securitization
Subsidiary Collateral Portfolio created pursuant to this Agreement (which release shall be effective simultaneous with the closing
of the relevant Securitization) and to evidence that such Securitization Subsidiary is no longer party to this Agreement. Upon
receiving such notification by the Collateral Agent as described in the immediately preceding sentence, if applicable, the Collateral
Custodian shall deliver the loan documents to the applicable Securitization Subsidiary or any trustee or collateral administrator
of such Securitization Subsidiary, as applicable, as directed by the Servicer.

 

Article
XIII

EVENTs OF DEFAULT

 

Section 13.1         Events
of Default. Any of the following shall constitute an “Event of Default” under this Agreement:

 

(a)       the
Borrower shall fail to pay any amount on the Obligations (x) on the Facility Termination Date or (y) as otherwise provided for
in any Transaction Document when due (in all cases, whether on any Distribution Date, on the Facility Termination Date, by reason
of acceleration, by notice of intention to prepay, by required prepayment or otherwise) and, solely in the case of clause (y),
such failure continues for three (3) Business Days;

 

(b)       any
Loan Party or the Equityholder shall fail to perform or observe any other term, covenant or agreement contained in this Agreement,
or any other Transaction Document on its part to be performed or observed (it being understood, without limiting the generality
of the foregoing, that the failure to satisfy any Collateral Quality Test, the Minimum Equity Condition, the Revolving Liquidity
Test or the Foreign Currency Sublimit or the existence of a Borrowing Base Deficiency is not, in and of itself, an Event of Default
except to the extent that such failure otherwise constitutes an Event of Default in this Section 13.1) and, except in the
case of the covenants and agreements contained in Section 10.7 (Tangible Net Worth), Section 10.9 (Merger,
Consolidation, Etc.), Section 10.11 (Indebtedness, Guarantees), Section 10.12 (Limitation on Purchases
from Affiliates), Section 10.14 (Preservation of Existence) and Section 10.16 (Distributions) as
to each of which no grace period shall apply, any such failure shall remain unremedied for thirty (30) days after the earlier to
occur of (i) the date on which written notice of such incorrectness requiring the same to be remedied shall have been given
to such Loan Party or the Equityholder by the Facility Agent, and (ii) the date on which a Responsible Officer of such Loan
Party or Equityholder acquires knowledge thereof;

 

    	 	-134-	 

     

    

 

(c)       any
representation or warranty of any Loan Party or Equityholder made or deemed to have been made hereunder or in any other Transaction
Document or any certificate furnished by or on behalf of any Loan Party, such other Loan Party, the Equityholder or the Servicer
to the Facility Agent or any Lender for purposes of or in connection with this Agreement or any other Transaction Document (including
any Monthly Report) shall prove to have been false or incorrect in any material respect (other than those representations or warranties
that are already so qualified) when made or deemed to have been made and, except in the case of the Borrower’s representation
in Section 9.21(c), the same continues unremedied (provided, that no breach shall be deemed to occur hereunder in
respect of any representation or warranty relating to the “eligibility” of any Collateral Obligation if the Borrower
complies with its obligations in Section 9.35 with respect to such Collateral Obligation) for a period of thirty (30) days
after the earlier to occur of (i) the date on which written notice of such incorrectness requiring the same to be remedied
shall have been given to such Loan Party or the Equityholder by the Facility Agent, and (ii) the date on which a Responsible
Officer of such Loan Party or Equityholder acquires knowledge thereof;

 

(d)       an
Insolvency Event shall have occurred and be continuing with respect to any Loan Party or the Equityholder;

 

(e)       other
than solely as a result of an Excepted Borrowing Base Breach, a Borrowing Base Deficiency exists and is not cured in accordance
with Section 2.10;

 

(f)       the
Internal Revenue Service shall file notice of a Lien pursuant to Section 6321 of the Code with regard to any of the assets of a
Loan Party;

 

(g)       an
ERISA Event occurs that, alone or together with all other ERISA Events that have occurred, would reasonably be expected to have
a Material Adverse Effect;

 

(h)       (i) any
Transaction Document or any Lien granted thereunder shall (except in accordance with its terms), in whole or in material part,
terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the Loan Parties; or (ii) a
Loan Party or any other Person shall, directly or indirectly, contest in any manner the effectiveness, validity, binding nature
or enforceability of any Transaction Document; or (iii) any security interest securing any Obligation shall, in whole or in
part, cease to be a perfected first priority security interest (except, as to priority, for Permitted Liens);

 

(i)       a
Servicer Default shall have occurred and be continuing;

 

(j)       failure
of any Loan Party to make any payment when due (after giving effect to any related grace period) under one or more agreements for
borrowed money to which it is a party in an aggregate amount in excess of $100,000, individually or in the aggregate; or the occurrence
of any event or condition that gives rise to a right of acceleration with respect to such recourse debt in excess of $100,000;

 

(k)       a
Change of Control shall have occurred;

 

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(l)       either
(i) the Borrower or any Securitization Subsidiary shall become required to register as an “investment company” within
the meaning of the 1940 Act or the arrangements contemplated by the Transaction Documents shall require registration as an “investment
company” within the meaning of the 1940 Act or (ii) the Equityholder ceases to be a “business development company”
within the meaning of the 1940 Act;

 

(m)       failure
on the part of a Loan Party, the Equityholder or the Servicer to (i) make any payment or deposit (including, without limitation,
with respect to bifurcation and remittance of Principal Collections and Interest Collections or any other payment or deposit required
to be made by the terms of the Transaction Documents) required by the terms of any Transaction Document in accordance with Section
7.3(b) and Section 10.10 or (ii) otherwise observe or perform any covenant, agreement or obligation with respect
to the management and distribution of funds received with respect to the Collateral;

 

(n)       (i) failure
of the Borrower or any Securitization Subsidiary to maintain at least one Independent Member or (ii) the removal of any Independent
Member without Cause or prior written notice to the Facility Agent (in each case as required by the Constituent Documents of the
Borrower or such Securitization Subsidiary); provided that such Loan Party shall have ten (10) Business Days to replace
any Independent Member upon the death, incapacitation or resignation (or such other fact or circumstance beyond the control of
the Borrower or such Securitization Subsidiary) of the current Independent Member;

 

(o)       any
Loan Party makes any assignment or attempted assignment of its respective rights or obligations under this Agreement or any other
Transaction Document without first obtaining the specific written consent of the Facility Agent, which consent may be withheld
in the exercise of its sole and absolute discretion;

 

(p)       any
court shall render a final, non-appealable judgment against any Loan Party in an amount in excess of $100,000 which shall not be
satisfactorily stayed, discharged, vacated, set aside or satisfied within 30 days of the making thereof;

 

(q)       any
Loan Party shall fail to qualify as a bankruptcy-remote entity based upon customary criteria such that Dechert LLP or any other
reputable counsel could no longer render a substantive nonconsolidation opinion with respect to the Loan Party; or

 

(r)       at
any time, the Minimum Equity Condition is not satisfied and is not cured in accordance with Section 2.10.

 

Section 13.2         Effect
of Event of Default.

 

(a)       Optional
Termination. Upon notice by the Collateral Agent or the Facility Agent that an Event of Default (other than an Event of Default
described in Section 13.1(d)) has occurred, the Revolving Period will automatically terminate and no Advances will
thereafter be made, and the Collateral Agent (at the direction of the Facility Agent) may declare all or any portion of the outstanding
principal amount of the Advances and other Obligations to be due and payable, whereupon the full unpaid amount of such Advances
and other Obligations which shall be so declared due and payable shall be and become immediately due and payable, without further
notice, demand or presentment (all of which are hereby expressly waived by the Borrower) and the Facility Termination Date shall
be deemed to have occurred.

 

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(b)       Automatic
Termination. Upon the occurrence of an Event of Default described in Section 13.1(d), the Facility Termination
Date shall be deemed to have occurred automatically, and all Advances Outstanding under this Agreement and all other Obligations
under this Agreement shall become immediately and automatically due and payable, all without presentment, demand, protest or notice
of any kind (all of which are hereby expressly waived by the Borrower).

 

Section 13.3         Rights
upon Event of Default. If an Event of Default shall have occurred and be continuing, the Facility Agent may, in its sole discretion,
direct the Collateral Agent to exercise any of the remedies specified herein in respect of the Collateral and the Collateral Agent
shall promptly, at the written direction of the Facility Agent, also do one or more of the following (subject to Section 13.9
and Section 11.8(m)):

 

(a)       institute
proceedings in its own name and on behalf of the Secured Parties as Collateral Agent for the collection of all Obligations, whether
by declaration or otherwise, enforce any judgment obtained, and collect from the Borrower and any other obligor with respect thereto
moneys adjudged due, for the specific enforcement of any covenant or agreement in any Transaction Document or in the exercise of
any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the Collateral Agent by Applicable
Law or any Transaction Document;

 

(b)       exercise
any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the right and remedies
of the Collateral Agent and the Secured Parties which rights and remedies shall be cumulative; and

 

(c)       require
the Borrower and the Servicer, at the Borrower’s expense, to (1) assemble all or any part of the Collateral as directed
by the Collateral Agent (at the direction of the Facility Agent) and make the same available to the Collateral Agent at a place
to be designated by the Collateral Agent (at the direction of the Facility Agent) that is reasonably convenient to such parties
and (2) without notice except as specified below, sell the Collateral (at the direction of the Facility Agent) or any part
thereof in one or more parcels at a public or private sale, at any of the Collateral Agent’s or the Facility Agent’s
offices or elsewhere in accordance with Applicable Law. The Borrower agrees that, to the extent notice of sale shall be required
by law, at least ten days’ notice to the Borrower of the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may, at the Borrower’s expense, engage a liquidation
agent satisfactory to the Facility Agent in its sole discretion in order to solicit and accept bids for and sell the Collateral.
The Collateral Agent (at the direction of the Facility Agent) may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned. All cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization
upon, all or any part of the Collateral (after payment of any amounts incurred in connection with such sale) shall be deposited
into the Collection Account and to be applied against the outstanding Obligations pursuant to Section 4.1. The Servicer,
the Lenders and any of their respective Affiliates shall be permitted to participate in any such sale.

 

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Section 13.4         Collateral
Agent May Enforce Claims Without Possession of Notes.

 

  All rights
of action and of asserting claims under the Transaction Documents, may be enforced by the Collateral Agent (at the direction of
the Facility Agent) without the possession of the Notes or the production thereof in any trial or other proceedings relative thereto,
and any such action or proceedings instituted by the Collateral Agent shall be brought in its own name as Collateral Agent and
any recovery of judgment, subject to the payment of the reasonable, out-of-pocket and documented expenses, disbursements and compensation
of the Collateral Agent, each predecessor Collateral Agent and their respective agents and attorneys, shall be for the ratable
benefit of the holders of the Notes and other Secured Parties.

 

Section 13.5         Collective
Proceedings.  In any proceedings brought by the Collateral Agent to enforce the Liens under the Transaction Documents
(and also any proceedings involving the interpretation of any provision of any Transaction Document), the Collateral Agent shall
be held to represent all of the Secured Parties, and it shall not be necessary to make any Secured Party a party to any such proceedings.

 

Section 13.6         Insolvency
Proceedings.  In case there shall be pending, relative to the Borrower or any other obligor upon the Advances or
any Person having or claiming an ownership interest in the Collateral, proceedings under the Bankruptcy Code or any other applicable
federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Borrower, its property or
such other obligor or Person, or in case of any other comparable judicial proceedings relative to the Borrower or other obligor
upon the Advances, or to the creditors of property of the Borrower or such other obligor, the Collateral Agent, irrespective of
whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Collateral Agent shall have made any demand pursuant to the provisions of this Section 13.6, shall be entitled
and empowered but without any obligation, subject to Section 13.9(a), by intervention in such proceedings or otherwise:

 

(a)       to
file and prove a claim or claims for the whole amount of principal and Yield owing and unpaid in respect of the Notes, all other
amounts owing to the Lenders and to file such other papers or documents as may be necessary or advisable in order to have the claims
of the Collateral Agent (including any claim for reimbursement of all expenses (including the fees and expenses of counsel) and
liabilities incurred, and all advances, if any, made, by the Collateral Agent and each predecessor Collateral Agent except as determined
to have been caused by its own gross negligence or willful misconduct) and of each of the other Secured Parties allowed in such
proceedings;

 

(b)       unless
prohibited by Applicable Law and regulations, to vote (at the direction of the Facility Agent) on behalf of the holders of the
Notes in any election of a trustee, a standby trustee or person performing similar functions in any such proceedings;

 

    	 	-138-	 

     

    

 

(c)       to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Secured Parties on their behalf; and

 

(d)       to
file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Collateral
Agent or the Secured Parties allowed in any judicial proceedings relative to the Borrower, its creditors and its property;

 

and any trustee, receiver,
liquidator, collateral agent or trustee or other similar official in any such proceeding is hereby authorized by each of such Secured
Parties to make payments to the Collateral Agent and, in the event that the Collateral Agent shall consent (at the direction of
the Facility Agent) to the making of payments directly to such Secured Parties, to pay to the Collateral Agent such amounts as
shall be sufficient to cover all reasonable expenses and liabilities incurred, and all advances made, by the Collateral Agent and
each predecessor Collateral Agent except as determined to have been caused by its own gross negligence or willful misconduct.

 

Section 13.7         Delay
or Omission Not Waiver. No delay or omission of the Collateral Agent or of any other Secured Party to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article XIII or by law to the Collateral Agent or to the
other Secured Parties may be exercised from time to time, and as often as may be deemed expedient, by the Collateral Agent or by
the other Secured Parties, as the case may be.

 

Section 13.8         Waiver
of Stay or Extension Laws. The Borrower waives and covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force (including filing a voluntary petition under Chapter 11 of the Bankruptcy
Code and by the voluntary commencement of a proceeding or the filing of a petition seeking winding up, liquidation, reorganization
or other relief under any bankruptcy, insolvency, receivership or similar law now or hereafter in effect), which may affect the
covenants, the performance of or any remedies under this Agreement; and the Borrower (to the extent that it may lawfully do so)
hereby expressly waives all benefits or advantages of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Collateral Agent, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

Section 13.9         Limitation
on Duty of Collateral Agent in Respect of Collateral. (a) Beyond the safekeeping of the Collateral Obligation Files in accordance
with Article XVIII, neither the Collateral Agent nor the Collateral Custodian shall have any duty as to any Collateral
in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to preservation
of rights against prior parties or any other rights pertaining thereto and neither the Collateral Agent nor the Collateral Custodian
shall be responsible for filing any financing or continuation statements or recording any documents or instruments in any public
office at any time or times or otherwise perfecting or maintaining the perfection of any security interest in the Collateral. Neither
the Collateral Agent nor the Collateral Custodian shall be liable or responsible for any misconduct, gross negligence or loss or
diminution in the value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency or other agent,
attorney or bailee selected by the Collateral Agent or the Collateral Custodian in good faith and with due care hereunder.

 

    	 	-139-	 

     

    

 

(b)       Neither
the Collateral Agent nor the Collateral Custodian shall be responsible for the existence, genuineness or value of any of the Collateral
or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation
of law or by reason of any action or omission to act on its part hereunder, or for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral.

 

(c)       Neither
the Collateral Agent nor the Collateral Custodian shall have any duty to act outside of the United States in respect of any Collateral
located in any jurisdiction other than the United States.

 

Section 13.10         Power
of Attorney. (a)  Each Loan Party and the Servicer hereby irrevocably appoints during the occurrence and continuation
of an Event of Default the Collateral Agent as its true and lawful attorney (with full power of substitution) in its name, place
and stead and at its expense (at the direction of the Facility Agent), in connection with the enforcement of the rights and remedies
provided for and subject to the terms and conditions set forth in this Agreement including without limitation the following powers:
(i) to give any necessary receipts or acquittance for amounts collected or received hereunder, (ii) to make all necessary
transfers of the Collateral in connection with any such sale or other disposition made pursuant hereto, (iii) to execute and
deliver for value all necessary or appropriate bills of sale, assignments and other instruments in connection with any such sale
or other disposition, such Loan Party and the Servicer hereby ratifying and confirming all that such attorney (or any substitute)
shall lawfully do hereunder and pursuant hereto, and (iv) to sign any agreements, orders or other documents in connection
with or pursuant to any Transaction Document. Nevertheless, if so requested by the Collateral Agent, subject to Section 13.3(c)
above, such Loan Party, upon five (5) days’ notice from the Collateral Agent, shall ratify and confirm any such sale or other
disposition by executing and delivering to the Collateral Agent all proper bills of sale, assignments, releases and other instruments
as may be designated in any such request.

 

(b)       No
person to whom this power of attorney is presented as authority for the Collateral Agent to take any action or actions contemplated
by clause (a) shall inquire into or seek confirmation from such Loan Party or the Servicer as to the authority of the Collateral
Agent to take any action described below, or as to the existence of or fulfillment of any condition to the power of attorney described
in clause (a), which is intended to grant to the Collateral Agent unconditionally the authority to take and perform the actions
contemplated herein, and each Loan Party and the Servicer irrevocably waives any right to commence any suit or action, in law or
equity, against any person or entity that acts in reliance upon or acknowledges the authority granted under this power of attorney.
The power of attorney granted in clause (a) is coupled with an interest and may not be revoked or canceled by such Loan Party or
the Servicer until all Obligations (other than contingent obligations for which no claim has been made) of such Loan Party under
the Transaction Documents have been paid in full and the Collateral Agent has provided its written consent thereto.

 

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(c)       Notwithstanding
anything to the contrary herein, the power of attorney granted pursuant to this Section 13.10 shall only be effective after
the occurrence and during the continuation of an Event of Default.

 

Article
XIV

THE FACILITY AGENT

 

Section 14.1         Appointment.
Each Lender and each Agent hereby irrevocably designates and appoints DBNY as Facility Agent hereunder and under the other Transaction
Documents, and authorizes the Facility Agent to take such action on its behalf under the provisions of this Agreement and the other
Transaction Documents and to exercise such powers and perform such duties as are expressly delegated to the Facility Agent by the
terms of this Agreement and the other Transaction Documents, together with such other powers as are reasonably incidental thereto.
Each Lender in each Lender Group hereby irrevocably designates and appoints the Agent for such Lender Group as the agent of such
Lender under this Agreement, and each such Lender irrevocably authorizes such Agent, as the agent for such Lender, to take such
action on its behalf under the provisions of this Agreement and the other Transaction Documents and to exercise such powers and
perform such duties thereunder as are expressly delegated to such Agent by the terms of this Agreement and the other Transaction
Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, neither the Facility Agent nor any Agent (the Facility Agent and each Agent being referred to in this
Article XIV as a “Note Agent”) shall have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations
or liabilities shall be read into this Agreement or otherwise exist against any Note Agent.

 

Section 14.2         Delegation
of Duties. Each Note Agent may execute any of its duties under this Agreement and the other Transaction Documents by or through
its subsidiaries, affiliates, agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining
to such duties. No Note Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected
by it with reasonable care.

 

Section 14.3         Exculpatory
Provisions. No Note Agent (acting in such capacity) nor any of its directors, officers, agents or employees shall be (a) liable
for any action lawfully taken or omitted to be taken by it or them or any Person described in Section 14.2 under or
in connection with this Agreement or the other Transaction Documents or (b) responsible in any manner to any Person for any
recitals, statements, representations or warranties of any Person (other than itself) contained in the Transaction Documents or
in any certificate, report, statement or other document referred to or provided for in, or received under or in connection with,
the Transaction Documents or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of the Transaction
Documents or any other document furnished in connection therewith or herewith, or for any failure of any Person (other than itself
or its directors, officers, agents or employees) to perform its obligations under any Transaction Document or for the satisfaction
of any condition specified in a Transaction Document. Except as otherwise expressly provided in this Agreement, no Note Agent shall
be under any obligation to any Person to ascertain or to inquire as to the observance or performance of any of the agreements or
covenants contained in, or conditions of, the Transaction Documents, or to inspect the properties, books or records of any Loan
Party or the Servicer.

 

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Section 14.4         Reliance
by Note Agents. Each Note Agent shall in all cases be entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to each of the Lenders), Independent
Accountants and other experts selected by such Note Agent. Each Note Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement, any other Transaction Document or any other document furnished in connection
herewith or therewith unless it shall first receive such advice or concurrence of the Lenders, as it deems appropriate, or it shall
first be indemnified to its satisfaction (i) in the case of the Facility Agent, by the Lenders or (ii) in the case of
an Agent, by the Lenders in its Lender Group, against any and all liability, cost and expense which may be incurred by it by reason
of taking or continuing to take any such action. The Facility Agent shall in all cases be fully protected in acting, or in refraining
from acting, under this Agreement, the other Transaction Documents or any other document furnished in connection herewith or therewith
in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto
shall be binding upon all the Lenders. Each Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement, the other Transaction Documents or any other document furnished in connection herewith or therewith in accordance
with a request of the Lenders in its Lender Group holding greater than 50% of the Advances Outstanding held by such Lender Group,
and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders in such Lender Group.

 

Section 14.5         Notices.
No Note Agent shall be deemed to have knowledge or notice of the occurrence of any breach of this Agreement or the occurrence of
any Event of Default unless it has received notice from the Servicer, the Borrower or any Lender, referring to this Agreement and
describing such event. In the event any Agent receives such a notice, it shall promptly give notice thereof to the Lenders in its
Lender Group. The Facility Agent shall take such action with respect to such event as shall be reasonably directed in writing by
the Required Lenders, and each Agent shall take such action with respect to such event as shall be reasonably directed by Lenders
in its Lender Group holding greater than 50% of the Advances Outstanding held by such Lender Group; provided, that unless
and until such Note Agent shall have received such directions, such Note Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such event as it shall deem advisable in the best interests of the Lenders
or of the Lenders in its Lender Group, as applicable.

 

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Section 14.6         Non-Reliance
on Note Agents. The Lenders expressly acknowledge that no Note Agent, nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by any Note Agent hereafter taken,
including any review of the affairs of the Borrower or the Servicer, shall be deemed to constitute any representation or warranty
by such Note Agent to any Lender. Each Lender represents to each Note Agent that it has, independently and without reliance upon
any Note Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Borrower,
the Servicer, and the Collateral Obligations and made its own decision to purchase its interest in the Notes hereunder and enter
into this Agreement. Each Lender also represents that it will, independently and without reliance upon any Note Agent or any other
Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis,
appraisals and decisions in taking or not taking action under any of the Transaction Documents, and to make such investigation
as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness
of the Borrower, the Servicer, and the Collateral Obligations. Except as expressly provided herein, no Note Agent shall have any
duty or responsibility to provide any Lender with any credit or other information concerning the Collateral or the business, operations,
property, prospects, financial and other condition or creditworthiness of the Borrower, the Servicer or the Lenders which may come
into the possession of such Note Agent or any of its officers, directors, employees, agents, attorneys-in-fact or affiliates.

 

In no event shall any
Note Agent be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but
not limited to, lost profits, even if such Note Agent has been advised of the likelihood of such loss or damage and regardless
of the form of action. In no event shall any Note Agent be liable for any failure or delay in the performance of its obligations
hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared
or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action
or the like which delay, restrict or prohibit the providing of the services contemplated by this Agreement.

 

Section 14.7         Indemnification.
The Lenders agree to indemnify the Facility Agent and its officers, directors, employees, representatives and agents (to the extent
not reimbursed by the Borrower or the Servicer under the Transaction Documents, and without limiting the obligation of such Persons
to do so in accordance with the terms of the Transaction Documents), ratably according to the outstanding amounts of their Advances
(or their Commitments, if no Advances are outstanding) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (including the reasonable
fees and disbursements of counsel for the Facility Agent or the affected Person in connection with any investigative, or judicial
proceeding commenced or threatened, whether or not the Facility Agent or such affected Person shall be designated a party thereto)
that may at any time be imposed on, incurred by or asserted against the Facility Agent or such affected Person as a result of,
or arising out of, or in any way related to or by reason of, any of the transactions contemplated hereunder or under the Transaction
Documents or any other document furnished in connection herewith or therewith.

 

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Section 14.8         Successor
Note Agent. If the Facility Agent shall resign as Facility Agent under this Agreement, then the Required Lenders (with the
prior written consent of the Borrower) shall appoint a successor agent, whereupon such successor agent shall succeed to the rights,
powers and duties of the Facility Agent, and the term “Facility Agent” shall mean such successor agent, effective upon
its acceptance of such appointment, and the former Facility Agent’s rights, powers and duties as Facility Agent shall be
terminated, without any other or further act or deed on the part of such former Facility Agent or any of the parties to this Agreement.
Any Agent may resign as Agent upon ten days’ notice to the Lenders in its Lender Group and the Facility Agent (with a copy
to the Borrower) with such resignation becoming effective upon a successor agent succeeding to the rights, powers and duties of
the Agent pursuant to this Section 14.8. If an Agent shall resign as Agent under this Agreement, then Lenders in its Lender
Group holding greater than 50% of the Advances Outstanding held by such Lender Group shall appoint a successor agent for such Lender
Group. After any Note Agent’s resignation hereunder, the provisions of this Article XIV shall inure to its benefit
as to any actions taken or omitted to be taken by it while it was a Note Agent under this Agreement. No resignation of any Note
Agent shall become effective until a successor Note Agent shall have assumed the responsibilities and obligations of such Note
Agent hereunder; provided, that in the event a successor Note Agent is not appointed within 60 days after such notice of
its resignation is given as permitted by this Section 14.8, the applicable Note Agent may petition a court for its
removal.

 

Section 14.9         Note
Agents in their Individual Capacity. Each Note Agent and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Borrower or the Servicer as though such Note Agent were not an agent hereunder. Any Person
which is a Note Agent may act as a Note Agent without regard to and without additional duties or liabilities arising from its role
as such administrator or agent or arising from its acting in any such other capacity.

 

Section 14.10         Borrower
Agreed-Upon Procedures. The Facility Agent shall retain Protiviti, Inc. (or another nationally recognized audit firm acceptable
to the Facility Agent in its sole discretion) to conduct and complete a procedural review of the Collateral Obligations in compliance
with the standards set forth on Exhibit B hereto (as such Exhibit B may be reasonably amended from time to time as
agreed to by the Facility Agent and the Servicer), (i) within 90 days after the Effective Date and (ii) annually at the request
of the Facility Agent thereafter. The Facility Agent shall promptly forward the results of such agreed-upon procedures to the Servicer.

 

Section 14.11         Compliance
with Anti-Bribery and Corruption, Anti-Terrorism and Money Laundering Regulations. In order to comply with Applicable Banking
Law, the Facility Agent is required to obtain, verify, record and update certain information relating to individuals and entities
which maintain a business relationship with the Facility Agent. Accordingly, each of the parties agree to provide to the Facility
Agent, upon its reasonable request from time to time such identifying information and documentation as may be available for such
party in order to enable the Facility Agent to comply with Applicable Banking Law.

 

    	 	-144-	 

     

    

 

Article
XV

ASSIGNMENTS

 

Section 15.1         Restrictions
on Assignments by the Borrower and the Servicer. Except as specifically provided herein, neither the Borrower nor the Servicer
may assign any of their respective rights or obligations hereunder or any interest herein without the prior written consent of
the Facility Agent and the Required Lenders in their respective sole discretion and any attempted assignment in violation of this
Section 15.1 shall be null and void; provided that the Borrower and/or Servicer gives the Collateral Agent prior
written notice sufficient to enable the Collateral Agent to complete its verification process that it may legally transact business
with the proposed assignee pursuant to the limitations and requirements of Section 11.12 hereof and the requirements and
limitations of Collateral Agent’s “know your customer” rules that may be in effect from time to time.

 

Section 15.2         Documentation.
In connection with any permitted assignment, each Lender shall deliver to each assignee an assignment, in such form as such Lender
and the related assignee may agree, duly executed by such Lender assigning any such rights, obligations, Advance or Note to the
assignee; and such Lender shall promptly execute and deliver all further instruments and documents, and take all further action,
that the assignee may reasonably request, in order to perfect, protect or more fully evidence the assignee’s right, title
and interest in and to the items assigned, and to enable the assignee to exercise or enforce any rights hereunder or under the
Notes evidencing such Advance. In the case of an assignment of any Commitment (or any portion thereof) or any Advance (or any portion
thereof) the assignee shall execute and deliver to the Servicer, the Borrower, the Facility Agent and the Collateral Agent a fully
executed Joinder Agreement substantially in the form of Exhibit E hereto. If the assignee is not an existing Lender
it shall deliver to the Facility Agent any tax forms and other information requested by the Facility Agent for purposes of conducting
its customary “know your customer” inquiries.

 

Section 15.3         Rights
of Assignee. Upon the foreclosure of any assignment of any Advances made for security purposes, or upon any other assignment
of any Advance from any Lender pursuant to this Article XV, the respective assignee receiving such assignment shall
have all of the rights of such Lender hereunder with respect to such Advances and all references to the Lender or Lenders in Sections
4.3 or 5.1 shall be deemed to apply to such assignee.

 

Section 15.4         Assignment
by Lenders. Any Lender may assign an interest in, or sell a participation interest in any Advance (or portion thereof) or its
Commitment (or any portion thereof) pursuant to any one of the following clauses (a) through (e); provided, that no transfer
or assignment may be made to the Servicer, the Equityholder or an Affiliate thereof without the prior written consent of the Facility
Agent and in no event prior to the occurrence and continuation of an Event of Default shall any Lender make any such assignment
or participation to any Disqualified Institution:

 

(a)       if
an Event of Default or Servicer Default has occurred and is continuing;

 

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(b)       to
an Affiliate of such Lender;

 

(c)       to
another Lender;

 

(d)       to
any Person if such Lender makes a determination that its ownership of any of its rights or obligations hereunder is prohibited
by Applicable Law (including, without limitation, the Volcker Rule); or

 

(e)       to
any Person with the prior written consent of the Borrower and the Servicer (or the Equityholder if the Servicer is not an Affiliate
thereof) (such consent not to be unreasonably withheld, delayed or conditioned);

 

provided, that
each Lender shall first offer to sell such interest(s) to (i) the Lender affiliated with the Facility Agent and, if such Lender
does not accept such offer within 10 Business Days, then (ii) to each remaining Lender (pro rata) for a period of 10 Business Days
prior to offering to any Person that is not an existing Lender.

 

Each Lender shall endorse
the Notes to reflect any assignments made pursuant to this Article XV or otherwise.

 

Section 15.5         Registration;
Registration of Transfer and Exchange. (a)  The Facility Agent, acting solely for this purpose as agent for the Borrower
(and, in such capacity, the “Loan Registrar”), shall maintain a register for the recordation of the name and
address of each Lender (including any assignees), and the principal amounts (and stated interest) owing to such Lender pursuant
to the terms hereof from time to time (the “Loan Register”).  The entries in the Loan Register shall be
conclusive absent manifest error, and the Borrower, the Collateral Agent, the Facility Agent, each Agent and each Lender shall
treat each Person whose name is recorded in the Loan Register pursuant to the terms hereof as a Lender hereunder.  The Loan
Register shall be available for inspection by any Lender at any reasonable time and from time to time upon reasonable prior notice.

 

(b)       Each
Person who has or who acquired an interest in a Note shall be deemed by such acquisition to have agreed to be bound by the provisions
of this Section 15.5(b). A Note may be exchanged (in accordance with Section 15.5(c)) and transferred to
the holders (or their agents or nominees) of the Advances and to any assignee (in accordance with Section 15.1) (or
its agent or nominee) of all or a portion of the Advances. The Loan Registrar shall not register (or cause to be registered) the
transfer of such Note, unless the proposed transferee shall have delivered to the Loan Registrar either (i) an Opinion of
Counsel that the transfer of such Note is exempt from registration or qualification under the Securities Act of 1933, as amended,
and all applicable state securities laws and that the transfer does not constitute a non-exempt “prohibited transaction”
under ERISA or (ii) an express agreement by the proposed transferee to be bound by and to abide by the provisions of this
Section 15.5(b) and the restrictions noted on the face of such Note.

 

(c)       At
the option of the holder thereof, a Note may be exchanged for one or more new Notes of any authorized denominations and of a like
class and aggregate principal amount at an office or agency of the Borrower. Whenever any Note is so surrendered for exchange,
the Borrower shall execute and deliver (through the Loan Registrar) the new Note which the holder making the exchange is entitled
to receive at the Loan Registrar’s office, located at DB Services Americas Inc., 5022 Gate Parkway, Suite 200, Jacksonville,
Florida, 32256, Attention: Transfer Unit.

 

    	 	-146-	 

     

    

 

(d)       Upon
surrender for registration of transfer of any Note at an office or agency of the Borrower, the Borrower shall execute and deliver
(through the Loan Registrar), in the name of the designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like class and aggregate principal amount.

 

(e)       All
Notes issued upon any registration of transfer or exchange of any Note in accordance with the provisions of this Agreement shall
be the valid obligations of the Borrower, evidencing the same debt, and entitled to the same benefits under this Agreement, as
the Note(s) surrendered upon such registration of transfer or exchange.

 

(f)       Every
Note presented or surrendered for registration of transfer or for exchange shall (if so required by the Borrower or the Loan Registrar)
be fully endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Loan Registrar, duly executed
by the holder thereof or his attorney duly authorized in writing.

 

(g)       No
service charge shall be made for any registration of transfer or exchange of a Note, but the Borrower may require payment from
the transferee holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any registration of transfer of exchange of a Note.

 

(h)       The
holders of the Notes shall be bound by the terms and conditions of this Agreement.

 

Section 15.6         Mutilated,
Destroyed, Lost and Stolen Notes. (a)  If any mutilated Note is surrendered to the Loan Registrar, the Borrower shall
execute and deliver (through the Loan Registrar) in exchange therefor a new Note of like class and tenor and principal amount and
bearing a number not contemporaneously outstanding.

 

(b)       If
there shall be delivered to the Borrower and the Loan Registrar prior to the payment of the Notes (i) evidence to their satisfaction
of the destruction, loss or theft of any Note and (ii) such security or indemnity as may be required by them to save each
of them and any agent of either of them harmless, then, in the absence of notice to the Borrower or the Loan Registrar that such
Note has been acquired by a bona fide Lender, the Borrower shall execute and deliver (through the Loan Registrar), in lieu
of any such destroyed, lost or stolen Note, a new Note of like class, tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

(c)       Upon
the issuance of any new Note under this Section 15.6, the Borrower may require the payment from the transferor holder
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses
connected therewith.

 

    	 	-147-	 

     

    

 

(d)       Every
new Note issued pursuant to this Section 15.6 and in accordance with the provisions of this Agreement, in lieu of any
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Borrower, whether or not the
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement
equally and proportionately with any and all other Notes duly issued hereunder.

 

(e)       The
provisions of this Section 15.6 are exclusive and shall preclude (to the extent lawful) all other rights and remedies
with respect to the replacement or payment of a mutilated, destroyed, lost or stolen Note.

 

Section 15.7         Persons
Deemed Owners. Each Loan Party, the Servicer, the Facility Agent, the Collateral Agent and any agent for any of the foregoing
may treat the holder of any Note as the owner of such Note for all purposes whatsoever, whether or not such Note may be overdue,
and none of the Loan Parties, the Servicer, the Facility Agent, the Collateral Agent and any such agent shall be affected by notice
to the contrary.

 

Section 15.8         Cancellation.
All Notes surrendered for payment or registration of transfer or exchange shall be promptly canceled. The Borrower shall promptly
cancel and deliver to the Loan Registrar any Notes previously authenticated and delivered hereunder which the Borrower may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Borrower. No Notes shall be authenticated
in lieu of or in exchange for any Notes canceled as provided in this Section 15.8, except as expressly permitted by
this Agreement.

 

Section 15.9         Participations;
Pledge. (a)  At any time and from time to time, each Lender may, in accordance with Applicable Law and, unless an
Event of Default has occurred and is continuing, with the prior written consent of the Borrower and Servicer (or Equityholder if
the Servicer is not an Affiliate thereof), grant participations in all or a portion of its Note and/or its interest in the Advances
and other payments due to it under this Agreement to any Person (other than prior to the occurrence and continuation of an Event
of Default a Disqualified Institution) (each, a “Participant”); provided, that no transfer or assignment
may be made to the Servicer, the Equityholder or an Affiliate thereof without the prior written consent of the Facility Agent.
Each Lender hereby acknowledges and agrees that (A) any such participation will not alter or affect such Lender’s direct
obligations hereunder, and (B) none of the Borrower, the Servicer, the Facility Agent, any Lender, the Collateral Agent nor
the Servicer shall have any obligation to have any communication or relationship with any Participant. The Borrower agrees that
each Participant shall be entitled to the benefits of Section 4.3 and Section 5.1 (subject to the requirements and
limitations therein, including the requirements under Section 4.3(f) (it being understood that the documentation required
under Section 4.3(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to this Article XV; provided that such Participant (A) agrees to be
subject to the provisions of Section 17.16 as if it were an assignee under this Article XV; and (B) shall not be
entitled to receive any greater payment under Section 4.3 or Section 5.1, with respect to any participation, than
its participating Lender would have been entitled to receive, except to the extent that such entitlement to receive a greater payment
results from a change in any Applicable Law that occurs after the Participant acquired the applicable participation. Each Lender
that sells a participation agrees to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section
17.16(b) with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 17.1 as though it were a Lender.

 

    	 	-148-	 

     

    

 

(b)       Notwithstanding
anything in Section 15.9(a) to the contrary, each Lender may pledge its interest in the Advances and the Notes to any
Federal Reserve Bank as collateral in accordance with Applicable Law without the prior written consent of any Person.

 

(c)       Each
Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which
it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s
interest in the obligations under the Transaction Documents (the “Participant Register”); provided that no Lender
shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any
Participant or any information relating to a Participant’s interest in any obligations under any Transaction Document) except
to the extent that such disclosure is necessary to establish that such obligation is in registered form under Section 5f.103-1(c)
of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and
such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all
purposes of this Agreement notwithstanding any notice to the contrary. The Facility Agent (in its capacity as Facility Agent) shall
have no responsibility for maintaining a Participant Register.

 

Section 15.10         Reallocation
of Advances. Any reallocation of Advances among Committed Lenders pursuant to an assignment executed by such Committed Lender
and its assignee(s) and delivered pursuant to Article XV or pursuant to a Joinder Agreement executed and delivered
pursuant to Article XV in each case shall be wired by the applicable purchasing Lender(s) to the Collateral Custodian
pursuant to the wiring instructions provided by the Collateral Custodian; provided that the Collateral Custodian shall not
fund such wire until it has received an executed assignment agreement or Joinder Agreement, as applicable.

 

Article
XVI

INDEMNIFICATION

 

Section 16.1         Borrower
Indemnity. Without limiting any other rights which any such Person may have hereunder or under Applicable Law, the Borrower
agrees to indemnify the Facility Agent, the Agents, the Lenders, the Servicer, the Loan Registrar, the Collateral Custodian and
the Collateral Agent and each of their Affiliates, and each of their respective successors, transferees, participants and assigns
and all officers, directors, shareholders, controlling persons, employees and agents of any of the foregoing (each of the foregoing
Persons being individually called an “Indemnified Party”), forthwith on demand, from and against any and all
damages (including punitive damages), losses, claims, liabilities and related reasonable and documented out-of-pocket costs and
expenses, including reasonable and documented attorneys’ and accountants’ fees and disbursements (all of the foregoing
being collectively called “Indemnified Amounts”) awarded against or incurred by any of them arising out of or
relating to any Transaction Document or the transactions contemplated hereby or thereby (including the structuring and arranging
of such transactions) or the use of proceeds therefrom by the Borrower, including in respect of the funding of any Advance or any
breach of any representation, warranty or covenant of the Borrower or the Servicer in any Transaction Document or in any certificate
or other written material delivered by any of them pursuant to any Transaction Document, excluding, however, Indemnified
Amounts payable to an Indemnified Party (a) to the extent determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from gross negligence, bad faith or willful misconduct on the part of any Indemnified Party and (b) other
than in the case of the Collateral Agent, the Collateral Custodian and the Securities Intermediary, resulting from the performance
of the Collateral Obligations.

 

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Indemnification under this Section 16.1
shall survive the termination of this Agreement and the resignation or removal of any Indemnified Party and shall include reasonable
and documented fees and out-of-pocket expenses of counsel and reasonable and documented out-of-pocket expenses of litigation. Notwithstanding
anything to the contrary contained herein, the Borrower will be obligated to pay any Indemnified Amount on any given day only to
the extent there are amounts available therefor pursuant to Section 8.3(a).

 

Section 16.2         Servicer
Indemnity. Without limiting any other rights which any such Person may have hereunder or under Applicable Law, the Servicer
agrees to indemnify the Indemnified Parties, from and against any and all Indemnified Amounts incurred by such Indemnified Party
by reason of (i) any act or omission constituting bad faith, fraud, willful misconduct, or gross negligence by the Servicer in
the performance of or reckless disregard of its duties hereunder or under any other Transaction Document or (ii) any breach by
the Servicer of any representation, warranty or covenant of the Servicer hereunder or under any other Transaction Document, excluding,
however, Indemnified Amounts payable to an Indemnified Party (a) to the extent determined by a court of competent jurisdiction
by a final and nonappealable judgment to have resulted from gross negligence, bad faith or willful misconduct on the part of any
Indemnified Party and (b) other than in the case of the Collateral Agent, the Collateral Custodian and the Securities Intermediary,
resulting from the performance of the Collateral Obligations.

 

Indemnification under
this Section 16.2 shall survive the termination of this Agreement and the resignation or removal of any Indemnified
Party and shall include reasonable and documented fees and out-of-pocket expenses of counsel and reasonable and documented out-of-pocket
expenses of litigation.

 

Any Indemnified Amounts
shall be paid by the Servicer to the Facility Agent, for the benefit of the applicable Indemnified Party, within fifteen (15) days
following receipt by the Servicer of the Facility Agent’s written demand therefor (and the Facility Agent shall pay such
amounts to the applicable Indemnified Party promptly after the receipt by the Facility Agent of such amounts).

 

Section 16.3         Contribution.
(a)  If for any reason (other than the exclusions set forth in the first paragraph of Section 16.1) the indemnification
provided above in Section 16.1 is unavailable to an Indemnified Party or is insufficient to hold an Indemnified Party
harmless, then the Borrower agrees to contribute to the amount paid or payable by such Indemnified Party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified
Party, on the one hand, and the Borrower and its Affiliates, on the other hand, but also the relative fault of such Indemnified
Party, on the one hand, and the Borrower and its Affiliates, on the other hand, as well as any other relevant equitable considerations.

 

    	 	-150-	 

     

    

 

(b)       If
for any reason (other than the exclusions set forth in the first paragraph of Section 16.2) the indemnification provided
above in Section 16.2 is unavailable to an Indemnified Party or is insufficient to hold an Indemnified Party harmless,
then the Servicer agrees to contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified
Party, on the one hand, and the Servicer and its Affiliates, on the other hand, but also the relative fault of such Indemnified
Party, on the one hand, and the Servicer and its Affiliates, on the other hand, as well as any other relevant equitable considerations.

 

Section 16.4         After-Tax
Basis. Indemnification under Section 16.1 and Section 16.2 shall be in an amount necessary to make
the Indemnified Party whole after taking into account any Tax consequences to the Indemnified Party of the receipt of the indemnity
provided hereunder (or of the incurrence of the underlying damage, cost or expense), including the effect of such Tax or refund
on the amount of Tax measured by net income or profits that is or was payable by the Indemnified Party (and the effect of any deduction
or loss realized by the Indemnified Party). Section 16.1 and Section 16.2 shall not apply with respect to Taxes other
than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

Article
XVII

MISCELLANEOUS

 

Section 17.1         No
Waiver; Remedies. No failure on the part of any Lender, the Facility Agent, the Collateral Agent, the Collateral Custodian,
any Indemnified Party or any Affected Person to exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise by any of them of any right, power or remedy hereunder preclude
any other or further exercise thereof, or the exercise of any other right, power or remedy. The remedies herein provided are cumulative
and not exclusive of any remedies provided by law. Without limiting the foregoing, each Lender is hereby authorized by the Borrower
during the existence of an Event of Default, to the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by it to or
for the credit or the account of the Borrower to the amounts owed by the Borrower under this Agreement, to the Facility Agent,
the Collateral Agent, the Collateral Custodian, any Affected Person, any Indemnified Party or any Lender or their respective successors
and assigns. Without limiting the foregoing, each Lender is hereby authorized by the Servicer during the existence of an Event
of Default, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing by it to or for the credit or the account of the
Servicer to the amounts owed by the Servicer under this Agreement, to the Facility Agent, the Collateral Agent, the Collateral
Custodian, any Affected Person, any Indemnified Party, any Agent or any Lender or their respective successors and assigns.

 

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Section 17.2         Amendments,
Waivers. This Agreement may not be amended, supplemented or modified nor may any provision hereof be waived except in accordance
with the provisions of this Section 17.2.

 

The Borrower, the Servicer
and the Facility Agent may, from time to time enter into written amendments, supplements, waivers or modifications hereto for the
purpose of adding any provisions to this Agreement or changing in any manner the rights of any party hereto or waiving, on such
terms and conditions as may be specified in such instrument, any of the requirements of this Agreement; provided, that no
such amendment, supplement, waiver or modification shall (i) reduce the amount of or extend the maturity of any payment with
respect to an Advance or reduce the rate or extend the time of payment of Yield thereon, or reduce or alter the timing of any other
amount payable to any Lender hereunder, in each case without the consent of each Lender affected thereby, (ii) amend, modify
or waive any provision of this Section 17.2 or Section 17.11, or reduce the percentage specified in the
definition of Required Lenders, in each case without the written consent of all Lenders, (iii) amend, modify or waive any provision
adversely affecting the obligations or duties of the Collateral Agent, in each case without the prior written consent of the Collateral
Agent and (iv) amend, modify or waive any provision adversely affecting the obligations or duties of the Collateral Custodian,
in each case without the prior written consent of the Collateral Custodian. Notwithstanding the foregoing, if the LIBOR Rate ceases
to exist or is reasonably expected to cease to exist within the succeeding three (3) months, the Borrower, the Servicer and the
Facility Agent may (and such parties will reasonably cooperate with each other in good faith in order to) amend this Agreement
to replace references herein to the LIBOR Rate (and any associated terms and provisions) with any alternative floating reference
rate (and any associated terms and provisions) that is then being generally used in U.S. credit markets for similar types of facilities.
Upon execution of any amendments by the Borrower, the Servicer and the Facility Agent as provided herein, the Servicer shall deliver
a copy of such amendment to the Collateral Agent. Any waiver of any provision of this Agreement shall be limited to the provisions
specifically set forth therein for the period of time set forth therein and shall not be construed to be a waiver of any other
provision of this Agreement.

 

Notwithstanding the
foregoing, upon the determination by any Lender that its ownership of any of its rights or obligations hereunder is prohibited
by Applicable Law (including, without limitation, the Volcker Rule), each of the Borrower, the Servicer, each Lender, each Agent,
the Collateral Agent, the Collateral Custodian and the Facility Agent hereby agree to work in good faith (at the expense of such
Lender) to amend or amend and restate the commercial terms of this Agreement (including, if necessary, to re-document under a note
purchase agreement or indenture) to ensure future compliance with such Applicable Law.

 

Section 17.3         Notices,
Etc. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing and shall
be personally delivered or sent by certified mail, electronic mail, postage prepaid, or by facsimile, to the intended party at
the address or facsimile number of such party set forth under its name on Annex A or at such other address or facsimile number
as shall be designated by such party in a written notice to the other parties hereto. All such notices and communications shall
be effective, (a) if personally delivered, when received, (b) if sent by certified mail, three Business Days after having
been deposited in the mail, postage prepaid, (c) if sent by overnight courier, one Business Day after having been given to such
courier, and (d) if transmitted by facsimile, when sent, receipt confirmed by telephone or electronic means, except that notices
and communications pursuant to Section 2.2, shall not be effective until received.

 

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Section 17.4         Costs
and Expenses. In addition to the rights of indemnification granted under Section 16.1, the Borrower agrees to pay
on demand all reasonable and documented out-of-pocket costs and expenses of the Facility Agent, the Collateral Agent, the Collateral
Custodian, the Agents and the Lenders in connection with the preparation, execution, delivery, syndication and administration of
this Agreement, any liquidity support facility and the other documents and agreements to be delivered hereunder or with respect
hereto, and, subject to any cap on such costs and expenses agreed upon in a separate letter agreement among the Borrower, the Servicer
and the Facility Agent or the Collateral Agent and Collateral Custodian Fee Letter, as applicable, and the Borrower further agrees
to pay all reasonable and documented out-of-pocket costs and expenses of the Facility Agent, the Collateral Agent, the Collateral
Custodian and the Lenders in connection with any amendments, waivers or consents executed in connection with this Agreement, including
the reasonable fees and reasonable and documented out-of-pocket expenses of counsel to the Facility Agent, each Agent and any related
Lender, the Collateral Agent and the Collateral Custodian with respect thereto and with respect to advising the Facility Agent
and the Lenders as to its rights and remedies under this Agreement, and to pay all reasonable, documented and out-of-pocket costs
and expenses, if any (including reasonable outside counsel fees and expenses), of the Facility Agent, the Collateral Agent, the
Collateral Custodian, the Agents and the Lenders, in connection with the enforcement against the Servicer or the Borrower of this
Agreement or any of the other Transaction Documents and the other documents and agreements to be delivered hereunder or with respect
hereto; provided that in the case of reimbursement of counsel for the Lenders other than the Facility Agent, such reimbursement
shall be limited to one outside counsel to the Facility Agent, each Agent and any related Lender in the aggregate.

 

Section 17.5         Binding
Effect; Survival. This Agreement shall be binding upon and inure to the benefit of Borrower, the Lenders, the Facility Agent,
the Servicer, the Collateral Agent, the Collateral Custodian and their respective successors and assigns, and the provisions of
Section 4.3, Article V, and Article XVI shall inure to the benefit of the Affected Persons and the
Indemnified Parties, respectively, and their respective successors and assigns; provided, nothing in the foregoing shall
be deemed to authorize any assignment not permitted by Article XV. This Agreement shall create and constitute the continuing
obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect until (subject to the
immediately following sentence) such time when all Obligations have been finally and fully paid in cash and performed; provided
that, the duties of the Servicer set forth in Article VII shall remain in effect until such time as the Servicer is no longer
the Servicer pursuant to the terms of Article VII. The rights and remedies with respect to any breach of any representation
and warranty made by the Borrower pursuant to Article IX and the indemnification and payment provisions of Article V
and Article XVI and the provisions of Section 17.10, Section 17.11 and Section 17.12
shall be continuing and shall survive any termination of this Agreement and any termination of any Person’s rights to act
as Servicer hereunder or under any other Transaction Document.

 

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Section 17.6         Captions
and Cross References. The various captions (including the table of contents) in this Agreement are provided solely for convenience
of reference and shall not affect the meaning or interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Schedule or Exhibit are to such Section of or Schedule or Exhibit to this Agreement,
as the case may be, and references in any Section, subsection, or clause to any subsection, clause or subclause are to such subsection,
clause or subclause of such Section, subsection or clause.

 

Section 17.7         Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

Section 17.8         GOVERNING
LAW. THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE
OF NEW YORK.

 

Section 17.9         Counterparts.
This Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original but
all of which shall constitute together but one and the same agreement. Delivery of this Agreement by facsimile or electronic mail
shall be equally as effective as delivery of an original executed counterpart of this Agreement.

 

Section 17.10         WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER TRANSACTION DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE
EQUITYHOLDER, EACH LOAN PARTY, THE SERVICER, THE FACILITY AGENT, THE AGENTS, THE INVESTORS OR ANY OTHER AFFECTED PERSON. EACH PARTY
HERETO ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION
OF EACH OTHER TRANSACTION DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR ITS ENTERING INTO
THIS AGREEMENT AND EACH SUCH OTHER TRANSACTION DOCUMENT.

 

Section 17.11         No
Proceedings.

 

(a)       Notwithstanding
any other provision of this Agreement, each of the Servicer, the Collateral Agent, the Collateral Custodian, each Agent, each Lender
and the Facility Agent hereby agrees that it will not institute against any Loan Party, or join any other Person in instituting
against any Loan Party, any insolvency proceeding (namely, any proceeding of the type referred to in the definition of Insolvency
Event) so long as any Advances or other amounts due from any Loan Party hereunder shall be outstanding or there shall not have
elapsed one year plus one day since the last day on which any such Advances or other amounts shall be outstanding. The foregoing
shall not limit such Person’s right to file any claim in or otherwise take any action with respect to any insolvency proceeding
that was instituted by any Person other than such Person.

 

    	 	-154-	 

     

    

 

(b)       Each
of the parties hereto hereby agrees that it will not institute against, or join any other Person in instituting against any Conduit
Lender, any insolvency proceeding (namely, any proceeding of the type referred to in the definition of Insolvency Event) so long
as any commercial paper note issued by such applicable Conduit Lender shall be outstanding or there shall not have elapsed one
year plus one day since the last day on which any such commercial paper notes shall be outstanding.

 

(c)       The
provisions of this Section 17.11 are a material inducement for the Secured Parties to enter into this Agreement and the
transactions contemplated hereby and are an essential term hereof. The parties hereby agree that monetary damages are not adequate
for a breach of the provisions of this Section 17.11 and the Facility Agent may seek and obtain specific performance of
such provisions (including injunctive relief), including, without limitation, in any bankruptcy, reorganization, arrangement, winding
up, insolvency, moratorium, winding up or liquidation proceedings, or other proceedings under United States federal or state bankruptcy
laws, or any similar laws. The provisions of this paragraph shall survive the termination of this Agreement.

 

Section 17.12         Limited
Recourse. No recourse under any obligation, covenant or agreement of a Lender contained in this Agreement shall be had against
any incorporator, stockholder, officer, director, member, manager, employee or agent of any Lender or Loan Party or any of their
respective Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding,
by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation
of each Lender and of each Loan Party, and that no personal liability whatever shall attach to or be incurred by any incorporator,
stockholder, officer, director, member, manager, employee or agent of any Lender or Loan Party or any of their respective Affiliates
(solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of a Lender
or a Loan Party contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by a Lender
of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every
such incorporator, stockholder, officer, director, member, manager, employee or agent is hereby expressly waived as a condition
of and in consideration for the execution of this Agreement.

 

Notwithstanding anything
to the contrary in this Agreement or in any of the Transaction Documents, the parties hereto acknowledge that the obligations of
any Conduit Lender arising hereunder are limited recourse obligations payable solely from the unsecured assets of such Conduit
Lender (the “Available Funds”) and, following the application of such Available Funds or the proceeds thereof,
any claims of the parties hereto (and the obligations of such Conduit Lender) shall be extinguished. No recourse shall be had for
the payment of any amount owing under this Agreement against any officer, member, director, employee, security holder or incorporator
of any Conduit Lender or its successors or assigns, and no action may be brought against any officer, member, director, employee,
security holder or incorporator of any Conduit Lender personally. The parties hereto agree that they will not petition a court,
or take any action or commence any proceedings, for the liquidation or the winding-up of, or the appointment of an examiner to,
any Conduit Lender or any other bankruptcy or insolvency proceedings with respect to such Conduit Lender; provided that
nothing in this sentence shall limit the right of any party hereto to file any claim or otherwise take any action with respect
to any proceeding of the type described in this sentence that was instituted against any Conduit Lender by any Person other than
such party. The provisions of this paragraph shall survive the termination of this Agreement.

 

    	 	-155-	 

     

    

 

Each Conduit Lender
shall only be required to pay (a) any fees or liabilities that it may incur under this Agreement only to the extent such Conduit
Lender has Excess Funds on the date of such determination and (b) any expenses, indemnities or other liabilities that it may incur
under this Agreement or any fees, expenses, indemnities or other liabilities under any other Transaction Document only to the extent
such Conduit Lender receives funds designated for such purposes or to the extent it has Excess Funds not required, after giving
effect to all amounts on deposit in its commercial paper account, to pay or provide for the payment of all of its outstanding commercial
paper notes as of the date of such determination. In addition, no amount owing by any Conduit Lender hereunder in excess of the
liabilities that such Conduit Lender is required to pay in accordance with the preceding sentence shall constitute a “claim”
(as defined in Section 101(5) of the Bankruptcy Code) against such Conduit Lender.

 

Section 17.13         ENTIRE
AGREEMENT. THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS EXECUTED AND DELIVERED HEREWITH REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

Section 17.14         Confidentiality.
(a)  Each Loan Party, the Servicer, the Collateral Custodian and the Collateral Agent shall hold in confidence, and not
disclose to any Person, the identity of any Lender or the terms of any fees payable in connection with this Agreement except they
may disclose such information (i) to their officers, directors, employees, agents, counsel, accountants, auditors, advisors,
prospective lenders, equity investors or representatives, (ii) with the consent of such Lender, (iii) to the extent such
information has become available to the public other than as a result of a disclosure by or through such Person, or (iv) to
the extent each Loan Party, the Servicer, the Collateral Custodian or the Collateral Agent or any Affiliate of any of them should
be required by any law or regulation applicable to it (including securities laws) or requested by any Official Body to disclose
such information.

 

    	 	-156-	 

     

    

 

(b)       The
Facility Agent, the Collateral Agent, the Collateral Custodian, each Agent and each Lender, severally and with respect to itself
only, covenants and agrees that any information about any Loan Party, the Servicer, the Equityholder or their respective Affiliates
or the Obligors, the Collateral Obligations, the Related Security or otherwise obtained by the Facility Agent, the Collateral Agent
or such Lender pursuant to this Agreement shall be held in confidence (it being understood that documents provided to the Facility
Agent hereunder may in all cases be distributed by the Facility Agent to the Lenders but may not be distributed to any prospective
Lender or participant without the prior written consent of the Borrower on behalf of itself of any Securitization Subsidiary) except
that the Facility Agent, the Collateral Agent, the Collateral Custodian or such Lender may disclose such information (i) to
its affiliates, officers, directors, employees, agents, counsel, accountants, auditors, advisors or representatives; provided
that each such Person shall, as a condition to any such disclosure, agree for the benefit of the Servicer, the Equityholder and
each Loan Party (A) to maintain the confidentiality of the Agreement (and the terms thereof) and all information with respect to
the other parties, including all information regarding the Loans, the Obligors and each Loan Party and the Servicer hereto and
their respective businesses obtained by it or them in connection with the structuring, negotiating and execution of the transactions
contemplated herein, and (B) that such information shall be used solely in connection with such Person’s evaluation of, or
relationship with, each Loan Party and its Affiliates, (ii) to the extent such information has become available to the public
other than as a result of a disclosure by or through the Facility Agent, the Collateral Agent, the Collateral Custodian or such
Lender, (iii) to the extent such information was available to the Facility Agent or such Lender on a non-confidential basis
prior to its disclosure to the Facility Agent or such Lender hereunder, (iv) with the consent of the Servicer, (v) to
the extent permitted by Article XV, or (vi) to the extent the Facility Agent or such Lender should be (A) required
in connection with any legal or regulatory proceeding or (B) requested by any Official Body to disclose such information;
provided, that in the case of clause (vi) above, the Facility Agent or such Lender, as applicable, will
use reasonable efforts to maintain confidentiality and will (unless otherwise prohibited by law) notify the Servicer of its intention
to make any such disclosure prior to making any such disclosure.

 

Section 17.15         Non-Confidentiality
of Tax Treatment. All parties hereto agree that each of them and each of their employees, representatives, and other agents
may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transaction and
all materials of any kind (including, without limitation, opinions or other tax analyses) that are provided to any of them relating
to such tax treatment and tax structure. “Tax treatment” and “tax structure” shall have the same meaning
as such terms have for purposes of Treasury Regulation Section 1.6011-4; provided that with respect to any document or similar
item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other
information, the provisions of this Section 17.15 shall only apply to such portions of the document or similar item that
relate to the tax treatment or tax structure of the transactions contemplated hereby.

 

Section 17.16         Replacement
of Lenders.

  

(a)       If
any Lender (i) requests compensation under Section 5.1, or (ii) requires the Borrower to pay any Indemnified Taxes or additional
amounts to any Lender or Official Body for the account of any Lender pursuant to Section 4.3, then such Lender shall (at
the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking the Obligations
or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 4.3 or Section
5.1, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred
by any Lender in connection with any such designation or assignment.

 

    	 	-157-	 

     

    

 

(b)       At
any time there is more than one Lender, the Borrower shall be permitted, at its sole expense and effort, to replace any Lender,
except (i) the Facility Agent or (ii) any Lender which is administered by the Facility Agent or an Affiliate of the Facility
Agent, that (a) requests reimbursement, payment or compensation for any amounts owing pursuant to Section 4.3 or Section
5.1 or (b) has received a written notice from the Borrower of an impending change in law that would entitle such Lender
to payment of additional amounts pursuant to Section 4.3 or Section 5.1, unless such Lender designates a different
lending office before such change in law becomes effective pursuant to Section 17.16(a) and such alternate lending office
obviates the need for the Borrower to make payments of additional amounts pursuant to Section 4.3 or Section 5.1
or (c) has not consented to any proposed amendment, supplement, modification, consent or waiver, each pursuant to Section 17.2
or (d) becomes a Defaulting Lender or (e) does not consent to any amendment or modification (including in the form of a consent
or waiver) described in Section 17.2 which is approved by the Borrower, the Facility Agent and the Required Lenders or (f)
does not consent to a request to extend the date set forth in the definition of “Facility Termination Date”; provided,
that (i) nothing herein shall relieve a Lender from any liability it might have to the Borrower or to the other Lenders for
its failure to make any Advance, (ii) the replacement financial institution shall purchase, at par, all Advances and other
amounts owing to such replaced Lender on or prior to the date of replacement, (iii) during the Revolving Period, the replacement
financial institution, if not already a Lender, shall be reasonably satisfactory to the Facility Agent, (iv) the replaced
Lender shall be obligated to make such replacement in accordance with the provisions of Section 15.4(a), (v) until
such time as such replacement shall be consummated, the Borrower shall pay all additional amounts (if any) for Increased Costs
or Indemnified Taxes, as the case may be, (vi) any such replacement shall not be deemed to be a waiver of any rights that
the Borrower, the Facility Agent or any other Lender shall have against the replaced Lender, and (vii) if such replacement
is being effected as a result of a Lender requesting compensation pursuant to Section 4.3 or Section 5.1, such replacement,
if effected, will result in a reduction in such compensation or payment thereafter. Notwithstanding anything contained to the contrary
in this Agreement, no Lender removed or replaced under the provisions hereof shall have any right to receive any amounts set forth
in Section 2.5(b) in connection with such removal or replacement. A Lender shall not be required to make any such assignment
or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower
to require such assignment and delegation cease to apply.

 

Section 17.17         Consent
to Jurisdiction. Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal
court sitting in New York City in any action or proceeding arising out of or relating to the Transaction Documents, and each party
hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New
York State court or, to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the
fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding.
The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

 

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Section 17.18         Option
to Acquire Rating. Each party hereto hereby acknowledges and agrees that the Facility Agent (on behalf and at the expense of
the requesting Lender) may, at any time, in its sole discretion and at its own cost, obtain a private rating for this loan facility.
The Borrower and the Servicer hereby agree to use commercially reasonable efforts, at the request of the Facility Agent, to cooperate
with the acquisition and maintenance of any such rating so long as such acquisition and maintenance of any such rating does not
impose any additional covenants or requirements on the Borrower that make this facility more restrictive.

 

Section 17.19         Acknowledgement
and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Transaction Document
or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability
of any EEA Financial Institution arising under any Transaction Document, to the extent such liability is unsecured, may be subject
to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees
to be bound by:

 

(a)       the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which
may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)       the
effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)        a
reduction in full or in part or cancellation of any such liability;

 

(ii)       a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or
other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Transaction Document; or

 

(iii)       the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.

 

Article
XVIII

COLLATERAL CUSTODIAN

 

Section 18.1         Designation
of Collateral Custodian. The role of Collateral Custodian with respect to the Collateral Obligation Files shall be conducted
by the Person designated as Collateral Custodian hereunder from time to time in accordance with this Section 18.1.
Deutsche Bank Trust Company Americas is hereby appointed as, and hereby accepts such appointment and agrees to perform the duties
and obligations of, Collateral Custodian pursuant to the terms hereof.

 

    	 	-159-	 

     

    

 

Section 18.2         Duties
of the Collateral Custodian.

 

(a)       Duties.
The Collateral Custodian shall perform, on behalf of the Secured Parties, the following duties and obligations:

 

(i)       The
Collateral Custodian, as the duly appointed agent of the Secured Parties, shall take and retain custody of the Collateral Obligation
Files delivered to it by, or on behalf of, each Loan Party for each Collateral Obligation listed on the Schedule of Collateral
Obligations attached to the related Asset Approval Request. The Collateral Custodian acknowledges that in connection with any Asset
Approval Request, additional Collateral Obligation Files (specified on an accompanying Schedule of Collateral Obligations supplement)
may be delivered to the Collateral Custodian from time to time. Promptly upon the receipt of any such delivery of Collateral Obligation
Files and without any review, the Collateral Custodian shall send notice of such receipt to the Servicer, each Loan Party and the
Facility Agent.

 

(ii)       With
respect to each Collateral Obligation File which has been or will be delivered to the Collateral Custodian, the Collateral Custodian
shall act exclusively as the custodian of the Secured Parties, and has no instructions to hold any Collateral Obligation File for
the benefit of any Person other than the Secured Parties and undertakes to perform such duties and only such duties as are specifically
set forth in this Agreement. In so taking and retaining custody of the Collateral Obligation Files, the Collateral Custodian shall
be deemed to be acting for the purpose of perfecting the Collateral Agent’s security interest therein under the UCC. Except
as permitted by Section 18.5, no Collateral Obligation File or other document constituting a part of a Collateral Obligation
File shall be released from the possession of the Collateral Custodian.

 

(iii)       The
Collateral Custodian shall maintain continuous custody of all Collateral Obligation Files in its possession in secure facilities
in accordance with customary standards for such custody and shall reflect in its records the interest of the Secured Parties therein.
Each Collateral Obligation File which comes into the possession of the Collateral Agent (other than documents delivered electronically)
shall be maintained in fire-resistant vaults or cabinets at the office of the Collateral Custodian specified in Annex A, at the
office located at c/o DB Services Americas, Inc., 5022 Gate Parkway, Suite 200, Jacksonville, Florida 32256 or at such other offices
as shall be specified to the Facility Agent and the Servicer in a written notice at least thirty (30) days prior to such change.
Each Collateral Obligation File delivered to it shall be marked with an appropriate identifying label and maintained in such manner
so as to permit retrieval and access by the Collateral Custodian and the Facility Agent. The Collateral Custodian shall keep the
Collateral Obligation Files clearly segregated from any other documents or instruments in its files.

 

(iv)       With
respect to the documents comprising each Collateral Obligation File, the Collateral Custodian shall (i) act exclusively as
Collateral Custodian for the Secured Parties, (ii) hold all documents constituting such Collateral Obligation File received
by it for the exclusive use and benefit of the Secured Parties and (iii) make disposition thereof only in accordance with
the terms of this Agreement or with written instructions furnished by the Facility Agent; provided, that in the event of a conflict
between the terms of this Agreement and the written instructions of the Facility Agent, the Facility Agent’s written instructions
shall control.

 

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(v)       The
Collateral Custodian shall accept only written instructions of a Responsible Officer, in the case of the Borrower or the Servicer,
or a Responsible Officer, in the case of the Facility Agent, concerning the use, handling and disposition of the Collateral Obligation
Files.

 

(vi)       In
the event that (i) any Loan Party, the Facility Agent, the Servicer, the Collateral Custodian or the Collateral Agent shall
be served by a third party with any type of levy, attachment, writ or court order with respect to any Collateral Obligation File
or a document included within a Collateral Obligation File or (ii) a third party shall institute any court proceeding by which
any Collateral Obligation File or a document included within a Collateral Obligation File shall be required to be delivered other
than in accordance with the provisions of this Agreement, the party receiving such service shall promptly deliver or cause to be
delivered to the other parties to this Agreement (to the extent not prohibited by Applicable Law) copies of all court papers, orders,
documents and other materials concerning such proceedings. The Collateral Custodian shall, to the extent permitted by law, continue
to hold and maintain all the Collateral Obligation Files that are the subject of such proceedings pending a final, nonappealable
order of a court of competent jurisdiction permitting or directing disposition thereof. Upon final determination of such court,
the Collateral Custodian shall dispose of such Collateral Obligation File in its possession or a document included within such
Collateral Obligation File as directed in writing by the Facility Agent, which shall give a direction consistent with such determination.
Expenses of the Collateral Custodian incurred as a result of such proceedings shall be borne by the Borrower.

 

(vii)       The
Facility Agent may direct the Collateral Custodian to take any such incidental action hereunder. With respect to other actions
which are incidental to the actions specifically delegated to the Collateral Custodian hereunder, the Collateral Custodian shall
not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall
be fully protected in acting or refraining from acting) upon the direction of the Facility Agent; provided that the Collateral
Custodian shall not be required to take any action hereunder at the request of the Facility Agent, any Secured Parties or otherwise
if the taking of such action, in the reasonable determination of the Collateral Custodian, (x) shall be in violation of any
Applicable Law or contrary to any provisions of this Agreement or (y) shall expose the Collateral Custodian to liability hereunder
or otherwise (unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto). In the event
the Collateral Custodian requests the consent of the Facility Agent and the Collateral Custodian does not receive a consent (either
positive or negative) from the Facility Agent within ten (10) Business Days of its receipt of such request, then the Facility Agent
shall be deemed to have declined to consent to the relevant action.

 

(viii)       The
Collateral Custodian shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction
of any Secured Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Custodian,
or the Facility Agent. The Collateral Custodian shall not be deemed to have notice or knowledge of any matter hereunder, including
an Event of Default, an Unmatured Event of Default, Servicer Default or Unmatured Servicer Default, unless a Responsible Officer
of the Collateral Custodian has actual knowledge of such matter or written notice thereof is received by the Collateral Custodian.

 

    	 	-161-	 

     

    

 

Section 18.3         Delivery
of Collateral Obligation Files. (a)  The Servicer (on behalf of each Loan Party) shall deliver to the Collateral
Custodian, on or prior to the applicable Funding Date (but no more than five (5) Business Days after such Funding Date, except
as set forth in Section 10.20) the Collateral Obligation Files for each Collateral Obligation listed on the Schedule of
Collateral Obligations attached to the related Asset Approval Request. In connection with each delivery of a Collateral Obligation
File to the Collateral Custodian, the Servicer shall represent and warrant that the Collateral Obligation Files delivered to the
Collateral Custodian include all of the documents listed in the related Document Checklist and all of such documents and the information
contained in the Schedule of Collateral Obligations are complete and correct in all material respects pursuant to a certification
substantially in the form of Exhibit H executed by a Responsible Officer of the Servicer; provided that, notwithstanding
the foregoing, the Borrower shall cause the documentation required by this clause (a) to be in the possession of the Collateral
Custodian not later than (A) five (5) Business Days if the Servicer or its Affiliate is the agent with respect to such Loan and
(B) otherwise, fifteen (15) days, in each case after the related Cut-Off Date as to any Loans.

 

(b)       From
time to time, the Servicer, promptly following receipt, shall forward to the Collateral Custodian (as identified on an accompanying
Schedule of Collateral Obligations supplement) additional documents evidencing any assumption, modification, consolidation or extension
of a Collateral Obligation, and upon receipt of any such other documents, the Collateral Custodian shall hold such other documents
as the Servicer shall deliver in writing from time to time.

 

(c)       With
respect to any documents comprising the Collateral Obligation File that have been delivered or are being delivered to recording
offices for recording and have not been returned to the applicable Loan Party or the Servicer in time to permit their delivery
hereunder at the time required, in lieu of delivering such original documents, the applicable Loan Party (on in the case of a Securitization
Subsidiaries, the Borrower on behalf of such Securitization Subsidiary) or the Servicer shall indicate such on a Schedule of Collateral
Obligations supplement and deliver to the Collateral Custodian a true copy thereof. The Loan Parties or the Servicer shall deliver
such original documents to the Collateral Custodian promptly when they are received.

 

Section 18.4         Collateral
Obligation File Certification. (a)  On or prior to each Funding Date, the Servicer shall provide a Schedule of Collateral
Obligations and related Document Checklist dated as of such Funding Date to the Collateral Custodian, the Collateral Agent and
the Facility Agent (such information contained in the Schedule of Collateral Obligations shall also be delivered in Microsoft Excel
format or another format reasonably acceptable to the Collateral Custodian) with respect to the Collateral Obligations to be delivered
to the Collateral Agent on such Funding Date.

 

    	 	-162-	 

     

    

 

(b)       In
connection with (and as part of) each Monthly Report, with respect to the Collateral Obligation Files delivered at least three
(3) Business Days’ prior to the related Reporting Date, the Collateral Custodian shall prepare a report (to be included as
a part of each Monthly Report) in respect of each of the Collateral Obligations, to the effect that, as to each Collateral Obligation
listed on the Schedule of Collateral Obligations attached to the related Advance Request or Reinvestment Request, based on the
Collateral Custodian’s review of the Collateral Obligation File for each Collateral Obligation and the related Document Checklist,
except for variances from the documents identified in the Document Checklist with respect to the related Collateral Obligation
Files, (i) all documents required to be delivered in respect of such Collateral Obligations pursuant to the Document Checklist
have been delivered and are in the possession of the Collateral Custodian as part of the Collateral Obligation File for such Collateral
Obligation (other than those released pursuant to Section 18.5), and (ii) all such documents have been reviewed
by the Collateral Custodian and appear on their face to be regular and to relate to such Collateral Obligation. The Collateral
Custodian shall also maintain records of the total number of Collateral Obligation Files that do not have the documents provided
on the Document Checklist and will include such total in each Monthly Report.

 

(c)       Notwithstanding
any language to the contrary herein, the Collateral Custodian shall make no representations as to, and shall not be responsible
to verify, (i) the validity, legality, ownership, title, perfection, priority, enforceability, due authorization, recordability,
sufficiency for any purpose, or genuineness of any of the documents contained in each Collateral Obligation File or (ii) the
collectibility, insurability, effectiveness or suitability of any such Collateral Obligation. The parties to this Agreement hereby
agree that the sole purpose of the Collateral Custodian’s review of Collateral Obligation Files for a Collateral Obligation
pursuant to this Section 18.4 is to confirm receipt of certain Collateral Obligation Files by confirming certain information
contained in the Collateral Obligation Files as set forth herein. The Collateral Custodian’s review of the Collateral Obligation
Files and its delivery of any information in the Monthly Report with respect thereto shall not be deemed to constitute “due
diligence services” or a “third party due diligence report” as such terms are defined in Rules 17g-10 and 15Ga-2,
respectively, as promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.
Any recipient of the Monthly Report or a copy thereof by its receipt thereof is deemed to agree, and each party to this Agreement
hereby agrees, that it shall not share such report, directly or indirectly, with any rating agency.

 

Section 18.5         Release
of Collateral Obligation Files. (a)  Upon satisfaction of any of the conditions set forth in Section 12.4,
the Servicer will provide an Officer’s Certificate to such effect to the Collateral Custodian (with a copy to the Collateral
Agent), on which the Collateral Custodian may conclusively rely, and shall request in writing delivery to it of the Collateral
Obligation File and a copy thereof shall be sent concurrently by the Servicer to the Facility Agent. Upon receipt of such certification
and request, unless it receives written notice to the contrary from the Facility Agent prior to the Collateral Custodian’s
release of such Collateral Obligations Files, the Collateral Custodian shall within three days release the related Collateral Obligation
File to the Servicer and the Servicer will not be required to return the related Collateral Obligation File to the Collateral Custodian.

 

    	 	-163-	 

     

    

 

(b)       From
time to time and as appropriate for the servicing or foreclosure of any of the Collateral Obligations, including, for this purpose,
collection under any insurance policy relating to the Collateral Obligations, the Collateral Custodian shall, upon receipt of a
Request for Release and Receipt substantially in the form of Exhibit F-2 from an authorized representative of the Servicer
(as listed on Exhibit F-1, as such exhibit may be amended from time to time by the Servicer with notice to the Collateral
Custodian and the Facility Agent), release the related Collateral Obligation File or the documents set forth in such Request for
Release and Receipt to the Servicer. In the event an Unmatured Event of Default, an Event of Default, an Unmatured Servicer Default
or a Servicer Default has occurred and is continuing, the Servicer shall not make any such request with respect to any original
documents unless the Facility Agent shall have consented in writing thereto (which consent may be evidenced by an executed counterpart
to such request). The Servicer shall return each and every original document previously requested from the Collateral Obligation
File to the Collateral Custodian when (x) the need therefor by the Servicer no longer exists or (y) the Collateral Obligation
File or such document has been delivered to an attorney, or to a public trustee or other public official as required by law, for
purposes of initiating or pursuing legal action or other proceedings for the foreclosure of the Related Security either judicially
or non-judicially, the Servicer shall deliver to the Collateral Custodian a certificate executed by a Responsible Officer certifying
as to the name and address of the Person to which such Collateral Obligation File or such document was delivered and the purpose
or purposes of such delivery. Upon receipt of a certificate of the Servicer substantially in the form of Exhibit F-3, with
a copy to the Facility Agent, stating that such Collateral Obligation was either (x) liquidated and that all amounts received or
to be received in connection with such liquidation that are required to be deposited have been so deposited, or (y) sold pursuant
to an Optional Sale in accordance with Section 9.34, the Collateral Custodian shall within three (3) Business Days of (or
such longer period as reasonably requested by the Collateral Custodian given the number of Collateral Obligation Files to be released)
receipt of the Request for Release and Receipt, release the requested Collateral Obligation File, and the Servicer will not be
required to return the related Collateral Obligation File to the Collateral Custodian.

 

(c)       Notwithstanding
anything to the contrary set forth herein, the Servicer shall not, without the prior written consent of the Facility Agent, request
any documents (other than copies thereof) held by the Collateral Custodian if the sum of the unpaid Principal Balances of all Collateral
Obligations for which the Servicer is then in possession of the related Collateral Obligation File or any document comprising such
Collateral Obligation File (other than for Collateral Obligations then held by the Servicer which have been sold, repurchased,
paid off or liquidated in accordance with this Agreement) (including the documents to be requested) exceeds 5% of the Adjusted
Aggregate Eligible Collateral Obligation Balance. The Servicer may hold, and hereby acknowledges that it shall hold, any documents
and all other property included in the Collateral that it may from time to time receive hereunder as custodian for the Secured
Parties solely at the will of the Collateral Custodian and the Secured Parties for the sole purpose of facilitating the servicing
of the Collateral Obligations and such retention and possession shall be in a custodial capacity only. To the extent the Servicer,
as agent of the Collateral Custodian and the Loan Parties, holds any Collateral, the Servicer shall do so in accordance with the
Servicing Standard as such standard applies to servicers acting as custodial agent. Each party hereto agrees that the Collateral
Custodian shall have no liability for any duties requiring the possession of all such Collateral held by the Servicer in accordance
with this section. The Servicer shall promptly report to the Collateral Custodian and the Facility Agent the loss by it of all
or part of any Collateral Obligation File previously provided to it by the Collateral Custodian and shall promptly take appropriate
action to remedy any such loss. The Servicer shall hold (in accordance with Section 9-313(C) of the UCC) all documents comprising
the Collateral Obligation Files in its possession as agent of the Collateral Agent and the Collateral Custodian. In such custodial
capacity, the Servicer shall have and perform the following powers and duties:

 

    	 	-164-	 

     

    

 

(i)       hold
the Collateral Obligation Files and any document comprising a Collateral Obligation File that it may from time to time have in
its possession for the benefit of the Collateral Custodian, on behalf of the Secured Parties, maintain accurate records pertaining
to each Collateral Obligation to enable it to comply with the terms and conditions of this Agreement, and maintain a current inventory
thereof;

 

(ii)       implement
policies and procedures consistent with the Servicing Standard and requirements of this Agreement so that the integrity and physical
possession of such Collateral Obligation Files will be maintained; and

 

(iii)       take
all other actions, in accordance with the Servicing Standard, in connection with maintaining custody of such Collateral Obligation
Files on behalf of the Collateral Agent and the Collateral Custodian.

 

Acting as custodian of the Collateral Obligation
Files pursuant to this Section 18.5, the Servicer agrees that it does not and will not have or assert any beneficial
ownership interest in the Collateral Obligations or the Collateral Obligation Files.

 

Section 18.6         Examination
of Collateral Obligation Files. Upon reasonable prior notice to the Collateral Custodian, the Loan Parties, the Servicer and
their agents, accountants, attorneys and auditors (at the Borrower’s expense) will be permitted during normal business hours
to examine and make copies of the Collateral Obligation Files, documents, records and other papers in the possession of or under
the control of the Collateral Custodian relating to any or all of the Collateral Obligations. Prior to the occurrence of an Unmatured
Event of Default, an Event of Default, an Unmatured Servicer Default or a Servicer Default, upon the request of the Facility Agent
and at the cost and expense of the Servicer, the Collateral Custodian shall promptly provide the Facility Agent with the Collateral
Obligation Files or copies, as designated by the Facility Agent, subject to the cap on costs and expenses and other terms and conditions
set forth in Section 7.9(d); provided, the Collateral Custodian shall not be required to provide such copies if it
does not receive adequate assurance of payment.

 

Section 18.7         Lost
Note Affidavit. In the event that the Collateral Custodian fails to produce any original promissory note delivered to it related
to a Collateral Obligation that was in its possession pursuant to Section 10.20 within five (5) Business Days after required
or requested by the Facility Agent and provided that (a) the Collateral Custodian previously certified in writing to
the Facility Agent that it had received such original promissory note and (b) such original promissory note is not outstanding
pursuant to a Request for Release and Receipt, then the Collateral Custodian shall with respect to any missing original promissory
note, promptly deliver to the Facility Agent upon request a lost note affidavit.

 

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Section 18.8         Transmission
of Collateral Obligation Files. Written instructions as to the method of shipment and shipper(s) the Collateral Custodian is
directed to utilize in connection with the transmission of Collateral Obligation Files in the performance of the Collateral Custodian’s
duties hereunder shall be delivered by the Facility Agent or the Servicer to the Collateral Custodian prior to any shipment of
any Collateral Obligation Files hereunder. In the event the Collateral Custodian does not receive such written instruction from
the Facility Agent or the Servicer (as applicable), the Collateral Custodian shall be authorized and indemnified as provided herein
to utilize a nationally recognized courier service. The Servicer shall arrange for the provision of such services at its sole cost
and expense (or, at the Collateral Custodian’s option, reimburse the Collateral Custodian for all costs and expenses incurred
by the Collateral Custodian consistent with such instructions) and shall maintain such insurance against loss or damage to the
Collateral Obligation Files as the Servicer deems appropriate.

 

Section 18.9         Merger
or Consolidation. Any Person (i) into which the Collateral Custodian may be merged or consolidated, (ii) that may
result from any merger or consolidation to which the Collateral Custodian shall be a party, or (iii) that may succeed to the
properties and assets of the Collateral Custodian substantially as a whole, which Person in any of the foregoing cases executes
an agreement of assumption to perform every obligation of the Collateral Custodian hereunder, shall be the successor to the Collateral
Custodian under this Agreement without further act of any of the parties to this Agreement.

 

Section 18.10         Collateral
Custodian Compensation. As compensation for its Collateral Custodian activities hereunder, the Collateral Custodian shall be
entitled to its fees and expenses from the Borrower as set forth in the Collateral Agent and Collateral Custodian Fee Letter and
any other accrued and unpaid fees, expenses (including reasonable attorneys’ fees, costs and expenses) and indemnity amounts
payable by the Borrower, any Securitization Subsidiary or the Servicer, or both but without duplication, to the Collateral Custodian
(including Indemnified Amounts under Article XVI) under the Transaction Documents (collectively, the “Collateral
Custodian Fees and Expenses”). The Borrower agrees to reimburse the Collateral Custodian in accordance with the provisions
of Section 8.3(a) for all reasonable expenses, disbursements and advances incurred or made by the Collateral Custodian in
accordance with any provision of this Agreement or the other Transaction Documents or in the enforcement of any provision hereof
or in the other Transaction Documents. The Collateral Custodian’s entitlement to receive fees (other than any previously
accrued and unpaid fees) shall cease on the earlier to occur of: (i) its removal as Collateral Custodian and appointment and acceptance
by the successor Collateral Custodian pursuant to Section 18.11 and the Collateral Custodian has ceased to hold any Collateral
Obligation Files or (ii) the termination of this Agreement.

 

Section 18.11         Removal
or Resignation of Collateral Custodian. (a)  The Collateral Custodian may at any time resign and terminate its obligations
under this Agreement upon at least 60 days’ prior written notice to the Servicer, the Borrower and the Facility Agent; provided,
that no resignation or removal of the Collateral Custodian will be permitted unless a successor Collateral Custodian has been appointed
which successor Collateral Custodian, so long as no Unmatured Servicer Default, Servicer Default, Unmatured Event of Default or
Event of Default has occurred and is continuing, is reasonably acceptable to the Servicer. Promptly after receipt of notice of
the Collateral Custodian’s resignation, the Facility Agent shall promptly appoint a successor Collateral Custodian by written
instrument, in duplicate, copies of which instrument shall be delivered to the Borrower, the Servicer, the resigning Collateral
Custodian and to the successor Collateral Custodian. In the event no successor Collateral Custodian shall have been appointed within
60 days after the giving of notice of such resignation, the Collateral Custodian may petition any court of competent jurisdiction
to appoint a successor Collateral Custodian.

 

    	 	-166-	 

     

    

 

(b)       The
Facility Agent upon at least 60 days’ prior written notice to the Collateral Custodian, may remove and discharge the Collateral
Custodian or any successor Collateral Custodian thereafter appointed from the performance of its duties under this Agreement for
cause. Promptly after giving notice of removal of the Collateral Custodian, the Facility Agent shall appoint, or petition a court
of competent jurisdiction to appoint, a successor Collateral Custodian. Any such appointment shall be accomplished by written instrument
and one original counterpart of such instrument of appointment shall be delivered to the Collateral Custodian and the successor
Collateral Custodian, with a copy delivered to the Borrower and the Servicer. In the event no successor Collateral Custodian shall
have been appointed within 60 days after the giving of notice of such removal, the Collateral Custodian may petition any court
of competent jurisdiction to appoint a successor Collateral Custodian.

 

(c)       In
the event of any such resignation or removal, the Collateral Custodian shall, no later than five (5) Business Days after receipt
of notice of the successor Collateral Custodian, transfer to the successor Collateral Custodian, as directed in writing by the
Facility Agent, all the Collateral Obligation Files being administered under this Agreement. The cost of the shipment of Collateral
Obligation Files arising out of the resignation of the Collateral Custodian pursuant to Section 18.11(a), or the termination
for cause of the Collateral Custodian pursuant to Section 18.11(b), shall be at the expense of the Collateral Custodian.
Any cost of shipment arising out of the removal or discharge of the Collateral Custodian without cause pursuant to Section 18.11(b)
shall be at the expense of the Borrower.

 

Section 18.12         Limitations
on Liability. (a)  The Collateral Custodian may conclusively rely on and shall be fully protected in acting upon
any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably
believes to be genuine and that has been signed by the proper party or parties. The Collateral Custodian may rely conclusively
on and shall be fully protected in acting upon (a) the written instructions of any designated officer of the Facility Agent
or (b) the verbal instructions of the Facility Agent.

 

(b)       The
Collateral Custodian may consult counsel satisfactory to it and the advice or opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

 

(c)       The
Collateral Custodian shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good
faith, or for any mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except in
the case of its willful misconduct or grossly negligent performance or omission of its duties and in the case of the grossly negligent
performance of its duties in taking and retaining custody of the Collateral Obligation Files.

 

    	 	-167-	 

     

    

 

(d)       The
Collateral Custodian makes no warranty or representation and shall have no responsibility (except as expressly set forth in this
Agreement) as to the content, enforceability, completeness, validity, sufficiency, value, due authorization, genuineness, perfections,
priority, ownership, title, recordability or transferability of the Collateral, and will not be required to and will not make any
representations as to the validity or value of any of the Collateral. The Collateral Custodian shall not be obligated to take any
action hereunder that might in its judgment involve any expense or liability unless it has been furnished with an indemnity reasonably
satisfactory to it. The Collateral Custodian shall have no responsibility or duty with respect to any Collateral Obligation File
while not in its possession, including at any time such Collateral Obligation File has been released pursuant to a Request for
Release and Receipt, or is otherwise in transit, with a courier, to or from the Collateral Custodian, including, without limitation,
in connection with the transmission of Collateral Obligation Files pursuant to Section 18.8, or prior to the delivery of
a Collateral Obligation File to the Collateral Custodian pursuant to Section 18.3; provided that the Collateral Custodian
shall act in good faith with respect to ensuring it receives any Collateral Obligation Files that are in transit and for which
the Collateral Custodian has received tracking information.

 

(e)       The
Collateral Custodian shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth
in this Agreement and any other Transaction Documents to which it is a party and no covenants or obligations shall be read into
or implied in this Agreement against the Collateral Custodian. In the event of any conflict arising between the provisions of this
Agreement and any other Transaction Document to which the Collateral Custodian is a party with respect to the duties or responsibilities
of the Collateral Custodian, the provisions of this Agreement shall prevail. No provision of this Agreement or any other Transaction
Document shall be deemed to impose any duty or obligation on the Collateral Custodian to perform any act or acts, receive or obtain
any interest in property or exercise any interest in property, or exercise any right, power, duty or obligation conferred or imposed
on it in any jurisdiction in which it shall be illegal, or in which the Collateral Custodian shall be unqualified or incompetent
due to a change in Applicable Law, to perform any such act or acts, to receive or obtain any such interest in property or to exercise
any such right, power, duty or obligation, or as a result of which the Collateral Custodian shall become subject to taxation.

 

(f)       None
of the provisions of this Agreement shall require the Collateral Custodian to expend or risk its own funds or incur any liability,
financial or otherwise, in the performance of its duties hereunder, or in the exercise of any of its rights or powers if it shall
have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability
is not assured to it. In no event shall the Collateral Custodian be liable for any failure or delay in the performance of its obligations
hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared
or undeclared), terrorism, fire, riot, embargo, government action (including any laws, ordinances, regulations) or the like that
delay, restrict or prohibit the providing of services by the Collateral Custodian as contemplated by this Agreement.

 

(g)       It
is expressly agreed and acknowledged by each party hereto that the Collateral Custodian is not guaranteeing performance of or assuming
any liability for the obligations of the other parties hereto or any parties to the Collateral.

 

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(h)       In
case any reasonable question arises as to its duties hereunder, the Collateral Custodian may, prior to the occurrence of an Event
of Default or the Facility Termination Date, request instructions from the Servicer and may, after the occurrence of an Event of
Default or the Facility Termination Date, request instructions from the Facility Agent, and shall be entitled at all times to refrain
from taking any action unless it has received instructions from the Servicer or the Facility Agent, as applicable. The Collateral
Custodian shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction
of the Facility Agent. In no event shall the Collateral Custodian be liable for special, indirect, punitive or consequential loss
or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Custodian has been advised
of the likelihood of such loss or damage and regardless of the form of action.

 

(i)       Each
of the protections, benefits, reliances, indemnities and immunities offered to the Collateral Agent in Section 11.3, Section
11.7, Section 11.8, Section 11.11 and Section 11.12 shall be afforded to, are extended to, and shall be enforceable
by, the Collateral Custodian.

 

Section 18.13         Collateral
Custodian as Agent of Collateral Agent. The Collateral Custodian agrees that, with respect to any Collateral Obligation File
at any time or times in its possession or held in its name, the Collateral Custodian shall be the agent and custodian of the Collateral
Agent, for the benefit of the Secured Parties, for purposes of perfecting (to the extent not otherwise perfected) the Collateral
Agent’s security interest in the Collateral and for the purpose of ensuring that such security interest is entitled to first
priority status under the UCC. For so long as the Collateral Custodian is the same entity as the Collateral Agent, the Collateral
Custodian shall be entitled to the same rights and protections afforded to the Collateral Agent hereunder.

 

Section 18.14         Electronic
Methods. The Collateral Custodian shall be entitled to treat a facsimile, pdf or e-mail communication or communication by other
similar electronic means in a form reasonably satisfactory to the Collateral Agent (“Electronic Methods”) from a person
purporting to be (and whom the Collateral Custodian, acting reasonably, believes in good faith to be) the authorized representative
of the Facility Agent, the Servicer or the Loan Parties, as sufficient instructions and authority of the Facility Agent, the Servicer
or the Loan Parties for the Collateral Custodian to act and shall have no duty to verify or confirm that such person is so authorized.
The Collateral Custodian shall have no liability for any losses, liabilities, costs or expenses incurred by it as a result of such
reliance upon or compliance with such instructions or directions. Each of the Facility Agent, the Servicer and the Loan Parties
agree:

 

(a)       to
assume all risks arising out of the use of such Electronic Methods to submit instructions and directions to the Collateral Custodian,
including without limitation the risk of the Collateral Custodian acting on unauthorized instructions (which the Collateral Custodian
reasonably believed in good faith to be authorized instructions from the proper party), and the risk of interception and misuse
by third parties;

 

(b)       that
it is fully informed of the protections and risks associated with the various methods of transmitting instructions to the Collateral
Custodian and that there may be more secure methods of transmitting instructions than the method(s) selected by the Facility Agent,
the Servicer or the Loan Parties; and

 

(c)       that
the security procedures (if any) to be followed in connection with its transmission of instructions provide to it a commercially
reasonable degree of protection in light of its particular needs and circumstances.

 

[Signature pages begin on next page]

 

    	 	-169-	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the day and
year first above written.

 

	 	GBDC 3 FUNDING LLC, as Borrower
	 	 
	 	By: Golub Capital BDC 3, Inc., as designated manager
	 	 
	 	By: 	/s/ Ross A. Teune
	 	 	Name: Ross A. Teune
	 	 	Title: Chief Financial Officer

 

    	 	S-1	 

     

    

 

	 	GOLUB CAPITAL BDC 3, INC., as Equityholder and as Servicer
	 	 
	 	By:	/s/ Ross A. Teune
	 	 	Name: Ross A. Teune
	 	 	Title: Chief Financial Officer

 

    	 	S-2	 

     

    

 

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 	as Collateral Agent and as Collateral Custodian
	 	 	 
	 	By:	/s/ Kathleen Gannaway 
	 	 	Name: Kathleen Gannaway
	 	 	Title: Vice President
	 	 	 
	 	By:	/s/ Ryan Murray 
	 	 	Name: Ryan Murray
	 	 	Title: Associate

 

    	 	S-3	 

     

    

 

	 	DEUTSCHE BANK AG, NEW YORK BRANCH, as Facility Agent
	 	 	 
	 	By:	/s/ Amit Patel
	 	 	Name: Amit Patel
	 	 	Title: Managing Director
	 	 	 
	 	By:	/s/ James Kwak 
	 	 	Name: James Kwak
	 	 	Title: Vice President

 

    	 	S-4	 

     

    

 

	 	DEUTSCHE BANK AG, NEW YORK BRANCH, as an Agent and as a Committed Lender, a Dollar Lender, a Euro Lender, a GBP Lender, an AUD Lender and a CAD Lender
	 	 
	 	By:	/s/ Amit Patel
	 	 	Name: Amit Patel 
	 	 	Title: Managing Director
	 	 	 
	 	By:	/s/ James Kwak 
	 	 	Name: James Kwak
	 	 	Title: Vice President

 

    	 	S-5	 

     

    

 

ANNEX A

 

GBDC 3 FUNDING LLC, 

as Borrower

c/o Golub Capital BDC 3, Inc.

666 Fifth Avenue, 18th Floor

New York, NY 10103

Attention: David Golub

 

GOLUB CAPITAL BDC 3, INC., 

as Equityholder and Servicer

666 Fifth Avenue, 18th Floor

New York, NY 10103

Attention: David Golub

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Collateral Agent and Collateral Custodian

 

For all communications and for delivery of

Collateral Obligation Files

 

Deutsche Bank Trust Company Americas

Structured Credit Services

1761 E. Saint Andrew Place

Santa Ana, CA 92705

Reference: GBDC 3 Funding LLC

Email:  ryan-a.murray@db.com

 

Deutsche Bank AG,
New York Branch,

as Facility Agent

60 Wall Street

New York, New York 10005

Attention: Asset Finance Department

Facsimile No.: 212-797-5160

 

    	 	A-1	 

     

    

 

Deutsche Bank AG,
New York Branch,

as an Agent and as a Committed Lender

60 Wall Street

New York, New York 10005

Attention: Asset Finance Department

Facsimile No.: 212-797-5160

 

    	 	A-2	 

     

    

 

Annex B

 

	Lender	 	Commitment	 
	 	 	 	 	 
	Deutsche Bank AG, New York Branch	 	$	250,000,000	 

 

    	 	B-1

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