Document:

ptc-ex101_8.htm

 

EXECUTIVE AGREEMENT

This Executive Agreement dated September 30, 2020 is by and between PTC Inc., a Massachusetts corporation (the “Company”), and James Heppelmann (the “Executive”).

WHEREAS, the Executive is the President and Chief Executive Officer of the Company; 

 

WHEREAS, the Company wishes to make the following arrangements with the Executive concerning certain payments and benefits to be provided to the Executive if the Executive’s employment with the Company is terminated without cause or if certain other events specified herein occur;

 

NOW, THEREFORE, the Company and the Executive hereby agree as follows:

1.Definitions.

For the purposes of this Agreement:

(a)“Board” means the Company’s board of directors.

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

(c)“Cause” means:

	
 
	
(i)
	
the Executive’s willful and continued failure to substantially perform his duties to the Company (other than any such failure resulting from the Employee’s incapacity due to physical or mental illness), provided that the Company has delivered a written demand for performance to the Executive specifically identifying the manner in which the Company believes that the Executive has not substantially performed his duties and the Executive does not cure such failure within thirty (30) days after such demand;

	
 
	
(ii)
	
willful conduct by the Executive which is demonstrably and materially injurious to the Company; 

	
 
	
(iii)
	
the Executive’s conviction of, or pleading of guilty or nolo contendere to, a felony;

	
 
	
(iv)
	
the Executive’s entry in his personal capacity into a consent decree relating to the business of the Company with any government body; or

	
 
	
(v)
	
the Executive’s willful violation of any material provision of his Non-Disclosure, Non-Competition and Invention Agreement with the Company; provided that, if such violation can be cured, the Executive has not, within thirty (30) days after written demand by the Company, cured such violation.  

For purposes of this definition, no act or failure to act on the Executive’s part shall be deemed “willful” unless done or omitted to be done by the Executive not in good faith and without reasonable belief that his action or omission was in the best interests of the Company.

(d)“Change in Control” means the occurrence of any of the following events: 

	
 
	
(i)
	
any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock in the Company) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities (other than as a result of acquisitions of such securities from the Company); 

 

	
 
	
(ii)
	
individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company) shall be, for purposes of this Agreement, considered to be a member of the Incumbent Board; 

	
 
	
(iii)
	
the consummation of a merger, share exchange or consolidation of the Company or any subsidiary of the Company with any other entity (each a “Business Combination”), other than (A) a Business Combination that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of another entity) beneficial ownership, directly or indirectly, of a majority of the combined voting power of the Company or the surviving entity (including any person that, as a result of such transaction, owns all or substantially all of the Company’s assets either directly or through one or more subsidiaries) outstanding immediately after such Business Combination or (B) a merger, share exchange or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as defined above) is or becomes the beneficial owner of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or 

	
 
	
(iv)
	
the stockholders of the Company approve (A) a plan of complete liquidation of the Company; or (B) an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets but excluding a sale or spin-off of a product line, business unit or line of business of the Company if the remaining business is significant as determined by the Company’s board of directors in its sole discretion.

(e)“Change in Control Termination” means any of the following terminations of the Executive’s employment:

	
 
	
(i)
	
termination of the Executive’s employment by the Company during the period from the date of a Change in Control through the second anniversary thereof, other than for Cause or as a result of the Executive’s Disability; 

	
 
	
(ii)
	
resignation by the Executive for Good Reason during the period from the date of a Change in Control through the second anniversary thereof; or

	
 
	
(iii)
	
termination of the Executive’s employment by the Company within one hundred eighty (180) days prior to a Change in Control, other than for Cause or as a result of the Executive’s Disability, if it is reasonably demonstrated by the Executive that such termination of employment (A) was at the request of a third party that has taken steps reasonably calculated to effect the Change in Control or (B) was otherwise related to or in anticipation of the Change in Control.  A Change in Control Termination under this Section 1(e)(iii) shall be deemed to have occurred when the Change in Control occurs.

(f)“Disability” means such physical or mental incapacity as to make the Executive unable to perform the essential functions of his employment duties for a period of at least sixty (60) consecutive days with or without reasonable accommodation.  If any question shall arise as to whether during any period the Executive is so disabled as to be unable to perform the essential functions of his employment duties with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any reasonable request of the physician in connection with such certification.  If such question shall arise and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on the Executive.

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(g)“Equity Award” means any stock option, stock appreciation right, restricted stock unit, restricted stock or other equity award issued under any Stock Plan, but excludes any Target Annual Incentive Bonus that may be payable in the form of equity.

(h)“Expiration Date” means 11:59 p.m. on September 30, 2023.

(i)“Good Reason” means the occurrence, without the Executive’s consent and without Cause, of any of the following events after or in connection with a Change in Control (provided that the Executive shall have given the Company written notice describing such event within ninety (90) days of its initial existence and the matter shall not have been fully remedied by the Company within thirty (30) days after receipt of such notice): 

	
 
	
(i)
	
any reduction of the Executive’s annual base salary or target bonus from the respective amount (x) in effect at the date of the Change in Control or (y) otherwise required by this Agreement; provided that any such reduction (not exceeding fifteen percent (15%) of either (A) such base salary or (B) the sum of such base salary and such target bonus) that is consistent with similar actions taken with respect to the base salaries and/or target bonuses of the other senior executives of the Company shall not constitute Good Reason;

	
 
	
(ii)
	
any material reduction in the aggregate benefits for which the Executive is eligible under the Company’s benefit plans, including medical, dental, vision, basic life insurance, retirement, paid time off, long-term disability and short-term disability plans; provided that any such reduction or other action that is consistent with similar actions taken with respect to comparable benefits of the Company employees generally shall not constitute Good Reason;  

 

	
 
	
(iii)
	
the failure to maintain the Executive in the position of Chief Executive Officer of the Company;

	
 
	
(iv)
	
a material diminution of the Executive’s authority or responsibilities; provided that no diminution of authority or responsibilities resulting from a sale or spin-off of a product line, business unit or line of business of the Company that does not constitute a Change in Control under Section 1(d)(iv) shall constitute Good Reason;

	
 
	
(v)
	
any breach by the Company of its material obligations under this Agreement;

	
 
	
(vi)
	
any failure by the Company to obtain the assumption of this Agreement by any successor or assign of the Company; or

	
 
	
(vii)
	
any requirement that the Executive relocate to a primary work site that would increase the Executive’s one-way commute distance by more than fifty (50) miles from the Executive’s then principal residence.

(j)“Stock Plan” means any stock option or equity compensation plan of the Company in effect at any time, including without limitation the 2000 Equity Incentive Plan.

(k)“Target Annual Incentive Bonus” means an Annual Incentive Bonus (stated as a cash amount even if it may be payable in the form of equity) payable under a Corporate Incentive Plan of the Company for achievement of performance measure(s) at the Target Level.  “Corporate Incentive Plan” means any incentive program  of the Company in effect at the respective time to the extent it provides for compensation upon achievement of one or more performance measures with a performance period of one year or less and service-based vesting with a vesting term of less than fifteen (15) months (“Annual Incentive Bonus”).  “Bonus Equity” means any Equity Award granted to the Executive under the Corporate Incentive Plan that may be earned upon achievement of one or more performance measures.

(l)“Target Level” means the level at which 100% of a Target Annual Incentive Bonus becomes payable or performance-based Equity Award is deemed earned.  Any upside or other amounts that may be earned for achievement of performance measures beyond the Target Level under the Corporate Incentive Plan or Equity Award documentation, as applicable, and any discretionary or other bonus or amount are not considered part of the Target Annual Incentive Bonus or Equity Award, as applicable.

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(m)“Without Cause Termination” means any of the following terminations of the Executive’s employment:

(i)termination of the Executive’s employment by the Company without Cause;

 

(ii) termination of the Executive’s employment by the Executive due to the failure of the Company to maintain the Executive in the position of Chief Executive Officer of the Company without his consent and without Cause; or

 

(iii) termination of the Executive’s employment as a result of his resignation as Chief Executive Officer of the Company upon the request of the Board in connection with a Board-approved succession plan resulting in the appointment of a new Chief Executive Officer of the Company prior to the Expiration Date and where the Executive was otherwise willing and able to continue serving in such capacity.

 

The foregoing notwithstanding, termination of the Executive’s employment constituting a Change in Control Termination or due to his Disability shall not constitute a “Without Cause Termination” for purposes of this definition.

2.Without Cause Termination.  

Effective upon a Without Cause Termination, the Executive shall be entitled to the following:

(i)payment of his annual base salary, paid bi-weekly, for a two-year period commencing on the termination date, such salary to be paid at a rate equal, on an annualized basis, to the highest annual base salary in effect with respect to the Executive during the six-month period immediately preceding the termination date;

(ii)an aggregate amount equal to two times the average of the Annual Incentive Bonus, if any, paid to the Executive for the two fiscal years immediately preceding the fiscal year in which the termination occurs, paid in equal bi-weekly installments for a two-year period commencing on the termination date, the first payment of which shall (x) be made within forty-five (45) days following the termination date and (y) include all amounts then due under this clause (b) that have not yet been paid; 

(iii)continued participation in the Company’s medical, dental, vision and basic life insurance benefit plans (the “Benefit Plans”), subject to the terms and conditions of the respective plans and applicable law, for a period of two years following the termination date; provided that, to the extent that any of the Benefit Plans does not permit such continuation of the Executive’s participation following his termination or any such plan is terminated, the Company shall pay the Executive an amount which is sufficient for him to purchase equivalent benefits, such amount to be paid quarterly in advance; provided further, however, that to the extent the Executive becomes eligible to receive medical, dental, vision and/or basic life insurance benefits under a plan provided by another employer, the Executive’s entitlement to participate in the corresponding Benefit Plans or to receive such corresponding alternate payments shall cease as of the date the Executive is eligible to participate in such other plan, and the Executive shall promptly notify the Company of his eligibility under such plan; 

(iv)except as provided in any Equity Award documentation that explicitly or implicitly excludes such Equity Award from the effects of this section, effective as of the termination date, all performance measure(s) applicable to any Equity Awards held by the Executive shall be deemed to have been met at the Target Level and all Equity Awards held by the Executive shall immediately become vested, unrestricted and exercisable or distributable at the Target Level; provided, however, that this Section 2(iv) shall not apply to any Bonus Equity held by the Executive, which shall be treated as provided in Section 2(v); and

(v)  a pro-rata portion of any Bonus Equity held by the Executive, having performance measures applicable to the fiscal year, or any portion thereof, in which the termination date occurs, that could be earned at the Target Level, based on the percentage of the applicable fiscal year or 

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applicable portion completed through the date of termination, shall thereupon be vested and subject to no further restrictions, exercisable or distributable, as the case may be, and the portion not so vested shall thereupon automatically be cancelled and forfeited to the Company.  

3.Change in Control.  

(a)Equity Awards.  Effective upon a Change in Control that occurs during the Executive’s employment, and except as provided in any Equity Award documentation that explicitly or implicitly excludes such Equity Award from the effects of this Section 3, the following shall occur:

	
(i)
	
any performance measure(s) applicable to any outstanding Equity Award held by the Executive shall be deemed to have been met at the Target Level (which deemed performance will not affect any service-based vesting schedule for such Equity Award); and;

	
(ii)
	
each outstanding Equity Award held by the Executive shall be deemed amended automatically to provide that, notwithstanding any provision of any Stock Plan, such Equity Award may not be terminated or forfeited without the Executive’s written consent (provided that this shall not prevent termination of (A) any unvested portion thereof that is terminated or forfeited upon termination of the Executive’s employment as provided in the respective Stock Plan or in any agreement or certificate executed in connection with such Equity Award, (B) a stock option the termination of which is covered by Section 8(i) of the Company’s 2000 Equity Incentive Plan, or (C) an Equity Award upon payment of a cash payment with a Fair Market Value (as defined in the applicable Stock Plan) equal to the amount that would have been received upon the exercise or payment of the Equity Award had the Equity Award been exercised or paid upon the Change in Control).  

The foregoing notwithstanding, this Section 3(a) shall not apply to any Bonus Equity held by the Executive, which shall be treated as provided in Section 3(b)(ii).  

(b)Annual Incentive Bonus.  Effective upon (x) a Change in Control that occurs during the Executive’s employment or (y) a Change in Control Termination under Section 1(e)(iii):

(i)the Executive shall be entitled to payment of a pro-rata portion of the Target Annual Incentive Bonus, if any, for which the Executive is eligible for the fiscal year in which the Change in Control occurs, based on the percentage of the performance period completed through the date of the Change in Control, for the purposes of which any performance measure(s) applicable to such Target Annual Incentive Bonus shall be deemed to have been met at the Target Level, which payment shall be made in one lump sum within forty-five (45) days of the date of the Change in Control; provided, however, that this Section 3(b)(i) shall not apply if the Executive holds Bonus Equity for the applicable fiscal year performance period and Section 3(b)(ii) shall apply instead; or

(ii)a pro-rata portion of any Bonus Equity held by the Executive, having performance measures applicable to the fiscal year, or any portion thereof, in which the Change in Control occurs, that could be earned at the Target Level, based on the percentage of the applicable fiscal year or applicable portion completed through the date of the Change in Control, shall thereupon be vested and subject to no further restrictions, exercisable or distributable, as the case may be, and the portion not so vested shall thereupon automatically be cancelled and forfeited to the Company.  

(c)Change in Control Termination Benefits.  

	
(i)
	
Equity Awards.  Effective upon a Change in Control Termination:

(A)all outstanding Equity Awards held by the Executive (other than any Bonus Equity) shall immediately become vested and exercisable or distributable in full; and

(B)all restrictions applicable to restricted stock issued under any Stock Plan and held by the Executive (other than any Bonus Equity) shall immediately lapse; and

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(C)each outstanding stock option issued by the Company and held by the Executive shall remain exercisable, following the termination of the Executive’s employment, until the close of business on the earlier of (x) the end of the original maximum term of such option, or (y) two years following the date of termination of the Executive’s employment. 

	
(ii)
	
Make-Up Payment.  Effective upon a Change in Control Termination under Section 1(e)(iii), the Company shall pay the Executive in a lump sum the amount equal to the sum of:

(x) the excess, if any, of (A) the product of (1) the number of additional shares of the Company’s Common Stock that were subject to Equity Awards that would have become vested and exercisable and/or as to which the restrictions would have lapsed, in each case solely as a result of Section 3(c)(i), and for which the Executive would have been entitled to receive consideration in the Change in Control (on the same basis as other holders of Common Stock), had the Executive remained employed on the date of the Change in Control and was deemed to have exercised all the stock options that would then have become exercisable under Section 3(c)(i)(A) times (2) the amount per share of the Company’s Common Stock (if any) received by the Company’s stockholders generally pursuant to the Change in Control (the “Shareholder Price”) over (B) the aggregate exercise price of all such additional stock options that the Executive would then have become able to exercise upon the Change in Control as a result of Section 3(c)(i)(A) (whereupon all such Equity Awards shall terminate and shall no longer be exercisable); and

(y) the excess, if any, of (A) the product of (1) the number of shares of the Company’s Common Stock that the Executive (a) held on the date of termination of his employment or acquired upon exercise of stock options held on such date and (b) sold before the consummation of the Change in Control (the “Pre-Sold Shares”) times (2) the Shareholder Price over (B) the aggregate amount received by the Executive in the sale(s) of the Pre-Sold Shares.  

The Company shall pay this lump sum payment within forty-five (45) days following the Executive’s termination date.

	
(iii)
	
Salary, Annual Incentive Bonus and Benefits.  Effective upon a Change in Control Termination, the Executive shall be entitled to the following:

(A)a lump sum payment in an amount equal to three times his annual base salary plus his Target Annual Incentive Bonus, such base salary to be the highest annual base salary in effect with respect to the Executive during the six-month period immediately preceding the Executive’s termination and such Target Annual Incentive Bonus to be the highest Target Annual Incentive Bonus in effect with respect to the Executive for (1) the fiscal year in which the Change in Control occurs, (2) the fiscal year following the year in which the Change in Control occurs, or (3) the fiscal year in which the Change in Control Termination occurs, whichever is highest, payable within forty-five (45) days after the termination date; and 

(B)continued participation in the Benefit Plans, subject to the terms and conditions of the respective plans and applicable law, for a period of two years following the termination date; provided that, to the extent that any of the Benefit Plans does not permit such continuation of the Executive’s participation following his termination or any such plan is terminated, the Company shall pay the Executive an amount which is sufficient for him to purchase equivalent benefits, such amount to be paid quarterly in advance; provided, further, however, that to the extent the Executive becomes eligible to receive medical, dental, vision and/or basic life insurance benefits under a plan provided by another employer, the Executive’s entitlement to participate in the corresponding Benefit Plans or to receive such corresponding alternate payments shall cease as of the date the Executive is eligible to participate in such other plan, and the Executive shall promptly notify the Company of his eligibility under such plan.  

(iv)Payments and benefits under this Section 3(c) shall be in lieu and without duplication of any amounts or benefits under Section 2, and the Executive shall be entitled to any such payments and benefits for no more than two years even if both such sections apply.  If, in the event of a Change in Control Termination under Section 1(e)(iii), the Executive becomes entitled to payments under this Section 3(c) after he has begun to receive payments under Section 2, he shall be entitled to a make-up payment to ensure that he receives the higher amount 

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payable hereunder, with such make-up payment being made within forty-five (45) days following the Change in Control Termination.  

(d)Deemed Amendment of Equity Awards.  The Company and the Executive hereby agree that the agreements evidencing any (i) Equity Awards to the Executive are hereby and will be deemed amended to give effect to the provisions of Sections 2, 3 and 4 of this Agreement, and (ii) Bonus Equity are hereby and will be deemed amended to give effect to the provisions of Sections 2(v) and 3(b)(ii) of this Agreement.

4.Death or Disability.  

Effective upon a termination of the Executive’s employment due to Executive’s death or by the Company due to the Executive’s Disability, except as provided in any Equity Award documentation that explicitly or implicitly excludes such Equity Award from the effects of this section, all performance measure(s) applicable to any Equity Awards held by the Executive shall be deemed to have been met at the Target Level and all Equity Awards held by the Executive shall immediately become vested, unrestricted and exercisable or distributable at the Target Level; provided that this Section 4 shall not apply to any Bonus Equity.

5.Taxes.  

(a)Withholding. All payments to be made to the Executive under this Agreement will be subject to any required withholding of federal, state and local income and employment taxes.  In addition, the Company may withhold from any payments hereunder any amounts attributable to withholding taxes applicable to the vesting of or lapse of restrictions on restricted stock or restricted stock units held by the Executive or the exercise of any nonqualified stock options held by the Executive, including, in its discretion withholding from any shares deliverable to the Executive such number of shares as the Company determines is necessary to satisfy such tax obligations, valued at their fair market value (determined pursuant to the respective Company equity compensation plan) as of the date of such vesting or lapse of restrictions.

(b)Limitations on Payments.  

(i)In the event that any such Payments (x) constitute “parachute payments” within the meaning of Section 280G of the Code and (y) but for this subsection (b), would be subject to the Excise Tax, such Payments shall be either

 

(A) delivered in full, or

(B) delivered to such lesser extent that would result in no portion of the Payments being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Executive on an after tax basis, of the greatest amount of Payments, notwithstanding that all or some portion of the Payments may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 6(c)(i) shall be made in writing in good faith by the Accountants in good faith consultation with the Executive. 

(ii)In the event a reduction in the Payments is required hereunder, the Company shall promptly give the Executive notice to that effect and the Executive may then determine, in his sole discretion, which and how much of the Payments shall be eliminated or reduced (as long as, after such election, none of the Payments are subject to the Excise Tax), and shall advise the Company in writing of his election within ten (10) days of his receipt of the Company’s notice.  If no such election is made by the Executive within such period, the Company may determine which and how much of the Payments shall be eliminated or reduced (as long as, after such determination, none of the Payments are subject to the Excise Tax) and shall notify the Executive promptly of such determination.

(iii)For purposes of making the determinations and calculations required by this Section 6(b), the Accountants:  

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(A) shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the Change in Control within the meaning of Section 280G(b)(2) of the Code and the regulations thereunder, including without limitation, the Executive’s agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant, whether set forth in this Agreement or otherwise (a “Noncompete Covenant”), and the Company shall cooperate in good faith in connection with any such valuations and reasonable compensation positions. Without limiting the generality of the foregoing, for purposes of this provision, the Company agrees to allocate as consideration for any Noncompete Covenant the maximum amount of compensation and benefits payable under this Agreement reasonably allocable thereto so as to avoid, to the extent possible, subjecting any Payments to tax under Section 4999 of the Code; and

(B) may make reasonable assumptions and approximations concerning the application of taxes and may rely on reasonable good faith interpretations concerning the application of Sections 280G and 4999 of the Code. 

The Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 6(b). The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 6(b).

(iv)If the Payments are reduced to avoid the Excise Tax pursuant to Section 6(b)(i) hereof and notwithstanding such reduction, the IRS determines that the Executive is liable for the Excise Tax as a result of the receipt of Payments from the Company, then the Executive shall be obligated to pay to the Company (the “Repayment Obligation”) an amount of money equal to the “Repayment Amount.” The Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to the Company so that the Executive’s net proceeds with respect to the Payments (after taking into account the payment of the Excise Tax imposed on such benefits) shall be maximized. Notwithstanding the foregoing, the Repayment Amount shall be zero if a Repayment Amount of more than zero would not eliminate the Excise Tax in accordance with the principles of Section 6(b)(i). If the Excise Tax is not eliminated through the performance of the Repayment Obligation, the Executive shall pay the Excise Tax. The Repayment Obligation shall be discharged within 30 days of either (A) the Executive’s entering into a binding agreement with the IRS as to the amount of Excise Tax liability, or (B) a final determination by the IRS or a court decision requiring the Executive to pay the Excise Tax from which no appeal is available or is timely taken.

6.Certain Payments to Specified Employees.  

Notwithstanding anything to the contrary in this Agreement, if the Executive is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the time of the Executive’s separation from service with the Company (in connection with a Change in Control Termination or otherwise), no payment or benefit payable or provided to the Executive pursuant to this Agreement that constitutes an item of deferred compensation under Code Section 409A and becomes payable by reason of the Executive’s termination of employment with the Company will be paid or provided to the Executive prior to the earlier of (i) the expiration of the six (6) month period following the date of the Executive’s “separation from service” (as such term is defined by Code Section 409A and the regulations promulgated thereunder), or (ii) the date of the Executive’s death, but only to the extent such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2).   The payments and benefits to which the Executive would otherwise be entitled during the first six (6) months following his separation from service shall be accumulated and paid or provided, as applicable, in a lump sum, on the date that is six (6) months and one day following the Executive’s separation from service (or if such date does not fall on a business day of the Company, the next following business day) and any remaining payments or benefits will be paid in accordance with the normal payment dates specified for them herein.

 

7.Term.  

Unless the Executive’s employment is earlier terminated, this Agreement shall continue in effect until the Expiration Date; provided that, if a Change in Control occurs on or after the date hereof while this Agreement is in effect, the term of this Agreement shall continue until the later of (i) the second anniversary of such Change in Control and (ii) the Expiration Date.  Upon the termination of this Agreement, the respective rights and obligations of the parties shall survive to the extent necessary to carry out the intentions of the parties as embodied herein.

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8.Successors and Assigns.

(a)This Agreement is personal to the Executive and is not assignable by the Executive, other than by will or the laws of descent and distribution, without the prior written consent of the Company.

(b)This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

(c)The Company will require any successor or acquirer (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as defined above and any successor to or acquirer of its business and/or assets that assumes and agrees to perform this Agreement.

9.No Duty to Mitigate.  

In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as contemplated by Sections 3(b) and 4(c)(iii)(B) hereof, any benefits payable to the Executive hereunder shall not be subject to reduction for any compensation received from other employment.

10.Conditions to Payment of Severance.  

Notwithstanding any other provision of this Agreement, the Executive’s entitlement to receive any of the payments and other benefits contemplated by Sections 2, 3 or 4 (with respect to Disability) hereof shall be contingent upon:

(a)execution by the Executive within forty-five (45) days of the termination of a general release in substantially the form of Appendix B hereto (the “Release”), which has not subsequently been revoked, and the Executive hereby acknowledges and agrees that the Company’s entering into this Agreement and agreement to make such payments are and shall be good and sufficient consideration for such Release; and 

(b)the Executive’s continued compliance with the material terms of this Agreement, as applicable, and those of his Non-Disclosure, Non-Competition and Invention Agreement with the Company.

11.Miscellaneous.

(a)Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, except any such laws that would render such choice of law ineffective.

(b)Compliance with Section 409A.  This Agreement is intended, to the extent applicable, to constitute good faith compliance with the requirements of Section 409A of the Code.  The Company and the Executive agree that they shall cooperate in good faith to amend any provision hereof to the extent required to maintain compliance with the provisions of Section 409A of the Code as they may be modified hereafter (including by subsequent regulations or other guidance of the Internal Revenue Service).

(c)Amendment.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

(d)Partial Invalidity.  If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

(e)Entire Agreement.  This Agreement constitutes the entire understanding and agreement between the parties hereto regarding the compensation and benefits payable to the Executive in the respective circumstances described herein, superseding all prior understandings and agreements, whether oral or written, including, without limitation, that certain Amended and Restated Executive Agreement, dated December 23, 2019, by and between the Company and the Executive.

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(f)Expenses.  The Company agrees to pay as incurred and within twenty (20) days after submission of supporting documentation, to the full extent permitted by law, all legal fees and expenses the Executive may reasonably incur as a result of any contest by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement) with respect to which the Executive is successful on the merits, plus, in each case, interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code.  The Company’s payment of any eligible expenses must be made no later than December 31 of the year after the year in which the expense was incurred.

(g)Notices.  All notices and other communications hereunder shall be in writing and shall be delivered by hand delivery, by a reputable overnight courier service, or by registered or certified mail, return receipt requested, postage prepaid.  Notice to the Executive shall be addressed to the Executive at his last address contained in the records of the Company, and notice to the Company shall be addressed to:

PTC Inc.

121 Seaport Boulevard

Boston, MA 02210

Attention: General Counsel

Notice shall be addressed to such other address as either party shall have furnished to the other in writing in accordance herewith.  Any notice or communication shall be deemed to be delivered upon the date of hand delivery, one day following delivery to an overnight courier service, or three days following mailing by registered or certified mail.

(h)Resignation as a Director.  In the event Executive’s employment by the Company terminates for any reason, including termination by the Company or by reason of Executive’s disability or resignation, if Executive is then a member of the Board of Directors of the Company, Executive shall irrevocably tender such Executive’s resignation from the Board of Directors effective as of the date of the notice of such termination or resignation, which resignation the Board may accept or reject as it may determine in its sole discretion.  This Section 11(h) is a material term of this Agreement.

 

EXECUTED as of the date first written above.

		
	
PTC INC.

 

 

By: /s/Jill Larsen

Name:Jill Larsen
Title:CHRO
	
JAMES HEPPELMANN

 

 

/s/James Heppelmann

 

 

10form8k10062020exh101work

                                                                    Exhibit 10.1                   AMENDED AND RESTATED CREDIT AGREEMENT                      $25,000,000 REVOLVING CREDIT FACILITY                             $70,000,000 TERM LOAN                                    by and among      DLH HOLDINGS CORP., DLH SOLUTIONS INC., DANYA INTERNATIONAL LLC,   SOCIAL & SCIENTIFIC SYSTEMS, INC. and IRVING BURTON ASSOCIATES, LLC, as                                    Borrowers,                                        and                           THE LENDERS PARTY HERETO                                        and           FIRST NATIONAL BANK OF PENNSYLVANIA, as Administrative Agent                             Dated as of September 30, 2020                                                           _______________________________________________                                                                      F.N.B. CAPITAL MARKETS,                      as Joint Lead Arranger and Sole Book Runner                                        and                 MANUFACTURERS AND TRADERS TRUST COMPANY,                               as Joint Lead Arranger                                            {N0289348 2 }                        

 

                                                                                                             TABLE OF CONTENTS                                                                            Page   1.    CERTAIN DEFINITIONS ..................................................................................................1        1.1   Certain Definitions. ..................................................................................................1        1.2   Construction. ..........................................................................................................36        1.3   Accounting Principles; Changes in GAAP. ...........................................................36   2.    REVOLVING CREDIT AND SWING LOAN FACILITIES...........................................37        2.1   Revolving Credit Commitments. ...........................................................................37              2.1.1. Revolving Credit Loans. .........................................................................37              2.1.2. Swing Loan Commitment. ......................................................................37        2.2   Nature of Lenders’ Obligations with Respect to Revolving Credit Loans. ...........37        2.3   Unused Line Fee. ...................................................................................................38        2.4   Termination or Reduction of Revolving Credit Commitments. ............................38        2.5   Revolving Credit Loan Requests; Swing Loan Requests. .....................................39              2.5.1. Revolving Credit Loan Requests. ...........................................................39              2.5.2. Swing Loan Requests. .............................................................................39        2.6   Making Revolving Credit Loans and Swing Loans; Presumptions by the              Administrative Agent; Repayment of Revolving Credit Loans; Borrowings              to Repay Swing Loans. ..........................................................................................39              2.6.1. Making Revolving Credit Loans. ............................................................39              2.6.2. Presumptions by the Administrative Agent. ...........................................40              2.6.3. Making Swing Loans. .............................................................................40              2.6.4. Repayment of Revolving Credit Loans. ..................................................40              2.6.5. Borrowings to Repay Swing Loans. .......................................................40              2.6.6. [RESERVED] .........................................................................................41        2.7   Amended and Restated Notes. ...............................................................................41        2.8   Use of Proceeds......................................................................................................41        2.9   Letter of Credit Subfacility. ...................................................................................41              2.9.1. Issuance of Letters of Credit. ..................................................................41              2.9.2. Letter of Credit Fees. ..............................................................................42              2.9.3. Disbursements, Reimbursement. ............................................................42              2.9.4. Repayment of Participation Advances. ...................................................44              2.9.5. Documentation. .......................................................................................44              2.9.6. Determinations to Honor Drawing Requests. .........................................44              2.9.7. Nature of Participation and Reimbursement Obligations. ......................44              2.9.8. Indemnity. ...............................................................................................46              2.9.9. Liability for Acts and Omissions. ...........................................................46              2.9.10. Issuing Lender Reporting Requirements. ...............................................48        2.10  Defaulting Lenders.................................................................................................48   3.    TERM LOANS ..................................................................................................................50        3.1   Term Loan Commitments. .....................................................................................50    {N0289348 2 }                         i   

 

                                                                                       3.2   Nature of Lenders’ Obligations with Respect to Term Loans; Repayment              Terms. ....................................................................................................................50   4.    INTEREST RATES ...........................................................................................................51        4.1   Interest Rate Options..............................................................................................51              4.1.1. Revolving Credit Interest Rate Options; Swing Line Interest                     Rate. ........................................................................................................51              4.1.2. Term Loan Interest Rate Options. ...........................................................52              4.1.3. Rate Quotations. ......................................................................................52        4.2   Interest Periods.......................................................................................................52              4.2.1. Amount of Borrowing Tranche. ..............................................................52              4.2.2. Renewals. ................................................................................................52        4.3   Interest After Default. ............................................................................................52              4.3.1. Letter of Credit Fees, Interest Rate. ........................................................52              4.3.2. Other Obligations. ...................................................................................52              4.3.3. Acknowledgment. ...................................................................................53        4.4   LIBOR Rate Unavailable; Illegality; Increased Costs; Deposits Not              Available. ...............................................................................................................53              4.4.1. LIBOR Unavailability .............................................................................53              4.4.2. Effect of Benchmark Transition Event. ..................................................53              4.4.3. Illegality; Increased Costs; Deposits Not Available. ..............................55              4.4.4. Administrative Agent’s and Lender’s Rights. ........................................55        4.5   Selection of Interest Rate Options. ........................................................................56   5.    PAYMENTS ......................................................................................................................56        5.1   Payments. ...............................................................................................................56        5.2   Pro Rata Treatment of Lenders. .............................................................................56        5.3   Sharing of Payments by Lenders. ..........................................................................57        5.4   Presumptions by Administrative Agent. ................................................................57        5.5   Interest Payment Dates. .........................................................................................57        5.6   Voluntary Prepayments. .........................................................................................58              5.6.1. Right to Prepay. ......................................................................................58              5.6.2. Replacement of a Lender. .......................................................................59              5.6.3. Designation of a Different Lending Office. ............................................59        5.7   Mandatory Prepayments. .......................................................................................60              5.7.1. Sale of Assets. .........................................................................................60              5.7.2. Maximum Borrowing Base Exceeded. ...................................................60              5.7.3. Excess Cash Flow. ..................................................................................60              5.7.4. Equity Issuance; Indebtedness. ...............................................................61              5.7.5. Application Among Interest Rate Options. .............................................61        5.8   Increased Costs. .....................................................................................................62              5.8.1. Increased Costs Generally.......................................................................62              5.8.2. Capital Requirements. .............................................................................62              5.8.3. Certificates for Reimbursement; Repayment of Outstanding                     Loans; Borrowing of New Loans. ...........................................................63              5.8.4. Delay in Requests. ..................................................................................63   {N0289348 2 }                         ii   

 

                                                                                       5.9   Taxes. .....................................................................................................................63              5.9.1. Issuing Lender. ........................................................................................63              5.9.2. Payments Free of Taxes. .........................................................................63              5.9.3. Payment of Other Taxes by the Loan Parties..........................................63              5.9.4. Indemnification by the Loan Parties. ......................................................64              5.9.5. Indemnification by the Lenders for Taxes. .............................................64              5.9.6. Evidence of Payments. ............................................................................64              5.9.7. Status of Recipients.................................................................................64              5.9.8. Treatment of Certain Refunds. ................................................................66              5.9.9. Survival. ..................................................................................................67        5.10  Indemnity. ..............................................................................................................67        5.11  Settlement Date Procedures. ..................................................................................67        5.12  Receipt and Application of Payments. ...................................................................68        5.13  Collections; Administrative Agent’s Right to Notify Account Debtors. ...............69        5.14  Joint and Several Liability. ....................................................................................69   6.    REPRESENTATIONS AND WARRANTIES..................................................................69        6.1   Representations and Warranties. ............................................................................69              6.1.1. Organization and Qualification; Power and Authority;                     Compliance with Laws; Title to Properties; Event of Default. ...............70              6.1.2. Subsidiaries and Owners; Investment Companies. .................................70              6.1.3. Validity and Binding Effect. ...................................................................70              6.1.4. No Conflict; Material Agreements..........................................................71              6.1.5. Litigation. ................................................................................................71              6.1.6. Financial Statements. ..............................................................................71              6.1.7. Margin Stock. ..........................................................................................72              6.1.8. Full Disclosure. .......................................................................................72              6.1.9. Taxes. ......................................................................................................72              6.1.10. Patents, Trademarks, Copyrights, Licenses, Etc. ....................................72              6.1.11. Insurance. ................................................................................................73              6.1.12. ERISA Compliance. ................................................................................73              6.1.13. Environmental Matters............................................................................73              6.1.14. Solvency. .................................................................................................74        6.2   Anti-Money Laundering/International Trade Law Compliance. ...........................74   7.    CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT ..............74        7.1   First Loans and Letters of Credit. ..........................................................................74              7.1.1. Deliveries. ...............................................................................................74              7.1.2. Payment of Fees. .....................................................................................76        7.2   Each Loan or Letter of Credit. ...............................................................................76   8.    COVENANTS ...................................................................................................................76        8.1   Affirmative Covenants. ..........................................................................................77              8.1.1. Preservation of Existence, Etc. ...............................................................77              8.1.2. Payment of Liabilities, Including Taxes, Etc. .........................................77              8.1.3. Maintenance of Insurance. ......................................................................77   {N0289348 2 }                         iii   

 

                                                                                             8.1.4. Maintenance of Properties and Leases. ...................................................77              8.1.5. Visitation Rights. ....................................................................................77              8.1.6. Keeping of Records and Books of Account; Depository                     Accounts. ................................................................................................78              8.1.7. Compliance with Laws; Use of Proceeds. ..............................................79              8.1.8. Further Assurances..................................................................................79              8.1.9. Anti-Terrorism Laws. .............................................................................79              8.1.10. Reserved ..................................................................................................80              8.1.11. Maintenance of Patents, Trademarks, Etc...............................................80              8.1.12. Pension Plans and the ESOP. ..................................................................80              8.1.13. Subordination of Intercompany Loans....................................................80              8.1.14. Additional Collateral. ..............................................................................80              8.1.15. Post-Closing Matters ...............................................................................81        8.2   Negative Covenants. ..............................................................................................82              8.2.1. Indebtedness. ...........................................................................................82              8.2.2. Liens; Lien Covenants. ...........................................................................83              8.2.3. Guaranties. ..............................................................................................83              8.2.4. Loans and Investments. ...........................................................................83              8.2.5. Dividends and Related Distributions. .....................................................84              8.2.6. Changes in Acquisition Documents. .......................................................86              8.2.7. Liquidations, Mergers, Consolidations. ..................................................86              8.2.8. Dispositions of Assets or Subsidiaries. ...................................................86              8.2.9. Affiliate Transactions..............................................................................87              8.2.10. Subsidiaries, Partnerships and Joint Ventures. .......................................88              8.2.11. Continuation of or Change in Business. .................................................88              8.2.12. Fiscal Year. .............................................................................................88              8.2.13. [Reserved]. ..............................................................................................88              8.2.14. Changes in Organizational Documents. ..................................................88              8.2.15. Minimum Fixed Charge Coverage Ratio. ...............................................88              8.2.16. Maximum Total Leverage Ratio. ............................................................89              8.2.17. Reserved. .................................................................................................89              8.2.18. Limitation on Negative Pledges. .............................................................89              8.2.19. Payments Under Acquisition Documents. ..............................................90        8.3   Reporting Requirements. .......................................................................................90              8.3.1. Quarterly Financial Statements. ..............................................................90              8.3.2. Annual Financial Statements. .................................................................90              8.3.3. Backlog Report .......................................................................................90              8.3.4. Certificate of the Borrowers....................................................................91              8.3.5. Borrowing Base Certificate.....................................................................91              8.3.6. Accounts Receivable Aging. ...................................................................91              8.3.7. Notices. ...................................................................................................91   9.    DEFAULT .........................................................................................................................92        9.1   Events of Default. ..................................................................................................92              9.1.1. Payments Under Loan Documents..........................................................92              9.1.2. Breach of Warranty. ................................................................................93   {N0289348 2 }                         iv   

 

                                                                                             9.1.3. Breach of Negative Covenants or Visitation Rights. ..............................93              9.1.4. Breach of Other Covenants. ....................................................................93              9.1.5. Defaults in Other Agreements or Indebtedness. .....................................93              9.1.6. Seller Note. .............................................................................................93              9.1.7. Final Judgments or Orders. .....................................................................93              9.1.8. Loan Document Unenforceable. .............................................................93              9.1.9. Events Relating to Pension Plans and Multiemployer Plans. .................94              9.1.10. Change of Control. ..................................................................................94              9.1.11. Holding Company Status ........................................................................94              9.1.12. Relief Proceedings. .................................................................................94              9.1.13. Debarment ...............................................................................................94              9.1.14. Issuance of Adverse Order; Etc. .............................................................94        9.2   Consequences of Event of Default. ........................................................................95              9.2.1. Events of Default Other Than Bankruptcy, Insolvency or                     Reorganization Proceedings....................................................................95              9.2.2. Bankruptcy, Insolvency or Reorganization Proceedings. .......................95              9.2.3. Set-off. ....................................................................................................96              9.2.4. Application of Proceeds. .........................................................................96   10.   THE ADMINISTRATIVE AGENT ..................................................................................97        10.1  Appointment and Authority. ..................................................................................97        10.2  Rights as a Lender. .................................................................................................97        10.3  Exculpatory Provisions. .........................................................................................97        10.4  Reliance by Administrative Agent. ........................................................................98        10.5  Delegation of Duties. .............................................................................................98        10.6  Resignation of Administrative Agent. ...................................................................99        10.7  Non-Reliance on Administrative Agent and Other Lenders. ...............................100        10.8  No Other Duties, etc. ...........................................................................................100        10.9  Fees. .....................................................................................................................100        10.10 Authorization to Release Collateral and Guarantors. ..........................................100        10.11 No Reliance on Administrative Agent’s Customer Identification Program. .......100   11.   GOVERNMENT CONTRACTING PROVISIONS .......................................................101        11.1  Representations Regarding Government Contracts .............................................101        11.2  Compliance ..........................................................................................................101        11.3  Notices of Breach .................................................................................................101        11.4  Potential Liability.................................................................................................102        11.5  Defaults on Government Contracts ......................................................................102        11.6  Suspension, Debarment........................................................................................102        11.7  Negative Determinations of Responsibility .........................................................102        11.8  Audits, Reviews, Inspections, Investigations ......................................................103        11.9  Internal Investigations and Disclosures ...............................................................103        11.10 Government Investigations ..................................................................................103        11.11 Internal Controls ..................................................................................................103        11.12 Assignment of Contracts ......................................................................................104        11.13 Government Notices ............................................................................................104   {N0289348 2 }                         v   

 

                                                                                 12.   MISCELLANEOUS ........................................................................................................104        12.1  Modifications, Amendments or Waivers. ............................................................104              12.1.1. Increase of Commitment. ......................................................................105              12.1.2. Extension of Payment; Reduction of Principal Interest or Fees;                     Modification of Terms of Payment. ......................................................105              12.1.3. Release of Collateral or Guarantor. ......................................................105              12.1.4. Miscellaneous. ......................................................................................105        12.2  No Implied Waivers; Cumulative Remedies. ......................................................105        12.3  Expenses; Indemnity; Damage Waiver. ...............................................................106              12.3.1. Costs and Expenses. ..............................................................................106              12.3.2. Indemnification by the Borrowers. .......................................................106              12.3.3. Reimbursement by Lenders. .................................................................107              12.3.4. Waiver of Consequential Damages, Etc. ..............................................107              12.3.5. Payments. ..............................................................................................107        12.4  Holidays. ..............................................................................................................107        12.5  Notices; Effectiveness; Electronic Communication. ...........................................108              12.5.1. Notices Generally..................................................................................108              12.5.2. Electronic Communications. .................................................................108              12.5.3. Change of Address, Etc.........................................................................108        12.6  Severability. .........................................................................................................108        12.7  Duration; Survival. ...............................................................................................109        12.8  Successors and Assigns........................................................................................109              12.8.1. Successors and Assigns Generally. .......................................................109              12.8.2. Assignments by Lenders. ......................................................................109              12.8.3. Register. ................................................................................................111              12.8.4. Participations.........................................................................................111              12.8.5. Certain Pledges; Successors and Assigns Generally. ...........................112        12.9  Confidentiality. ....................................................................................................112              12.9.1. General. .................................................................................................112              12.9.2. Sharing Information with Affiliates of the Lenders. .............................113        12.10 Counterparts; Integration; Effectiveness. .............................................................113              12.10.1. Counterparts; Integration; Effectiveness. ..............................................113        12.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF              VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. ....................113              12.11.1. Governing Law. ....................................................................................113              12.11.2. SUBMISSION TO JURISDICTION. ...................................................114              12.11.3. WAIVER OF VENUE. .........................................................................114              12.11.4. SERVICE OF PROCESS. ....................................................................114              12.11.5. WAIVER OF JURY TRIAL. ................................................................114        12.12 USA Patriot Act Notice .......................................................................................115        12.13 Amendment and Restatement ..............................................................................115    {N0289348 2 }                         vi   

 

                                                                                                           LIST OF SCHEDULES AND EXHIBITS    SCHEDULES    SCHEDULE 1.1(A)   -     PRICING GRID .........................................................................1   SCHEDULE 1.1(B)   -     COMMITMENTS OF LENDERS AND ADDRESSES FOR                           NOTICES ...................................................................................2   SCHEDULE 1.1(P)   -     PERMITTED LIENS .................................................................3   SCHEDULE 6.1.1    -     QUALIFICATIONS TO DO BUSINESS   SCHEDULE 6.1.2    -     SUBSIDIARIES ........................................................................4   SCHEDULE 8.1.3    -     INSURANCE REQUIREMENTS RELATING TO                           COLLATERAL .........................................................................5  SCHEDULE 8.2.1    -     PERMITTED INDEBTEDNESS ..............................................6  SCHEDULE 11.1     -     EXCEPTIONS TO GOVERNMENT CONTRACT                          REPRESENTATIONS  .............................................................7  SCHEDULE 11.2     -     EXCEPTIONS TO GOVERNMENT CONTRACT                          COMPLIANCE .........................................................................8  SCHEDULE 11.6     -     SUSPENSION, DISBARMENT ...............................................9  SCHEDULE 11.8     -     CERTAIN GOVERNMENT CONTRACTING EVENTS  ....10  SCHEDULE 11.9     -     INTERNAL INVESTIGATIONS ...........................................11  SCHEDULE 11.10    -     INTERNAL CONTROLS .......................................................12        EXHIBITS   EXHIBIT 1.1(A)    -     ASSIGNMENT AND ASSUMPTION AGREEMENT ..........13  EXHIBIT 1.1(C)    -     COLLATERAL ASSIGNMENT OF CONTRACT RIGHTS 14  EXHIBIT 1.1(G)(1) -     GUARANTOR JOINDER .......................................................15  EXHIBIT 1.1(G)(2) -     GUARANTY AGREEMENT .................................................16  EXHIBIT 1.1(N)(1) -     REVOLVING CREDIT NOTE ...............................................17  EXHIBIT 1.1(N)(2) -     SWING LOAN NOTE .............................................................18   EXHIBIT 1.1(N)(3) -     TERM NOTE ...........................................................................19   EXHIBIT 1.1(P)(1) -     AMENDED AND RESTATED PATENT, TRADEMARK AND                           COPYRIGHT  SECURITY AGREEMENT ...........................20   EXHIBIT 1.1(P)(2) -     AMENDED AND RESTATED PLEDGE AGREEMENT ....21   EXHIBIT 1.1(S)    -     AMENDED AND RESTATED SECURITY AGREEMENT 22   EXHIBIT 2.5.1     -     LOAN REQUEST ...................................................................23   EXHIBIT 2.5.2     -     SWING LOAN REQUEST .....................................................24   EXHIBIT 5.9.7(A)  -     U.S. TAX COMPLIANCE CERTIFICATE (For Foreign                           Recipients That Are Not Partnerships For U.S. Federal Income Tax                           Purposes) ..................................................................................25     {N0289348 2 }                        vii    

 

                                                                                 EXHIBIT 5.9.7(B)  -     U.S. TAX COMPLIANCE CERTIFICATE (For Foreign                          Participants That Are Not Partnerships For U.S. Federal Income                          Tax Purposes)...........................................................................26   EXHIBIT 5.9.7(C)  -     U.S. TAX COMPLIANCE CERTIFICATE (For Foreign                          Participants That Are Partnerships For U.S. Federal Income Tax                         Purposes) ..................................................................................27   EXHIBIT 5.9.7(D)  -     U.S. TAX COMPLIANCE CERTIFICATE (For Foreign                          Recipients That Are Partnerships For U.S. Federal Income Tax                          Purposes) ..................................................................................28  EXHIBIT 8.3.4     -     QUARTERLY COMPLIANCE CERTIFICATE ....................29        {N0289348 2 }                        viii   

 

                                  CREDIT AGREEMENT         THIS  AMENDED AND RESTATED CREDIT AGREEMENT (as hereafter amended,  the “Agreement”) is dated as of September 30, 2020, and is made by and among DLH  HOLDINGS CORP., a New Jersey corporation (“Holdings”), DLH SOLUTIONS, INC., a   Georgia corporation (“Solutions”), DANYA INTERNATIONAL, LLC, a Maryland limited   liability company (“Danya”), SOCIAL AND SCIENTIFIC SYSTEMS, INC., a Delaware   corporation (“Systems”), and IRVING BURTON ASSOCIATES, LLC, a Virginia limited   liability company (“IBA” and collectively with Holdings, Solutions, Danya and Systems, the   “Borrowers”), each of the GUARANTORS (as hereinafter defined), the LENDERS (as   hereinafter defined), and FIRST NATIONAL BANK OF PENNSYLVANIA, in its capacity as   administrative agent for the Lenders under this Agreement (hereinafter referred to in such   capacity as the “Administrative Agent”).                                   WITNESSETH         WHEREAS, certain of the Borrowers and the Guarantors are party to the Credit   Agreement dated as of June 7, 2019, among certain of the Borrowers, the Guarantors, the lenders   party thereto and First National Bank of Pennsylvania, as administrative agent, as amended by   First Amendment to Credit Agreement dated September 6, 2019 (the “Existing Credit   Agreement”);         WHEREAS, Holdings   has entered into that certain Equity Purchase Agreement (as   defined hereinafter) pursuant to which Holding shall acquire 100% of the equity interests of IBA;         WHEREAS, the Borrowers have requested the Lenders and the Administrative Agent   amend and restate the Existing Credit Agreement in its entirety on the terms and conditions set   forth herein to provide (i) a revolving credit facility to the Borrowers in an aggregate principal   amount not to exceed $25,000,000, (ii) a $70,000,000 term loan facility, and (iii) to join IBA as a   Borrower; and         WHEREAS, subject to the terms and conditions of this Agreement, the Lenders and the   Administrative Agent are willing to amend and restate the Existing Credit Agreement on the   terms and conditions set forth herein.         NOW, THEREFORE, in consideration of their mutual covenants and agreements   hereinafter set forth and intending to be legally bound hereby, the parties hereto covenant and   agree as follows:     1. CERTAIN DEFINITIONS          1.1   Certain Definitions.  In addition to words and terms defined elsewhere in this   Agreement, the following words and terms shall have the following meanings, respectively,   unless the context hereof clearly requires otherwise:                Account Debtor shall mean any Person who is obligated on any Receivable.                Acquisition shall mean the acquisition by Holdings of 100% of the Equity   Interests of IBA, pursuant to, and in accordance with, the terms and provisions of the Equity   Purchase Agreement.    {N0289348 2 }                      1    

 

               Acquisition Documents shall mean the Equity Purchase Agreement and the  Escrow Agreement (as each such term is defined in the Equity Purchase Agreement unless  otherwise herein defined), as the same may be supplemented or amended from time to time in  accordance herewith.               Administrative Agent shall have the meaning specified in the introductory  paragraph.               Administrative Borrower shall mean Holdings, on behalf of itself and each of the  other Borrowers hereunder.               Affiliate as to any Person shall mean any other Person (i) which directly or  indirectly controls, is controlled by, or is under common control with such Person, (ii) which  beneficially owns or holds 10% or more of any class of the voting or other equity interests of  such Person, or (iii) 10% or more of any class of voting interests or other equity interests of  which is beneficially owned or held, directly or indirectly, by such Person.  For purposes of this  definition, “control” of a Person means the power, directly or indirectly, to direct or cause the  direction of management and policies of such Person, whether by contract or otherwise.  Notwithstanding the foregoing, however, for purposes of this Agreement, the term “Affiliate”  shall not include Wynnefield Partners Small Cap Value, LP, Wynnefield Partners Small Cap  Value, LP I, Wynnefield Small Cap Value Offshore Fund, Ltd. and any other affiliated entity  controlled by Wynnefield Capital, Inc.               Agency Fee shall have the meaning specified in Section 10.9 [Fees].               Amended and Restated Notes shall mean collectively, and Amended and Restated  Note shall mean separately, the promissory notes in the form of Exhibit 1.1(N)(1) evidencing the  Revolving Credit Loans, in the form of Exhibit 1.1(N)(2) evidencing the Swing Loan, and in the  form of Exhibit 1.1(N)(3) evidencing the Term Loans.               Amended and Restated Patent, Trademark and Copyright  Security Agreement  shall mean the Amended and Restated Patent, Trademark and Copyright  Security Agreement in  substantially the form of Exhibit 1.1(P)(1) executed and delivered by each of the Loan Parties to  the Administrative Agent for the benefit of the Lenders.               Amended and Restated Pledge Agreement shall mean the Amended and Restated  Pledge Agreement in substantially the form of Exhibit 1.1(P)(2) executed and delivered by each  of the Loan Parties and Holdings to the Administrative Agent for the benefit of the Lenders.               Amended and Restated Security Agreement shall mean the Amended and  Restated Security Agreement in substantially the form of Exhibit 1.1(S) executed and delivered  by each of the Loan Parties to the Administrative Agent for the benefit of the Lenders.                Amended and Restated Security Documents shall mean the Amended and  Restated Security Agreement, the Amended and Restated Pledge Agreement, the Amended and  Restated Patent, Trademark and Copyright Security Agreement and any other instruments or  documents delivered in connection with the Collateral executed by each of the Loan Parties to  the Administrative Agent for the benefit of the Lenders.     {N0289348 2 }                      2   

 

                 Anti-Terrorism Laws shall mean any Laws relating to terrorism or money   laundering, including Executive Order No. 13224, the USA Patriot Act, the Laws comprising or   implementing the Bank Secrecy Act, and the Laws administered by the United States Treasury   Department’s Office of Foreign Asset Control (as any of the foregoing Laws may from time to   time be amended, renewed, extended, or replaced).                 Applicable Letter of Credit Fee Rate shall mean the percentage rate per annum   based on the Total Leverage Ratio then in effect according to the pricing grid on Schedule 1.1(A)   below the heading “LIBOR Rate Spread.”                Applicable Margin shall mean, as applicable:                       (A)   the percentage spread to be added to the Base Rate under the Base   Rate Option based on the Total Leverage Ratio then in effect according to the pricing grid on   Schedule 1.1(A) below the heading “Base Rate Spread”, or                      (B)   the percentage spread to be added to the LIBOR Rate (or the then   current Benchmark Replacement in accordance with Section 4.4.2 [Effect of Benchmark   Transition Event]) under the LIBOR Rate Option based on the Total Leverage Ratio then in   effect according to the pricing grid on Schedule 1.1(A) below the heading “LIBOR Rate   Spread”.                Applicable Unused Line Fee Rate shall mean the percentage rate per annum based   on the Total Leverage Ratio then in effect according to the pricing grid on Schedule 1.1(A)   below the heading “Unused Line Fee.”                Approved Fund shall mean any fund that is engaged in making, purchasing,   holding or investing in bank loans and similar extensions of credit in the ordinary course of   business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c)   an entity or an Affiliate of an entity that administers or manages a Lender.                 Arrangement Fee shall have the meaning specified in Section 10.9 [Fees].                Asset Sale shall mean any Disposition by the Borrowers or any of their   Subsidiaries of any asset or property pursuant to Section 8.2.8 (xii) [Dispositions of Assets or  Subsidiaries].                Assignment and Assumption Agreement  shall mean an assignment and   assumption agreement entered into by a Lender and an assignee permitted under Section 12.8   [Successors and Assigns], in substantially the form of Exhibit 1.1(A).                Assignment of Claims Act shall mean the Assignment of Claims Act of 1940, 31   U.S.C. Section 3727 and 41 U.S.C. Section 15, as amended.                Authorized Officer shall mean, with respect to any Loan Party, the Chief   Executive Officer, President, Chief Financial Officer, Treasurer or Assistant Treasurer of such   Loan Party, any manager or the members (as applicable) in the case of any Loan Party which is a   limited liability company, or such other individuals, designated by written notice to the    {N0289348 2 }                      3    

 

     Administrative Agent from the Administrative Borrower, authorized to execute notices, reports   and other documents on behalf of the Loan Parties required hereunder.  The Administrative   Borrower may amend such list of individuals from time to time by giving written notice of such   amendment to the Administrative Agent.                Available Tenor means, as of any date of determination and with respect to the then-  current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest   calculated with reference to such Benchmark, as applicable, that is or may be used for determining   the length of an Interest Period pursuant to this Agreement as of such date and not including, for the   avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of   “Interest Period” pursuant to clause (iv) of Section 4.4.2 [Benchmark Replacement Setting].                Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal   to the highest of (a) the Federal Funds Open Rate, plus 0.5%, and (b) the Prime Rate, and (c) the   LIBOR Rate, plus 1.0% (100 basis points).  Any change in the Base Rate (or any component   thereof) shall take effect at the opening of business on the day such change occurs.                Base Rate Option shall mean the option of the Borrowers to have Loans bear   interest at the rate and under the terms set forth in either Section 4.1.1 [Revolving Credit Interest  Rate Options; Swing Line Interest Rate] or Section 4.1.2 [Term Loan Interest Rate Options], as  applicable.                 Benchmark means, initially, USD LIBOR; provided that if a Benchmark   Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark   Replacement Date have occurred with respect to USD LIBOR or the then-current Benchmark,   then “Benchmark” means the applicable Benchmark Replacement to the extent that such   Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 4.4.2  [Benchmark Replacement Setting].                Benchmark Replacement means, for any Available Tenor, the first alternative set   forth in the order below that can be determined by the Administrative Agent for the applicable   Benchmark Replacement Date:                (1)   the sum of: (a) Term SOFR and (b) the related Benchmark Replacement   Adjustment;                (2)   the sum of: (a) Daily Simple SOFR and (b) the related Benchmark   Replacement Adjustment;                (3) the sum of: (a) the alternate benchmark rate that has been selected by the   Administrative Agent and the Administrative Borrower as the replacement for the then-current  Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection  or recommendation of a replacement benchmark rate or the mechanism for determining such a  rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market  convention for determining a benchmark rate as a replacement for the then-current Benchmark  for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related  Benchmark Replacement Adjustment;     {N0289348 2 }                      4    

 

               provided that, in the case of clause (1), such Unadjusted Benchmark Replacement  is displayed on a screen or other information service that publishes such rate from time to time as  selected by the Administrative Agent in its reasonable discretion. If the Benchmark Replacement  as determined pursuant to clause (1), (2) or (3) above would be less than .50% (50 basis points),  the Benchmark Replacement will be deemed to be .50% (50 basis points) for the purposes of this  Agreement and the other Loan Documents.               Benchmark Replacement Adjustment means, with respect to any replacement of  the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable  Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:               (1) for purposes of clauses (1) and (2) of the definition of “Benchmark  Replacement,” the first alternative set forth in the order below that can be determined by the  Administrative Agent:               (a)   the spread adjustment, or method for calculating or determining such  spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time  such Benchmark Replacement is first set for such Interest Period that has been selected or  recommended by the Relevant Governmental Body for the replacement of such Benchmark with  the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;               (b)   the spread adjustment (which may be a positive or negative value or zero)  as of the Reference Time such Benchmark Replacement is first set for such Interest Period that  would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to  be effective upon an index cessation event with respect to such Benchmark for the applicable  Corresponding Tenor; and               (2) for purposes of clause (3) of the definition of “Benchmark Replacement,” the  spread adjustment, or method for calculating or determining such spread adjustment, (which may  be a positive or negative value or zero) that has been selected by the Administrative Agent and  the Administrative Borrower for the applicable Corresponding Tenor giving due consideration to  (i) any selection or recommendation of a spread adjustment, or method for calculating or  determining such spread adjustment, for the replacement of such Benchmark with the applicable  Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable  Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for  determining a spread adjustment, or method for calculating or determining such spread  adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark  Replacement for U.S. dollar-denominated syndicated or credit facilities;               provided that, in the case of clause (1) above, such adjustment is displayed on a  screen or other information service that publishes such Benchmark Replacement Adjustment  from time to time as selected by the Administrative Agent in its reasonable discretion.               Benchmark Replacement Conforming Changes means, with respect to any  Benchmark Replacement, any technical, administrative or operational changes (including  changes to the definition of “Business Day,” the definition of “Interest Period,” timing and  frequency of determining rates and making payments of interest, timing of borrowing requests or    {N0289348 2 }                      5   

 

     prepayment, conversion or continuation notices, length of lookback periods, the applicability of   breakage provisions and other technical, administrative or operational matters) that the   Administrative Agent decides may be appropriate to reflect the adoption and implementation of   such Benchmark Replacement and to permit the administration thereof by the Administrative   Agent in a manner substantially consistent with market practice (or, if the Administrative Agent   decides that adoption of any portion of such market practice is not administratively feasible or if   the Administrative Agent determines that no market practice for the administration of such   Benchmark Replacement exists, in such other manner of administration as the Administrative   Agent decides is reasonably necessary in connection with the administration of this Agreement   and the other Loan Documents).                Benchmark Replacement Date means the earliest to occur of the following events   with respect to the then-current Benchmark:                (1)   in the case of clause (1) or (2) of the definition of “Benchmark Transition   Event,” the later of (a) the date of the public statement or publication of information referenced   therein and (b) the date on which the administrator of such Benchmark (or the published   component used in the calculation thereof) permanently or indefinitely ceases to provide all   Available Tenors of such Benchmark (or such component thereof);                (2)   in the case of clause (3) of the definition of “Benchmark Transition   Event,” the date of the public statement or publication of information referenced therein; or                (3)   in the case of an Early Opt-in Election, the sixth (6th) Business Day after  the date notice of such Early Opt-in Election is provided to the Lenders, so long as the  Administrative Agent has not received, by 5:00 p.m. (New York city time) on the fifth (5th)  Business Day after the date notice of such Early Opt-in Election is provided to the Lenders,  written notice of objection to such Early Opt-in Election from Lenders comprising Required  Lenders.               For the avoidance of doubt, (i) if the event giving rise to the Benchmark  Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of  any determination, the Benchmark Replacement Date will be deemed to have occurred prior to  the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be  deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the  occurrence of the applicable event or events set forth therein with respect to all then-current  Available Tenors of such Benchmark (or the published component used in the calculation  thereof).                Benchmark Transition Event means the occurrence of one or more of the   following events with respect to the then-current Benchmark:                (1)   a public statement or publication of information by or on behalf of the   administrator of such Benchmark (or the published component used in the calculation thereof)   announcing that such administrator has ceased or will cease to provide all Available Tenors of   such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the     {N0289348 2 }                      6    

 

     time of such statement or publication, there is no successor administrator that will continue to   provide any Available Tenor of such Benchmark (or such component thereof);                (2)   a public statement or publication of information by the regulatory   supervisor for the administrator of such Benchmark (or the published component used in the  calculation thereof), the Board of Governors of the Federal Reserve System, the Federal Reserve  Bank of New York, an insolvency official with jurisdiction over the administrator for such  Benchmark (or such component), a resolution authority with jurisdiction over the administrator  for such Benchmark (or such component) or a court or an entity with similar insolvency or  resolution authority over the administrator for such Benchmark (or such component), which  states that the administrator of such Benchmark (or such component) has ceased or will cease to  provide all Available Tenors of such Benchmark (or such component thereof) permanently or  indefinitely, provided that, at the time of such statement or publication, there is no successor   administrator that will continue to provide any Available Tenor of such Benchmark (or such   component thereof); or                (3)   a public statement or publication of information by the regulatory   supervisor for the administrator of such Benchmark (or the published component used in the   calculation thereof) announcing that all Available Tenors of such Benchmark (or such   component thereof) are no longer representative.                For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to   have occurred with respect to any Benchmark if a public statement or publication of information  set forth above has occurred with respect to each then-current Available Tenor of such   Benchmark (or the published component used in the calculation thereof).                Benchmark Unavailability Period means the period (if any) (x) beginning at the   time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has   occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark   for all purposes hereunder and under any Loan Document in accordance with Section 4.4.2   [Benchmark Replacement Setting] and (y) ending at the time that a Benchmark Replacement has   replaced the then-current Benchmark for all purposes hereunder and under any Loan Document   in accordance with Section 4.4.2 [Benchmark Replacement Setting].                Beneficial Ownership Certification shall mean a certification regarding beneficial   ownership as required by the Beneficial Ownership Regulation.                Beneficial Ownership Regulation shall mean 31 C.F.R. § 1010.230.                Borrower Equity Interests shall have the meaning specified in Section 6.1.2   [Subsidiaries and Owners; Investment Companies].                 Borrowers shall have the meaning specified in the introductory paragraph.                Borrowing Base shall mean at any time an amount equal to the sum of (i) 90% of   Eligible Billed Government Accounts Receivable plus (ii) 80% of Eligible Billed Commercial   Accounts Receivable plus the lesser of (x) 50% of Eligible Unbilled Accounts Receivable and   (y) $10,000,000.  Notwithstanding anything to the contrary herein, the Administrative Agent    {N0289348 2 }                      7    

 

   may, in its Permitted Discretion, at any time hereafter, decrease the above advance percentages,  or increase the level of any reserves or ineligibles, or define or maintain such other reserves or  ineligibles, as the Administrative Agent may deem necessary or appropriate.  Any such change  shall become effective immediately upon written notice from the Administrative Agent to the  Borrowers for the purpose of calculating the Borrowing Base hereunder.               Borrowing Date shall mean, with respect to any Loan, the date for the making  thereof or the renewal or conversion thereof at or to the same or a different Interest Rate Option,  which shall be a Business Day.               Borrowing Base Certificate shall have the meaning specified in 8.3.5 [Borrowing  Base Certificate].               Borrowing Tranche shall mean specified portions of Loans outstanding as  follows:  (i) any Loans to which a LIBOR Rate Option applies which become subject to the same  Interest Rate Option under the same Loan Request by the Administrative Borrower and which  have the same Interest Period shall constitute one Borrowing Tranche, and (ii) all Loans to which  a Base Rate Option applies shall constitute one Borrowing Tranche.               Business Day shall mean any day other than a Saturday or Sunday or a legal  holiday on which commercial banks are authorized or required to be closed for business in  Pittsburgh, Pennsylvania and if the applicable Business Day relates to any Loan to which the  LIBOR Rate Option applies, such day must also be a day on which dealings are carried on in the  London interbank market.               Capital Expenditures shall mean for any period, with respect to any Person, the  aggregate of all expenditures by such Person for the acquisition or leasing (pursuant to a capital  lease) of fixed or capital assets or additions to equipment (including replacements, capitalized  repairs and improvements during such period) which are required to be capitalized under GAAP  on a consolidated balance sheet of such Person.               Capital Stock shall mean any and all shares, interests, participations or other  equivalents (however designated) of capital stock of a corporation, any and all equivalent  ownership interests in a Person (other than a corporation) and any and all warrants, rights or  options to purchase any of the foregoing.               Cash Collateral Account shall have the meaning specified in Section 5.12  [Receipt and Application of Payments].               Cash Equivalents means any of the following types of Investments, to the extent  owned by Holdings or any of its Subsidiaries free and clear of all Liens (other than Liens created  under the Amended and Restated Security Documents):                      readily marketable obligations issued or directly and fully guaranteed or        insured by the United States of America or any agency or instrumentality thereof having        maturities of not more than 360 days from the date of acquisition thereof; provided that        the full faith and credit of the United States of America is pledged in support thereof;    {N0289348 2 }                      8   

 

                       time deposits with, or insured certificates of deposit or bankers’         acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under         the laws of the United States of America, any state thereof or the District of Columbia or         is the principal banking subsidiary of a bank holding company organized under the laws         of the United States of America, any state thereof or the District of Columbia, and is a         member of the Federal Reserve System, (ii) issues (or the parent of which issues)         commercial paper rated as described in clause (c) of this definition and (iii) has combined         capital and surplus of at least $1,000,000,000, in each case with maturities of not more         than 90 days from the date of acquisition thereof;                     commercial paper issued by any Person organized under the laws of any        state of the United States of America and rated at least “Prime-1” (or the then equivalent        grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in each case        with maturities of not more than 180 days from the date of acquisition thereof; and                     Investments, classified in accordance with GAAP as current assets of the        Holdings or any of its Subsidiaries, in money market investment programs registered        under the Investment Company Act of 1940, which are administered by financial        institutions that have the highest rating obtainable from either Moody’s or S&P, and the        portfolios of which are limited solely to Investments of the character, quality and        maturity described in clauses (a), (b) and (c) of this definition.                Cash Taxes shall mean for any period, with respect to any Person, the cash Taxes   with respect to such Person for such period.                Change in Law shall mean the occurrence, after the date of this Agreement, of any   of the following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in  the administration, interpretation, implementation or application thereof by any Official Body or  (c) the making or issuance of any request, rule, guideline or directive (whether or not having the  force of Law) by any Official Body; provided that notwithstanding anything herein to the   contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,   rules, regulations, guidelines, interpretations or directives thereunder or issued in connection   therewith (whether or not having the force of Law) and (y) all requests, rules, regulations,   guidelines, interpretations or directives promulgated by the Bank for International Settlements,   the Basel Committee on Banking Supervision (or any successor or similar authority) or the   United States or foreign regulatory authorities (whether or not having the force of Law), 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, promulgated or implemented.                Change of Control shall mean the occurrence, after the date hereof, of any of the   following:  (a)(i) any person or group of persons (within the meaning of Section 13 or 14 of the   Securities Exchange Act of 1934, as amended), other than any employee benefit plan or plans   (within the meaning of Section 3(3) of ERISA), shall have acquired beneficial ownership (within   the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under said   Act) of 35% or more in voting power of the outstanding voting Equity Interests of Holdings   (excluding Wynnefield Partners Small Cap Value, LP, Wynnefield Partners Small Cap Value,   LP I, Wynnefield Small Cap Value Offshore Fund, Ltd. and any other affiliated entity controlled    {N0289348 2 }                      9    

 

     by Wynnefield Capital, Inc.) , or (ii) during any period of twelve (12) consecutive calendar   months, individuals who were directors of Holdings on the first day of such period shall cease to   constitute a majority of the board of directors of Holdings other than because of the replacement   of one or more such directors as a result of death or disability or to fill a vacancy caused by the  voluntary resignation of a member of the board of directors; provided, however, that if the  election (or nomination for election by the shareholders of Holdings) of any new director was  approved by a vote of the majority of the incumbent board of directors, such new director shall,  for the purposes of this Agreement, be deemed a member of the incumbent board of directors; or  (b) Holdings shall cease to own 100% of the outstanding Equity Interests of each of the  Subsidiary Borrowers;                CIP Regulations shall have the meaning specified in Section 10.11 [No Reliance   on Administrative Agent’s Customer Identification Program].                Closing Date shall mean September 30, 2020.                Code shall mean the Internal Revenue Code of 1986, as the same may be   amended or supplemented from time to time, and any successor statute of similar import, and the   rules and regulations thereunder, as from time to time in effect.                Collateral shall mean the collateral under the (i) Amended and Restated Security   Agreement, (ii) Amended and Restated Pledge Agreement, (iii) Collateral Assignment, and (iv)   Amended and Restated Patent, Trademark and Copyright  Security Agreement.                Collateral Assignment shall mean the Collateral Assignment of Contract Rights in   the form of Exhibit 1.1(C).                Commercial Contract shall mean any written contract to which a Loan Party is a   party (other than a Government Contract) which gives rise or may give rise to a Receivable, and   includes Government Subcontracts, service agreements, other written contracts and, with respect   to forensics-related services, a written invoice with respect to services performed.                Commercial Letter of Credit shall mean any letter of credit which is a commercial   letter of credit issued in respect of the purchase of goods or services by one or more of the Loan   Parties in the ordinary course of their business.                Commitment shall mean as to any Lender the aggregate of its Revolving Credit   Commitment and Term Loan Commitment    and, in the case of FNB, its Swing Loan   Commitment, and Commitments   shall mean the aggregate of the Revolving Credit   Commitments, Term Loan Commitments and Swing Loan Commitment of all of the Lenders.                Compliance Authority means each and all of the (a) U.S. Treasury   Department/Office of Foreign Assets Control, (b) U.S. Treasury Department/Financial Crimes   Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls,   (d) U.S. Commerce Department/Bureau of Industry and Security, (e) U.S. Internal Revenue  Service, (f) U.S. Justice Department, and (g) U.S. Securities and Exchange Commission.     {N0289348 2 }                      10    

 

               Compliance Certificate shall have the meaning specified in Section 8.3.4  [Certificate of the Borrowers].               Connection Income Taxes shall mean Other Connection Taxes that are imposed  on or measured by net income (however denominated) or that are franchise Taxes or branch  profits Taxes.               Consolidated EBITDA for any period of determination shall mean Consolidated  Net Income increased (without duplication) by the following, in each case to the extent deducted  (and not added back) in determining Consolidated Net Income for such period: (i) all interest  expense for such period, (ii) all charges against, or minus credits to, income taxes for such  period, (iii) depreciation expenses for such period, (ii) amortization expenses for such period,  (iii) other non-cash charges, losses or expenses for such period, including stock-based  compensation, and (iv) non-recurring charges, losses or expenses incurred other than in the  ordinary course of business, including Transaction Expenses, subject to the Administrative  Agent’s reasonable approval; provided that non-cash gains and losses on the sale of assets  permitted hereunder for such period shall be excluded from the calculation of Consolidated  EBITDA. Consolidated EBITDA shall be deemed to be: (i) $5,776,020 for the quarterly period  ending December 31, 2019; (ii) $6,614,868 for the quarterly period ending March 31, 2020; and  (iii) $6,641,520 for the quarterly period ending June 30, 2020.               Consolidated Net Income shall mean the aggregate of the net income (or loss) 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, (i) any net  after-tax effect of extraordinary, non-recurring or unusual (1) non-cash gains or non-cash losses  (less all fees and expenses relating thereto) or (2) non-cash expenses shall be excluded; (ii) any  net after-tax non-cash gains or non-cash losses on disposal of disposed, abandoned or  discontinued operations shall be excluded; (iii) any net after-tax effect of non-cash gains or non- cash losses (less all fees, expenses and charges) attributable to asset dispositions or  abandonments or the sale or other disposition of any Equity Interests of any Person other than in  the ordinary course of business, as determined in good faith by the Borrowers, shall be excluded  and (iv) any net unrealized non-cash gain or non-cash loss (after any offset) resulting in such  period from Interest Rate Hedges shall be excluded.               Corresponding Tenor with respect to any Available Tenor means, as applicable,  either a tenor (including overnight) or an interest payment period having approximately the  same length (disregarding business day adjustment) as such Available Tenor.               Covered Entity means each Borrower, its Affiliates and Subsidiaries, all  Guarantors, pledgors of Collateral, all owners of the foregoing, and all brokers or other agents  of the such Borrower acting in any capacity in connection with the Loans.               Daily Simple SOFR means, for any day, SOFR, with the conventions for this rate  (which will include a lookback) being established by the Administrative Agent in accordance with  the conventions for this rate selected or recommended by the Relevant Governmental Body for  determining “Daily Simple SOFR” for business loans; provided, that if the Administrative Agent  decides that any such convention is not administratively feasible for the Administrative Agent,  then the Administrative Agent may establish another convention in its reasonable discretion.   {N0289348 2 }                      11   

 

                                Danya shall have the meaning specified in the introductory paragraph.                Debtor Relief Laws shall mean the Bankruptcy Code of the United States, and all   other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,   moratorium,  rearrangement, receivership, insolvency, reorganization, or similar debtor relief   Laws of the United States or other applicable jurisdictions from time to time in effect and   affecting the rights of creditors generally.                Defaulting Lender shall mean any Lender that (a) has failed, within two Business   Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any   portion of its participations in Letters of Credit or Swing Loans or (iii) pay over to the   Administrative Agent, the Issuing Lender, FNB (as the Swing Loan Lender) or any Lender any   other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such   Lender notifies the Administrative Agent in writing that such failure is the result of such   Lender’s good faith determination that a condition precedent to funding (specifically identified   and including the particular default, if any) has not been satisfied, (b) has notified the   Administrative Borrower and the Administrative Agent in writing, or has made a public   statement to the effect, that it does not intend or expect to comply with any of its funding   obligations under this Agreement (unless such writing or public statement indicates that such   position is based on such Lender’s good faith determination that a condition precedent   (specifically identified and including the particular default, if any) to funding a loan under this   Agreement cannot be satisfied) or generally under other agreements in which it commits to   extend credit, (c) has failed, within two Business Days after request by the Administrative Agent   or the Administrative Borrower, acting in good faith, to provide a certification in writing from an   authorized officer of such Lender that it will comply with its obligations (and is financially able   to meet such obligations) to fund prospective Loans and participations in then outstanding  Letters of Credit and Swing Loans under this Agreement, provided that such Lender shall cease  to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent’s or the   Administrative Borrower’s receipt of such certification in form and substance satisfactory to the  Administrative Agent or the Administrative Borrower, as the case may be, (d) has become the   subject of a Bankruptcy Event or (e) has failed at any time to comply with the provisions of   Section 5.3 [Sharing of Payments by Lenders] with respect to purchasing participations from the   other Lenders, whereby such Lender’s share of any payment received, whether by setoff or   otherwise, is in excess of its Ratable Share of such payments due and payable to all of the   Lenders.                As used in this definition and in Section 2.10 [Defaulting Lenders], the term   “Bankruptcy Event” means, with respect to any Person, such Person or such Person’s direct or   indirect parent company becoming the subject of a bankruptcy or insolvency proceeding, or   having had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of   creditors or similar Person charged with the reorganization or liquidation of its business   appointed for it, or, in the good faith determination of the Administrative Agent, has taken any   action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such   proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of   any ownership interest, or the acquisition of any ownership interest, in such Person or such   Person’s direct or indirect parent company by an Official Body or instrumentality thereof if, and    {N0289348 2 }                      12    

 

     only if, such ownership interest does not result in or provide such Person with immunity from the   jurisdiction of courts within the United States or from the enforcement of judgments or writs of   attachment on its assets or permit such Person (or such Official Body or instrumentality) to   reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.                Delaware LLC shall mean any limited liability company organized or formed   under the laws of the State of Delaware.                Delaware LLC Division shall mean the statutory division of any Delaware LLC   into two or more Delaware LLCs pursuant to Section 18-217 of the Delaware Limited Liability   Company Act.                Depository shall have the meaning specified in Section 5.12 [Receipt and   Application of Payments].                Disposition shall have the meaning specified in Section 8.2.8 [Dispositions of   Assets or Subsidiaries].                DLH Equity Interests shall have the meaning specified in Section 6.1.2   [Subsidiaries and Owners; Investment Companies].                Dollar, Dollars, U.S. Dollars and the symbol $ shall mean lawful money of the   United States of America.                Domestic Subsidiary shall mean each Subsidiary of the Borrowers other than any   Foreign Subsidiaries.                Dormant Subsidiary shall mean any entity that is a Subsidiary of Holdings and   which does not conduct any operations and does not possess more than a de minimis amount of   assets. Dormant Subsidiaries include the following entities: TeamStaff Rx, Inc. and Teamstaff   Solutions, Inc.                Drawing Date shall have the meaning specified in Section 2.9.3 [Disbursements,   Reimbursement].                Early Opt-in Election means, if the then-current Benchmark is USD LIBOR, the          occurrence of:               (1)   a notification by the Administrative Agent to (or the request by the  Administrative Borrower to notify) each of the other parties that at least five currently outstanding  U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment  or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate  based upon SOFR) as a benchmark rate (and such credit facilities are identified in such notice and  are publicly available for review), and               (2)   the joint election by the Administrative Agent and the Administrative  Borrower to trigger a fallback from USD LIBOR and the provision by the Administrative  Agent of written notice of such election to the Lenders.                  {N0289348 2 }                      13    

 

                 Eligible Billed Accounts Receivable shall mean any and all Receivables arising   from Government Contracts or Commercial Contracts which (a) are payable in United States  Dollars by the Account Debtor; (b) with respect to “cost plus” or “time and materials” type  contracts, represent amounts due and owing for products actually delivered or services actually   performed or rendered by or on behalf of any Borrower or any Subsidiary of a Borrower to or for   the benefit of an Account Debtor pursuant to such contracts, and with respect to “fixed price”   type contracts, represent amounts due on a percentage of completion or milestone billing basis in   accordance with such contracts, which amounts are not subject to final delivery or acceptance by   the Account Debtor; (c) have been properly billed; (d) that are due and payable not more than   thirty (30) calendar days from the initial invoice; (e) on which the Account Debtor is not an   Affiliate or Subsidiary of any of the Loan Parties; (f) with respect to which no Loan Party has   knowledge or notice of any inability an Account Debtor to make full payment; (g) on which the   Account Debtor is not a creditor of any Loan Party; (h) are outstanding less than ninety (90)   calendar days from the date of original invoice; (i) arise in the ordinary course of a Loan Party’s   business; (j) are due, owing and not subject to any payment, contractual allowance, bad debt   reserve, defense, dispute, set-off, claim, counterclaim, escrow arrangement, prior assignment,  lien, security interest or encumbrance (other than in favor of the Administrative Agent); (k) are   not Ineligible Receivables; and (l) continue to be in conformity with the representations and   warranties made by the Borrowers in this Agreement.                Eligible Billed Commercial Accounts Receivable shall mean any and all Eligible   Billed Accounts Receivables arising from Commercial Contracts. For purposes of this definition,   all Government Subcontracts where the Receivables are funded by the Government into an   escrow or other segregated account for the benefit of any of the Loan Parties shall be deemed   Eligible Billed Government Accounts Receivable and other Government Subcontracts shall be   Eligible Billed Commercial Accounts Receivable; provided, that any escrow agreement or other   similar agreement with respect to such escrow or other segregated account shall be acceptable to   the Administrative Agent in its Permitted Discretion.                Eligible Billed Government Accounts Receivable shall mean any and all Eligible   Billed Accounts Receivables arising from Government Contracts and Government Subcontracts  where the Receivables are funded by the Government into an escrow or other segregated account  for the benefit of any of the Loan Parties; provided, that any escrow agreement or other similar   agreement with respect to such escrow or other segregated account shall be acceptable to the   Administrative Agent in its Permitted Discretion.                Eligible Unbilled Accounts Receivable shall mean any and all Receivables arising   from Government Contracts or Commercial Contracts which (a) are payable in United States   Dollars by the Account Debtor; (b) with respect to “cost plus” or “time and materials” type   contracts, represent amounts due and owing for products actually delivered or services actually   performed or rendered by or on behalf of any Borrower or any Subsidiary of a Borrower to or for   the benefit of an Account Debtor pursuant to such contracts, and with respect to “fixed price”  type contracts, represent amounts due on a percentage of completion or milestone billing basis in  accordance with such contracts, which amounts are not subject to final delivery or acceptance by  the Account Debtor; (c) have not been billed; (d) are billable within thirty (30) days from any  time of determination; (e) arise in the ordinary course of a Loan Party’s business; (f) are due,  owing and not subject to any defense, dispute, set-off, claim, counterclaim, escrow arrangement,    {N0289348 2 }                      14    

 

   prior assignment, lien, security interest or encumbrance (other than in favor of the  Administrative Agent); (g) represent retainages payable upon completion of a contract; (h)  represent costs incurred on cost reimbursable contracts that exceed provisional billing rates  established by the customer; and (i) are not Ineligible Receivables (without regard to clause (f) of  the definition of “Ineligible Receivables”).               Engagement Letter shall have the meaning specified in Section 10.9 [Fees].               Environmental Laws shall mean all applicable federal, state, local, tribal,  territorial and foreign Laws (including common law), constitutions, statutes, treaties, regulations,  rules, ordinances and codes and any consent decrees, settlement agreements, judgments, orders,  directives, policies or programs issued by or entered into with an Official Body pertaining or  relating to: (i) pollution or pollution control; (ii) protection of human health from exposure to  regulated substances; (iii) protection of the environment and/or natural resources; (iv) employee  safety in the workplace; (v) the presence, use, management, generation, manufacture, processing,  extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale, transport,  storage, collection, distribution, disposal or release or threat of release of regulated substances;  (vi) the presence of contamination; (vii) the protection of endangered or threatened species; and  (viii) the protection of environmentally sensitive areas.               Equity Interests shall mean, as to any Person, all shares, options, warrants, general  or limited partnership interests, membership interests or other equivalents (regardless of how  designated) of or in a corporation, partnership, limited liability company or equivalent entity  whether voting or nonvoting, including common stock, preferred stock or any other “equity  security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations  promulgated by the Securities and Exchange Commission under the Exchange Act).               Equity Purchase Agreement shall mean that certain Equity Purchase Agreement  dated as of September 30, 2020, by and among Holdings, IBA, Project Insight Holdings, Inc., the  owners of the seller and Anna L. Ryan, as the seller’s representative (including all amendments,  supplements, schedules and exhibits thereto).               ERISA shall mean the Employee Retirement Income Security Act of 1974, as the  same may be amended or supplemented from time to time, and any successor statute of similar  import, and the rules and regulations thereunder, as from time to time in effect.               ERISA Affiliate shall mean any trade or business (whether or not incorporated)  which is or was at any time under common control with any Loan Party and that is treated as a  single employer, or a member of controlled group, with a Loan Party under Section 414(b) or  414(c) of the Code, Title IV of ERISA or, solely for purposes of Section 412 of the Code, under  Section 414(m) or 414(o) of the Code.               ERISA Event shall mean (a) a reportable event (under Section 4043 of ERISA  and regulations thereunder) with respect to a Pension Plan other than any such event for which  the notice requirement is waived under the applicable regulations; (b) a withdrawal by any  Borrower or any ERISA Affiliate 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)    {N0289348 2 }                      15   

 

     or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA;   (c) a complete or partial withdrawal by any Borrower or any ERISA Affiliate from a   Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing   of a notice of intent to terminate, the treatment of a Pension Plan or Multiemployer Plan   amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of   proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or   condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the   appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (g) the   imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not   delinquent under Section 4007 of ERISA, upon any Borrower or any ERISA Affiliate.                ESOP means the Social & Scientific Systems, Inc. Employee Stock Ownership   Plan, as amended and restated from time to time                Event of Default shall mean any of the events described in Section 9.1 [Events of   Default] and referred to therein as an “Event of Default.”                Excess Cash Flow means, for any period, as determined on a consolidated basis   for Holdings and its Subsidiaries, an amount equal to Consolidated EBITDA, minus the sum,   without duplication, of: (a) Fixed Charges, (b) Cash Taxes, (c) Capital Expenditures, and (d)  each item representing a cash expenditure or expense to the extent added back in the  determination of Consolidated EBITDA.                Excluded Domestic Subsidiary shall have the meaning specified in   Section 8.1.14(ii).                Excluded Equity Issuance shall mean any issuance by Holdings of any shares of   Common Stock upon the (i) exercise or exchange of or conversion of any rights, warrants or   options to subscribe for or purchase shares of Common Stock or (ii) the exercise, exchange or   conversion of other securities that are exercisable or exchangeable for or convertible into shares   of Common Stock.                Excluded Taxes shall mean any of the following Taxes imposed on or with   respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (i)   Taxes imposed on or measured by net income (however denominated), franchise Taxes, and   branch profits Taxes, in each case, (a) 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 (b) that are Other Connection Taxes, (ii) in the case of a Lender, U.S. federal   withholding Taxes imposed on amounts payable to or for the account of such Lender with   respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date   on which (a) such Lender acquires such interest in such Loan or Commitment (other than   pursuant to an assignment request by any Borrower under Section 5.6.2 [Replacement of a   Lender]) or (b) such Lender changes its lending office, except in each case to the extent that,   pursuant to Section 5.9.7 [Status of Lenders], 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, (iii) Taxes attributable to such    {N0289348 2 }                      16    

 

   Recipient’s failure to comply with 5.9.7 [Status of Lenders], and (iv) any U.S. federal  withholding Taxes imposed under FATCA (except to the extent imposed due to the failure of  any Borrower to provide documentation or information to the IRS).                 Executive Order No. 13224 shall mean the Executive Order No. 13224 on  Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be,  renewed, extended, amended or replaced.               Expiration Date shall mean, with respect to the Revolving Credit Commitments,  and the Term Loan Commitments, September 30, 2025.               FAR shall have the meaning attributed to such term in Section 11.2 [Compliance]  of this Agreement.               “FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of  this Agreement (or any amended or successor version that is substantively comparable and not  materially more onerous to comply with), any current or future regulations or official  interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the  Code.  For purposes of this Agreement, “FATCA” shall include any amendments, regulations,  intergovernmental agreements or other guidance promulgated under to FATCA after the date of  this Agreement.               Federal Funds Effective Rate for any day shall mean the rate per annum (based on  a year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%)  announced by the Federal Reserve Bank of New York (or any successor) on such day as being  the weighted average of the rates on overnight federal funds transactions arranged by federal  funds brokers on the previous trading day, as computed and announced by such Federal Reserve  Bank (or any successor) in substantially the same manner as such Federal Reserve Bank  computes and announces the weighted average it refers to as the “Federal Funds Effective Rate”  as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does  not announce such rate on any day, the “Federal Funds Effective Rate” for such day shall be the  Federal Funds Effective Rate for the last day on which such rate was announced.               Federal Funds Open Rate for any day shall mean the rate per annum (based on a  year of 360 days and actual days elapsed) which is the daily federal funds open rate as quoted by  ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for  that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that  displays such rate), or as set forth on such other recognized electronic source used for the  purpose of displaying such rate as selected by the Administrative Agent (for purposes of this  definition, an “Alternate Source”) (or if such rate for such day does not appear on the Bloomberg  Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time,  for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any  Alternate Source, a comparable replacement rate determined by the Administrative Agent at such  time (which determination shall be conclusive absent manifest error); provided, however, that if  such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open”  rate on the immediately preceding Business Day.  If and when the Federal Funds Open Rate    {N0289348 2 }                      17   

 

   changes, the rate of interest hereunder will change automatically without notice to the  Borrowers, effective on the date of any such change.          Federal Reserve Bank of New York’s Website shall mean the website of the Federal  Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.               Fixed Charge Coverage Ratio shall mean the ratio of: (a) (i) Consolidated  EBITDA less (ii) Unfunded Capital Expenditures less (iii) Cash Taxes to (b) Fixed Charges, in  each case of the Borrowers and their Subsidiaries for such period determined and consolidated in  accordance with GAAP; but excluding for the purposes of clause (b) of this calculation,  Transaction Expenses.               Fixed Charges shall mean for any period of determination the sum of: (a)  scheduled principal payments on Total Funded Debt with respect to such period, (b) dividends  and/or distributions paid in cash during such period as permitted under this Agreement, (c)  interest expense paid in cash with respect to such period, in each case of the Borrowers and their  Subsidiaries for such period determined and consolidated in accordance with GAAP, and (d)  without duplication, any Restricted Payments solely to the extent they are within the scope of  Section 8.2.5(iii) or Section 8.2.5(v) during such period.               FNB shall mean First National Bank of Pennsylvania, its successors and assigns.               FNBCM shall mean F.N.B. Capital Markets, its successors and assigns.               Foreign Account Debtor shall mean any Account Debtor not organized, existing  and doing business primarily within the United States of America, unless such Account Debtor’s  obligations with respect to the subject Receivable are secured by a letter of credit, guaranty or  banker’s acceptance having terms and from such issuers and confirmation banks as are  acceptable to Administrative Agent, in its sole discretion.               Foreign Recipient shall mean a Lender that is not a U.S. Person.               Foreign Subsidiary shall mean each Subsidiary of the Borrowers incorporated or  organized, and doing business, in a jurisdiction other than the United States, any state thereof, or  the District of Columbia.               GAAP shall mean generally accepted accounting principles as are in effect from  time to time, subject to the provisions of Section 1.3 [Accounting Principles; Changes in GAAP],  and applied on a consistent basis both as to classification of items and amounts.               Government shall mean the United States government, any department,  instrumentality or any agency of the United States government.               Government Accounts shall mean all Accounts Receivable arising out of any  Government Contract or Government Subcontract.    {N0289348 2 }                      18   

 

               Government Contract shall mean a written contract between a Loan Party and the  Government.                Government Contract Assignments shall have the meaning attributed to such term  in Section 8.1.8 [Further Assurances].               Government Subcontract shall mean a written subcontract between a Loan Party  and a Person who is providing goods or services to the Government pursuant to a written  contract with the Government.               Guarantor shall mean each of the parties to this Agreement which is designated as  a “Guarantor” on the signature page hereof and each other Person which joins this Agreement as  a Guarantor after the date hereof; provided, however, that no Excluded Domestic Subsidiary or  Foreign Subsidiary shall be a Guarantor.               Guarantor Joinder shall mean a joinder by a Person as a Guarantor under the Loan  Documents in the form of Exhibit 1.1(G)(1).               Guaranty of any Person shall mean any obligation of such Person guaranteeing or  in effect guaranteeing any liability or obligation of any other Person in any manner, whether  directly or indirectly, including any agreement to indemnify or hold harmless any other Person,  any performance bond or other suretyship arrangement and any other form of assurance against  loss, except endorsement of negotiable or other instruments for deposit or collection in the  ordinary course of business), or any Lien on any assets of such Person securing any Indebtedness  or other obligation of any other Person, whether or not such Indebtedness or other obligation is  assumed by such Person (or any right, contingent or otherwise, of any holder of such  Indebtedness to obtain any such Lien).  The amount of any Guaranty 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 Guaranty 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 “Guaranty” as a verb has a corresponding meaning.               Guaranty Agreement shall mean the Continuing Agreement of Guaranty and  Suretyship in substantially the form of Exhibit 1.1(G)(2) executed and delivered by each of the  Guarantors to the Administrative Agent for the benefit of the Lenders.               Holdings shall have the meaning specified in the introductory paragraph.               IBA shall have the meaning specified in the introductory paragraph.               ICC shall have the meaning specified in Section 12.11.1 [Governing Law].               Indebtedness shall mean, as to any Person at any time, any and all indebtedness,  obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or  indirect, absolute or contingent, or joint or several) of such Person for or in respect of:   (i) borrowed money, (ii) amounts raised under or liabilities in respect of any note purchase or  acceptance credit facility, (iii) reimbursement obligations (contingent or otherwise) under any  letter of credit agreement, (iv) obligations under any currency swap agreement, interest rate   {N0289348 2 }                      19   

 

     swap, cap, collar or floor agreement or other interest rate management device, (v) any other   transaction (including forward sale or purchase agreements, capitalized leases and conditional   sales agreements) having the commercial effect of a borrowing of money entered into by such   Person to finance its operations or capital requirements (but not including trade payables and   accrued expenses incurred in the ordinary course of business which are not represented by a   promissory note or other evidence of indebtedness and which are not more than thirty (30) days   past due), or (vi) any Guaranty of Indebtedness for borrowed money.                Indemnified Taxes shall mean (i) 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 (ii) to the extent not otherwise described in the preceding clause (i),   Other Taxes.                Indemnitee shall have the meaning specified in Section 12.3.2 [Indemnification   by the Borrowers].                Ineligible Receivables shall mean Receivables which are (a) evidenced by a   promissory note, trade acceptance draft or other similar instrument; (b) owed or payable by an   Account Debtor pursuant to a Commercial Contract, if payment of fifty percent (50%) or more of   the aggregate balance due from such Account Debtor is outstanding for ninety (90) days or more   from the date of original invoice; (c) owed or payable by an Account Debtor pursuant to a single   Government Contract or a single Government Subcontract, if the payment of fifty percent (50%)   or more of the aggregate balance due from such Account Debtor under such single Government   Contract is outstanding for ninety (90) days or more from the date of original invoice; (d) owing  from any Account Debtor who is the subject of any (1) suit, lien, levy or judgment which would  affect or could reasonably be expected to affect the collectability of said account(s), or (2)  bankruptcy, insolvency or a similar process or proceeding; (e) owing from Foreign Account  Debtors; (f) all unbilled Receivables (except to the extent such unbilled Receivables are Eligible  Unbilled Receivables or otherwise approved by the Administrative Agent in its Permitted  Discretion); (g) bonded Receivables; (h) otherwise deemed ineligible by the Administrative  Agent in its Permitted Discretion; (i) violative of any applicable Laws, whether federal, state or  local, including, without limitation, usury Laws, the Federal Truth in Lending Act, the Federal  Consumer Credit Protection Act, the Fair Credit Billing Act and Regulation Z of the Board of  Governors of the Federal Reserve System; (j) owed or payable by an Account Debtor pursuant to  a Commercial Contract which by its terms, forbids or makes void or unenforceable the grant of  the security interest by the applicable Borrower or any Guarantor to the Administrative Agent in  and to the Receivables arising with respect thereto; (k) the excess of any amount owing with  respect to an Receivable which has amounts owing that are less than the amounts represented by  any Loan Party; or (l) the result of income which has not yet been earned or which constitute  unearned discount, service charges or deferred interest.                Information shall mean all information received from the Loan Parties or any of   their Subsidiaries relating to the Loan Parties or any of such Subsidiaries or any of their   respective businesses, other than any such information that is available to the Administrative   Agent, any Lender or the Issuing Lender on a non-confidential basis prior to disclosure by the   Loan Parties or any of their Subsidiaries.     {N0289348 2 }                      20    

 

               Insolvency Proceeding shall mean, with respect to any Person, (a) a case, action  or proceeding with respect to such Person (i) before any court or any other Official Body under  any bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or  (ii) for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator,  conservator (or similar official) of any Loan Party or otherwise relating to the liquidation,  dissolution, winding-up or relief of such Person, or (b) any general assignment for the benefit of  creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect  of such Person’s creditors generally or any substantial portion of its creditors; undertaken under  any Law.               Interest Period shall mean the period of time selected by the Administrative  Borrower in connection with (and to apply to) any election permitted hereunder by the  Administrative Borrower to have Revolving Credit Loans or Term Loans bear interest under the  LIBOR Rate Option.  Subject to the last sentence of this definition, such period shall be one,  two, three or six Months.  Such Interest Period shall commence on the effective date of such  Interest Rate Option, which shall be (i) the Borrowing Date if the Administrative Borrower is  requesting new Loans, or (ii) the date of renewal of or conversion to the LIBOR Rate Option if  the Administrative Borrower is renewing or converting to the LIBOR Rate Option applicable to  outstanding Loans.  Notwithstanding the second sentence hereof: (A) any Interest Period which  would otherwise end on a date which is not a Business Day shall be extended to the next  succeeding Business Day unless such Business Day falls in the next calendar month, in which  case such Interest Period shall end on the next preceding Business Day, and (B) the  Administrative Borrower shall not select, convert to or renew an Interest Period for any portion  of the Loans that would end after the Expiration Date.                 Interest Rate Hedge shall mean an interest rate exchange, collar, cap, swap,  adjustable strike cap, adjustable strike corridor or similar agreements entered into by the Loan  Parties or their Subsidiaries in order to provide protection to, or minimize the impact upon, any  Borrower, any Guarantor and/or their Subsidiaries of increasing floating rates of interest  applicable to Indebtedness.                Interest Rate Option shall mean any LIBOR Rate Option or Base Rate Option.               Investment means, as to any Person, any direct or indirect acquisition or  investment, loan or capital contribution by such Person, whether by means of (a) the purchase or  other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution  to, Guaranty or assumption of debt of, or purchase or other acquisition of any other debt or  interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series  of transactions) of assets of another Person that constitute a business unit or all or a substantial  part of the business of, such Person.  For purposes of covenant compliance, the amount of any  Investment shall be the amount actually invested, without adjustment for subsequent increases or  decreases in the value of such Investment.               IRS shall mean the United States Internal Revenue Service.               ISDA Definitions means the 2006 ISDA Definitions published by the International  Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented   {N0289348 2 }                      21   

 

   from time to time, or any successor definitional booklet for interest rate derivatives published  from time to time by the International Swaps and Derivatives Association, Inc. or such  successor thereto.               ISP98 shall have the meaning specified in Section 12.11.1 [Governing Law].               Issuing Lender shall mean FNB, in its individual capacity as issuer of Letters of  Credit hereunder, and any other Lender that Administrative Borrower, Administrative Agent and  such other Lender may agree may from time to time issue Letters of Credit hereunder.               Joint Lead Arrangers shall mean, together, F.N.B. Capital Markets and  Manufacturers and Traders Trust Company.               Joint Venture shall mean a corporation, partnership, limited liability company or  other entity in which any Person other than the Loan Parties and their Subsidiaries holds, directly  or indirectly, an equity interest.               Law shall mean any law (including common law), constitution, statute, treaty,  regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,  judgment, authorization or approval, lien or award by or settlement agreement with any Official  Body.               Lender Provided Interest Rate Hedge shall mean an Interest Rate Hedge which is  provided by any Lender or its Affiliate and with respect to which the Administrative Agent  confirms: (i) is documented in a standard International Swaps and Derivatives Association  Agreement, and (ii) provides for the method of calculating the reimbursable amount of the  provider’s credit exposure in a reasonable and customary manner.               Lenders shall mean the financial institutions named on Schedule 1.1(B) and their  respective successors and assigns as permitted hereunder, each of which is referred to herein as a  Lender.  For the purpose of any Loan Document which provides for the granting of a security  interest or other Lien to the Lenders or to the Administrative Agent for the benefit of the Lenders  as security for the Obligations, “Lenders” shall include any Affiliate of a Lender to which such  Obligation is owed.               Letter of Credit shall have the meaning specified in Section 2.9.1 [Issuance of  Letters of Credit].               Letter of Credit Borrowing shall have the meaning specified in Section 2.9.3  [Disbursements, Reimbursement].               Letter of Credit Fee shall have the meaning specified in Section 2.9.2 [Letter of  Credit Fees].               Letter of Credit Obligation shall mean, as of any date of determination, the  aggregate amount available to be drawn under all outstanding Letters of Credit on such date (if  any Letter of Credit shall increase in amount automatically in the future, such aggregate amount    {N0289348 2 }                      22   

 

     available to be drawn shall currently give effect to any such future increase) plus the aggregate   Reimbursement Obligations and Letter of Credit Borrowings on such date.                 Letter of Credit Sublimit shall have the meaning specified in Section 2.9.1   [Issuance of Letters of Credit].                LIBOR Rate shall mean, with respect to the Loans comprising any Borrowing   Tranche to which the LIBOR Rate Option applies for any Interest Period, that rate per annum   which is equal to the quotient determined as follows:                (a) USD LIBOR, divided by               (b) the number equal to 1.00 minus the LIBOR Reserve Percentage at the time of                 determination.                LIBOR Rate Option shall mean the option of the Borrowers to have Loans bear   interest at the rate and under the terms set forth in Section 4.1.1(ii) [Revolving Credit LIBOR   Rate Option] or Section 4.1.2(ii) [Term Loan LIBOR Rate Option], as applicable, LIBOR   Reserve Percentage shall mean as of any day the maximum percentage in effect on such day, as   prescribed by the Board of Governors of the Federal Reserve System (or any successor) for   determining the reserve requirements (including supplemental, marginal and emergency reserve   requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency   Liabilities”).                LIBOR Unavailability Notice shall have the meaning specified in Section 4.4.1   [LIBOR Unavailability].                Lien shall mean any mortgage, deed of trust, pledge, lien, security interest, charge   or other encumbrance or security arrangement of any nature whatsoever, whether voluntarily or   involuntarily given, including any conditional sale or title retention arrangement, and any   assignment, deposit arrangement or lease intended as, or having the effect of, security and any   filed financing statement or other notice of any of the foregoing (whether or not a lien or other   encumbrance is created or exists at the time of the filing).                Loan Documents shall mean this Agreement, the Administrative Agent’s Letter,   the Collateral Assignment, the Guaranty Agreement, the Amended and Restated Notes, the   Amended and Restated Patent, Trademark and Copyright  Security Agreement, the Amended and   Restated Pledge Agreement, the Amended and Restated Security Agreement and any other  instruments, certificates or documents delivered in connection herewith or therewith.                 Loan Parties shall mean the Borrowers and the Guarantors.                Loan Request shall have the meaning specified in Section 2.5 [Revolving Credit   Loan Requests; Swing Loan Requests].                Loans shall mean collectively, and Loan shall mean separately, all Revolving   Credit Loans, Swing Loans and the Term Loans or any Revolving Credit Loan, Swing Loan or   the Term Loan.    {N0289348 2 }                      23    

 

               Lockbox shall have the meaning specified in Section 5.12 [Receipt and  Application of Payments].               Mandatory Prepayment of Excess Cash Flow shall have the meaning assigned to  that term in Section 5.7 [Mandatory Prepayments].               Mandatory Prepayment of Equity shall have the meaning assigned to that term in  Section 5.7 [Mandatory Prepayments].               Mandatory Prepayment of Indebtedness shall have the meaning assigned to that  term in Section 5.7 [Mandatory Prepayments].               Material Adverse Change shall mean any set of circumstances or events which  (a) has or could reasonably be expected to have any material adverse effect whatsoever upon the  validity or enforceability of this Agreement or any other Loan Document, (b) is or could  reasonably be expected to be material and adverse to the business, properties, assets, financial  condition, or results of operations or prospects of the Loan Parties taken as a whole, (c) impairs  materially or could reasonably be expected to impair materially the ability of the Loan Parties  taken as a whole to duly and punctually pay or perform any of the Obligations, or (d) impairs  materially or could reasonably be expected to impair materially the ability of the Administrative  Agent or any of the Lenders, to the extent permitted, to enforce their legal remedies pursuant to  this Agreement or any other Loan Document.               Material Contract and Material Contracts shall mean, as of any date of  determination and individually or collectively as the context may require, (i) any and all  Government Contracts and (ii) any and all contracts or agreements (other than Government  Contracts) to which a Loan Party is a party and pursuant to which a Loan Party is (a) entitled to  receive payments in excess of $10,000,000, in the aggregate, per annum, or (b) obligated to make  payments or have any other obligation or liability thereunder (direct or contingent) in excess of  $10,000,000 in the aggregate, per annum.               Maximum Borrowing Base  shall mean an amount equal to the lesser of (i)  $25,000,000 or (ii) the Borrowing Base.                 Month, with respect to an Interest Period under the LIBOR Rate Option, shall  mean the interval between the days in consecutive calendar months numerically corresponding to  the first day of such Interest Period.  If any LIBOR Rate Interest Period begins on a day of a  calendar month for which there is no numerically corresponding day in the month in which such  Interest Period is to end, the final month of such Interest Period shall be deemed to end on the  last Business Day of such final month.               Moody’s shall mean Moody’s Investors Service, Inc. and any successor thereto.               Multiemployer Plan shall mean any employee benefit plan which is a  “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA and to which any  Loan Party or any ERISA Affiliate is then making or accruing an obligation to make  contributions or, within the preceding five (5) plan years, has made or had an obligation to make  such contributions.   {N0289348 2 }                      24   

 

                 New Contract shall have the meaning specified in Section 5.12 [Receipt and   Application of Payments].                Next Available Term SOFR shall mean, at any time, for any Interest Period, Term   SOFR for the longest tenor that can be determined by the Administrative Agent that is shorter   than the applicable Corresponding Tenor                Non-Consenting Lender shall have the meaning specified in Section 12.1   [Modifications, Amendments or Waivers].                Obligation and Obligations shall mean any and all obligations or liabilities of any   of the Loan Parties, howsoever created, arising or evidenced, whether direct or indirect, absolute   or contingent, now or hereafter existing, or due or to become due, under or in connection with   this Agreement, the Amended and Restated Notes, the Letters of Credit, the Administrative  Agent’s Letter or any other Loan Document whether to the Administrative Agent, any of the  Lenders or their Affiliates or other persons provided for under such Loan Documents, including  without limitation: (i) the outstanding principal and accrued interest (including interest accruing  after a petition for relief under the federal bankruptcy laws has been filed, whether or not  allowed) in respect of any Loans to the Borrowers; (ii) all fees owing to the Administrative  Agent and the Lenders; (iii) all reimbursement, compensation and indemnification obligations  under this Agreement or any other Loan Document; and (iv) any amounts owing to a Lender  pursuant to a Lender Provided Interest Rate Hedge or Other Lender Provided Financial Service   Product.                Official Body shall mean the government of the United States of America or any   other nation, or of any political subdivision thereof, whether state or local, and any agency,   authority, instrumentality, regulatory body, 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 any group or body charged with setting financial accounting or  regulatory capital rules or standards (including the Financial Accounting Standards Board, the  Bank for International Settlements or the Basel Committee on Banking Supervision or any  successor or similar authority to any of the foregoing).                Order shall have the meaning specified in Section 2.9.9 [Liability for Acts and   Omissions].                Other Connection Taxes shall mean, with respect to any Recipient, Taxes   imposed as a result of a present or former connection between such Recipient (or an agent or   affiliate thereof) and the jurisdiction imposing such Tax (other than connections arising solely   from such Recipient having executed, delivered, become a party to, performed its obligations   under, received payments under, received or perfected a security interest under, engaged in any   other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in   any Loan or Loan Document).                  Other Lender Provided Financial Service Product shall mean agreements or other   arrangements under which any Lender or Affiliate of a Lender provides any of the following     {N0289348 2 }                      25    

 

     products or services to any of the Loan Parties: (a) credit cards, (b) credit card processing   services, (c) debit cards, (d) purchase cards, (e) ACH transactions, (f) cash management,   including controlled disbursement, accounts or services, or (g) foreign currency exchange.                Other Taxes shall mean all present or future stamp, court or documentary,   intangible, recording, filing or similar Taxes that arise from any payment made under, from the   execution, delivery, performance, enforcement or registration of, from the receipt or perfection   of a security interest under, or otherwise with respect to, any Loan Document, except any such   Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an   assignment made pursuant to Section 5.6.2 [Replacement of a Lender]).                  Participant has the meaning specified in Section 12.8.4 [Participations].                Participant Register shall have the meaning specified in Section 12.8.4   [Participations].                Participation Advance shall have the meaning specified in Section 2.9.3   [Disbursements, Reimbursement].                Payment Date shall mean the first day of each calendar quarter after the date   hereof and on the Expiration Date or upon acceleration of the Amended and Restated Notes.                Payment In Full and Paid In Full shall mean the indefeasible payment in full in   cash of the Loans and other Obligations hereunder (other than contingent obligations that survive   the termination of the Loan Documents as to which no claim has been asserted), termination of   the Commitments and expiration or termination of all Letters of Credit (unless the Letter of   Credit Obligations related thereto have been cash collateralized or back-stopped by a letter of  credit reasonably satisfactory to the Administrative Agent).                 PBGC shall mean the Pension Benefit Guaranty Corporation established pursuant   to Subtitle A of Title IV of ERISA or any successor.                Pension Plan shall mean any “employee pension benefit plan” (as such term is   defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of   ERISA or Section 412 of the Code and is, or at any time within the past five (5) years was,   sponsored or maintained by any Loan Party or any ERISA Affiliate or to which any Loan Party   or any ERISA Affiliate contributes, has an obligation to contribute, or at any times during the   immediately preceding five plan years contributed or had an obligation to contribute.                Permitted Discretion shall mean a determination made in good faith and in the   exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.                Permitted Investments shall mean:                (i)   direct obligations of the United States of America or any agency or   instrumentality thereof or obligations backed by the full faith and credit of the United States of   America maturing in twelve (12) months or less from the date of acquisition;     {N0289348 2 }                      26    

 

               (ii)  commercial paper maturing in 180 days or less rated not lower than A-1,  by Standard & Poor’s or P-1 by Moody’s Investors Service, Inc. on the date of acquisition;               (iii) demand deposits, time deposits or certificates of deposit maturing within  one year in commercial banks whose obligations are rated A-1, A or the equivalent or better by  Standard & Poor’s on the date of acquisition;               (iv)  Cash Equivalents not otherwise described in clauses (i)-(iii) above;               (v)   money market or mutual funds whose investments are limited to those  types of investments described in clauses (i)-(v) above; and               (vi)  investments made under cash management agreements with any Lenders.               Permitted Joint Venture shall mean a Joint Venture (a) (i) in which the Loan  Parties or their Subsidiaries hold, directly or indirectly, more than 50% of the equity interests of  such Joint Venture (other than HealthRev LLC, in which Solutions holds not less than 49% of  such Joint Venture), (ii) the Joint Venture is unpopulated, and (iii) the aggregate liability of the  Loan Parties and/or their Subsidiaries with respect to, and in connection with, any such Joint  Venture (together with all of such other Joint Ventures), including for capital contributions, at  any time outstanding does not exceed $1,000,000; or (b) that is otherwise approved by the  Administrative Agent in its Permitted Discretion.               Permitted Liens shall mean:               (i)   Liens for taxes, assessments, or similar charges, incurred in the ordinary  course of business and which are not yet due and payable;               (ii)  Pledges or deposits made in the ordinary course of business to secure  payment of workmen’s compensation, or to participate in any fund in connection with  workmen’s compensation, unemployment insurance, old-age pensions or other social security  programs;               (iii) Liens of mechanics, materialmen, warehousemen, carriers, or other like  Liens, securing obligations incurred in the ordinary course of business that are not yet due and  payable and Liens of landlords securing obligations to pay lease payments that are not yet due  and payable or in default;               (iv)  Pledges or deposits made in the ordinary course of business to secure  performance of bids, tenders, contracts (other than for the repayment of borrowed money) or  leases, not in excess of the aggregate amount due thereunder, or to secure statutory obligations,  or surety, appeal, indemnity, performance or other similar bonds required in the ordinary course  of business;               (v)   Encumbrances consisting of zoning restrictions, easements or other  restrictions on the use of real property, none of which materially impairs the use of such property  or the value thereof, and none of which is violated in any material respect by existing or  proposed structures or land use;   {N0289348 2 }                      27   

 

               (vi)  Liens, security interests and mortgages in favor of the Administrative  Agent for the benefit of the Lenders and their Affiliates securing the Obligations (including  Lender Provided Interest Rate Hedges and Other Lender Provided Financial Service Products);               (vii) Liens on property leased by any Loan Party or Subsidiary of a Loan Party  under operating leases securing obligations of such Loan Party or Subsidiary to the lessor under  such leases;               (viii) Any Lien existing on the date of this Agreement and described on  Schedule 1.1(P), provided that the principal amount secured thereby is not hereafter increased,  and no additional assets become subject to such Lien;               (ix)  Purchase Money Security Interests and Liens on property leased by any  Loan Party or Subsidiary of a Loan Party under capitalized leases; provided that (i) the aggregate  amount of loans and deferred payments secured by such Purchase Money Security Interests and  capitalized leases at any time outstanding shall not exceed $500,000 in the aggregate (excluding  for the purpose of this computation any loans or deferred payments secured by Liens described  on Schedule 1.1(P)), and (ii) such Liens shall be limited to the assets acquired with such  purchase money financing or leased pursuant to such capitalized lease; and                (x)   The following, (A) if the validity or amount thereof is being contested in  good faith by appropriate and lawful proceedings diligently conducted so long as levy and  execution thereon have been stayed and continue to be stayed or (B) if a final judgment is  entered and such judgment is discharged within thirty (30) days of entry, and in either case they  do not affect the Collateral or, in the aggregate, materially impair the ability of any Loan Party to  perform its Obligations hereunder or under the other Loan Documents:                     (1)   Claims or Liens for taxes, assessments or charges due and payable  and subject to interest or penalty; provided that the applicable Loan Party maintains such  reserves or other appropriate provisions as shall be required by GAAP and pays all such taxes,  assessments or charges forthwith upon the commencement of proceedings to foreclose any such  Lien;                     (2)   Claims, Liens or encumbrances upon, and defects of title to, real or  personal property other than the Collateral, including any attachment of personal or real property  or other legal process prior to adjudication of a dispute on the merits;                     (3)   Claims or Liens of mechanics, materialmen, warehousemen,  carriers, or other statutory nonconsensual Liens; or                     (4)   Liens resulting from final judgments or orders to the extent not  constituting an Event of Default under Section 9.1.7 [Final Judgments or Orders].               Person shall mean any individual, corporation, partnership, limited liability  company, association, joint-stock company, trust, unincorporated organization, joint venture,  government or political subdivision or agency thereof, or any other entity.    {N0289348 2 }                      28   

 

                 Potential Default shall mean any event or condition which with notice or passage   of time, or both, would constitute an Event of Default.                Prime Rate shall mean the interest rate per annum announced from time to time   by the Administrative Agent at its Principal Office as its then prime rate, which rate may not be   the lowest or most favorable rate then being charged commercial borrowers or others by the   Administrative Agent.  Any change in the Prime Rate shall take effect at the opening of business   on the day such change is announced.                Principal Office shall mean the main banking office of the Administrative Agent   in Pittsburgh, Pennsylvania.                Prior Security Interest shall mean a valid and enforceable perfected first-priority   security interest under the Uniform Commercial Code in the Collateral which is subject only to   statutory Liens for taxes not yet due and payable or Purchase Money Security Interests.                Purchase Money Security Interest shall mean Liens upon tangible personal   property securing loans to any Loan Party or Subsidiary of a Loan Party or deferred payments by   such Loan Party or Subsidiary for the purchase of such tangible personal property.                Ratable Share shall mean                (i)   with respect to a Lender’s obligation to make Revolving Credit Loans,   participate in Letters of Credit and other Letter of Credit Obligations, and receive payments,   interest, and fees related thereto, the proportion that such Lender’s Revolving Credit   Commitment bears to the Revolving Credit Commitments of all of the Lenders, provided,   however, that if the Revolving Credit Commitments have terminated or expired, the Ratable   Shares for purposes of this clause shall be determined based upon the Revolving Credit   Commitments most recently in effect, giving effect to any assignments.                (ii)  with respect to a Lender’s obligation to make Term Loans and receive   payments, interest, and fees related thereto, the proportion that such Lender’s Term Loans bears   to the Term Loans of all of the Lenders.               (iii) with respect to all other matters as to a particular Lender, the percentage   obtained by dividing (i) such Lender’s Revolving Credit Commitment plus Term Loan, by (ii)   the sum of the aggregate amount of the Revolving Credit Commitments plus Term Loans of all   Lenders; provided, however, that if the Revolving Credit Commitments have terminated or   expired, the computation in this clause shall be determined based upon the Revolving Credit   Commitments most recently in effect, giving effect to any assignments, and not on the current   amount of the Revolving Credit Commitments and provided further in the case of Section 2.10   [Defaulting Lenders] when a Defaulting Lender shall exist, “Ratable Share” shall mean the   percentage of the aggregate Commitments (disregarding any Defaulting Lender’s Commitment)  represented by such Lender’s Commitment.                Receivable shall mean in addition to the definition of account as contained in the   Uniform Commercial Code (a) each of the Loan Parties’ present and future accounts, contract  rights, receivables, promissory notes and other instruments, contracts, chattel paper (including  tangible and electronic chattel paper), tax refunds, general intangibles and all rights to receive the    {N0289348 2 }                      29    

 

   payment of money or other consideration under present or future contracts including, all of the  Loan Parties’ rights under each Commercial Contract, Government Contract and Government  Subcontract and all related Government Accounts now owned or hereafter acquired by any of the  Loan Parties; (b) all present and future cash of each of the Loan Parties; (c) all present and future  judgments, orders, awards and decrees in favor of each of the Loan Parties and causes of action in  favor of each of each of the Loan Parties; (d) all present and future contingent and non-contingent  rights of each of the Loan Parties to the payment of money for any reason whatsoever, whether  arising in contract, tort or otherwise including, without limitation, all rights to receive payments  under presently existing or hereafter acquired or created letters of credit; (e) all present and future  claims, rights of indemnification and other rights of each of the Loan Parties under or in  connection with any contracts or agreements to which the any of the Loan Parties is or becomes a  party or third party beneficiary; (f) all goods previously or hereafter returned, repossessed or  stopped in transit, the sale, lease or other disposition of which contributed to the creation of any  account, instrument or chattel paper of any of the Loan Parties; (g) all present and future rights of  each of the Loan Parties as an unpaid seller of goods, including rights of stoppage in transit,  detinue and reclamation; (h) all rights which any of the Loan Parties may now or at any time  hereafter have, by law or agreement, against any Account Debtor or other obligor of any of the  Loan Parties, and all rights, liens and security interests which the each of the Loan Parties may  now or at any time hereafter have, by law or agreement, against any property of any Account  Debtor or other obligor of any of the Loan Parties; (i) all invoices and shipping documents; and (j)  all present and future interests and rights of each of the Loan Parties, including rights to the  payment of money, under or in connection with all present and future leases and subleases of real  or personal property to which any of the Loan Parties is a party, as lessor, sublessor, lessee or  sublessee.               Recipient shall mean (i) the Administrative Agent, (ii) any Lender and (iii) the  Issuing Lender, as applicable.               Recovery Event shall mean any settlement of or payment in respect of any  property or casualty insurance claim or any condemnation proceeding or power of eminent  domain relating to any asset of the Loan Parties.               Reference Time with respect to any setting of the then-current Benchmark   means (1) if such Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is   two London banking days preceding the date of such setting, and (2) if such Benchmark is   not USD LIBOR, the time determined by the Administrative Agent in its reasonable   discretion.                            Reimbursement Obligation shall have the meaning specified in Section 2.9.3  [Disbursements, Reimbursement].               Related Parties shall mean, with respect to any Person, such Person’s Affiliates  and the partners, directors, officers, employees, agents and advisors of such Person and of such  Person’s Affiliates.               Relevant Governmental Body means the Board of Governors of the Federal  Reserve System or the Federal Reserve Bank of New York, or a committee officially   {N0289348 2 }                      30   

 

     endorsed or convened by the Board of Governors of the Federal Reserve System or the   Federal Reserve Bank of New York, or any successor thereto.                              Relief Proceeding shall mean any proceeding seeking a decree or order for relief   in respect of any Loan Party or Subsidiary of a Loan Party in a voluntary or involuntary case   under any applicable bankruptcy, insolvency, reorganization or other similar law now or   hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee,   sequestrator, conservator (or similar official) of any Loan Party or Subsidiary of a Loan Party for   any substantial part of its property, or for the winding-up or liquidation of its affairs, or an   assignment for the benefit of its creditors.                Reportable Compliance Event means that any Covered Entity becomes a   Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or receives an   inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism   Law or any predicate crime to any Anti-Terrorism Law, or self-discovers facts or circumstances  implicating any aspect of its operations with the actual or possible violation of any Anti- Terrorism Law.                Required Lenders shall mean                (A)   If there exists fewer than three (3) Lenders, all Lenders (other than any   Defaulting Lender), and                (B)   If there exist three (3) or more Lenders, Lenders (other than any   Defaulting Lender) having more than 50% of the sum of (a) the aggregate amount of the   Revolving Credit Commitments of the Lenders (excluding any Defaulting Lender) or, after the   termination of the Revolving Credit Commitments, the outstanding Revolving Credit Loans and   Ratable Share of Letter of Credit Obligations of the Lenders (excluding any Defaulting Lender),   and (b) the aggregate outstanding amount of any Term Loans.                Required Share shall have the meaning assigned to such term in Section 5.11   [Settlement Date Procedures].                Restricted Payments shall have the meaning specified in Section 8.2.5 [Dividends   and Related Distributions].                 Revolving Credit Commitment shall mean, as to any Lender at any time, the   amount initially set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount   of Commitment for Revolving Credit Loans,” as such Commitment is thereafter assigned or   modified and Revolving Credit Commitments shall mean the aggregate Revolving Credit   Commitments of all of the Lenders.                Revolving Credit Loans shall mean collectively and Revolving Credit Loan shall   mean separately all Revolving Credit Loans or any Revolving Credit Loan made by the Lenders   or one of the Lenders to the Borrowers pursuant to Section 2.1 [Revolving Credit Commitments]   or 2.9.3 [Disbursements, Reimbursement].     {N0289348 2 }                      31    

 

               Revolving Facility Usage shall mean at any time the sum of the outstanding  Revolving Credit Loans, the outstanding Swing Loans, and the Letter of Credit Obligations.               S&P means Standard & Poor’s Financial Services LLC, a subsidiary of The  McGraw-Hill Companies, Inc., and any successor thereto.               Sanctioned Country means a country subject to a sanctions program maintained  by any Compliance Authority.               Sanctioned Person means any individual person, group, regime, entity or thing  listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred  person or entity, or subject to any limitations or prohibitions (including the blocking of property  or rejection of transactions), under any order or directive of any Compliance Authority or  otherwise subject to, or specially designated under, any sanctions program maintained by any  Compliance Authority.               Settlement Date shall mean the Business Day on which the Administrative Agent  elects to effect settlement pursuant Section 5.11 [Settlement Date Procedures].               SOFR means, with respect to any Business Day, a rate per annum equal to the  secured overnight financing rate for such Business Day published by the SOFR Administrator on  the SOFR Administrator’s Website on the immediately succeeding Business Day.              SOFR Administrator means the Federal Reserve Bank of New York (or a  successor administrator of the secured overnight financing rate).              SOFR Administrator’s Website means the website of the Federal Reserve Bank of  New York, currently at http://www.newyorkfed.org, or any successor source for the secured  overnight financing rate identified as such by the SOFR Administrator from time to time.              Solutions shall have the meaning specified in the introductory paragraph.              Solvent shall mean, with respect to any Person on any date of determination,  taking into account any right of reimbursement, contribution or similar right available to such  Person from other Persons, that on such date (i) the fair value of the property of such Person is  greater than the total amount of liabilities, including, without limitation, contingent liabilities, of  such Person, (ii) the present fair saleable value of the assets of such Person is not less than the  amount that will be required to pay the probable liability of such Person on its debts as they  become absolute and matured, (iii) such Person is able to realize upon its assets and pay its debts  and other liabilities, contingent obligations and other commitments as they mature in the normal  course of business, (iv) such Person does not intend to, and does not believe that it will, incur  debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and  (v) such Person is not engaged in business or a transaction, and is not about to engage in business  or a transaction, for which such Person’s property would constitute unreasonably small capital  after giving due consideration to the prevailing practice in the industry in which such Person is  engaged.  In computing the amount of contingent liabilities at any time, it is intended that such  liabilities will be computed at the amount which, in light of all the facts and circumstances  existing at such time, represents the amount that can reasonably be expected to become an actual  or matured liability.    {N0289348 2 }                      32   

 

                 Standard & Poor’s shall mean Standard & Poor’s Ratings Services, a division of   The McGraw-Hill Companies, Inc.                Standby Letter of Credit shall mean a Letter of Credit issued to support   obligations of one or more of the Loan Parties, contingent or otherwise, which finance the   working capital and business needs of the Loan Parties incurred in the ordinary course of   business.                Statements shall have the meaning specified in Section 6.1.6(i) [Historical   Statements].                Subsidiary of any Person at any time shall mean any corporation, trust,   partnership, limited liability company or other business entity (i) of which more than 50% of the   outstanding voting securities or other interests normally entitled to vote for the election of one or   more directors or trustees (regardless of any contingency which does or may suspend or dilute   the voting rights) is at such time owned directly or indirectly by such Person or one or more of   such Person’s Subsidiaries, or (ii) which is controlled or capable of being controlled by such   Person or one or more of such Person’s Subsidiaries. For the purposes of this Agreement, the  term “Subsidiary” shall not include any “Dormant Subsidiary”.                Subsidiary Borrowers shall mean, collectively, Solutions, Danya, Systems, and   IBA.                Swing Loan Commitment shall mean FNB’s commitment to make Swing Loans   to the Borrowers pursuant to Section 2.1.2 [Swing Loan Commitment] hereof in an aggregate   principal amount up to $5,000,000.                Swing Loan Lender shall mean FNB, in its capacity as a lender of the Swing   Loans.                Swing Loan Note shall mean the Swing Loan Note of the Borrowers in the form   of Exhibit 1.1(N)(2) evidencing the Swing Loans, together with all amendments, extensions,   renewals, replacements, refinancings or refundings thereof in whole or in part.                Swing Loan Request shall mean a request for Swing Loans made in accordance   with Section 2.5.2 [Swing Loan Requests] hereof.    Swing Loans shall mean collectively and Swing Loan shall mean separately all Swing Loans or   any Swing Loan made by FNB to the Borrowers pursuant to Section 2.1.2 [Swing Loan   Commitment] hereof.                Syndication Letter shall have the meaning specified in Section 10.9 [Fees].                Systems shall have the meaning specified in the introductory paragraph.                Tax Group shall have the meaning specified in Section 8.2.5 [Dividends and   Related Distributions].     {N0289348 2 }                      33    

 

               Taxes shall mean 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.               Term Loan  shall have the meaning specified in Section 3.1 [Term Loan  Commitments]; Term Loans shall mean collectively all of the Term Loans.               Term Loan Commitment shall mean, as to any Lender at any time, the amount  initially set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount of  Commitment for Term Loans,” as such Commitment is thereafter assigned or modified and Term  Loan Commitments shall mean the aggregate Term Loan Commitments of all of the Lenders.               Term SOFR means, for the applicable Corresponding Tenor as of the applicable  Reference Time, the forward-looking term rate based on SOFR that has been selected or  recommended by the Relevant Governmental Body.                            Total Funded Debt shall mean, as of any date of determination, without  duplication, the sum of all Indebtedness representing borrowed money, including both the  current and long-term portion thereof, capitalized lease obligations, reimbursement obligations  under Letters of Credit, and guaranty obligations in respect of any of the foregoing, in each case  determined and consolidated for the Borrowers and their subsidiaries in accordance with GAAP.               Total Leverage Ratio shall mean, as of any date of determination, the ratio of (A)  Total Funded Debt of the Borrowers as of the end of the most recent fiscal quarter or (if such  date of determination is a fiscal quarter end) the fiscal quarter then ending to (B) Consolidated  EBITDA for the most recently ended four fiscal quarters or (if such date of determination is a  fiscal quarter end) the four fiscal quarters then ending.               Transaction Documents shall mean the Loan Documents and the Acquisition  Documents.               Transaction Expenses shall mean any fees or expenses actually incurred by  Holdings or any of the other Borrowers, recognized in accordance with U.S. GAAP, in  connection with the transactions contemplated by the Transaction Documents in an aggregate  amount up to $3,200,000.               Transition Date shall have the meaning specified in Section 5.12 [Receipt and  Application of Payments].               UCP shall have the meaning specified in Section 12.11.1 [Governing Law].               Unadjusted Benchmark Replacement means the applicable Benchmark  Replacement excluding the related Benchmark Replacement Adjustment.              USD LIBOR   means the offered rate for U.S. Dollar deposits which the  Intercontinental Exchange Benchmark Administration Ltd. (“ICE,” or the successor thereto if  ICE is no longer making a London Interbank Offered Rate available) fixes, and as displayed in    {N0289348 2 }                      34   

 

     the Bloomberg Financial Market System, as its LIBOR rate for U.S. Dollars for a period having   a borrowing date and a maturity comparable to such Interest Period, on a day which is two (2)   London Banking Days prior to the beginning of each Interest Period. If such rate is not available   on Bloomberg, the rate for such date of determination will be determined as if the parties had   specified “USD-LIBOR-Reference Banks” as the applicable floating rate.  “USD-LIBOR-  Reference Banks” shall mean that the rate for any date of determination (each date, a “Reset   Date”) that will be determined on the basis of the rates at which deposits in U.S. Dollars are   offered by the Reference Banks at approximately 11:00 a.m., London time, on the day that is two   London Banking Days preceding that Reset Date to prime banks in the London interbank market   for a period commencing on that Reset Date and having a maturity comparable to the applicable   Interest Period.  The Administrative Agent will request the principal London office of each of the   Reference Banks to provide a quotation of its rate.  If at least two such quotations are provided as   requested, the rate for that Reset Date will be the arithmetic mean of the quotations.  If fewer   than two quotations are provided as requested, the rate for that Reset Date will be the arithmetic   mean of the rates quoted by major banks in New York City, selected by the Administrative   Agent, at approximately 11:00 a.m., New York City time, on that Reset Date for loans in U.S.   Dollars to leading European banks for a period commencing on that Reset Date and having a   maturity comparable to the applicable Interest Period.  “Reference Banks” means four major   banks in the London interbank market.  Notwithstanding the foregoing, if the LIBOR Rate   applicable to an Advance (other than an Advance which is subject to an Interest Rate Contract) is   less than .50% (50 basis points), the LIBOR Rate shall be deemed to be .50% (50 basis points).    A “London Banking Day” means a day on which dealings are carried on in the London interbank   market.                         Unfunded Capital Expenditures for any period of determination shall mean   Capital Expenditures that were not specifically funded by Indebtedness (for the purposes of this   definition only, Revolving Credit Loans are not considered Indebtedness) of the Borrowers and  their Subsidiaries, in each case determined and consolidated for the Borrowers and their  Subsidiaries in accordance with GAAP.                Unused Line Fee shall have the meaning specified in Section 2.3 [Unused Line   Fees].                Upfront Fee shall have the meaning specified in Section 10.9 [Fees].                USA Patriot Act shall mean the Uniting and Strengthening America by Providing   Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-  56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.                U.S. Person shall mean any Person that is a “United States Person” as defined in   Section 7701(a)(30) of the Code.                U.S. Tax Compliance Certificate shall have the meaning specified in Section 5.9.7   [Status of Lenders].     {N0289348 2 }                      35    

 

                 Withholding Agent shall mean any Loan Party and the Administrative Agent,   each in their capacity as withholding agent under applicable Law.          1.2   Construction.  Unless the context of this Agreement otherwise clearly requires,   the following rules of construction shall apply to this Agreement and each of the other Loan   Documents: (i) references to the plural include the singular, the plural, the part and the whole and   the words “include,” “includes” and “including” shall be deemed to be followed by the phrase   “without limitation”; (ii) the words “hereof,” “herein,” “hereunder,” “hereto” and similar terms   in this Agreement or any other Loan Document refer to this Agreement or such other Loan   Document as a whole; (iii) article, section, subsection, clause, schedule and exhibit references   are to this Agreement or other Loan Document, as the case may be, unless otherwise specified;   (iv) reference to any Person includes such Person’s successors and assigns; (v) reference to any   agreement, including this Agreement and any other Loan Document together with the schedules   and exhibits hereto or thereto, document or instrument means such agreement, document or   instrument as amended, modified, replaced, substituted for, superseded or restated; (vi) relative   to the determination of any period of time, “from” means “from and including,” “to” means “to   but excluding,” and “through” means “through and including”; (vii) the words “asset” and   “property” shall be construed to have the same meaning and effect and to refer to any and all   tangible and intangible assets and properties, including cash, securities, accounts and contract   rights; (viii) the word “or” is not exclusive; (ix) section headings herein and in each other Loan   Document are included for convenience and shall not affect the interpretation of this Agreement   or such Loan Document; and (x) unless otherwise specified, all references herein to times of day   shall constitute references to Eastern time.          1.3   Accounting Principles; Changes in GAAP.  Except as otherwise provided in this   Agreement, all computations and determinations as to accounting or financial matters and all   financial statements to be delivered pursuant to this Agreement shall be made and prepared in   accordance with GAAP (including principles of consolidation where appropriate), and all   accounting or financial terms shall have the meanings ascribed to such terms by GAAP;   provided, however, that all accounting terms used in Section 8.2 [Negative Covenants] (and all   defined terms used in the definition of any accounting term used in Section 8.2 shall have the   meaning given to such terms (and defined terms) under GAAP as in effect on the date hereof   applied on a basis consistent with those used in preparing Statements referred to in   Section 6.1.6(i) [Historical Statements].  Notwithstanding the foregoing, if the Borrowers notify   the Administrative Agent in writing that the Borrowers wish to amend any financial covenant in   Section 8.2 of this Agreement, any related definition and/or the definition of the term Total Net   Leverage Ratio for purposes of interest, Letter of Credit Fee and Unused Line Fee  determinations to eliminate the effect of any change in GAAP occurring after the Closing Date  on the operation of such financial covenants and/or interest, Letter of Credit Fee or Unused Line  Fee determinations (or if the Administrative Agent notifies the Borrowers in writing that the  Required Lenders wish to amend any financial covenant in Section 8.2, any related definition  and/or the definition of the term Total Net Leverage Ratio for purposes of interest, Letter of  Credit Fee and Unused Line Fee determinations to eliminate the effect of any such change in  GAAP), then the Administrative Agent, the Lenders and the Borrowers shall negotiate in good  faith to amend such ratios or requirements to preserve the original intent thereof in light of such  change in GAAP (subject to the approval of the Required Lenders); provided that, until so  amended, the Loan Parties’ compliance with such covenants and/or the definition of the term    {N0289348 2 }                      36    

 

   Total Net Leverage Ratio for purposes of interest, Letter of Credit Fee and Unused Line Fee  determinations shall be determined on the basis of GAAP in effect immediately before the  relevant change in GAAP became effective, until either such notice is withdrawn or such  covenants or definitions are amended in a manner satisfactory to the Borrowers and the Required  Lenders, and the Loan Parties shall provide to the Administrative Agent, when they deliver their  financial statements pursuant to Section 8.3.1 [Quarterly Financial Statements] and 8.3.2  [Annual Financial Statements] of this Agreement, such reconciliation statements as shall be  reasonably requested by the Administrative Agent.         1.4   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.   2. REVOLVING CREDIT AND SWING LOAN FACILITIES         2.1   Revolving Credit Commitments.              2.1.1. Revolving Credit Loans.  Subject to the terms and conditions hereof and  relying upon the representations and warranties herein set forth, each Lender severally agrees to  make Revolving Credit Loans to the Borrowers at any time or from time to time on or after the  date hereof to the Expiration Date; provided that after giving effect to each such Loan (i) the  aggregate amount of Revolving Credit Loans from such Lender shall not exceed such Lender’s  Revolving Credit Commitment minus such Lender’s Ratable Share of the outstanding Swing  Loans and Letter of Credit Obligations, (ii) the Revolving Facility Usage shall not exceed the  Revolving Credit Commitments, and (iii) the Revolving Facility Usage shall not exceed the  Maximum Borrowing Base.  Within such limits of time and amount and subject to the other  provisions of this Agreement, the Borrowers may borrow, repay and reborrow pursuant to this  Section 2.1.              2.1.2. Swing Loan Commitment.  Subject to the terms and conditions hereof and  relying upon the representations and warranties herein set forth, and in order to facilitate loans  and repayments between Settlement Dates, FNB may, at its option, cancelable at any time for  any reason whatsoever, make swing loans (the “Swing Loans”) to the Borrowers at any time or  from time to time after the date hereof to, but not including, the Expiration Date, in an aggregate  principal amount up to but not in excess of $5,000,000, provided that after giving effect to such  Loan, (i) the Revolving Facility Usage shall not exceed the aggregate Revolving Credit  Commitments of the Lenders and (ii) the Revolving Facility Usage shall not exceed the  Maximum Borrowing Base.  Within such limits of time and amount and subject to the other  provisions of this Agreement, the Borrowers may borrow, repay and reborrow pursuant to this  Section 2.1.2.         2.2   Nature of Lenders’ Obligations with Respect to Revolving Credit Loans.  Each  Lender shall be obligated to participate in each request for Revolving Credit Loans pursuant to   {N0289348 2 }                      37   

 

     Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests] in accordance with its   Ratable Share.  The aggregate of each Lender’s Revolving Credit Loans outstanding hereunder   to the Borrowers at any time shall never exceed its Revolving Credit Commitment minus its   Ratable Share of the outstanding Swing Loans and Letter of Credit Obligations.  The obligations   of each Lender hereunder are several.  The failure of any Lender to perform its obligations   hereunder shall not affect the Obligations of the Borrowers to any other party nor shall any other   party be liable for the failure of such Lender to perform its obligations hereunder.  The Lenders   shall have no obligation to make Revolving Credit Loans hereunder on or after the Expiration   Date.          2.3   Unused Line Fee. Accruing from the date hereof until the Expiration Date, the   Borrowers agrees to pay to the Administrative Agent for the account of each Lender according to   its Ratable Share, a nonrefundable fee (the “Unused Line Fee”) equal to the Applicable Unused  Line Fee Rate (computed on the basis of a year of 365 or 366 days, as the case may be, and  actual days elapsed) multiplied by the average daily difference between the amount of (i) the   Revolving Credit Commitments and (ii) the Revolving Facility Usage (provided, however, that   solely in connection with determining the share of each Lender in the Unused Line Fee, the   Revolving Facility Usage with respect to the portion of the Unused Fee allocated to the   Administrative Agent shall include the full amount of the outstanding Swing Loans, and with   respect to the portion of the Unused Line Fee allocated by the Administrative Agent to all of the   Lenders other than the Administrative Agent, such portion of the Unused Line Fee shall be   calculated in accordance with Schedule 1.1(A) (according to each such Lender’s Ratable Share)   as if the Revolving Facility Usage excludes the outstanding Swing Loans); provided further, that   any Unused Line Fee accrued with respect to the Revolving Credit Commitment of a Defaulting   Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid   at such time shall not be payable by the Borrowers so long as such Lender shall be a Defaulting   Lender except to the extent that such Unused Line Fee shall otherwise have been due and   payable by the Borrowers prior to such time; and provided further that no Unused Line Fee shall   accrue with respect to the Revolving Credit Commitment of a Defaulting Lender so long as such   Lender shall be a Defaulting Lender.  Subject to the proviso in the directly preceding sentence,   all Unused Line Fees shall be payable in arrears on each Payment Date.          2.4   Termination or Reduction of Revolving Credit Commitments.  The Borrowers   shall have the right, upon not less than three (3) Business Days’ notice to the Administrative   Agent (or such shorter period as may be agreed to by the Administrative Agent), to terminate the   Revolving Credit Commitments or, from time to time, to reduce the aggregate amount of the   Revolving Credit Commitments (ratably among the Lenders in proportion to their Ratable   Shares; provided that no such termination or reduction of Revolving Credit Commitments shall   be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans   made on the effective date thereof, the Revolving Facility Usage would exceed the aggregate   Revolving Credit Commitments of the Lenders.  Any such reduction shall be in an amount equal   to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Revolving Credit   Commitments then in effect.  Any such reduction or termination shall be accompanied by   prepayment of the Amended and Restated Notes, together with outstanding Unused Line Fees,   and the full amount of interest accrued on the principal sum to be prepaid (and all amounts   referred to in Section 5.10 [Indemnity] hereof) to the extent necessary to cause the aggregate   Revolving Facility Usage after giving effect to such prepayments to be equal to or less than the    {N0289348 2 }                      38    

 

     Revolving Credit Commitments as so reduced or terminated.  Any notice to reduce the   Revolving Credit Commitments under this Section 2.4 shall be irrevocable.          2.5   Revolving Credit Loan Requests; Swing Loan Requests.                 2.5.1. Revolving Credit Loan Requests. Except as otherwise provided herein,   the Administrative Borrower, on behalf of the Borrowers, may from time to time prior to the   Expiration Date request the Lenders to make Revolving Credit Loans, or renew or convert the   Interest Rate Option applicable to existing Revolving Credit Loans or Term Loans pursuant to   Section 4.2 [Interest Periods], by delivering to the Administrative Agent, not later than 12:00   p.m. Eastern time, (i) three (3) Business Days prior to the proposed Borrowing Date with respect  to the making of Revolving Credit Loans to which the LIBOR Rate Option applies or the  conversion to or the renewal of the LIBOR Rate Option for any Loans; and (ii) the same   Business Day of the proposed Borrowing Date with respect to the making of a Revolving Credit   Loan to which the Base Rate Option applies or the last day of the preceding Interest Period with   respect to the conversion to the Base Rate Option for any Loan, of a duly completed request   therefor substantially in the form of Exhibit 2.5.1 or a request by telephone promptly confirmed   in writing by letter, facsimile, electronic mail or telex in such form (each, a “Loan Request”), it   being understood that the Administrative Agent may rely on the authority of any individual   making such a telephonic request without the necessity of receipt of such written confirmation.    If no election is received with respect to the conversion to or the renewal of the LIBOR Rate   Option for any Loans by 12:00 p.m. Eastern time three (3) Business Days prior to the end of the   Interest Period with respect thereto, such Loan shall be converted to the Base Rate Option.  Each   Loan Request shall be irrevocable and shall specify the aggregate amount of the proposed Loans   comprising each Borrowing Tranche, and, if applicable, the Interest Period, which amounts shall   be in (x) integral multiples of $100,000 and not less than $1,000,000 for each Borrowing   Tranche under the LIBOR Rate Option, and (y) integral multiples of $100,000 and not less than   $1,000,000 for each Borrowing Tranche under the Base Rate Option.               2.5.2. Swing Loan Requests.  Except as otherwise provided herein, the   Administrative Borrower, on behalf of the Borrowers, may from time to time prior to the   Expiration Date request the Swing Loan Lender to make Swing Loans by delivery to the Swing   Loan Lender not later than 2:00 p.m. Eastern time on the proposed Borrowing Date of a duly   completed request therefor substantially in the form of Exhibit 2.5.2 hereto or a request by   telephone promptly confirmed in writing by letter, facsimile, electronic mail or telex (each, a   “Swing Loan Request”), it being understood that the Administrative Agent may rely on the   authority of any individual making such a telephonic request without the necessity of receipt of   such written confirmation.  Each Swing Loan Request shall be irrevocable and shall specify the   proposed Borrowing Date and the principal amount of such Swing Loan, which shall be not less   than $250,000.          2.6   Making Revolving Credit Loans and Swing Loans; Presumptions by the   Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing   Loans.               2.6.1. Making Revolving Credit Loans.  The Administrative Agent shall,   promptly after receipt by it of a Loan Request pursuant to Section 2.5 [Revolving Credit Loan    {N0289348 2 }                      39    

 

     Requests; Swing Loan Requests], notify the Lenders of its receipt of such Loan Request   specifying the information provided by the Administrative Borrower and the apportionment  among the Lenders of the requested Revolving Credit Loans as determined by the Administrative  Agent in accordance with Section 2.2 [Nature of Lenders’ Obligations with Respect to Revolving  Credit Loans].  Each Lender shall remit the principal amount of each Revolving Credit Loan to  the Administrative Agent such that the Administrative Agent is able to, and the Administrative  Agent shall, to the extent the Lenders have made funds available to it for such purpose and  subject to Section 7.2 [Each Loan or Letter of Credit], fund such Revolving Credit Loans to the   Borrowers in U.S. Dollars and immediately available funds at the Principal Office prior to 2:00  p.m. Eastern time on the applicable Borrowing Date; provided that if any Lender fails to remit   such funds to the Administrative Agent in a timely manner, the Administrative Agent may elect   in its sole discretion to fund with its own funds the Revolving Credit Loans of such Lender on   such Borrowing Date, and such Lender shall be subject to the repayment obligation in Section   2.6.2 [Presumptions by the Administrative Agent].               2.6.2. Presumptions by the Administrative Agent.  Unless the Administrative   Agent shall have received notice from a Lender prior to the proposed time of any Loan that such   Lender will not make available to the Administrative Agent such Lender’s share of such Loan,   the Administrative Agent may assume that such Lender has made such share available on such   date in accordance with Section 2.6.1 [Making Revolving Credit Loans] 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 Loan available to the Administrative  Agent, then the applicable Lender and the Borrowers severally agree to pay to the Administrative  Agent forthwith on demand such corresponding amount with interest thereon, for each day from  and including the date such amount is made available to the Borrowers to but excluding the date  of payment to the Administrative Agent, at (i) in the case of a payment to be made by such  Lender, the greater of the Federal Funds Effective Rate and a rate determined by the  Administrative Agent in accordance with banking industry rules on interbank compensation and  (ii) in the case of a payment to be made by the Borrowers, the interest rate applicable to Loans  under the Base Rate Option.  If such Lender pays its share of the applicable Loan to the  Administrative Agent, then the amount so paid shall constitute such Lender’s Loan.  Any  payment by the Borrowers shall be without prejudice to any claim the Borrowers may have  against a Lender that shall have failed to make such payment to the Administrative Agent.              2.6.3. Making Swing Loans.  So long as FNB elects to make Swing Loans, FNB   shall, after receipt by it of a Swing Loan Request pursuant to Section 2.5.2 [Swing Loan   Requests], fund such Swing Loan to the Borrowers in U.S. Dollars and immediately available   funds at the Principal Office prior to 2:00 p.m. Eastern time on the Borrowing Date.               2.6.4. Repayment of Revolving Credit Loans.  The Borrowers shall repay the   Revolving Credit Loans together with all outstanding interest thereon on the Expiration Date.               2.6.5. Borrowings to Repay Swing Loans. FNB may, at its option, exercisable at   any time for any reason whatsoever, demand repayment of the Swing Loans, and each Lender   shall make a Revolving Credit Loan in an amount equal to such Lender’s Ratable Share of the   aggregate principal amount of the outstanding Swing Loans, plus, if FNB so requests, accrued   interest thereon, provided that no Lender shall be obligated in any event to make Revolving   Credit Loans in excess of its Revolving Credit Commitment minus its Ratable Share of Letter of    {N0289348 2 }                      40    

 

   Credit Obligations.  Revolving Credit Loans made pursuant to the preceding sentence shall bear  interest at the Base Rate Option and shall be deemed to have been properly requested in  accordance with Section 2.5.1 [Revolving Credit Loan Requests] without regard to any of the  requirements of that provision.  FNB shall provide notice to the Lenders (which may be  telephonic or written notice by letter, facsimile or telex) that such Revolving Credit Loans are to  be made under this Section 2.6.5 and of the apportionment among the Lenders, and the Lenders  shall be unconditionally obligated to fund such Revolving Credit Loans (whether or not the  conditions specified in Section 2.5.1 [Revolving Credit Loan Requests] are then satisfied) by the  time FNB so requests, which shall not be earlier than 3:00 p.m. Eastern time on the Business Day  next after the date the Lenders receive such notice from FNB.                2.6.6. [RESERVED].        2.7   Amended and Restated Notes.  The Obligation of the Borrowers to repay the  aggregate unpaid principal amount of the Revolving Credit Loans, Swing Loans and Term Loans  made to it by each Lender, together with interest thereon, shall be evidenced by a revolving  credit Amended and Restated Note, a swing Amended and Restated Note and a term Amended  and Restated Note, dated the Closing Date payable to such Lender (or its registered assigns) in a  face amount equal to the Revolving Credit Commitment, Swing Loan Commitment or Term  Loan Commitment, as applicable, of such Lender.         2.8   Use of Proceeds.  The proceeds of the Revolving Credit Loans, the Swing Loans  and Term Loans shall be used solely: (i) to finance a portion of the Acquisition, including fees  and expenses related to the Acquisition; (ii) to refinance existing indebtedness; (iii) to pay fees  and expenses in connection with this Agreement and the other Loan Documents and the closing  of the Loans; and (iv) for ongoing general corporate and general working capital purposes of the  Borrowers.           2.9   Letter of Credit Subfacility.               2.9.1. Issuance of Letters of Credit.  The Administrative Borrower, on behalf of  the Borrowers, may request the issuance of a letter of credit (each a “Letter of Credit”) on  behalf of itself or another Loan Party by delivering or having such other Loan Party deliver to  the Administrative Agent a completed application and agreement for letters of credit in such  form as the Administrative Agent may specify from time to time by no later than 10:00 a.m.  Eastern time at least five (5) Business Days, or such shorter period as may be agreed to by the  Administrative Agent, in advance of the proposed date of issuance.  Each Letter of Credit shall  be a Standby Letter of Credit (and may not be a Commercial Letter of Credit).  Promptly after  receipt of any Letter of Credit application, the Issuing Lender shall confirm with the  Administrative Agent (by telephone or in writing) that the Administrative Agent has received a  copy of such Letter of Credit application and if not, such Issuing Lender will provide the  Administrative Agent with a copy thereof.  Unless the Issuing Lender has received notice from  any Lender, the Administrative Agent or any Loan Party, at least one day prior to the requested  date of issuance, amendment or extension of the applicable Letter of Credit, that one or more  applicable conditions in Section 7 [Conditions of Lending and Issuance of Letters of Credit] is  not satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements  of the other Lenders set forth in this Section 2.9, the Issuing Lender or any of the Issuing  Lender’s Affiliates will issue a Letter of Credit or agree to such amendment or extension,   {N0289348 2 }                      41   

 

     provided that each Letter of Credit shall (A) shall be denominated on Dollars, (B) have a   maximum maturity of twelve (12) months from the date of issuance, and (C) in no event expire   later than the Expiration Date and provided further that in no event shall (i) the Letter of Credit   Obligations exceed, at any time, $5,000,000 (the “Letter of Credit Sublimit”), (ii) the   Revolving Facility Usage exceed, at any one time, the Revolving Credit Commitments or (iii) the   Revolving Facility Usage exceed, at any one time, the Maximum Borrowing Base.  Each request   by the Administrative Borrower, on behalf of the Borrowers, for the issuance, amendment, or   extension of a Letter of Credit shall be deemed to be a representation by the Borrowers that they   shall be in compliance with the preceding sentence and with Section 7 [Conditions of Lending   and Issuance of Letters of Credit] after giving effect to the requested issuance, amendment, or   extension of such Letter of Credit.  Promptly after its delivery of any Letter of Credit or any   amendment to any Letter of Credit to the beneficiary thereof, the applicable Issuing Lender will   also deliver to the Administrative Borrower, on behalf of the Borrowers, and the Administrative   Agent a true and complete copy of such Letter of Credit or amendment.               2.9.2. Letter of Credit Fees.  The Borrowers shall pay (i) to the Administrative   Agent for the ratable account of the Lenders a fee (the “Letter of Credit Fee”) equal to the   Applicable Letter of Credit Fee Rate on the daily amount available to be drawn under each Letter   of Credit, and (ii) to the Issuing Lender for its own account a fronting fee equal to the greater of  (x) .25% per annum on the daily amount available to be drawn under each Letter of Credit, and  (y) $500.  All Letter of Credit Fees and fronting fees shall be computed on the basis of a year of  360 days and actual days elapsed and shall be payable quarterly in arrears on each Payment Date   following issuance of each Letter of Credit.  The Borrowers shall also pay to the Issuing Lender   for the Issuing Lender’s sole account the Issuing Lender’s then in effect customary fees and   administrative expenses payable with respect to the Letters of Credit as the Issuing Lender may   generally charge or incur from time to time in connection with the issuance, maintenance,   amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of   Credit.               2.9.3. Disbursements, Reimbursement.  Immediately upon the issuance of each   Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally   agrees to, purchase from the Issuing Lender a participation in such Letter of Credit and each   drawing thereunder in an amount equal to such Lender’s Ratable Share of the maximum amount   available to be drawn under such Letter of Credit and the amount of such drawing, respectively.    In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee   thereof, the Issuing Lender will promptly notify the Borrowers and the Administrative Agent   thereof.  Provided that it shall have received such notice, the Borrowers shall reimburse (such   obligation to reimburse the Issuing Lender shall sometimes be referred to as a “Reimbursement   Obligation”) the Issuing Lender prior to 12:00 p.m. Eastern time on the first Business Day   following the date that an amount is paid by the Issuing Lender under any Letter of Credit (each   such date, a “Drawing Date”) by paying to the Administrative Agent for the account of the   Issuing Lender an amount equal in Dollars to the amount so paid by the Issuing Lender.                        2.9.3.1 In the event the Borrowers fail to reimburse the Issuing Lender   (through the Administrative Agent) for the full amount of any drawing under any Letter of Credit   by 12:00 p.m. Eastern time on the first Business Day following the Drawing Date, the   Administrative Agent will promptly notify each Lender thereof, and the Borrowers shall be    {N0289348 2 }                      42    

 

     deemed to have requested that Revolving Credit Loans be made by the Lenders under the Base   Rate Option to be disbursed on the first Business Day following the Drawing Date under such   Letter of Credit, subject to the amount of the unutilized portion of the Revolving Credit   Commitment and subject to the conditions set forth in Section 7.2 [Each Loan or Letter of  Credit] other than any notice requirements.  Any notice given by the Administrative Agent or  Issuing Lender pursuant to this Section 2.9.3.1 may be oral if immediately confirmed in writing;  provided that the lack of such an immediate confirmation shall not affect the conclusiveness or  binding effect of such notice.                     2.9.3.2 Each Lender shall upon any notice pursuant to Section 2.9.3.1  [Disbursements, Reimbursement] make available to the Administrative Agent for the account of  the Issuing Lender an amount in immediately available funds equal to its Ratable Share of the  amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.9.3   [Disbursements; Reimbursement]) each be deemed to have made a Revolving Credit Loan under   the Base Rate Option to the Borrowers in that amount.  If any Lender so notified fails to make  available to the Administrative Agent for the account of the Issuing Lender the amount of such  Lender’s Ratable Share of such amount by no later than 2:00 p.m. Eastern time on the first  Business Day following the Drawing Date, then interest shall accrue on such Lender’s obligation  to make such payment, from the first Business Day following the Drawing Date to the date on  which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds   Effective Rate during the first three (3) days following the Drawing Date and (ii) at a rate per   annum equal to the rate applicable to Revolving Credit Loans under the Base Rate Option on and   after the fourth day following the Drawing Date.  The Administrative Agent and the Issuing   Lender will promptly give notice (as described in Section 2.9.3.1 [Disbursements,   Reimbursement] above) of the occurrence of the Drawing Date, but failure of the Administrative   Agent or the Issuing Lender to give any such notice on the Drawing Date or in sufficient time to   enable any Lender to effect such payment on the first Business Day following such Drawing   Date shall not relieve such Lender from its obligation under this Section 2.9.3.2 [Disbursements,   Reimbursement].                      2.9.3.3 With respect to any unreimbursed drawing that is not converted   into Revolving Credit Loans under the Base Rate Option to the Borrowers in whole or in part as   contemplated by Section 2.9.3.1, because of the Borrowers’ failure to satisfy the conditions set   forth in Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements, or for   any other reason, the Borrowers shall be deemed to have incurred from the Issuing Lender a   borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing thereof.    Such Letter of Credit Borrowing shall be due and payable on demand (together with interest)   and shall bear interest at the rate per annum applicable to the Revolving Credit Loans under the   Base Rate Option.  Each Lender’s payment to the Administrative Agent for the account of the   Issuing Lender pursuant to Section 2.9.3 [Disbursements, Reimbursement] shall be deemed to   be a payment in respect of its participation in such Letter of Credit Borrowing (each a   “Participation Advance”) from such Lender in satisfaction of its participation obligation under   this Section 2.9.3.     {N0289348 2 }                      43    

 

              2.9.4. Repayment of Participation Advances.                     2.9.4.1 Upon (and only upon) receipt by the Administrative Agent for the  account of the Issuing Lender of immediately available funds from the Borrowers (i) in  reimbursement of any payment made by the Issuing Lender under the Letter of Credit with  respect to which any Lender has made a Participation Advance to the Administrative Agent, or  (ii) in payment of interest on such a payment made by the Issuing Lender under such a Letter of  Credit, the Administrative Agent on behalf of the Issuing Lender will pay to each Lender, in the  same funds as those received by the Administrative Agent, the amount of such Lender’s Ratable  Share of such funds, except the Administrative Agent shall retain for the account of the Issuing  Lender the amount of the Ratable Share of such funds of any Lender that did not make a  Participation Advance in respect of such payment by the Issuing Lender.                     2.9.4.2 If the Administrative Agent is required at any time to return to any  Loan Party, or to a trustee, receiver, liquidator, custodian, or any official in any Insolvency  Proceeding, any portion of any payment made by any Loan Party to the Administrative Agent  for the account of the Issuing Lender pursuant to this Section in reimbursement of a payment  made under any Letter of Credit or interest or fees thereon, each Lender shall, on demand of the  Administrative Agent, forthwith return to the Administrative Agent for the account of the  Issuing Lender the amount of its Ratable Share of any amounts so returned by the  Administrative Agent plus interest thereon from the date such demand is made to the date such  amounts are returned by such Lender to the Administrative Agent, at a rate per annum equal to  the Federal Funds Effective Rate in effect from time to time.              2.9.5. Documentation.  Each Loan Party agrees to be bound by the terms of the  Issuing Lender’s application and agreement for letters of credit and the Issuing Lender’s written  regulations and customary practices relating to letters of credit, though such interpretation may  be different from such Loan Party’s own.  In the event of a conflict between such application or  agreement and this Agreement, this Agreement shall govern.  It is understood and agreed that,  except in the case of gross negligence or willful misconduct, the Issuing Lender shall not be  liable for any error, negligence and/or mistakes, whether of omission or commission, in  following any Loan Party’s instructions or those contained in the Letters of Credit or any  modifications, amendments or supplements thereto.              2.9.6. Determinations to Honor Drawing Requests.  In determining whether to  honor any request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing  Lender shall be responsible only to determine that the documents and certificates required to be  delivered under such Letter of Credit have been delivered and that they comply on their face with  the requirements of such Letter of Credit.              2.9.7. Nature of Participation and Reimbursement Obligations.  Each Lender’s  obligation in accordance with this Agreement to make the Revolving Credit Loans or  Participation Advances, as contemplated by Section 2.9.3 [Disbursements, Reimbursement], as a  result of a drawing under a Letter of Credit, and the Obligations of the Borrowers to reimburse  the Issuing Lender upon a draw under a Letter of Credit, shall be absolute, unconditional and  irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.9  under all circumstances, including the following circumstances:   {N0289348 2 }                      44   

 

                     (i)   any set-off, counterclaim, recoupment, defense or other right              which such Lender may have against the Issuing Lender or any of its Affiliates,              the Borrowers or any other Person for any reason whatsoever, or which any Loan              Party may have against the Issuing Lender or any of its Affiliates, any Lender or              any other Person for any reason whatsoever;                      (ii)  the failure of any Loan Party or any other Person to comply, in              connection with a Letter of Credit Borrowing, with the conditions set forth in              Sections 2.1 [Revolving Credit Commitments], 2.5 [Revolving Credit Loan              Requests; Swing Loan Requests], 2.6 [Making Revolving Credit Loans and Swing              Loans; Etc.] or 7.2 [Each Loan or Letter of Credit] or as otherwise set forth in this              Agreement for the making of a Revolving Credit Loan, it being acknowledged              that such conditions are not required for the making of a Letter of Credit              Borrowing and the obligation of the Lenders to make Participation Advances              under Section 2.9.3 [Disbursements, Reimbursement];                     (iii) any lack of validity or enforceability of any Letter of Credit;                     (iv)  any claim of breach of warranty that might be made by any Loan              Party or any Lender against any beneficiary of a Letter of Credit, or the existence              of any claim, set-off, recoupment, counterclaim, crossclaim, defense or other right              which any Loan Party or any Lender may have at any time against a beneficiary,              successor beneficiary any transferee or assignee of any Letter of Credit or the              proceeds thereof (or any Persons for whom any such transferee may be acting),              the Issuing Lender or its Affiliates or any Lender or any other Person, whether in              connection with this Agreement, the transactions contemplated herein or any              unrelated transaction (including any underlying transaction between any Loan             Party or Subsidiaries of a Loan Party and the beneficiary for which any Letter of             Credit was procured);                     (v)   the lack of power or authority of any signer of (or any defect in or              forgery of any signature or endorsement on) or the form of or lack of validity,              sufficiency, accuracy, enforceability or genuineness of any draft, demand,              instrument, certificate or other document presented under or in connection with              any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of              Credit, or the transport of any property or provision of services relating to a Letter              of Credit, in each case even if the Issuing Lender or any of its Affiliates has been              notified thereof;                     (vi)  payment by the Issuing Lender or any of its Affiliates under any              Letter of Credit against presentation of a demand, draft or certificate or other              document which does not comply with the terms of such Letter of Credit;                     (vii) the solvency of, or any acts or omissions by, any beneficiary of any              Letter of Credit, or any other Person having a role in any transaction or obligation              relating to a Letter of Credit, or the existence, nature, quality, quantity, condition,    {N0289348 2 }                      45   

 

               value or other characteristic of any property or services relating to a Letter of              Credit;                     (viii) any failure by the Issuing Lender or any of its Affiliates to issue              any Letter of Credit in the form requested by any Loan Party, unless the Issuing              Lender has received written notice from such Loan Party of such failure within              three Business Days after the Issuing Lender shall have furnished such Loan Party             and the Administrative Agent a copy of such Letter of Credit and such error is             material and no drawing has been made thereon prior to receipt of such notice;                     (ix)  any adverse change in the business, operations, properties, assets,              condition (financial or otherwise) or prospects of any Loan Party or Subsidiaries              of a Loan Party;                     (x)   any breach of this Agreement or any other Loan Document by any              party thereto;                     (xi)  the occurrence or continuance of an Insolvency Proceeding with              respect to any Loan Party;                     (xii) the fact that an Event of Default or a Potential Default shall have              occurred and be continuing;                     (xiii) the fact that the Expiration Date shall have passed or this             Agreement or the Commitments hereunder shall have been terminated; and                    (xiv) any other circumstance or happening whatsoever, whether or not             similar to any of the foregoing.               2.9.8. Indemnity.  Each Borrower hereby agrees to protect, indemnify, pay and  save harmless the Issuing Lender and any of its Affiliates that has issued a Letter of Credit from  and against any and all claims, demands, liabilities, damages, penalties, interest, judgments,  losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of  counsel and allocated costs of internal counsel) which the Issuing Lender or any of its Affiliates  may incur or be subject to as a consequence, direct or indirect, of the issuance of any Letter of  Credit, other than as a result of (A) the gross negligence or willful misconduct of the Issuing  Lender as determined by a final non-appealable judgment of a court of competent jurisdiction or  (B) the wrongful dishonor by the Issuing Lender or any of Issuing Lender’s Affiliates of a proper  demand for payment made under any Letter of Credit, except if such dishonor resulted from any  act or omission, whether rightful or wrongful, of any present or future de jure or de facto  government or Official Body.  For the avoidance of doubt, this Section 2.9.8 shall not be  interpreted to refer to Taxes, which are addressed elsewhere herein.              2.9.9. Liability for Acts and Omissions.  As between any Loan Party and the  Issuing Lender, or the Issuing Lender’s Affiliates, such Loan Party assumes all risks of the acts  and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such  Letters of Credit.  In furtherance and not in limitation of the foregoing, the Issuing Lender shall  not be responsible for any of the following, including any losses or damages to any Loan Party or   {N0289348 2 }                      46   

 

   other Person or property relating therefrom:  (i) the form, validity, sufficiency, accuracy,  genuineness or legal effect of any document submitted by any party in connection with the  application for an issuance of any such Letter of Credit, even if it should in fact prove to be in  any or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if the Issuing  Lender or its Affiliates shall have been notified thereof); (ii) the validity or sufficiency of any  instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit  or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to  be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of  Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with  any conditions required in order to draw upon such Letter of Credit or any other claim of any  Loan Party against any beneficiary of such Letter of Credit, or any such transferee, or any  dispute between or among any Loan Party and any beneficiary of any Letter of Credit or any  such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery of any  messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;  (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or  otherwise of any document required in order to make a drawing under any such Letter of Credit  or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit  of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising  from causes beyond the control of the Issuing Lender or its Affiliates, as applicable, including  any act or omission of any Official Body, and none of the above shall affect or impair, or prevent  the vesting of, any of the Issuing Lender’s or its Affiliates rights or powers hereunder.  Nothing  in the preceding sentence shall relieve the Issuing Lender from liability for the Issuing Lender’s  gross negligence or willful misconduct in connection with actions or omissions described in such  clauses (i) through (viii) of such sentence.  In no event shall the Issuing Lender or its Affiliates  be liable to any Loan Party for any indirect, consequential, incidental, punitive, exemplary or  special damages or expenses (including attorneys’ fees), or for any damages resulting from any  change in the value of any property relating to a Letter of Credit.                 Without limiting the generality of the foregoing, the Issuing Lender and each of  its Affiliates (i) may rely on any oral or other communication believed in good faith by the  Issuing Lender or such Affiliate to have been authorized or given by or on behalf of the applicant  for a Letter of Credit, (ii) may honor any presentation if the documents presented appear on their  face substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii)  may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor  was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or  otherwise, and shall be entitled to reimbursement to the same extent as if such presentation had  initially been honored, together with any interest paid by the Issuing Lender or its Affiliate; (iv)  may honor any drawing that is payable upon presentation of a statement advising negotiation or  payment, upon receipt of such statement (even if such statement indicates that a draft or other  document is being delivered separately), and shall not be liable for any failure of any such draft  or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may  pay any paying or negotiating bank claiming that it rightfully honored under the laws or practices  of the place where such bank is located; and (vi) may settle or adjust any claim or demand made  on the Issuing Lender or its Affiliate in any way related to any order issued at the applicant’s  request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar  document (each an “Order”) and honor any drawing in connection with any Letter of Credit that    {N0289348 2 }                      47   

 

     is the subject of such Order, notwithstanding that any drafts or other documents presented in   connection with such Letter of Credit fail to conform in any way with such Letter of Credit.               In furtherance and extension and not in limitation of the specific provisions set  forth above, any action taken or omitted by the Issuing Lender or its Affiliates under or in  connection with the Letters of Credit issued by it or any documents and certificates delivered  thereunder, if taken or omitted in good faith, shall not put the Issuing Lender or its Affiliates   under any resulting liability to the Borrowers or any Lender.               2.9.10. Issuing Lender Reporting Requirements.  Each Issuing Lender shall, on   the first Business Day of each month, provide to Administrative Agent and Borrowers a schedule   of the Letters of Credit issued by it, in form and substance satisfactory to Administrative Agent,   showing the date of issuance of each Letter of Credit, the account party, the original face amount   (if any), and the expiration date of any Letter of Credit outstanding at any time during the   preceding month, and any other information relating to such Letter of Credit that the   Administrative Agent may request.          2.10  Defaulting Lenders.  Notwithstanding any provision of this Agreement to the   contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply   for so long as such Lender is a Defaulting Lender:                      (i)   fees shall cease to accrue on the unfunded portion of the   Commitment of such Defaulting Lender pursuant to Section 2.3 [Unused Line Fees];                     (ii)  the Commitment and outstanding Loans of such Defaulting Lender  shall not be included in determining whether the Required Lenders have taken or may take any  action hereunder (including any consent to any amendment, waiver or other modification  pursuant to Section 12.1 [Modifications, Amendments or Waivers]); provided, that this clause  (ii) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or  other modification requiring the consent of such Lender or each Lender directly affected thereby;                       (iii) if any Swing Loans are outstanding or any Letter of Credit   Obligations exist at the time such Lender becomes a Defaulting Lender, then:          (a)   all or any part of the outstanding Swing Loans and Letter of Credit Obligations of   such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance  with their respective Ratable Shares but only to the extent that (x) the Revolving Facility Usage  does not exceed the total of all non-Defaulting Lenders’ Revolving Credit Commitments, and  (y) no Potential Default or Event of Default has occurred and is continuing at such time;         (b)    if the reallocation described in clause (a) above cannot, or can only partially, be  effected, the Borrowers shall within one Business Day following notice by the Administrative  Agent (x) first, prepay such outstanding Swing Loans, and (y) second, cash collateralize for the   benefit of the Issuing Lender the Borrowers’ obligations corresponding to such Defaulting   Lender’s Letter of Credit Obligations (after giving effect to any partial reallocation pursuant to   clause (a) above) in a deposit account held at the Administrative Agent for so long as such Letter   of Credit Obligations are outstanding;      {N0289348 2 }                      48    

 

           (c)   if the Borrowers cash collateralize any portion of such Defaulting Lender’s Letter   of Credit Obligations pursuant to clause (b) above, the Borrowers shall not be required to pay   any fees to such Defaulting Lender pursuant to Section 2.9.2 [Letter of Credit Fees] with respect   to such Defaulting Lender’s Letter of Credit Obligations during the period such Defaulting   Lender’s Letter of Credit Obligations are cash collateralized;          (d)   if the Letter of Credit Obligations of the non-Defaulting Lenders are reallocated   pursuant to clause (a) above, then the fees payable to the Lenders pursuant to Section 2.9.2   [Letter of Credit Fees] shall be adjusted in accordance with such non-Defaulting Lenders’  Ratable Share; and        (e)   if all or any portion of such Defaulting Lender’s Letter of Credit Obligations are  neither reallocated nor cash collateralized pursuant to clause (a) or (b) above, then, without  prejudice to any rights or remedies of the Issuing Lender or any other Lender hereunder, all  Letter of Credit Fees payable under Section 2.9.2 [Letter of Credit Fees] with respect to such  Defaulting Lender’s Letter of Credit Obligations shall be payable to the Issuing Lender (and not  to such Defaulting Lender) until and to the extent that such Letter of Credit Obligations are  reallocated and/or cash collateralized; and                    (iv)  so long as such Lender is a Defaulting Lender, FNB shall not be  required to fund any Swing Loans and the Issuing Lender shall not be required to issue, amend or  increase any Letter of Credit, unless such Issuing Lender is satisfied that the related exposure and  the Defaulting Lender’s then outstanding Letter of Credit Obligations will be 100% covered by  the Revolving Credit Commitments of the non-Defaulting Lenders and/or cash collateral will be  provided by the Borrowers in accordance with Section 2.10(iii), and participating interests in any  newly made Swing Loan or any newly issued or increased Letter of Credit shall be allocated  among non-Defaulting Lenders in a manner consistent with Section 2.10(iii) (and such   Defaulting Lender shall not participate therein).     If (i) a Bankruptcy Event with respect to a parent company of any Lender shall occur following   the date hereof and for so long as such event shall continue, or (ii) FNB or the Issuing Lender has  a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more  other agreements in which such Lender commits to extend credit, FNB shall not be required to  fund any Swing Loan and the Issuing Lender shall not be required to issue, amend or increase  any Letter of Credit, unless FNB or the Issuing Lender, as the case may be, shall have entered  into arrangements with the Borrowers or such Lender, satisfactory to FNB or the Issuing Lender,  as the case may be, to defease any risk to it in respect of such Lender hereunder.   In the event that the Administrative Agent, the Borrower, FNB and the Issuing Lender agree in  writing that a Defaulting Lender has adequately remedied all matters that caused such Lender to  be a Defaulting Lender, then the Administrative Agent will so notify the parties hereto, and the  Ratable Share of the Swing Loans and Letter of Credit Obligations of the Lenders shall be  readjusted to reflect the inclusion of such Lender’s Commitment, and on such date such Lender  shall purchase at par such of the Loans of the other Lenders (other than Swing Loans) as the  Administrative Agent shall determine may be necessary in order for such Lender to hold such  Loans in accordance with its Ratable Share.     {N0289348 2 }                      49    

 

   3. TERM LOANS         3.1   Term Loan Commitments.  Subject to the terms and conditions hereof, and  relying upon the representations and warranties herein set forth, each Lender severally agrees to  make a term loan (the “Term Loan”) to the Borrowers on the Closing Date in such principal  amount as the Borrowers shall request up to, but not exceeding such Lender’s Term Loan  Commitment.         3.2   Nature of Lenders’ Obligations with Respect to Term Loans; Repayment Terms.   The obligations of each Lender to make Term Loans to the Borrowers shall be in the proportion  that such Lender’s Term Loan Commitment bears to the Term Loan Commitments of all Lenders  to the Borrowers, but each Lender’s Term Loan to the Borrowers shall never exceed its Term  Loan Commitment.  The failure of any Lender to make a Term Loan shall not relieve any other  Lender of its obligations to make a Term Loan nor shall it impose any additional liability on any  other Lender hereunder.  The Lenders shall have no obligation to make Term Loans hereunder  after the Closing Date.  The Term Loan Commitments are not revolving credit commitments, and  the Borrowers shall not have the right to borrow, repay and reborrow under Section 3.1 [Term  Loan Commitments].  The principal balance of the Term Loans shall be due and payable in  consecutive quarterly installments determined by, and as set forth in, the table set forth below  (subject, however, to adjustment for voluntary prepayments as set forth in Section 5.6 [Voluntary  Prepayments] and mandatory prepayments as set forth in Section 5.7 [Mandatory Prepayments]):                                                                 Amount of Term                        Date of Payment of Installment Loan Repayment                                                                           Year 1          December 31, 2020          $1,750,000.00                               March 31, 2021           $1,750,000.00                               June 30, 2021            $1,750,000.00                             September 30, 2021         $1,750,000.00                                                                           Year 2          December 31, 2021          $1,750,000.00                               March 31, 2022           $1,750,000.00                               June 30, 2022            $1,750,000.00                             September 30, 2022         $1,750,000.00                                                                           Year 3          December 31, 2022          $2,187,500.00                               March 31, 2023           $2,187,500.00                               June 30, 2023            $2,187,500.00                             September 30, 2023         $2,187,500.00                                                                           Year 4          December 31, 2023          $2,187,500.00                               March 31, 2024           $2,187,500.00                               June 30, 2024            $2,187,500.00                             September 30, 2024         $2,187,500.00   {N0289348 2 }                      50   

 

                                                                            Year 5          December 31, 2024          $2,187,500.00                               March 31, 2025           $2,187,500.00                               June 30, 2025            $2,187,500.00                                                  Payments of principal shall be due on the last day of each calendar quarter, beginning on  December 31, 2020, as set forth above, and continuing until the Expiration Date when the entire  unpaid principal balance hereof and accrued interest thereon shall be due and payable in full.    4. INTEREST RATES         4.1   Interest Rate Options.  The Borrowers shall pay interest in respect of the  outstanding unpaid principal amount of the Loans as selected by the Administrative Borrower  from the Base Rate Option or LIBOR Rate Option set forth below applicable to the Loans, it  being understood that, subject to the provisions of this Agreement, the Administrative Borrower  may select different Interest Rate Options and different Interest Periods to apply simultaneously  to the Loans comprising different Borrowing Tranches and may convert to or renew one or more  Interest Rate Options with respect to all or any portion of the Loans comprising any Borrowing  Tranche; provided that there shall not be at any one time outstanding more than six (6)  Borrowing Tranches in the aggregate among all of the Loans and provided further that if an  Event of Default or Potential Default exists and is continuing, neither the Administrative  Borrower nor any other Borrower may request, convert to, or renew the LIBOR Rate Option for  any Loans and the Required Lenders may demand that all existing Borrowing Tranches bearing  interest under the LIBOR Rate Option shall be converted immediately to the Base Rate Option,  subject to the obligation of the Borrowers to pay any indemnity under Section 5.10 [Indemnity]  in connection with such conversion.  If at any time the designated rate applicable to any Loan  made by any Lender exceeds such Lender’s highest lawful rate, the rate of interest on such  Lender’s Loan shall be limited to such Lender’s highest lawful rate.              4.1.1. Revolving Credit Interest Rate Options; Swing Line Interest Rate.  The  Administrative Borrower shall have the right to select from the following Interest Rate Options  applicable to the Revolving Credit Loans:                           (i)   Revolving Credit Base Rate Option:  A fluctuating rate per  annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days  elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change  automatically from time to time effective as of the effective date of each change in the Base  Rate; or                           (ii)  Revolving Credit LIBOR Rate Option:  A rate per annum  (computed on the basis of a year of 360 days and actual days elapsed) equal to the LIBOR Rate  as determined for each applicable Interest Period plus the Applicable Margin.   Subject to Section 4.3 [Interest After Default], only the Base Rate Option applicable to  Revolving Credit Loans shall apply to the Swing Loans.    {N0289348 2 }                      51   

 

              4.1.2. Term Loan Interest Rate Options.  The Administrative Borrower shall  have the right to select from the following Interest Rate Options applicable to the Term Loans:                          (i)   Term Loan Base Rate Option:  A fluctuating rate per  annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days  elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change  automatically from time to time effective as of the effective date of each change in the Base  Rate; or                           (ii)  Term Loan LIBOR Rate Option:  A rate per annum  (computed on the basis of a year of 360 days and actual days elapsed) equal to the LIBOR Rate  plus the Applicable Margin.              4.1.3. Rate Quotations.  The Administrative Borrower  may call the  Administrative Agent on or before the date on which a Loan Request is to be delivered to receive  an indication of the rates then in effect, but it is acknowledged that such projection shall not be  binding on the Administrative Agent or the Lenders nor affect the rate of interest which  thereafter is actually in effect when the election is made.         4.2   Interest Periods.  At any time when the Administrative Borrower shall select,  convert to or renew a LIBOR Rate Option, the Administrative Borrower shall notify the  Administrative Agent thereof at least three (3) Business Days prior to the effective date of such  LIBOR Rate Option by delivering a Loan Request.  The notice shall specify an Interest Period  during which such Interest Rate Option shall apply.  Notwithstanding the preceding sentence, the  following provisions shall apply to any selection of, renewal of, or conversion to a LIBOR Rate  Option:              4.2.1. Amount of Borrowing Tranche.  Each Borrowing Tranche of Loans under  the LIBOR Rate Option shall be in integral multiples of, and not less than, the respective  amounts set forth in Section 2.5.1 [Revolving Credit Loan Requests]; and              4.2.2. Renewals.  In the case of the renewal of a LIBOR Rate Option at the end  of an Interest Period, the first day of the new Interest Period shall be the last day of the preceding  Interest Period, without duplication in payment of interest for such day.         4.3   Interest After Default.  To the extent permitted by Law, upon the occurrence of an  Event of Default and until such time such Event of Default shall have been cured or waived, and  at the discretion of the Administrative Agent or upon written demand by the Required Lenders to  the Administrative Agent:              4.3.1. Letter of Credit Fees, Interest Rate.  The Letter of Credit Fees and the rate  of interest for each Loan otherwise applicable pursuant to Section 2.9.2 [Letter of Credit Fees] or  Section 4.1 [Interest Rate Options], respectively, shall be increased by 2.0% per annum;              4.3.2. Other Obligations.  Each other Obligation hereunder if not paid when due  shall bear interest at a rate per annum equal to the sum of the rate of interest applicable to  Revolving Credit Loans under the Base Rate Option plus an additional 2.0% per annum from the  time such Obligation becomes due and payable and until it is Paid In Full; and   {N0289348 2 }                      52   

 

                4.3.3. Acknowledgment.  The Borrowers acknowledge that the increase in rates   referred to in this Section 4.3 reflects, among other things, the fact that such Loans or other   amounts have become a substantially greater risk given their default status and that the Lenders   are entitled to additional compensation for such risk; and all such interest shall be payable by   Borrowers upon demand by Administrative Agent.  The Administrative Agent will notify the   Borrowers if the rate of interest is increased pursuant to this Section 4.3.          4.4   LIBOR Rate Unavailable; Illegality; Increased Costs; Deposits Not Available.            LIBOR Unavailability. Notwithstanding anything to the contrary, in the event that the   Administrative Agent shall have reasonably determined in good faith that U.S. Dollar deposits in   the principal amounts of the Loans are not generally available in the London interbank market, or  that the Administrative Agent has been notified in writing by the Required Lenders that the rates  at which such U.S. Dollar deposits are being offered will not adequately and fairly in good faith  reflect the cost to the Required Lenders of making or maintaining Loans at LIBOR, or that  reasonable means do not exist for ascertaining LIBOR, the Administrative Agent shall, as soon  as practicable thereafter, notify the Borrower and the Lenders of such determination (a “LIBOR  Unavailability Notice”).  The Administrative Agent may rescind any such LIBOR Unavailability  Notice in the event that the circumstances giving rise to such notice no longer exist (such notice  to be provided by the Administrative Agent promptly upon written notice of the Majority  Lenders that the circumstances giving rise to such LIBOR Unavailability Notice have ceased to  exist).               4.4.2. Benchmark Replacement Setting.                            (i)   Benchmark Replacement.  Notwithstanding anything to the   contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early   Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior   to the Reference Time in respect of any setting of the then-current Benchmark, then, (x) if a  Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of  “Benchmark Replacement” for such Benchmark Replacement Date, in connection with a  Benchmark Transition Event, such Benchmark Replacement will replace such Benchmark for all  purposes hereunder and under any Loan Document in respect of such Benchmark setting and  subsequent Benchmark settings without any amendment to, or further action or consent of any  other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement  is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for  such Benchmark Replacement Date, or in connection with an Early Opt-in Election, such  Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any  Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time)   on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided   to the Borrowers without any amendment to, or further action or consent of any other party to,   this Agreement or any other Loan Document so long as the Administrative Agent has not  received, by such time, written notice of objection to such Benchmark Replacement from  Lenders Comprising Required Lenders.                            (ii)  Benchmark Replacement  Conforming Changes.  In   connection with the implementation of a Benchmark Replacement, the Administrative Agent will    {N0289348 2 }                      53    

 

   have the right to make Benchmark Replacement Conforming Changes from time to time and,  notwithstanding anything to the contrary herein or in any other Loan Document, any  amendments implementing such Benchmark Replacement Conforming Changes will become  effective without any further action or consent of any other party to this Agreement or any other  Loan Document.                            (iii) Notices; Standards for Decisions and Determinations. The  Administrative Agent will promptly notify the Administrative Borrower of (i) any occurrence of  a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related  Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the  effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or  reinstatement of any tenor of Term SOFR pursuant to Section 4.4.2(iv) [Unavailability of Tenor  of Benchmark] below, and (v) the commencement or conclusion of any Benchmark Unavailability  Period. Any determination, decision or election that may be made by the Administrative Agent  or, if applicable, any Lender (or group of Lenders) pursuant to this Section 4.4.2 [Benchmark  Replacement Setting] including any determination with respect to a tenor, rate or adjustment or  of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or  refrain from taking any action or any selection, will be conclusive and binding absent manifest  error and may be made in its or their sole discretion and without consent from any other party to  this Agreement or any other Loan Document, except, in each case, as expressly required  pursuant to Section 4.4.2 [Benchmark Replacement Setting].                           (iv)  Unavailability of Tenor of Benchmark.  Notwithstanding  anything to the contrary herein or in any other Loan Document, at any time (including in connection  with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term  rate (including Term SOFR or USD LIBOR) and either (A) any tenor for such Benchmark is not  displayed on a screen or other information service that publishes such rate from time to time as  selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for  the administrator of such Benchmark has provided a public statement or publication of information  announcing that any tenor for such Benchmark is or will be no longer representative, then the  Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or  after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was  removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information  service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject  to an announcement that it is or will no longer be representative for a Benchmark (including a  Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest  Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.                           (v)   Benchmark Unavailability Period. Upon the Administrative  Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the  Administrative Borrower may revoke any request for a borrowing of, conversion to or continuation  of  any Loan or Loans to be made, converted or continued under the LIBOR Rate Option during any  Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted  any such request into a request for a Borrowing of or conversion to the Base Rate Option. During any  Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an  Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor  for such Benchmark, as applicable, will not be used in any determination of the Base Rate.   {N0289348 2 }                      54   

 

                   4.4.3. Illegality; Increased Costs; Deposits Not Available.  If at any time any   Lender shall have determined that:                      (i)   the making, maintenance or funding of any Loan to which a   LIBOR Rate Option applies has been made impracticable or unlawful by compliance by such   Lender in good faith with any Law or any interpretation or application thereof by any Official   Body or with any request or directive of any such Official Body (whether or not having the force   of Law), or                      (ii)  such LIBOR Rate Option will not adequately and fairly reflect the   cost to such Lender of the establishment or maintenance of any such Loan, or                      (iii) after making all reasonable efforts, deposits of the relevant amount   in Dollars for the relevant Interest Period for a Loan, or to banks generally, to which a LIBOR   Rate Option applies, respectively, are not available to such Lender with respect to such Loan, or   to banks generally, in the interbank Eurodollar market,          then the Administrative Agent shall have the rights specified in Section 4.4.4   [Administrative Agent’s and Lender’s Rights].               4.4.4. Administrative Agent’s and Lender’s Rights.  In the case of any event   specified in Section 4.4.1 [LIBOR Unavailability] above, the Administrative Agent shall   promptly so notify the Lenders and the Borrowers thereof, and in the case of an event specified   in Section 4.4.3 [Illegality; Increased Costs; Deposits Not Available] above, such Lender shall   promptly so notify the Administrative Agent and endorse a certificate to such notice as to the   specific circumstances of such notice, and the Administrative Agent shall promptly send copies   of such notice and certificate to the other Lenders and the Borrowers.  Upon such date as shall be   specified in such notice (which shall not be earlier than the date such notice is given), the   obligation of (A) the Lenders, in the case of such notice given by the Administrative Agent, or   (B) such Lender, in the case of such notice given by such Lender, to allow the Borrowers to   select, convert to or renew a LIBOR Rate Option shall be suspended until the Administrative   Agent shall have later notified the Borrowers, or such Lender shall have later notified the   Administrative Agent, of the Administrative Agent’s or such Lender’s, as the case may be,   determination that the circumstances giving rise to such previous determination no longer exist.    If at any time the Administrative Agent makes a determination under Section 4.4.1   [Unascertainable] and the Administrative Borrower has previously notified the Administrative   Agent of its selection of, conversion to or renewal of a LIBOR Rate Option and such Interest   Rate Option has not yet gone into effect, such notification shall be deemed to provide for   selection of, conversion to or renewal of the Base Rate Option otherwise available with respect   to such Loans.  If any Lender notifies the Administrative Agent of a determination under   Section 4.4.3 [Illegality; Increased Costs; Deposits Not Available], the Borrowers shall, subject   to the Borrowers’ indemnification Obligations under Section 5.10 [Indemnity], as to any Loan of  the Lender to which a LIBOR Rate Option applies, on the date specified in such notice either  convert such Loan to the Base Rate Option otherwise available with respect to such Loan or  prepay such Loan in accordance with Section 5.6 [Voluntary Prepayments].  Absent due notice     {N0289348 2 }                      55    

 

   from the Borrowers of conversion or prepayment, such Loan shall automatically be converted to  the Base Rate Option otherwise available with respect to such Loan upon such specified date.         4.5   Selection of Interest Rate Options.  If the Borrowers fail to select a new Interest  Period to apply to any Borrowing Tranche of Loans under the LIBOR Rate Option at the  expiration of an existing Interest Period applicable to such Borrowing Tranche in accordance  with the provisions of Section 4.2 [Interest Periods], the Borrowers shall be deemed to have  converted such Borrowing Tranche to the Base Rate Option, as applicable to Revolving Credit  Loans or Term Loans as the case may be, commencing upon the last day of the existing Interest  Period.   5. PAYMENTS         5.1   Payments.  All payments and prepayments to be made in respect of principal,  interest, Unused Line Fees, Letter of Credit Fees, Arrangement Fee, the Agency Fee, the Upfront  Fee or other fees or amounts due from the Borrowers hereunder shall be payable prior to 11:00  a.m. Eastern time on the date when due without presentment, demand, protest or notice of any  kind, all of which are hereby expressly waived by the Borrowers, and without set-off,  counterclaim or other deduction of any nature (except as expressly permitted by Section 5.9  [Taxes]), and an action therefor shall immediately accrue.  Such payments shall be made to the  Administrative Agent at the Principal Office for the account of FNB with respect to the Swing  Loans and for the ratable accounts of the Lenders with respect to the Revolving Credit Loans or  Term Loans in U.S. Dollars and in immediately available funds, and the Administrative Agent  shall promptly distribute such amounts to the Lenders in immediately available funds; provided  that in the event payments are received by 11:00 a.m. Eastern time by the Administrative Agent  with respect to the Loans and such payments are not distributed to the Lenders on the same day  received by the Administrative Agent, the Administrative Agent shall pay the Lenders the  Federal Funds Effective Rate with respect to the amount of such payments for each day held by  the Administrative Agent and not distributed to the Lenders.  The Administrative Agent’s and  each Lender’s statement of account, ledger or other relevant record shall, in the absence of  manifest error, be conclusive as the statement of the amount of principal of and interest on the  Loans and other amounts owing under this Agreement.         5.2   Pro Rata Treatment of Lenders.  Each borrowing of Revolving Credit Loans shall  be allocated to each Lender according to its Ratable Share, and each selection of, conversion to  or renewal of any Interest Rate Option and each payment or prepayment by the Borrower with  respect to principal, interest, Unused Line Fees and Letter of Credit Fees (but excluding the  Arrangement Fee, the Agency Fee, the Upfront Fee and the Issuing Lender’s fronting fee) shall  (except as otherwise may be provided with respect to a Defaulting Lender and except as  provided in Section 4.4.4 [Administrative Agent’s and Lender’s Rights] in the case of an event  specified in Section 4.4 [LIBOR Rate Unascertainable; Etc.], 5.6.2 [Replacement of a Lender] or  5.8 [Increased Costs]) be payable ratably among the Lenders entitled to such payment in  accordance with the amount of principal, interest, Unused Line Fees and Letter of Credit Fees, as  set forth in this Agreement.  Notwithstanding any of the foregoing, each borrowing or payment  or prepayment by the Borrowers of principal, interest, fees or other amounts from the Borrowers  with respect to Swing Loans shall be made by or to FNB according to Section 2.6.5 [Borrowings  to Repay Swing Loans].   {N0289348 2 }                      56   

 

         5.3   Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of  setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by realization upon  security, or by any other non-pro rata source, obtain payment in respect of any principal of or  interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving  payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or  other such obligations greater than the pro-rata share of the amount such Lender is entitled  thereto, then the Lender receiving such greater proportion shall (a) notify the Administrative  Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such  other obligations of the other Lenders, or make such other adjustments as shall be equitable, so  that the benefit of all such payments shall be shared by the Lenders ratably in accordance with  the aggregate amount of principal of and accrued interest on their respective Loans and other  amounts owing them, provided that:                     (i)   if any such participations are purchased and all or any portion of  the payment giving rise thereto is recovered, such participations shall be rescinded and the  purchase price restored to the extent of such recovery, together with interest or other amounts, if  any, required by Law (including court order) to be paid by the Lender or the holder making such  purchase; and                     (ii)  the provisions of this Section 5.3 shall not be construed to apply to  (x) any payment made by the Loan Parties pursuant to and in accordance with the express terms  of the Loan Documents or (y) any payment obtained by a Lender as consideration for the  assignment of or sale of a participation in any of its Loans or Participation Advances to any  assignee or participant, other than to the Borrowers or any Subsidiary thereof (as to which the  provisions of this Section 5.3 shall apply).   Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so  under applicable Law, that any Lender acquiring a participation pursuant to the foregoing  arrangements may exercise against each Loan Party rights of setoff and counterclaim with  respect to such participation as fully as if such Lender were a direct creditor of each Loan Party  in the amount of such participation.        5.4   Presumptions by Administrative Agent.  Unless the Administrative Agent shall  have received notice from the Borrowers prior to the date on which any payment is due to the  Administrative Agent for the account of the Lenders or the Issuing Lender hereunder that the  Borrowers will not make such payment, the Administrative Agent may assume that the  Borrowers have made such payment on such date in accordance herewith and may, in reliance  upon such assumption, distribute to the Lenders or the Issuing Lender, as the case may be, the  amount due.  In such event, if the Borrowers have not in fact made such payment, then each of  the Lenders or the Issuing Lender, as the case may be, severally agrees to repay to the  Administrative Agent forthwith on demand the amount so distributed to such Lender or the  Issuing Lender, 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 Federal Funds Effective Rate and a rate determined by the Administrative Agent in  accordance with banking industry rules on interbank compensation.         5.5   Interest Payment Dates.  Interest on Loans to which the Base Rate Option applies  shall be due and payable in arrears on each Payment Date.  Interest on Loans to which the   {N0289348 2 }                      57   

 

   LIBOR Rate Option applies shall be due and payable on the last day of each Interest Period for  those Loans and, if such Interest Period is longer than three (3) Months, also on the 90th day of  such Interest Period.  Interest on mandatory prepayments of principal under Section 5.7  [Mandatory Prepayments] shall be due on the date such mandatory prepayment is due.  Interest  on the principal amount of each Loan or other monetary Obligation shall be due and payable on  demand after such principal amount or other monetary Obligation becomes due and payable  (whether on the stated Expiration Date, upon acceleration or otherwise).         5.6   Voluntary Prepayments.              5.6.1. Right to Prepay.  The Borrowers shall have the right at their option from  time to time to prepay the Loans in whole or part without premium or penalty (except as  provided in Section 5.6.2 [Replacement of a Lender] below, in Section 5.8 [Increased Costs] and  Section 5.10 [Indemnity]).  Whenever the Borrowers desire to prepay any part of the Loans, the  Administrative Borrower shall provide a prepayment notice to the Administrative Agent by 1:00  p.m. Eastern time at least one (1) Business Day prior to the date of prepayment of the Revolving  Credit Loans or Term Loans or no later than 1:00 p.m. Eastern time on the date of prepayment of  Swing Loans, setting forth the following information:                     (a)   the date, which shall be a Business Day, on which the proposed              prepayment is to be made;                    (b)   a statement indicating the application of the prepayment between              the Revolving Credit Loans, Term Loans and Swing Loans;                    (c)   a statement indicating the application of the prepayment between              Loans to which the Base Rate Option applies and Loans to which the LIBOR Rate              Option applies; and                    (d)   the total principal amount of such prepayment, which shall not be              less than $100,000 for any Swing Loan or $500,000 for any Term Loan.                    All prepayment notices shall be irrevocable.  The principal amount of the  Loans for which a prepayment notice is given, together with interest on such principal amount  except with respect to Loans to which the Base Rate Option applies, shall be due and payable on  the date specified in such prepayment notice as the date on which the proposed prepayment is to  be made.  All Term Loan prepayments permitted pursuant to this Section 5.6.1 [Right to Prepay]  shall be applied to unpaid installments of principal of the Term Loans as directed by the  Administrative Borrower and any principal amount of the Term Loan prepaid may not be  reborrowed.  Notwithstanding the application of any prepayments as directed by the  Administrative Borrower pursuant to this Section 5.6.1 [Right to Prepay], for purposes of  calculating any applicable Fixed Charge Coverage Ratio, such prepayments will be deemed to  have been applied in accordance with the requirements for the application of mandatory Term  Loan prepayments pursuant to Section 5.7 [Mandatory Prepayments].  Except as provided in  Section 4.4.4 [Administrative Agent’s and Lender’s Rights], if the Borrowers prepay a Loan but  fail to specify the applicable Borrowing Tranche which the Borrowers are prepaying, the  prepayment shall be applied (i) first to Revolving Credit Loans and then to Term Loans; and  (ii) after giving effect to the allocations in clause (i) above and in the preceding sentence, next to  Loans to which the Base Rate Option applies, then to Loans to which the LIBOR Rate Option   {N0289348 2 }                      58   

 

     applies.  Any prepayment hereunder shall be subject to the Borrowers’ Obligation to indemnify   the Lenders under Section 5.10 [Indemnity].              5.6.2. Replacement of a Lender.  In the event any Lender (i) gives notice under   Section 4.4 [LIBOR Rate Unascertainable, Etc.], (ii) requests compensation under Section 5.8  [Increased Costs], or requires the Borrower to pay any Indemnified Taxes or additional amount   to any Lender or any Official Body for the account of any Lender pursuant to Section 5.9   [Taxes], (iii) is a Defaulting Lender, (iv) becomes subject to the control of an Official Body  (other than normal and customary supervision), or (v) is a Non-Consenting Lender referred to in   Section 12.1 [Modifications, Amendments or Waivers], then in any such event the Borrowers   may, at their sole expense, 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 12.8 [Successors and Assigns]), all of   its interests, rights (other than existing rights to payments pursuant to Sections 5.8 [Increased   Costs] or 5.9 [Taxes]) and obligations under this Agreement and the related Loan Documents to   an assignee that shall assume such obligations (which assignee may be another Lender, if a   Lender accepts such assignment), provided that:                      (i)   the Borrowers shall have paid to the Administrative Agent the   assignment fee specified in Section 12.8 [Successors and Assigns];                      (ii)  such Lender shall have received payment of an amount equal to the   outstanding principal of its Loans and Participation Advances, accrued interest thereon, accrued   fees and all other amounts payable to it hereunder and under the other Loan Documents   (including any amounts under Section 5.10 [Indemnity]) from the assignee (to the extent of such  outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other   amounts);                       (iii) in the case of any such assignment resulting from a claim for   compensation under Section 5.8.1 [Increased Costs Generally] or payments required to be made   pursuant to Section 5.9 [Taxes], such assignment will result in a reduction in such compensation   or payments thereafter; and                      (iv)  such assignment does not conflict with applicable Law.    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 Borrowers to   require such assignment and delegation cease to apply.              5.6.3. Designation of a Different Lending Office.  If any Lender requests   compensation under Section 5.8 [Increased Costs], or the Borrowers are or will be required to   pay any Indemnified Taxes or additional amounts to any Lender or any Official Body for the   account of any Lender pursuant to Section 5.9 [Taxes], then such Lender shall (at the request of   the Borrowers) 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 reasonable judgment of such Lender, such designation or   assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.8 [Increased   Costs] or Section 5.9 [Taxes], as the case may be, in the future, and (ii) would not subject such    {N0289348 2 }                      59    

 

     Lender to any material unreimbursed cost or expense and would not otherwise be materially   disadvantageous to such Lender.  The Borrowers hereby agree to pay all reasonable costs and   expenses incurred by any Lender in connection with any such designation or assignment.         5.7   Mandatory Prepayments.               5.7.1. Sale of Assets.  If on any date the Borrowers or any of their Subsidiaries   shall receive net cash proceeds from (i) any Asset Sale, and the net cash proceeds of such Asset   Sale or the aggregate net cash proceeds of all Asset Sales in any fiscal year exceeds $250,000, or   (ii) any Recovery Event, and the net cash proceeds of such Recovery Event or the aggregate net   cash proceeds of all Recovery Events during any fiscal year exceeds $250,000, then all of such   net cash proceeds (and not merely such excess) shall be applied five (5) Business Days after such   date to the prepayment of the Term Loans as follows:  payments will first be applied pro rata to   the unpaid installments of principal of the Term Loans, without premium or penalty (subject to  payment of breakage costs in the case of a prepayment of Loans for which a LIBOR Rate Option  applies other than on the last day of the relevant interest period, or any other provision contained  in this Agreement) and then to reduce the outstanding Revolving Facility Usage, if any.  The  amount of any mandatory prepayments applied to principal of the Term Loans under this  Section 5.7.1 [Sale of Assets] may not be reborrowed.                 5.7.2. Maximum Borrowing Base Exceeded.  Whenever the outstanding   Revolving Facility Usage exceed the Maximum Borrowing Base, the Borrowers shall make,   within one (1) Business Day after the Borrowers learn of such excess and whether or not the   Administrative Agent has given notice to such effect, a mandatory prepayment of principal equal   to the excess of the outstanding principal balance of the Revolving Credit Loans over the   Maximum Borrowing Base, together with accrued interest on such principal amount.  If after   such prepayment the Revolving Facility Usage still exceeds the Maximum Borrowing Base, the   Borrowers shall cash collateralize such excess amount by pledging and depositing with or   delivering to Administrative Agent, for the benefit of each of the Lenders, as collateral for such   excess amount, cash or deposit account balances pursuant to documentation satisfactory to  Administrative Agent, which such cash collateral shall be maintained in blocked, non-interest  bearing deposit accounts at the Administrative Agent.  The Borrowers hereby grant to  Administrative Agent, for the benefit of each of the Lenders, a security interest in all cash  collateral pledged pursuant to this Section 5.7.2 [Maximum Borrowing Base Exceeded].                5.7.3. Excess Cash Flow.  Within ten (10) calendar days of delivery of the   Holdings’ audited consolidated year-end financial statements, but in any event no later than one   hundred twenty (120) calendar days after the end of each fiscal year commencing with the fiscal   year ending September 30, 2021, and continuing through the expiration of the term hereof, the   Borrowers shall make a mandatory prepayment of principal on the Term Loans (“Mandatory  Prepayment of Excess Cash Flow”) in an amount equal to:                 (a)   75% of Excess Cash Flow for the immediately preceding fiscal year if, at                     the time of determination, the Total Leverage Ratio of the Borrowers is                     greater than or equal to 2.5 to1.0;     {N0289348 2 }                      60    

 

                 (b)   50% of Excess Cash Flow for the immediately preceding fiscal year if, at                     the time of determination, the Total Leverage Ratio of the Borrowers is                     less than 2.5:1.0 but greater than or equal to 1.5 to 1.0; and                (c)   0% of Excess Cash Flow for the immediately preceding fiscal year if, at                     the time of determination, the Total Leverage Ratio of the Borrowers is                     less than 1.5 to1.0.           Each Mandatory Prepayment of Excess Cash Flow (i) shall be reduced by the aggregate   principal amount of all voluntary Term Loan prepayments made during the immediately   preceding fiscal year, and (ii) shall be applied pro rata to the unpaid installments of principal of   the Term Loans.  To the extent that a Mandatory Prepayment of Excess Cash Flow exceeds the   outstanding principal amount of the Term Loans, such prepayment shall be limited to the amount   necessary to prepay the Term Loans in full.  The amount of any Mandatory Prepayment of   Excess Cash Flow applied to principal of the Term Loan may not be reborrowed.               5.7.4. Equity Issuance; Indebtedness.  Within five (5) Business Days of:                      (i)   the issuance by Holdings of any Equity Interests (other than an   Excluded Equity Issuance), and continuing through the expiration of the term hereof, the   Borrowers shall make a mandatory prepayment of principal on the Term Loans in an amount   equal to the percentage set forth below of the net cash proceeds of the issuance of such Equity  Interests, together with accrued interest on such principal amount (each, a “Mandatory  Prepayment of Equity”):                     (a) 50% of such net cash proceeds if, at the time of issuance, the Total                       Leverage Ratio is equal to or greater than 2.0 to 1.0; and                     (b)   25% of such net cash proceeds if, at the time of issuance, the Total                       Leverage Ratio is less than 2.0 to 1.0.                     (ii)  the issuance by Holdings or any Borrower of any Indebtedness,  other than any Indebtedness permitted under Section 8.2.1 [Indebtedness], and continuing  through the expiration of the term hereof, the Borrowers shall make a mandatory prepayment of  principal on the Term Loans in an amount equal to 100% of the net cash proceeds of the issuance  of such Indebtedness, as applicable, together with accrued interest on such principal amount  (each, a “Mandatory Prepayment of Indebtedness”).                     (iii) Each Mandatory Prepayment of Equity or Mandatory Prepayment  of Indebtedness shall be applied pro rata to the unpaid installments of principal of the Term  Loans.  To the extent that a Mandatory Prepayment of Equity or Mandatory Prepayment of  Indebtedness exceeds the outstanding principal amount of the Term Loans, such prepayment  shall be limited to the amount necessary to prepay the Term Loans in full.  The amount of any  Mandatory Prepayment of Equity or Mandatory Prepayment of Indebtedness applied to principal  of the Term Loan may not be reborrowed.               5.7.5. Application Among Interest Rate Options.  All prepayments required   pursuant to this Section 5.7 [Mandatory Prepayments] shall first be applied among the Interest    {N0289348 2 }                      61    

 

     Rate Options to the principal amount of the Loans subject to the Base Rate Option, then to Loans   subject to a LIBOR Rate Option.  In accordance with Section 5.10 [Indemnity], the Borrowers   shall indemnify the Lenders for any loss or expense, including loss of margin, incurred with   respect to any such prepayments applied against Loans subject to a LIBOR Rate Option on any   day other than the last day of the applicable Interest Period.          5.8   Increased Costs.               5.8.1. 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 (except any reserve   requirement reflected in the LIBOR Rate) or the Issuing Lender;                      (ii)  subject any Recipient to any Taxes (other than (A) Indemnified   Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition of Excluded Taxes and   (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or   other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or                     (iii) impose on any Lender, the Issuing Lender or the London interbank  market any other condition, cost or expense (other than Taxes) affecting this Agreement or  Loans made by such Lender or any Letter of Credit or participation therein;    and the result of any of the foregoing shall be to increase the cost to such Lender or such other  Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its  obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Lender or  such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of  maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the  amount of any sum received or receivable by such Lender, the Issuing Lender or other Recipient  hereunder (whether of principal, interest or any other amount) then, upon request of such Lender,  the Issuing Lender or other Recipient, the Borrowers will pay to such Lender, the Issuing Lender  or other Recipient, as the case may be, such additional amount or amounts as will compensate  such Lender or the Issuing Lender, as the case may be, for such additional costs incurred or  reduction suffered.               5.8.2. Capital Requirements.  If any Lender or the Issuing Lender determines   that any Change in Law affecting such Lender or the Issuing Lender or any lending office of   such Lender or such Lender’s or the Issuing Lender’s holding company, if any, regarding capital   or liquidity requirements has or would have the effect of reducing the rate of return on such   Lender’s or the Issuing Lender’s capital or on the capital of such Lender’s or the Issuing   Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of   such Lender or the Loans made by, or participations in Letters of Credit or Swing Loans held by,   such Lender, or the Letters of Credit issued by the Issuing Lender, to a level below that which   such Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s holding company   could have achieved but for such Change in Law (taking into consideration such Lender’s or the   Issuing Lender’s policies and the policies of such Lender’s or the Issuing Lender’s holding   company with respect to capital adequacy), then from time to time the Borrowers will pay to    {N0289348 2 }                      62    

 

   such Lender or the Issuing Lender, as the case may be, such additional amount or amounts as  will compensate such Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s  holding company for any such reduction suffered.                5.8.3. Certificates for Reimbursement; Repayment of Outstanding Loans;  Borrowing of New Loans.  A certificate of a Lender or the Issuing Lender setting forth the  amount or amounts necessary to compensate such Lender or the Issuing Lender or its holding  company, as the case may be, as specified in Sections 5.8.1 [Increased Costs Generally] or 5.8.2  [Capital Requirements] and delivered to the Borrowers shall be conclusive absent manifest error.   The Borrowers shall pay such Lender or the Issuing Lender, as the case may be, the amount  shown as due on any such certificate within ten (10) days after receipt thereof.               5.8.4. Delay in Requests.  Failure or delay on the part of any Lender or the  Issuing Lender to demand compensation pursuant to this Section 5.8 [Increased Costs] shall not  constitute a waiver of such Lender’s or the Issuing Lender’s right to demand such compensation,  provided that the Borrowers shall not be required to compensate a Lender or the Issuing Lender  pursuant to this Section for any increased costs incurred or reductions suffered more than nine  months prior to the date that such Lender or the Issuing Lender, as the case may be, notifies the  Borrowers of the Change in Law giving rise to such increased costs or reductions and of such  Lender’s or the Issuing 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 nine (9)  month period referred to above shall be extended to include the period of retroactive effect  thereof).         5.9   Taxes.               5.9.1. Issuing Lender.  For purposes of this Section 5.9, the term “Lender”  includes the Issuing Lender and the term “applicable Law” includes FATCA.                5.9.2. Payments Free of Taxes.  Any and all payments by or on account of any  obligation of any Loan Party under any Loan Document shall be 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 applicable  Loan Party shall be increased as necessary so that after such deduction or withholding has been  made (including such deductions and withholdings applicable to additional sums payable under  this Section 5.9 [Taxes]) the applicable Recipient receives an amount equal to the sum it would  have received had no such deduction or withholding been made.              5.9.3. Payment of Other Taxes by the Loan Parties.  Without duplication of  other amounts payable by a Loan Party, the Loan Parties shall timely pay to the relevant Official  Body in accordance with applicable Law, or at the option of the Administrative Agent timely  reimburse it for the payment of, any Other Taxes.    {N0289348 2 }                      63   

 

              5.9.4. Indemnification by the Loan Parties.  The Loan Parties shall jointly and  severally indemnify each Recipient, within ten (10) calendar days after demand therefor, for the  full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or  attributable to amounts payable under this Section 5.9 [Taxes]) 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 Borrowers by a Lender (with a  copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf  of a Lender, shall be conclusive absent manifest error.               5.9.5. Indemnification by the Lenders for Taxes.  Each Lender shall severally  indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any  Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not  already indemnified the Administrative Agent for such Indemnified Taxes and without limiting  the obligation of any of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s  failure to comply with the provisions of Section 12.8.4 [Participations] relating to the  maintenance of a Participant Register, and (iii) any Excluded Taxes attributable to such Lender,  in each case, that are payable or paid by the Administrative Agent in connection with any Loan  Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not  such Taxes were correctly or legally imposed or asserted by the relevant Official Body.  A  certificate as to the amount of such payment or liability delivered to any Lender by the  Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes  the Administrative Agent to set off and apply any and all amounts at any time owing to such  Lender under any Loan Document or otherwise payable by the Administrative Agent to the  Lender from any other source against any amount due to the Administrative Agent under this  Section 5.9.5 [Indemnification by the Lenders for Taxes].               5.9.6. Evidence of Payments.  As soon as practicable after any payment of Taxes  by any Loan Party to an Official Body pursuant to this Section 5.9 [Taxes], such Loan Party shall  deliver to the Administrative 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 Administrative Agent.               5.9.7. Status of Recipients.                       (i)   Any Recipient that is entitled to an exemption from or reduction of  withholding Tax with respect to payments made under any Loan Document shall deliver to the  Borrowers and the Administrative Agent, at the time or times reasonably requested by the  Borrowers or the Administrative Agent, such properly completed and executed documentation  reasonably requested by the Borrowers or the Administrative Agent as will permit such  payments to be made without withholding or at a reduced rate of withholding.  In addition, any  Recipient, if reasonably requested by the Borrowers or the Administrative Agent, shall deliver  such other documentation prescribed by applicable Law or reasonably requested by the  Borrowers or the Administrative Agent as will enable the Borrowers or the Administrative Agent  to determine whether or not such Recipient is subject to backup withholding or information  reporting requirements.  Notwithstanding anything to the contrary in the preceding two   {N0289348 2 }                      64   

 

     sentences, the completion, execution and submission of such documentation (other than such   documentation set forth in Section 5.9.7(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if   in the Recipient’s reasonable judgment such completion, execution or submission would subject   such Recipient to any material unreimbursed cost or expense or would materially prejudice the   legal or commercial position of such Recipient.                     (ii)   Without limiting the generality of the foregoing, in the event that   each Borrower is a U.S. Borrower,                             (A)   any Recipient that is a U.S. Person shall deliver to the   Borrowers and the Administrative Agent on or prior to the date on which such Recipient   becomes a Recipient under this Agreement (and from time to time thereafter upon the reasonable   request of the Borrowers or the Administrative Agent), executed originals of IRS Form W-9   certifying that such Recipient is exempt from U.S. federal backup withholding tax;                            (B)   any Foreign Recipient shall, to the extent it is legally   entitled to do so, deliver to the Borrowers and the Administrative Agent (in such number of   copies as shall be requested by the recipient) on or prior to the date on which such Foreign   Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the   reasonable request of the Borrowers or the Administrative Agent), whichever of the following is   applicable:                                   (i)   in the case of a Foreign Recipient claiming the   benefits of an income tax treaty to which the United States is a party (x) with respect to payments   of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an   exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article   of such tax treaty and (y) with respect to any other applicable payments under any Loan   Document, IRS Form W-8BEN 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;                                  (iii) executed originals of IRS Form W-8ECI;                                   (iv)  in the case of a Foreign Recipient 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 5.9.7(A) to the effect that such Foreign Recipient is not (A) a   “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder”   of a Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled   foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance   Certificate”) and (y) executed originals of IRS Form W-8BEN; or                                   (v)   to the extent a Foreign Recipient is not the   beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI,  IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit   5.9.7(B) or Exhibit 5.9.7(C), IRS Form W-9, and/or other certification documents from each   beneficial owner, as applicable; provided that if the Foreign Recipient is a partnership and one or   more direct or indirect partners of such Foreign Recipient are claiming the portfolio interest     {N0289348 2 }                      65    

 

     exemption, such Foreign Recipient may provide a U.S. Tax Compliance Certificate substantially   in the form of Exhibit 5.9.7(D) on behalf of each such direct and indirect partner;                             (C)   any Foreign Recipient shall, to the extent it is legally  entitled to do so, deliver to the Borrowers and the Administrative Agent (in such number of  copies as shall be requested by the recipient) on or prior to the date on which such Foreign  Recipient becomes a Recipient under this Agreement (and from time to time thereafter upon the  reasonable request of the Borrowers or the Administrative Agent), executed originals 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 Borrowers or the Administrative Agent to  determine the withholding or deduction required to be made; and                           (D)   if a payment made to a Recipient under any Loan  Document would be subject to U.S. federal withholding Tax imposed by FATCA if such  Recipient 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  Recipient shall deliver to the Borrowers and the Administrative Agent at the time or times  prescribed by law and at such time or times reasonably requested by the Borrowers 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 Borrowers or the Administrative Agent as may be necessary for the Borrowers  and the Administrative Agent to comply with their obligations under FATCA and to determine  that such Recipient has complied with such Recipient’s obligations under FATCA or to  determine the amount to deduct and withhold from such payment.  Solely for purposes of this  clause (D), “FATCA” shall include any amendments made to FATCA after the date of this  Agreement.         Each Recipient 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 Borrowers and the Administrative Agent in writing of its legal inability to do  so.               5.9.8. 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 5.9 [Taxes] (including by the payment of additional   amounts pursuant to this Section 5.9 [Taxes]), 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 5.9   [Taxes] 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 incurred in connection with obtaining such refund, shall repay  to such indemnified party the amount paid over pursuant to this Section 5.9.8 [Treatment of  Certain Refunds] (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 5.9.8 [Treatment of Certain  Refunds]), in no event will the indemnified party be required to pay any amount to an    {N0289348 2 }                      66    

 

     indemnifying party pursuant to this Section 5.9.8 [Treatment of Certain Refunds] the payment of  which would place the indemnified party in a less favorable net after-Tax position than the  indemnified party would have been in if the Tax subject to indemnification and giving rise to  such refund had not been deducted, withheld or otherwise imposed and the indemnification  payments or additional amounts with respect to such Tax had never been paid.  This paragraph  shall not be construed to require any indemnified party to make available its Tax returns (or any  other information relating to its Taxes that it deems confidential) to the indemnifying party or  any other Person.               5.9.9. Survival.   Each party’s obligations under this Section 5.9 [Taxes] shall   survive the resignation of the Administrative Agent or any assignment of rights by, or the   replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or  discharge of all Obligations.          5.10  Indemnity.  In addition to the compensation or payments required by Section 5.8   [Increased Costs] or Section 5.9 [Taxes], the Borrowers shall indemnify each Lender against all   liabilities, losses or expenses (including loss of anticipated profits, any foreign exchange losses   and any loss or expense arising from the liquidation or reemployment of funds obtained by it to   maintain such Loan, from fees payable to terminate the deposits from which such funds were   obtained or from the performance of any foreign exchange contract, but, for the avoidance of   doubt, excluding Taxes) which such Lender sustains or incurs as a consequence of any:                     (i)   payment, prepayment, conversion or renewal of any Loan to which  a LIBOR Rate Option applies on a day other than the last day of the corresponding Interest  Period (whether or not such payment or prepayment is mandatory, voluntary or automatic and  whether or not such payment or prepayment is then due), or                     (ii)  attempt by the Borrowers to revoke (expressly, by later  inconsistent notices or otherwise) in whole or part any Loan Requests under Section 2.5  [Revolving Credit Loan Requests; Swing Loan Requests] or Section 4.2 [Interest Periods] or   notice relating to prepayments under Section 5.6 [Voluntary Prepayments].                      If any Lender sustains or incurs any such loss or expense, it shall from   time to time notify the Borrowers of the amount determined in good faith by such Lender (which   determination may include such assumptions, allocations of costs and expenses and averaging or   attribution methods as such Lender shall deem reasonable) to be necessary to indemnify such   Lender for such loss or expense.  Such notice shall set forth in reasonable detail the basis for   such determination.  Such amount shall be due and payable by the Borrowers to such Lender ten   (10) Business Days after such notice is given.          5.11  Settlement Date Procedures. In order to minimize the transfer of funds between   the Lenders and the Administrative Agent, the Borrowers may borrow, repay and reborrow  Swing Loans and FNB may make Swing Loans as provided in Section 2.1.2 [Swing Loan   Commitment] hereof during the period between Settlement Dates.  The Administrative Agent   shall notify each Lender of its Ratable Share of the total of the Revolving Credit Loans and the   Swing Loans (each a “Required Share”).  On such Settlement Date, each Lender shall pay to   the Administrative Agent the amount equal to the difference between its Required Share and its    {N0289348 2 }                      67    

 

     Revolving Credit Loans, and the Administrative Agent shall pay to each Lender its Ratable   Share of all payments made by the Borrowers to the Administrative Agent with respect to the   Revolving Credit Loans.  The Administrative Agent shall also effect settlement in accordance   with the foregoing sentence on the proposed Borrowing Dates for Revolving Credit Loans and   on any mandatory prepayment date as provided for herein and may at its option effect settlement   on any other Business Day.  These settlement procedures are established solely as a matter of   administrative convenience, and nothing contained in this Section 5.11 shall relieve the Lenders   of their obligations to fund Revolving Credit Loans on dates other than a Settlement Date  pursuant to Section 2.1.2 [Swing Loan Commitment].  The Administrative Agent may at any  time at its option for any reason whatsoever require each Lender to pay immediately to the   Administrative Agent such Lender’s Ratable Share of the outstanding Revolving Credit Loans   and each Lender may at any time require the Administrative Agent to pay immediately to such   Lender its Ratable Share of all payments made by the Borrowers to the Administrative Agent   with respect to the Revolving Credit Loans.           5.12  Receipt and Application of Payments.  On the earliest date reasonable practicable,   and in no event more that fifteen (15) days following the Closing Date (such date, the   “Transition Date”), each Loan Party shall establish and maintain a depository account with the   Administrative Agent, subject to the provisions of this Section 5.12 [Receipt and Application of   Payments], such other provisions as the Administrative Agent may require and such other related   agreements as the Administrative Agent may require (the “Cash Collateral Account”).  From   and after the occurrence of an Event of Default, each Loan Party, upon request by the  Administrative Agent, shall promptly establish with the Administrative Agent and maintain a  lockbox account (“Lockbox”) subject to the provisions of this Section 5.12 [Receipt and  Application of Payments], such other provisions as the Administrative Agent may require, and  such other related agreements as the Administrative Agent may require.  For all contracts  awarded to any Loan Party after the Transition Date, including new contracts awarded by current  Account Debtors, all individual task orders and delivery orders awarded to any Loan Party after  the Transition Date on contracts in existence on the Transition Date, and all option period  extensions of contracts in existence on the Transition Date (each a “New Contract”), such Loan  Party shall notify and direct such Account Debtors to remit payments directly to Cash Collateral  Account or the Lockbox, as the case may be.  Any funds collected in the Lockbox (if any) shall  be transferred to the Cash Collateral Account.  Each Loan Party shall designate the Cash  Collateral Account in the federal System for Award Management (formerly the Central  Contractor Registration) as the account to receive payments due from the Government with  respect to New Contracts.  Following the Transition Date, each Loan Party will cooperate with  the Administrative Agent on an orderly basis and use commercially reasonable efforts such that  as soon as reasonably practicable after the Transition Date, but in no event later than one  hundred eighty (180) days after the Closing Date, all contracts in existence on the Transition  Date shall be subject to the requirements set forth herein applicable to New Contracts, and after  the date a contract in existence on the Transition Date becomes subject to the requirements  applicable to New Contracts, it shall thereafter constitute a New Contract.  In the event any Loan  Party (or any of its Affiliates, shareholders, directors, officers, employees, Administrative Agents  or those Person acting for or in concert with any other Loan Party) shall receive any cash,  checks, notes, drafts or other similar items of payment relating to or constituting the Collateral  (or proceeds thereof), no later than the first Business Day following receipt thereof, such Loan  Party shall (i) deposit or cause the same to be deposited, in kind, in the Cash Collateral Account    {N0289348 2 }                      68    

 

     or the Lockbox, as applicable, or such other depository as may be designated in writing by the   Administrative Agent (the “Depository”), from which account the Administrative Agent alone   shall have sole power of withdrawal, and with respect to which the Depository shall waive any   rights of set off, and (ii) forward to the Administrative Agent on a daily basis, a collection report   in form and substance satisfactory to the Administrative Agent and, at the Administrative   Agent’s request, copies of all such items and deposit slips related thereto.  All cash, notes,   checks, drafts or similar items of payment by or for the account of any Loan Party shall be the   sole and exclusive property of the Lenders immediately upon the earlier of the receipt of such   items by the Administrative Agent or the Depository or the receipt of such items by any Loan   Party; provided, however, that for the purpose of computing interest hereunder such items shall   be deemed to have been collected and shall be applied by the Administrative Agent on account  of the Revolving Credit Loans one (1) Business Day after receipt by the Administrative Agent  (subject to correction for any items subsequently dishonored for any reason whatsoever).   Notwithstanding anything to the contrary herein, all such items of payment shall, solely for  purposes of determining the occurrence of an Event of Default, be deemed received upon actual  receipt by the Administrative Agent, unless the same are subsequently dishonored for any reason   whatsoever.  All funds in the Cash Collateral Account, including all payments made by or on   behalf of and all credits due any Loan Party, may be applied and reapplied in whole or in part to   any of the Loans to the extent and in the manner the Administrative Agent deems advisable.           5.13  Collections; Administrative Agent’s Right to Notify Account Debtors.  Each Loan   Party hereby authorizes the Administrative Agent, now and at any time or times hereafter, to   (i) notify any or all Account Debtors that the Receivables with respect to New Contracts have   been assigned to the Lenders and that the Lenders have a security interest therein, and (ii) direct   such Account Debtors to make all payments due from them to the Loan Parties upon such   Receivables directly to the Cash Collateral Account or to the Lockbox, as applicable.  Any such   notice, in the Administrative Agent’s sole discretion, may be sent on the applicable Loan Party’s   stationery, in which event the Loan Party shall co-sign such notice with the Administrative   Agent.  To the extent that any Law or custom or any contract or agreement with any Account   Debtor requires notice to or the approval of the Account Debtor in order to perfect such   assignment of a security interest in Receivables, each Loan Party agrees to give such notice or   obtain such approval.          5.14  Joint and Several Liability.  The liability of the Borrowers for all of the   Obligations shall be joint and several regardless of which Borrower actually receives Loans or   other extensions of credit hereunder or the amount of such Loans received or the manner in   which the Administrative Agent and the Lenders account for such Loans or other extensions of   credit on their respective books and records. Each Borrower acknowledges that its Obligations   arising as a result of joint and several liability shall, to the full extent permitted by law, be   unconditional and shall constitute primary obligations of such Borrower.    6. REPRESENTATIONS AND WARRANTIES          6.1   Representations and Warranties.  The Loan Parties, jointly and severally,   represent and warrant to the Administrative Agent and each of the Lenders as follows:     {N0289348 2 }                      69    

 

                6.1.1. Organization and Qualification; Power and Authority; Compliance with   Laws; Title to Properties; Event of Default.  Each Loan Party and each Subsidiary of each Loan   Party (i) is a corporation, partnership or limited liability company duly organized, validly   existing and in good standing under the laws of its jurisdiction of organization, (ii) has the lawful   power to own or lease its properties and to engage in the business it presently conducts or   proposes to conduct, (iii) is duly licensed or qualified and in good standing in all jurisdictions   where the property owned or leased by it or the nature of the business transacted by it or both   makes such licensing or qualification necessary, except where the failure to be so licensed or   qualified would not be reasonably expected to constitute a Material Adverse Change, (iv) has full   power to enter into, execute, deliver and carry out this Agreement and the other Loan Documents  to which it is a party, to incur the Indebtedness contemplated by the Loan Documents and to  perform its Obligations under the Loan Documents to which it is a party, and all such actions  have been duly authorized by all necessary proceedings on its part, (v) is in compliance in all  material respects with all applicable Laws (other than Environmental Laws which are  specifically addressed in Section 6.1.13 [Environmental Matters]) in all jurisdictions in which  any Loan Party or Subsidiary of any Loan Party is presently or will be doing business except  where the failure to do so would not constitute a Material Adverse Change, and (vi) has good and  marketable title to or valid leasehold interest in all properties, assets and other rights which it  purports to own or lease or which are reflected as owned or leased on its books and records, free  and clear of all Liens and encumbrances except Permitted Liens.  No Event of Default or  Potential Default exists or is continuing.                 6.1.2. Subsidiaries and Owners; Investment Companies.  Schedule 6.1.2 states   (i) the name of each of Holdings’ Subsidiaries (including the Subsidiary Borrowers) and each   wholly-owned Subsidiary of the Subsidiary Borrowers, its jurisdiction of organization and the   amount, percentage and type of Equity Interests in such Subsidiary (collectively the “DLH   Equity Interests”).  Holdings and each Subsidiary of Holdings (including the Subsidiary   Borrowers and their respective Subsidiaries) has good and marketable title to all of the DLH   Equity Interests it purports to own, free and clear in each case of any Lien (other than Permitted   Liens) and all such Equity Interests have been validly issued, fully paid and nonassessable.    Neither the Loan Parties nor any Subsidiary of a Loan Party is an “investment company”   registered or required to be registered under the Investment Company Act of 1940 or under the   “control” of an “investment company” as such terms are defined in the Investment Company Act   of 1940.                 6.1.3. Validity and Binding Effect.  This Agreement and each of the other Loan   Documents (i) has been duly and validly executed and delivered by each Loan Party, and (ii)   constitutes, or will constitute, legal, valid and binding obligations of each Loan Party which is or   will be a party thereto, enforceable against such Loan Party in accordance with its terms.  The   Acquisition Documents have been duly and validly executed and delivered by the parties thereto   and constitute the legal, valid and binding obligations of the parties thereto, in each case   enforceable against them in accordance with their respective terms, except to the extent that   enforceability may be limited by Debtor Relief Laws.  Holdings has delivered to the   Administrative Agent for delivery to the Lenders a true and correct copy of the Acquisition   Documents (which constitute all of the material agreements with respect to the Acquisition), and   there has been no other amendment, waiver or modification of the Acquisition Documents.  All   representations and warranties of Holdings and, to the best of the Holdings’ knowledge, of the    {N0289348 2 }                      70    

 

   other parties to the Acquisition Documents contained in the Acquisition Documents are true and  correct in all material respects.  Upon consummation of the Acquisition and thereafter, Holdings  shall own all of the issued and outstanding equity interests of IBA and Danya and shares of  capital stock of Systems and Solutions, and each Subsidiary Borrower shall immediately after the  Acquisition own all of the tangible and intangible personal property that it owned immediately  prior to the Acquisition, except as expressly set forth in the Equity Purchase Agreement.              6.1.4. No Conflict; Material Agreements.  Neither the execution and delivery of  this Agreement or the other Loan Documents or the Acquisition Documents by any Loan Party  nor the consummation of the transactions herein or therein contemplated or compliance with the  terms and provisions hereof or thereof by any of them will conflict with, constitute a default  under or result in any breach of (i) the terms and conditions of the certificate of incorporation,  bylaws, certificate of limited partnership, partnership agreement, certificate of formation, limited  liability company agreement or other organizational documents of any Loan Party or (ii) except  as set forth on Schedule 6.1.4 hereto, any Law or any material agreement or instrument or order,  writ, judgment, injunction or decree to which any Loan Party or any of its Subsidiaries is a party  or by which it or any of its Subsidiaries is bound or to which it is subject, or result in the creation  or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or  hereafter acquired) of any Loan Party or any of its Subsidiaries (other than Liens granted under  the Loan Documents), except, in each case, any breach that would not be reasonably be expected  to result in a Material Adverse Change.  There is no default under such material agreement  (referred to above) and none of the Loan Parties or their Subsidiaries is bound by any contractual  obligation, or subject to any restriction in any organization document, or any requirement of Law  which could result in a Material Adverse Change.              6.1.5. Litigation.  There are no actions, suits, proceedings or investigations  pending or, to the knowledge of any Loan Party, threatened against such Loan Party or any  Subsidiary of such Loan Party at law or in equity before any Official Body which individually or  in the aggregate would reasonably be expected to result in any Material Adverse Change.  None  of the Loan Parties or any Subsidiaries of any Loan Party is in violation of any order, writ,  injunction or any decree of any Official Body which would reasonably be expected to result in  any Material Adverse Change.              6.1.6. Financial Statements.                     (i)   Historical Statements.  Holdings has delivered to the  Administrative Agent copies of Holdings’ audited consolidated year-end financial statements for  and as of the end of the three (3) immediately preceding fiscal years.  In addition, Holdings has  delivered to the Administrative Agent copies of its unaudited consolidated interim financial  statements for the fiscal year to date and as of the end of the fiscal quarter ended June 30, 2020  (all such annual and interim statements being collectively referred to as the “Statements”).  The  Statements were compiled from the books and records maintained by Borrower’s management,  are correct and complete and fairly present in all material respects the consolidated financial  condition of Holdings and its Subsidiaries as of the respective dates thereof and the results of  operations for the fiscal periods then ended and have been prepared in accordance with GAAP  consistently applied, subject (in the case of the interim statements) to normal year-end audit  adjustments and the absence of footnotes.   {N0289348 2 }                      71   

 

                           (ii)  Accuracy of Financial Statements.  Neither the Borrowers  nor any Subsidiary of the Borrowers has any liabilities, contingent or otherwise, or forward or  long-term commitments that are not disclosed in the Statements or in the notes thereto, and  except as disclosed therein there are no unrealized or anticipated losses from any commitments  of the Borrowers or any Subsidiary of the Borrowers which would be reasonably expected to  cause a Material Adverse Change.  Since June 30, 2020, no Material Adverse Change has  occurred.              6.1.7. Margin Stock.  None of the Loan Parties or any Subsidiaries of any Loan  Party engages or intends to engage principally, or as one of its important activities, in the  business of extending credit for the purpose, immediately, incidentally or ultimately, of  purchasing or carrying margin stock (within the meaning of Regulation U, T or X as  promulgated by the Board of Governors of the Federal Reserve System).  No part of the proceeds  of any Loan has been or will be used, immediately, incidentally or ultimately, to purchase or  carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any  margin stock or which is inconsistent with the provisions of the regulations of the Board of  Governors of the Federal Reserve System.  None of the Loan Parties or any Subsidiary of any  Loan Party holds or intends to hold margin stock in such amounts that more than 25% of the  reasonable value of the assets of any Loan Party or Subsidiary of any Loan Party are or will be  represented by margin stock.              6.1.8. Full Disclosure.  Neither this Agreement nor any other Loan Document,  nor any of the Acquisition Documents, nor any certificate, statement, agreement or other  documents expressly referenced herein and furnished to the Administrative Agent or any Lender  in connection herewith or therewith, contains any untrue statement of a material fact or omits to  state a material fact necessary in order to make the statements contained herein and therein, in  light of the circumstances under which they were made, not misleading; it being understood for  purposes of this Section 6.1.8 [Full Disclosure] that projections prepared in good faith and based  on reasonable assumptions and pro forma financial information or information of a general  economic or general industry nature are excluded from the foregoing representation.              6.1.9. Taxes.  Except as would not be reasonably expected to result in a Material  Adverse Change, all federal, state, local and other tax returns required to have been filed with  respect to each Loan Party and each Subsidiary of each Loan Party have been filed (taking into  account any valid extensions), and payment or adequate provision has been made for the  payment of all taxes, fees, assessments and other governmental charges which have or may  become due pursuant to said returns or to assessments received, except to the extent that such  taxes, fees, assessments and other charges are being contested in good faith by appropriate  proceedings diligently conducted and for which such reserves or other appropriate provisions, if  any, as shall be required by GAAP shall have been made.                6.1.10. Patents, Trademarks, Copyrights, Licenses, Etc.  Each Loan Party and  each Subsidiary of each Loan Party owns or possesses all the material patents, trademarks,  service marks, trade names, copyrights, licenses, registrations, franchises, permits and rights  necessary to own and operate its properties and to carry on its business as presently conducted  and planned to be conducted by such Loan Party or Subsidiary, without known possible, alleged    {N0289348 2 }                      72   

 

     or actual conflict with the rights of others, except as would not be reasonably expected to result   in a Material Adverse Change.               6.1.11. Insurance.  The properties of each Loan Party and each of its Subsidiaries   are insured pursuant to policies and other bonds which are valid and in full force and effect and   which provide adequate coverage from reputable and financially sound insurers in amounts   sufficient to insure the assets and risks of each such Loan Party and Subsidiary in accordance   with prudent business practice in the industry of such Loan Parties and Subsidiaries.               6.1.12. ERISA Compliance.  (i)  Except as would not result in a Material Adverse   Change, each Pension Plan is in compliance in with the applicable provisions of ERISA, the  Code and other federal or state Laws; (ii) except as would not result in a Material Adverse  Change, each Pension Plan that is intended to qualify under Section 401(a) of the Code has  received a favorable determination letter from the IRS or an application for such a letter is  currently being processed by the IRS with respect thereto and, to the best knowledge the  Borrowers, nothing has occurred which would prevent, or cause the loss of, such qualification;  (iii) each Loan Party and each ERISA Affiliate have made all required contributions to each  Pension Plan subject to Section 412 of the Code, and no application for a funding waiver or an  extension of any amortization period pursuant to Section 412 of the Code has been made with  respect to any Pension Plan; (iv) except as would not result in a Material Adverse Change,   [TBD] no ERISA Event has occurred or is reasonably expected to occur; (v) no Pension Plan or   Multiemployer Plan has any unfunded pension liability (i.e. excess of benefit liabilities over the  current value of that Pension Plan’s or Multiemployer Plan’s assets, determined in accordance  with the assumptions used for funding the Pension Plan or Multiemployer Plan for the applicable  plan year); (vi) neither any Loan Party nor any ERISA Affiliate has incurred, or reasonably  expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other   than premiums due and not delinquent under Section 4007 of ERISA); (vii) neither any Loan   Party nor any ERISA Affiliate 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 Sections 4201 or 4203 of ERISA with respect to a Multiemployer Plan;   and (viii) neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that could   be subject to Sections 4069 or 4212(c) of ERISA. No Loan Party nor any Subsidiary of a Loan  Party has, or could reasonably be expected to have, any liability for any breach of fiduciary   duties under Section 404 of ERISA or any non-exempt prohibited transaction under Section 406   or 407 of ERISA or Section 4975 of the Code with respect to any “employee benefit plan” (as   defined under section 3(3) of ERISA), including without limitation the ESOP, except those that   could not, individually or in the aggregate, reasonably be expected to result in a Material   Adverse Change.  Each Loan Party and each Subsidiary of a Loan Party has been in compliance   with the requirements of ERISA and the Code with respect to the ESOP, and the ESOP has met   the qualification requirements of Section 401(a) of the Code, except where the failure to so   comply could not, individually or in the aggregate, reasonably be expected to result in a Material   Adverse Change.               6.1.13. Environmental Matters.  Each Loan Party is and, to the knowledge of   each respective Loan Party and each of its Subsidiaries is and has been in compliance with   applicable Environmental Laws except as would not in the aggregate reasonably be expected to   result in a Material Adverse Change.    {N0289348 2 }                      73    

 

              6.1.14. Solvency.  Before and after giving effect to the initial Loans hereunder  and the Transactions, each of the Loan Parties is solvent.  After giving effect to the transactions  contemplated by the Loan Documents and the Acquisition Documents, including all  Indebtedness incurred thereby, the Liens granted by the Borrowers in connection with the Loan  Documents and the payment of all fees related thereto, each of the Loan Parties will be Solvent,  determined as of the Closing Date.         6.2   Anti-Money Laundering/International Trade Law Compliance.  No Covered  Entity  (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country in violation of  any law, regulation, order or directive enforced by any Compliance Authority or has any assets  in the possession, custody or control of a Sanctioned Person; or (iii) does business in or with, or  derives any of its operating income from investments in or transactions with, any Sanctioned  Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by  any Compliance Authority.  In addition to the foregoing, each of the Loan Parties represents and  warrants that (i) the proceeds of the Loans will not be used to fund any operations in, finance any  investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned  Person in violation of any law, regulation, order or directive enforced by any Compliance  Authority; (ii) the funds used to repay the Loans are not derived from any unlawful activity; and  (iii) each Covered Entity is in compliance with, and no Covered Entity  engages in any dealings  or transactions prohibited by, any laws of the United States, including but not limited to any  Anti-Terrorism Laws.   7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT         The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters  of Credit hereunder is subject to the performance by each of the Loan Parties of its Obligations  to be performed hereunder at or prior to the making of any such Loans or issuance of such  Letters of Credit and to the satisfaction of the following further conditions:         7.1   First Loans and Letters of Credit.              7.1.1. Deliveries.  On the Closing Date and immediately following  consummation of the Acquisition, the Administrative Agent shall have received, or the  Borrowers shall satisfy, each of the following in form and substance satisfactory to the  Administrative Agent:               (i)   Certified copies of the Acquisition Documents (including all amendments,  supplements, schedules and exhibits thereto), which shall provide for an aggregate cash purchase  price at closing not to exceed an amount of $32,000,000 (excluding Transaction Expenses);              (ii)  Evidence satisfactory to the Administrative Agent that as of the Closing  Date: (a) Total Funded Debt does not exceed $84,000,000.              (iii)  A certificate of each of the Loan Parties signed by an Authorized Officer,  dated the Closing Date stating that (w) all representations and warranties of the Loan Parties set  forth in this Agreement are true and correct in all material respects (except (i) to the extent that  such representations and warranties specifically refer to an earlier date, in which case they shall  be true and correct in all material aspects as of such earlier date and (ii) to the extent that such  representations and warranties are qualified as to materiality, in which case they shall be true   {N0289348 2 }                      74   

 

   and correct in all respects), (x) the Loan Parties are in compliance with each of the covenants  and conditions hereunder, (y) no Event of Default or Potential Default exists, and (z) no  Material Adverse Change has occurred since the date of the last audited financial statements of  the Borrowers delivered to the Administrative Agent;              (iv)  A certificate dated the Closing Date and signed by the Secretary or an  Assistant Secretary of each of the Loan Parties, certifying as appropriate as to: (a) all action  taken by each Loan Party in connection with this Agreement and the other Loan Documents; (b)  the names of the Authorized Officers authorized to sign the Loan Documents and their true  signatures; and (c) copies of its organizational documents as in effect on the Closing Date  certified by the appropriate state official where such documents are filed in a state office  together with certificates from the appropriate state officials as to the continued existence and  good standing of each Loan Party in each state where organized or qualified to do business;              (v)   This Agreement and each of the other Transaction Documents signed by  an Authorized Officer and all appropriate financing statements and appropriate stock powers  and certificates evidencing the pledged Collateral;              (vi)  A written opinion of counsel for the Loan Parties, dated the Closing Date,  in form and substance acceptable to the Administrative Agent and its counsel;              (vii) Evidence that adequate insurance, including flood insurance, if applicable,  required to be maintained under this Agreement is in full force and effect, with additional  insured, mortgagee and lender loss payable special endorsements attached thereto in form and  substance satisfactory to the Administrative Agent and its counsel naming the Administrative  Agent as additional insured, mortgagee and lender loss payee;              (viii) Reserved;              (ix)  A duly completed Compliance Certificate as of the last day of the fiscal  quarter of Borrowers most recently ended prior to the Closing Date, signed by an Authorized  Officer of Borrowers, setting forth pro-forma compliance with financial covenants as of the  Closing Date;              (x)   Audited financial statements of the Borrowers and the Borrowers’  Subsidiaries, prepared in accordance with GAAP, for the fiscal year ended September 30, 2019;              (xi)  Evidence that any existing credit agreements, and the obligations  thereunder, have been terminated, and all outstanding commitments and obligations thereunder  have been paid and all Liens securing such obligations have been released;              (xii) A Lien search in acceptable scope and with acceptable results;              (xiii) Evidence of regulatory approvals and licenses necessary for the Loans and  Acquisition and absence of any legal or regulatory prohibitions or restrictions on the financing  or the Acquisition;               (xiv) Consummation of the Acquisition on terms and conditions as set forth in  the Acquisition Documents, which shall not have been amended or any provisions thereof  waived without the consent of the Administrative Agent;                (xv)  A Borrowing Base Certificate prepared as of the last day of the month  immediately preceding the Closing Date, establishing that the Maximum Borrowing Base as of  the Closing Date is at least [$20,000,000];    {N0289348 2 }                      75   

 

               (xvi) Evidence of no Material Adverse Effect (as defined in the Equity Purchase  Agreement) with respect to IBA since the date of the Equity Purchase Agreement;             (xvii) Evidence of no ERISA or labor matters affecting any Loan Party or any  ERISA Affiliate;                                                                (xviii) An executed landlord’s waiver or other lien waiver agreement from the  lessor, warehouse operator or other applicable Person for each leased Collateral location as  required under the Amended and Restated Security Agreement;               (xix) Receipt of a quality of earnings report in form and substance satisfactory  to the Administrative Agent and the Lenders in their sole discretion;                (xx)  Satisfactory diligence of all environmental, intellectual property, legal,  regulatory and contingent liability matters and satisfactory diligence of all business and credit  matters, in each case as determined by the Administrative Agent and the Lenders in their  reasonable discretion;             (xxi) Satisfactory results of all “know your customer”, “anti-money laundering”  and “OFAC” due diligence of the Borrowers and their Subsidiaries and certain officers and  employees thereof as reasonably determined by the Administrative Agent and the Lenders, and  compliance with all requirements of the USA Patriot Act and all Anti-Terrorism Laws; and               (xxii) Such other documents and conditions in connection with such transactions  as the Administrative Agent may reasonably request.             7.1.2. Payment of Fees.  The Borrowers shall have paid all fees and expenses  payable on or before the Closing Date as required by this Agreement, the Engagement Letter or  any other Loan Document.        7.2   Each Loan or Letter of Credit.  At the time of making any Loans or issuing,  extending or increasing any Letters of Credit and after giving effect to the proposed extensions  of credit: (i) all representations and warranties of the Loan Parties set forth in this Agreement are  true and correct in all material respects (except (x) to the extent that such representations and  warranties specifically refer to an earlier date, in which case they shall be true and correct in all  material aspects as of such earlier date and (y) to the extent that such representations and  warranties are qualified as to materiality, in which case they shall be true and correct in all  respects), (ii) no Event of Default or Potential Default shall have occurred and be continuing,  (iii) the making of the Loans or issuance, extension or increase of such Letter of Credit shall not  contravene any Law applicable to any Loan Party or Subsidiary of any Loan Party or any of the  Lenders, and (iv) the Administrative Borrower shall have delivered to the Administrative Agent  a duly executed and completed Loan Request or to the Issuing Lender an application for a Letter  of Credit, as the case may be.   8. COVENANTS         The Loan Parties, jointly and severally, covenant and agree that until Payment In Full, the  Loan Parties shall comply at all times with the following covenants:     {N0289348 2 }                      76   

 

           8.1   Affirmative Covenants.                 8.1.1. Preservation of Existence, Etc.  Each Loan Party shall, and shall cause   each of its Subsidiaries to, maintain its legal existence as a corporation, limited partnership or   limited liability company and its license or qualification and good standing in each jurisdiction in   which its ownership or lease of property or the nature of its business makes such license or   qualification necessary, except as otherwise expressly permitted in Section 8.2.7 [Liquidations,   Mergers, Consolidations] and, with respect to being so licensed or qualified, except as would not   be reasonably expected to result in a Material Adverse Change.  Following the date hereof, the   Borrowers (a) shall cause the Dormant Subsidiaries to take no action (including incurring any   liabilities, acquiring any assets, or engaging in any operations); and (b) shall within forty- five (45) calendar days following the Closing Date either: (i) complete the liquidation and   dissolution of each Dormant Subsidiary, or (ii) deliver to the Administrative Agent (A) a signed   Guarantor Joinder; (B) documents in the forms described in Section 7.1 [First Loans and Letters   of Credit] modified as appropriate; and (C) documents necessary to grant and perfect Prior   Security Interests to the Administrative Agent for the benefit of the Lenders in the equity   interests of, and Collateral held by, any Dormant Subsidiary not liquidated and dissolved   pursuant to clause (i).               8.1.2. Payment of Liabilities, Including Taxes, Etc.  Each Loan Party shall, and   shall cause each of its Subsidiaries to, duly pay and discharge all liabilities to which it is subject   or which are asserted against it, promptly as and when the same shall become due and payable,   including all taxes, assessments and governmental charges upon it or any of its properties, assets,  income or profits, prior to the date on which penalties attach thereto, except to the extent that  such liabilities, including taxes, assessments or charges, are being contested in good faith and by  appropriate and lawful proceedings diligently conducted and for which such reserve or other  appropriate provisions, if any, as shall be required by GAAP shall have been made.               8.1.3. Maintenance of Insurance.  Each Loan Party shall, and shall cause each of   its Subsidiaries to, insure its properties and assets against loss or damage by fire and such other   insurable hazards as such assets are commonly insured (including fire, extended coverage,   property damage, workers’ compensation, public liability and business interruption insurance)   and against other risks (including errors and omissions) in such amounts as similar properties and   assets are insured by prudent companies in similar circumstances carrying on similar businesses,   and with reputable and financially sound insurers, including self-insurance to the extent  customary, all as reasonably determined by the Administrative Agent.  The Loan Parties shall  comply with the covenants and provide the endorsement set forth on Schedule 8.1.3 relating to   property and related insurance policies covering the Collateral.                8.1.4. Maintenance of Properties and Leases.  Each Loan Party shall, and shall   cause each of its Subsidiaries to, maintain in good repair, working order and condition (ordinary   wear and tear excepted) in accordance with the general practice of other businesses of similar   character and size, all of those properties useful or necessary to its business, except to the extent   the failure to do so would not be reasonably expected to result in a Material Adverse Change.               8.1.5. Visitation Rights.       {N0289348 2 }                      77    

 

                       (i)   Each Loan Party shall, and shall cause each of its Subsidiaries to,   permit any of the officers or authorized employees or representatives of the Administrative  Agent or any of the Lenders to visit and inspect any of its properties and to examine and make  excerpts from its books and records and discuss its business affairs, finances and accounts with  its officers, all in such detail and, subject to the proviso at the end of paragraph (ii) of this   Section 8.1.5, at such times and as often as any of the Administrative Agent may reasonably   request, provided that the Administrative Agent shall provide the Borrowers with reasonable   notice prior to any visit or inspection.                        (ii)  The Administrative Agent shall have the right, at any time and   from time to time, upon reasonable prior notice, to conduct field audits, examinations or   appraisals with respect to the Collateral and each Loan Party’s accounts receivable, inventory,   business and operations, as and when the Administrative Agent reasonably deems necessary or   appropriate, in its sole discretion; provided, that in the absence of a Potential Default, the right of   the Administrative Agent to conduct visitations, inspections, field audits, examinations and   appraisals shall be limited to conducting a maximum of two (2) visitations, inspections, field   audits, examinations or appraisals during any twelve (12) month period (except that the   Administrative Agent shall conduct a field audit, examination or appraisal in connection with the   joinder of a new “Borrower” or “Guarantor” hereunder).                      (iii) The costs incurred by the Administrative Agent in connection with   any such visit, inspection, field audit, examination or appraisal shall be borne by the Borrower   and payable upon demand.  However, in the absence of an Event of Default, the Borrower’s   maximum liability for visitation, inspection, field audit, examination and appraisal costs and   expenses shall be limited to the costs and expenses of only two (2) visitations, inspections, field   audits, examinations or appraisals conducted during any twelve (12) month period (unless the   Administrative Agent shall conduct a field audit, examination or appraisal in connection with the   joinder of a new “Borrower” or “Guarantor” hereunder, in which event the Borrowers shall be   liable for the costs and expenses of such field audit, examination or appraisal as well).  Any and   all field audits, examinations or appraisals conducted following and during the continuance of an   Event of Default shall be at the Borrowers’ cost and expense, with the foregoing limitation on   maximum costs and expenses being inapplicable during such period.                      (iv)  Notwithstanding anything to the contrary in this Section 8.1.5   [Visitation Rights], none of the Borrowers or any of their respective 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 (i) constitutes non-financial trade secrets or non-  financial proprietary information (unless the recipient of such document, information or other   matter is subject to confidentiality obligations reasonably acceptable to the Borrowers), (ii) in   respect of which disclosure to the Administrative Agent or any Lender (or their respective   representatives or contractors) is prohibited by Law or (iii) is subject to attorney-client privilege   or constitutes attorney work product.               8.1.6. Keeping of Records and Books of Account; Depository Accounts.                        (a)   Holdings shall, and shall cause each of its Subsidiaries to, maintain   and keep proper books of record and account which enable Holdings to issue consolidated    {N0289348 2 }                      78    

 

   financial statements in accordance with GAAP and as otherwise required by applicable Laws of  any Official Body having jurisdiction over Holdings or any of its Subsidiaries, and in which full,  true and correct entries shall be made in all material respects of all its dealings and business and  financial affairs.                     (b)   Each of the Loan Parties shall establish and maintain at FNB its  primary treasury and depository accounts, including money market accounts, sweep accounts  and certificates of deposit.               8.1.7. Compliance with Laws; Use of Proceeds.  Each Loan Party shall, and  shall cause each of its Subsidiaries to, comply with all applicable Laws, including all  Environmental Laws, in all respects, except to the extent the failure to do so would not result in a  Material Adverse Change.  The Loan Parties will use the Letters of Credit and the proceeds of  the Loans only in accordance with Section 2.8 [Use of Proceeds] and as permitted by applicable  Law.              8.1.8. Further Assurances.  Each Loan Party shall, from time to time, at its  expense, faithfully preserve and protect the Administrative Agent’s Lien on and Prior Security  Interest in the Collateral and all other real and personal property of the Loan Parties whether now  owned or hereafter acquired as a continuing first priority perfected Lien, subject only to  Permitted Liens, and shall do such other acts and things as the Administrative Agent in its sole  discretion may deem necessary or advisable from time to time in order to preserve, perfect and  protect the Liens granted under the Loan Documents and to exercise and enforce its rights and  remedies thereunder with respect to the Collateral.  In addition to the foregoing, within ten (10)  Business Days of the Administrative Agent’s request, each Loan Party shall execute and deliver  to the Administrative Agent all documents or materials necessary or appropriate in order to  comply with the Assignment of Claims Act (the “Government Contract Assignments”) in  connection with each Government Contract required to be assigned to the Administrative Agent  by the Administrative Agent.  The Loan Parties acknowledge that the Lenders will be irreparably  harmed if any Loan Party fails or refuses to execute and deliver to the Administrative Agent any  Government Contract Assignment as and when required pursuant to this Section 8.1.8, and that  the Lenders have no adequate remedy at law.  In such event, the Loan Parties agree that the  Administrative Agent shall be entitled, in addition to all other rights and remedies available to  the Administrative Agent and the Lenders, to injunctive or other equitable relief to compel the  Loan Parties’ full compliance with the requirements of this Section 8.1.8.  All costs and expenses  incurred in connection with the Government Contract Assignments shall be borne solely by the  Borrowers. The Loan Parties shall notify the Administrative Agent of any changes in the  information provided in any Beneficiary Ownership Certification that would result in a change to  the list of beneficial owners identified in parts (c) or (d) of such certification.              8.1.9. Anti-Terrorism Laws.  None of the Loan Parties is or shall be (i) a Person  with whom any Lender is restricted from doing business under Executive Order No. 13224 or  any other Anti-Terrorism Law, (ii) engaged in any business involved in making or receiving any  contribution of funds, goods or services to or for the benefit of such a Person or in any  transaction that evades or avoids, or has the purpose of evading or avoiding, the prohibitions set  forth in any Anti-Terrorism Law, or (iii) otherwise in violation of any Anti-Terrorism Law.  The    {N0289348 2 }                      79   

 

     Loan Parties shall provide to the Lenders any certifications or information that a Lender requests   to confirm compliance by the Loan Parties with Anti-Terrorism Laws.                8.1.10. Reserved.                 8.1.11. Maintenance of Patents, Trademarks, Etc.  Each Loan Party shall   maintain in full force and effect all patents, trademarks, service marks, trade names, copyrights,   licenses and other intellectual property (for, as applicable, their statutory term) to the extent   necessary for the ownership and operation of its properties and business if the failure so to   maintain the same would reasonably be expected to result in a Material Adverse Change.               8.1.12. Pension Plans and the ESOP.  The Loan Parties shall, and shall cause   each ERISA Affiliate to, comply with ERISA, the Code and other applicable Laws applicable to   Pension Plans and the ESOP except where such failure, alone or in conjunction with any other   failure, would not reasonably be expected to result in a Material Adverse Change. Without   limiting the generality of the foregoing, the Loan Parties shall cause all of their Pension Plans   and all Pension Plans maintained by any ERISA Affiliate to be funded in accordance with the   minimum funding requirements of ERISA and shall make, and cause each ERISA Affiliate to   make, in a timely manner, all contributions due to Pension Plans and Multiemployer Plans.                8.1.13. Subordination of Intercompany Loans.  Each Loan Party shall cause any   intercompany Indebtedness, loans or advances owed by any Loan Party to any other Loan Party   to be subordinated pursuant to the terms of an intercompany subordination agreement in form   and substance satisfactory to the Administrative Agent (the “Intercompany Subordination   Agreement”).               8.1.14. Additional Collateral.  (i)  With respect to any Collateral acquired after   the Closing Date by any Loan Party (other than any property described in paragraph (ii) or (iii)   below) as to which the Administrative Agent, for the benefit of the Lenders, does not have a   perfected Lien under the Amended and Restated Security Agreement, the Borrowers shall and   shall cause such Loan Party to do the following within ten (10) Business Days after the date of   acquisition:  (A) execute and deliver to the Administrative Agent such amendments to the   Amended and Restated Security Agreement or such other Amended and Restated Security  Documents as the Administrative Agent reasonably requests in order to grant Prior Security  Interests to the Administrative Agent for the benefit of the Lenders in in such property, (B) take   all actions reasonably requested by the Administrative Agent and required by the Amended and   Restated Security Documents to grant to the Administrative Agent, for the benefit of the   Lenders, a Prior Security Interests in the United States in such property (subject to Permitted   Liens), including the filing of Uniform Commercial Code financing statements in such   jurisdictions as may be required by the Amended and Restated Security Documents or by law or   as may be reasonably requested by the Administrative Agent and (C) execute, as applicable, and   deliver to the Administrative Agent documents in the forms described in Section 7.1 [First Loans   and Letters of Credit] modified as appropriate.          (ii)  With respect to any new Domestic Subsidiary created or acquired directly by a   Loan Party after the Closing Date, (including as a result of any Delaware LLC Division), the  Borrowers agrees, and agrees to cause such Domestic Subsidiary and Loan Party, as appropriate,    {N0289348 2 }                      80    

 

   to do the following within five (5) Business Days after the date of the date of such  Subsidiary’s acquisition or filing of such Subsidiary’s organizational document, as  applicable:  (A) execute and deliver to the Administrative Agent such amendments to the  Guaranty Agreement and Amended and Restated Security Documents as the Administrative  Agent reasonably deems necessary or advisable to grant to the Administrative Agent, for the  benefit of the Lenders, a Prior Security Interest (subject to Permitted Liens) in the Capital Stock  of such new Domestic Subsidiary that is owned by any Loan Party, (B) deliver to the  Administrative Agent the certificates, if any, representing such Capital Stock, together with  undated stock powers, in blank, executed and delivered by a duly authorized officer of the  relevant Loan Party, (C) cause such new Domestic Subsidiary (1) to become a party to the  Guaranty Agreement and Amended and Restated Security Documents as a grantor and  Subsidiary Guarantor and (2) to take such actions reasonably necessary and required by the  Amended and Restated Security Documents to grant to the Administrative Agent for the benefit  of the Lenders a Prior Security Interest (subject to Permitted Liens) in the Collateral in the  United States as described in the Amended and Restated Security Documents with respect to  such new Subsidiary, including the filing of Uniform Commercial Code financing statements in  such jurisdictions as may be required by the Amended and Restated Security Documents or by  law or as may be reasonably requested by the Administrative Agent, and (D) execute, as  applicable, and deliver to the Administrative Agent documents in the forms described in Section  7.1 [First Loans and Letters of Credit] modified as appropriate.  Notwithstanding the foregoing,  if the only material asset of a Domestic Subsidiary is the Capital Stock of a Foreign Subsidiary  and the joinder of such Domestic Subsidiary to the Guaranty Agreement and Amended and  Restated Security Documents, in the good faith judgment of the Borrowers, is likely to result in  adverse tax consequences to the Borrowers under Section 956 of the Code, then such Domestic  Subsidiary (an “Excluded Domestic Subsidiary”) shall not be required to so join while such  condition exists.         (iii) With respect to any new direct Foreign Subsidiary created or acquired after the  Closing Date by any Loan Party, the Borrowers agree, and agree to cause their respective  Domestic Subsidiaries to do the following within ten (10) Business Days after the date of the  date of such Foreign Subsidiary’s acquisition or filing of such Foreign Subsidiary’s  organizational document, as applicable:  (A) execute and deliver to the Administrative Agent  such amendments to the Amended and Restated Pledge Agreement as the Administrative Agent  reasonably deems reasonably necessary to grant to the Administrative Agent, for the benefit of  the Lenders, a Prior Security Interest (subject to Permitted Liens) in the Capital Stock of such  new Foreign Subsidiary that is owned by any such Loan Party (provided that in no event shall  more than 65% of the total outstanding Capital Stock of any such new Foreign Subsidiary be  required to be so pledged), (B) deliver to the Administrative Agent the certificates, if any,  representing such pledged Capital Stock, together with undated stock powers, in blank, executed  and delivered by a duly authorized officer of the relevant Loan Party, and take such other action  as may be reasonably requested by the Administrative Agent, to perfect the Administrative  Agent’s security interest therein, and (C) execute, as applicable, and deliver to the  Administrative Agent documents in the forms described in Section 7.1 [First Loans and Letters  of Credit] modified as appropriate.              8.1.15. Post-Closing Matters.   Within the time periods set forth in Schedule  8.1.15 [Post-Closing Matters] (as such periods may be extended by the Administrative Agent in   {N0289348 2 }                      81   

 

   its discretion), the Loan Parties shall have duly executed and delivered each of the documents,  agreements, and instruments and taken all other actions as set forth on such Schedule.         8.2   Negative Covenants.              8.2.1. Indebtedness.  Each of the Loan Parties shall not, and shall not permit any  of its Subsidiaries to, at any time create, incur, assume or suffer to exist any Indebtedness,  except:                     (i)   Indebtedness under the Loan Documents;                     (ii)  Existing Indebtedness as set forth on Schedule 8.2.1 (including any              extensions or renewals thereof; provided there is no increase in the amount              thereof or other significant change in the terms thereof unless otherwise specified              on Schedule 8.2.1;                     (iii) Indebtedness secured by Permitted Liens;                     (iv)  Indebtedness of a Loan Party to another Loan Party which is              subordinated pursuant to an Intercompany Subordination Agreement, except that              no Loan Party shall have any Indebtedness to Holdings, except for Investments              permitted by Section 8.2.4 [Loans and Investments];                      (v)   Any (i) Lender Provided Interest Rate Hedge, (ii) other Interest              Rate Hedge approved by the Administrative Agent or (iii) Indebtedness under any             Other Lender Provided Financial Services Product; provided, however, the Loan              Parties and their Subsidiaries shall enter into a Lender Provided Interest Rate              Hedge or another Interest Rate Hedge only for hedging (rather than speculative)              purposes;                     (vi)  Indebtedness representing deferred compensation to employees of              Holdings or any of its Subsidiaries incurred in the ordinary course of business;                    (vii) Indebtedness to current or former officers, directors, managers,             consultants and employees to finance the purchase or redemption of Capital Stock             of a Borrower (or any direct or indirect parent thereof) permitted by Section 8.2.5              [Dividends and Related Distributions], in an aggregate amount not to exceed              $100,000;                     (viii) Indebtedness incurred by a Borrower or any of its Subsidiaries in              connection with any Investment expressly permitted hereunder or any              Disposition, in each case to the extent constituting contingent indemnification              obligations or other similar adjustments;                      (ix)  Indebtedness consisting of the financing of insurance premiums in              the ordinary course of business and not in excess of unpaid costs and related              interest costs;     {N0289348 2 }                      82   

 

                     (x)   Guaranties of (A) Indebtedness permitted hereunder and (B) leases              (other than capitalized leases) or other obligations that do not constitute             Indebtedness, in each case entered into in the ordinary course of business;                     (xi)  Indebtedness in the ordinary course of business consisting of              Uniform Commercial Code Article 3 endorsements for collection or deposit,              Indebtedness arising from the honoring by a bank or other financial institution of              a check, draft or similar instrument drawn against insufficient funds, netting              services, check endorsement guarantees and otherwise in connection with deposit              accounts or cash management services, in each case, in the ordinary course of             business, and Article 4 customary trade arrangements with customers consistent             with past practices; and                    (xii) Unsecured Indebtedness in an aggregate principal amount for all             Loan Parties at any time outstanding not to exceed $500,000.               8.2.2. Liens; Lien Covenants.  Each of the Loan Parties shall not, and shall not  permit any of its Subsidiaries to, at any time create, incur, assume or suffer to exist any Lien on  any of its property or assets, tangible or intangible, now owned or hereafter acquired, or agree or  become liable to do so, except Permitted Liens.              8.2.3. Guaranties.  Each of the Loan Parties shall not, and shall not permit any  of its Subsidiaries to, at any time, directly or indirectly, become or be liable in respect of any  Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree, become or  remain directly or contingently liable upon or with respect to any obligation or liability of any  other Person, except for Guaranties of Indebtedness of the Loan Parties permitted hereunder, but  no Loan Party shall guaranty Indebtedness of Holdings.              8.2.4. Loans and Investments.  Each of the Loan Parties shall not, and shall not  permit any of its Subsidiaries to, at any time make or suffer to remain outstanding any  Investment, or agree, become or remain liable to make any Investment, except:                           (i)   Investments arising from trade credit extended on usual and              customary terms in the ordinary course of business;                           (ii)  loans and advances to officers, directors and employees of              the Borrowers or any of their respective Subsidiaries to meet expenses incurred by              such officers, directors and employees in the ordinary course of business, which              loans and advances shall not exceed at any time $500,000 in the aggregate;                           (iii) Permitted Investments;                           (iv)  (A) Investments by Holdings or any of its Subsidiaries in a             Loan Party (other than Holdings), and (B) Investments in Holdings (or any direct             or indirect parent thereof) 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 Holdings (or             such direct or indirect parent) in accordance with Section 8.2.5(ii);   {N0289348 2 }                      83   

 

                           (v)   Interest Rate Hedges permitted by Section 8.2.1(vi);                           (vi)  Investments to the extent that payment for such              Investments is made solely with Capital Stock of Holdings (or by any direct or              indirect parent thereof) and the issuance and/or transfer of such Capital Stock is              otherwise permitted pursuant to the terms of this Agreement;                           (vii) Investments held by a Subsidiary acquired after the Closing              Date or of a Person merged with or into a Borrower or merged or consolidated              with a Subsidiary of a Borrower in accordance with Section 8.2.7 [Liquidations,              Mergers, Consolidations] after the Closing Date to the extent that such              Investments were not made in contemplation of or in connection with such              acquisition, merger or consolidation and were in existence on the date of such              acquisition, merger or consolidation and so long as none of the Loan Parties or              any of their Subsidiaries has any liability or other obligation with respect to such              Investments;                           (viii) Investments, including Investments in Permitted Joint              Ventures, that do not exceed in the aggregate at any time outstanding an amount              equal to $1,000,000; and                           (ix)  the Acquisition.              8.2.5. Dividends and Related Distributions.  Each of the Loan Parties shall not,  and shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable  to make or pay, any dividend or other distribution of any nature (whether in cash, property,  securities or otherwise) on account of or in respect of Capital Stock or on account of the  purchase, redemption, retirement or acquisition of Capital Stock (other than dividends or  distributions payable solely in Capital Stock) (each, a “Restricted Payment”), except:                      (i)   Restricted Payments payable to another Loan Party (other than  Holdings);                                         (ii)  Restricted Payments paid to Holdings on account of the following:                                   (A)   to pay (a) corporate overhead costs and expenses             (including administrative, legal, accounting and similar expenses) of Holdings,             which are attributable to the ownership or operations of the Loan Parties and (b)             other corporate overhead costs and expenses of Holdings not to exceed an             aggregate amount of $8,000,000 during any fiscal year, including any costs             incurred in any way in connection with the Acquisition;                                (B)   to pay franchise taxes and other fees, taxes and             expenses actually incurred and required to maintain the corporate existence of             Holdings, in an aggregate amount not to exceed during any fiscal year of             $3,000,000; and    {N0289348 2 }                      84   

 

                                   (C)   for any taxable period in which the Loan Parties or               any of their Subsidiaries is a member of a consolidated, combined or similar               income tax group of which Holdings is the common parent (a “Tax Group”), to               pay an allocable portion of such federal, foreign, state and local income Taxes of               such Tax Group that is actually incurred and attributable to such Loan Parties and               Subsidiaries; provided, however, that such Restricted Payments shall not exceed               the lesser of (x) the amount of the relevant tax that such Loan Parties would owe               if such Loan Parties were filing a separate tax return (or a separate consolidated               tax return with their respective Subsidiaries that are members of such               consolidated or combined group), taking into account any carryovers and               carrybacks of tax attributes (such as net operating losses) of such Loan Parties and               such Subsidiaries and (y) the net amount of the relevant tax that Holdings actually               owes to the appropriate taxing authority; provided further that any Restricted               Payments received by Holdings from any Loan Party pursuant to this clause (C)               shall be paid over to the appropriate taxing authority within 60 days of receipt by               Holdings thereof.                      (iii) the Borrowers may pay (or make Restricted Payments to allow any   direct or indirect parent thereof to pay) for the repurchase, retirement or other acquisition or   retirement for value of Capital Stock of a Borrower (or of any such direct or indirect parent of   the Borrower) by any future, present or former employee, director, officer, manager or consultant   of such Borrower (or any direct or indirect parent thereof) or any of its Subsidiaries upon the   death, disability, retirement or termination of employment of any such Person or otherwise   pursuant to any employee or director equity plan, employee or director stock option plan or any   other employee or director benefit plan or any agreement (including any stock subscription or   shareholder agreement) with any future, present or former employee, director, officer, manager   or consultant of the Borrower (or any direct or indirect parent of the Borrower) or any of its   Subsidiaries (including, for the avoidance of doubt, any principal and interest payable on any   notes issued by the Borrower (or of any direct or indirect parent of the Borrower) in connection   with any such repurchase, retirement or other acquisition or retirement); provided, however, that   (x) the aggregate amount of Restricted Payments made under this clause (iii) in connection with   the death of any such Person shall be limited to the cash proceeds received from any key man life   insurance with respect to the Person whose Capital Stock is being redeemed and (y) the   aggregate amount of any other Restricted Payments made under this clause (iii) shall not exceed  in any fiscal year of $2,000,000;                      (iv)  non-cash Restricted Payments consisting of repurchases of Capital   Stock in Holdings or any of its Subsidiaries deemed to occur upon exercise of stock options or   warrants if such Capital Stock represents a portion of the exercise price of such options or   warrants; and                      (v)   Restricted Payments consisting of the repurchase by DLH   Holdings Corp. of its Capital Stock in an aggregate amount not to exceed $2,000,000; provided,   however, immediately prior to and following each such repurchase no Default or Event of   Default shall exist or result therefrom.     {N0289348 2 }                      85    

 

                8.2.6. Changes in Acquisition Documents.                        (i)   Holdings shall not, and the Subsidiary Borrowers shall not permit   Holdings to, amend or modify any provisions of any of the Acquisition Documents without   providing at least fifteen (15) calendar days’ prior written notice to the Administrative Agent and   the Lenders, and obtaining the prior written consent of the Required Lenders.                      (ii)  Except as contemplated by Section 8.2.19 [Payments Under   Acquisition Documents], the Borrowers shall not directly or indirectly make any payment under   any of the Acquisition Documents which would violate the provisions of any of the Acquisition   Documents or the Loan Documents.               8.2.7. Liquidations, Mergers, Consolidations.  Each of the Loan Parties shall   not, and shall not permit any of its Subsidiaries to, dissolve, liquidate or wind-up its affairs, or   become a party to any merger or consolidation (including, in each case, pursuant to a Delaware  LLC Division); provided that (i) any Loan Party other than a Borrower may consolidate or merge   into another Loan Party which is wholly-owned by one or more of the other Loan Parties, (ii) any   Subsidiary of the Borrowers may liquidate, dissolve or wind-up its affairs and sell, convey,   assign, lease, abandon or otherwise transfer or dispose of all of its assets if the Borrowers   determines that such action is in the best interests of the Borrower and is not materially   disadvantageous to the Lenders and such action is otherwise permitted pursuant to Section 8.2.8   [Dispositions of Assets or Subsidiaries], (iii) any Subsidiary of the Borrowers may merge or   consolidate with any other Person in connection with any transaction permitted pursuant to   Section 8.2.8 [Dispositions of Assets or Subsidiaries], and (iv) the Borrowers may dissolve the  Dormant Subsidiaries in accordance with Section 8.1.1 [Preservation of Existence, Etc.].               8.2.8. Dispositions of Assets or Subsidiaries.  Each of the Loan Parties shall not,   and shall not permit any of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise   transfer or dispose of (each, a “Disposition”), voluntarily or involuntarily, any of its properties   or assets, tangible or intangible (including sale, assignment, discount or other disposition of   accounts, contract rights, chattel paper, equipment or general intangibles with or without   recourse or of Capital Stock of a Subsidiary of such Loan Party), (including, in each case,   pursuant to a Delaware LLC Division), except:                      (i)   any Disposition involving the sale of inventory in the ordinary   course of business;                      (ii)  any Disposition of assets or property in the ordinary course of   business which are no longer necessary or required in the conduct of such Loan Party’s or such   Subsidiary’s business;                     (iii)  any Disposition constituting an Investment permitted under   Section 8.2.4 [Loans and Investments];                      (iv)  any Disposition of assets or property in the ordinary course of   business which are replaced by substitute assets or property acquired or leased; provided such   substitute assets or property are subject to the Lenders’ Prior Security Interest;     {N0289348 2 }                      86    

 

                       (v)   any Disposition of Permitted Investments in the ordinary course of   business which are replaced by substitute Permitted Investments; provided such substitute   Permitted Investments are subject to the Lenders’ Prior Security Interest;                      (vi)  any Disposition in connection with a Recovery Event;                      (vii) Dispositions of accounts receivable in connection with the  collection, settlement or compromise thereof, in each case in a manner consistent with past  practice;                      (viii) Dispositions of Investments in Permitted Joint Ventures to the  extent required by, or made pursuant to customary buy/sell arrangements between, the Permitted  Joint Venture parties set forth in joint venture arrangements and similar binding arrangements;                      (ix)  the unwinding of any Lender Provided Interest Rate Hedge;                      (x)   leases, subleases, licenses or sublicenses entered into in the  ordinary course of business, in each case which do not materially interfere with the business of  Holdings and its Subsidiaries;                      (xi)  Other Dispositions that do not exceed $500,000 in the aggregate in  any fiscal year; and                      (xii) any Disposition, other than those specifically excepted pursuant to  clauses (i) through (xi) above (which, notwithstanding anything herein to the contrary, shall be  subject to all of the other provisions hereof, including Section 5.7.1 [Sale of Assets]), which is  approved by the Required Lenders so long as the after-tax proceeds (as reasonably estimated by  the Borrowers) are applied as a mandatory prepayment of the Term Loans in accordance with the  provisions of Section 5.7.1 [Sale of Assets] above.          For the avoidance of doubt, nothing in this Section 8.2.8 shall prohibit or restrict   Holdings from selling, transferring, or otherwise entering into any agreement to do so, with   respect to any shares of its Capital Stock or Equity Interests.                 8.2.9. Affiliate Transactions.  Each of the Loan Parties shall not, and shall not   permit any of its Subsidiaries to, enter into or carry out any transaction with any Affiliate of any   Loan Party (including purchasing property or services from or selling property or services to any   Affiliate of any Loan Party or other Person), except the following (and only if such transaction is   not otherwise prohibited by any other provision of this Agreement):                     (i)    any transaction that is entered into in the ordinary course of   business upon fair and reasonable arm’s-length terms and conditions which are fully disclosed to   the Administrative Agent and is in accordance with all applicable Law;                     (ii)   the Transaction and payment of the Transaction Expenses as of the   Closing Date;     {N0289348 2 }                      87    

 

                    (iii)  Restricted Payments permitted under Section 8.2.5 [Dividends and  Related Distributions] and prepayments of Indebtedness permitted under Sections 8.2.6 [Changes  in Acquisition Documents] or 8.2.19 [Payments Under Acquisition Documents]; and                    (iv)   Payments to or from, and transactions with, any Permitted Joint  Venture in the ordinary course of business solely in connection with the purchase and sale of  goods or services.              8.2.10. Subsidiaries, Partnerships and Joint Ventures.  Each of the Loan Parties  shall not, and shall not permit any of its Subsidiaries to own or create directly or indirectly any  Subsidiaries other than (i) any Subsidiary which has joined this Agreement as Guarantor on the  Closing Date; and (ii) any Subsidiary formed after the Closing Date which joins this Agreement  as a Guarantor by delivering to the Administrative Agent (A) a signed Guarantor Joinder;  (B) documents in the forms described in Section 7.1 [First Loans and Letters of Credit] modified  as appropriate; and (C) documents necessary to grant and perfect Prior Security Interests to the  Administrative Agent for the benefit of the Lenders in the equity interests of, and Collateral held  by, such Subsidiary.  Each of the Loan Parties shall not become or agree to become a party to a  Joint Venture, except for a Permitted Joint Venture.              8.2.11. Continuation of or Change in Business.  Each of the Loan Parties shall  not, and shall not permit any of its Subsidiaries to, engage directly or indirectly in any business  other than the business in which such Loan Party and its Subsidiaries are engaged as of the  Closing Date, and no such Loan Party or Subsidiary shall permit any material change in such  business.  None of the Loan Parties or Subsidiaries of any Loan Party shall become an  “investment company” registered or required to be registered under the Investment Company Act  of 1940 or under the “control” of an “investment company” as such terms are defined in the  Investment Company Act of 1940.              8.2.12. Fiscal Year.  The Borrowers shall not, and shall not permit any Subsidiary  of the Borrowers to, change its fiscal year from the twelve-month period beginning on October 1  and ending September 30.              8.2.13. [Reserved].              8.2.14. Changes in Organizational Documents.  Except as otherwise expressly  permitted  in accordance with the Amended and Restated Security Agreement, each of the Loan  Parties shall not, and shall not permit any of its Subsidiaries to, amend in any respect its  certificate of incorporation (including any provisions or resolutions relating to Capital Stock),  by-laws, certificate of limited partnership, partnership agreement, certificate of formation,  limited liability company agreement or other organizational documents without providing at least  thirty (30) calendar days’ prior written notice to the Administrative Agent and the Lenders (or  such shorter period as agreed to by the Administrative Agent) and, in the event such change  would be adverse to the Lenders as determined by the Administrative Agent in its sole discretion,  obtaining the prior written consent of the Required Lenders.              8.2.15. Minimum Fixed Charge Coverage Ratio.  The Borrowers shall not permit  the Fixed Charge Coverage Ratio, calculated as of the end of each fiscal quarter for the four (4)    {N0289348 2 }                      88   

 

     fiscal quarters then ended (commencing with the fiscal quarter ending September 30, 2020), to  be less than 1.25 to 1.00.                 8.2.16. Maximum Total Leverage Ratio.  The Borrowers shall not permit the   Total Leverage Ratio as of the end of any fiscal quarter during the term of this Agreement   (commencing with the fiscal quarter ending September 30, 2020) to exceed the ratio set forth   below for the periods specified below:                            Period                   Total Leverage Ratio            From the Closing Date, through and          3.75 to 1.00           including fiscal quarter ending June 30,           2021            From fiscal quarter ending September 30,    3.50 to 1.00           2021,  through and including fiscal quarter           ending June 30, 2022            From fiscal quarter ending September 30,    3.25 to 1.00           2022,  through and including fiscal quarter           ending June 30, 2023            From fiscal quarter ending September 30,    3.00 to 1.00           2023,  through and including fiscal quarter           ending June 30, 2024            From fiscal quarter ending September 30,    2.75 to 1.00           2024, and thereafter                   8.2.17. Reserved.               8.2.18. Limitation on Negative Pledges.  Each of the Loan Parties shall not, and   shall not permit any Subsidiary, to enter into or suffer to exist or become effective any agreement   that prohibits or limits the ability of such Loan Party or any of its Subsidiaries to create, incur,   assume or suffer to exist any Lien upon any of its property or revenues, whether now owned or   hereafter acquired, to secure the Obligations, other than (a) this Agreement and the other Loan   Documents (b) with respect to a Subsidiary imposed pursuant to an agreement that has been   entered into in connection with a disposition of assets permitted under this Agreement of all or   substantially all of the equity interests or assets of such Subsidiary, (c) any agreements governing   any purchase money Liens or capital lease obligations otherwise permitted hereby (in which     {N0289348 2 }                      89    

 

   case, any prohibition or limitation shall only be effective against the assets financed thereby), (d)  customary provisions restricting assignment of any licensing agreement (in which a Loan Party  or its Subsidiaries are the licensee) with respect to a contract entered into by a Loan Party or its  Subsidiaries in the ordinary course of business and (e) customary provisions restricting  subletting, sublicensing or assignment of any intellectual property license or any lease governing  any leasehold interests of a Loan Party and its Subsidiaries.               8.2.19. Payments Under Acquisition Documents.  No Loan Party shall make any  payment under any of the Acquisition Documents to (or on behalf of) any of the Seller, Seller’s  Affiliates or Seller’s Representatives (as each such term is defined therein), or any assignee  thereof, except as set forth in the Acquisition Documents.         8.3   Reporting Requirements.  The Loan Parties will furnish or cause to be furnished  to the Administrative Agent:                8.3.1. Quarterly Financial Statements.  As soon as available and in any event  within forty-five (45) calendar days after the end of each of the first three fiscal quarters in each  fiscal year, financial statements of Holdings, consisting of a consolidated balance sheet as of the  end of such fiscal quarter and related consolidated statements of income, retained earnings, and  cash flows for the fiscal quarter then ended and the fiscal year through that date, all in reasonable  detail and certified (subject to normal year-end audit adjustments) by the Chief Executive  Officer, President or Chief Financial Officer of the Borrowers as having been prepared in  accordance with GAAP, consistently applied, and setting forth in comparative form the  respective financial statements for the corresponding date and period in the previous fiscal year.              8.3.2. Annual Financial Statements.  As soon as available and in any event  within one hundred one hundred (120) calendar days after the end of each fiscal year of  Holdings, financial statements of Holdings consisting of a consolidated balance sheet as of the  end of such fiscal year, and related consolidated statements of income, stockholders’ equity and  cash flows for the fiscal year then ended, all in reasonable detail and setting forth in comparative  form the financial statements as of the end of and for the preceding fiscal year, and certified by  independent certified public accountants of nationally recognized standing satisfactory to the  Administrative Agent.  The certificate or report of accountants shall be free of qualifications  (other than any consistency qualification that may result from a change in the method used to  prepare the financial statements as to which such accountants concur) and shall not indicate the  occurrence or existence of any event, condition or contingency which would materially impair  the prospect of payment or performance of any covenant, agreement or duty of any Loan Party  under any of the Loan Documents.  The Loan Parties shall deliver with such financial statements  and certification by their accountants a letter of such accountants to the Administrative Agent  and the Lenders substantially to the effect that, based upon their ordinary and customary  examination of the affairs of Holdings, performed in connection with the preparation of such  consolidated financial statements, and in accordance with GAAP, they are not aware of the  existence of any condition or event which constitutes an Event of Default or Potential Default or,  if they are aware of such condition or event, stating the nature thereof.              8.3.3. Backlog Report.  Within forty-five (45) calendar days after the close of  each fiscal quarter, a summary and report of order backlog of the Borrowers and their   {N0289348 2 }                      90   

 

     Subsidiaries in a form consistent with the summaries and reports of order backlog delivered to   the Administrative Agent on or prior to the Closing Date or otherwise reasonably acceptable to   the Administrative Agent.               8.3.4. Certificate of the Borrowers.  Commencing with the quarterly fiscal   period ending September 30, 2020, and concurrently with the financial statements of Holdings   furnished to the Administrative Agent and to the Lenders pursuant to Sections 8.3.1 [Quarterly  Financial Statements] and 8.3.2 [Annual Financial Statements], a certificate (each a  “Compliance Certificate”) of the Borrowers signed by the Chief Executive Officer, President or  Chief Financial Officer of the Borrowers, in the form of Exhibit 8.3.4.               8.3.5. Borrowing Base Certificate.  Within twenty (20) calendar days after the   end of each fiscal month of the Borrowers, or otherwise more frequently if requested by the   Administrative Agent in its Permitted Discretion from time to time, including at the time of each   Loan Request, the Administrative Borrower shall prepare and deliver to the Administrative  Agent a Borrowing Base Certificate with respect to the Maximum Borrowing Base as of the date  specified in such Borrowing Base Certificate, to be substantially in such form as the  Administrative Agent may deliver for such purpose to the Borrowers from time to time hereafter  (herein, a “Borrowing Base Certificate”), the statements in which, in each instance, shall be  certified as to truth and accuracy by an Authorized Officer of the Borrowers.               8.3.6. Accounts Receivable Aging.  Within twenty (20) calendar days after the   end of each fiscal month of the Borrowers, or otherwise more frequently if requested by the   Administrative Agent in its Permitted Discretion from time to time, the Administrative Borrower   shall prepare and deliver to the Administrative Agent a status report, certified by an Authorized   Officer of Borrowers, showing the aggregate dollar value of the items comprising the   Receivables and the age of each individual item thereof (segregating such items in such manner   and to such degree as the Administrative Agent may request).                 8.3.7. Notices.                      8.3.7.1 Default.  Promptly after any officer of any Loan Party has learned         of the occurrence of an Event of Default or Potential Default, a certificate signed by an         Authorized Officer setting forth the details of such Event of Default or Potential Default         and the action which such Loan Party proposes to take with respect thereto.                      8.3.7.2 Litigation.  Promptly after the commencement thereof, notice of all         actions, suits, proceedings or investigations before or by any Official Body or any other         Person against any Loan Party or Subsidiary of any Loan Party which relate to the         Collateral, involve a claim or series of claims in excess of $1,000,000 or which if         adversely determined would constitute a Material Adverse Change.                      8.3.7.3 Organizational Documents.  Within the time limits set forth in         Section 8.2.14 [Changes in Organizational Documents], any amendment to the         organizational documents of any Loan Party.                      8.3.7.4 Erroneous Financial Information.  Immediately in the event that         the Borrowers or their accountants conclude or advise that any previously issued financial    {N0289348 2 }                      91    

 

           statement, audit report or interim review should no longer be relied upon or that         disclosure should be made or action should be taken to prevent future reliance, notice in         writing setting forth the details thereof and the action which the Borrowers propose to         take with respect thereto.                      8.3.7.5 ERISA Event.  Immediately upon the occurrence of any ERISA         Event, notice in writing setting forth the details thereof and the action which the         Borrowers or any Loan Party proposes to take with respect thereto.                      8.3.7.6 Other Reports.  Promptly upon their becoming available to         Holdings or the Borrower:                           (i)    Annual Budget.  The annual budget and any forecasts or   projections of the Borrowers, to be supplied not later than sixty (60) calendar days immediately   following the commencement of the fiscal year to which any of the foregoing may be applicable;                           (ii)   Management Letters.  Any reports including management   letters submitted to any of the Borrowers by independent accountants in connection with any   annual, interim or special audit;                           (iii)  Statement of Operations.  Within forty-five (45) calendar   days after the end of each fiscal month of the Borrowers, a statement of operations including a   consolidated balance sheet, statements of income and cash flow;                           (iv)   Reportable Compliance Event.  The occurrence of a   Reportable Compliance Event; and                                                    (v)    Other Information.  Such other reports and information as   any of the Lenders may from time to time reasonably request.                       8.3.7.7 Notices Acquisition Documents.  At the same time sent or   provided to the Seller, Seller’s Affiliates or Seller’s Representatives (as each such term is   defined in the Equity Purchase Agreement) under the Acquisition Documents, all notices and  reports provided under the Acquisition Documents (unless already provided pursuant to any  other provision of this Section 8.3).    9. DEFAULT          9.1   Events of Default.  An Event of Default shall mean the occurrence or existence of   any one or more of the following events or conditions (whatever the reason therefor and whether   voluntary, involuntary or effected by operation of Law):               9.1.1. Payments Under Loan Documents.  The Borrowers shall fail to pay:    (i) any principal of any Loan (including scheduled installments, mandatory prepayments or the   payment due at maturity) or any Reimbursement Obligation or Letter of Credit or Obligation on   the date on which such principal or other amount becomes due in accordance with the terms   hereof or thereof, or (ii) any interest on any Loan, Reimbursement Obligation or Letter of Credit   Obligation or any other amount owing hereunder or under the other Loan Documents within    {N0289348 2 }                      92    

 

   two (2) calendar days of the date on which such interest becomes due in accordance with the  terms hereof or thereof;               9.1.2. Breach of Warranty.  Any representation or warranty made at any time by  any of the Loan Parties herein or by any of the Loan Parties in any other Loan Document, or in  any certificate, other instrument or statement furnished pursuant to the provisions hereof or  thereof, shall prove to have been false or misleading in any material respect as of the time it was  made or furnished;              9.1.3. Breach of Negative Covenants or Visitation Rights.  Any of the Loan  Parties shall default in the observance or performance of any covenant contained in  (A) Section 8.1.5 [Visitation Rights] and such breach shall continue unremedied for a period of  five (5) Business Days from the earlier to occur of (i) any Loan Party obtaining knowledge of the  occurrence of such event and (ii) the date when notice to the defaulting party by the  Administrative Agent is deemed effective hereunder or (B) Section 8.2 [Negative Covenants];              9.1.4. Breach of Other Covenants.  Any of the Loan Parties shall default in the  observance or performance of any other covenant, condition or provision hereof or of any other  Loan Document and such default shall continue unremedied for a period of thirty (30) calendar  days from the earlier to occur of (i) any Loan Party obtaining knowledge of the occurrence of  such event and (ii) receipt of notice to the defaulting party by the Administrative Agent (such  grace period to be applicable only in the event such default can be remedied by corrective action  of the Loan Parties);              9.1.5. Defaults in Other Agreements or Indebtedness.  A default or event of  default shall occur (after giving effect to the cure periods, if any, applicable thereto) at any time  under the terms of any other agreement involving borrowed money or the extension of credit or  any other Indebtedness under which any Loan Party or Subsidiary of any Loan Party may be  obligated as a borrower or guarantor in excess of $500,000 in the aggregate, and such breach,  default or event of default consists of the failure to pay (beyond any period of grace permitted  with respect thereto, whether waived or not) any Indebtedness when due (whether at stated  maturity, by acceleration or otherwise) or if such breach or default permits or causes the  acceleration of any Indebtedness (whether or not such right shall have been waived) or the  termination of any commitment to lend;              9.1.6. Reserved.                 9.1.7. Final Judgments or Orders.  Any final judgments or orders for the  payment of money in excess of $1,000,000 in the aggregate (excluding liabilities to the extent  paid or covered by insurance as to which the relevant insurance company has not disputed  coverage) shall be entered against any Loan Party by a court having jurisdiction in the premises,  which judgment is not discharged, vacated, bonded or stayed pending appeal within a period of  thirty (30) calendar days from the date of entry;              9.1.8. Loan Document Unenforceable.  Any of the Loan Documents shall cease  to be legal, valid and binding agreements enforceable against the party executing the same or  such party’s successors and assigns (as permitted under the Loan Documents) in accordance with    {N0289348 2 }                      93   

 

     the respective terms thereof or shall in any way be terminated (except in accordance with its  terms) or become or be declared ineffective or inoperative or shall in any way be challenged or  contested or cease to give or provide the respective Liens, security interests, rights, titles,   interests, remedies, powers or privileges intended to be created thereby;               9.1.9. Events Relating to Pension Plans and Multiemployer Plans.  (i) An   ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or   could reasonably be expected to result in liability of a Loan Party or an ERISA Affiliate under   Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount   in excess of $1,000,000, or (ii) any Loan Party or any ERISA Affiliate fails to pay when due,   after the expiration of any applicable grace period, any installment payment with respect to its   withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate   amount in excess of $1,000,000;                9.1.10. Change of Control.  A Change of Control shall occur.               9.1.11. Holding Company Status.  Holdings shall (a) engage in any business or   activity other than complying with its obligations under the Loan Documents and under any   agreements governing the terms and relative rights of its Capital Stock, compliance with   applicable Law, ownership of the Capital Stock of the Subsidiary Borrowers and activities   incidental thereto, (b) own any assets other than the Capital Stock of the Subsidiary Borrowers,   cash and Cash Equivalents and de minimis amounts of other assets incidental to the conduct of its   business, or (c) contract, create, incur, assume or suffer to exist any Indebtedness other than   Indebtedness arising pursuant to the Loan Documents and other Indebtedness permitted   hereunder.                9.1.12. Relief Proceedings.  (i) A Relief Proceeding shall have been instituted   against any Loan Party or Subsidiary of a Loan Party and such Relief Proceeding shall remain   undismissed or unstayed and in effect for a period of sixty (60) consecutive calendar days or   such court shall enter a decree or order granting any of the relief sought in such Relief   Proceeding, (ii) any Loan Party or Subsidiary of a Loan Party institutes, or takes any action in   furtherance of, a Relief Proceeding, or (iii) any Loan Party or any Subsidiary of a Loan Party   ceases to be Solvent or admits in writing its inability to pay its debts as they mature.               9.1.13. Debarment.  With respect to any Loan Party, the occurrence of any   debarment or suspension from contracting or subcontracting with the Government.                9.1.14. Issuance of Adverse Order; Etc.  The issuance to any Loan Party of (i)   any cure notice, show-cause notice, or notice of whole or partial termination, for default or   alleged default, under any contract which is either a contract with the Government or is a   subcontract (at any tier) which is related to a contract between a third party and the Government,   and such notice is not revoked, rescinded, withdrawn, stayed, reversed or similarly resolved   within sixty (60) calendar days of issuance; (ii) any written notification of cost, schedule,   technical or quality problems that could reasonably result in claims against a Loan Party (or   successors in interest) by the Government, a prime contractor or a higher-tier subcontractor in   excess of $250,000, individually or in the aggregate; (iii) any written notification that the   Government intends to seek such Loan Party’s agreement to lower rates under any of the    {N0289348 2 }                      94    

 

     Government Contracts, including any task order under any Government Contracts, in excess of   $250,000, individually or in the aggregate; (iv) any written notification of any actual or alleged   violation or breach of any statute, regulation, representation, certification, disclosure obligation,   contract term, condition, clause, provision or specification by any Loan Party that could   reasonably be expected to affect payments under Government Contracts or adversely affect the   award of Government Contracts to such Loan Party in the future, and such notification is not   revoked, rescinded, withdrawn, stayed, reversed, or similarly resolved within sixty (60) calendar   days of issuance; (v) any written or oral notice of any outstanding claims or contract disputes to  which such Loan Party is a party relating to the Government Contracts under the Contract  Disputes Act or any other federal statute, and such notification is not revoked, rescinded,  withdrawn, stayed, reversed, or similarly resolved within sixty (60) calendar days of issuance;   (vi) any negative determination of responsibility with respect to any quotation, bid or proposal   submitted to the Government by such Loan Party; or (vii) any notice of any audit, inspection,   survey or examination of records by the Government relating to any Government Contract and   involving fraud, deception, dishonesty, willful misconduct, or criminal activity by such Loan   Party, and such notification is not revoked, rescinded, withdrawn, stayed, reversed, or similarly   resolved within thirty (30) calendar days of issuance;          9.2   Consequences of Event of Default.               9.2.1. Events of Default Other Than Bankruptcy, Insolvency or Reorganization  Proceedings.  If an Event of Default specified under Sections 9.1.1 through 9.1.11, 9.1.13, or   9.1.14 shall occur and be continuing, the Lenders and the Administrative Agent shall be under no   further obligation to make Loans and the Issuing Lender shall be under no obligation to issue   Letters of Credit and the Administrative Agent may, and upon the request of the Required   Lenders, shall (i) by written notice to the Borrowers, declare the unpaid principal amount of the   Amended and Restated Notes then outstanding and all interest accrued thereon, any unpaid fees   and all other Indebtedness of the Borrowers to the Lenders hereunder and thereunder to be   forthwith due and payable, and the same shall thereupon become and be immediately due and   payable to the Administrative Agent for the benefit of each Lender without presentment,   demand, protest or any other notice of any kind, all of which are hereby expressly waived, and   (ii) require the Borrowers to, and the Borrowers shall thereupon, deposit in a non-interest- bearing account with the Administrative Agent, as cash collateral for its Obligations under the  Loan Documents, an amount equal to the maximum amount currently or at any time thereafter  available to be drawn on all outstanding Letters of Credit, and the Borrowers hereby pledge to  the Administrative Agent and the Lenders, and grant to the Administrative Agent and the  Lenders a security interest in, all such cash as security for such Obligations; and               9.2.2. Bankruptcy, Insolvency or Reorganization Proceedings.  If an Event of   Default specified under Section 9.1.12 [Relief Proceedings] shall occur, the Lenders shall be   under no further obligations to make Loans hereunder and the Issuing Lender shall be under no   obligation to issue Letters of Credit and the unpaid principal amount of the Loans then   outstanding and all interest accrued thereon, any unpaid fees and all other Indebtedness of the   Borrowers to the Lenders hereunder and thereunder shall be immediately due and payable,   without presentment, demand, protest or notice of any kind, all of which are hereby expressly   waived; and     {N0289348 2 }                      95    

 

                9.2.3. Set-off.  If an Event of Default shall have occurred and be continuing,   each Lender, the Issuing Lender, and each of their respective Affiliates and any participant of   such Lender or Affiliate which has agreed in writing to be bound by the provisions of Section 5.3   [Sharing of Payments by Lenders] is hereby authorized at any time and from time to time, to the   fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or   special, time or demand, provisional or final, in whatever currency) at any time held and other   obligations (in whatever currency) at any time owing by such Lender, the Issuing Lender or any  such Affiliate or participant to or for the credit or the account of any Loan Party against any and  all of the Obligations of such Loan Party now or hereafter existing under this Agreement or any  other Loan Document to such Lender, the Issuing Lender, Affiliate or participant, irrespective of  whether or not such Lender, Issuing Lender, Affiliate or participant shall have made any demand  under this Agreement or any other Loan Document and although such Obligations of the  Borrowers or such Loan Party may be contingent or unmatured or are owed to a branch or office  of such Lender or the Issuing Lender different from the branch or office holding such deposit or  obligated on such Indebtedness.  The rights of each Lender, the Issuing Lender and their  respective Affiliates and participants under this Section 9.2.3 [Set-off] are in addition to other  rights and remedies (including other rights of setoff) that such Lender, the Issuing Lender or their  respective Affiliates and participants may have.  Each Lender and the Issuing Lender agrees to  notify the Borrowers and the Administrative Agent promptly after any such setoff and  application; provided that the failure to give such notice shall not affect the validity of such  setoff and application; and               9.2.4. Application of Proceeds.  From and after the date on which the   Administrative Agent has taken any action pursuant to this Section 9.2 and until all Obligations   of the Loan Parties have been Paid In Full, any and all proceeds received by the Administrative   Agent from any sale or other disposition of the Collateral, or any part thereof, or the exercise of   any other remedy by the Administrative Agent, shall be applied as follows:                            First, to payment of that portion of the Obligations constituting   fees, indemnities, expenses and other amounts, including attorney fees, payable to the   Administrative Agent in its capacity as such, the Issuing Lender in its capacity as such and the   Swing Loan Lender in its capacity as such, ratably among the Administrative Agent, the Issuing   Lender and Swing Loan Lender in proportion to the respective amounts described in this clause   First payable to them;                            Second, to payment of that portion of the Obligations constituting   fees, indemnities and other amounts (other than principal and interest) payable to the Lenders   under the Loan Documents, including attorney fees, ratably among the Lenders in proportion to   the respective 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 and Reimbursement Obligations, ratably among the   Lenders 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, Reimbursement Obligations and payment obligations then owing   under Lender Provided Interest Rate Hedges and Other Lender Provided Financial Service    {N0289348 2 }                      96    

 

   Products, ratably among the Lenders, the Issuing Lender, and the Lenders or Affiliates of  Lenders which provide Lender Provided Interest Rate Hedges and Other Lender Provided  Financial Service Products, in proportion to the respective amounts described in this clause  Fourth held by them;                           Fifth, to the Administrative Agent for the account of the Issuing  Lender, to cash collateralize any undrawn amounts under outstanding Letters of Credit; and                           Last, the balance, if any, to the Loan Parties or as required by Law.   10.   THE ADMINISTRATIVE AGENT         10.1  Appointment and Authority.  Each of the Lenders and the Issuing Lender hereby  irrevocably appoints FNB 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 Section 10 are solely for the benefit of the Administrative Agent, the  Lenders and the Issuing Lender, and neither the Borrowers nor any other Loan Party shall have  rights as a third party beneficiary of any of such provisions.         10.2  Rights as a Lender.  The Person serving as the Administrative Agent hereunder  shall have the same rights and powers in its capacity as a Lender as any other Lender and may  exercise the same as though it were not the Administrative Agent and the term “Lender” or  “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity.   Such Person and its Affiliates may accept deposits from, lend money to, act as the financial  advisor or in any other advisory capacity for and generally engage in any kind of business with  the Borrowers or any Subsidiary or other Affiliate thereof as if such Person were not the  Administrative Agent hereunder and without any duty to account therefor to the Lenders.         10.3  Exculpatory Provisions.  The Administrative Agent shall not have any duties or  obligations except those expressly set forth herein and in the other Loan Documents.  Without  limiting the generality of the foregoing, the Administrative Agent:               (a)   shall not be subject to any fiduciary or other implied duties, regardless of  whether a Potential Default or Event of 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 the Administrative 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 the Administrative  Agent shall not be required to take any action that, in its opinion or the opinion of its counsel,  may expose the Administrative Agent to liability or that is contrary to any Loan Document or  applicable Law; and    {N0289348 2 }                      97   

 

                 (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 Borrowers or any of its Affiliates that is communicated to or obtained   by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.               The Administrative 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 shall believe in  good faith shall be necessary, under the circumstances as provided in Sections 12.1   [Modifications, Amendments or Waivers] and 9.2 [Consequences of Event of Default]) or (ii) in   the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall   be deemed not to have knowledge of any Potential Default or Event of Default unless and until   notice describing such Potential Default or Event of Default is given to the Administrative Agent   by the Borrowers, a Lender or the Issuing Lender.                The Administrative Agent shall not be responsible for or have any duty to   ascertain or inquire into (i) any statement, warranty or representation made in or in connection   with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or   other document delivered hereunder or thereunder or in connection herewith or therewith,   (iii) the performance or observance of any of the covenants, agreements or other terms or   conditions set forth herein or therein or the occurrence of any Potential Default or Event of   Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any   other Loan Document or any other agreement, instrument or document or (v) the satisfaction of   any condition set forth in Section 7 [Conditions of Lending and Issuance of Letters of Credit] or   elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the   Administrative Agent.          10.4  Reliance by Administrative Agent.  The Administrative 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.  The Administrative 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, or the issuance   of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the   Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such   Lender or the Issuing Lender unless the Administrative Agent shall have received notice to the   contrary from such Lender or the Issuing Lender prior to the making of such Loan or the   issuance of such Letter of Credit.  The Administrative 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.          10.5  Delegation of Duties.  The Administrative Agent may perform any and all of its   duties and exercise its rights and powers hereunder or under any other Loan Document by or   through any one or more sub-agents appointed by the Administrative Agent.  The Administrative    {N0289348 2 }                      98    

 

     Agent and any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Related Parties.  The exculpatory provisions of this  Section 10 shall apply to any such sub-agent and to the Related Parties of the Administrative  Agent and any such sub-agent, and shall apply to their respective activities in connection with   the syndication of the credit facilities provided for herein as well as activities as Administrative   Agent.          10.6  Resignation of Administrative Agent.  The Administrative Agent may at any time   give notice of its resignation to the Lenders, the Issuing Lender and the Borrowers.  Upon receipt   of any such notice of resignation, the Required Lenders shall have the right, with approval from  the Borrowers (so long as no Event of Default has occurred and is continuing), to appoint a  successor, such approval not to be unreasonably withheld or delayed.  If no such successor shall   have been so appointed by the Required Lenders and shall have accepted such appointment   within thirty (30) calendar days after the retiring Administrative Agent gives notice of its   resignation, then the retiring Administrative Agent may on behalf of the Lenders and the Issuing   Lender, appoint a successor Administrative Agent; provided that if the Administrative Agent   shall notify the Borrowers and the Lenders that no qualifying Person has accepted such   appointment, then such resignation shall nonetheless become effective in accordance with such   notice and (i) the retiring 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 or the Issuing   Lender 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 (ii) all payments, communications and determinations provided to be made by, to or through  the Administrative Agent shall instead be made by or to each Lender and the Issuing Lender  directly, until such time as the Required Lenders appoint a successor Administrative Agent as   provided for above in this Section 10.6.  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 retired) Administrative Agent, and the   retiring 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 10.6 [Resignation of Administrative Agent]).  The fees payable by the Borrowers to   a successor Administrative Agent shall be the same as those payable to its predecessor unless   otherwise agreed between the Borrowers and such successor.  After the retiring Administrative   Agent’s resignation hereunder and under the other Loan Documents, the provisions of this   Section 10 [The Administrative Agent] and Section 12.3 [Expenses; Indemnity; Damage Waiver]   shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and   their respective Related Parties in respect of any actions taken or omitted to be taken by any of   them while the retiring Administrative Agent was acting as Administrative Agent.          If FNB resigns as Administrative Agent under this Section 10.6, FNB shall also resign as   an Issuing Lender.  Upon the appointment of a successor Administrative Agent hereunder, such   successor shall (i) succeed to all of the rights, powers, privileges and duties of FNB as the   retiring Issuing Lender and Administrative Agent and FNB shall be discharged from all of its   respective duties and obligations as Issuing Lender and Administrative Agent under the Loan   Documents, and (ii) issue letters of credit in substitution for the Letters of Credit issued by FNB,     {N0289348 2 }                      99    

 

     if any, outstanding at the time of such succession or make other arrangement satisfactory to FNB  to effectively assume the obligations of FNB with respect to such Letters of Credit.          10.7  Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the   Issuing Lender acknowledges that it has, independently and without reliance upon the   Administrative Agent or any other Lender or any of their Related Parties and based on such   documents and information as it has deemed appropriate, made its own credit analysis and   decision to enter into this Agreement.  Each Lender and the Issuing Lender also acknowledges   that it will, independently and without reliance upon the Administrative Agent or any other   Lender or any of their Related Parties and based on such documents and information as it shall   from time to time deem appropriate, continue to make its own decisions in taking or not taking   action under or based upon this Agreement, any other Loan Document or any related agreement   or any document furnished hereunder or thereunder.          10.8  No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of   the Administrative Agent or Lenders 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, a Lender or the Issuing Lender hereunder.          10.9  Fees.  Holdings shall pay: (i) to FNBCM,   a nonrefundable fee (the   “Arrangement Fee”) in accordance with the terms of a certain Engagement Letter dated August  24, 2020  (the “Engagement Letter”), between Holdings, the Administrative Agent and   FNBCM, as amended from time to time; (ii) to the Administrative Agent for its own account (the   “Agency Fee”),  a nonrefundable fee payable in accordance with the terms of the Engagement   Letter; and (iii) to the Administrative Agent for the benefit of the Lenders to the extent of their   respective Ratable Shares, a nonrefundable fee (the “Upfront Fee”) in the amount determined in   accordance with the terms set forth in the Engagement Letter.          10.10 Authorization to Release Collateral and Guarantors.  The Lenders and Issuing   Lenders authorize the Administrative Agent to release (i) any Collateral consisting of assets or   equity interests sold or otherwise disposed of in a sale or other disposition or transfer permitted   under Section 8.2.8 [Dispositions of Assets or Subsidiaries] or 8.2.7 [Liquidations, Mergers,   Consolidations], and (ii) any Guarantor from its obligations under the Guaranty Agreement if the   ownership interests in such Guarantor are sold or otherwise disposed of or transferred to persons   other than Loan Parties or Subsidiaries of the Loan Parties in a transaction permitted under   Section 8.2.8 [Dispositions of Assets or Subsidiaries] or 8.2.7 [Liquidations, Mergers,  Consolidations].          10.11 No Reliance on Administrative Agent’s Customer Identification Program.  Each   Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants   or assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,   participant’s or assignee’s customer identification program, or other obligations required or   imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the   regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP   Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the   following items relating to or in connection with any of the Loan Parties, their Affiliates or their   agents, the Loan Documents or the transactions hereunder or contemplated hereby: (i) any    {N0289348 2 }                     100    

 

     identity verification procedures, (ii) any recordkeeping, (iii) comparisons with government lists,   (iv) customer notices or (v) other procedures required under the CIP Regulations or such other   Laws.    11. GOVERNMENT CONTRACTING PROVISIONS          11.1  Representations Regarding Government Contracts.  Each Loan Party represents   and warrants that, as of the date of this Agreement, except as set forth in Schedule 11.1 hereto,   and for periods after the date of this Agreement, except as disclosed in writing to the   Administrative Agent:  (i) no Loan Party has received written notification of cost, schedule,   technical or quality problems that could reasonably result in claims against a Loan Party (or   successors in interest) by the Government, a prime contractor or a higher-tier subcontractor in  excess of $1,000,000, individually or in the aggregate; (ii) there are no Government Contracts  pursuant to which any Loan Party is reasonably likely to experience cost, schedule, technical or  quality problems that could reasonably result in claims against such Loan Party (or successors in  interest) by the Government, a prime contractor or a higher-tier subcontractor in excess of  $1,000,000, individually or in the aggregate; (iii) all of the Government Contracts were legally  awarded, are binding on the parties thereto, and are in full force and effect; (iv) to the knowledge  of the Loan Parties, the Government Contracts are not currently the subject of bid or award  protest proceedings, and no Government Contracts are reasonably likely to become the subject of  bid or award protest proceedings; and (v) to the knowledge of the Loan Parties, no Person has  notified any Loan Party that the Government intends to seek such Loan Party’s agreement to  lower rates under any of the Government Contracts, including any task order under any  Government Contracts, in excess of $250,000, individually or in the aggregate.            11.2  Compliance.  Each Loan Party represents and warrants that, as of the date of this   Agreement, except as set forth in Schedule 11.2 hereto, and for periods after the date of this   Agreement, except as disclosed in writing to the Administrative Agent:  (i) each Loan Party has   fully complied in all material respects with all terms and conditions of each Government   Contract to which it is a party; (ii) each Loan Party has complied in all material respects with all   statutory and regulatory requirements, including the Service Contract Act, the Contract Disputes   Act, the Procurement Integrity Act, the Federal Procurement and Administrative Services Act,   the Federal Acquisition Regulations (“FAR”) and related cost principles and the Cost   Accounting Standards, where and as applicable to each of the Government Contracts; (iii)  no   termination for default, cure notice or show cause notice has been issued and remains unresolved   with respect to any Government Contract, and no event, condition or omission has occurred or   exists that would constitute grounds for such action; (iv) no past performance evaluation   received by any Loan Party with respect to any such Government Contract has set forth a default   or other failure to perform thereunder or termination or default thereof; and (v) no money due to   any Loan Party pertaining to any Government Contract has been withheld or set-off as a result of  any claim(s) made against such Loan Party involving amounts in excess of $1,000,000,  individually or in the aggregate which, in the case of the matters set forth in clauses (iii), (iv) and  (v) of this paragraph would result in a Material Adverse Change.            11.3  Notices of Breach.  Each Loan Party represents and warrants that, as of the date of   this Agreement, except as set forth in Schedule 11.3 hereto, and for periods after the date of this   Agreement, except as disclosed in writing to the Administrative Agent, with respect to the    {N0289348 2 }                     101    

 

     Government Contracts, neither the Government, a prime contractor nor higher-tier subcontractor  under a Government Contract or, to the knowledge of the Loan Parties, any other Person has  notified any Loan Party of any actual or alleged violation or breach of any statute, regulation,  representation, certification, disclosure obligation, contract term, condition, clause, provision or  specification that could reasonably be expected to affect payments under Government Contracts  or adversely affect the award of Government Contracts to such Loan Party in the future.           11.4  Potential Liability.  Each Loan Party represents and warrants that, as of the date of   this Agreement, and for periods after the date of this Agreement, except as disclosed in writing to   the Administrative Agent, no Loan Party has taken any action and is not a party to any litigation   that could reasonably be expected to give rise to (i) liability under the False Claims Act, (ii) a   claim for price adjustment under the Truth in Negotiations Act, or (iii) to the knowledge of the   Loan Parties, any other written request for a reduction in the price of any Government Contract,   including claims based on actual or alleged defective pricing.  There exists no basis for a claim   against any Loan Party in excess of $500,000, individually or in the aggregate, by the   Government as a result of defective cost and pricing data submitted to the Government.  No   Loan Party is participating in any pending claim and no Loan Party is aware of any potential   claim under the Contract Disputes Act against the United States Government or any prime   contractor, subcontractor or vendor arising under or relating to any Government Contract or   Government bid.  Except as set forth in Schedule 11.4 hereto, no Loan Party has received any   written or, to the knowledge of the Loan Parties, oral notice of any outstanding claims or contract  disputes to which such Loan Party is a party relating to the Government Contracts under the  Contract Disputes Act or any other federal statute.          11.5  Defaults on Government Contracts.  Each Loan Party represents and warrants   that, as of the date of this Agreement, except as set forth in Schedule 11.5 hereto, and for periods   after the date of this Agreement, except as disclosed in writing to the Administrative Agent: (i)  no Loan Party has received any written or, to the knowledge of the Loan Parties, any oral, show   cause, cure, default or similar notice relating to any Government Contract; and (ii) no   Government Contract has been terminated for default in the past two (2) years.          11.6  Suspension, Debarment.  Each Loan Party represents and warrants that, as of the   date of this Agreement, except as set forth on Schedule 11.6 hereto, and for periods after the date   of this Agreement, except as disclosed in writing to the Administrative Agent, no Loan Party has   ever been, and is not now, suspended, debarred or proposed for suspension or debarment from   bidding on any Government Contract.  No suspension or debarment actions with respect to   Government Contracts have been commenced or, to the knowledge of the Loan Parties,   threatened against any Loan Party or any of its officers or employees.  There is no valid basis for   any Loan Party’s suspension or debarment from bidding on contracts or subcontracts for or with   the Government.  No cure notice or show cause notice has been issued to any Loan Party and   remains outstanding.          11.7  Negative Determinations of Responsibility.  No negative determination of   responsibility has been issued against any Loan Party with respect to any quotation, bid or   proposal submitted to the Government in the past two (2) years.     {N0289348 2 }                     102    

 

           11.8  Audits, Reviews, Inspections, Investigations.  Except as set forth in Schedule 11.8   hereto, in the last two (2) years, (i) no Loan Party has undergone and is not undergoing any audit,   inspection, survey or examination of records by the Government relating to any Government   Contract and involving fraud, deception, dishonesty, willful misconduct, criminal activity by   such Loan Party, (ii) no Loan Party has received written notice of, and no Loan Party has  undergone, any investigation or review relating to any Government Contract and involving fraud,  deception, dishonesty, willful misconduct, criminal activity or any allegation thereof by such  Loan Party, and (iii) no such audit, review, inspection, investigation, survey or examination of  records is, to the knowledge of the Loan Parties, threatened.  Except as set forth in Schedule 11.8   hereto, no Loan Party has received any official notice that (other than in the ordinary course of  business) it is or was being specifically audited or investigated by the General Accounting  Office, the Defense Contract Audit Agency of the United States Government, any state or federal  agency Inspector General, the contracting officer with respect to any Government Contract, or  the Department of Justice (including any United States Attorney).  No Loan Party has received  any written notice that any audit, review, inspection, investigation, survey or examination of  records described in Schedule 11.8 hereto, has revealed any fact, occurrence or practice which   could reasonably be expected to have a material adverse effect on the business, operations,   profits, prospects, properties and condition (financial or otherwise) of any Loan Party.            11.9  Internal Investigations and Disclosures.  Each Loan Party represents and warrants   that, as of the date of this Agreement, except as set forth in Schedule 11.9 hereto, and for periods   after the date of this Agreement, except as disclosed in writing to the Administrative Agent,   during the last two (2) years, (i) no Loan Party has conducted any internal investigation in   connection with which such Loan Party has used any legal counsel, auditor, accountant or   investigator, and (ii) no Loan Party has made any disclosure to the Government or other   customer or prime contractor or higher-tier subcontractor related to any suspected, alleged or  possible violation of a contract requirement, any apparent or alleged irregularity, misstatement or  omission arising under or relating to a Government Contract, or any violation of law or  regulation.          11.10 Government Investigations.  Each Loan Party represents and warrants that, as of   the date of this Agreement, and for periods after the date of this Agreement, except as disclosed   in writing to the Administrative Agent: (i)  no Loan Party has received any written notice that   any Loan Party’s employees, consultants or agents is (or during the last two (2) years has been)   under administrative, civil or criminal investigation or indictment by the Government with   respect to the conduct of the business of such Loan Party.; and (ii) no Loan Party has received   written notice of any, and there is no, pending investigation of any officer, employee or   representative of any Loan Party, nor within the last two (2) years has there been any audit or   investigation of any Loan Party or any officer, employee or representative of any Loan Party   relating to the business of any Loan Party resulting in an adverse finding with respect to any   alleged irregularity, misstatement or omission arising under or relating to any Government   Contract or Government bid.            11.11 Internal Controls.  Each Loan Party maintains systems of internal controls   (including cost accounting systems, estimating systems, purchasing systems, proposal systems,   billing systems and material management systems) that are in substantial compliance with all     {N0289348 2 }                     103    

 

     requirements of all of the Government Contracts and of applicable government laws and   regulations, except as set forth in Schedule 11.11 hereto.          11.12 Assignment of Contracts.  No existing Government Contract, Commercial   Contract or other Material Contract of any Loan Party (and no present or future interest of any   Loan Party, in whole or in part, in, to or under any such Government Contract, Commercial   Contract or Material Contract) is currently assigned, pledged, hypothecated or otherwise   transferred to any Person (other than Liens in favor of the Administrative Agent), and all   documentation necessary for compliance with the Assignment of Claims Act will be executed   and delivered by the Loan Parties to the Administrative Agent in connection with each   Government Contract required to be assigned pursuant hereto in accordance with Section 8.1.8   [Further Assurances] of this Agreement.          11.13 Government Notices.  If, at any time after the Closing Date, any Loan Party shall   receive any letter, notice, subpoena, court order, pleading or other document issued, given or   delivered by the Government, any prime contractor or by any Person acting for or on behalf of   the Government or such prime contractor with respect to, or in any manner related to any alleged   default, fraud, dishonesty, malfeasance or willful misconduct of any Loan Party, then such Loan   Party shall deliver a true, correct and complete copy of such letter, notice, subpoena, court order,   pleading or document to the Administrative Agent and the Administrative Agent’s counsel   within five (5) Business Days of such Loan Party’s receipt thereof.  Furthermore, if any Loan   Party shall issue, give or deliver to the Government, any prime contractor or any Person acting   for or on behalf of the Government or such prime contractor, any letter, notice, subpoena, court   order, pleading or other document with respect to, or in any manner related to, or otherwise in   response to any alleged default, fraud, dishonesty, malfeasance or willful misconduct of such  Loan Party, then such Loan Party shall deliver a true, correct and complete copy of such letter,  notice, subpoena, court order, pleading or other document to the Administrative Agent and the  Administrative Agent’s counsel concurrent with such Loan Party’s issuance or delivery thereof  to the Government, such prime contractor or any Person acting for or on behalf of the  Government or such prime contractor.  If any letter, notice, subpoena, court order, pleading or  other document required to be delivered to the Administrative Agent and the Administrative  Agent’s counsel pursuant to this Section 11.13 contains any information deemed “classified” by  the Government and/or the dissemination of any such information to the Administrative Agent or  the Administrative Agent’s counsel would result in such Loan Party violating any applicable  Law, then such Loan Party shall deliver to the Administrative Agent and the Administrative  Agent’s counsel a summary of such letter, notice, subpoena, court order, pleading or other  document containing a summary thereof, but including only so much detail as can be included  therein without violating any applicable Law.    12. MISCELLANEOUS          12.1  Modifications, Amendments or Waivers.  With the written consent of the   Required Lenders, the Administrative Agent, acting on behalf of all the Lenders, and the   Borrowers may from time to time enter into written agreements amending or changing any   provision of this Agreement or any other Loan Document or the rights of the Lenders or the  Loan Parties hereunder or thereunder, or may grant written waivers or consents hereunder or  thereunder.  Any such agreement, waiver or consent made with such written consent shall be    {N0289348 2 }                     104    

 

     effective to bind all the Lenders and the Loan Parties; provided, that no such agreement, waiver   or consent may be made which will:               12.1.1. Increase of Commitment.  Increase the amount of the Revolving Credit   Commitment or Term Loan Commitment of any Lender hereunder without the consent of such   Lender;               12.1.2. Extension of Payment; Reduction of Principal Interest or Fees;  Modification of Terms of Payment.  Whether or not any Loans are outstanding, extend the   Expiration Date or the time for payment of principal or interest of any Loan (excluding the due   date of any mandatory prepayment of a Loan), the Unused Line Fee or any other fee payable to   any Lender, or reduce the principal amount of or the rate of interest borne by any Loan or reduce   the Unused Line Fee or any other fee payable to any Lender, without the consent of each Lender   directly affected thereby;               12.1.3. Release of Collateral or Guarantor.  Except for sales of assets permitted   by Section 8.2.8 [Dispositions of Assets or Subsidiaries], release all or substantially all of the   Collateral or any Guarantor from its Obligations under the Guaranty Agreement without the   consent of all Lenders (other than Defaulting Lenders); or               12.1.4. Miscellaneous.  Amend Section 5.2 [Pro Rata Treatment of Lenders], 10.3   [Exculpatory Provisions] or 5.3 [Sharing of Payments by Lenders] or this Section 12.1   [Miscellaneous], alter any provision regarding the pro rata treatment of the Lenders or requiring   all Lenders to authorize the taking of any action or reduce any percentage specified in the   definition of Required Lenders, in each case without the consent of all of the Lenders; provided   that no agreement, waiver or consent which would modify the interests, rights or obligations of   the Administrative Agent, the Issuing Lender, or the Swing Loan Lender may be made without   the written consent of the Administrative Agent, the Issuing Lender or the Swing Loan Lender,   as applicable, and provided, further that, if in connection with any proposed waiver, amendment   or modification referred to in Sections 12.1.1 through 12.1.4 above, the consent of the Required  Lenders is obtained but the consent of one or more of such other Lenders whose consent is  required is not obtained (each a “Non-Consenting Lender”), then the Borrowers shall have the  right to replace any such Non-Consenting Lender with one or more replacement Lenders  pursuant to Section 5.6.2 [Replacement of a Lender].  Notwithstanding anything to the contrary  herein, no Defaulting Lender shall have any right to approve or disapprove any amendment,  waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires  the consent of all Lenders or each affected Lender may be effected with the consent of the  applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any   Defaulting Lender may not be increased or extended without the consent of such Lender, and   (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected   Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to   other affected Lenders shall require the consent of such Defaulting Lender.            12.2  No Implied Waivers; Cumulative Remedies.  No course of dealing and no delay   or failure of the Administrative Agent or any Lender in exercising any right, power, remedy or   privilege under this Agreement or any other Loan Document shall affect any other or future   exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof    {N0289348 2 }                     105    

 

     preclude any further exercise thereof or of any other right, power, remedy or privilege.  The   rights and remedies of the Administrative Agent and the Lenders under this Agreement and any   other Loan Documents are cumulative and not exclusive of any rights or remedies which they   would otherwise have.            12.3  Expenses; Indemnity; Damage Waiver.               12.3.1. Costs and Expenses.  The Borrowers shall pay (i) all reasonable out-of-  pocket expenses incurred by the Administrative Agent and its Affiliates (including the   reasonable fees, charges and disbursements of one counsel for the Administrative Agent and, as   necessary, one additional local counsel in each relevant jurisdiction) in connection with the   syndication of the credit facilities provided for herein, the preparation, negotiation, execution,   delivery and administration of this Agreement and the other Loan Documents or any   amendments, modifications or waivers of the provisions hereof or thereof (whether or not the   transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-  pocket expenses incurred by each of the Joint Lead Arrangers (including the reasonable fees,   charges and disbursements of counsel for each Joint Lead Arranger) as required by the terms of   the Commitment Letter dated April 26, 2019 and the Term Sheet attached hereto, (iii) all   reasonable out-of-pocket expenses incurred by the Issuing Lender in connection with the   issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment   thereunder, (iv) all out-of-pocket expenses incurred by the Administrative Agent, any Lender or   the Issuing Lender (including the fees, charges and disbursements of any counsel for the   Administrative Agent, any Lender or the Issuing Lender) in connection with the enforcement or   protection of its rights (A) in connection with this Agreement and the other Loan Documents,   including its rights under this Section, or (B) in connection with the Loans made or Letters of   Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,   restructuring or negotiations in respect of such Loans or Letters of Credit, and (iv) all reasonable   out-of-pocket expenses of the Administrative Agent’s regular employees and agents engaged  periodically to perform audits of the Loan Parties’ books, records and business properties.                 12.3.2. Indemnification by the Borrowers.  The Borrowers shall indemnify the   Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and each   Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)   against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities   and related expenses (including the fees, charges and disbursements of any counsel for any   Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or   by any Borrower or any other Loan Party arising out of, in connection with, or as a result of   (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or   instrument contemplated hereby or thereby, the performance or nonperformance by the parties   hereto of their respective obligations hereunder or thereunder or the consummation of the   transactions contemplated hereby or thereby, (ii) any aspect of the Acquisition, including the   performance or nonperformance by the parties hereto of their respective obligations related to the   Acquisition, (iii) any Loan or Letter of Credit or the use or proposed use of the proceeds   therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a  Letter of Credit if the documents presented in connection with such demand do not strictly  comply with the terms of such Letter of Credit), (iv) breach of representations, warranties or   covenants of the Borrowers under the Loan Documents, or (v) any actual or prospective claim,    {N0289348 2 }                     106    

 

   litigation, investigation or proceeding relating to any of the foregoing, including any such items  or losses relating to or arising under Environmental Laws or pertaining to environmental matters,  whether based on contract, tort or any other theory, whether brought by a third party or by any  Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto;  provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such  losses, claims, damages, liabilities or related expenses are determined by a court of competent  jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or  willful misconduct of such Indemnitee.  This Section 12.3.2 [Indemnification by the Borrower]  shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages,  etc. arising from any non-Tax claim.              12.3.3. Reimbursement by Lenders.  To the extent that the Borrowers for any  reason fail to indefeasibly pay in cash in full any amount required under Sections 12.3.1 [Costs  and Expenses] or 12.3.2 [Indemnification by the Borrowers] to be paid by it to the  Administrative Agent (or any sub-agent thereof), the Issuing Lender or any Related Party of any  of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such  sub-agent), the Issuing Lender or such Related Party, as the case may be, such Lender’s Ratable  Share (determined as of the time that the applicable unreimbursed expense or indemnity payment  is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss,  claim, damage, liability or related expense, as the case may be, was incurred by or asserted  against the Administrative Agent (or any such sub-agent) or the Issuing Lender in its capacity as  such, or against any Related Party of any of the foregoing acting for the Administrative Agent  (or any such sub-agent) or Issuing Lender in connection with such capacity.               12.3.4. Waiver of Consequential Damages, Etc.  To the fullest extent permitted  by applicable Law, each Loan Party and their Affiliates shall not assert, and each hereby waives,  any claim against any other party hereto, on any theory of liability, for special, indirect,  consequential or punitive damages (as opposed to direct or actual damages) arising out of, in  connection with, or as a result of, this Agreement, any other Loan Document or any agreement or  instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or  Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in Section 12.3.2  [Indemnification by the Borrowers] shall be liable for any damages arising from the use by  unintended recipients of any information or other materials distributed by it through  telecommunications, electronic or other information transmission systems in connection with this  Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.               12.3.5. Payments.  All amounts due under this Section shall be payable not later  than ten (10) days after demand therefor.          12.4  Holidays.  Whenever payment of a Loan to be made or taken hereunder shall be  due on a day which is not a Business Day such payment shall be due on the next Business Day  (except as provided in Section 4.2 [Interest Periods]) and such extension of time shall be  included in computing interest and fees, except that the Loans shall be due on the Business Day  preceding the Expiration Date if the Expiration Date is not a Business Day.  Whenever any  payment or action to be made or taken hereunder (other than payment of the Loans) shall be  stated to be due on a day which is not a Business Day, such payment or action shall be made or    {N0289348 2 }                     107   

 

     taken on the next following Business Day, and such extension of time shall not be included in  computing interest or fees, if any, in connection with such payment or action.          12.5  Notices; Effectiveness; Electronic Communication.                12.5.1. Notices Generally.  Except in the case of notices and other   communications expressly permitted to be given by telephone (and except as provided in Section   12.5.2 [Electronic Communications]), all notices and other communications provided for herein   shall be in writing and shall be delivered by hand or overnight courier service, mailed by   certified or registered mail or sent by telecopier (i) if to a Lender, to it at its address set forth in   its administrative questionnaire, or (ii) if to any other Person, to it at its address set forth on   Schedule 1.1(B).                  Notices sent by hand or overnight courier service, or mailed by certified or   registered mail, shall be deemed to have been given when received; notices sent by telecopier   shall be deemed to have been given when sent (except that, if not given during normal business   hours for the recipient, shall be deemed to have been given at the opening of business on the next   Business Day for the recipient).  Notices delivered through electronic communications to the   extent provided in Section 12.5.2 [Electronic Communications], shall be effective as provided in   such Section.                12.5.2. Electronic Communications.  Notices and other communications to the   Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic   communication (including e-mail and Internet or intranet websites) pursuant to procedures   approved by the Administrative Agent; provided that the foregoing shall not apply to notices to   any Lender or the Issuing Lender if such Lender or the Issuing 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 the Borrowers may, in their 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.  Unless the Administrative Agent otherwise prescribes,   (i) notices and other communications sent to an e-mail address shall be deemed received upon  the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return  receipt requested” function, as available, return e-mail or other written acknowledgement);   provided that if such notice or other communication is not sent during the normal business hours   of the recipient, such notice or communication shall be deemed to have been sent at the opening   of business on the next Business Day for the recipient, and (ii) notices or communications posted   to an Internet or intranet website shall be deemed received upon the deemed receipt by the   intended recipient at its e-mail address as described in the foregoing clause (i) of notification that   such notice or communication is available and identifying the website address therefor.               12.5.3. Change of Address, Etc.  Any party hereto may change its address, e-mail   address or telecopier number for notices and other communications hereunder by notice to the   other parties hereto.          12.6  Severability.  The provisions of this Agreement are intended to be severable.  If   any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any    {N0289348 2 }                     108    

 

   jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such  invalidity or unenforceability without in any manner affecting the validity or enforceability  thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.         12.7  Duration; Survival.  All representations and warranties of the Loan Parties  contained herein or made in connection herewith shall survive the execution and delivery of this  Agreement, the completion of the transactions hereunder and Payment In Full.  All covenants  and agreements of the Borrowers contained herein relating to the payment of principal, interest,  premiums, additional compensation or expenses and indemnification, including those set forth in  the Amended and Restated Notes, Section 5 [Payments] and Section 12.3 [Expenses; Indemnity;  Damage Waiver], shall survive Payment In Full.  All other covenants and agreements of the  Loan Parties shall continue in full force and effect from and after the date hereof and until  Payment In Full.         12.8  Successors and Assigns.              12.8.1. Successors and Assigns Generally.  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 neither the Borrowers nor any other Loan  Party may 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 Section 12.8.2 [Assignments by Lenders], (ii) by way of  participation in accordance with the provisions of Section 12.8.4 [Participations], or (iii) by way  of pledge or assignment of a security interest subject to the restrictions of Section 12.8.5 [Certain  Pledges; Successors and Assigns Generally] (and any other attempted assignment or transfer by  any party hereto shall be null and void).  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 Section 12.8.4  [Participations] and, to the extent expressly contemplated hereby, the Related Parties of each of  the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or  by reason of this Agreement.              12.8.2. Assignments by Lenders.  Any Lender may at any time assign to one or  more assignees all or a portion of its rights and obligations under this Agreement (including all  or a portion of its Commitment and the Loans at the time owing to it); provided that any such  assignment shall be subject to the following conditions:                           (i)   Minimum Amounts.                                 (A)   in the case of an assignment of the entire remaining  amount of the assigning Lender’s Commitment and the Loans 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 clause (i)(A) of this  Section 12.8.2, the aggregate amount of the Commitment (which for this purpose includes Loans    {N0289348 2 }                     109   

 

     outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal   outstanding balance of the Loans of the assigning Lender subject to each such assignment   (determined as of the date the Assignment and Assumption Agreement with respect to such   assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the  Assignment and Assumption Agreement, as of the Trade Date) shall not be less than $5,000,000,  in the aggregate taking into account any assignment in respect of the Revolving Credit  Commitment of the assigning Lender and the Term Loan of the assigning Lender, unless each of  the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the  Borrowers otherwise consent (each such consent not to be unreasonably withheld or delayed).                            (ii)  Proportionate Amounts.  Each partial assignment shall be   made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations   under this Agreement with respect to the Loan or the Commitment assigned.                            (iii) Required Consents.  No consent shall be required for any   assignment except for the consent of the Administrative Agent (which shall not be unreasonably   withheld or delayed) and:                                  (A)   the consent of the Borrowers (such consent not to   be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has   occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender,   an Affiliate of a Lender or an Approved Fund; provided that the Borrowers shall be deemed to   have consented to any such assignment unless it shall object thereto by written notice to the   Administrative Agent within five (5) Business Days after having received notice thereof; and                                  (B)   the consent of the Issuing Lender (such consent not   to be unreasonably withheld or delayed) shall be required for any assignment that increases the   obligation of the assignee to participate in exposure under one or more Letters of Credit (whether   or not then outstanding).                            (iv)  Assignment and Assumption Agreement.  The parties to   each assignment shall execute and deliver to the Administrative Agent an Assignment and   Assumption Agreement, together with a processing and recordation fee of $3,500, and the   assignee, if it is not a Lender, shall deliver to the Administrative Agent an administrative   questionnaire provided by the Administrative Agent.                             (v)   No Assignment to Natural Persons.  No such assignment   shall be made to a natural person.     Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section   12.8.3 [Register], from and after the effective date specified in each Assignment and Assumption   Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the   interest assigned by such Assignment and Assumption Agreement, 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 Agreement, be released from   its obligations under this Agreement (and, in the case of an Assignment and Assumption   Agreement covering all of the assigning Lender’s rights and obligations under this Agreement,     {N0289348 2 }                     110    

 

     such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of   Sections 4.4 [LIBOR Rate Unascertainable; Etc.], 5.8 [Increased Costs], and 12.3 [Expenses,   Indemnity; Damage Waiver] with respect to facts and circumstances occurring prior to the   effective date of such assignment.  Any assignment or transfer by a Lender of rights or   obligations under this Agreement that does not comply with this Section 12.8.2 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 Section 12.8.4 [Participations].               12.8.3. Register.  The Administrative Agent, acting solely for this purpose as an   agent of the Borrowers, shall maintain a record of the names and addresses of the Lenders, and   the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the   terms hereof from time to time.  Such register shall be conclusive, and the Borrowers, the   Administrative Agent and the Lenders may treat each Person whose name is in such register   pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,   notwithstanding notice to the contrary.  Such register shall be available for inspection by the   Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior   notice.               12.8.4. Participations.  Any Lender may at any time, without the consent of, or   notice to, the Borrowers or the Administrative Agent, sell participations to any Person (other   than a natural person or the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries) (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 Borrowers, the Administrative Agent, the Lenders, and the Issuing Lender shall   continue to deal solely and directly with such Lender in connection with such Lender’s rights   and obligations under this Agreement.                  Any agreement or instrument pursuant to which a Lender sells such a   participation shall provide that such Lender shall retain the sole right to enforce this Agreement   and to approve any amendment, modification or waiver of any provision of this Agreement;   provided that such agreement or instrument may provide that such Lender will not, without the   consent of the Participant, agree (other than as is already provided for herein) to any amendment,   modification or waiver with respect to Sections 12.1.1 [Increase of Commitment], 12.1.2   [Extension of Payment, Etc.], or 12.1.3 [Release of Collateral or Guarantor]) that affects such   Participant.  The Borrowers agree that each Participant shall be entitled to the benefits of   Sections 4.4 [LIBOR Rate Unascertainable, Etc.], 5.8 [Increased Costs], 5.10 [Indemnity] and   5.9 [Taxes] (subject to the requirements and limitations therein, including the requirements under   Section 5.9.7 [Status of Lenders] (it being understood that the documentation required under   Section 5.9.7 [Status of Lenders] 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 Section  12.8.2 [Assignments by Lenders]; provided that such Participant (A) agrees to be subject to the   provisions of Section 5.6.2 [Replacement of a Lender] and Section 5.6.3 [Designation of a   Different Lending Office] as if it were an assignee under Section 12.8.2 [Assignments by   Lenders]; and (B) shall not be entitled to receive any greater payment under Sections 5.8   [Increased Costs] or 5.9 [Taxes], with respect to any participation, than its participating Lender    {N0289348 2 }                     111    

 

   would have been entitled to receive, except to the extent such entitlement to receive a greater  payment results from a Change in Law that occurs after the Participant acquired the applicable  participation.  Each Lender that sells a participation agrees, at the Borrowers’ request and  expense, to use reasonable efforts to cooperate with the Borrowers to effectuate the provisions of  Section 5.6.2 [Replacement of a Lender] and Section 5.6.3 [Designation of a Different Lending  Office] with respect to any Participant.  To the extent permitted by law, each Participant also  shall be entitled to the benefits of Section 9.2.3 [Set-off] as though it were a Lender; provided  that such Participant agrees to be subject to Section 5.3 [Sharing of Payments by Lenders] as  though it were a Lender.  Each Lender that sells a participation shall, acting solely for this  purpose as an agent of the Borrowers, maintain a register on which it enters the name and  address of each Participant and the principal amounts (and stated interest) of each Participant’s  interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);  provided that no Lender shall have any obligation to disclose all or any portion of the Participant  Register (including the identity of any Participant or any information relating to a Participant’s  interest in any commitments, loans, letters of credit or its other obligations under any Loan  Document) to any Person except to the extent that such disclosure is necessary to establish that  such commitment, loan, letter of credit or other obligation is in registered form under Section  5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register  shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is  recorded in the Participant Register as the owner of such participation for all purposes of this  Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the  Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for  maintaining a Participant Register.              12.8.5. Certain Pledges; Successors and Assigns Generally.  Any Lender may at  any time pledge or assign a security interest in all or any portion of its rights under this  Agreement to secure obligations of such Lender, including any pledge or assignment to secure  obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release  such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for  such Lender as a party hereto.           12.9  Confidentiality.              12.9.1. General.  Each of the Administrative Agent, the Lenders and the Issuing  Lender agrees to maintain the confidentiality of the Information, except that Information may be  disclosed (i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,  employees, agents, advisors and other representatives (it being understood that the Persons to  whom such disclosure is made will be informed of the confidential nature of such Information  and instructed to keep such Information confidential), (ii) to the extent requested by any  regulatory authority purporting to have jurisdiction over it (including any self-regulatory  authority, such as the National Association of Insurance Commissioners), (iii) to the extent  required by applicable Laws or regulations or by any subpoena or similar legal process, (iv) to  any other party hereto, (v) 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, (vi) subject to an  agreement containing provisions substantially the same as those of this Section, to (A) any  assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or   {N0289348 2 }                     112   

 

     obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors)  to any swap or derivative transaction relating to the Borrowers and their Obligations, (vii) with   the consent of the Borrowers or (viii) to the extent such Information (Y) becomes publicly   available other than as a result of a breach of this Section or (Z) becomes available to the   Administrative Agent, any Lender, the Issuing Lender or any of their respective Affiliates on a   nonconfidential basis from a source other than the Borrowers or the other Loan Parties.  Any   Person required to maintain the confidentiality of Information as provided in this Section shall be   considered to have complied with its obligation to do so if such Person has exercised the same   degree of care to maintain the confidentiality of such Information as such Person would accord   to its own confidential information.               12.9.2. Sharing Information with Affiliates of the Lenders.  Each Loan Party   acknowledges that from time to time financial advisory, investment banking and other services   may be offered or provided to the Borrowers or one or more of their Affiliates (in connection   with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of   such Lender and each of the Loan Parties hereby authorizes each Lender to share any   information delivered to such Lender by such Loan Party and its Subsidiaries pursuant to this   Agreement to any such Subsidiary or Affiliate subject to the provisions of Section 12.9.1   [General].          12.10 Counterparts; Integration; Effectiveness.               12.10.1. 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 any separate letter agreements   with respect to fees payable to the Administrative Agent, 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 including any prior   confidentiality agreements and commitments.  Except as provided in Section 7 [Conditions Of   Lending And Issuance Of Letters Of Credit], 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 e-mail shall be effective as delivery of a manually executed counterpart of this   Agreement.          12.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE;   SERVICE OF PROCESS; WAIVER OF JURY TRIAL.               12.11.1. Governing Law.  This Agreement shall be deemed to be a contract under   the Laws of the State of Maryland without regard to its conflict of laws principles.  Each standby   Letter of Credit issued under this Agreement shall be subject either to the rules of the Uniform   Customs and Practice for Documentary Credits, as most recently published by the International   Chamber of Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the   International Standby Practices (ICC Publication Number 590) (“ISP98”), as determined by the  Issuing Lender, and each trade Letter of Credit shall be subject to UCP, and in each case to the    {N0289348 2 }                     113    

 

   extent not inconsistent therewith, the Laws of the State of New York without regard to is conflict  of laws principles.              12.11.2. SUBMISSION TO JURISDICTION.  THE BORROWERS AND EACH  OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR  ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION AND VENUE  OF THE STATE AND FEDERAL COURTS OF THE COMMONWEALTH OF  PENNSYLVANIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY  ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT  OR ANY OTHER LOAN DOCUMENT, OR 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 HEARD AND DETERMINED IN SUCH  PENNSYLVANIA 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.  NOTHING IN  THIS AGREEMENT OR IN ANY       OTHER LOAN DOCUMENT SHALL AFFECT ANY  RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE ISSUING  LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING  RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE  BORROWERS OR ANY OTHER LOAN PARTY OR THEIR PROPERTIES IN THE  COURTS OF ANY JURISDICTION.              12.11.3. WAIVER OF VENUE.  THE BORROWERS AND EACH OTHER  LOAN PARTY 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 THIS SECTION 12.11.   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 AND AGREES NOT ASSERT ANY SUCH  DEFENSE.              12.11.4. SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN  SECTION   12.5 [NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION].   NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO  TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.               12.11.5. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL  PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS   {N0289348 2 }                     114   

 

 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, ADMINISTRATIVE 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 12.11.5         [WAIVER OF JURY   TRIAL].      12.12 USA Patriot Act Notice.  Each Lender that is subject to the USA Patriot Act and the   Administrative Agent (for itself and not on behalf of any Lender) hereby notifies Loan Parties   that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and   record information that identifies the Loan Parties, which information includes the name and   address of Loan Parties and other information that will allow such Lender or Administrative   Agent, as applicable, to identify the Loan Parties in accordance with the USA Patriot Act.   12.13  Amendment and Restatement.  (a) The parties hereto agree that, on the Closing Date,   the following transactions shall be deemed to occur automatically, without further action by any   party hereto: (i) the Existing Credit Agreement shall be deemed to be amended and restated in its   entirety pursuant to this Agreement; (ii) all Loans (as defined in the Existing Credit Agreement)   and other Obligations (as defined in the Existing Credit Agreement) outstanding on the Closing   Date immediately prior to effectiveness of this Agreement shall in all respects be continuing and   shall be deemed to be Loans and Obligations outstanding hereunder on the terms set forth herein;   (iii) the guarantees made to the lenders, the administrative agent and each other holder of the  Obligations (as defined in the Existing Credit Agreement) under or in connection with the  Existing Credit Agreement shall remain in full force and effect, and continued on the terms set  forth herein, with respect to the Obligations (as defined herein) and are hereby reaffirmed  (subject to any amendment and restatement or amendment thereof pursuant to the Loan  Documents (as defined herein)); and (iv) the security interests and liens in favor of the  Administrative Agent, for the benefit of the holders of the Obligations (as defined in the Existing  Credit Agreement), created under the collateral documents entered into in connection with the  Existing Credit Agreement shall remain in full force and effect with respect to the Obligations  (as defined herein) and are hereby reaffirmed (subject to any amendment and restatement or  amendment thereof pursuant to the Loan Documents (as defined herein); it being acknowledged  and agreed that any such security interests and liens that are not so amended and restated  (including all such security interests and liens that are amended) in connection with this  agreement shall nonetheless remain in full force and effect with respect to the Obligations (as  defined herein) and are hereby reaffirmed as securing the Obligations (as defined herein). The  execution and delivery of this Agreement or any other Loan Document shall not constitute a  novation of any indebtedness or other obligations owing to the Lenders or the Administrative  Agent under the Existing Credit Agreement or any of the other Loan Documents (as defined in the Existing Credit Agreement) based on facts or events occurring or existing prior to the execution and delivery of this Agreement.    {N0289348 2 }                     115 

 

         (b)   It is understood that some or all of the Loans (as defined in the Existing Credit  Agreement) outstanding under the Existing Credit Agreement immediately prior to the  effectiveness of this Agreement may remain outstanding upon the effectiveness of this  Agreement and be deemed a portion of the Loans advanced hereunder on the Closing Date. On  the Closing Date upon the effectiveness of this Agreement, the Administrative Agent shall make  such assignments, reallocations and transfers of funds as are necessary in order that (i) the  balance of Loans (as defined in the Existing Credit Agreement) outstanding under the Existing  Credit Agreement immediately prior to effectiveness of this Agreement (which shall, upon  effectiveness of this Agreement, become Loans hereunder on the Closing Date that are deemed  funded hereunder on the Closing Date), together with any Loans funded hereunder on the  Closing Date by the Lenders, and (ii) the Lenders’ respective participation interests in Swing  Loans shall, in each case, reflect the Commitments of the Lenders hereunder as set forth on  Schedule 1.1(B) hereto on the Closing Date.  The Loan Parties and each Lender consent to such  assignments, reallocations and transfers of funds by the Administrative Agent, and each Lender  agrees that on the Closing Date such Lender will fund Loans, and will make full cash settlement  with the other Lenders either directly or through the Administrative Agent as the Administrative  Agent may direct or approve, and will automatically acquire risk participations in Swing Loans  in amounts such that, together with the assignments, reallocations and transfers of funds by the  Administrative Agent described above, the Loans outstanding hereunder on the Closing Date and  the participation interests held by each of the Lenders in Swing Loans after giving effect to this  Agreement are held by the Lenders in amounts that reflect the Commitments of the Lenders  hereunder as set forth on Schedule 1.1(B) hereto on the Closing Date.   {N0289348 2 }                     116   

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]             IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized,  have executed this Agreement as of the day and year first above written.                                      BORROWERS:                                      DLH HOLDINGS CORP.                                        By:/s/ Kathryn M. JohnBull                                                       Name: Kathryn M. JohnBull                                                        Title: Chief Financial Officer                                                   DLH SOLUTIONS, INC.                                       By:/s/ Kathryn M. JohnBull                                                       Name: Kathryn M. JohnBull                                                        Title: Chief Financial Officer                                                   DANYA INTERNATIONAL, LLC.                                       By:/s/ Kathryn M. JohnBull                                                       Name: Kathryn M. JohnBull                                                        Title: Chief Financial Officer                                                   SOCIAL & SCIENTIFIC SOLUTIONS, INC.                                       By:/s/ Kathryn M. JohnBull                                                       Name: Kathryn M. JohnBull                                                        Title: Chief Financial Officer                                                    IRVING BURTON ASSOCIATES, LLC                                       By:/s/ Kathryn M. JohnBull                                                       Name: Kathryn M. JohnBull                                                        Title: Chief Financial Officer                {N0289348 2 }                          

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                                                                                                                  FIRST NATIONAL BANK OF                                      PENNSYLVANIA, as Administrative Agent and as                                      a Lender                                         By: /s/ Douglas T. Brown                                                         Name: Douglas T. Brown                                                           Title: Senior Vice President                  {N0289348 2 }                       

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                        MANUFACTURERS AND TRADTERS TRUST                                      COMPANY, as a Lender                                         By: /s/ R. Mark Swaak                                                            Name: R. Mark Swaak                                                              Title: Vice President    {N0289348 2 }                       

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                                                                SERVISFIRST BANK                                        By: /s/ Hal Clemmer                                                              Name: Hal Clemmer                                                                Title: Regional President    {N0289348 2 }                       

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                                                           ATLANTIC UNION BANK                                        By: /s/ Joseph Humphries                                                         Name: Joseph Humphries                                                           Title:  Market Executive                      {N0289348 2 }                       

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                            UNITED BANK                                        By: /s/ Larkin Wilson                                                            Name: Larkin Wilson                                                              Title: Vice President, Commercial Banking                                             {N0289348 2 }                       

 

                [SIGNATURE PAGE OF CREDIT AGREEMENT]                                            WILMINGTON SAVINGS FUND SOCIETY,                                      FSB                                        By:  /s/ James A. Gise                                                           Name: James A. Gise                                                              Title: Senior Vice President                  {N0289348 2 }                       

 

                                    SCHEDULE 1.1(A)                                  PRICING GRID                                                VARIABLE PRICING AND FEES BASED ON TOTAL LEVERAGE RATIO                                                                              [see attached]                                                                                                            {N0289348 2 }                      1   

 

                                    SCHEDULE 1.1(B)           COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES                                    [see attached]    {N0289348 2 }                        

 

                                     EXHIBIT 1.1(A)                      ASSIGNMENT AND ASSUMPTION AGREEMENT             THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Assignment") is dated   as of the Effective Date set forth below and is entered into by and between   ____________________________________________________ (the "Assignor") and   ________________________________________________ (the "Assignee").  Capitalized terms   used but not defined herein shall have the meanings given to them in the Amended and Restated   Credit Agreement identified below (as it may hereafter from time to time be restated, amended,  modified or supplemented, the "Credit Agreement"), receipt of a copy of which is hereby   acknowledged by each Assignee.  The Standard Terms and Conditions set forth in Annex 1   attached hereto are hereby agreed to and incorporated herein by reference and made a part of this   Assignment as if set forth herein in full.          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to each   Assignee, and each Assignee hereby irrevocably purchases and assumes from the Assignor,   subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,   as of the Effective Date inserted by the Administrative Agent as contemplated below, the interest   in and to all of the Assignor's rights and obligations under the Credit Agreement and any other   documents or instruments delivered pursuant thereto that represents the amount and percentage   interests identified below each Assignee's name on the signature pages hereto, of all of the   Assignor's outstanding rights and obligations under the respective facilities identified on the   signature pages hereto (including, to the extent included in any such facilities, letters of credit   and swing loans) (each an "Assigned Interest" and collectively the "Assigned Interests").  Such   sale and assignment is without recourse to the Assignor and, except as expressly provided in this   Assignment, without representation or warranty by the Assignor.    Assignor:                  ______________________________    Assignee:                  ______________________________                                 [and is an Affiliate/Approved Fund of [identify   Lender]1]   3.    Borrowers:           DLH Holdings Corp., DLH Solutions, Inc., Danya                              International, LLC, Social & Scientific Systems, Inc. and                              Irving Burton Associates, LLC    4.    Administrative Agent: First National Bank of Pennsylvania, as the administrative                              agent under the Credit Agreement    5.    Credit Agreement:    The Amended and Restated Credit Agreement dated                              __________ __, 2020 by and among DLH Holdings Corp.,                              DLH  Solutions, Inc., Danya International, LLC, Social &                                                       1 Select as applicable.     {N0289348 2 }                        

 

                               Scientific Systems, Inc. and Irving Burton Associates, LLC, the                             Lenders parties thereto, First National Bank of Pennsylvania,                             as Administrative Agent, and the Guarantors now or hereafter                             party thereto, as the same may be amended, restated or                             supplemented from time to time.   6.    Assigned Interest:                          Aggregate       Amount of     Percentage     CUSIP                          Amount of     Commitment/    Assigned of    Number                         Commitment/        Loans     Commitment/                                                              2                        Loans for all    Assigned       Loans     Facility Assigned      Lenders  Revolving Credit            $               $                %               Commitment  Term Loan                   $               $                %               Commitment     7.    [Trade Date:      ______________]3          8.    Effective Date:   ________________, 20___ [TO BE INSERTED BY        ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE           OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]4                                  [SIGNATURE PAGES FOLLOW]                                                      2 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  3 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.  4 Assignor shall pay a fee of $3,500 to the Administrative Agent in connection with the Assignment and Assumption.    {N0289348 2 }                        

 

                                                                                         The terms set forth in this Assignment are hereby agreed to:                                       ASSIGNOR                                        [NAME OF ASSIGNOR]                                          By:                                                                             Name:                                      Title:                                          ASSIGNEE                                        [NAME OF ASSIGNEE]                                          By:                                                                             Name:                                      Title:            Consented to and Accepted:    FIRST NATIONAL BANK OF PENNSYLVANIA,   as Administrative Agent      By:                                   Name:  Title:        {N0289348 2 }                        

 

                                                                                   [Consented to:]5     BORROWERS    DLH HOLDINGS CORP.      By:                                   Name:  Title:      DLH SOLUTIONS, INC.      By:                                   Name:  Title:      DANYA INTERNATIONAL, LLC      By:                                   Name:  Title:      SOCIAL & SCIENTIFIC SYSTEMS, INC.         By:                                   Name:  Title:      IRVING BURTON ASSOCIATES, LLC             By:                                   Name:  Title:                                                       5 To be added only if the consent of the Borrowers is required by the terms of the Credit Agreement.   {N0289348 2 }                        

 

                                                                                                                     ANNEX 1                       STANDARD TERMS AND CONDITIONS FOR                   ASSIGNMENT AND ASSUMPTION AGREEMENT          1.    Representations and Warranties.                 1.1   Assignor.  The Assignor (a) represents and warrants that (i) it is the legal  and beneficial owner of the Assigned Interests, (ii) the Assigned Interests are free and clear of  any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has  taken all action necessary, to execute and deliver this Assignment and to consummate the  transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any  statements, warranties or representations made in or in connection with any Loan Document,  (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the  Credit Agreement or any other instrument or document delivered pursuant thereto, other than this  Assignment (herein collectively the "Loan Documents"), or any collateral thereunder, (iii) the  financial condition of the Borrowers, any of their respective Subsidiaries or Affiliates or any  other Person obligated in respect of any Loan Document or (iv) the performance or observance  by the Borrowers, any of their Subsidiaries or Affiliates or any other Person of any of their  respective obligations under any Loan Document.               1.2   Assignee.  Each Assignee severally (a) represents and warrants that (i) it  has full power and authority, and has taken all action necessary, to execute and deliver this  Assignment and to consummate the transactions contemplated hereby and to become a Lender  under the Credit Agreement, (ii) it meets all requirements, if any, of an eligible assignee under  the Credit Agreement, (iii) from and after the Effective Date, it shall be bound by the provisions  of the Credit Agreement and, to the extent applicable to Lenders generally, consents to the terms  of any other Loan Documents and, to the extent of its Assigned Interests, shall have the  obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together  with copies of the most recent financial statements delivered pursuant to Section 6.1.6 [and  Section 8.3] thereof, as applicable, and such other documents and information as it has deemed  appropriate to make its own credit analysis and decision to enter into this Assignment and to  purchase its Assigned Interests on the basis of which it has made such analysis and decision, and  (v) attached to the Assignment is any documentation required to be delivered by it pursuant to  the terms of the Credit Agreement, duly completed and executed by such Assignee; and  (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the  Assignor or any other Lender, and based on such documents and information as it shall deem  appropriate at the time, continue to make its own credit decisions in taking or not taking action  under the Loan Documents, and (ii) it will perform in accordance with their terms all of the  obligations which by the terms of the Loan Documents are required to be performed by it as a  Lender.         2.    Payments.  From and after the Effective Date, the Administrative Agent shall  make all payments in respect of each Assignee's Assigned Interests (including payments of  principal, interest, fees and other amounts) to the Assignor for amounts which have accrued up to    {N0289348 2 }                        

 

   but excluding the Effective Date and to the respective Assignee for amounts which have accrued  from and after the Effective Date.         3.    General Provisions.  This Assignment shall be binding upon, and inure to the  benefit of, the parties hereto and their respective successors and permitted assigns.  This  Assignment may be executed in any number of counterparts, each of which when so executed  and delivered shall be deemed an original, but all such counterparts together shall constitute but  one and the same instrument.  The parties acknowledge and agree that delivery of an executed  counterpart of a signature page of this Assignment by telecopy or e-mail shall be effective as  delivery of a manually executed counterpart of this Assignment.  This Assignment shall be  governed by, and construed in accordance with, the laws of the State of Maryland without regard  to its conflict of laws principles.     {N0289348 2 }                        

 

                                                                                                                  EXHIBIT 1.1(C)                                                                               FORM OF                            AMENDED AND RESTATED                COLLATERAL ASSIGNMENT OF CONTRACT RIGHTS          THIS ASSIGNMENT is made and entered into the ___ day of _________ 2020, by DLH   HOLDINGS CORP., a New Jersey corporation ("Holdings"), DLH SOLUTIONS, INC., a   Georgia corporation ("Solutions"), DANYA INTERNATIONAL, LLC, a Maryland limited   liability company ("Danya"), SOCIAL & SCIENTIFIC SYSTEMS, INC., a Delaware   corporation ("Systems") and IRVING BURTON ASSOCIATES, LLC, a Virginia limited   liability company (“IBA” and, together with Holdings, Danya, Solutions and Systems,   individually and collectively, "Assignor"), in favor of FIRST NATIONAL BANK OF   PENNSYLVANIA, as Agent ("Assignee").                                    WITNESSETH:          WHEREAS, pursuant to that certain Amended and Restated Credit Agreement (as it may   hereafter from time to time be restated, amended, modified or supplemented, the "Credit   Agreement") of even date herewith among Assignor, the Guarantors party thereto, the Lenders   party thereto and Assignee, Assignee and the Lenders have agreed to provide certain loans to the   Borrowers; and          WHEREAS, in order to provide additional security for the repayment of such loans, the  parties hereto desire that Assignee for the benefit of the Lenders be granted an assignment and  security interest in all rights of Assignor under those certain contracts listed on Schedule I hereto  (each an "Assigned Contract" and collectively the "Assigned Contracts").         NOW, THEREFORE, in consideration of the promises and covenants contained herein  and other good and valuable consideration, the receipt and sufficiency of which are  acknowledged by Assignor, and intending to be legally bound, Assignor collaterally assigns and  grants to Assignee for the benefit of the Lenders a security interest in all of its right, title and  interest in and to each Assigned Contract to the extent assignable and to the fullest extent  permitted by Law.          1.   Except as otherwise expressly provided herein, capitalized terms used in this   Assignment shall have the respective meanings given to them in the Credit Agreement.          2.   Assignor has granted, bargained, sold, assigned, transferred and set over and by   these presents does hereby collaterally assign and grant to Assignee, its respective successors   and permitted assigns, a security interest in all the rights, interests and privileges which the   Assignor has or may have in or under any Assigned Contract, including without limiting the   generality of the foregoing, the present and continuing right with full power and authority, in its   own name, or in the name of the Assignor, or otherwise, but subject to the provisions and   limitations of Section 3 hereof, (i) to make claim for, enforce, perform, collect and receive any   and all rights under any Assigned Contract, (ii) to do any and all things which Assignor is or   may become entitled to do under any Assigned Contract, and (iii) to make all waivers and     {N0289348 2 }                    49936149 

 

   agreements, give all notices, consents and releases and other instruments and to do any and all  other things whatsoever which Assignor is or may become entitled to do under any Assigned  Contract.         3.    The acceptance of this Assignment and the payment or performance under the  Assigned Contracts shall not constitute a waiver of any rights of Assignee under the terms of the  Notes, the Credit Agreement or any other of the Loan Documents, it being understood that,  unless an Event of Default shall have occurred and be continuing, and the exercise of Assignee's  rights under Section 4 hereof, Assignor shall have all rights to the Assigned Contracts and to  retain, use and enjoy the same and the Assignee shall not exercise any of the rights set forth in  Section 2 above and Section 4 below.         4.    Assignor, upon the occurrence and during the continuance of an Event of Default,  hereby authorizes Assignee, at Assignee's option, to do all acts required or permitted under any  Assigned Contract as Assignee in its sole discretion may deem proper.  Assignor does hereby  irrevocably constitute and appoint Assignee, while this Assignment remains in force and effect  and, in each instance, to the full extent permitted by applicable Law, its true and lawful attorney  in fact, coupled with an interest and with full power of substitution and revocation, for Assignor  and in its name, place and stead, to demand and enforce compliance with all the terms and  conditions of each Assigned Contract and all benefits accrued thereunder, whether at law, in  equity or otherwise; provided, however, that Assignee shall not exercise any such power, unless  an Event of Default shall have occurred and be continuing.         5.    Assignee shall not be obligated to perform or discharge any obligation or duty to  be performed or discharged by Assignor under any Assigned Contract, and Assignor hereby  agrees to indemnify Assignee for, and to save Assignee harmless from, any and all liability  arising under the Assigned Contracts, other than arising or resulting from Assignee's (or its  agents, employees or contractors) gross negligence or willful misconduct.         6.    Assignor agrees that this Assignment and the designation and directions herein set  forth are irrevocable.         7.    Neither this Assignment nor any action or inaction on the part of Assignee shall  constitute an assumption on the part of Assignee of any obligations or duties under any  Assigned Contract.         8.    Assignor covenants and warrants that:         (a)   it has the power and authority to assign each Assigned Contract and there have  been no prior assignments of any Assigned Contract;         (b)   it will not assign, pledge or otherwise encumber any Assigned Contract without  the prior written consent of Assignee, except as may be otherwise permitted under the Credit  Agreement; and         (c)   it will execute from time to time any and all additional assignments or  instruments of further assurance to Assignee, as Assignee may at any time reasonably request.    {N0289348 2 }                       

 

         9.    At such time as the Loans are Paid in Full, this Assignment and all of Assignee's  right, title and interest hereunder with respect to the Assigned Contracts shall terminate.         10.   This Assignment shall inure to the benefit of Assignee, its respective successors  and permitted assigns, and shall be binding upon Assignor, its successors, successors in title and  assigns.         11.   This Agreement shall be governed by and construed in accordance with the  internal laws of the State of Maryland without regard to its conflicts of laws principles.         12.   Assignor acknowledges and agrees that a telecopy transmission to Assignee of, or  the e-mail delivery of a portable document format (PDF) file to Assignee containing, signature  pages hereof purporting to be signed on behalf of Assignor shall constitute effective and binding  execution and delivery hereof by Assignor.                            [SIGNATURE PAGE FOLLOWS]   {N0289348 2 }                       

 

                                                                                       IN WITNESS WHEREOF, the parties have executed this instrument under seal as of the  day and year first above written.                                       ASSIGNOR:                                      DLH HOLDINGS CORP.                                                                            By:                                                                             Name:                                                                           Title:                                                                                                                                                      DLH SOLUTIONS, INC.                                                                            By:                                                                             Name:                                                                           Title:                                                                                                                                                      DANYA INTERNATIONAL, LLC                                                                            By:                                                                             Name:                                                                           Title:                                                                                                                                                      SOCIAL & SCIENTIFIC SYSTEMS, INC.                                                                            By:                                                                             Name:                                                                           Title:                                                                                                                                                            IRVING BURTON ASSOCIATES, LLC                                                                            By:                                                                             Name:                                                                           Title:                                                                                                                   ASSIGNEE:                                                                            FIRST NATIONAL BANK OF                                      PENNSYLVANIA, as Administrative Agent                                        By:                                                                             Name:                                                                           Title:                                        {N0289348 2 }                        

 

                                                                                                COLLATERAL ASSIGNMENT OF CONTRACT RIGHTS                                                                           SCHEDULE I      Acquisition Documents (as defined in the Credit Agreement)      {N0289348 2 }                        

 

                                 EXHIBIT 1.1(G)(1)                                     FORM OF             GUARANTOR JOINDER AND ASSUMPTION AGREEMENT        THIS GUARANTOR JOINDER AND ASSUMPTION AGREEMENT is made as of  _______________, 20___, by _________________________________________________, a  _________________________ [corporation/partnership/limited liability company] (the "New  Guarantor").                                     Background         Reference is made to the (i) Amended and Restated Credit Agreement dated as  _____________ __, 2020, as the same may be amended, restated, supplemented or modified  from time to time (the "Credit Agreement") by and among DLH Holdings Corp., a New Jersey  corporation ("Holdings"), DLH Solutions, Inc., a Georgia corporation ("Solutions"), Danya  International, LLC, a Maryland limited liability company ("Danya"), Social & Scientific  Systems, Inc., a Delaware corporation ("Systems") and Irving Burton Associates, LLC, a  Virginia limited liability company (“IBA” and collectively with Holdings, Solutions, Danya and  Systems, the "Borrowers"), First National Bank of Pennsylvania, in its capacity as administrative  agent for the Lenders party thereto (the "Administrative Agent"), the Guarantors party thereto  and the Lenders party thereto, (ii) the Amended and Restated Security Agreement, dated as of  __________, 20__, as the same may be amended, restated, supplemented or modified from time  to time (the “Security Agreement”), (iii) the Amended and Restated Pledge Agreement, dated as  of _________ __, 20__, as the same may be amended, restated, supplemented or modified from  time to time (the “Pledge Agreement”) made by the Loan Parties and Holdings in favor of the  Administrative Agent, (iv) the Amended and Restated Patent, Trademark and Copyright Security  Agreement, dated ________ __, 20__, as the same may be amended, restated, supplemented or  modified from time to time (the “Patent, Trademark and Copyright Security Agreement”) among  the Loan Parties and the Administrative Agent for the benefit of the Lenders, (v) the Amended  and Restated Collateral Assignment of Contract Rights, dated _________ __, 20__, as the same  may be amended, restated, supplemented or modified from time to time (the “Collateral  Assignment”), and (vi) the other Loan Documents referred to in the  Credit Agreement, as the  same may be amended, restated, supplemented or modified from time to time.                                     Agreement         Capitalized terms defined in the Credit Agreement are used herein as defined therein.          New Guarantor hereby becomes a Guarantor under the terms of the Credit Agreement  and in consideration of the value of the synergistic and other benefits received by New Guarantor  as a result of being or becoming affiliated with the Borrowers and the Guarantors, New  Guarantor hereby agrees that effective as of the date hereof it hereby is, and shall be deemed to  be, and assumes the obligations of, a "Loan Party" and a "Guarantor", jointly and severally under  the Credit Agreement, a "Guarantor," jointly and severally with the existing Guarantors under the  Amended and Restated Continuing Agreement of Guaranty dated as of ____________ __, 20__,  as the same may be amended, restated, supplemented or modified from time to time (the    {N0289348 2 }                       

 

   "Guaranty") of Guarantors given to the Lenders and the Administrative Agent, a "Debtor" jointly  and severally under the Security Agreement, a "Pledgor" jointly and severally under the Pledge  Agreement and the Patent, Trademark and Copyright Security Agreement and a Loan Party or  Guarantor, as the case may be, under each of the other Loan Documents to which the Loan  Parties or Guarantors are a party; and, New Guarantor hereby agrees that it shall perform,  comply with, and be subject to and bound by each of the terms and provisions of the Credit  Agreement, Guaranty, Security Agreement, Pledge Agreement, Patent, Trademark and Copyright  Security Agreement, Collateral Assignment and each of the other Loan Documents jointly and  severally with the existing parties thereto.  Without limiting the generality of the foregoing, New  Guarantor hereby represents and warrants that (i) each of the representations and warranties set  forth in Section 6 of the Credit Agreement applicable to a Loan Party is true and correct in all  material respects as to New Guarantor on and as of the date hereof (except (i) to the extent that  such representations and warranties specifically refer to an earlier date, in which case they shall  be true and correct in all material aspects as of such earlier date and (ii) to the extent that such  representations and warranties are qualified as to materiality, in which case they shall be true and  correct in all respects) and (ii) New Guarantor has heretofore received a true and correct copy of  the Credit Agreement, Guaranty, Security Agreement, Pledge Agreement, Patent, Trademark and  Copyright Security Agreement, Collateral Assignment and each of the other Loan Documents  (including any modifications thereof or supplements or waivers thereto) in effect on the date  hereof.         New Guarantor hereby makes, affirms, and ratifies in favor of the Lenders and the  Administrative Agent the Credit Agreement, Guaranty, Security Agreement, Pledge Agreement,  Patent, Trademark and Copyright Security Agreement, Collateral Assignment and each of the  other Loan Documents given by the Guarantors to the Administrative Agent and any of the  Lenders.         New Guarantor is simultaneously delivering to the Administrative Agent the documents,  together with this Guarantor Joinder and Assumption Agreement, required under Section 8.1.14  [Additional Collateral].         New Guarantor acknowledges and agrees that delivery on an executed counterpart of a  signature page hereof by telecopy or e-mail shall be effective as delivery of a manually executed  counterpart hereof:    {N0289348 2 }                        

 

         IN WITNESS WHEREOF, and intending to be legally bound hereby, the New Guarantor  has duly executed this Guarantor Joinder and Assumption Agreement and delivered the same to  the Administrative Agent for the benefit of the Lenders, as of the date and year first above  written.                                             [                                  ]                                                                                                                                    By                           (SEAL)                                            Name:                                                                           Title:                                       Acknowledged and accepted:    First National Bank of Pennsylvania, as  Administrative Agent      By:                                         Name:                                       Title:                                           {N0289348 2 }                       

 

                                   EXHIBIT 1.1 (G)(2)                                                                               FORM OF                            AMENDED AND RESTATED           CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP            This Amended and Restated Continuing Agreement of Guaranty and Suretyship (this   “Guaranty”), dated as of __________ __, 2020, is jointly and severally given by each of the   undersigned and each of the other Persons which become Guarantors hereunder from time to   time (each a “Guarantor” and collectively the “Guarantors”) in favor of FIRST NATIONAL   BANK OF PENNSYLVANIA, as administrative agent for the Lenders (the “Agent”) in   connection with that Amended and Restated Credit Agreement, dated as of the date hereof, by   and among DLH Holdings Corp., a New Jersey corporation (“Holdings”), DLH Solutions, Inc., a   Georgia corporation (“Solutions”), Danya International, LLC, a Maryland limited liability   company (“Danya”), Social & Scientific Systems, Inc., a Delaware corporation (“Systems”) and   Irving Burton Associates, LLC, a Virginia limited liability company (“IBA” and collectively   with Holdings, Solutions, Danya and Systems, the “Borrowers”), the Guarantors now or   hereafter party thereto, the Agent, and the Lenders now or hereafter party thereto (as amended,   restated, modified, or supplemented from time to time hereafter, the “Credit Agreement”).    Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to   them by the Credit Agreement, and the rules of construction set forth in Section 1.2   [Construction] of the Credit Agreement shall apply to this Guaranty.          WHEREAS, reference is made to that certain Credit Agreement, dated June 7, 2019, by   and among certain of the Debtors, as borrowers, and the other guarantors party thereto, the   lenders party thereto and the Administrative Agent (the “Existing Credit Agreement”);          WHEREAS, following the execution and delivery of the Existing Credit Agreement,   Teamstaff Solutions, Inc., a New York corporation and Teamstaff Rx, Inc., a Texas corporation,   entered into that certain Continuing Agreement of Guaranty and Suretyship, dated as of August   28, 2019 (the “Existing Guaranty Agreement”) whereby the companies guaranteed the   obligations of the Loan Parties to the Administrative Agent and the Lenders under the Existing   Credit Agreement as otherwise as more fully described therein in the manner set forth therein;          WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the   Lenders have agreed to amend and restate the Existing Credit Agreement to provide certain loans   and to make certain other financial accommodations to the Loan Parties; and         WHEREAS, pursuant to and in consideration of the Credit Agreement, the Guarantors  have agreed, among other things, to amend and restate the Existing Guaranty Agreement and  reconfirm their guaranty of the obligations of the Loan Parties to the Administrative Agent and  the Lenders under the Credit Agreement, the other Loan Documents and otherwise as more fully  described herein in the manner set forth herein.         NOW, THEREFORE, intending to be legally bound hereby, the parties hereto covenant  and agree as follows:     {N0289348 2 }                        

 

                  1.    Guarantied Obligations.  To induce the Agent, the Lenders and any Affiliate of  any of the foregoing that provides any Lender Provided Interest Rate Hedge or any Other  Lender Provided Financial Services Product (collectively, together with any provider of any  Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Services Product,  the “Secured Parties” and each a “Secured Party”) to make loans and grant other financial  accommodations to the Borrowers under the Credit Agreement, the other Loan Documents, any  Lender Provided Interest Rate Hedge and any Other Lender Provided Financial Service  Products (collectively, the “Secured Loan Documents” and each a “Secured Loan Document”),  each Guarantor hereby jointly and severally, unconditionally, and irrevocably reconfirms its  guaranty under the Existing Guaranty Agreement, if any, and guaranties anew to the Secured  Parties, and confirms its status as surety or becomes surety, as applicable, as though it was a  primary obligor for, the full and punctual payment and performance when due (whether on  demand, at stated maturity, by acceleration, or otherwise and including any amounts which  would become due but for the operation of an automatic stay under the federal bankruptcy code  of the United States or any similar Laws of any country or jurisdiction) of all Obligations, now  existing or hereafter arising (and including obligations, liabilities, and indebtedness arising or  accruing after the commencement of any bankruptcy, insolvency, reorganization, or similar  proceeding with respect to any Borrower or any Guarantor or which would have arisen or  accrued but for the commencement of such proceeding, even if the claim for such obligation,  liability, or indebtedness is not enforceable or allowable in such proceeding, and including all  Obligations, liabilities, and indebtedness arising from any extensions of credit under or in  connection with the Secured Loan Documents from time to time, regardless whether any such  extensions of credit are in excess of the amount committed under or contemplated by the  Secured Loan Documents or are made in circumstances in which any condition to extension of  credit is not satisfied) (herein collectively as the “Guarantied Obligations” and each as a  “Guarantied Obligation”).  Without limitation of the foregoing, any of the Guarantied  Obligations shall be and remain Guarantied Obligations entitled to the benefit of this Guaranty  if the Agent or any of the Lenders (or any one or more assignees or transferees thereof) from  time to time assign or otherwise transfer all or any portion of their respective rights and  obligations under the Secured Loan Documents, or any other Guaranteed Obligations, in each  case, to the extent permitted by the applicable Secured Loan Documents.  In furtherance of the  foregoing, each Guarantor jointly and severally agrees as follows:         2.    Guaranty. Each Guarantor hereby promises to pay and perform all such  Guarantied Obligations promptly upon demand of the Agent and the Secured Parties or any one  or more of them.  All payments made hereunder shall be made by each Guarantor in  immediately available funds in U.S. Dollars and shall be made without setoff, counterclaim,  withholding, or other deduction of any nature (except as expressly permitted by Section 5.9  [Taxes] of the Credit Agreement).         3.    Obligations Absolute.  To the fullest extent permitted by law and except for  termination or release of a Guarantor’s obligations hereunder in accordance with the terms of  Section 19, the obligations of the Guarantors hereunder shall not be discharged or impaired or  otherwise diminished by the failure, default, omission, or delay, willful or otherwise, by any  Lender, the Agent, or any Borrower or any other obligor on any of the Guarantied Obligations,   {N0289348 2 } - 3 -  49920573 

 

   or by any other act or thing or omission or delay to do any other act or thing which may or  might in any manner or to any extent vary the risk of any Guarantor or would otherwise operate  as a discharge of any Guarantor as a matter of law or equity.  To the fullest extent permitted by  law and except for termination or release of a Guarantor’s obligations hereunder in accordance  with the terms of Section 19, without limiting the generality of the foregoing, each Guarantor  hereby waives any defense based on or arising out of, and agrees that the joint and several  obligations of each Guarantor hereunder shall not be diminished, terminated, or otherwise  similarly affected by, any of the following or any failure of any Guarantor to consent thereto:         (a)   Any lack of genuineness, legality, validity, enforceability or allowability (in a  bankruptcy, insolvency, reorganization or similar proceeding, or otherwise), or any avoidance  or subordination, in whole or in part, of any Secured Loan Document or any of the Guarantied  Obligations and regardless of any Law, regulation or order now or hereafter in effect in any  jurisdiction affecting any of the Guarantied Obligations, any of the terms of the Secured Loan  Documents, or any rights of the Agent or the Secured Parties or any other Person with respect  thereto;         (b)   Any increase, decrease, or change in the amount, nature, type or purpose of any  of, or any release, surrender, exchange, compromise or settlement of any of the Guarantied  Obligations (whether or not contemplated by the Secured Loan Documents as presently  constituted); any change in the time, manner, method, or place of payment or performance of, or  in any other term of, any of the Guarantied Obligations; any execution or delivery of any  additional Secured Loan Documents; or any amendment, modification or supplement to, or  refinancing or refunding of, any Secured Loan Document or any of the Guarantied Obligations;         (c)   Any failure to assert any breach of or default under any Secured Loan Document  or any of the Guarantied Obligations; any extensions of credit in excess of the amount  committed under or contemplated by the Secured Loan Documents, or in circumstances in  which any condition to such extensions of credit has not been satisfied; any other exercise or  non-exercise, or any other failure, omission, breach, default, delay, or wrongful action in  connection with any exercise or non-exercise, of any right or remedy against any Borrower or  any other Person under or in connection with any Secured Loan Document or any of the  Guarantied Obligations; any refusal of payment or performance of any of the Guarantied  Obligations, whether or not with any reservation of rights against any Guarantor; or any  application of collections (including but not limited to collections resulting from realization  upon any direct or indirect security for the Guarantied Obligations) to other obligations, if any,  not entitled to the benefits of this Guaranty, in preference to Guarantied Obligations entitled to  the benefits of this Guaranty, or if any collections are applied to Guarantied Obligations, any  application to particular Guarantied Obligations;         (d)   Any taking, exchange, amendment, modification, waiver, supplement,  termination, subordination, compromise, release, surrender, loss, or impairment of, or any  failure to protect, perfect, or preserve the value of, or any enforcement of, realization upon, or  exercise of rights, or remedies under or in connection with, or any failure, omission, breach,  default, delay, or wrongful action by the Agent or the Secured Parties, or any of them, or any  other Person in connection with the enforcement of, realization upon, or exercise of rights or  remedies under or in connection with, or, any other action or inaction by any of the Agent or the   {N0289348 2 } - 4 -  49920573 

 

   Secured Parties, or any of them, or any other Person in respect of, any direct or indirect security  for any of the Guarantied Obligations.  As used in this Guaranty, “direct or indirect security” for  the Guarantied Obligations, and similar phrases, includes any collateral security, guaranty,  suretyship, letter of credit, capital maintenance agreement, put option, subordination agreement,  or other right or arrangement of any nature providing direct or indirect assurance of payment or  performance of any of the Guarantied Obligations, made by or on behalf of any Person;         (e)   Except as expressly permitted in the Credit Agreement, any merger,  consolidation, liquidation, dissolution, winding-up, charter revocation, or forfeiture, or other  change in, restructuring or termination of the corporate structure or existence of, any Borrower  or any other Person; any bankruptcy, insolvency, reorganization or similar proceeding with  respect to any Borrower or any other Person; or any action taken or election made by the Agent  or the Secured Parties, or any of them (including but not limited to any election under Section  1111(b)(2) of the United States Bankruptcy Code), any Borrower, or any other Person in  connection with any such proceeding;         (f)   Any defense, setoff, or counterclaim which may at any time be available to or be  asserted by any Borrower or any other Person with respect to any Secured Loan Document or  any of the Guarantied Obligations; or any discharge by operation of Law or release of any  Borrower or any other Person from the performance or observance of any Secured Loan  Document or any of the Guarantied Obligations, except in each case Payment in Full of the  Guaranteed Obligations; and         (g)   Any other event or circumstance, whether similar or dissimilar to the foregoing,  and whether known or unknown, which might otherwise constitute a defense available to, or  limit the liability of, any Guarantor, a guarantor or a surety, excepting Payment in Full of the  Guarantied Obligations.         Each Guarantor acknowledges, consents, and agrees that new Guarantors may join in this  Guaranty pursuant to Section 8.1.14 [Additional Collateral] of the Credit Agreement and each  Guarantor affirms that its obligations shall continue hereunder undiminished.         4.    Waivers, etc.  Without limitation and to the fullest extent permitted by applicable  Law and except for termination or release of a Guarantor’s obligations hereunder in accordance  with the terms of Section 19, each Guarantor waives each of the following:         (a)   All notices, disclosures and demands of any nature which otherwise might be  required from time to time to preserve intact any rights against any Guarantor, including the  following: any notice of any event or circumstance described in Section 3 hereof; any notice  required by any Law, regulation or order now or hereafter in effect in any jurisdiction; any  notice of nonpayment, nonperformance, dishonor, or protest under any Secured Loan Document  or any of the Guarantied Obligations; any notice of the incurrence of any Guarantied  Obligation; any notice of any default or any failure on the part of any Borrower or any other  Person to comply with any Secured Loan Document or any of the Guarantied Obligations or  any direct or indirect security for any of the Guarantied Obligations; and any notice of any  information pertaining to the business, operations, condition (financial or otherwise) or  prospects of any Borrower or any other Person;   {N0289348 2 } - 5 -  49920573 

 

         (b)   Any right to any marshalling of assets, to the filing of any claim against any  Borrower or any other Person in the event of any bankruptcy, insolvency, reorganization or  similar proceeding, or to the exercise against any Borrower or any other Person of any other  right or remedy under or in connection with any Secured Loan Document or any of the  Guarantied Obligations or any direct or indirect security for any of the Guarantied Obligations;  any requirement of promptness or diligence on the part of the Agent or the Secured Parties, or  any of them, or any other Person; any requirement to exhaust any remedies under or in  connection with, or to mitigate the damages resulting from default under, any Secured Loan  Document or any of the Guarantied Obligations or any direct or indirect security for any of the  Guarantied Obligations; any benefit of any statute of limitations; and any requirement of  acceptance of this Guaranty or any other Secured Loan Document, and any requirement that any  Guarantor receive notice of any such acceptance;         (c)   Any defense or other right arising by reason of any Law now or hereafter in  effect in any jurisdiction pertaining to election of remedies (including anti-deficiency Laws,  “one action” Laws or the like), or by reason of any election of remedies or other action or  inaction by the Agent or the Secured Parties, or any of them (including but not limited to  commencement or completion of any judicial proceeding or nonjudicial sale or other action in  respect of collateral security for any of the Guarantied Obligations), which results in denial or  impairment of the right of the Agent or the Secured Parties, or any of them, to seek a deficiency  against any Borrower or any other Person or which otherwise discharges or impairs any of the  Guarantied Obligations; and         (d)   Any and all defenses it may now or hereafter have based on principles of  suretyship, impairment of collateral, or the like.         5.    Reinstatement.  Notwithstanding anything to the contrary contained in this  Guaranty, this Guaranty shall continue to be effective or be reinstated, as the case may be, any  time any payment of any of the Guarantied Obligations is rescinded, recouped, avoided, or must  otherwise be returned or released by any Secured Party or Agent upon or during the insolvency,  bankruptcy, or reorganization of, or any similar proceeding affecting, any Borrower or for any  other reason whatsoever, all as though such payment had not been made and was due and  owing.         6.    Subrogation.  Each Guarantor agrees it will not exercise any rights against any  Borrower or any other Guarantor arising in connection with, or any Collateral securing, the  Guarantied Obligations (including rights of subrogation, contribution, and the like) until the  Guarantied Obligations have been Paid in Full.  If any amount shall be paid to any Guarantor by  or on behalf of any Borrower or any other Guarantor by virtue of any right of subrogation,  contribution, or the like, such amount shall be deemed to have been paid to such Guarantor for  the benefit of, and shall be held in trust for the benefit of, the Agent and the Secured Parties and  shall forthwith be paid to the Agent to be credited and applied upon the Guarantied Obligations,  whether matured or unmatured, in accordance with the terms of the applicable Secured Loan  Documents.         7.    No Stay.  Without limitation of any other provision of this Guaranty, if any  declaration of default or acceleration or other exercise or condition to exercise of rights or   {N0289348 2 } - 6 -  49920573 

 

   remedies under or with respect to any Guarantied Obligation shall at any time be stayed,  enjoined, or prevented for any reason (including any stay or injunction resulting from the  pendency against any Borrower or any other Person of a bankruptcy, insolvency, reorganization  or similar proceeding), the Guarantors agree that, for the purposes of this Guaranty and their  obligations hereunder, the Guarantied Obligations shall be deemed to have been declared in  default or accelerated, and such other exercise or conditions to exercise shall be deemed to have  been taken or met.         8.    Taxes.  The terms of Section 5.9 of the Credit Agreement are incorporated herein  by reference, mutatis mutandis, and the parties hereto agree to such terms.         9.    Notices.  Each Guarantor agrees that all notices, statements, requests, demands  and other communications under this Guaranty shall be given to such Guarantor at the address  set forth on a Schedule to, or in a Guarantor Joinder given under, the Credit Agreement and in  the manner provided in Section 12.5 [Notices; Effectiveness; Electronic Communication] of the  Credit Agreement.  The Agent and the Lenders may rely on any notice (whether or not made in  a manner contemplated by this Guaranty) purportedly made by or on behalf of a Guarantor, and  the Agent and the Lenders shall have no duty to verify the identity or authority of the Person  giving such notice.         10.   Counterparts; Telecopy Signatures.  This Guaranty may be executed in any  number of counterparts, each of which, when so executed, shall be deemed an original, but all  such counterparts shall constitute but one and the same instrument.  Each Guarantor  acknowledges and agrees that a telecopy transmission to Agent or any Lender of, or the e-mail  delivery of a portable document format (PDF) file to the Agent or any Lender containing, the  signature pages hereof purporting to be signed on behalf of any Guarantor shall constitute  effective and binding execution and delivery hereof by such Guarantor.         11.   Default Payments by Borrowers.         (a)   In the event that at any time any Guaranteed Obligation now or hereafter existing  under this Guaranty shall have become due and payable, the Agent and the Lenders, or any of  them shall have all rights and remedies available pursuant to the Credit Agreement.         (b)   Upon the occurrence and during the continuation of any default under any  Guarantied Obligation, if any amount shall be paid to any Guarantor by or for the account of  any Borrower, such amount shall be held in trust for the benefit of each Lender and Agent and  shall forthwith be paid to the Agent to be credited and applied to the Guarantied Obligations  when due and payable.         12.   Construction.  This Guaranty has been fully negotiated between the applicable  parties, each party having the benefit of legal counsel, and accordingly neither any doctrine of  construction of guaranties or suretyships in favor of the guarantor or surety, nor any doctrine of  construction of ambiguities in agreement or instruments against the party controlling the  drafting thereof, shall apply to this Guaranty.         13.   Successors and Assigns.  This Guaranty shall be binding upon each Guarantor, its  successors and assigns, and shall inure to the benefit of and be enforceable by the Agent and the   {N0289348 2 } - 7 -  49920573 

 

   Secured Parties, or any of them, and their successors and assigns as permitted under the Credit  Agreement provided, however, that, without the consent of the Agent, no Guarantor may assign  or transfer any of its rights or obligations hereunder or any interest herein and any such  purported assignment or transfer shall be null and void.  Without limitation of the foregoing, the  Agent and the Secured Parties, or any of them (and any successive assignee or transferee), from  time to time may assign or otherwise transfer all or any portion of its rights or obligations under  and in accordance with the Secured Loan Documents (including all or any portion of any  commitment to extend credit), or any other Guarantied Obligations, to any other person and  such Guarantied Obligations (including any Guarantied Obligations resulting from extension of  credit by such other Person under or in connection with the Secured Loan Documents) shall be  and remain Guarantied Obligations entitled to the benefit of this Guaranty, and to the extent of  its interest in such Guarantied Obligations such other Person shall be vested with all the benefits  in respect thereof granted to the Agent and the Secured Parties in this Guaranty or otherwise.         14.   Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.  The terms of  Sections 12.11.1, 12.11.2, 12.11.3, 12.11.4 and 12.11.5 of the Credit Agreement with respect to  governing law, submission to jurisdiction, venue, consent to service of process and waiver of  jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to  such terms.         15.   Severability; Modification to Conform to Law.         (a)   It is the intention of the parties that this Guaranty be enforceable to the fullest  extent permissible under applicable Law, but that the unenforceability (or modification to  conform to such Law) of any provision or provisions hereof shall not render unenforceable, or  impair, the remainder hereof.  If any provision in this Guaranty shall be held invalid or  unenforceable in whole or in part in any jurisdiction, this Guaranty shall, as to such jurisdiction,  be deemed amended to modify or delete, as necessary, the offending provision or provisions and  to alter the bounds thereof in order to render it or them valid and enforceable to the maximum  extent permitted by applicable Law, without in any manner affecting the validity or  enforceability of such provision or provisions in any other jurisdiction or the remaining  provisions hereof in any jurisdiction.         (b)   Without limitation of the preceding subsection (a), to the extent that applicable  Law (including applicable Laws pertaining to fraudulent conveyance or fraudulent or  preferential transfer) otherwise would render the full amount of the Guarantor’s obligations  hereunder invalid, voidable, or unenforceable on account of the amount of a Guarantor’s  aggregate liability under this Guaranty, then, notwithstanding any other provision of this  Guaranty to the contrary, the aggregate amount of such liability shall, without any further action  by the Agent or any of the Secured Parties or such Guarantor or any other Person, be  automatically limited and reduced to the highest amount which is valid and enforceable as  determined in such action or proceeding, which (without limiting the generality of the  foregoing) may be an amount which is equal to the greater of:               (i)   the fair consideration actually received by such Guarantor under the terms  and as a result of the Secured Loan Documents and the value of the benefits described in  Section 18(b) hereof, including (and to the extent not inconsistent with applicable federal and   {N0289348 2 } - 8 -  49920573 

 

   state Laws affecting the enforceability of guaranties) distributions, commitments, and advances  made to or for the benefit of such Guarantor with the proceeds of any credit extended under the  Secured Loan Documents, or               (ii)  the excess of (1) the amount of the fair value of the assets of such  Guarantor as of the date of this Guaranty as determined in accordance with applicable federal  and state Laws governing determinations of the insolvency of debtors as in effect on the date  hereof, over (2) the amount of all liabilities of such Guarantor as of the date of this Guaranty,  also as determined on the basis of applicable federal and state Laws governing the insolvency of  debtors as in effect on the date hereof.         (c)   Notwithstanding anything to the contrary in this Section or elsewhere in this  Guaranty, this Guaranty shall be presumptively valid and enforceable to its full extent in  accordance with its terms, as if this Section (and references elsewhere in this Guaranty to  enforceability to the fullest extent permitted by Law) were not a part of this Guaranty, and in  any related litigation the burden of proof shall be on the party asserting the invalidity or  unenforceability of any provision hereof or asserting any limitation on any Guarantor’s  obligations hereunder as to each element of such assertion.         16.   Additional Guarantors.  At any time after the initial execution and delivery of this  Guaranty to the Agent, additional Persons may become parties to this Guaranty and thereby  acquire the duties and rights of being Guarantors hereunder by executing and delivering to the  Agent a Guarantor Joinder pursuant to the Credit Agreement.  No notice of the addition of any  Guarantor shall be required to be given to any pre-existing Guarantor and each Guarantor  hereby consents thereto.         17.   Joint and Several Obligations.  The obligations and additional liabilities of the  Guarantors under this Agreement are joint and several obligations of the Guarantors, and each  Guarantor hereby waives to the full extent permitted by Law any defense it may otherwise have  to the payment and performance of the Obligations that its liability hereunder is limited and not  joint and several.  Each Guarantor acknowledges and agrees that the foregoing waivers and  those set forth below serve as a material inducement to the agreement of the Agent and the  Secured Parties to make the Loans, and that the Agent and the Secured Parties are relying on  each specific waiver and all such waivers in entering into this Guaranty.  The undertakings of  each Guarantor hereunder secure the obligations of itself and the other Guarantors.  The Agent  and the Secured Parties, or any of them, may, in their sole discretion, elect to enforce this  Guaranty against any Guarantor without any duty or responsibility to pursue any other  Guarantor and such an election by the Agent and the Secured Parties, or any of them, shall not  be a defense to any action the Agent and the Secured Parties, or any of them, may elect to take  against any Guarantor.  Each of the Secured Parties and Agent hereby reserve all rights against  each Guarantor.         18.   Miscellaneous.         (a)   Amendments, Waivers.  No amendment to or waiver of any provision of this  Guaranty, and no consent to any departure by any Guarantor herefrom, shall in any event be  effective unless in a writing signed by the Agent, on behalf of the Lenders, and (i) for any such   {N0289348 2 } - 9 -  49920573 

 

   amendment, the Borrowers and the Guarantors, and (ii) for any such waiver, the Borrowers on  behalf of the Guarantors.  Any such waiver or consent shall be effective only in the specific  instance and for the specific purpose for which given.  No delay or failure of the Agent or the  Lenders, or any of them, in exercising any right or remedy under this Guaranty shall operate as  a waiver thereof; nor shall any single or partial exercise of any such right or remedy preclude  any other or further exercise thereof or the exercise of any other right or remedy.  The rights and  remedies of the Agent and the Secured Parties under this Guaranty are cumulative and not  exclusive of any other rights or remedies available hereunder, under any other agreement or  instrument, by Law, or otherwise.         (b)   Telecommunications. Each Lender and Agent shall be entitled to rely on the  authority of any individual making any telecopy or telephonic notice, request, or signature  without the necessity of receipt of any verification thereof.         (c)   Expenses.  Each Guarantor unconditionally agrees that the Agent and the  Lenders shall be entitled to reimbursement of their expenses incurred hereunder as provided in  Section 12.3.1 [Costs and Expenses] of the Credit Agreement.         (d)   Prior Understandings.  This Guaranty and the other Secured Loan Documents  constitute the entire agreement of the parties hereto with respect to the subject matter hereof and  supersede any and all other prior and contemporaneous understandings and agreements.         (e)   Survival.  All representations and warranties of the Guarantors made in  connection with this Guaranty shall survive, and shall not be waived by, the execution and  delivery of this Guaranty, any investigation by or knowledge of the Agent and the Secured  Parties, or any of them, any extension of credit, or any other event or circumstance whatsoever.         (f)   No Novation.    The provisions of Section 12.13(a) of the Credit Agreement  regarding novation are hereby incorporated herein by reference and shall apply mutatis  mutandis with respect to the other provisions of this Guaranty.          19.   Termination         (a)   This Guaranty is a continuing obligation of the Guarantors and shall remain in  full force and effect notwithstanding that no Guarantied Obligations may be outstanding from  time to time and notwithstanding any other event or circumstance.  Upon Payment in Full of all  Guarantied Obligations, this Guaranty shall terminate, subject to Section 5 hereof.         (b)   In connection with any termination or release pursuant to paragraph (a) above,  the Agent shall promptly execute and deliver to any Guarantor, upon such Guarantor’s  reasonable request and at such Guarantor’s expense, evidence of such termination.  Any  execution and delivery of such evidence pursuant to this Section 19 shall be without recourse to  or warranty by the Agent.         (c)   At any time that the Borrowers desire that the Agent take any of the actions  described in the immediately preceding clause (b), they shall, upon request of the Agent, deliver  to the Agent an officer’s certificate certifying that the release of the respective Guarantor is  permitted pursuant to paragraph (a) above.  The Agent shall have no liability whatsoever to any   {N0289348 2 } - 10 -  49920573 

 

   Secured Party as a result of any release of any Guarantor by it as permitted (or which the Agent  in good faith believes to be permitted) by this Section 19.                             [SIGNATURE PAGES FOLLOW]   {N0289348 2 } - 11 -  49920573 

 

      IN WITNESS WHEREOF, each Guarantor intending to be legally bound, has executed  this Guaranty as of the date first above written.                                             [_________________]                                             By:                                            Name:                                            Title:    {N0289348 2 }

 

                                                                     EXHIBIT 1.1(N)(1)                                     FORM OF              AMENDED AND RESTATED REVOLVING CREDIT NOTE   $______________                                        ______________ __, 20__                                                                                       FOR VALUE RECEIVED, the undersigned, DLH HOLDINGS CORP., a New Jersey  corporation ("Holdings"), DLH SOLUTIONS, INC., a Georgia corporation ("Solutions"),  DANYA INTERNATIONAL, LLC, a Maryland limited liability company ("Danya"), SOCIAL  & SCIENTIFIC SYSTEMS, INC., a Delaware corporation ("Systems") and IRVING BURTON  ASSOCIATES, LLC, a Virginia limited liability company (“IBA” and collectively with  Holdings, Solutions, Danya and Systems, the "Borrowers"), hereby promise to pay  _________________________________ (the “Lender”) or its registered assigns, the lesser of  (i) the principal sum of _____________________________________________________ US  Dollars (US$____________), or (ii) the aggregate unpaid principal balance of all Revolving  Credit Loans made by the Lender to the Borrowers pursuant to the Credit Agreement, dated as of  _______________ ___, 2020, by and among the Borrowers, the Guarantors now or hereafter  party thereto, the Lenders now or hereafter party thereto, and FIRST NATIONAL BANK OF  PENNSYLVANIA, as administrative agent (hereinafter referred to in such capacity as the  “Agent”) (as amended, restated, modified, or supplemented from time to time, the “Credit  Agreement”), payable by 11:00 a.m. Eastern time on the Expiration Date, together with interest  on the unpaid principal balance hereof from time to time outstanding from the date hereof at the  rate or rates per annum specified by the Borrowers pursuant to, or as otherwise provided in, the  Credit Agreement.         Interest on the unpaid principal balance hereof from time to time outstanding from the  date hereof will be payable at the times provided for in the Credit Agreement.  To the extent  provided in the Credit Agreement, upon the occurrence of an Event of Default, and until such  time such Event of Default shall have been cured or waived, the Borrowers shall pay interest on  the entire principal amount of the then outstanding Revolving Credit Loans evidenced by this  Amended and Restated Revolving Credit Note (this “Note”) and all other obligations due and  payable to the Lender pursuant to the Credit Agreement and the other Loan Documents at a rate  per annum as set forth in Section 4.3 of the Credit Agreement.  Such interest rate will accrue  before and after any judgment has been entered.         Subject to the provisions of the Credit Agreement, payments of both principal and  interest shall be made without setoff, counterclaim, or other deduction of any nature at the office  of the Agent located at 7475 Wisconsin Avenue, Suite 700, Bethesda, Maryland 20814, unless  otherwise directed in writing by the holder hereof, in lawful money of the United States of  America in immediately available funds.         This Note is one of the Revolving Credit Notes referred to in, and is entitled to the  benefits of, the Credit Agreement and other Loan Documents, including the representations,  warranties, covenants, conditions, security interests, and Liens contained or granted therein.  The   {N0289348 2 }                         

 

   Credit Agreement among other things contains provisions for acceleration of the maturity hereof  upon the happening of certain stated events and also for prepayment, in certain circumstances, on  account of principal hereof prior to maturity upon the terms and conditions therein specified.   Except as otherwise provided in the Credit Agreement, the Borrowers waive presentment,  demand, notice, protest and all other demands and notices in connection with the delivery,  acceptance, performance, default or enforcement of this Note and the Credit Agreement.             TO THE EXTENT PERMITTED BY THE LAWS OF THE STATE OF  MARYLAND, EACH BORROWER HEREBY AUTHORIZES AND EMPOWERS ANY  ATTORNEY OR ATTORNEYS OR CLERK OF ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF MARYLAND, UPON THE OCCURRENCE OF AN  EVENT OF DEFAULT, TO APPEAR FOR SUCH BORROWER IN ANY SUCH COURT,  WITH OR WITHOUT DECLARATION FILED, TO WAIVE THE ISSUING AND  SERVICE OF PROCESS AND TO CONFESS OR ENTER JUDGMENT AGAINST  SUCH BORROWER IN FAVOR OF LENDER FOR ALL SUMS THEN DUE BY SUCH  BORROWER TO LENDER UNDER THIS NOTE, WITH COSTS OF SUIT AND  RELEASE OF PROCEDURAL ERRORS AND WITH REASONABLE ATTORNEYS’  FEES OF TEN PERCENT (10%) OF THE AMOUNT THEN DUE (PROVIDED THAT  SUCH AMOUNT SHALL BE REDUCED TO ACTUAL, REASONABLE AND  DOCUMENTED FEES INCURRED); AND FOR DOING SO THIS NOTE OR A COPY  VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. SUCH  AUTHORITY AND POWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE  THEREOF, AND JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME  TO TIME AS OFTEN AS THERE IS OCCASION THEREFOR.            EACH BORROWER  ACKNOWLEDGES AND AGREES THAT THE LENDER'S RIGHT TO COLLECT  THE REASONABLE, ACTUAL AND DOCUMENTED ATTORNEYS' FEES IT  ACTUALLY INCURS, AFTER THE DATE OF ANY JUDGMENT ON ANY SUIT  HEREUNDER, IN ENFORCING ANY OF ITS RIGHTS OR REMEDIES HEREUNDER  OR IN PROTECTING LENDER'S COLLATERAL OR ANY INTERESTS OF SUCH  BORROWER THEREIN, SHALL NOT BE DEEMED TO MERGE INTO ANY  JUDGMENT AWARDED BY THE COURT, AND SHALL SURVIVE ANY SUCH  JUDGMENT; IT BEING THE INTENTION OF EACH BORROWER THAT LENDER  SHALL HAVE THE RIGHT TO BRING AND MAINTAIN ONE OR MORE POST- JUDGMENT ACTIONS FOR REIMBURSEMENT OF ALL REASONABLE  ATTORNEYS' FEES ACTUALLY INCURRED BY LENDER IN OBTAINING FULL  AND FINAL REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND  OBLIGATIONS EVIDENCED OR SECURED BY THIS NOTE.  THIS NOTE AND THE  INDEBTEDNESS, LIABILITIES AND OBLIGATIONS OF EACH BORROWER  HEREUNDER SHALL BE DEEMED TO SURVIVE UNTIL THE FULL AND FINAL  REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND OBLIGATIONS  EVIDENCED OR SECURED BY THIS NOTE.           This Note shall bind the Borrowers and their respective successors and assigns, and the  benefits hereof shall inure to the benefit of the Lender and its successors and permitted assigns.   All references herein to the “Borrowers” and the “Lender” shall be deemed to apply to the  Borrowers and the Lender, respectively, and their respective successors and assigns as permitted  under the Credit Agreement.    {N0289348 2 }                        

 

         This Note and any other documents delivered in connection herewith and the rights and  obligations of the parties hereto and thereto shall for all purposes be governed by and construed  and enforced in accordance with the internal laws of the State of Maryland without regard to its  conflict of laws principles.          All capitalized terms used herein shall, unless otherwise defined herein, have the same  meanings given to such terms in the Credit Agreement.         This Note amends and restates, and is given in replacement for, and not in payment of, that  certain Revolving Note dated as of June 7, 2019 (the “Original Note”), given by the Borrowers  party thereto in favor of the Lender and is in no way intended, and shall not be deemed or  construed, to constitute a novation of the Original Note. This Note supersedes the Original Note in  all respects and, upon the execution and delivery by the Borrowers of this Note, the Original Note  shall have no further force and effect.         The Borrowers acknowledge and agree that delivery of an executed counterpart of a  signature page of this Note by telecopy or e-mail shall be effective as delivery of a manually  executed counterpart of this Note.                        [remainder of page intentionally left blank]    {N0289348 2 }                        

 

                                             IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned  have executed this Note by their duly authorized officers with the intention that it constitute a  sealed instrument.                                                DLH HOLDINGS CORP.                                        By:                                (SEAL)                                      Name:                                      Title:                                         DLH SOLUTIONS, INC.                                                              By:                                (SEAL)                                      Name:                                      Title:                                                                              DANYA INTERNATIONAL, LLC                                       By:                                (SEAL)                                      Name:                                      Title:                                          SOCIAL & SCIENTIFIC SYSTEMS, INC.                                       By:                                (SEAL)                                      Name:                                      Title:                                                                                                                  IRVING BURTON ASSOCIATES, LLC                                        By:                                (SEAL)                                      Name:                                      Title:    {N0289348 2 }                         

 

                                                                                                                 EXHIBIT 1.1(N)(2)                                      FORM OF                  AMENDED AND RESTATED SWING LOAN NOTE                                               US $5,000,000                                             ___________ ___, 20__                     FOR VALUE RECEIVED, the undersigned, DLH HOLDINGS CORP.,    a New Jersey   corporation ("Holdings"), DLH SOLUTIONS, INC., a Georgia corporation ("Solutions"),   DANYA INTERNATIONAL, LLC, a Maryland limited liability company ("Danya"), SOCIAL   & SCIENTIFIC SYSTEMS, INC., a Delaware corporation ("Systems") and IRVING BURTON   ASSOCIATES, LLC, a Virginia limited liability company (“IBA” and collectively with   Holdings, Solutions, Danya and Systems, the "Borrowers"), hereby unconditionally promise to   pay FIRST NATIONAL BANK OF PENNSYLVANIA (the “Lender”) or its registered assigns,   the lesser of (i) the principal sum of Five Million Dollars (US $5,000,000), or (ii) the aggregate   unpaid principal balance of all Swing Loans made by the Lender to the Borrowers pursuant to   the Amended and Restated Credit Agreement, dated as of __________ ___, 2020, among the   Borrowers, the Guarantors now or hereafter party thereto, the Lenders now or hereafter party   thereto, and the Lender, as administrative agent for the other lenders party thereto (hereinafter   referred to in such capacity as the “Administrative Agent”) (as amended, restated, supplemented,   or otherwise modified from time to time, the “Credit Agreement”), payable with respect to each  Swing Loan evidenced hereby on the earlier of (i) demand by the Lender or (ii) by 11:00 a.m.  Eastern time on the Expiration Date, or at such other time specified in the Credit Agreement.          The Borrowers shall pay interest on the unpaid principal balance of each Swing Loan   from time to time outstanding hereunder from the date hereof at the rate per annum and on the   date(s) provided in the Credit Agreement.  To the extent provided in the Credit Agreement, upon   the occurrence of an Event of Default, and until such time such Event of Default shall have been   cured or waived, the Borrowers shall pay interest on the entire principal amount of the then   outstanding Swing Loans evidenced by this Amended and Restated Swing Loan Note (this   “Note”) at a rate per annum as set forth in Section 4.3 of the Credit Agreement.  Such interest   rate will accrue before and after any judgment has been entered.          Subject to the provisions of the Credit Agreement, payments of both principal and   interest shall be made without setoff, counterclaim or other deduction of any nature at the office   of the Administrative Agent located at 7475 Wisconsin Avenue, Suite 700, Bethesda, Maryland   20814, unless otherwise directed in writing by the Administrative Agent, in lawful money of the   United States of America in immediately available funds.          This Note is the Swing Loan Note referred to in, and is entitled to the benefits of, the   Credit Agreement and the other Loan Documents, including the representations, warranties,   covenants, conditions and liens contained or granted therein.  The Credit Agreement among   other things contains provisions for acceleration of the maturity hereof upon the happening of   certain stated events and also for prepayment, in certain circumstances, on demand or otherwise,   on account of principal hereof prior to maturity upon the terms and conditions therein specified.     {N0289348 2 }                          

 

   All capitalized terms used herein shall, unless otherwise defined herein, have the same meanings  given to such terms in the Credit Agreement.  Except as otherwise provided in the Credit  Agreement, the Borrowers waive presentment, demand, notice, protest and all other demands and  notices in connection with the delivery, acceptance, performance, default or enforcement of this  Note and the Credit Agreement.         TO THE EXTENT PERMITTED BY THE LAWS OF THE STATE OF  MARYLAND, EACH BORROWER HEREBY AUTHORIZES AND EMPOWERS ANY  ATTORNEY OR ATTORNEYS OR CLERK OF ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF MARYLAND, UPON THE OCCURRENCE OF AN  EVENT OF DEFAULT, TO APPEAR FOR SUCH BORROWER IN ANY SUCH COURT,  WITH OR WITHOUT DECLARATION FILED, TO WAIVE THE ISSUING AND  SERVICE OF PROCESS AND TO CONFESS OR ENTER JUDGMENT AGAINST  SUCH BORROWER IN FAVOR OF LENDER FOR ALL SUMS THEN DUE BY SUCH  BORROWER TO LENDER UNDER THIS NOTE, WITH COSTS OF SUIT AND  RELEASE OF PROCEDURAL ERRORS AND WITH REASONABLE ATTORNEYS’  FEES OF TEN PERCENT (10%) OF THE AMOUNT THEN DUE (PROVIDED THAT  SUCH AMOUNT SHALL BE REDUCED TO ACTUAL, REASONABLE AND  DOCUMENTED FEES INCURRED); AND FOR DOING SO THIS NOTE OR A COPY  VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. SUCH  AUTHORITY AND POWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE  THEREOF, AND JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME  TO TIME AS OFTEN AS THERE IS OCCASION THEREFOR.            EACH BORROWER  ACKNOWLEDGES AND AGREES THAT THE LENDER'S RIGHT TO COLLECT  THE REASONABLE, ACTUAL AND DOCUMENTED ATTORNEYS' FEES IT  ACTUALLY INCURS, AFTER THE DATE OF ANY JUDGMENT ON ANY SUIT  HEREUNDER, IN ENFORCING ANY OF ITS RIGHTS OR REMEDIES HEREUNDER  OR IN PROTECTING LENDER'S COLLATERAL OR ANY INTERESTS OF SUCH  BORROWER THEREIN, SHALL NOT BE DEEMED TO MERGE INTO ANY  JUDGMENT AWARDED BY THE COURT, AND SHALL SURVIVE ANY SUCH  JUDGMENT; IT BEING THE INTENTION OF EACH BORROWER THAT LENDER  SHALL HAVE THE RIGHT TO BRING AND MAINTAIN ONE OR MORE POST- JUDGMENT ACTIONS FOR REIMBURSEMENT OF ALL REASONABLE  ATTORNEYS' FEES ACTUALLY INCURRED BY LENDER IN OBTAINING FULL  AND FINAL REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND  OBLIGATIONS EVIDENCED OR SECURED BY THIS NOTE.  THIS NOTE AND THE  INDEBTEDNESS, LIABILITIES AND OBLIGATIONS OF EACH BORROWER  HEREUNDER SHALL BE DEEMED TO SURVIVE UNTIL THE FULL AND FINAL  REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND OBLIGATIONS  EVIDENCED OR SECURED BY THIS NOTE.         The Borrowers acknowledge and agree that the Lender may at any time and in its sole  discretion demand payment of all amounts outstanding under this Note without prior notice to  the Borrowers.         This Note shall bind the Borrowers and their respective successors and assigns, and the  benefits hereof shall inure to the benefit of the Lender and its successors and permitted assigns.     {N0289348 2 }                       

 

   All references herein to the “Borrowers”, the “Administrative Agent” and the “Lender” shall be  deemed to apply to the Borrowers, the Administrative Agent and the Lender, respectively, and  their respective successors and assigns as permitted under the Credit Agreement.         This Note and any other documents delivered in connection herewith and the rights and  obligations of the parties hereto and thereto shall for all purposes be governed by and construed  and enforced in accordance with the internal laws of the State of Maryland without regard to its  conflict of laws principles.         All capitalized terms used herein shall, unless otherwise defined herein, have the same  meanings given to such terms in the Credit Agreement.         This Note amends and restates, and is given in replacement for, and not in payment of, that  certain Swing Loan Note dated as of June 7, 2019 (the “Original Note”), given by the Borrowers  party thereto in favor of the Lender and is in no way intended, and shall not be deemed or  construed, to constitute a novation of the Original Note. This Note supersedes the Original Note in  all respects and, upon the execution and delivery by the Borrowers of this Note, the Original Note  shall have no further force and effect.         The Borrowers acknowledge and agree that delivery of an executed counterpart of a  signature page of this Note by telecopy or e-mail shall be effective as delivery of a manually  executed counterpart of this Note.                                           [remainder of page intentionally left blank]    {N0289348 2 }                       

 

                                                                                          IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned  have executed this Swing Loan Note by their duly authorized officers with the intention that it  constitute a sealed instrument.                                                DLH HOLDINGS CORP.                                        By:                                (SEAL)                                      Name:                                      Title:                                         DLH SOLUTIONS, INC.                                                              By:                                (SEAL)                                      Name:                                      Title:                                                                                                                  DANYA INTERNATIONAL, LLC                                       By:                                (SEAL)                                      Name:                                      Title:                                          SOCIAL & SCIENTIFIC SYSTEMS, INC.                                       By:                                (SEAL)                                      Name:                                      Title:                                                                                                                  IRVING BURTON ASSOCIATES, LLC                                        By:                                (SEAL)                                      Name:                                      Title:      {N0289348 2 }                        

 

                                    EXHIBIT 1.1(N)(3)                                     FORM OF                     AMENDED AND RESTATED TERM NOTE   $                                                        ___________ ___, 20__                                                                                       FOR VALUE RECEIVED, the undersigned, DLH HOLDINGS CORP., a New Jersey  corporation ("Holdings"), DLH SOLUTIONS, INC., a Georgia corporation ("Solutions"),  DANYA INTERNATIONAL, LLC, a Maryland limited liability company ("Danya"), SOCIAL  & SCIENTIFIC SYSTEMS, INC., a Delaware corporation ("Systems") and IRVING BURTON  ASSOCIATES, LLC, a Virginia limited liability company (“IBA” and collectively with  Holdings, Solutions, Danya and Systems, the "Borrowers"), hereby promise to pay  __________________________________ (the “Lender”) or its registered assigns, the principal  sum of __________________ US Dollars (US $______________), which shall be payable to the  Lender as set forth on the Schedule of Principal Payments attached hereto and incorporated  herein.  Each such principal payment shall be due on the last day of each calendar quarter,  beginning on December 31, 2020, and continuing until the Expiration Date when the entire  unpaid principal balance hereof and accrued interest thereon shall be due and payable in full.   The Borrowers shall also make any mandatory prepayments to the Lender as required by Section  5.7 of the Credit Agreement (as hereinafter defined).         The Borrowers shall pay interest on the unpaid principal balance hereof from time to time  outstanding from the date hereof at the rate or rates per annum specified by the Administrative  Borrower pursuant to Section 4.1.2 of, or as otherwise provided in, the Amended and Restated  Credit Agreement by and among the Borrowers, the Guarantors now or hereafter party thereto,  the Lenders now or hereafter party thereto and First National Bank of Pennsylvania, as  administrative agent (hereinafter referred to in such capacity as the “Agent”) and the Lender  dated as of ___________ ___, 2020 (as amended, restated, modified or supplemented, from time  to time, the “Credit Agreement”).         To the extent provided in the Credit Agreement, upon the occurrence of an Event of  Default, and until such time such Event of Default shall have been cured or waived, the  Borrowers shall pay interest on the unpaid principal balance hereof at a rate per annum as set  forth in Section 4.3 of the Credit Agreement.  Such interest rate will accrue before and after any  judgment has been entered.         Subject to the provisions of the Credit Agreement, payments of principal and interest  shall be made without setoff, counterclaim or other deduction of any nature at the office of the  Agent located at 7475 Wisconsin Avenue, Suite 700, Bethesda, Maryland 20814, in lawful  money of the United States of America in immediately available funds.         This Amended and Restated Term Note (this “Note”) is one of the Term Notes referred to  in, and is entitled to the benefits of, the Credit Agreement and the other Loan Documents,  including the representations, warranties, covenants, conditions, security interests and Liens    {N0289348 2 }  

 

 contained or granted therein.  The Credit Agreement among other things contains provisions for   acceleration of the maturity hereof upon the happening of certain stated events and also for   prepayments, in certain circumstances, on account of principal hereof prior to maturity upon the   terms and conditions therein specified.         Except as otherwise provided in the Credit Agreement, the Borrowers waive presentment,  demand, notice, protest and all other demands and notices in connection with the delivery,  acceptance, performance, default or enforcement of this Note and the Credit Agreement.         TO THE EXTENT PERMITTED BY THE LAWS OF THE STATE OF  MARYLAND, EACH BORROWER HEREBY AUTHORIZES AND EMPOWERS ANY  ATTORNEY OR ATTORNEYS OR CLERK OF ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF MARYLAND, UPON THE OCCURRENCE OF AN  EVENT OF DEFAULT, TO APPEAR FOR SUCH BORROWER IN ANY SUCH COURT,  WITH OR WITHOUT DECLARATION FILED, TO WAIVE THE ISSUING AND  SERVICE OF PROCESS AND TO CONFESS OR ENTER JUDGMENT AGAINST  SUCH BORROWER IN FAVOR OF LENDER FOR ALL SUMS THEN DUE BY SUCH   BORROWER TO LENDER UNDER THIS NOTE, WITH COSTS OF SUIT AND   RELEASE OF PROCEDURAL ERRORS AND WITH REASONABLE ATTORNEYS’   FEES OF TEN PERCENT (10%) OF THE AMOUNT THEN DUE (PROVIDED THAT   SUCH AMOUNT SHALL BE REDUCED TO ACTUAL, REASONABLE AND   DOCUMENTED FEES INCURRED); AND FOR DOING SO THIS NOTE OR A COPY   VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. SUCH   AUTHORITY AND POWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE   THEREOF, AND JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME   TO TIME AS OFTEN AS THERE IS OCCASION THEREFOR.            EACH BORROWER   ACKNOWLEDGES AND AGREES THAT THE LENDER'S RIGHT TO COLLECT   THE REASONABLE, ACTUAL AND DOCUMENTED ATTORNEYS' FEES IT   ACTUALLY INCURS, AFTER THE DATE OF ANY JUDGMENT ON ANY SUIT   HEREUNDER, IN ENFORCING ANY OF ITS RIGHTS OR REMEDIES HEREUNDER   OR IN PROTECTING LENDER'S COLLATERAL OR ANY INTERESTS OF SUCH   BORROWER THEREIN, SHALL NOT BE DEEMED TO MERGE INTO ANY   JUDGMENT AWARDED BY THE COURT, AND SHALL SURVIVE ANY SUCH   JUDGMENT; IT BEING THE INTENTION OF EACH BORROWER THAT LENDER   SHALL HAVE THE RIGHT TO BRING AND MAINTAIN ONE OR MORE POST-  JUDGMENT ACTIONS FOR REIMBURSEMENT OF ALL REASONABLE   ATTORNEYS' FEES ACTUALLY INCURRED BY LENDER IN OBTAINING FULL   AND FINAL REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND   OBLIGATIONS EVIDENCED OR SECURED BY THIS NOTE.  THIS NOTE AND THE   INDEBTEDNESS, LIABILITIES AND OBLIGATIONS OF EACH BORROWER   HEREUNDER SHALL BE DEEMED TO SURVIVE UNTIL THE FULL AND FINAL   REPAYMENT OF ALL INDEBTEDNESS, LIABILITIES AND OBLIGATIONS   EVIDENCED OR SECURED BY THIS NOTE.          This Note shall bind the Borrowers and their respective successors and assigns, and the   benefits hereof shall inure to the benefit of the Lender and its successors and permitted assigns.   All references herein to the “Borrowers” and the “Lender” shall be deemed to apply to the     {N0289348 2 } 

 

Borrowers and the Lender, respectively, and their respective successors and assigns as permitted  under the Credit Agreement.         This Note and any other documents delivered in connection herewith and the rights and  obligations of the parties hereto and thereto shall for all purposes be governed by and construed  and enforced in accordance with the internal laws of the State of Maryland without regard to its  conflicts of laws principles.          All capitalized terms used herein shall, unless otherwise defined herein, have the same  meanings given to such terms in the Credit Agreement.         This Note amends and restates, and is given in replacement for, and not in payment of, that  certain Term Note dated as of June 7, 2019 (the “Original Note”), given by the Borrowers party  thereto in favor of the Lender and is in no way intended, and shall not be deemed or construed, to  constitute a novation of the Original Note. This Note supersedes the Original Note in all respects  and, upon the execution and delivery by the Borrowers of this Note, the Original Note shall have no  further force and effect.         The Borrowers acknowledge and agree that delivery of an executed counterpart of a  signature page of this Note by telecopy or e-mail shall be effective as delivery of a manually  executed counterpart of this Note.                          [remainder of page intentionally left blank]    {N0289348 2 } 

 

                                                                                       IN WITNESS WHEREOF, and intending to be legally bound the undersigned has  executed this Note by its duly authorized officer with the intention that it constitute a sealed  instrument.                                          DLH HOLDINGS CORP.                                        By:                                (SEAL)                                      Name:                                      Title:                                        DLH SOLUTIONS, INC.                                         By:                                (SEAL)                                      Name:                                      Title:                                          SOCIAL & SCIENTIFIC SYSTEMS, INC.                                          By:                                (SEAL)                                      Name:                                      Title:                                                                              IRVING BURTON ASSOCIATES, LLC DLH                                      HOLDINGS CORP.                                        By:                                (SEAL)                                      Name:                                      Title:      {N0289348 2 }                       

 

                        SCHEDULE OF PRINCIPAL PAYMENTS          The amount of each quarterly principal installment shall be as follows (subject, however,  to adjustment upon for voluntary prepayments as set forth in Section 5.6 [Voluntary  Prepayments] of the Credit Agreement and mandatory prepayments as set forth in Section 5.7  [Mandatory Prepayments] of the Credit Agreement.         Date of Payment of Installment        Amount of Term Loan Repayment                                                                December 31, 2020                   [$1,750,000 * Lender’s Ratable Share]      March 31, 2021                      [$1,750,000 * Lender’s Ratable Share]      June 30, 2021                       [$1,750,000 * Lender’s Ratable Share]      September 30, 2021                  [$1,750,000 * Lender’s Ratable Share]                                                                December 31, 2021                   [$1,750,000 * Lender’s Ratable Share]      March 31, 2022                      [$1,750,000 * Lender’s Ratable Share]      June 30, 2022                       [$1,750,000 * Lender’s Ratable Share]      September 30, 2022                  [$1,750,000 * Lender’s Ratable Share]                                                                December 31, 2022                   [$2,187,500 * Lender’s Ratable Share]      March 31, 2023                      [$2,187,500 * Lender’s Ratable Share]      June 30, 2023                       [$2,187,500 * Lender’s Ratable Share]      September 30, 2023                  [$2,187,500 * Lender’s Ratable Share]                                                                December 31, 2023                   [$2,187,500 * Lender’s Ratable Share]      March 31, 2024                      [$2,187,500 * Lender’s Ratable Share]      June 30, 2024                       [$2,187,500 * Lender’s Ratable Share]      September 30, 2024                  [$2,187,500 * Lender’s Ratable Share]                                                                December 31, 2024                   [$2,187,500 * Lender’s Ratable Share]      March 31, 2025                      [$2,187,500 * Lender’s Ratable Share]      June 30, 2025                       [$2,187,500 * Lender’s Ratable Share]      September 30, 2025                  [$2,187,500 * Lender’s Ratable Share]               {N0289348 2 }                       

 

                               EXHIBIT 1.1(P)(1)                                    FORM OF                            AMENDED AND RESTATED            PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT         This Amended and Restated Patent, Trademark and Copyright Security Agreement (the  “Agreement”), dated as of [_____], 2020 is entered into by and among DLH HOLDINGS  CORP., a New Jersey corporation (“Holdings”), DLH SOLUTIONS, INC., a Georgia  corporation (“Solutions”), DANYA INTERNATIONAL LLC, a Maryland limited liability  company (“Danya”), SOCIAL & SCIENTIFIC SYSTEMS, INC., a Delaware corporation  (“Systems”) and IRVING BURTON ASSOCIATES, LLC, a Virginia limited liability company  (“IBA” and collectively with Holdings, Solutions, Danya, and Systems, the “Borrowers”), and  each of the GUARANTORS (as hereinafter defined) (together with the Borrowers, collectively,  the “Pledgors” and each, a “Pledgor”), and FIRST NATIONAL BANK OF PENNSYLVANIA,  in its capacity as Agent (the “Agent”) for the Lenders referred to below (the “Agent”).         WHEREAS, reference is made to that certain Credit Agreement, dated June 7, 2019, by  and among certain of the Pledgors, as borrowers, and the other guarantors party thereto, the  lenders party thereto and the Agent (the “Existing Credit Agreement”);         WHEREAS, simultaneously with the execution and delivery of the Existing Credit  Agreement, Holdings, Solutions, Danya and Systems (collectively, the “Original Pledgors”)  and  Agent entered into that certain Patent, Trademark and Copyright Security Agreement, dated as of  June 7, 2019 the (“Existing Patent, Trademark and Copyright Security Agreement”), whereby  certain of the Pledgors agreed, among other things, to grant a security interest to the Agent in  certain patents, trademarks, copyrights and other property as security for loans and other  obligations as more fully described therein;         WHEREAS, pursuant to that certain Amended and Restated Credit Agreement (as  amended, restated, modified or supplemented from time to time, the “Credit Agreement”) of  even date herewith by and among the Pledgors, the “Lenders” (as defined in the Credit  Agreement) and the Agent, the Agent and the Lenders have agreed to amend and restate the  Existing Credit Agreement to provide certain loans and to make certain other financial  accommodations to the Loan Parties, and         WHEREAS, pursuant to and in consideration of the Credit Agreement, the Pledgors have  agreed, among other things, to amend and restate the Existing Patent, Trademark and Copyright  Security Agreement and reconfirm and grant anew, as applicable, a security interest to the Agent  in certain patents, trademarks, copyrights and other property as security for such loans and other  obligations as more fully described herein.         NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as  follows:         1.    Defined Terms.   {N0289348 2 }                    6122793 

 

                                                                                       (a)   Except as otherwise expressly provided herein, (i) capitalized terms used in this  Agreement shall have the respective meanings assigned to them in the Credit Agreement and  (ii) the rules of construction set forth in Section 1.2 [Construction] of the Credit Agreement  shall apply to this Agreement.  Where applicable and except as otherwise expressly provided  herein, terms used herein (whether or not capitalized) shall have the respective meanings  assigned to them in the Uniform Commercial Code as enacted in Maryland as amended from  time to time (the “Code”).         (b)   “Patents, Trademarks and Copyrights” shall mean and include all of each  Pledgor’s present and future right, title and interest in and to the following:  all trade names,  patent applications, patents, trademark applications, trademarks, service mark applications,  service marks, copyright applications and copyrights, whether now owned or hereafter acquired  by such Pledgor, including those listed on Schedule A hereto, including all proceeds thereof  (such as, by way of example, license royalties and proceeds of infringement suits), the right to  sue for past, present and future infringements, all rights corresponding thereto throughout the  world and all reissues, divisions, continuations, renewals, extensions and continuations-in-part  thereof, and the goodwill of the business to which any of the patents, trademarks and copyrights  relate (each of the foregoing, individually, a “Patent, Trademark or Copyright”).         (c)   “Debt” shall mean all Obligations now existing or hereafter arising.  Without  limitation of the foregoing, any of the Debt shall be and remain Debt entitled to the benefit of  this Agreement if the Agent or any of the Lenders (or any one or more assignees or transferees  thereof) from time to time assign or otherwise transfer all or any portion of their respective  rights and obligations under the Credit Agreement, the other Loan Documents, any Lender  Provided Interest Rate Hedge and any Other Lender Provided Financial Service Products  (collectively, the “Secured Loan Documents” and each a “Secured Loan Document”), in each  case, to the extent permitted by the applicable Secured Loan Documents.         2.    To secure the full payment and performance of all Debt, each Original Pledgor  hereby reconfirms its grant under the Existing Patent, Trademark and Copyright Secuirty  Agreement and grants anew and IBA grants a security interest to Agent in the entire right, title  and interest of such Pledgor in and to all of its Patents, Trademarks and Copyrights.         3.    Each Pledgor jointly and severally covenants and warrants that:         (a)   the Patents, Trademarks and Copyrights are subsisting and have not been  adjudged invalid or unenforceable, in whole or in part;         (b)   to the best of such Pledgor’s knowledge, each of the Patents, Trademarks and  Copyrights is valid and enforceable;         (c)   such Pledgor is the sole and exclusive owner of the entire and unencumbered  right, title and interest in and to each of the Patents, Trademarks and Copyrights, free and clear  of any liens, charges and encumbrances, including pledges, assignments, licenses, shop rights  and covenants by Pledgor not to sue third persons, except for Permitted Liens;    {N0289348 2 }                        

 

                                                                                         (d)   no claim has been made to such Pledgor or, to the knowledge of such Pledgor,   any other person that the use of any of the Patents, Trademarks and Copyrights violates the   rights of any third party; and          (e)   such Pledgor has used, and will continue to use for the duration of this   Agreement, proper statutory notice in connection with its use of the Patents, Trademarks and   Copyrights, except for those Patents, Trademarks and Copyrights that are hereafter allowed to   lapse in accordance with Paragraph 12 hereof.          4.   Each of the obligations of each Pledgor under this Agreement is joint and several.         The Agent and the Lenders, or any of them, may, in their sole discretion, elect to enforce  this Agreement against any Pledgor without any duty or responsibility to pursue any other  Pledgor and such an election by the Agent and the Lenders, or any of them, shall not be a  defense to any action the Agent and the Lenders, or any of them, may elect to take against any  Pledgor.  Each of the Lenders and Agent hereby reserve all rights against each Pledgor.          5.   Each Pledgor agrees that, until all of the Debt shall have been Paid in Full, it will   not enter into any agreement (for example, a license agreement) which is inconsistent with any   Pledgor’s obligations under this Agreement without Agent’s prior written consent, except   leases, subleases, licenses or sublicenses entered into in the ordinary course of business, in each   case which do not materially interfere with the business of such Pledgor.          6.    If, before the Debt shall have been Paid in Full, any Pledgor shall own any new   trademarks or service marks or any new copyrightable or patentable inventions for which   Pledgor has decided to pursue a copyright or patent or any registered, issued or applications for   patent for any reissue, division, continuation, renewal, extension, or continuation in part of any   Patent, Trademark or Copyright or any improvement on any Patent, Trademark or Copyright,   the provisions of this Agreement shall automatically apply thereto and such Pledgor shall give   to Agent prompt notice thereof in writing.  Concurrently with the delivery of each Compliance   Certificate delivered pursuant to Section 8.3.4 of the Credit Agreement, each Pledgor and Agent   agree to modify this Agreement by amending Schedule A to include any future registered or   issued patents, patent applications, trademark applications, registered or issued trademarks,   registered or issued copyrights or copyright applications and the provisions of this Agreement   shall apply thereto.          7.    Agent shall have, in addition to all other rights and remedies given it by this   Agreement and those rights and remedies set forth in the Credit Agreement and the other   Secured Loan Documents, those allowed by applicable Law and the rights and remedies of a   secured party under the Uniform Commercial Code as enacted in any jurisdiction in which the   Patents, Trademarks and Copyrights may be located and, without limiting the generality of the   foregoing, if an Event of Default has occurred and is continuing, Agent may immediately,   without demand of performance and without other notice (except as set forth below) or demand   whatsoever to Pledgors, all of which are hereby expressly waived, and without advertisement,   sell at public or private sale or otherwise realize upon, in a city that the Agent shall designate by   notice to the Pledgors, the whole or from time to time any part of the Patents, Trademarks and   Copyrights, or any interest which any Pledgor may have therein and, after deducting from the     {N0289348 2 }                        

 

proceeds of sale or other disposition of the Patents, Trademarks and Copyrights all expenses  (including fees and expenses for brokers and attorneys), shall apply the remainder of such  proceeds toward the payment of the Debt as set forth in Section 9.2.4 [Application of Proceeds]  of the Credit Agreement.  Notice of any sale or other disposition of the Patents, Trademarks and  Copyrights shall be given to Pledgors at least ten (10) days before the time of any intended  public or private sale or other disposition of the Patents, Trademarks and Copyrights is to be  made, which each Pledgor hereby agrees shall be reasonable notice of such sale or other  disposition.  At any such sale or other disposition, Agent may, to the extent permissible under  applicable Law, purchase the whole or any part of the Patents, Trademarks and Copyrights sold,  free from any right of redemption on the part of Pledgor, which right is hereby waived and  released.         8.    If any Event of Default shall have occurred and be continuing, Pledgor hereby authorizes and empowers Agent to make, constitute and appoint any officer or agent of Agent,  as Agent may select in its exclusive discretion, as such Pledgor’s true and lawful attorney-in- fact, with the power to endorse such Pledgor’s name on all applications, documents, papers and  instruments necessary for Agent to use the Patents, Trademarks and Copyrights, or to grant or  issue, on commercially reasonable terms, any exclusive or nonexclusive license under the  Patents, Trademarks and Copyrights to any third person, or necessary for Agent to assign,  pledge, convey or otherwise transfer title in or dispose of, on commercially reasonable terms,  the Patents, Trademarks and Copyrights to any third Person.  Each Pledgor hereby ratifies all  that such attorney shall lawfully do or cause to be done by virtue hereof.  This power of  attorney, being coupled with an interest, shall be irrevocable for the life of this Agreement.          9.    (a)   Each Pledgor shall promptly execute and deliver to the Agent a Grant of  Security Interest in Patents, Trademarks, Service Marks and Copyrights in the form attached  hereto as Exhibit A with respect to each Patent, Copyright and Trademark that constitutes a  patent application, registered or issued patent, trademark application, registered or issued  trademark, service mark application, registered or issued service mark, copyright application or  registered or issued copyright, and such other agreements, documents and instruments as the  Agent shall from time to time reasonably request to reflect the security interest therein granted  hereunder, and the Agent is hereby authorized to file each such Grant of Security Interest in  Patents, Trademarks, Service Marks and Copyrights and each such document with the United  States Patent and Trademark Office and the United States Copyright Office, as applicable, and  any other applicable governmental agency in order to perfect the Agent’s security interest  therein as granted hereunder.         (b)   Each Pledgor shall promptly execute and deliver to the Agent a Patent Assignment in the form attached hereto as Exhibit B, a Trademark and Service Mark  Assignment in the form attached hereto as Exhibit C, and a Copyright Assignment in the form  attached hereto as Exhibit D, in each case with respect to each patent application, patent,  trademark application, trademark, service mark application, service mark, copyright application  and copyright, and such other agreements, documents and instruments as the Agent shall from  time to time reasonably request, permanently assigning all rights in the Patents, Trademarks and  Copyrights to the Agent in the event any Event of Default shall have occurred and be continuing  (the “Assignments”).  The Assignments shall be held by the Agent, in escrow, until the  occurrence of an Event of Default and, after and during the continuation of any such occurrence,    {N0289348 2 }

 

                                                                                 the Agent may, at its sole option, record such escrowed Assignments with the United States  Patent and Trademark Office and the United States Copyright Office, as applicable, and any  other applicable governmental agency.          10.   (a)   Upon Payment in Full, this Agreement shall terminate.         (b)   A Pledgor shall automatically be released from its obligations hereunder (other  than contingent obligations that survive the termination of the Secured Loan Documents as to  which no claim has been asserted) in the circumstances set forth in Section 10.10(ii) of the  Credit Agreement.         (c)   All Collateral sold or otherwise disposed of in a sale or other disposition or  transfer permitted under Section 8.2.8 [Dispositions of Assets or Subsidiaries] or 8.2.7  [Liquidations, Mergers, Consolidations] of the Credit Agreement with respect to which the  Pledgors shall have fully complied with all requirements and satisfied all conditions of the  Secured Loan Documents shall automatically be released.         (d)   In connection with any termination or release pursuant to paragraph (a), (b) or (c)  above, the Agent shall promptly execute and deliver to any Pledgor, at such Pledgor’s expense,  all documents that such Pledgor shall reasonably request to evidence such termination or release  and shall perform such other actions reasonably requested by such Pledgor to effect such  release, including delivery of certificates, securities, instruments and the Assignments.  Any  execution and delivery of documents pursuant to this Section 10 shall be without recourse to or  warranty by the Agent.         (e)   At any time that the Borrowers desire that the Agent take any of the actions  described in the immediately preceding clause (d), they shall, upon request of the Agent, deliver  to the Agent an officer’s certificate certifying that the release of the respective Pledgor is  permitted pursuant to paragraph (a), (b) or (c) above.  The Agent shall have no liability  whatsoever to any Secured Party as a result of any release of any Pledgor by it as permitted (or  which the Agent in good faith believes to be permitted) by this Section 10.         (f)   Notwithstanding anything to the contrary set forth in this Agreement, each  Lender or Affiliate thereof that provides any Lender Provided Interest Rate Hedge or Other  Lender Provided Financial Service Products by the acceptance of the benefits under this  Agreement hereby acknowledges and agrees that any release of a Pledgor effected in the  manner permitted by this Agreement shall not require the consent of any such Lender or  Affiliate thereof.           11.   Each Pledgor unconditionally agrees that the Agent and the Lenders shall be  entitled to reimbursement of their expenses incurred hereunder as provided in Section 12.3.1 of  the Credit Agreement.         12.   Pledgor shall have the duty to prosecute diligently any patent applications  included in the Patents, Trademarks and Copyrights pending as of the date of this Agreement if  commercially reasonable in the reasonable judgment of such Pledgor or thereafter until the Debt  shall have been Paid in Full, to make application on unpatented but patentable inventions   {N0289348 2 }                        

 

                                                                                 (whenever it is commercially reasonable in the reasonable judgment of such Pledgor to do so)  and to preserve and maintain all rights in patent applications and registered and issued patents  included in the Patents, Trademarks and Copyrights, including the payment of all maintenance  fees.  Any expenses incurred in connection with such an application shall be borne by Pledgors.   No Pledgor shall abandon any Patent, Trademark or Copyright that in the reasonable judgment  of such Pledgor is material to the operation of the business without the consent of Agent, which  shall not be unreasonably withheld.         13.   Each Pledgor shall have the right to bring suit, action or other proceeding in its  own name, and, with the Agent’s consent, to join Agent, if necessary, as a party to such suit, to  enforce the Patents, Trademarks and Copyrights and any licenses thereunder.  The Credit  Agreement sets forth Pledgor’s rights to indemnification and reimbursement in connection with  this Agreement.         14.   No course of dealing between any Pledgor and Agent, nor any failure to exercise  nor any delay in exercising, on the part of Agent, any right, power or privilege hereunder or  under the Credit Agreement or other Secured Loan Documents shall operate as a waiver of such  right, power or privilege, nor shall any single or partial exercise of any right, power or privilege  hereunder or thereunder preclude any other or further exercise thereof or the exercise of any  other right, power or privilege.         15.   All of Agent’s rights and remedies with respect to the Patents, Trademarks and  Copyrights, whether established hereby or by the Credit Agreement or by any other agreements  or by Law, shall be cumulative and may be exercised singularly or concurrently.         16.   The provisions of this Agreement are severable, and if any clause or provision  shall be held invalid and unenforceable in whole or in part in any jurisdiction, then such  invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such  jurisdiction, and shall not in any manner affect such clause or provision in any other  jurisdiction, or any clause or provision of this Agreement in any jurisdiction.         17.   This Agreement is subject to modification only by a writing signed by the parties,  except as provided in Paragraph 6.         18.   The benefits and burdens of this Agreement shall inure to the benefit of and be  binding upon the respective successors and permitted assigns of the parties, provided, however,  that no Pledgor may assign or transfer any of its rights or obligations hereunder or any interest  herein and any such purported assignment or transfer shall be null and void.         19.   The terms of Sections 12.11.1, 12.11.2, 12.11.3, 12.11.4 and 12.11.5 of the Credit  Agreement with respect to governing law, submission to jurisdiction, venue, service of process  and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties  hereto agree to such terms.         20.   The provisions of Section 12.13(a) of the Credit Agreement regarding novation  are hereby incorporated by reference and shall apply mutatis mutandis with respect to the other  provisions of this Agreement.    {N0289348 2 }                        

 

                                                                                       21.   This 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 an  original, but all such counterparts shall constitute one and the same instrument.  Each Pledgor  acknowledges and agrees that a telecopy transmission to the Agent or any Lender of, or the e- mail delivery of a portable document format (PDF) file to the Agent or any Lender containing,  the signature pages hereof purporting to be signed on behalf of any Pledgor shall constitute  effective and binding execution and delivery hereof by such Pledgor.         22.   Each Pledgor agrees that all notices, statements, requests, demands and other  communications under this Agreement shall be given to such Pledgor at the address set forth on  a Schedule to, or in a Guarantor Joinder given under, the Credit Agreement and in the manner  provided in Section 12.5 [Notices; Effectiveness; Electronic Communication] of the Credit  Agreement.  The Agent and the Lenders may rely on any notice (whether or not made in a  manner contemplated by this Agreement) purportedly made by or on behalf of a Pledgor, and  the Agent and the Lenders shall have no duty to verify the identity or authority of the Person  giving such notice.                    [SIGNATURES APPEAR ON FOLLOWING PAGES]    {N0289348 2 }                        

 

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed  by their respective officers or agents thereunto duly authorized, as of the date first above written.                                             PLEDGORS:                                              DLH HOLDINGS CORP.                                              By:                                                                             Name:                                                  Title:                                              DLH SOLUTIONS, INC.                                              By:                                                                             Name:                                                  Title:                                              DANYA INTERNATIONAL, LLC                                                By:                                                                             Name:                                                  Title:                                              SOCIAL & SCIENTIFIC SYSTEMS, INC.                                                By:                                                                             Name:                                                  Title:                                              IRVING BURTON ASSOCIATES, LLC                                                By:                                                                             Name:                                                  Title:                                              AGENT:                                              FIRST NATIONAL BANK OF                                            PENNSYLVANIA, as Agent                                              By:                                                                             Name:                                                  Title:    {N0289348 2 }                        

 

                                          SCHEDULE A                                                TO          PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT                                                                        LIST OF REGISTERED PATENTS, TRADEMARKS,                              TRADE NAMES AND COPYRIGHTS   1.     Registered Patents:                                              Country(ies) of                                             Registration /     Application or                Exact Legal Name       Description of      Registration        Registration         Application or      of Owner        Intellectual Property    Office(s)          Number(s)        Registration Date(s)                                                                                                                                                                                                                                                                                        2.     Patent Applications                                              Country(ies) of                                             Registration /     Application or                Exact Legal Name       Description of      Registration        Registration        Application or      of Owner        Intellectual Property    Office(s)          Number(s)        Registration Date(s)                                                                                                                                                                                                                                                                                        3.     Trademarks and Service Marks:                                               Country(ies) of                                                                              Registration /     Application or      Application or  Exact Legal Name       Description of       Registration        Registration        Registration      of Owner        Intellectual Property     Office(s)          Number(s)            Date(s)                                                                                                                                                                                                                                                                                        4.     Trademark and Service Mark Applications                                              Country(ies) of                                             Registration /     Application or                Exact Legal Name       Description of      Registration        Registration         Application or      of Owner        Intellectual Property    Office(s)          Number(s)        Registration Date(s)                                                                                                                                                                                                                                                                                        5.     Trade Names:        6.     Copyrights and Copyright Applications:   {N0289348 2 }                                  

 

                                                                                                                                               Country(ies) of                          Description of     Registration /     Application or                Exact Legal Name of      Intellectual      Registration        Registration         Application or         Owner              Property           Office(s)          Number(s)        Registration Date(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     {N0289348 2 }                                

 

                                      EXHIBIT A                                        TO   AMENDED AND RESTATED PATENT, TRADEMARK AND COPYRIGHT SECURITY                                   AGREEMENT                                                                 AMENDED AND RESTATED GRANT OF     SECURITY INTEREST IN PATENTS, TRADEMARKS, SERVICE MARKS AND                                   COPYRIGHTS          This AMENDED AND RESTATED GRANT OF SECURITY INTEREST IN  PATENTS, TRADEMARKS, SERVICE MARKS AND COPYRIGHTS (this “Agreement”) is  entered into effective as of ____________, 2020 by and among [___________], a  [__________] (the “Grantor”), and FIRST NATIONAL BANK OF PENNSYLVANIA, in its  capacity as Agent (the “Agent”) for the Lenders referred to below (the “Agent”), each of which  are parties to that certain Amended and Restated Patent, Trademark and Copyright Security  Agreement, dated as of ____________, 2020 (as amended, supplemented or otherwise  modified from time to time, the “Security Agreement”), among the Borrowers (as defined  therein), and each of the other grantors party thereto and the Agent.                                           WITNESSETH:           WHEREAS, reference is made to that certain Credit Agreement, dated June 7, 2019, by   and among certain of the Grantors, as borrowers, and the other guarantors party thereto, the   lenders party thereto and the Administrative Agent (the “Existing Credit Agreement”);          WHEREAS, simultaneously with the execution and delivery of the Existing Credit   Agreement, Solutions, Danya and Systems (collectively, the “Original Grantors”) and the   Administrative Agent entered into that certain Grant of Security Interest In Patents,   Trademarks, Service Marks and Copyrights, dated as of June 7, 2019 (the “Existing Grant   Agreement”) whereby the Grantors party thereto agreed to grant a security interest to the Agent   in such Grantor’s Patents, Trademarks and Copyrights as more fully described therein in the   manner set forth therein;          WHEREAS, pursuant to that certain Amended and Restated Credit Agreement (as   amended, restated, modified or supplemented from time to time, the “Credit Agreement”) dated   as of [_____], 2020 by and among the Grantors, each of the other Borrowers and each of the   other Guarantors (as defined therein), the “Lenders” (as defined therein) and the Agent, the   Agent and the Lenders have agreed to provide certain loans and other financial accommodations   to the Borrowers, and each Grantor has agreed, among other things, to confirm its grant of or   grant anew, as applicable, a security interest to the Agent in such Grantor’s Patents, Trademarks   and Copyrights (as defined in the Security Agreement); and          WHEREAS, in connection with the Credit Agreement and the Security Agreement, the   Grantor has duly authorized the execution, delivery and performance of this Agreement;     {N0289348 2 }                        

 

                                                                                       NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby  acknowledged, and intending to be legally bound, the Grantor agrees as follows:         SECTION 1.  Definitions; Incorporation.  Unless otherwise defined herein, terms  used in this Agreement have the meanings provided, or provided by reference in, the Security  Agreement.  The foregoing Recitals are hereby incorporated by reference into this  Agreement and made a part hereof.         SECTION 2.  Grant of Security Interest.  Subject to the terms and conditions of the  Credit Agreement and the Security Agreement, each Original Grantor hereby confirms its  original grant under the Existing Grant Agreement and grants anew and Irving Burton  Associates, LLC grants and creates in favor of the Agent, for the benefit of the Agent and the  Lenders, a security interest in and to all of such Grantor’s Patents, Trademarks and Copyrights  (including, without limitation, those items listed on Schedule A, Schedule B and Schedule C  attached hereto) (collectively, the “Collateral”); provided, however, that notwithstanding  anything to the contrary herein, no security interest shall be deemed granted hereunder in any  intent to use trademark applications solely to the extent that, and during the period in which, the  grant of a security interest therein would impair the validity or enforceability thereof or result  in the cancellation or voiding thereof.         SECTION 3.  Purpose.  This Agreement has been executed and delivered by the Grantor  for the purpose of recording the grant of security interest herein with the United States Patent and  Trademark Office and the United States Copyright Office.  The security interest granted hereby  has been granted to the Agent, for the benefit of the Agent and the Lenders, in connection with  the Security Agreement and is expressly subject to the terms and conditions thereof.  The  Security Agreement (and all rights and remedies of the Agents and Lenders thereunder) shall  remain in full force and effect in accordance with its terms.         SECTION 4.  Acknowledgment.  The Grantor hereby further acknowledges and affirms  that the rights and remedies of the Agent and the Lenders with respect to the security interest in  the Collateral granted hereby are more fully set forth in the Credit Agreement and the Security  Agreement.  In the event of any conflict between the terms of this Agreement and the terms of  the Security Agreement, the terms of the Security Agreement shall govern.         SECTION 5.  Counterparts.  This Agreement may be executed in counterparts, each of  which will be deemed an original, but all of which together shall constitute one and the same  original.          [Remainder of the page intentionally left blank; signature page follows.]        {N0289348 2 }                         

 

         IN WITNESS WHEREOF     the parties hereto have caused this Agreement to be duly  executed and delivered by their respective officers thereunto duly authorized as of the day and  year first above written.                                                    AGENT:                                              FIRST NATIONAL BANK OF                                            PENNSYLVANIA, as Agent                                                  By:                                                                             Name:                                                  Title:                                                GRANTOR:                                              [______________________________]                                                By:                                                                             Name:                                                  Title:                          {N0289348 2 }                         

 

                                                                                       SCHEDULE A     TO GRANT OF SECURITY INTEREST IN PATENTS, TRADEMARKS, SERVICE                                  MARKS AND COPYRIGHTS                                                             UNITED STATES ISSUED PATENTS AND PATENT APPLICATIONS      1.     Patents:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Patent Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                

 

                                           SCHEDULE B     TO GRANT OF SECURITY INTEREST IN PATENTS, TRADEMARKS, SERVICE                                  MARKS AND COPYRIGHTS                                                          UNITED STATES TRADEMARK REGISTRATIONS AND APPLICATIONS      1.     Trademarks and Service Marks:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Trademark and Service Mark Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                

 

                                           SCHEDULE C     TO GRANT OF SECURITY INTEREST IN PATENTS, TRADEMARKS, SERVICE                                  MARKS AND COPYRIGHTS                                                          UNITED STATES COPYRIGHTS REGISTRATIONS AND APPLICATIONS      1.     Copyrights:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Copyright Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                

 

                                         EXHIBIT B                                           TO      AMENDED AND RESTATED PATENT, TRADEMARK AND COPYRIGHT SECURITY                                      AGREEMENT                                                                              PATENT ASSIGNMENT          WHEREAS,                                                     (the “Grantor”) is   the owner of the entire right, title and interest in and to the United States patents, and patent applications   listed on Schedule A attached hereto and made a part hereof, the inventions described therein and all   rights associated therewith, including without limitation all divisions, reissues, substitutions,   continuations, in whole or in part, and re-examinations, and all patents which may be granted therefor   (collectively, the “Patent Collateral”), which have been issued by the United States Patent and   Trademark Office or which are the subject of pending or future applications in the United States Patent   and Trademark Office; and            WHEREAS, FIRST NATIONAL BANK OF PENNSYLVANIA, having a place of business   at ____________________________________________________________________, identified as the   “Agent” under that certain Amended and Restated Patent, Trademark and Copyright Security   Agreement (the “Security Agreement”) of even date herewith (the “Grantee”) is desirous of acquiring   said Patent Collateral; and            WHEREAS, this Patent Assignment shall become effective upon the occurrence of an Event of   Default as defined in the Security Agreement.            NOW, THEREFORE,     for good and valuable consideration, the receipt and sufficiency of  which is hereby acknowledged, and intending to be legally bound hereby, the Grantor, for itself and its  successors and assigns, does hereby transfer, assign and set over unto Grantee, its successors, transferees   and assigns, all of its present and future right, title and interest in and to the Patent Collateral and all   proceeds thereof and all rights and proceeds associated therewith.                  The foregoing Recitals are hereby incorporated by reference into this Agreement and made a   part hereof.                                              [Signature page follows]     {N0289348 2 }                        

 

             IN WITNESS WHEREOF, the undersigned has caused this Patent Assignment to be executed  by its duly authorized officer on this ________ day of _______________, _____.                                                      ____________________________________                                                  (Corporation, Partnership or other Entity)                                                      By:_________________________________                                                                               (SEAL)                                                  Print Name:__________________________                                                    Title:_______________________________        {N0289348 2 }                        

 

                               SCHEDULE A TO PATENT ASSIGNMENT    1.     Patents:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Patent Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                 

 

                                       EXHIBIT C                                          TO     AMENDED AND RESTATED PATENT, TRADEMARK AND COPYRIGHT SECURITY                                     AGREEMENT                                                               TRADEMARK AND SERVICE MARK ASSIGNMENT         WHEREAS,   _________________________________________________ (the “Grantor”) is  the owner of the entire right, title and interest in and to the United States trademarks, service marks,  registrations and applications listed on Schedule A attached hereto and made a part hereof (collectively,  the “Trademarks”), which are registered in the United States Patent and Trademark Office or which are  subject of pending or future applications in the United States Patent and Trademark Office; and          WHEREAS, FIRST NATIONAL BANK OF PENNSYLVANIA, having a place of business  at _____________________________________________________________________, identified as  the “Agent” under that certain Amended and Restated Patent, Trademark and Copyright Security  Agreement (the “Security Agreement”) of even date herewith (the “Grantee”) is desirous of acquiring  said Trademarks;          WHEREAS, the Grantee has a security interest in the assets of the Grantor adequate to carry on  the business of the Grantor; and          WHEREAS, this Trademark and Service Mark Assignment shall become effective upon the  occurrence of an Event of Default as defined in the Security Agreement.          NOW, THEREFORE,     for good and valuable consideration, the receipt and sufficiency of  which is hereby acknowledged, and intending to be legally bound hereby, the Grantor, for itself and its  successors and assigns, does hereby transfer, assign and set over unto Grantee, its successors, transferees  and assigns, all of its present and future right, title and interest in and to the Trademarks, the goodwill of  the business associated with such Trademarks and all proceeds thereof and all rights and proceeds  associated therewith and all rights to sue for past, present and future infringements of the foregoing.          The foregoing Recitals are hereby incorporated by reference into this Agreement and made a  part hereof.                                     [Signature page follows]          {N0289348 2 }                        

 

           IN WITNESS WHEREOF,      the undersigned has caused this Trademark and Service Mark  Assignment to be executed by its duly authorized officer on this ________ day of  __________________, _____.                                                                                                  ____________________________________                                                   (Corporation, Partnership or other Entity)                                                         By:_________________________________                                                                                (SEAL)                                                   Print Name:__________________________                                                      Title:_______________________________                                                                                                        {N0289348 2 }                        

 

               SCHEDULE A TO TRADEMARK AND SERVICE MARK ASSIGNMENT      1.     Trademarks and Service Marks:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Trademark and Service Mark Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                 

 

                                       EXHIBIT D                                          TO     AMENDED AND RESTATED PATENT, TRADEMARK AND COPYRIGHT SECURITY                                     AGREEMENT                                                                          COPYRIGHT ASSIGNMENT         WHEREAS,   _________________________________________________ (the “Grantor”) is  the owner of the entire right, title and interest in and to the United States copyrights, registrations and  applications listed on Schedule A attached hereto and made a part hereof (collectively, the  “Copyrights”), which are registered in the United States Copyright Office or which are subject of  pending or future applications in the United States Copyright Office; and          WHEREAS, FIRST NATIONAL BANK OF PENNSYLVANIA, having a place of business  at _____________________________________________________________________, identified as  the “Agent” under that certain Amended and Restated Patent, Trademark and Copyright Security  Agreement (the “Security Agreement”) of even date herewith (the “Grantee”) is desirous of acquiring  said Copyrights;          WHEREAS, the Grantee has a security interest in the assets of the Grantor adequate to carry on  the business of the Grantor; and          WHEREAS, this Copyright Assignment shall become effective upon the occurrence of an Event  of Default as defined in the Security Agreement.          NOW, THEREFORE,     for good and valuable consideration, the receipt and sufficiency of  which is hereby acknowledged, and intending to be legally bound hereby, the Grantor, for itself and its  successors and assigns, does hereby transfer, assign and set over unto Grantee, its successors, transferees  and assigns, all of its present and future right, title and interest in and to the Copyrights, the goodwill of  the business associated with such Copyrights and all proceeds thereof and all rights and proceeds  associated therewith and all rights to sue for past, present and future infringements of the foregoing.          The foregoing Recitals are hereby incorporated by reference into this Agreement and made a  part hereof.                                     [Signature page follows]    {N0289348 2 }                        

 

           IN WITNESS WHEREOF,      the undersigned has caused this Copyright Assignment to be  executed by its duly authorized officer on this ________ day of __________________, _____.                                                      ____________________________________                                                  (Corporation, Partnership or other Entity)                                                      By:_________________________________                                                                               (SEAL)                                                  Print Name:__________________________                                                    Title:_______________________________        {N0289348 2 }                         

 

                          SCHEDULE A TO COPYRIGHT ASSIGNMENT      1.     Copyrights:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                            2.     Copyright Applications:                                                       Application or                      Exact Legal Name       Description of       Registration       Application or              of Owner        Intellectual Property    Number(s)       Registration Date(s)                                                                                                                                                                                                                                                                                {N0289348 2 }                                

 

                               EXHIBIT 1.1(P)(2)                                     FORM OF                 AMENDED AND RESTATED PLEDGE AGREEMENT          THIS AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of [_____],   2020 (as amended, restated, supplemented or modified from time to time, the “Agreement”), is   given, made and entered into by EACH OF THE PERSONS LISTED ON THE   SIGNATURE PAGES HERETO        AND  EACH OF THE OTHER PERSONS WHICH  BECOME PLEDGORS HEREUNDER FROM TIME TO TIME                (each, a “Pledgor” and   collectively, the “Pledgors”), as Pledgors of the corporations, limited liability companies,   partnerships or other entities as set forth on Schedule A hereto and other collateral described   herein, and FIRST NATIONAL BANK OF PENNSYLVANIA, as the administrative agent for   itself and the other Lenders under the Credit Agreement described below (the “Administrative   Agent”).          WHEREAS, reference is made to that certain Credit Agreement, dated June 7, 2019, by   and among the Pledgors, as borrowers, and the other borrowers and guarantors party thereto, the   lenders party thereto and the Administrative Agent (the “Existing Credit Agreement”);          WHEREAS, simultaneously with the execution and delivery of the Existing Credit   Agreement, the Pledgors and Administrative Agent entered into that certain Pledge Agreement,   dated as of June 7, 2019 (the “Existing Pledge Agreement”) whereby pursuant to and in   consideration of the Credit Agreement, certain of the issued and outstanding capital stock,   shares, securities, member interests, partnership interests and other ownership interests of each of   the Companies were pledged to the Administrative Agent in accordance therewith;          WHEREAS, pursuant to that certain Amended and Restated Credit Agreement, dated as   of the date hereof (the “Credit Agreement”), DLH Holdings Corp., a New Jersey corporation   (“Holdings”) and each of the other Loan Parties party thereto, the Lenders party thereto and the   Administrative Agent have agreed to amend and restate the Existing Credit Agreement to   provide certain loans and to make certain other financial accommodations to the Loan Parties;          WHEREAS, pursuant to and in consideration of the Credit Agreement, the parties hereto   wish to amend and restate the Existing Pledge Agreement and reconfirm their pledge and pledge   anew, as applicable, certain of the issued and outstanding capital stock, shares, securities,   member interests, partnership interests and other ownership interests of each of the Companies to   the Administrative Agent in accordance herewith; and          WHEREAS, Holdings and Solutions own the outstanding capital stock, shares, securities,   member interests, partnership interests and other ownership interests of the Companies as set   forth on Schedule A hereto.          NOW, THEREFORE, intending to be legally bound hereby, the parties hereto hereby   agree as follows:     {N0289348 2 }                   46757839-v6

 

 1.    Defined Terms.         1.1   Except as otherwise expressly provided herein, capitalized terms used in this Agreement shall have the respective meanings assigned to them in the Credit Agreement.  Where  applicable and except as otherwise expressly provided herein, terms used herein (whether or not  capitalized) shall have the respective meanings assigned to them in the Uniform Commercial   Code as enacted in the State of Maryland, as amended from time to time (the “Code”).          1.2   “Company” and “Companies” shall mean one or more of the entities issuing any   of the Pledged Collateral which is or should be (in accordance with Section 5(g)  hereto)   described on Schedule A hereto.          1.3   “Foreign Company” shall mean one or more of the entities issuing any of the   Pledged Collateral which is not organized under the laws of any state of the United States of   America, which is, or should be, described on Schedule A.          1.4   “Pledged Collateral” shall mean and include all of each Pledgor’s present and   future right, title and interest in and to the following:  (i) all capital stock, shares, securities,   member interests, partnership interests, warrants, options, put rights, call rights, similar rights,   and all other ownership or participation interests in any Company (including those listed on   Schedule A) (ii)  all cash, interest, stock and other dividends or distributions paid or payable on   any of the foregoing, (iii) all books and records (whether paper, electronic or any other medium)   pertaining to the foregoing, including all stock record and transfer books, ( and (iv) all cash and   non-cash proceeds (including insurance proceeds) of any of the foregoing property, all products   thereof, and all additions and accessions thereto, substitutions therefor and replacements.          1.5   “Secured Obligations” shall mean and include the following:  (i) all Obligations,   including all now existing and hereafter arising Obligations of each and every Pledgor to the   Administrative Agent, the Lenders or any provider of any Lender Provided Interest Rate Hedge   or any Other Lender Provided Financial Service Products in connection with or under the Credit   Agreement, under any of the other Loan Documents, or under any Lender Provided Interest Rate   Hedge or Other Lender Provided Financial Service Products, including all obligations, liabilities,   and indebtedness, whether for principal, interest, fees, expenses or otherwise, of each and every   of the Pledgors to the Administrative Agent, the Lenders, or any such providers, now existing or   hereafter incurred under the Credit Agreement or the Notes or the Guaranty Agreement or any of   the other Loan Documents or any such Lender Provided Interest Rate Hedge or Other Lender   Provided Financial Service Products as any of the same or any one or more of them may from   time to time be amended, restated, modified, or supplemented, together with any and all   extensions, renewals, refinancings, and refundings thereof in whole or in part (and including   obligations, liabilities, and indebtedness arising or accruing after the commencement of any   bankruptcy, insolvency, reorganization, or similar proceeding with respect to Holdings or which   would have arisen or accrued but for the commencement of such proceeding, even if the claim   for such obligation, liability or indebtedness is not enforceable or allowable in such proceeding,   and including all obligations, liabilities and indebtedness arising from any extensions of credit   under or in connection with the Loan Documents from time to time, regardless whether any such   extensions of credit are in excess of the amount committed under or contemplated by the Loan   Documents or are made in circumstances in which any condition to extension of credit is not     {N0289348 2 }

 

 satisfied); (ii) all reimbursement obligations of each and every Pledgor with respect to any one or   more Letters of Credit issued by the Issuing Lender or any Lender; (iii) all indebtedness, loans,   obligations, expenses and liabilities of each and every of the Pledgors to the Administrative   Agent, Issuing Lender or any of the Lenders, or any provider of any Lender Provided Interest   Rate Hedge or Other Lender Provided Financial Service Products, pursuant to or in connection   with the Credit Agreement; and (iv) any sums advanced by the Administrative Agent, the Issuing   Lender or the Lenders or which may otherwise become due pursuant to the provisions of the   Credit Agreement, the Notes, this Agreement, or any other Loan Documents or pursuant to any   other agreement, document or instrument at any time delivered to the Administrative Agent in   connection therewith, including commitment, letter of credit, agent or other fees and charges,   and indemnification obligations under any such agreement, document or instrument, together   with all interest payable on any of the foregoing, whether such sums are advanced or otherwise   become due before or after the entry of any judgment for foreclosure or any judgment on any   Loan Document or with respect to any default under any of the Secured Obligations.          1.6   “Secured Parties” shall mean each of the Lenders and Administrative Agent and   any provider of Lender Provided Interest Rate Hedge or any Other Lender Provided Financial   Service Products.          2.    Grant of Security Interests.         2.1   To secure on a first-priority perfected basis the payment and performance of all   Secured Obligations in full, each Pledgor hereby reconfirms its grant under the Existing Pledge   Agreement and grants anew to the Administrative Agent a continuing first-priority security   interest under the Code in and hereby reconfirms its pledge and pledges anew to Administrative   Agent, in each case for the benefit of each of the Secured Parties, all of such Pledgor’s now   existing and hereafter acquired or arising right, title and interest in, to, and under the Pledged   Collateral whether now or hereafter existing and wherever located.          2.2   Upon the execution and delivery of this Agreement, each Pledgor shall reconfirm   its delivery and DLH Holdings Corp. shall deliver to and deposit with the Administrative Agent   in pledge, all of such Pledgor’s certificates, instruments or other documents comprising or   evidencing the Pledged Collateral to the extent that such Pledged Collateral is represented by   certificates (including, without limitation, any certificated capital stock of any Company),   together with undated stock powers, instruments or other documents signed in blank by such   Pledgor.  In the event that any Pledgor should ever acquire or receive certificates, securities,   instruments or other documents evidencing the Pledged Collateral, such Pledgor shall deliver to  and deposit with the Administrative Agent in pledge, all such certificates, securities, instruments  or other documents which evidence the Pledged Collateral.         2.3    Notwithstanding anything to the contrary contained in this Agreement, the   Pledged Collateral with respect to any one Foreign Company shall not exceed sixty-five percent  (65%) of the total combined voting power of all classes of capital stock, shares, securities,  member  interests, partnership interests and other ownership interests entitled to vote of such  Foreign Company and this Agreement shall not apply to any such stock, shares, securities,  member interests, partnership interests or ownership interests which are in excess of such sixty  five percent (65%) limitation.  To the extent the Administrative Agent receives more than sixty     {N0289348 2 }

 

 five percent (65%) of the total combined voting power of all classes of capital stock, shares,   securities, member interests, partnership interests and other ownership interests entitled to vote   of any Foreign Company, Administrative Agent shall return such excess stock, shares, securities,   member interests, partnership interests and other ownership interests upon the request of a   Pledgor.          3.    Further Assurances.         Prior to or concurrently with the execution of this Agreement, and thereafter at any time   and from time to time upon reasonable request of the Administrative Agent, each Pledgor shall   execute and deliver to the Administrative Agent all financing statements, continuation financing   statements, assignments, certificates and documents of title, affidavits, reports, notices, schedules   of account, letters of authority, further pledges, powers of attorney and all other documents   (collectively, the “Security Documents”) which the Administrative Agent may reasonably   request, in form reasonably satisfactory to the Administrative Agent, and take such other action  which the Administrative Agent may reasonably request, to perfect and continue perfected and to  create and maintain the first-priority status of the Administrative Agent’s security interest in the   Pledged Collateral and to fully consummate the transactions contemplated under this Agreement.   Each Pledgor hereby irrevocably makes, constitutes and appoints the Administrative Agent (and   any of the Administrative Agent’s officers or employees or agents designated by the   Administrative Agent) as such Pledgor’s true and lawful attorney with power to sign the name of   such Pledgor on all or any of the Security Documents which the Administrative Agent   determines must be executed, filed, recorded or sent in order to perfect or continue perfected the   Administrative Agent’s security interest in the Pledged Collateral in any jurisdiction.  Such   power, being coupled with an interest, is irrevocable until all of the Secured Obligations have   been indefeasibly paid in full and the Commitments have terminated.            4.    Representations and Warranties.         Each Pledgor hereby jointly and severally represents and warrants to the Administrative   Agent as follows:          4.1   Such Pledgor, has and will continue to have (or, in the case of after-acquired   Pledged Collateral, at the time such Pledgor acquires rights in such Pledged Collateral, will have   and will continue to have), title to its Pledged Collateral, free and clear of all Liens other than  those in favor of the Administrative Agent for the Lenders and the Administrative Agent;          4.2   The capital stock shares, securities, member interests, partnership interests and   other ownership interests constituting the Pledged Collateral have been duly authorized and   validly issued to such Pledgor (as set forth on Schedule A hereto), are fully paid and   nonassessable and constitute the following:  (i) one hundred percent (100%) of the issued and   outstanding capital stock, shares, securities, member interests and partnership interests of each of   the Companies which is not a Foreign Company, and (ii) sixty five percent (65%) of the issued   and outstanding capital stock, shares, securities, member interests and partnership interests of   each of the Foreign Companies;     {N0289348 2 }

 

      4.3   The security interests in the Pledged Collateral granted hereunder are valid,  perfected and of first priority, subject to the Lien of no other Person;         4.4   There are no restrictions upon the transfer of the Pledged Collateral and such  Pledgor has the power and authority and right to transfer the Pledged Collateral owned by such  Pledgor free of any Liens or encumbrances and without obtaining the consent of any other  Person;         4.5   Such Pledgor has all necessary power to execute, deliver and perform this  Agreement;        4.6    There are no actions, suits, or proceedings pending or, to such Pledgor’s best  knowledge after due inquiry, threatened against or affecting such Pledgor with respect to the  Pledged Collateral, at law or in equity or before or by any Official Body, and such Pledgor is not  in default with respect to any judgment, writ, injunction, decree, rule or regulation which could  adversely affect such Pledgor’s performance hereunder;         4.7   This Agreement has been duly executed and delivered and constitutes the valid  and legally binding obligation of such Pledgor, enforceable in accordance with its terms, except  to the extent that enforceability of this Agreement may be limited by applicable bankruptcy,  insolvency, reorganization, moratorium or other similar Laws affecting the enforceability of  creditors’ rights generally or limiting the right of specific performance;         4.8   Neither the execution and delivery by such Pledgor of this Agreement, nor the  compliance with the terms and provisions hereof, will violate any provision of any Law or  conflict with or result in a breach of any of the terms, conditions or provisions of any judgment,  order, injunction, decree or ruling of any Official Body to which such Pledgor is subject or any  provision of any agreement, understanding or arrangement to which Pledgor is a party or by  which such Pledgor is bound;         4.9   Such Pledgor’s exact legal name is as set forth on the signature page hereto;         4.10  The state of incorporation, formation or organization, as applicable, of such  Pledgor is as set forth on Schedule A hereto;         4.11  Such Pledgor’s chief executive office is as set forth on Schedule A to the Security  Agreement; and         4.12  All rights of such Pledgor in connection with its ownership of each of the  Companies are evidenced and governed solely by the stock certificates, instruments or other  documents evidencing ownership and organizational documents of each of the Companies  (including limited liability company and joint venture agreements) and no shareholder or other  similar agreements are applicable to any of the Pledged Collateral, and no such certificate,  instrument or other document provides that any member interest, or partnership interest or other  intangible ownership interest, constituting Pledged Collateral, is a “Security” within the meaning  of and subject to Article 8 of the Code; and, the organizational documents of each Company  contain no restrictions on the rights of shareholders, members or partners other than those that    {N0289348 2 }

 

 normally would apply to a company organized under the laws of the jurisdiction of organization   of each of the Companies.          5.    General Covenants.         Each Pledgor hereby covenants and agrees as follows:          5.1   Such Pledgor shall do all reasonable acts that may be necessary and appropriate to   maintain, preserve and protect the Pledged Collateral; such Pledgor shall be responsible for the   risk of loss of, damage to, or destruction of the Pledged Collateral owned by such Pledgor, unless   such loss is the result of the gross negligence or willful misconduct of the Administrative Agent;          5.2   Such Pledgor shall appear in and defend any action or proceeding of which such   Pledgor is aware which could reasonably be expected to affect such Pledgor’s title to, or the   Administrative Agent’s interest in, the Pledged Collateral or the proceeds thereof; provided,   however, that with the consent of the Administrative Agent such Pledgor may settle such actions   or proceedings with respect to the Pledged Collateral;          5.3   Such Pledgor shall, and shall cause each of the Companies to, keep separate,   accurate and complete records of the Pledged Collateral, disclosing the Administrative Agent’s   security interest hereunder;          5.4   Such Pledgor shall comply with all Laws applicable to the Pledged Collateral   unless any noncompliance would not individually or in the aggregate materially impair the use or   value of the Pledged Collateral or the Administrative Agent’s rights hereunder;          5.5   Such Pledgor shall pay any and all taxes, duties, fees or imposts of any nature   imposed by any Official Body on any of the Pledged Collateral, except to the extent contested in   good faith by appropriate proceedings;          5.6   Such Pledgor shall permit the Administrative Agent, its officers, employees and   agents at reasonable times to inspect all books and records related to the Pledged Collateral;          5.7   Subject to Section 2(c) hereof, to the extent, following the date hereof, such   Pledgor acquires capital stock, shares, securities, member interests, partnership interests and   other ownership interests of any of the Companies or any of the rights, property or securities,  shares, capital stock, member interests, partnership interests or any other ownership interests  described in the definition of Pledged Collateral with respect to any of the Companies, such  ownership interests shall be subject to the terms hereof and, upon such acquisition, shall be  deemed to be hereby pledged to the Administrative Agent; and such Pledgor thereupon shall  deliver all such securities, shares, capital stock, member interests, partnership interests and other  ownership interests, together with an updated Schedule A hereto, to the Administrative Agent,   together with all such control agreements, financing statements, and any other documents   necessary to implement the provisions and purposes of this Agreement as the Administrative   Agent may request;     {N0289348 2 }

 

       5.8   Except as permitted by the Credit Agreement, during the term of this Agreement,   such Pledgor shall not sell, assign, replace, retire, transfer or otherwise dispose of its Pledged   Collateral;          5.9   Such Pledgor will not change its state of incorporation, formation or organization,   as applicable, without providing thirty (30) days prior written notice to the Administrative Agent;          5.10  Such Pledgor will not change its name without providing thirty (30) days prior   written notice to the Administrative Agent;          5.11  Except as expressly set forth in the Credit Agreement, such Pledgor shall preserve   its existence as a corporation, a limited liability company or a partnership, as applicable, and   except as permitted by the Credit Agreement, shall not (i) in one transaction, or a series of   related transactions, merge into or consolidate with any other entity, the survivor of which is not   such Pledgor, or (ii) sell all or substantially all of its assets; and          5.12  During the term of this Agreement, such Pledgor shall not permit any Company to  treat any uncertificated ownership interests as securities which are subject to Article 8 of the  Code.          6.    Other Rights With Respect to Pledged Collateral.         In addition to the other rights with respect to the Pledged Collateral granted to the   Administrative Agent hereunder, at any time and from time to time after and during the   continuation of an Event of Default, the Administrative Agent, at its option and at the expense of   the Pledgors, may (a) transfer into its own name, or into the name of its nominee, all or any part   of the Pledged Collateral, thereafter receiving all dividends, income or other distributions upon   the Pledged Collateral; (b) take control of and manage all or any of the Pledged Collateral;   (c) apply to the payment of any of the Secured Obligations, whether any be due and payable or  not, any moneys, including cash dividends and income from any Pledged Collateral, now or  hereafter in the hands of the Administrative Agent, any Lender or any provider of Lender  Provided Interest Rate Hedge or any Other Lender Provided Financial Service Products, on  deposit or otherwise, belonging to any Pledgor, as the Administrative Agent in its sole discretion  shall determine; and (d) do anything which any Pledgor is required but fails to do hereunder.         7.    Additional Remedies Upon Event of Default.         Upon the occurrence of any Event of Default and while such Event of Default shall be   continuing, the Administrative Agent shall have, in addition to all rights and remedies of a   secured party under the Code or other applicable Law, and in addition to its rights under Section   6 above and under the other Loan Documents, the following rights and remedies:          7.1   The Administrative Agent may, after ten (10) days’ advance notice to a Pledgor,   sell, assign, give an option or options to purchase or otherwise dispose of such Pledgor’s Pledged   Collateral or any part thereof at public or private sale, at any of the Administrative Agent’s   offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the   Administrative Agent may deem commercially reasonable.  Each Pledgor agrees that ten (10)   days’ advance notice of the time and place of any public sale or the time after which any private     {N0289348 2 }

 

 sale is to be made shall constitute reasonable notification.  The Administrative Agent shall not be   obligated to make any sale of Pledged Collateral regardless of notice of sale having been given.   The Administrative 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. Each Pledgor recognizes that the   Administrative Agent may be compelled to resort to one or more private sales of the Pledged   Collateral to a restricted group of purchasers who will be obliged to agree, among other things, to   acquire such securities, shares, capital stock, member interests, partnership interests or   ownership interests for their own account for investment and not with a view to the distribution   or resale thereof.          7.2   The proceeds of any collection, sale or other disposition of the Pledged Collateral,   or any part thereof, shall, after the Administrative Agent has made all deductions of expenses,   including attorneys’ fees and other expenses incurred in connection with repossession,   collection, sale or disposition of such Pledged Collateral or in connection with the enforcement   of the Administrative Agent’s rights with respect to the Pledged Collateral, including in any   insolvency, bankruptcy or reorganization proceedings, be applied against the Secured  Obligations, whether or not all the same be then due and payable, as set forth in Section 9.2.4  [Application of Proceeds] of the Credit Agreement.          8.    Administrative Agent’s Duties.         The powers conferred on the Administrative Agent hereunder are solely to protect its   interest in the Pledged Collateral and shall not impose any duty upon it to exercise any such   powers.  Except for the safe custody of any Pledged Collateral in its possession and the   accounting for moneys actually received by it hereunder, the Administrative Agent shall have no   duty as to any Pledged Collateral or as to the taking of any necessary steps to preserve rights   against prior parties or any other rights pertaining to any Pledged Collateral, except as otherwise   provided by Law.          9.    Additional Pledgors.         It is anticipated that additional persons will from time to time become Subsidiaries of   Holdings or another Loan Party, each of whom will be required to join this Pledge Agreement.  It   is acknowledged and agreed that new Subsidiaries of Holdings or of another Loan Party will   become Pledgors hereunder and will be bound hereby by executing and delivering to   Administrative Agent (i) a Guarantor Joinder in the form of Exhibit 1.1(G)(1) to the Credit   Agreement and (ii) a Pledgor Joinder in the form attached hereto as Exhibit A.  In addition, a   new Schedule A hereto shall be provided to Administrative Agent showing the pledge of the   ownership interest in such new Subsidiary and any ownership interests that such new Subsidiary   owns in any other Person.          10.   No Waiver; Cumulative Remedies.         No failure to exercise, and no delay in exercising, on the part of the Administrative   Agent, any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any   single or partial exercise of any right, power or privilege hereunder preclude any further exercise     {N0289348 2 }

 

thereof or the exercise of any other right, power or privilege.  The remedies herein provided are  cumulative and not exclusive of any remedies provided under the other Loan Documents or by  Law. Each Pledgor waives any right to require the Administrative Agent to proceed against any  other Person or to exhaust any of the Pledged Collateral or other security for the Secured  Obligations or to pursue any remedy in the Administrative Agent’s power.         11.   No Discharge Until Indefeasible Payment of the Secured Obligations.        The pledge, security interests, and other Liens and the obligations of each Pledgor  hereunder shall not be discharged or impaired or otherwise diminished by any failure, default,  omission, or delay, willful or otherwise, by Administrative Agent, or any other obligor on any of  the Secured Obligations, or by any other act or thing or omission or delay to do any other act or  thing which may or might in any manner or to any extent vary the risk of such Pledgor or which  would otherwise operate as a discharge of such Pledgor as a matter of law or equity.  Without  limiting the generality of the foregoing, each Pledgor hereby consents to, and the pledge, security  interests, and other Liens given by such Pledgor hereunder shall not be diminished, terminated,  or otherwise similarly affected by any of the following at any time and from time to time, except  as otherwise provided by Law:         11.1  Any lack of genuineness, legality, validity, enforceability, or allowability (in a  bankruptcy, insolvency, reorganization or similar proceeding, or otherwise), or any avoidance or  subordination, in whole or in part, of any Loan Document, any obligations in connection with  any Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service  Products or any of the Secured Obligations and regardless of any Law, regulation, or order now  or hereafter in effect in any jurisdiction affecting any of the Secured Obligations, any of the  terms of the Loan Documents, or any rights of the Administrative Agent or any other Person  with respect thereto;         11.2  Any increase, decrease, or change in the amount, nature, type or purpose of any of  or any release, surrender, exchange, compromise or settlement of any of the Secured Obligations  (whether or not contemplated by the Loan Documents as presently constituted); any change in  the time, manner, method, or place of payment or performance of, or in any other term of, any of  the Secured Obligations; any execution or delivery of any additional Loan Documents; or any  amendment, modification or supplement to, or refinancing or refunding of, any Loan Document,  any Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service  Products or any of the Secured Obligations;         11.3  Any failure to assert any breach of or default under any Loan Document, any  Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service Products  or any of the Secured Obligations; any extensions of credit in excess of the amount committed  under or contemplated by the Loan Documents or any Lender Provided Interest Rate Hedge or  any Other Lender Provided Financial Service Products, or in circumstances in which any  condition to such extensions of credit has not been satisfied; any other exercise or non-exercise,  or any other failure, omission, breach, default, delay, or wrongful action in connection with any  exercise or non-exercise, of any right or remedy against such Pledgor or any other Person under  or in connection with any Loan Document or any Lender Provided Interest Rate Hedge or any  Other Lender Provided Financial Service Products or any of the Secured Obligations; any refusal    {N0289348 2 }

 

of payment or performance of any of the Secured Obligations, whether or not with any  reservation of rights against any Pledgor; or any application of collections (including collections  resulting from realization upon any direct or indirect security for the Secured Obligations) to  other obligations, if any, not entitled to the benefits of this Agreement, in preference to Secured  Obligations or, if any collections are applied to Secured Obligations, any application to particular  Secured Obligations;         11.4  Any taking, exchange, amendment, modification, supplement, termination,  subordination, release, loss, or impairment of, or any failure to protect, perfect, or preserve the  value of, or any enforcement of, realization upon, or exercise of rights or remedies under or in  connection with, or any failure, omission, breach, default, delay, or wrongful action by the  Administrative Agent or any other Person in connection with the enforcement of, realization  upon, or exercise of rights or remedies under or in connection with, or, any other action or  inaction by Administrative Agent or any other Person in respect of, any direct or indirect security  for any of the Secured Obligations (including the Pledged Collateral).  As used in this  Agreement, “direct or indirect security” for the Secured Obligations, and similar phrases,  includes any collateral security, guaranty, suretyship, letter of credit, capital maintenance  agreement, put option, subordination agreement, or other right or arrangement of any nature  providing direct or indirect assurance of payment or performance of any of the Secured  Obligations, made by or on behalf of any Person;         11.5  Except as expressly permitted by the Credit Agreement, any merger,  consolidation, liquidation, dissolution, winding-up, charter revocation, or forfeiture, or other  change in, restructuring or termination of the corporate structure or existence of, any Pledgor or  Holdings or any other Person; any bankruptcy, insolvency, reorganization or similar proceeding  with respect to any Pledgor or Holdings or any other Person; or any action taken or election  (including any election under Section 1111(b)(2) of the United States Bankruptcy Code or any  comparable law of any jurisdiction) made by Administrative Agent or any Pledgor or Holdings  or by any other Person in connection with any such proceeding;         11.6  Any defense, setoff, or counterclaim which may at any time be available to or be  asserted by any Pledgor or Holdings or any other Person with respect to any Loan Document or  any of the Secured Obligations; or any discharge by operation of law or release of any Pledgor or  Holdings or any other Person from the performance or observance of any Loan Document or any  of the Secured Obligations; and         11.7  Any other event or circumstance, whether similar or dissimilar to the foregoing,  and whether known or unknown, which might otherwise constitute a defense available to, or  limit the liability of a guarantor or a surety, including any Pledgor, excepting only full, strict, and  indefeasible payment and performance of the Secured Obligations in full.    {N0289348 2 }

 

       12.   The terms of Section 5.9 of the Credit Agreement are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.          13.   Waivers.         Each Pledgor hereby waives any and all defenses which any Pledgor may now or   hereafter have based on principles of suretyship, impairment of collateral, or the like and each   Pledgor hereby waives any defense to or limitation on its obligations under this Agreement   arising out of or based on any event or circumstance referred to in the immediately preceding   section hereof.  Without limiting the generality of the foregoing and to the fullest extent   permitted by applicable Law, each Pledgor hereby further waives each of the following:          13.1  All notices, disclosures and demands of any nature which otherwise might be   required from time to time to preserve intact any rights against such Pledgor, including the   following:  any notice of any event or circumstance described in the immediately preceding   section hereof; any notice required by any Law, regulation or order now or hereafter in effect in   any jurisdiction; any notice of nonpayment, nonperformance, dishonor, or protest under any   Loan Document or any Lender Provided Interest Rate Hedge or any Other Lender Provided  Financial Service Products or any of the Secured Obligations; any notice of the incurrence of any   Secured Obligations; any notice of any default or any failure on the part of such Pledgor or   Holdings or any other Person to comply with any Loan Document or any Lender Provided   Interest Rate Hedge or any Other Lender Provided Financial Service Products or any of the   Secured Obligations or any requirement pertaining to any direct or indirect security for any of   the Secured Obligations; and any notice or other information pertaining to the business,   operations, condition (financial or otherwise), or prospects of Holdings or any other Person;          13.2  Any right to any marshalling of assets, to the filing of any claim against such   Pledgor or Holdings or any other Person in the event of any bankruptcy, insolvency,   reorganization, or similar proceeding, or to the exercise against such Pledgor or Holdings, or any   other Person of any other right or remedy under or in connection with any Loan Document, any   Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service Products,   or any of the Secured Obligations or any direct or indirect security for any of the Secured   Obligations; any requirement of promptness or diligence on the part of the Administrative Agent   or any other Person; any requirement to exhaust any remedies under or in connection with, or to   mitigate the damages resulting from default under, any Loan Document or any of the Secured   Obligations or any direct or indirect security for any of the Secured Obligations; any benefit of   any statute of limitations; and any requirement of acceptance of this Agreement or any other   Loan Document, and any requirement that any Pledgor receive notice of any such acceptance;   and          13.3  Any defense or other right arising by reason of any Law now or hereafter in effect   in any jurisdiction pertaining to election of remedies (including anti-deficiency Laws, “one   action” Laws, or the like), or by reason of any election of remedies or other action or inaction by   the Administrative Agent (including commencement or completion of any judicial proceeding or   nonjudicial sale or other action in respect of collateral security for any of the Secured   Obligations), which results in denial or impairment of the right of the Administrative Agent to     {N0289348 2 }

 

 seek a deficiency against Holdings, another Loan Party or any other Person or which otherwise   discharges or impairs any of the Secured Obligations.          14.   Assignment.         All rights of the Administrative Agent under this Agreement shall inure to the benefit of   its successors and assigns.  All obligations of each Pledgor shall bind its successors and assigns;   provided, however, no Pledgor may assign or transfer any of its rights and obligations hereunder   or any interest herein, and any such purported assignment or transfer shall be null and void.          15.   Severability.         Any provision of this Agreement which shall be held invalid or unenforceable shall be   ineffective without invalidating the remaining provisions hereof.          16.   Governing Law; Submission to Jurisdiction; Venue; Service of Process: Waiver  of Jury Trial.          The terms of Section 12.11 [Choice of Law; Submission to Jurisdiction; Waiver of   Venue; Service of Process; Waiver of Jury Trial] of the Credit Agreement with respect to   governing law, submission to jurisdiction, venue, service of process and waiver of jury trial are   incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.          17.   Notices.         All notices, requests, demands, directions and other communications (collectively,   “notices”) given to or made upon any party hereto under the provisions of this Agreement shall   be as set forth in Section 12.5 [Notices; Effectiveness; Electronic Communication] of the Credit   Agreement.          18.   Specific Performance.         Each Pledgor acknowledges and agrees that, in addition to the other rights of the   Administrative Agent hereunder and under the other Loan Documents, because the   Administrative Agent’s remedies at law for failure of such Pledgor to comply with the provisions   hereof relating to the Administrative Agent’s rights (i) to inspect the books and records related to   the Pledged Collateral, (ii) to receive the various notifications such Pledgor is required to deliver  hereunder, (iii) to obtain copies of agreements and documents as provided herein with respect to  the Pledged Collateral, (iv) to enforce the provisions hereof pursuant to which the such Pledgor  has appointed the Administrative Agent its attorney-in-fact, and (v) to enforce the Administrative  Agent’s remedies hereunder, would be inadequate and that any such failure would not be  adequately compensable in damages, such Pledgor agrees that each such provision hereof may be  specifically enforced.     {N0289348 2 }

 

      19.   Voting Rights in Respect of the Pledged Collateral.        So long as no Event of Default shall occur and be continuing under the Credit  Agreement, each Pledgor may exercise any and all voting and other consensual rights pertaining  to the Pledged Collateral or any part thereof for any purpose not inconsistent with the terms of  this Agreement or the other Loan Documents; provided, however, that such Pledgor will not  exercise or will refrain from exercising any such voting and other consensual right pertaining to  the Pledged Collateral, as the case may be, if such action would have a material adverse effect on  the value of any Pledged Collateral.  Subject to the express terms and conditions of the Credit  Agreement and without limiting the generality of the foregoing and in addition thereto, the  Pledgors shall not vote to enable, or take any other action to permit, any of the Companies to  issue any stock, member interests, partnership interests or other equity securities, member  interests, partnership interests or other ownership interests of any nature or to issue any other  securities, shares, capital stock, member interests, partnership interests or other ownership  interests convertible into or granting the right to purchase or exchange for any stock, member  interests, partnership interests or other equity securities, member interests, partnership interests  or other ownership interests of any nature of any such Company or to enter into any agreement  or undertaking restricting the right or ability of the Pledgor or the Administrative Agent to sell,  assign or transfer any of the Pledged Collateral.         20.   No Novation.        The provisions of Section 12.13(a) of the Credit Agreement regarding novation are  hereby incorporated by reference and shall apply mutatis mutandis with respect to the other  provisions of this Agreement        21.   Entire Agreement; Amendments.        This Agreement constitutes the entire agreement between the parties with respect to the  subject matter hereof and supersedes all prior agreements relating to a grant of a security interest  in the Pledged Collateral by any Pledgor.  This Agreement may not be amended or supplemented  except by a writing signed by the Administrative Agent and the Pledgors.         22.   Counterparts; Telecopy Signatures.        This 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 an original,  but all such counterparts shall constitute one and the same instrument.  Each Pledgor  acknowledges and agrees that a telecopy transmission to the Administrative Agent or any Lender  of, or the e-mail delivery of a portable document format (PDF) file to the Agent or any Lender  containing, the signature pages hereof purporting to be signed on behalf of any Pledgor shall  constitute effective and binding execution and delivery hereof by such Pledgor.         23.   Construction.        The rules of construction contained in Section 1.2 of the Credit Agreement apply to this  Agreement.    {N0289348 2 }

 

               [SIGNATURES APPEAR ON FOLLOWING PAGES]    {N0289348 2 }

 

      IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have  caused this Agreement to be duly executed as of the date first above written.                                       FIRST NATIONAL BANK OF                                      PENNSYLVANIA, as Agent                                       By:                                      Name:                                      Title:    {N0289348 2 }

 

                                    DLH HOLDINGS CORP.                                       By:                                      Name:                                      Title:                                        DLH SOLUTIONS, INC.                                       By:                                      Name:                                      Title:                                        Address for Notices:                                      Kathryn M. JohnBull,                                       Chief Financial Officer                                      DLH Holdings Corp.                                      3565 Piedmont Road, N.E.,                                       Building 3 - Suite 700                                       Atlanta, Georgia 30305                                      Fax: ____________________    {N0289348 2 }

 

                                SCHEDULE A                                       TO                              PLEDGE AGREEMENT                           Description of Pledged Collateral   A.    Corporations     Pledgor and Pledgor’s         Pledged Collateral      Percentage of Ownership    jurisdiction of formation    B.    Limited Liability Companies     Pledgor and Pledgor’s       Pledged Collateral      Percentage of Ownership    jurisdiction of formation    C.    Partnerships     Pledgor and Pledgor’s       Pledged Collateral      Percentage of Ownership    jurisdiction of formation    {N0289348 2 } 

 

                                 EXHIBIT A            FORM OF PLEDGE JOINDER AND ASSUMPTION AGREEMENT         THIS PLEDGE JOINDER AND ASSUMPTION AGREEMENT (this “Pledge Joinder”)  is made as of [_______________], 20[__], by [______________________________________],  a [____________] [corporation/partnership/limited liability company] (the “New Pledgor”).   Background         Reference is made to the (i) Amended and Restated Credit Agreement, dated as [_____],  2020, by and among, DLH Holdings Corp., as Borrower thereunder, First National Bank of  Pennsylvania, as Administrative Agent (the “Administrative Agent”), the Lenders and the Loan  Parties now or hereafter party thereto (as amended, restated, modified, or supplemented from  time to time hereafter, the “Credit Agreement”), (ii) the Amended and Restated Pledge  Agreement dated as of [_____], 2020 (as amended, restated, modified, or supplemented from  time to time hereafter, the “Pledge Agreement”) which Pledgors issued to the Administrative  Agent, as the same may be amended, restated, supplemented or modified from time to time, and  (iii) the other Loan Documents referred to in the Credit Agreement, as the same may be amended, restated, supplemented or modified from time to time.  Agreement         Capitalized terms defined in the Credit Agreement or in the Pledge Agreement, as  applicable, are used herein as defined therein. In consideration of the New Pledgor becoming a  Pledgor under the terms of the Pledge Agreement and in consideration of the value of the  benefits received by New Pledgor as a result of owning or creating directly or indirectly any  Subsidiaries, the New Pledgor hereby agrees that effective as of the date hereof it hereby is, and  shall be deemed to be, a Pledgor under the Pledge Agreement and agrees that from the date  hereof until the Payment in Full of the Obligations, New Pledgor has assumed the obligations of  a “Pledgor” under, and New Pledgor shall perform, comply with and be subject to and bound by,  jointly and severally, each of the terms, provisions and waivers of the Pledge Agreement.  Without limiting the generality of the foregoing, the New Pledgor hereby represents and warrants  that (i) each of the representations and warranties set forth in the Pledge Agreement applicable to  New Pledgor as a Pledgor is true and correct in all material respects as to New Pledgor on and as  of the date hereof, except to the extent such representations and warranties expressly relate to a  specific earlier date, in which case such representations and warranties shall be true and correct  in all material respects as of such earlier date, and (ii) New Pledgor has heretofore received a true  and correct copy of the Credit Agreement and the Pledge Agreement (including any  modifications thereof or supplements or waivers thereto) in effect on the date hereof.         New Pledgor hereby affirms and ratifies in favor of the Administrative Agent the Pledge  Agreement.         New Pledgor is simultaneously delivering to the Administrative Agent the following  documents, if applicable, together with this Pledgor Joinder as required under Section 8.2.10 of  the Credit Agreement and Section 9 of the Pledge Agreement:    {N0289348 2 }

 

      1. Certificate of formation;        2. Operating agreement;        3. Certificate of good standing in each state where New Pledgor is organized or          qualified to do business;        4. All consents required in connection with the transactions contemplated by this Pledge          Joinder and the Pledge Agreement, in a form reasonably satisfactory to the          Administrative Agent and its counsel; and        5. Updated Schedules to the Pledge Agreement. [Note: updates to schedules do not cure          any breach of warranties].                                                                       Not                                                   Delivered        Delivered   Pledge         Schedule A – Description of Pledged                      Collateral         In furtherance of the foregoing, New Pledgor shall execute and deliver or cause to be  executed and delivered at any time and from time to time such further instruments and  documents and do or cause to be done such further acts as may be reasonably necessary in the  reasonable opinion of Administrative Agent to carry out more effectively the provisions and  purposes of this Pledge Joinder.                    The remainder of this page is left blank intentionally.                            Signatures follow on next page.    {N0289348 2 }

 

      IN WITNESS WHEREOF, and intending to be legally bound hereby, the New Pledgor  has duly executed this Pledgor Joinder and Assumption Agreement and delivered the same to the  Administrative Agent, as of the date and year first above written.                                             [                                  ]                                             By:                                            Name:                                            Title:    Acknowledged and accepted:   FIRST NATIONAL BANK OF PENNSYLVANIA   By:  Name:  Title:    {N0289348 2 }

 

                                EXHIBIT 1.1(S)                                    FORM OF               AMENDED AND RESTATED SECURITY AGREEMENT         THIS AMENDED AND RESTATED SECURITY AGREEMENT, dated as of [_____],  2020 (as amended, restated, supplemented or modified from time to time, the “Agreement”), is  entered into by and among DLH HOLDINGS CORP., a New Jersey corporation (“Holdings”),  and each of the Loan Parties (as hereinafter defined) (together with Holdings, each a “Debtor”  and collectively the “Debtors”), and FIRST NATIONAL BANK OF PENNSYLVANIA, in its  capacity as Administrative Agent (the “Administrative Agent”) for the LENDERS (as hereinafter  defined).   WITNESSETH THAT:         WHEREAS, reference is made to that certain Credit Agreement, dated June 7, 2019, by  and among certain of the Debtors, as borrowers, and the other guarantors party thereto, the  lenders party thereto and the Administrative Agent (the “Existing Credit Agreement”);         WHEREAS, simultaneously with the execution and delivery of the Existing Credit  Agreement, Holdings, DLH Solutions, Inc., a Georgia corporation, Danya International LLC, a  Maryland limited liability company, Social & Scientific Systems, Inc., a Delaware corporation  (collectively, the “Original Debtors”) and the Administrative Agent entered into that certain  Security Agreement, dated as of June 7, 2019 (the “Existing Security Agreement”) whereby the  Debtors secured their obligations and the obligations of the Loan Parties to the Administrative  Agent and the Lenders under the Existing Credit Agreement as otherwise as more fully described  therein in the manner set forth therein;         WHEREAS, the Debtors are (or will be with respect to after-acquired property) the legal  and beneficial owners and the holders of the Collateral (as defined in Section 1 hereof);          WHEREAS, pursuant to that certain Amended and Restated Credit Agreement (as it may  hereafter from time to time be restated, amended, modified or supplemented, the “Credit  Agreement”) of even date herewith by and among the Administrative Agent, the “Lenders” (as  defined in the Credit Agreement) now or hereafter party thereto, each of the “Guarantors” (as  defined in the Credit Agreement) now or hereafter party thereto, Holdings, and the other  “Borrowers” (as defined in the Credit Agreement) now or hereafter party thereto, the  Administrative Agent and the Lenders have agreed to amend and restate the Existing Credit  Agreement to provide certain loans and to make certain other financial accommodations to the  Loan Parties; and         WHEREAS, pursuant to and in consideration of the Credit Agreement, the Debtors have  agreed, among other things, to amend and restate the Existing Security Agreement and secure  their obligations and the obligations of the Loan Parties to the Administrative Agent and the  Lenders under the Credit Agreement, the other Loan Documents and otherwise as more fully  described herein in the manner set forth herein.    {N0289348 2 }

 

      NOW, THEREFORE, intending to be legally bound hereby, the parties hereto covenant  and agree as follows:         1.    The foregoing recitals are hereby incorporated by reference into this Agreement. Terms which are defined in the Credit Agreement and not otherwise defined herein are  used  herein as defined therein and the rules of construction set forth in Sections 1.1 and 1.2 of the  Credit Agreement shall apply to this Agreement.  The following words and terms shall have the  following meanings, respectively, unless the context hereof otherwise clearly requires:         (a)   “Code” means the Uniform Commercial Code as in effect in the State of Maryland on the date hereof and as amended from time to time except to the extent that the  conflict of law rules of such Uniform Commercial Code shall apply the Uniform Commercial  Code as in effect from time to time in any other state to specific property or other matters.         (b)   “Collateral” means all of any Debtor’s right, title and interest in, to and under all assets of the Debtors’ including, the following described property of such Debtor (each  capitalized term used in this Section 1(b) shall have in this Agreement the meaning given to it  by the Code):               (i)   all now existing and hereafter acquired or arising Accounts (including, without limitation, Eligible Billed Accounts Receivable, Eligible Billed Commercial Accounts  Receivable, Eligible Billed Government Accounts Receivable, Eligible Unbilled Accounts  Receivable and Ineligible Receivables), Goods, Health Care Insurance Receivables, General  Intangibles, Payment Intangibles, Deposit Accounts, Chattel Paper (including Electronic Chattel  Paper), Documents, Instruments, Software, Investment Property, Letters of Credit, Letter of  Credit Rights, advices of credit, money, Commercial Tort Claims as listed on Schedule B hereto  (as such Schedule is amended or supplemented from time to time), Equipment, and Inventory,  Fixtures and Supporting Obligations, together with all products of and Accessions to any of the  foregoing and all Proceeds of any of the foregoing (including all insurance policies and  proceeds thereof);               (ii)  to the extent, if any, not included in clause (i) above, each and every other item of personal property and fixtures, whether now existing or hereafter arising or acquired,  including all licenses, contracts and agreements, and all collateral for the payment or  performance of any contract or agreement, together with all products and Proceeds (including  all insurance policies and proceeds) of any Accessions to any of the foregoing; and               (iii) all present and future business records and information, including computer tapes and other storage media containing the same and computer programs and  software (including source code, object code and related manuals and documentation and all  licenses to use such software) for accessing and manipulating such information;   provided, however, that “Collateral” shall exclude the following:  (A)  intent to use trademark  applications; (B) Excluded Accounts; and (C) any property to the extent that the grant of a  security interest hereunder with respect to such property is prohibited by any Law, requires a  consent not obtained from any Official Body pursuant to such Law or is prohibited by, or  constitutes a breach or default under or results in the termination of, or gives rise to a right on the    {N0289348 2 }

 

   part of the parties thereto, other than Holdings or any Debtor, to terminate or requires any  consent not obtained under, any contract, license, agreement, instrument or other document  evidencing or giving rise to such property or, in the case of any Collateral listed on Schedule A  to the Pledge Agreement, any applicable shareholder or similar agreement, except to the extent  such Law or the term in such contract, license, agreement, instrument or other document or  shareholder or similar agreement providing for such prohibition, breach, default or right of  termination or requiring such consent is ineffective under applicable law; provided, however,  that notwithstanding the foregoing clause (C), the Collateral shall include (and such security  interest shall attach) immediately at such time as such a prohibition, breach, default or right of  termination or requiring such consent shall no longer be applicable and, to the extent severable,  shall attach immediately to any portion of such property or contract, license, agreement,  instrument or other document or shareholder or similar agreement not subject to such a  prohibition, breach, default or right of termination or requiring such consent specified in this  paragraph.         (c)   “Excluded Accounts” means any accounts used for payroll, payroll taxes or other  employee benefits.         (d)   “Receivables” means all of the Collateral except Equipment and Inventory.         (e)   “Secured Obligations” shall mean and include the following:  (i) all Obligations,  including all now existing and hereafter arising Obligations of each and every Debtor to the  Administrative Agent, the Lenders or any provider of any Lender Provided Interest Rate Hedge  or any Other Lender Provided Financial Service Products in connection with or under the Credit  Agreement, under any of the other Loan Documents, or under any Lender Provided Interest  Rate Hedge or Other Lender Provided Financial Service Products, including all obligations,  liabilities, and indebtedness, whether for principal, interest, fees, expenses or otherwise, of each  and every Debtor to the Administrative Agent, the Lenders, or any such providers, now existing  or hereafter incurred under the Credit Agreement or the Notes or the Guaranty Agreement or  any of the other Loan Documents or any such Lender Provided Interest Rate Hedge or Other  Lender Provided Financial Service Products as any of the same or any one or more of them may  from time to time be amended, restated, modified, or supplemented, together with any and all  extensions, renewals, refinancings, and refundings thereof in whole or in part (and including  obligations, liabilities, and indebtedness arising or accruing after the commencement of any  bankruptcy, insolvency, reorganization, or similar proceeding with respect to Holdings or which  would have arisen or accrued but for the commencement of such proceeding, even if the claim  for such obligation, liability or indebtedness is not enforceable or allowable in such proceeding,  and including all obligations, liabilities and indebtedness arising from any extensions of credit  under or in connection with the Loan Documents from time to time, regardless whether any  such extensions of credit are in excess of the amount committed under or contemplated by the  Loan Documents or are made in circumstances in which any condition to extension of credit is  not satisfied); (ii) all reimbursement obligations of each and every Debtor with respect to any  one or more Letters of Credit issued by the Issuing Lender or any other Lender; (iii) all  indebtedness, loans, obligations, expenses and liabilities of each and every Debtor to the  Administrative Agent, Issuing Lender or any of the Lenders, or any provider of any Lender  Provided Interest Rate Hedge or Other Lender Provided Financial Service Products, pursuant to  or in connection with the Credit Agreement; and (iv) any sums advanced by the Administrative    {N0289348 2 }                        

 

   Agent, the Issuing Lender or any other Lender or which may otherwise become due pursuant to  the provisions of the Credit Agreement, the Notes, this Agreement, or any other Loan  Documents or pursuant to any other agreement, letter, document or instrument at any time  delivered to the Administrative Agent in connection therewith, including commitment, letter of  credit, agent or other fees and charges, and indemnification obligations under any such  agreement, document or instrument, together with all interest payable on any of the foregoing,  whether such sums are advanced or otherwise become due before or after the entry of any  judgment for foreclosure or any judgment on any Loan Document or with respect to any default   under any of the Secured Obligations.         2.    As security for the due and punctual payment and performance of the Secured  Obligations in full, each Debtor hereby agrees that the Administrative Agent and the Lenders  and any provider of any Lender Provided Interest Rate Hedge or any Other Lender Provided  Financial Service Products shall have, and each Original Debtor hereby reconfirms its grant  under the Existing Security Agreement and grants anew to and Irving Burton Associates LLC,  hereby grants to and creates in favor of the Administrative Agent for the benefit of itself, the  Lenders and any such provider, a continuing first priority lien on and security interest under the  Code in and to the Collateral subject only to Permitted Liens.  Without limiting the generality of  Section 4 below, each Debtor further agrees that with respect to each item of Collateral as to  which (i) the creation of a valid and enforceable security interest is not governed exclusively by  the Code or (ii) the perfection of a valid and enforceable first priority security interest therein  under the Code cannot be accomplished either by the Administrative Agent taking possession  thereof or by the filing in appropriate locations of appropriate Code financing statements  executed by such Debtor, such Debtor will at its expense execute and deliver to the  Administrative Agent and hereby does authorize the Administrative Agent to execute and file  such documents, agreements, notices, assignments and instruments and take such further actions  as may be requested by the Administrative Agent from time to time for the purpose of creating a  valid and perfected first priority Lien on such item, subject only to Permitted Liens, enforceable  against such Debtor and all third parties to secure the Secured Obligations.         3.    Each Debtor represents and warrants to the Administrative Agent and the Lenders  that (a) such Debtor has good and marketable title to its Collateral, (b) except for the security  interest granted to and created in favor of the Administrative Agent for the benefit of itself and  the Lenders hereunder and Permitted Liens, all the Collateral is free and clear of any Lien, (c)  each Debtor will defend the Collateral against all claims and demands of all persons at any time  claiming the same or any interest therein, (d) each Account is genuine and enforceable in  accordance with its terms and such Debtor will defend the same against all claims, demands,  recoupment, setoffs, and counterclaims at any time asserted, (e) at the time any Account  becomes subject to this Agreement each such Account will be a good and valid Account  representing a bona fide sale of goods or services by such Debtor and such goods will have been  shipped to the respective account debtors or the services will have been performed for the  respective account debtors (or for those on behalf of whom the account debtors are obligated on  the Accounts) and no such Account will at such time be subject to any claim for credit,  allowance, setoff, recoupment, defense, counterclaim or adjustment by any account debtor or  otherwise, (f) the exact legal name of the Debtor is as set forth on the signature page hereto, (g)  the state of incorporation, formation or organization as applicable, of such Debtor is as set forth  on Schedule A hereto, (h) Schedule A hereto lists all promissory notes issued to or held by any    {N0289348 2 }                        

 

   Debtor (other than promissory notes issued in connection with extensions of trade credit by any  Debtor in the ordinary course of business) (such promissory notes listed, or required to be listed,  on Schedule A, the “Pledged Notes”), which such Pledged Notes constitute (or, solely with  respect to Pledged Notes issued by a Person other than a Debtor, to such Debtor’s knowledge  constitute) the legal, valid and binding obligation of the obligor with respect thereto,  enforceable in accordance with their respective terms, subject to the effects of bankruptcy,  insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating  to or affecting creditors’ rights generally, general equitable principles (whether considered in a  proceeding in equity or at Law) and an implied covenant of good faith and fair dealing, and (i)  no consent, approval, exemption, order or authorization of, or a registration or filing with, any  Official Body or any other Person is required by any Law or any agreement in connection with  the execution, delivery and carrying out of this Agreement and the other Loan Documents or  after the consummation of the Acquisition except as expressly set forth in the Loan Documents.           4.    Each Debtor will faithfully preserve and protect the Administrative Agent’s  security interest in the Collateral as a prior perfected security interest under the Code, superior  and prior to the rights of all other Persons, except for holders of Permitted Liens, and will do all  such other acts and things and will, upon request therefor by the Administrative Agent, execute,  deliver, file and record, and each Debtor hereby authorizes the Administrative Agent to so file,  all such other documents and instruments, including financing statements, security agreements,  assignments and documents and powers of attorney with respect to the Collateral, and pay all  filing fees and taxes related thereto, as the Administrative Agent in its discretion may deem  necessary or advisable from time to time in order to attach, continue, preserve, perfect, and  protect said security interest (including the filing at any time or times after the date hereof of  financing statements under, and in the locations advisable pursuant to, the Code); and each  Debtor hereby irrevocably appoints the Administrative Agent, its officers, employees and  agents, and each of them individually, as attorneys-in-fact for such Debtor to execute, deliver,  file and record such items for such Debtor and in such Debtor’s name, place and stead.  This  power of attorney, being coupled with an interest, shall be irrevocable for the life of this  Agreement.           5.   Each Debtor jointly and severally covenants and agrees that:         (a)   it will defend the Administrative Agent’s and each Lenders’ right, title and lien  on and security interest in and to the Collateral and the proceeds thereof against the claims and  demands of all Persons whomsoever, other than any Person claiming a right in the Collateral  pursuant to an agreement between such Person and the Administrative Agent;         (b)   it will not suffer or permit to exist on any Collateral any Lien except for  Permitted Liens;         (c)   it will not take or omit to take any action, the taking or the omission of which  might result in a material alteration (except as permitted by the Credit Agreement) or  impairment of the Collateral or of the Administrative Agent’s rights under this Agreement;         (d)   it will not sell, assign or otherwise dispose of any portion of the Collateral except  as permitted in Section 8.2.8 [Dispositions of Assets or Subsidiaries] of the Credit Agreement;    {N0289348 2 }                        

 

         (e)   it will (i) except for such Collateral delivered to the Administrative Agent  pursuant to this Section 5 or otherwise now or hereafter under the control of the Administrative  Agent, obtain and maintain sole and exclusive possession of the Collateral, (ii) maintain its  chief executive office and keep the Collateral and all records pertaining thereto at the locations  specified on the Security Interest Data Summary attached as Schedule A hereto, unless it shall  have given the Administrative Agent prior notice and taken any action reasonably requested by  the Administrative Agent to maintain its security interest therein, (iii) notify the Administrative  Agent if an Account becomes evidenced or secured by an Instrument or Chattel Paper and  deliver to the Administrative Agent upon the Administrative Agent’s request therefor all  Collateral consisting of Instruments and Chattel Paper immediately upon such Debtor’s receipt  of a request therefor, (iv) deliver to the Administrative Agent possession of all Collateral the  possession of which is required to perfect the Administrative Agent’s lien thereon or security  interest therein or the possession of which grants priority over a Person filing a financing  statement with respect thereto, including the Pledged Notes, (v) execute control agreements and  cause other Persons to execute acknowledgments in form and substance satisfactory to the agent  evidencing the Administrative Agent’s control with respect to all Collateral the control or  acknowledgment of which perfects the Administrative Agent’s security interest therein,  including Letters of Credit, Letter of Credit Rights, Electronic Chattel Paper, Deposit Accounts  and Investment Property, and (vi) keep materially accurate and complete books and records  concerning the Collateral and such other books and records as the Administrative Agent may  from time to time reasonably require;         (f)   it will promptly furnish to the Administrative Agent such information and  documents relating to the Collateral as the Administrative Agent may reasonably request,  including all invoices, Documents, contracts, Chattel Paper, Instruments and other writings  pertaining to such Debtor’s contracts or the performance thereof, all of the foregoing to be  certified upon request of the Administrative Agent by an authorized officer of such Debtor;          (g)   it shall promptly notify the Administrative Agent if any Account arises out of  contracts with the United States or any department, agency or instrumentality thereof or any one  or more of the states of the United States, or the District of Columbia, or any department,  agency, or instrumentality thereof, and will execute any instruments and take any steps required  by the Administrative Agent so that all monies due and to become due under such contract shall  be assigned to the Administrative Agent and notice of the assignment given to and  acknowledged by the appropriate government agency or authority under the Federal  Assignment of Claims Act or comparable state or District of Columbia Law;         (h)   it shall, from time to time, at its expense, faithfully preserve and protect the  Administrative Agent's Lien on and Prior Security Interest in the Collateral and all other  personal property of the Loan Parties which under the terms of this Agreement is required to be  Collateral, whether now owned or hereafter acquired, as a continuing first priority perfected  Lien, subject only to Permitted Liens, and shall do such other acts and things as the  Administrative Agent in its sole discretion may deem necessary or advisable from time to time  in order to preserve, perfect and protect the Liens granted under the Loan Documents and to  exercise and enforce its rights and remedies thereunder with respect to the Collateral.  In  addition to the foregoing, within ten (10) days of the Administrative Agent's request, each Loan  Party shall execute and deliver to the Administrative Agent all documents or materials of any    {N0289348 2 }                        

 

   Loan Party necessary or appropriate in order to comply with the Assignment of Claims Act (the  "Government Contract Assignments") in connection with each Government Contract which is  required to be assigned to the Administrative Agent by the Administrative Agent.  All costs and  expenses incurred in connection with the Government Contract Assignments shall be borne  solely by the Debtors;         (i)   such Debtor will not change its state of incorporation, formation or organization,  as applicable, without providing thirty (30) days prior written notice to the Administrative  Agent;         (j)   such Debtor will not change its name without providing thirty (30) days prior  written notice to the Administrative Agent;         (k)   such Debtor shall preserve its corporate, limited liability company or partnership  (as the case may be) existence and, except as permitted by the Credit Agreement, shall not (i) in  one transaction, or a series of related transactions, merge into or consolidate with any other  entity, the survivor of which is not such Debtor, or (ii) sell all or substantially all of its assets;         (l)   if any Debtor shall at any time acquire a commercial tort claim, as defined in the  Code, such Debtor shall immediately notify the Administrative Agent in a writing signed by  such Debtor of the details thereof and grant to the Administrative Agent for the benefit of the  Lenders in such writing a security interest therein and in the proceeds thereof, with such writing  to be in form and substance satisfactory to the Administrative Agent and such writing shall  constitute a supplement to Schedule B hereto;         (m)   each Debtor hereby authorizes the Administrative Agent to, at any time and from  time to time, file in any one or more jurisdictions financing statements that describe the  Collateral as “all assets” or “all personal property”, together with continuation statements  thereof and amendments thereto, without the signature of such Debtor and which contain any  information required by the Code or any other applicable statute applicable to such jurisdiction  for the sufficiency of filing office acceptance of any financing statements, continuation  statements, or amendments.  Each Debtor agrees to furnish any such information to the  Administrative Agent promptly upon request.  Any such financing statements, continuation  statements or amendments may be signed by Administrative Agent on behalf of such Debtor if  the Administrative Agent so elects and may be filed at any time in any jurisdiction; and         (n)   such Debtor shall at any time and from time to time promptly take such steps as  the Administrative Agent may reasonably request as are necessary for the Administrative Agent  to insure the continued perfection of the Administrative Agent’s and the Lenders’ security  interest in the Collateral with the same priority required hereby and the preservation of its rights  therein.         6.    Each Debtor assumes full responsibility for taking any and all necessary steps to  preserve the Administrative Agent’s and the Lenders’ rights with respect to the Collateral  against all Persons other than anyone asserting rights in respect of a Permitted Lien.  The  Administrative Agent shall be deemed to have exercised reasonable care in the custody and  preservation of the Collateral in its possession if the Administrative Agent takes such action for    {N0289348 2 }                        

 

   that purpose as such Debtor shall reasonably request in writing, provided that such requested  action will not, in the judgment of the Administrative Agent, impair the security interest in the  Collateral created hereby or the Administrative Agent’s and the Lenders’ rights in, or the value  of, the Collateral, and provided further that such written request is received by the  Administrative Agent in sufficient time to permit the Administrative Agent to take the requested  action.         7.    The pledge, security interests, and other Liens and the obligations of each Debtor  hereunder shall not be discharged or impaired or otherwise diminished by any failure, default,  omission, or delay, willful or otherwise, by Administrative Agent, or any other obligor on any  of the Secured Obligations, or by any other act or thing or omission or delay to do any other act  or thing which may or might in any manner or to any extent vary the risk of such Debtor or  which would otherwise operate as a discharge of such Debtor as a matter of law or equity.   Without limiting the generality of the foregoing, each Debtor hereby consents to, and the  pledge, security interests, and other Liens given by such Debtor hereunder shall not be  diminished, terminated, or otherwise similarly affected by any of the following at any time and  from time to time:         (a)   Any lack of genuineness, legality, validity, enforceability, or allowability (in a  bankruptcy, insolvency, reorganization or similar proceeding, or otherwise), or any avoidance  or subordination, in whole or in part, of any Loan Document, any obligations in connection with  any Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service  Products, or any of the Secured Obligations and regardless of any Law, regulation, or order now  or hereafter in effect in any jurisdiction affecting any of the Secured Obligations, any of the  terms of the Loan Documents, or any rights of the Administrative Agent or any other Person  with respect thereto;         (b)   Any increase, decrease, or change in the amount, nature, type or purpose of any  of or any release, surrender, exchange, compromise or settlement of any of the Secured  Obligations (whether or not contemplated by the Loan Documents as presently constituted); any  change in the time, manner, method, or place of payment or performance of, or in any other  term of, any of the Secured Obligations; any execution or delivery of any additional Loan  Documents; or any amendment, modification or supplement to, or refinancing or refunding of,  any Loan Document, any Lender Provided Interest Rate Hedge or any Other Lender Provided  Financial Service Products, or any of the Secured Obligations;         (c)   Any failure to assert any breach of or default under any Loan Document, any  Lender Provided Interest Rate Hedge or any Other Lender Provided Financial Service Products,  or any of the Secured Obligations; any extensions of credit in excess of the amount committed  under or contemplated by the Loan Documents or any Lender Provided Interest Rate Hedge or  any Other Lender Provided Financial Service Products, or in circumstances in which any  condition to such extensions of credit has not been satisfied; any other exercise or non-exercise,  or any other failure, omission, breach, default, delay, or wrongful action in connection with any  exercise or non-exercise, of any right or remedy against such Debtor or any other Person under  or in connection with any Loan Document or any Lender Provided Interest Rate Hedge or any  Other Lender Provided Financial Service Products, or any of the Secured Obligations; any  refusal of payment or performance of any of the Secured Obligations, whether or not with any    {N0289348 2 }                        

 

   reservation of rights against any Debtor; or any application of collections (including collections  resulting from realization upon any direct or indirect security for the Secured Obligations) to  other obligations, if any, not entitled to the benefits of this Agreement, in preference to Secured  Obligations or, if any collections are applied to Secured Obligations, any application to  particular Secured Obligations;         (d)   Any taking, exchange, amendment, modification, supplement, termination,  subordination, release, loss, or impairment of, or any failure to protect, perfect, or preserve the  value of, or any enforcement of, realization upon, or exercise of rights or remedies under or in  connection with, or any failure, omission, breach, default, delay, or wrongful action by the  Administrative Agent or any other Person in connection with the enforcement of, realization  upon, or exercise of rights or remedies under or in connection with, or, any other action or  inaction by Administrative Agent or any other Person in respect of, any direct or indirect  security for any of the Secured Obligations (including the Collateral).  As used in this  Agreement, “direct or indirect security” for the Secured Obligations, and similar phrases,  includes any collateral security, guaranty, suretyship, letter of credit, capital maintenance  agreement, put option, subordination agreement, or other right or arrangement of any nature  providing direct or indirect assurance of payment or performance of any of the Secured  Obligations, made by or on behalf of any Person;         (e)   Any merger, consolidation, liquidation, dissolution, winding-up, charter  revocation, or forfeiture, or other change in, restructuring or termination of the corporate  structure or existence of, any Debtor or Holdings or any other Person; any bankruptcy,  insolvency, reorganization or similar proceeding with respect to any Debtor or Holdings or any  other Person; or any action taken or election (including any election under Section 1111(b)(2) of  the United States Bankruptcy Code or any comparable Law of any jurisdiction) made by  Administrative Agent or any Debtor or Holdings or by any other Person in connection with any  such proceeding;         (f)   Any defense, setoff, or counterclaim which may at any time be available to or be  asserted by any Debtor or Holdings or any other Person with respect to any Loan Document or  any of the Secured Obligations; or any discharge by operation of Law or release of any Debtor  or Holdings or any other Person from the performance or observance of any Loan Document or  any of the Secured Obligations; and         (g)   Any other event or circumstance, whether similar or dissimilar to any of the  foregoing, and whether known or unknown, which might otherwise constitute a defense  available to, or limit the liability of a guarantor or a surety, including any Debtor, excepting  only full, strict, and indefeasible payment and performance of the Secured Obligations in full.         8.    Each Debtor hereby waives any and all defenses which any Debtor may now or  hereafter have based on principles of suretyship, impairment of collateral, or the like and each  Debtor hereby waives any defense to or limitation on its obligations under this Agreement  arising out of or based on any event or circumstance referred to in the immediately preceding  section hereof.  Without limiting the generality of the foregoing and to the fullest extent  permitted by applicable Law, each Debtor hereby further waives each of the following:    {N0289348 2 }                        

 

         (a)   All notices, disclosures and demands of any nature which otherwise might be  required from time to time to preserve intact any rights against such Debtor, including the  following:  any notice of any event or circumstance described in the immediately preceding  section hereof; any notice required by any Law, regulation or order now or hereafter in effect in  any jurisdiction; any notice of nonpayment, nonperformance, dishonor, or protest under any  Loan Document, under any Lender Provided Interest Rate Hedge, or under any Other Lender  Provided Financial Service Products or any of the Secured Obligations; any notice of the  incurrence of any Secured Obligations; any notice of any default or any failure on the part of  such Debtor or Holdings or any other Person to comply with any Loan Document, any Lender  Provided Interest Rate Hedge or any Other Lender Provided Financial Service Products, or any  of the Secured Obligations or any requirement pertaining to any direct or indirect security for  any of the Secured Obligations; and any notice or other information pertaining to the business,  operations, condition (financial or otherwise), or prospects of Holdings or any other Person;         (b)   Any right to any marshalling of assets, to the filing of any claim against such  Debtor or Holdings or any other Person in the event of any bankruptcy, insolvency,  reorganization, or similar proceeding, or to the exercise against such Debtor or Holdings, or any  other Person of any other right or remedy under or in connection with any Loan Document, any  Lender Provided Interest Rate Hedge, or any Other Lender Provided Financial Service Products  or any of the Secured Obligations or any direct or indirect security for any of the Secured  Obligations; any requirement of promptness or diligence on the part of the Administrative  Agent or any other Person; any requirement to exhaust any remedies under or in connection  with, or to mitigate the damages resulting from default under, any Loan Document or any of the  Secured Obligations or any direct or indirect security for any of the Secured Obligations; any  benefit of any statute of limitations; and any requirement of acceptance of this Agreement or  any other Loan Document, and any requirement that any Debtor receive notice of any such  acceptance; and         (c)   Any defense or other right arising by reason of any Law now or hereafter in  effect in any jurisdiction pertaining to election of remedies (including anti-deficiency Laws,  “one action” Laws, or the like), or by reason of any election of remedies or other action or  inaction by the Administrative Agent (including commencement or completion of any judicial  proceeding or nonjudicial sale or other action in respect of collateral security for any of the  Secured Obligations), which results in denial or impairment of the right of the Administrative  Agent to seek a deficiency against Holdings or any other Person or which otherwise discharges  or impairs any of the Secured Obligations.         9.   The Obligations and additional liabilities of the Debtors under this Agreement are  joint and several obligations of the Debtors, and each Debtor hereby waives to the full extent  permitted by Law any defense it may otherwise have to the payment and performance of the  Obligations and such additional liabilities that its liability hereunder is limited and not joint and  several.  Each Debtor acknowledges and agrees that the foregoing waivers serve as a material  inducement to the agreement of the Administrative Agent and the Lenders to make the Loans,  and that the Administrative Agent and the Lenders are relying on each specific waiver and all  such waivers in entering into this Agreement.  The undertakings of each Debtor hereunder  secure the obligations of itself and the other Debtors.  The Administrative Agent and the  Lenders, or any of them, may, in their sole discretion, elect to enforce this Agreement against    {N0289348 2 }                        

 

   any Debtor without any duty or responsibility to pursue any other Debtor and such an election  by the Administrative Agent and the Lenders, or any of them, shall not be a defense to any  action the Administrative Agent and the Lenders, or any of them, may elect to take against any  Debtor.  Each of the Lenders and Administrative Agent hereby reserve all rights against each  Debtor.         10.   (a)   At any time and from time to time whether or not an Event of Default then  exists and without prior notice to or consent of any Debtor, the Administrative Agent may at its  option take such actions as the Administrative Agent deems appropriate (i) to attach, perfect,  continue, preserve and protect the Administrative Agent’s and the Lenders’ first priority  security interest in or lien on the Collateral, and/or (ii) subject to the limitations provided for in  the Credit Agreement, to inspect, audit and verify the Collateral, including reviewing all of such  Debtor’s books and records and copying and making excerpts therefrom, provided that prior to  an Event of Default or a Potential Default, the same is done with advance notice during normal  business hours to the extent access to such Debtor’s premises is required, and (iii) to add all  liabilities, obligations, costs and expenses reasonably incurred in connection with the foregoing  clauses (i) and (ii) to the Secured Obligations, to be paid by the Debtors or any Debtor to the  Administrative Agent for the benefit of the Administrative Agent and the Lenders upon  demand.         (b)   At any time and from time to time after an Event of Default exists and is  continuing and without prior notice to or consent of any Debtor, the Administrative Agent may  at its option take such actions as the Administrative Agent deems appropriate (i) to maintain,  repair, protect and insure the Collateral, and/or (ii) to perform, keep, observe and render true  and correct any and all covenants, agreements, representations and warranties of any Debtor  hereunder, and (iii) to add all liabilities, obligations, costs and expenses reasonably incurred in  connection with the foregoing clauses (i) and (ii) to the Secured Obligations, to be paid by the  Debtors or any Debtor to the Administrative Agent for the benefit of the Administrative Agent  and the Lenders upon demand.         11.   After there exists any Event of Default under the Credit Agreement:         (a)   The Administrative Agent shall have and may exercise all the rights and  remedies available to a secured party under the Code in effect at the time, and such other rights  and remedies as may be provided by Law and as set forth below, including to take over and  collect all of any Debtor’s Receivables and all other Collateral, and to this end each Debtor  hereby appoints the Administrative Agent, its officers, employees and agents, as its irrevocable,  true and lawful attorneys-in-fact with all necessary power and authority to (i) take possession  immediately, with or without notice, demand, or legal process, of any of or all of the Collateral  wherever found, and for such purposes, enter upon any premises upon which the Collateral may  be found and remove the Collateral therefrom, (ii) require any Debtor to assemble the Collateral  and deliver it to the Administrative Agent or to any place designated by the Administrative  Agent at such Debtor’s expense, (iii) receive, open and dispose of all mail addressed to any  Debtor and notify postal authorities to change the address for delivery thereof to such address as  the Administrative Agent may designate, (iv) demand payment of the Receivables, (v) enforce  payment of the Receivables by legal proceedings or otherwise, (vi) exercise all of any Debtor’s  rights and remedies with respect to the collection of the Receivables, (vii) settle, adjust,    {N0289348 2 }                        

 

   compromise, extend or renew the Receivables, (viii) settle, adjust or compromise any legal  proceedings brought to collect the Receivables, (ix) to the extent permitted by applicable Law,  sell or assign the Receivables upon such terms, for such amounts and at such time or times as  the Administrative Agent deems advisable, (x) discharge and release the Receivables, (xi) take  control, in any manner, of any item of payment or proceeds from any account debtor,  (xii) prepare, file and sign any Debtor’s name on any Proof of Claim in Bankruptcy or similar  document against any account debtor, (xiii) prepare, file and sign any Debtor’s name on any  notice of Lien, assignment or satisfaction of Lien or similar document in connection with the  Receivables, (xiv) do all acts and things necessary, in the Administrative Agent’s sole  discretion, to fulfill any of Holdings’ or any Debtor’s obligations to the Administrative Agent or  the Lenders under the Credit Agreement, Loan Documents or otherwise, (xv) endorse the name  of any Debtor upon any check, Chattel Paper, Document, Instrument, invoice, freight bill, bill of  lading or similar document or agreement relating to the Receivables or Inventory; (xvi) use any  Debtor’s stationery and sign such Debtor’s name to verifications of the Receivables and notices  thereof to account debtors; (xvii) access and use the information recorded on or contained in any  data processing equipment or computer hardware or software relating to the Receivables,  Inventory, or other Collateral or proceeds thereof to which any Debtor has access,  (xviii) demand, sue for, collect, compromise and give acquittances for any and all Collateral,  (xix) prosecute, defend or compromise any action, claim or proceeding with respect to any of  the Collateral, and (xx) take such other action as the Administrative Agent may deem  appropriate, including extending or modifying the terms of payment of any Debtor’s debtors.   This power of attorney, being coupled with an interest, shall be irrevocable for the life of this  Agreement.  To the extent permitted by Law, each Debtor hereby waives all claims of damages  due to or arising from or connected with any of the rights or remedies exercised by the  Administrative Agent pursuant to this Agreement, except claims for physical damage to the  Collateral arising from gross negligence or willful misconduct by the Administrative Agent.          (b)   The Administrative Agent shall have the right to lease, sell or otherwise dispose  of all or any of the Collateral at public or private sale or sales for cash, credit or any  combination thereof, with such notice as may be required by Law (it being agreed by each  Debtor that, in the absence of any contrary requirement of Law, ten (10) days’ prior notice of a  public or private sale of Collateral shall be deemed reasonable notice), in lots or in bulk, for  cash or on credit, all as the Administrative Agent, in its sole discretion, may deem advisable.   Such sales may be adjourned from time to time with or without notice.  The Administrative  Agent shall have the right to conduct such sales on any Debtor’s premises or elsewhere and  shall have the right to use any Debtor’s premises without charge for such sales for such time or  times as the Administrative Agent may see fit.  The Administrative Agent may purchase all or  any part of the Collateral at public or, if permitted by Law, private sale and, in lieu of actual  payment of such purchase price, may set off the amount of such price against the Secured  Obligations.         (c)   Each Debtor, at its cost and expense (including the cost and expense of any of  the following referenced consents, approvals, etc.) will promptly execute and deliver or cause  the execution and delivery of all applications, certificates, instruments, registration statements,  and all other documents and papers the Administrative Agent may request in connection with  the obtaining of any consent, approval, registration, qualification, permit, license, accreditation,  or authorization of any other Official Body or other Person necessary or appropriate for the    {N0289348 2 }                        

 

   effective exercise of any rights hereunder or under the other Loan Documents.  Without limiting  the generality of the foregoing, each Debtor agrees that in the event the Administrative Agent  on behalf of itself and/or the Lenders shall exercise its rights hereunder or pursuant to the other  Loan Documents, to sell, transfer, or otherwise dispose of, or vote, consent, operate, or take any  other action in connection with, any of the Collateral, such Debtor shall execute and deliver (or  cause to be executed and delivered) all applications, certificates, assignments and other  documents that the Administrative Agent requests to facilitate such actions and shall otherwise  promptly, fully, and diligently cooperate with the Administrative Agent and any other Persons  in making any application for the prior consent or approval of any Official Body or any other  Person to the exercise by the Administrative Agent on behalf of itself and/or the Lenders of any  such rights relating to all or any of the Collateral.  Furthermore, because each Debtor agrees that  the remedies at Law, of the Administrative Agent on behalf of itself and/or the Lenders, for  failure of such Debtor to comply with this Subsection (c) would be inadequate, and that any  such failure would not be adequately compensable in damages, each Debtor agrees that this  Subsection (c) may be specifically enforced.         (d)   The Administrative Agent may request, without limiting the rights and remedies  of the Administrative Agent on behalf of itself and the Lenders otherwise provided hereunder  and under the other Loan Documents, that each Debtor do any of the following: (i) give the  Administrative Agent on behalf of itself and the Lenders specific assignments of the accounts  receivable of such Debtor after such accounts receivable come into existence, and schedules of  such accounts receivable, the form and content of such assignment and schedules to be  satisfactory to Administrative Agent, and (ii) in order to better secure the Administrative Agent  on behalf of itself and the Lenders, to the extent permitted by Law, enter into such lockbox  agreements and establish such lockbox accounts as the Administrative Agent may require, all at  the sole expense of such Debtor and shall direct all payments from all payors due to such  Debtor, to such lockbox accounts.         12.   To the extent that applicable law imposes duties on Administrative Agent to  exercise remedies in a commercially reasonable manner, each Debtor acknowledges and agrees  that it is not commercially unreasonable for Administrative Agent (a) to fail to incur expenses  reasonably deemed significant by Administrative Agent to prepare Collateral for disposition or  otherwise to fail to complete raw material or work in process into finished goods or other  finished products for disposition, (b) to fail to obtain third party consents for access to Collateral  to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or  third party consents for the collection or disposition of Collateral to be collected or disposed of,  (c) to fail to exercise collection remedies against account debtors or other Persons obligated on  Collateral or to fail to remove liens or encumbrances on or any adverse claims against  Collateral, (d) to exercise collection remedies against account debtors and other Persons  obligated on Collateral directly or through the use of collection agencies and other collection  specialists, (e) to advertise dispositions of Collateral through publications or media of general  circulation, whether or not the Collateral is of a specialized nature, (f) to contact other Persons,  whether or not in the same business as any Debtor, for expressions of interest in acquiring all or  any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the  disposition of Collateral, whether or not the collateral is of a specialized nature, (h) to dispose of  Collateral by utilizing Internet sites that provide for the auction of assets of the types included in  the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers    {N0289348 2 }                        

 

   of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim  disposition warranties, (k) to purchase insurance or credit enhancements to insure  Administrative Agent against risks of loss, collection or disposition of Collateral or to provide  to Administrative Agent a guaranteed return from the collection or disposition of Collateral, or  (l) to the extent deemed appropriate by Administrative Agent, to obtain the services of other  brokers, investment bankers, consultants and other professionals to assist Administrative Agent  in the collection or disposition of any of the Collateral.  Each Debtor acknowledges that the  purpose of this Section 12 is to provide non-exhaustive indications of what actions or omissions  by Administrative Agent would fulfill Administrative Agent’s duties under the Code or the  Uniform Commercial Code of any other relevant jurisdiction in Administrative Agent’s exercise  of remedies against the Collateral and that other actions or omissions by Administrative Agent  shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this  Section 12.  Without limitation upon the foregoing, nothing contained in this Section 12 shall be  construed to grant any rights to any Debtor or to impose any duties on Administrative Agent  that would not have been granted or imposed by this Agreement or by applicable Law in the  absence of this Section 12.           13.   The lien on and security interest in each Debtor’s Collateral granted to and  created in favor of the Administrative Agent by this Agreement shall be for the benefit of the  Administrative Agent and the Lenders and any provider of any Lender Provided Interest Rate  Hedge or any Other Lender Provided Financial Service Products.  Each of the rights, privileges,  and remedies provided to the Administrative Agent hereunder or otherwise by Law with respect  to any Debtor’s Collateral shall be exercised by the Administrative Agent only for its own  benefit and the benefit of the Lenders, and any of such Debtor’s Collateral or proceeds thereof  held or realized upon at any time by the Administrative Agent shall be applied as set forth in  Section 9.2.4 [Application of Proceeds] of the Credit Agreement.  Each Debtor shall remain  liable to the Administrative Agent and the Lenders and any provider of any Lender Provided  Interest Rate Hedge or any Other Lender Provided Financial Service Products for and shall pay  to the Administrative Agent for the benefit of itself and the Lenders and any such provider any  deficiency which may remain after such sale or collection.         14.   Reserved.         15.   Upon indefeasible payment in full of the Secured Obligations, the expiration of all  Commitments and Letters of Credit, and termination of the Credit Agreement, this Agreement  shall terminate and be of no further force and effect, and the Administrative Agent shall  thereupon promptly return to a Debtor such of the Collateral and such other documents  delivered by such Debtor hereunder as may then be in the Administrative Agent’s possession,  subject to the rights of third parties.  Until such time, however, this Agreement shall be binding  upon and inure to the benefit of the parties hereto and their respective successors and permitted  assigns.         16.   No failure or delay on the part of the Administrative Agent in exercising any  right, remedy, power or privilege hereunder shall operate as a waiver thereof or of any other  right, remedy, power or privilege of the Administrative Agent hereunder; nor shall any single or  partial exercise of any such right, remedy, power or privilege preclude any other or further  exercise thereof or the exercise of any other right, remedy, power or privilege.  No waiver of a    {N0289348 2 }                        

 

   single Event of Default shall be deemed a waiver of a subsequent Event of Default.  All waivers  under this Agreement must be in writing.  The rights and remedies of the Administrative Agent  under this Agreement are cumulative and in addition to any rights or remedies which it may  otherwise have, and the Administrative Agent may enforce any one or more remedies hereunder  successively or concurrently at its option.         17.   All notices, statements, requests and demands given to or made upon either party  hereto in accordance with the provisions of this Agreement shall be given or made as provided  in Section 12.5 [Notices; Effectiveness; Electronic Communication] of the Credit Agreement.         18.   Each Debtor agrees that as of the date hereof, all information contained on the  Security Interest Data Schedule attached hereto as Schedule A is accurate and complete and  contains no omission or misrepresentation.  Each Debtor shall promptly notify the  Administrative Agent of any changes in the information set forth thereon.         19.   Each Debtor acknowledges that the provisions hereof giving the Administrative  Agent rights of access to books, records and information concerning the Collateral and such  Debtor’s operations and providing the Administrative Agent access to such Debtor’s premises  are intended to afford the Administrative Agent with immediate access to current information  concerning such Debtor and its activities, including the value, nature and location of the  Collateral so that the Administrative Agent can, among other things, make an appropriate  determination after the occurrence of an Event of Default, whether and when to exercise its  other remedies hereunder and at Law, including instituting a replevin action should any Debtor  refuse to turn over any Collateral to the Administrative Agent.  Each Debtor further  acknowledges that should such Debtor at any time fail to promptly provide such information  and access to the Administrative Agent, each Debtor acknowledges that the Administrative  Agent would have no adequate remedy at Law to promptly obtain the same.  Each Debtor  agrees that the provisions hereof may be specifically enforced by the Administrative Agent and  waives any claim or defense in any such action or proceeding that the Administrative Agent has  an adequate remedy at Law.         20.  This Agreement is subject to modification only by a writing signed by the parties.   This Agreement shall be binding upon and inure to the benefit of the Administrative Agent, the  Lenders and their respective successors and assigns, and each Debtor and each of its respective  successors and assigns, except that no Debtor may assign or transfer such Debtor’s rights or  obligations hereunder or any interest herein and any such purported assignment or transfer shall  be null and void.         21.  The terms of Section 12.11 [Choice of Law; Submission to Jurisdiction; Waiver  of Venue; Service of Process; Waiver of Jury Trial] of the Credit Agreement with respect to  governing law, submission to jurisdiction, venue, service of process and waiver of jury trial are  incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.         22.  Any provision of this Agreement which is prohibited or unenforceable in any  jurisdiction shall not invalidate 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.    {N0289348 2 }                        

 

         23.   This Agreement and the Pledge Agreement (to the extent any of the Collateral is  included in the Pledged Collateral as defined in the Pledge Agreement) constitute the entire  agreement between the parties with respect to the subject matter hereof and supersedes all prior  agreements relating to a grant of a security interest in the Collateral by any Debtor.           24.   This 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 an  original, but all such counterparts shall constitute one and the same instrument.  Each Debtor  acknowledges and agrees that a telecopy transmission to the Administrative Agent or any  Lender of, or the e-mail delivery of a portable document format (PDF) file to the Administrative  Agent or any Lender containing, the signature pages hereof purporting to be signed on behalf of  any Debtor shall constitute effective and binding execution and delivery hereof by such Debtor.                           [SIGNATURE PAGES FOLLOW]                                              {N0289348 2 }                        

 

         IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized,  have executed and delivered this Agreement as of the day and year first above set forth.                                                                                         DEBTORS:                                                                                        DLH HOLDINGS CORP.                                                                                        By:                                                                             Name:                                            Title:                                                                                                                                    DLH SOLUTIONS, INC.                                                                                        By:                                                                             Name:                                            Title                                                                                                                                    DANYA INTERNATIONAL, LLC                                                                                                                                    By:                                                                             Name:                                            Title:                                                                                                                                    SOCIAL & SCIENTIFIC SYSTEMS, INC.                                                                                        By:                                                                             Name:                                            Title:                                                                                                                                    IRVING BURTON ASSOCIATES, LLC                                            By:                                                                             Name:                                            Title:                                              ADMINISTRATIVE AGENT:                                            FIRST NATIONAL BANK OF                                            PENNSYLVANIA, as Administrative Agent                                                                                        By:                                                                             Name:                                            Title:    {N0289348 2 }                 Schedule A-21 

 

                                     SCHEDULE A                                        TO                              SECURITY AGREEMENT                       SECURITY INTEREST DATA SUMMARY    1.    The chief executive office of each Debtor is located at:          Debtor                                 Address of Chief Executive Office          DLH Holdings Corp.                     3565 Piedmont Road, N.E.                                                Building 3 - Suite 700                                                Atlanta, Georgia 30305                                                Fulton County          DLH Solutions, Inc.                    3565 Piedmont Road, N.E.                                                Building 3 - Suite 700                                                Atlanta, Georgia 30305                                                Fulton County           Danya International LLC                3565 Piedmont Road, N.E.                                                Building 3 - Suite 700                                                Atlanta, Georgia 30305                                                Fulton County          Social and Scientific Systems, Inc.    3565 Piedmont Road, N.E.                                                Building 3 - Suite 700                                                Atlanta, Georgia 30305                                                Fulton County           Irving Burton Associates, LLC, formerly 3130 Fairview Park Drive         Irving Burton Associates, Inc.         Falls Church, Virginia 22402    2.    Each Debtor’s true and full name is as follows:               DLH Holdings Corp.              DLH Solutions, Inc.              Danya International LLC              Social & Scientific Systems, Inc.              Irving Burton Associates, LLC    Each Debtor uses no trade names or fictitious names.    3.    Each Debtor’s form of organization is as follows:          Debtor                                    Form of Organization          DLH Holdings Corp.                        Corporation    {N0289348 2 }                 Schedule A-22   49857330 

 

         DLH Solutions, Inc.                       Corporation         Danya International LLC                   Limited Liability Company         Social & Scientific Systems, Inc.       Corporation         Irving Burton Associates, LLC           Limited Liability Company   4.    Each Debtor’s state of organization is as follows:         Debtor                                    State of Incorporation /                                                  Organization          DLH Holdings Corp.                        New Jersey         DLH Solutions, Inc.                       Georgia         Danya International LLC                   Maryland         Social & Scientific Systems, Inc.         Delaware         Irving Burton Associates, LLC             Virginia    5.    Each Debtor’s EIN # is as follows:         Debtor                                    EIN         DLH Holdings Corp.                                  DLH Solutions, Inc.                                 Danya International LLC                             Social & Scientific Systems, Inc.                   Irving Burton Associates, LLC                 6.    Each Debtor’s organization ID # is (if any exists) is as follows:         Debtor                                    ID #         DLH Holdings Corp.                                 DLH Solutions, Inc.                                Danya International LLC                            Social & Scientific Systems, Inc.             {N0289348 2 }                 Schedule A-23  49857330 

 

         Irving Burton Associates, LLC                        7.    All of each Debtor’s personal property which has not been delivered to the  Administrative Agent pursuant to the terms of this Agreement or the Credit Agreement is now,  and will be at all future times, located at such Debtor’s chief executive office as described in  Paragraph 1 above, except as specified below:         Debtor                                    Address(es)         DLH Holdings Corp.                                 DLH Solutions, Inc.                                Danya International LLC                            Social & Scientific Systems, Inc.                   Irving Burton Associates                                    8.    All of each Debtor’s books and records, including those relating to accounts payable  and accounts receivable, are kept at such Debtor’s chief executive office as described in  Paragraph 1 above, except as specified below:       Debtor        DLH Holdings Corp.                               DLH Solutions, Inc.                               Danya International LLC                          Social & Scientific Systems, Inc.                             Irving Burton Associates, LLC                 9.    Each Deposit Account maintained by any Debtor is as follows:                               Name and Address of                       Type of  Debtor                      Depository Institution  Account Number    Account                                                                                                                                                                                                                                                                                                                                                                                                                                                   {N0289348 2 }                 Schedule A-24  49857330 

 

                                                                                                                                                                                                                                                                                                                                                                            10.   The maker, payee, principal amount, and maturity date of each Pledged Note is as  follows:    Payee              Maker                   Principal Amount    Maturity Date                                                                                                                                                                                                                                                                                {N0289348 2 }                 Schedule A-25  49857330 

 

                                   SCHEDULE B                                       TO                             SECURITY AGREEMENT                           COMMERCIAL TORT CLAIMS     None.      {N0289348 2 }                        

 

                                                                                                                   EXHIBIT 2.5.1                              FORM OF LOAN REQUEST       TO:         First National Bank of Pennsylvania, as Administrative Agent               4140 East State Street                Hermitage, Pennsylvania 16148               Telephone No.: 724-983-6034              Email: loanservicing@fnb-corp.com              Attention:  Mary Plonka                 FROM:       DLH Holdings Corp., as Administrative Borrower   RE:         Amended and Restated Credit Agreement (as it may be amended, restated,              modified or supplemented from time to time, the “Credit Agreement”) dated as of              _________ __, 2020 by and among DLH Holdings Corp., DLH Solutions, Inc.,              Danya International, LLC, Social & Scientific Systems, Inc. and Irving Burton              Associates, LLC, the Guarantors party thereto, the Lenders party thereto, and First              National Bank of Pennsylvania, as the Administrative Agent for the Lenders (the              “Agent”)   Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to  them by the Credit Agreement.   A.    Pursuant to Section 2.5.1 of the Credit Agreement, the undersigned Administrative        Borrower, on behalf of the Borrowers, irrevocably requests [check one line  under 1(a)        below and fill in blank space next to the line as appropriate]:          1.(a)        A new Revolving Credit Loan OR                         Renewal of the LIBOR Rate Option applicable to an outstanding                  ________________ [specify type of Loan -- Revolving Credit Loan or Term                  Loan], originally made on __________ __, ____ OR                         Conversion of the Base Rate Option applicable to an outstanding                  _____________________ [specify type of Loan -- Revolving Credit Loan or                  Term Loan] originally made on _____________ to a Loan to which the                  LIBOR Rate Option applies, OR                         Conversion of the LIBOR Rate Option applicable to an outstanding                  ________________ [specify type of Loan -- Revolving Credit Loan or Term     {N0289348 2 }                        

 

                  Loan] originally made on __________ __, ____ to a Loan to which the Base                 Rate Option applies.        SUCH NEW, RENEWED OR CONVERTED LOAN SHALL BEAR INTEREST:          [Check one line under 1(b) below and fill in blank spaces in line next to line]:         1.(b)(i)        Under the Base Rate Option.  Such Loan shall have a Borrowing Date of                 __________, ___ (which date shall be (i) the same Business Day as the                 Business Day of receipt by the Agent by 12:00 p.m. Eastern time of this Loan                 Request for making a new Revolving Credit Loan to which the Base Rate                 Option applies, or (ii) the last day of the preceding Interest Period if a Loan                 to which the LIBOR Rate Option applies is being converted to a Loan to                 which the Base Rate Option applies).                            OR               (ii)        Under the LIBOR Rate Option.  Such Loan shall have a Borrowing Date of                 _____________ (which date shall be (i) three (3) Business Days subsequent                 to the Business Day of receipt by the Agent by 12:00 p.m. Eastern time of                 this Loan Request for making a new Revolving Credit Loan to which the                 LIBOR Rate Option applies, renewing a Loan to which the LIBOR Rate                 Option applies, or converting a Loan to which the Base Rate Option applies                 to a Loan to which the LIBOR Rate Option applies, or (ii) the same Business                 Day as the last day of the preceding Interest Period if a Loan to which the                 LIBOR Rate Option applies is being convert to a Loan to which the Base                 Rate Option applies).         2.    Such Loan is in the principal amount of U.S. $_____________ or the principal              amount to be renewed or converted is U.S. $_____________               [for a Borrowing Tranche to which the LIBOR Rate Option applies, to be not less              than $1,000,000 and in increments of $100,000 and for a Borrowing Tranche to              which the Base Rate Option applies, to be not less than $1,000,000 and in              increments of $100,000.               3.    [Complete blank below if the Administrative Borrower is selecting the LIBOR             Rate Option]:              Such Loan shall have an Interest Period of [one, two, three, or six] Months.                                               B.    [As of the date hereof and the date of making of the above-requested Loan (and after        giving effect thereto):  all of the Loan Parties’ representations and warranties in the        Credit Agreement are true and correct in all material respects (except (x) to the extent        that such representations and warranties specifically refer to an earlier date, in which case    {N0289348 2 }                       

 

         they shall be true and correct in all material aspects as of such earlier date and (y) to the        extent that such representations and warranties are qualified as to materiality, in which        case they shall be true and correct in all respects); no Event of Default or Potential        Default has occurred and is continuing; and the making of any Revolving Credit Loan        shall not cause the aggregate Revolving Credit Loans plus the Letters of Credit        Outstanding to exceed the Borrowing Base.]   C.    The undersigned hereby irrevocably requests [check one line under 1.(a) below and fill in        blank space next to the line as appropriate]:          1.(a) ___ Funds to be deposited into a First National Bank of Pennsylvania bank        account per our current standing instructions.  Complete amount of deposit if not full loan        advance amount:  $_________.               ___ Funds to be wired per the following wire instructions:                     $_________________  Amount of Wire Transfer                     Bank Name:  _____________________                    ABA:  __________________________                    Account Number: _________________                    Account Name: ___________________                    Reference: _______________________              ___Funds to be wired per the attached Funds Flow (multiple wire transfers)                                 [SIGNATURE PAGE FOLLOWS]    {N0289348 2 }                       

 

                                                                                       The undersigned certifies in his or her capacity as an Authorized Officer of the  Administrative Borrower to the Agent and the Lenders as to the accuracy of the foregoing.                                                                                                                 DLH HOLDINGS CORP,                                      a New Jersey corporation                  Date:                      , 20__   By:                               (SEAL)                                      Name:                                                                         Title:                                      {N0289348 2 }                        

 

                                     EXHIBIT 2.5.2                                      FORM OF                              SWING LOAN REQUEST          TO:         First National Bank of Pennsylvania, as Administrative Agent               4140 East State Street                Hermitage, Pennsylvania                Telephone No.: 724-983-6034              Email: loanservicing@fnb-corp.com              Attention:  Mary Plonka                 FROM:       DLH Holdings Corp., as Administrative Borrower    RE:         Amended and Restated Credit Agreement (as it may be amended, restated,              modified or supplemented from time to time, the “Credit Agreement”) dated as of              _________ __, 2020 by and among DLH Holdings Corp., DLH Solutions, Inc.,              Danya International, LLC, Social & Scientific Systems, Inc. and Irving Burton              Associates, LLC, the Guarantors party thereto, the Lenders party thereto, and First              National Bank of Pennsylvania, as the Administrative Agent for the Lenders (the              “Agent”)   Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to  them by the Credit Agreement.   A.    Pursuant to Section 2.5.2 of the Credit Agreement, the Administrative Borrower, on        behalf of the Borrowers, hereby makes, irrevocably, the following Swing Loan Request:            1.    Aggregate principal amount of such Swing                Loan (may not be less than $250,000)   U.S. $                              2.    Proposed Borrowing Date                               (which date shall be on or after the date on                which the Administrative Agent receives this                Swing Loan Request, with such Swing Loan                Request to be received no later than               2:00 p.m. Eastern time on the Borrowing ____________, 20__               Date)     {N0289348 2 }                        

 

         3.    The undersigned hereby irrevocably requests [check one line below and fill in              blank spaces next to the line as appropriate]:                            a. ___ Funds to be deposited into a First National Bank of Pennsylvania bank              account per our current standing instructions.  Complete amount of deposit if not              full loan advance amount:  U.S. $_______________.                            b. ___ Funds to be wired per the following wire instructions:                          U.S. $_________________  Amount of Wire Transfer                          Bank Name:  _____________________                          ABA:  __________________________                          Account Number: _________________                          Account Name: ___________________                          Reference: _______________________                            c. ___ Funds to be wired per the attached Funds Flow (multiple wire transfers).           4.    As of the date hereof and the date of making of the above-requested Loan (and              after giving effect thereto): all of the Loan Parties' representations and warranties              in the Credit Agreement are true and correct in all material respects (except (x) to              the extent that such representations and warranties specifically refer to an earlier              date, in which case they shall be true and correct in all material aspects as of              such earlier date and (y) to the extent that such representations and warranties are              qualified as to materiality, in which case they shall be true and correct in all              respects); no Event of Default or Potential Default has occurred and is              continuing; and the aggregate principal amount of Swing Loans and the              Revolving Credit Loans of all the Lenders does not exceed the Revolving Credit              Commitments.                                                         [SIGNATURE PAGE FOLLOWS]    {N0289348 2 }                       

 

         The undersigned certifies in his or her capacity as an Authorized Officer of the  Administrative Borrower to the Agent as to the accuracy of the foregoing.                                             DLH HOLDINGS CORP.,                                             a New Jersey corporation                                                  Date:                      , 20__   By:                               (SEAL)                                      Name:                                                                         Title:                                        {N0289348 2 }                        

 

                                  EXHIBIT 5.9.7(A)                                   [FORM OF]                        U.S. TAX COMPLIANCE CERTIFICATE    (For Foreign Recipients That Are Not Partnerships For U.S. Federal Income Tax Purposes)                                                       Reference is hereby made to the Amended and Restated Credit Agreement dated  as of September __, 2020 (as amended, supplemented or otherwise modified from time to time,  the “Credit Agreement”), among DLH HOLDINGS CORP., a New Jersey corporation, DLH  SOLUTIONS, INC., a Georgia corporation, DANYA INTERNATIONAL, LLC, a Maryland  limited liability company, SOCIAL AND SCIENTIFIC   SYSTEMS, INC., a Delaware  corporation, and IRVING BURTON ASSOCIATES, LLC, a Virginia limited liability company,  each of the GUARANTORS (as therein defined), the LENDERS (as therein defined), and FIRST  NATIONAL BANK OF PENNSYLVANIA, in its capacity as administrative agent for the  Lenders under this Agreement, and each lender from time to time party thereto.                Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as  well as any Amended and Restated Note(s) evidencing such Loan(s)) in respect of which it is  providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the  Code, (iii) it is not a ten percent shareholder of any Borrower within the meaning of Section  871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the  Borrowers as described in Section 881(c)(3)(C) of the Code.               The undersigned has furnished the Administrative Agent and the Borrowers with  a certificate of its non-U.S. Person status on IRS Form W-8BEN.  By executing this certificate,  the undersigned agrees that (1) if the information provided on this certificate changes, the  undersigned shall promptly so inform the Borrowers and the Administrative Agent, and (2) the  undersigned shall have at all times furnished the Borrowers and the Administrative Agent with a  properly completed and currently effective certificate in either the calendar year in which each  payment is to be made to the undersigned, or in either of the two calendar years preceding such  payments.                Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:                                             Name:        Title:    Date: ________ __, 20[  ]    {N0289348 2 }                        

 

                                    EXHIBIT 5.9.7(B)                                    [FORM OF]                         U.S. TAX COMPLIANCE CERTIFICATE     (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)                                                         Reference is hereby made to the Amended and Restated Credit Agreement dated   as of September __, 2020 (as amended, supplemented or otherwise modified from time to time,   the “Credit Agreement”), among DLH HOLDINGS CORP., a New Jersey corporation, DLH   SOLUTIONS, INC., a Georgia corporation, DANYA INTERNATIONAL, LLC, a Maryland   limited liability company, SOCIAL AND SCIENTIFIC SYSTEMS, INC., a Delaware   corporation, and IRVING BURTON ASSOCIATES, LLC, a Virginia limited liability company,   each of the GUARANTORS (as therein defined), the LENDERS (as therein defined), and FIRST   NATIONAL BANK OF PENNSYLVANIA, in its capacity as administrative agent for the   Lenders under this Agreement, and each lender from time to time party thereto.                  Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation   in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of   Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower within   the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign   corporation related to the Borrowers as described in Section 881(c)(3)(C) of the Code].               The undersigned has furnished its participating Lender with a certificate of its  non-U.S. Person status on IRS Form W-8BEN.  By executing this certificate, the undersigned  agrees that (1) if the information provided on this certificate changes, the undersigned shall  promptly so inform such Lender in writing, and (2) the undersigned shall have at all times  furnished such Lender with a properly completed and currently effective certificate in either the  calendar year in which each payment is to be made to the undersigned, or in either of the two  calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.    [NAME OF PARTICIPANT]    By:                                              Name:         Title:     Date: ________ __, 20[  ]                                               {N0289348 2 }                        

 

                                    EXHIBIT 5.9.7(C)                                    [FORM OF]                         U.S. TAX COMPLIANCE CERTIFICATE      (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)                                                        Reference is hereby made to the Amended and Restated Credit Agreement dated   as of September __, 2020 (as amended, supplemented or otherwise modified from time to time,   the “Credit Agreement”), among DLH HOLDINGS CORP., a New Jersey corporation, DLH   SOLUTIONS, INC., a Georgia corporation, DANYA INTERNATIONAL, LLC, a Maryland   limited liability company, SOCIAL AND SCIENTIFIC SYSTEMS, INC., a Delaware   corporation, and IRVING BURTON ASSOCIATES, LLC, a Virginia limited liability company,   each of the GUARANTORS (as therein defined), the LENDERS (as therein defined), and FIRST   NATIONAL BANK OF PENNSYLVANIA, in its capacity as administrative agent for the   Lenders under this Agreement, and each lender from time to time party thereto.                 Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of  which it is providing this certificate, (ii) its direct or indirect partners/members are the sole  beneficial owners of such participation, (iii) with respect such participation, neither the  undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant  to a loan agreement entered into in the ordinary course of its trade or business within the  meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members  is a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the  Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation  related to the Borrowers as described in Section 881(c)(3)(C) of the Code.               The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by one of the following forms from each of its partners/members that is claiming  the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY  accompanied by an IRS Form W-8BEN from each of such partner’s/member’s beneficial owners  that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned  agrees that (1) if the information provided on this certificate changes, the undersigned shall  promptly so inform such Lender and (2) the undersigned shall have at all times furnished such  Lender with a properly completed and currently effective certificate in either the calendar year in  which each payment is to be made to the undersigned, or in either of the two calendar years  preceding such payments.              Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.    [NAME OF PARTICIPANT]    By:                                              Name:         Title:      {N0289348 2 }                        

 

   Date: ________ __, 20[  ]   {N0289348 2 }                       

 

                                    EXHIBIT 5.9.7(D)                                    [FORM OF]                         U.S. TAX COMPLIANCE CERTIFICATE       (For Foreign Recipients That Are Partnerships For U.S. Federal Income Tax Purposes)                                                        Reference is hereby made to the Amended and Restated Credit Agreement dated   as of September __, 2020 (as amended, supplemented or otherwise modified from time to time,   the “Credit Agreement”), among DLH HOLDINGS CORP., a New Jersey corporation, DLH   SOLUTIONS, INC., a Georgia corporation, DANYA INTERNATIONAL, LLC, a Maryland   limited liability company, SOCIAL AND SCIENTIFIC SYSTEMS, INC., a Delaware   corporation, and IRVING BURTON ASSOCIATES, LLC, a Virginia limited liability company,   each of the GUARANTORS (as therein defined), the LENDERS (as therein defined), and FIRST   NATIONAL BANK OF PENNSYLVANIA, in its capacity as administrative agent for the   Lenders under this Agreement, and each lender from time to time party thereto.                 Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any   Amended and Restated Note(s) evidencing such Loan(s)) in respect of which it is providing this   certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such   Loan(s) (as well as any Amended and Restated Note(s) evidencing such Loan(s)), (iii) with   respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document,   neither the undersigned nor any of its direct or indirect partners/members is a bank extending   credit pursuant to a loan agreement entered into in the ordinary course of its trade or business   within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect   partners/members is a ten percent shareholder of any Borrower within the meaning of Section   871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled   foreign corporation related to the Borrowers as described in Section 881(c)(3)(C) of the Code.               The undersigned has furnished the Administrative Agent and the Borrowers with   IRS Form W-8IMY accompanied by one of the following forms from each of its   partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or  (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of such  partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By  executing this certificate, the undersigned agrees that (1) if the information provided on this  certificate changes, the undersigned shall promptly so inform the Borrowers and the  Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrowers  and the Administrative Agent with a properly completed and currently effective certificate in  either the calendar year in which each payment is to be made to the undersigned, or in either of  the two calendar years preceding such payments.              Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.                                                            {N0289348 2 }                        

 

                 [NAME OF LENDER]   By:                                             Name:        Title:    Date: ________ __, 20[  ]          {N0289348 2 }                       

 

                                     EXHIBIT 8.3.4                                                                               FORM OF                                                                     COMPLIANCE CERTIFICATE                     The undersigned, being the Chief Executive Officer or Chief Financial Officer of   each of DLH Holdings Corp., a New Jersey corporation (“Holdings”), DLH Solutions, Inc., a   Georgia corporation (“Solutions”), Danya International, LLC, a Maryland limited liability   company (“Danya”), Social & Scientific Systems, Inc., a Delaware corporation (“Systems”) and  Irving Burton Associates, LLC, a Virginia limited liability company (“IBA” and collectively  with Holdings, Solutions, Danya and Systems, the “Borrowers”), and, in such capacity, being  familiar with the matters set forth herein and duly authorized and empowered to issue this  Certificate for and on behalf of the applicable Borrower, does hereby certify to First National  Bank of Pennsylvania (“Agent”), in connection with and pursuant to that certain Amended and  Restated Credit Agreement, dated as of _________ ___, 2020, among the Borrowers, the  Guarantors, the Agent, and the Lenders now or hereafter a party thereto (as amended, the “Credit  Agreement”); capitalized terms used herein, without definition, having the meaning given to  such terms in the Credit Agreement) that, as of the date of this Certificate, there exists no Event  of Default.           Without limiting the generality of the foregoing, the applicable Borrower is in  compliance with the financial covenants specified in Sections 8.2.15 and 8.2.16 of the Credit  Agreement, as demonstrated by the attached computations.                                 [Signature Page Follows]     {N0289348 2 }                        

 

          WITNESS my hand as of ___________________, 202_.                                        BORROWERS:                                       DLH HOLDINGS CORP.                                        By:                                                                             Name:                                      Title:                                        DLH SOLUTIONS, INC.                                       By:                                                                             Name:                                      Title:                                        DANYA INTERNATIONAL, LLC,                                        By:                                                                             Name:                                      Title:                                       SOCIAL& SCIENTIFIC SYSTEMS, INC.                                          By:                                                                             Name:                                      Title:                                                                                                                  IRVING BURTON ASSOCIATES, LLC                                         By:                                                                             Name:                                      Title:    {N0289348 2 }                     -4-  W:\DATA\CLDocs\10179\322058\N0289348.DOC  46757839-v6

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